Therma Marine, Daneco sign 10 MW power supply deal

Therma Marine Inc., a subsidiary of AboitizPower Corp., will supply Davao del Norte Electric Cooperative Inc. (Daneco) up to 10 megawatts (MW) of electricity. Daneco, which serves power consumers in Davao del Norte and Compostela Valley, will its supply via Therma Marine's 100-MW diesel-fired Power Barge (PB) 118 in Maco, Compostela Valley. As power produced by diesel fuel is more expensive than those of Mindanao's hydro-electric power plants, AboitizPower structured the contract with fixed and variable portions, according to Luis Miguel Aboitiz, AboitizPower senior vice president. “This way, the more expensive energy is only drawn as it is needed, thereby minimizing the impact to Daneco’s consumers," he said. Aboitiz said the agreement is good for a year from the date the Energy Regulatory Commission approved the proposed rate. “Our contract with Therma Marine aims to normalize the power supply needed by Daneco. In the same way, it will continue to propel the development momentum of Davao del Norte and Compostela Valley," Aboitiz said. Daneco is the first cooperative in Mindanao to do business and work with Therma Marine in “finding a solution to our power supply problems," according to Daneco president Dean Briz. The Energy Department has been urging electric cooperatives in Mindanao to go for bilateral agreements with Therma Marine in addressing possible brownouts in the region. Therma Marine also owns and operates 100-MW PB 117 in Nasipit, Agusan del Norte. PB 117 and PB 118 can supply the power needs of more than 200,000 households in Mindanao's power grid. — JE/VS, GMANews.TV