Archipelago Renewables Corp., a group formed by local and foreign companies, is investing P1 billion to put up micro-grids in Palawan province.
ARC, the special purpose vehicle of WEnergy Global Pte Ltd., Maharlika Clean Power Holdings Corp. and CleanGrid Partners Pte Ltd. or the Maharlika Consortium, plans to energize 7,100 households and 300 small local businesses in seven municipalities across the service area of Palawan Electric Cooperative.
ARC emerged as the winner of the recently-concluded qualified third party tender of PALECO to support its mandate for rural electrification.
The consortium is investing $18 million to build a distribution network of 175 kilometers of primary and secondary power lines energized by 3,800 kilowatt sof solar PV, 2,000 kW of diesel generators and batteries with a total capacity of 4,200 kilowatt-hours.
It met the stringent eligibility and renewable energy smart microgrid capability requirements set by PALECO and the Department of Energy in a competitive selection process held last year.
“The consortium partners were selected by PALECO through our bids and awards committee and approved by our board of directors because of their high-quality proposal, compliance, responsible ownership of off-grid power infrastructure and excellence in planning, design, engineering and technology selection, which are commercially viable and with the highest levels of social impact,” said PALECO chairman Jeffrey Tan-Endriga.
“They have also met the highest standards of clean power supply, transmission, distribution and smart billing and collection services provided to households and businesses to support our mandate of total rural electrification in Palawan,” said Tan-Endriga.
Maharlika president Quintin Pastrana said the recent tender is unique for the Philippines as it is the first time that smart and clean microgrids were packaged for a competitive selection process.
“It clearly demonstrates the urgency with which DOE, NEA and PALECO are enabling private sector engagement in rural off-grid and clean electrification. The Philippines still has over 10 million people with unmet access to electricity. The best technology to electrify the community and boost their productivity for the best tariffs and the lowest reliance on subsidies and dependency on fossil fuels was selected. With this milestone, we can provide clean, reliable, and affordable energy to empower individuals, families, and enterprises in remote communities across Palawan,” said Pastrana.
Fabian Weber, director of system design and technologies at WEnergy Global, said the microgrid system is a true example of decentralized electrification powered by more than 50 percent solar PV energy over its lifetime.
“Using smart technologies and monitored in real-time through satellite communications, these systems will produce stable quality of electricity in terms of voltage, current, and frequency at an affordable cost,” said Weber.
Ochi Takaki, board director of CleanGrid Partners, said decentralized and smart microgrids empower communities with locally available renewable energy.
“Every family will be able to use electrical appliances and machines, including e-vehicles, and increase their income levels. Children will be able to study via online education. There will be continuity in healthcare services, including vaccinations during pandemics. Basic services such as street lighting to increase safety and security can now be provided on a 24/7 basis. Palawan communities can now demonstrate the greenest lifestyles,” he said.
Atem Ramsundersingh, WEnergy Global’s chief executive, said the project would save the government P7 million in subsidies from the Missionary Electrification Fund annually.
“Compared with traditional diesel-powered systems, this infrastructure will save more than 1.1 million liters of diesel fuel being burned per year, enhancing the energy security of Palawan and Philippines in general in these times of huge market volatilities. The remarkable leaders and proud citizens of Palawan elevate the province as a leader in clean energy to affirm its recognition as a UNESCO Biosphere Reserve,” said Ramsundersingh.
