AP Renewables Inc. (APRI), a wholly owned subsidiary of Aboitiz Power Corp. (AboitizPower, PSE: AP), and Philippine Geothermal Production Company Inc. (PGPC, formerly Philippine Geothermal Inc.) commit to continue the development of clean geothermal energy with the signing of a Geothermal Resources Supply and Services Agreement (GRSSA) today, August 24, for the supply of steam and drilling of new production wells in the Tiwi and MakBan Geothermal Complex, ensuring the long-term operations of the two renewable power plant facilities.
APRI operates the 458MW MakBan Geothermal Power Plants that straddle the provinces of Batangas and Laguna, as well as the 289MW Tiwi Geothermal Power Plants in Albay.
PGPC, the pioneer in the commercial development of geothermal energy in Southeast Asia, is the steamfields operator and geothermal resource provider to the power plants.
Under the GRSSA, PGPC will drill 12 new production wells over a six-year period to increase steam availability for the power plant facilities by about 20%. The agreement also ensures a more competitive fuel pricing in the long term.
“APRI is committed to deliver reliable and renewable power to our customers. This agreement secures the continued viability of the power plant facilities allowing us to deliver that commitment. For three years now, the Philippines has been ranked number 1 in energy sustainability in the World Energy Council’s (WEC) Energy Trilemma report because we continue to maximize the potential of RE in the country, we hope to continue that momentum,” APRI President & COO Alexander B. Coo said.
“Renewable baseload energy is critical for the Philippines to power its economic growth. The sustainable operation of the geothermal steamfield is our way of supporting the country’s long-term energy needs through the supply of reliable, clean, and indigenous energy resources,” said PGPC President Napoleon L. Saporsantos Jr.
First commissioned in 1979, the Tiwi-MakBan Geothermal Complex is one of the biggest geothermal facilities in the country and the region. PGPC has since operated the steamfield facilities. AboitizPower took over the operations and management of the power plant facilities from the National Power Corporation in 2009.
AboitizPower is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.
The company is one of the largest power producers in the Philippines with a right-mix portfolio of assets located across the country.
It is a major producer of Cleanergy, its brand for clean and renewable energy, with several hydroelectric, geothermal, and solar power generation facilities. It also has various fossil-fired power plants in its generation portfolio to support the baseload and peak energy demands of the country.
The company also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.