19/10/2024
๐๐ก๐ฒ ๐๐ซ๐ ๐๐จ๐ฐ๐๐ซ ๐๐๐ญ๐๐ฌ ๐๐ข๐ ๐ก๐๐ซ ๐ข๐ง ๐๐ซ๐ฆ๐จ๐ ๐๐ข๐ญ๐ฒ ๐๐๐ฌ๐ฉ๐ข๐ญ๐ ๐๐จ๐ฌ๐ญ๐ข๐ง๐ ๐ญ๐ก๐ ๐๐จ๐ซ๐ฅ๐โ๐ฌ ๐๐๐ซ๐ ๐๐ฌ๐ญ ๐๐๐จ๐ญ๐ก๐๐ซ๐ฆ๐๐ฅ ๐๐ญ๐๐๐ฆ ๐
๐ข๐๐ฅ๐?
Energy Development Corporation (EDC), a renewable energy leader in the Philippines, has been disqualified from participating in the competitive selection process (CSP), preventing local communities from enjoying lower power rates.
EDC officials have expressed their disappointment over the situation, which they believe could have provided significant cost savings for consumers.
๐๐๐โ๐ฌ ๐๐ง๐๐ฅ๐ข๐ ๐ข๐๐ข๐ฅ๐ข๐ญ๐ฒ ๐๐ฉ๐๐ซ๐ค๐ฌ ๐
๐ซ๐ฎ๐ฌ๐ญ๐ซ๐๐ญ๐ข๐จ๐ง
Erwin Magallanes, head of Corporate Relations at EDCโs Leyte geothermal facility, voiced his concerns over the disqualification, explaining that the company was deemed ineligible to participate in the 2015 CSP bidding process for the Federation of Rural Electric Cooperatives (Frecor) 8 (Eastern Visayas).
The bidding required power generators to have either a new power plant or an expansion project to meet power supply demandsโa condition EDC could not fulfill as all its facilities have been operational for years.
โWe really wanted to supply power in the region, but we are ineligible to participate in the CSP due to one requirement,โ said Magallanes, expressing disappointment over the missed opportunity to reduce power rates.
๐๐จ๐ง๐ฌ๐ฎ๐ฆ๐๐ซ๐ฌ ๐๐๐ฒ ๐ญ๐ก๐ ๐๐ซ๐ข๐๐
The exclusion of EDC from the bidding process has left consumers in host communities, such as Leyte, with higher electricity rates.
Residents and local officials have voiced frustrations over the situation, questioning why rates have spiked even though Leyte is home to one of the worldโs largest geothermal steam fields.
Magallanes clarified that only two electric cooperativesโLeyte II Electric Cooperative (Leyeco II) and Leyeco IIIโcurrently have Power Supply Agreements (PSA) with EDC. These agreements stem from EDCโs 2014 offer to all electric cooperatives (ECs) in Eastern Visayas.
As a result, out of the 11 ECs in the region, only Leyeco II and Leyeco III benefit from EDCโs geothermal power supply.
While Leyeco II charges its consumers PHP 11.95 per kilowatt-hour (kWh), the lowest rate among the cooperatives in Eastern Visayas, other cooperatives like the Don Orestes Romualdez Electric Cooperative charge much higher rates, reaching up to PHP 16.92 per kWh.
๐๐ก๐ฒ ๐๐๐จ๐ญ๐ก๐๐ซ๐ฆ๐๐ฅ ๐๐จ๐ฐ๐๐ซ ๐๐จ๐ฎ๐ฅ๐ ๐๐๐ฏ๐ ๐๐๐ฅ๐ฉ๐๐
Magallanes emphasized the stability of geothermal power prices compared to coal and oil. โGeothermal power prices are not volatile because they are not tied to oil and coal prices,โ he said.
The rising global fuel costs have pushed electricity rates higher, making geothermal energy an attractive alternative for stable and affordable power.
๐๐จ๐ง๐ ๐ซ๐๐ฌ๐ฌ๐ฆ๐๐ง ๐๐ข๐๐ก๐๐ซ๐ ๐๐จ๐ฆ๐๐ณ ๐๐๐ฅ๐ฅ๐ฌ ๐๐จ๐ซ ๐๐๐ญ๐ข๐จ๐ง
The frustration surrounding high electricity rates reached a boiling point during a House hearing in 2022, during which Congressman Richard Gomez expressed his anger over the issue.
Representing a city that hosts a geothermal power plant, Gomez criticized the local electric cooperative for not sourcing more energy from geothermal resources.
โThere is a big need to bring the cost of electricity lower to benefit our people and our economy,โ Gomez said, struggling to contain his emotions as he spoke about the financial strain on his constituents.
