ERC issues COC to a bio-fuel company
The Energy Regulatory Commission (ERC) granted on 16 March 2009 a Certificate of Compliance (COC) to the San Carlos Bioenergy Incorporated (SCBI) for its bagasse-fired cogeneration power plant. A COC is required before any generation company can commence commercial operations. Bagasse is the fibrous residue remaining after sugarcane or sorghum stalks are crushed to extract their juice and is currently used as a renewable resource for electricity power generation.
SCBI’s bio-fuel generator units have an 8.30 MW installed capacity while its two (2) black-start diesel engine generator sets have an installed capacity of 1.60 MW, for a total of 9.9 MW installed capacity. These facilities are located at the San Carlos Ecozone, Barangay Palampas and Punao, San Carlos City, Negros Occidental.
A COC is issued to a generation company (GenCo) or a self-generating facility (SGF) to certify its compliance to technical, financial and environmental standards that are specified in the ERC’s Guidelines for the Issuance of Certificate of Compliance for Generation Companies/Facilities, as Amended. Pre-requisites to the grant of a COC include certificates or documents from other concerned government agencies such Department of Environment and Natural Resources (DENR), Department of Energy (DOE), and Securities and Exchange Commission (SEC), among others.
SCBI is a new independent power producer (IPP) that registered with the Securities and Exchange Commission (SEC) on 29 March 2006 to engage primarily in the production, marketing and sales of bio-ethanol fuel. It has an application pending with the ERC for the approval of its Power Supply Agreement (PSA) with the VMC Rural Electric Services Cooperative, Inc. (VRESCO), a power distributor in the Visayas.
Bio-ethanol fuel is classified as one of the renewable energy resources. Consistent with the objective of the Republic Act 9513, an Act Promoting the Development, Utilization and Commercialization of Renewable Energy Resources, power generation using renewable energy resources, like bio-ethanol, will eventually reduce the country’s dependence on fossil fuels and will therefore minimize the country’s exposure to price fluctuations in the international markets, the effects of which cascade to almost all sectors of the economy.
“Power generators are very vital components of the electricity power industry. We are happy that the list of power generators that use clean and green energy is growing slowly but surely. The ERC assures the electricity consumers that it will closely monitor the compliance of power generators to the set standards to ensure quality, affordable and reliable service,” ERC Chairperson Zenaida G. Cruz-Ducut said.
March 19, 2009