The Palawan Electric Cooperative will soon enter into a power supply agreement with King Energy Generation, Inc., ensuring a 15-megawatt mixed electricity supply for the world-class tourism destination, El Nido, which has recently been grappling with insufficient energy provision.
El Nido’s power capacity, which is currently at 8.85 megawatts and provided by the National Power Corporation (Napocor), is struggling to meet a demand that has reached 7.778 megawatts and is still increasing as of January 4, 2024, serving 3,600 residential and 548 commercial customers.
In response to the frequent power outages and the growing energy needs of the municipality, Paleco initiated a Competitive Selection Process (CSP) for an independent power provider.
Maria Janelle Rebusada, information officer of the Palawan Electric Cooperative (Paleco), stated Saturday that the PSA is the subsequent step after King Energy Generation, Inc. (KEG) was selected and awarded through a CSP conducted on December 19, 2023, for the procurement of power supply.
The PSA entails a 15-year agreement with the new power provider to ensure a blended supply of diesel fuel and renewable energy for the town.
Paleco General Manager Engr. Rez Cortez oversaw the awarding of the PSA, aiming to provide El Nido with a reliable energy supply.
“Si GM ang nag-supervise para ma-award ang 15-megawatt PSA sa El Nido—katatapos lang ngayong taon na ito,” Rebusada said.
“Awarded pa lang talaga sya. Next week ang start ng paggawa ng PSA itself,” she added.
Once the Energy Regulatory Commission (ERC) gives its approval to the PSA, the commencement of commercial operations by King Energy is set to take place one year afterward.
“Aalis si Napocor once mag-commercial operation na si King Energy,” Rebusada explained.
King Energy, which operates multiple power plants in Mindanao, including both traditional and renewable energy sources, is an established entity with 70% Filipino and 30% foreign ownership.
The company, with its main office in Gingoog City, Misamis Oriental, was formally established on December 6, 2010.