๐๐๐ ๐๐๐๐๐ฒ ๐ญ๐จ ๐๐ญ๐๐ฉ ๐๐ง
Despite the hurdles, Magallanes said EDC remains committed to helping reduce power costs.
โWe are prepared to offer energy from geothermal to help lower the average electricity cost of consumers,โ he said, adding that the company is ready to participate in Frecor-8โs Emergency Power Sales Agreement bid process to provide relief.
As a subsidiary of First Gen, EDC generates 100 percent renewable energy and has an installed capacity of more than 1,480 MW, which accounts for 20 percent of the Philippinesโ total renewable energy capacity.
๐๐๐ฒ๐จ๐ซ ๐๐ฎ๐๐ฒ ๐๐จ๐ซ๐ซ๐๐ฌ-๐๐จ๐ฆ๐๐ณ ๐๐ง๐ฏ๐๐ข๐ฅ๐ฌ '๐๐จ๐ญ๐ก๐๐ซ ๐จ๐ ๐๐๐จ๐ญ๐ก๐๐ซ๐ฆ๐๐ฅ ๐๐ง๐๐ซ๐ ๐ฒ' ๐๐จ๐ง๐ฎ๐ฆ๐๐ง๐ญ
In a vibrant celebration marking Ormoc City's 77th Charter Day, Mayor Lucy Torres-Gomez unveiled a revamped and monumental Wellhead Rotunda on Friday, October 18. The rotunda symbolizes the decades-long partnership between Ormoc City and the Energy Development Corporation (EDC).
This newly refurbished structure, known as the WOW Geo 24/7 Rotunda Wellhead Monument, stands proudly at Simangan Rotunda. It honors 46 years of geothermal energy production, a key pillar of Ormocโs economy and development.
Initially installed in 2019 at the request of then-Mayor Richard Gomez, the monument has been expanded and enhanced. Towering over the cityโs rotunda, it is a visual tribute to Ormocโs role as home to the worldโs second-largest geothermal power plant, shared with the Municipality of Kananga.
"To some curious tourists, this might have seemed like just a random part of the cityโs plumbing system. But today, we shed light on the importance of this monument," Mayor Lucy said during her speech. "This is a tribute to a remarkable industry that has served our city and our country for nearly five decades."
๐ ๐๐ซ๐ข๐๐ฎ๐ญ๐ ๐ญ๐จ ๐๐๐จ๐ญ๐ก๐๐ซ๐ฆ๐๐ฅ ๐๐ง๐๐ซ๐ ๐ฒ
The monument's significance lies in what it represents โ harnessing geothermal energy, one of the cleanest and most sustainable power sources.
Mayor Lucy explained how the wellhead works: "The wellhead is like the mother that gives birth to geothermal energy. It is the conduit that allows the earthโs natural heat to generate electricity."
She emphasized the monument's importance for locals and tourists, highlighting Ormoc's role in contributing to the countryโs energy landscape through clean and renewable power sources.
๐ ๐๐จ๐ง๐ -๐ฌ๐ญ๐๐ง๐๐ข๐ง๐ ๐๐๐ซ๐ญ๐ง๐๐ซ๐ฌ๐ก๐ข๐ฉ
The unveiling ceremony also underscored the robust partnership between EDC and Ormoc City.
โOur long-standing relationship has always gone beyond just harnessing geothermal energy,โ Mayor Lucy noted. "EDC has always been there, serving as a cornerstone of our local economy, as well as in social development and environmental stewardship."
For over four decades, EDC has played a vital role in powering the city and ensuring a sustainable future for its residents.
Mayor Lucy expressed deep gratitude to EDC for its unwavering support and commitment to the cityโs development.
๐๐จ๐จ๐ค๐ข๐ง๐ ๐๐ก๐๐๐ ๐ญ๐จ ๐๐ฎ๐ฌ๐ญ๐๐ข๐ง๐๐๐ข๐ฅ๐ข๐ญ๐ฒ
The WOW Geo 24/7 Rotunda Wellhead Monument is more than just a symbol; it is a promise for the future. Mayor Torres-Gomez emphasized how the partnership between EDC and Ormoc City will continue to march toward sustainable development.
"Hand-in-hand and side-by-side, EDC and Ormoc City shall continue to march on the road to sustainable development," she said, with optimism for the decades ahead.
Geothermal energy provides stable, clean power for the region, so Ormocโs residents can take pride in their cityโs contribution to a decarbonized Philippines.
As the city and EDC continue to work together, this landmark reminds us of the power of renewable energy and the strength of community partnerships.
