After 20 years it decided in 1999 to remake itself into an independent power producer specializing in the niche market for small bite-sized power projects of 1 to 50 mw for the isolated islands where it felt it has an overall competitive advantage.
Energreen’s core team is composed of professionals who have been working with rural electric cooperatives for decades with a unique understanding of the needs and dynamics of these non-profit distribution utilities.
While most of the independent power producers were concentrating on larger power projects in the main grid of Luzon and the Visayas, Energreen’s team saw the potential of the largely neglected needs of the electric cooperatives in the small islands. It pioneered the development of bankable power supply agreements that are tailor made for the unique requirements of the electric coops and its isolated island grid.
Energreen’s early work was rewarded by electricity supply agreements for the larger islands of Palawan, Oriental Mindoro, and Catanduanes. The projects were originally developed under development company affiliate Power One Corp. and taken over by Energreen for implementation under am equity streamlining agreement.
“AN IPP WITH A CONSCIENCE”
In 2002 it called off the signing of several power supply agreements in the island of Panay after it became clear the rate structure and existing regulatory rules will result to high rates to the consumers. The projects were picked up by other IPP’s with unfortunately disastrous results to the consumers.
Energreen’s off-grid projects will save the government P1 billion a year in missionary subsidies and result to lower rates to consumers in the long term.
Greenergy Power Generation (joint development with Engcon Energy of Singapore)
6mw Biomass (rice husk)
Off-Taker: Oriental Mindoro Electric Cooperative
Location: Naujan, Oriental Mindoro
Contract: 20 year electricity supply agreement
Service: Base-Load power at 69kv
Projected Completion: 1st Quarter 2012
Status: Regulatory Review
This project is a key component of Ormeco’s long term power cost reduction strategy through the use of cleaner and cheaper renewable energy option.
2. 8mw biomass in the Visayas
3. 10mw HFO diesel project in Oriental Mindoro
4. 48mw HFO diesel project for peaking and reserve power in the Visayas
5. Other Biomass and HFO diesel plant projects in various islands ranging in capacities from 1 to 20mw that are currently undergoing resource assessments and pre-feasibility studies.