Press Release: ERC issues a COC to HSI’s Hydroelectric Power Plant B in Davao
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ERC Chairperson Zenaida Cruz-Ducut (center) awards to Engr. Gregorio Jabonillo, Vice President of Hedcor Sibulan, Inc. – Mindanao the Certificate of Compliance (COC). Joining the event are ERC Commissioners Alejandro Z. Barin (leftmost), Maria Teresa Ramirez-Castañeda (second from left) and Jose C. Reyes (rightmost). |
The Energy Regulatory Commission (ERC) issued on 24 May 2010 a Certificate of Compliance (COC) to Hedcor Sibulan, Inc. (HSI) for the operation of its Hydroelectric Power Plant B that is composed of 2 power generating units which are located at Brgy. Sibulan, Sta. Cruz, Davao del Sur. An evaluation of HSI’s application revealed it to be technically, financially and environmentally compliant to the required standards. A COC, which is valid for five years, is needed before a power plant can operate commercially.
The settlement displacement of families and insurgency were the concerns of HSI during the onset of construction. However, an MOA (Memorandum of Agreement) with the community and parties concerned regarding the provision of livelihood benefits and employment resolved these concerns.
A thorough inspection of the plant facilities of Hydroelectric Plant B verified that it is compliant with the technical design and operational criteria of the Philippine Grid and Distribution Code (PGDC). HSI’s Hydroelectric Plant B has an aggregate installed capacity of 26.257 MW and is a run-of-river type mini hydro power plant embedded within the transmission system system of Davao Light and Power Company (DALIGHT). It is interesting to note that Plant B is located within the franchise area of DASURECO (Davao del Sur electric Cooperative, Inc.) but power is transmitted to the DALIGHT franchise customers through an approximately 34 kilometer length of a 69 KV transmission line.
Plant B will tandem with HSI’s Hydroelectric Power Plant A which has aggregate installed capacity of 16.32 MW to provide bulk power to the cities of Davao and Panabo and the municipalities of Carmen, Dujali and Sto. Tomas. The power plant is owned by the Philippine Hydropower Corporation (PHC) which owns 99.99% of HSI.
Further scrutiny of HSI’s application for a COC indicates that HSI is well within the market share limitations that were set by the Electric Power Industry Reform Act of 2001 (EPIRA) as safeguard against market abuse. The market shares of HSI in Luzon, Visayas and Mindanao grids are 18.02%, 4.87% and 2.54%, respectively. The law limits ownership, operation or control of the installed generating capacity of a grid to 30%. In terms of national market share, HSI only holds 14.58%, which is well within the limit of 25% set for the national installed generating capacity.
“HSI Plant B is a welcome addition to the supply of electricity in Mindanao. The ERC is glad that there are industry players that are dedicated in developing the country’s renewable energy resources. The ERC will pursue and maintain an investor-friendly and stable regulatory environment to encourage more renewable energy investments, while adhering to its mandate to protect the long-term interests of the electricity consumers,” ERC chairperson Zenaida G. Cruz-Ducut said.
June 21, 2010