Off-grid electricity supplier DMCI Power Corp. is spending around P3.5 billion to expand generation capacity in the off-grid market.
DPC said Monday it would spend around P2.7 billion to construct a thermal power plant in Narra, Palawan province, and P800 million on a hybrid diesel-solar power station in Cataingan, Masbate province.
“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 Gatdula Jr. in a statement.
The Palawan thermal power plant will have a capacity of 15 megawatts while the Masbate plant will have a combined output of around 12 MW, with 4 MW coming from solar energy.
DPC plans to start commercial operation of the 12-MW Masbate plant in the first quarter next year and the 15-MW Palawan power station by the second quarter of 2023.
The company said the operation of the new thermal plant is expected to lower the cost of electricity in Palawan and reduce the subsidy paid by all consumers.
Once operational, the Palawan and Masbate power plants will increase the company’s installed capacity in the so-called missionary areas from 136.42MW to 163.72MW.
DPC, the off-grid power unit of DMCI Holdings Inc., 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 electric cooperatives in Masbate, Palawan and Oriental Mindoro provinces.