GUIMELCO eyes JVA for solar power plant

By Rjay Zuriaga Castor

The Guimaras Electric Cooperative (GUIMELCO) is in discussions with an international clean energy investment and advisory firm to establish a solar power plant.

GUIMELCO General Manager Shirley S. Laurente told Daily Guardian that the cooperative has entered into a teaming agreement with Allotrope Partners as part of its long-term strategy to reduce exposure to the volatile power market.

“We are considering a Joint Venture Agreement and already have a prospective investor, Allotrope Partners. They have also inspected GUIMELCO’s property,” she said.

Allotrope Partners, based in Oakland, California, operates in six countries, including Singapore. The firm specializes in emerging markets, providing expertise in renewable energy and low-carbon technologies.

Laurente highlighted that owning a solar power plant would help GUIMELCO meet its power and renewable energy requirements.

She added that the cooperative plans to hold a Competitive Selection Process to procure additional baseload power supply next year.

“This is to reduce our load exposure to the market since prices in the Wholesale Electricity Spot Market are volatile,” she said.

ISOLATED CASE

A formal complaint has been filed with the Energy Regulatory Commission (ERC) against GUIMELCO, challenging the cooperative’s rising electricity prices and power supply agreements.

The petitioners are pushing for the termination of GUIMELCO’s agreements with its current power suppliers, Panay Energy Development Corporation (PEDC) and GN Power Kauswagan Ltd. Co. (GNPK).

The petition also calls for bilateral generation contracts to be subjected to open and competitive bidding to protect consumers.

Additionally, the petition stresses that GUIMELCO should provide direct benefits to the province of Guimaras, which hosts the Guimaras Wind Farm owned by AC Energy.

Laurente maintained that GUIMELCO’s electricity rates have remained stable, with no changes in distribution, supply, and metering charges.

“Our rate is not significantly high this year. The August rate was an isolated case due to uncontrollable factors,” she said.

Laurente noted that they cannot comment further since they have not yet received a copy of the ERC complaint.

The August rate increase was previously explained as stemming from high line rental charges imposed by the Independent Electricity Market Operator of the Philippines (IEMOP). These charges were caused by grid congestion due to the N-1 Contingency Plan by the National Grid Corporation of the Philippines (NGCP) and a staggered payment scheme for IEMOP bills from June to September.

Laurente emphasized that these factors were beyond GUIMELCO’s control and were entirely attributable to IEMOP.

“We are puzzled by calls to cancel our contracts with PEDC and GNPK, as these contracts have no bearing on the August 2024 power bill increase,” she said.

In August, GUIMELCO’s power rates peaked at PHP 17.6750 per kilowatt-hour, the highest recorded this year.

“Our contracts with PEDC and GNPK ensure stable prices and shield both GUIMELCO and our Member-Consumer-Owners from IEMOP price volatility, which can sometimes be significantly higher,” Laurente added.

Regarding the suggestion of utilizing the Guimaras Wind Farm, Laurente explained that the power it generates is fed directly into the NGCP grid, contributing to the overall energy supply in the region.

“Their business model involves providing power to the grid, and they operate under a feed-in tariff system,” she explained.