MORE Power inks pact with geothermal giant

By Francis Allan L. Angelo

To lessen the impact of the increasing cost of coal-based power supplies, MORE Electric and Power Corporation (MORE Power) signed a 5-year contract with geothermal power supplier First Gen-Energy Development Corp. (EDC).

MORE Power President Roel Castro, First Gen Vice President for Power Marketing and Trading Carlos Vega, and VP for Business Development of EDC Marvin Bailon signed the supply contract on June 27, 2022, in Pasig City.

In a press statement, Iloilo City’s sole distributor will purchase 20 megawatts (MW) of geothermal power from EDC starting July 26, 2022, or once the Energy Regulatory Commission (ERC) has approved the contract, which will serve as a mid-merit load.

MORE Power sought other power suppliers because its 1-year contract with Power Sector Assets and Liabilities Management Corp (PSALM) will end on July 25.

Last April 26, 2022, MORE Power conducted a Competitive Selection Process (CSP) to buy cheaper renewable energy and EDC won out of the three participating bidders.

According to Castro, he is very happy with the partnership because it aligns with the vision of the company.

“MORE Power is very happy with this partnership because it is aligned with our vision, wherein we’d like to have green energy as part of our portfolio, as well as making it affordable to our consumers,” Castro said in the statement.

Green energy is now considered one of the most reliable and affordable energy compared to coal-based power because of the high price of coal in the world market which increased generation rates that are passed through to consumers.

MORE Power will soon purchase its 45MW baseload from two coal-based power generators that offered the cheapest rates in the CSP conducted in August 2021.

The price of coal in the world market at that time was only US$90 per metric ton (MT), but it now increased to an average of US$400/MT due to the war between Russia and Ukraine.

“With the volatility of the world prices of fuel commodity, it goes like the renewable energy will be the savior for our consumers. One thing good about it is, that it’s not volatile. It is not indexed. So, whatever happens to the world market, the price gets insulated. The consumers also benefit from that,” Castro said.

The Chief Executive Officer of MORE Power is hoping that they will be able to buy additional supply from EDC “to have a sustainable cost efficient yet quality and environment-friendly power source for its consumers.”

Castro further stressed that they are doing everything and keep on thinking more strategies on how to give their customers affordable rates amidst the crisis in the world market and ensure the delivery of reliable power and efficient service.

On the part of EDC, Vega is thankful because after a decade, the Lopez-owned power generation company will be able to supply the electricity in Iloilo City.

“After a decade, we are so happy to be here welcoming this partnership with you towards a cleaner renewable energy for the consumers of Iloilo,” Vega said.