New comer geothermal power developer Envent Holdings Philippines Inc. has inked supply deals with five electric cooperatives in Leyte to underpin the development of its initially planned 50-megawatt Biliran power facility.

In a statement to the media, the committed capacity to the electric coops will already account for 35 megawatts, almost close to covering the proposed plant’s installed capacity.

The power purchase agreements (PPAs), stretching over 10 years, have been estimated to run up to $330 million-$338 million. The price per megawatt hour (MWH) has been placed at US$100 and US$113.

“The execution of those PPAs is a major milestone for the project as the revenue portion of the plant is now mostly taken care of,” said Envent chief executive Gudmundur F. Sigurjonsson.

He added the negotiations with the off-takers practically went well, hence, “we are now working on the financial structure of the project, which we expect will take between 5 to 10 months to complete.”
Based on project blueprint, the Biliran geothermal project is scheduled on stream by 2012 and will help augment the capacity needs of the Visayas grid.

The power supply pacts were inked with Leyte Electric Coops II, IV, V Don Orestes Romualdez Electric Cooperative and Southern Leyte Electric Cooperative.

The company noted the signing of the latest round of agreements served as a follow-through to the other PPA sealed in June for another 5.0MW capacity commitment.

“Together, the agreements with the six off-takers commit 40 MW of the Biliran plant's capacity. The coops that signed the agreements handle more than 300,000 customer accounts, representing a population of about 1.9 million on Bilian and Leyte islands, which are connected by a bridge,” the company said.

It added that the remaining 10 MW capacity will also be offered eventually to the six off-takers, while any balance is aligned for trading at the Wholesale Electricity Spot Market (WESM), soon to be set on stream in the Visayas.

The Biliran plant, Envent noted will not be constrained with any connection dilemma to the grid, as it lies just along few kilometers north of Leyte island. The project’s implementation is in collaboration with Biliran Geothermal Inc.