Consunji-led DMCI Power Corp. (DPC) is setting aside P3.5 billion to construct a 15megawatt (MW) thermal power plant and a 12-MW hybrid diesel-solar power plant.
Of the amount, P2.7 billion will be spent for the thermal plant in Narra, Palawan. The remaining P800 million will be utilized for the hybrid power facility in Cataingan, Masbate.
Target commercial operation of the 12MW hybrid power project—4MW will come from solar energy while the 8MW will be generated by the diesel plant—is the first quarter of 2022 while the 15MW is set to go online by the 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 Chief Operating Officer 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 to 163.72MW from 136.42MW.
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.
The off-grid electricity supplier said the thermal power project is not covered by the moratorium on new coal projects since endorsement from the Department of Energy was secured long before the directive took effect last year.
DMCI Holdings, DPC’s parent company, earlier reported that its net income jumped almost five times to P9.5 billion in the first semester, from the P2 billion it reported last year.
The surge in net income was due to the rebound of its subsidiaries, Semirara Mining and Power Corp., DMCI Homes and DMCI Mining, the company said.
Contributions from DPC grew 5 percent to P270 million from P256 million because of higher electricity sales to Masbate and Palawan.
