DMCI energy arm to invest P600M in Palawan power plant

The off-grid energy arm of conglomerate DMCI Holdings is investing around P600 million to build two units of a bunker-fired power plant, each with a capacity of 4.95 megawatts, to stabilize electricity supply in Aborlan, Palawan.

The new plant, which will serve the franchise area of Palawan Electric Cooperative Inc. is expected to start operations by year-end.

DMCI Power Corp. (DPC) president Nestor Dadivas said this P600 million investment in Aborlan would “address the continuing increase in electricity demand in the province due to the rise of local tourism and commercial establishments.”

In a briefing, Dadivas said demand for electricity in Palawan—which is not connected to the grid—had been growing faster than expected at 15 percent.  DMCI Power had expected growth at only around 12 percent.

Aborlan is a first-class municipality 69 kilometers south of Puerto Princesa City. Its population is estimated at over 32,000.

As of June 2016, only 5,400 of the 7,263 households in the municipality have electricity connections.

DMCI Power was established in 2006 to provide sufficient and reliable electricity to areas that are not connected to the main grid.

Aside from Palawan, the company also provides power to Masbate, Calapan, Oriental Mindoro and Sultan Kudarat through supply contracts with electric cooperatives.

To date, DPC has a total contracted capacity of about 56 MW.

The first unit of the Aborlan power plant will be on stream before the end of this month while the second unit will be operational by end-September, Dadivas said.

The additional capacity will not translate to additional energy sales for DMCI Power as the new plant will only replace the dilapidated diesel-fired engines that would have to be retired, Dadivas said. Doris Dumlao-Abadilla