Firm to tap 3 Palawan rivers for power supply

PUERTO PRINCESA CITY, Philippines—Palawan’s electric distribution franchise has taken its first step to ward embracing renewable energy, finally allowing an upstart company after two years of negotiations to supply the island’s main grid using electricity generated from the province’s river system.

The Langogan Power Corp. (LPC), a Department of Energy-accredited renewable energy company, signed a 20-megawatt power supply contract with the Palawan Electric Cooperative (Paleco) on Friday.

LPC’s plan entails tapping into three rivers on the mainland using run-of-river mini hydro technology.

The company said it had so far invested over $9 million (roughly P420 million) to develop the project and is set to pour in another P56 million to set up and operate its power facilities.

This development came in the wake of difficulties faced by DMCI Power Inc. which had earlier bagged a 25-MW supply contract from Paleco to construct a coal-fired power plant that would be fueled by DMCI’s coal mine on Semirara Island in Antique.

DMCI faced stiff opposition from local communities and conservation groups and faced rejection and legal challenges from nongovernment organizations at several of its prospective plant sites despite support from local officials.

DMCI was recently awarded a clearance by the Palawan Council for Sustainable Development but is set to face opposition from environmental groups in the Department of Environment and Natural Resources in the issuance of an environmental compliance certificate.

LPC executive Mike Wooton told the Inquirer they planned to start construction of the mini hydro power plant in January as soon as they finish access roads to the site.

The company is planning to tap into the Langogan River in Puerto Princesa City, the Batang Batang River in Narra town and the Talakaigan River in Aborlan town.

“We hope to start work on the access roads in two or three weeks and have full mobilization to the site by January,” Wooton said.

He, however, said that their contract would still need the approval of the Energy Regulatory Commission.

The LPC tariff was pegged at P6.59 per kilowatt hour.

“This is a landmark even for Palawan. It will provide the lowest cost source of energy on the Palawan grid and it represents the first major renewable energy technology in Paleco’s generation portfolio,” Bart Duff of the Palawan Chamber of Commerce said.