DMCI Power Investing PhP3.5B in Masbate, Palawan
Off-grid electricity supplier DMCI Power Corporation (PSE: DMC) is spending around PhP3.5 billion to expand its generation capacity in the off-grid market. Around PhP2.7 billion will be used to construct a thermal power plant in Narra, Palawan while PhP800 million will be spent on a hybrid diesel-solar power plant in Cataingan, Masbate. The Palawan plant will have a capacity of 15MW while the Masbate plant will have a combined capacity of around 12MW, 4MW of which will come from solar energy.
Target commercial operation of the 12MW plant is first quarter of 2022 while the 15MW is set to go online by second quarter of 2023. “These investments are in response to the government’s mandate to accelerate the exploration, development and utilization of renewable energy and indigenous fuel resources, thus decreasing our dependence on imported fuel,” said DPC COO Antonino E. Gatdula, Jr. The operation of the new thermal plant is also expected to lower the cost of electricity in Palawan, which will reduce the subsidy paid by all consumers.
Once operational, the Palawan and Masbate power plants will increase the company’s installed capacity in the missionary areas from 136.42MW to 163.72MW. DPC was established in 2006 to provide sufficient and reliable electricity to areas that are not connected to the main transmission grid. Its off-takers include the electric cooperatives in Masbate, Palawan and Oriental Mindoro.
