Bantayan Electric Cooperative awarded a 15-megawatt power supply contract to Vivant Integrated Diesel Corp., a wholly-owned subsidiary of Vivant Energy Corp.
Listed and holding company Vivant Corp. disclosed to the Philippine Stock Exchange it received the notice of the award from wholly-owned subsidiary, Vivant Energy.
“BANELCO concluded a successful competitive selection process by awarding a 15-year contract to supply 15MW of the island’s energy requirements to the joint-venture of VIDC, a wholly-owned subsidiary of Vivant Energy, and Gigawatt Power Inc.,” Vivant said.
It said the project would add to the capacity of Vivant Energy as it continued to focus growth in the off-grid small power utilities group sector.
VIDC and BANELCO are set to sign a 15-year 15-MW power supply agreement before the years ends. The PSA will be subject to the approval of the Energy Regulatory Commission.
Bantayan Island’s popularity has grown given its pristine white sand beaches, drawing an influx of tourists in the far-flung island located in the province of Cebu.
The tourism boom fueled the increase in establishments and spurred economic development in the island that led to a rise in power demand.
BANELCO’s peak demand in mainland Bantayan in 2018 was recorded at 6 megawatts, up from the 4.892 MW currently supplied by Bantayan Island Power Corp. The supply deal is set to expire in 2021.
BANELCO anticipates further increase in demand by 2027 to 13 MW, prompting the cooperative to launch competitive selection process for the procurement of 15 MW of power supply in July of this year.
VIDC was declared the winning bidder after a stringent CSP.