(PHStocks) – Green Core Geothermal Inc. (GCGI), the power arm of geothermal leader Energy Development Corp. (PSE: EDC), will start delivering clean, reliable and affordable power to the Central Negros Electric Cooperative (CENEC0) this December. Based on the power sales agreement signed by the two parties, GCGI will supply 10 MW to CENECO from December 26, 2011 to June 25, 2014, and 20 MW beginning June 26, 2014 up to December 25, 2021.
“We’ve been hoping to forge this agreement with Green Core. This is indeed good news for our franchise areas because we will be delivering not only clean energy but a low-cost one since geothermal is VAT zero-rated,” CENECO President Atty. Arnel Lapore said.
EDC President and COO Richard Tantoco is likewise pleased to partner with CENECO in supporting the growth needs of the province and power requirements of its franchise areas. “CENECO’s residential and industrial customers will benefit from this partnership. On top of being VAT zero-rated, the electricity price of geothermal being indigenous and renewable is not escalated using adjustment formula that considers movements in global fuel prices and foreign exchange. Our rate provides for a once a year adjustment only using the Philippine Consumer Price Index.”
Green Core has always prioritized electric cooperatives in its host areas so they can enjoy the benefits of clean, reliable and affordable power. Geothermal’s many advantages have been the reason for electric cooperatives to sign long-term power supply contracts with Green Core.
In 2010, Green Core signed power supply contracts with 12 electric cooperatives and two industrial customers which supply the power requirements of 157 cities and municipalities in Visayas, specifically in the provinces of Leyte, Cebu, Negros, and Panay.
Green Core owns and operates the 112.5-MW Tongonan geothermal plant in Leyte and 192.5-MW Palinpinon geothermal plants in Negros Oriental.