MANILA, July 10 (PNA) — Trans-Asia Oil and Energy Development Corporation (TA) has landed three hydropower service contracts with a total supply capability of 320 Megawatts (MWs) located in Luzon.
Based on a disclosure with the Philippine Stock Exchange (PSE), Trans-Asia Oil and Energy Development Corporation has been awarded three hydropower service contracts by the Department of Energy (DOE) to utilize areas in Rizal, Isabela and Benguet.
Specifically, the hydropower service contract in Pililia, Rizal is estimated to have a generating power of 300 MWs, while the contract in Ilagan, Isabela is capable of producing 10 MWs. The contract in Banguias, Benguet lists an electrical capacity of 10 MWs.
Moreover, the disclosure stated that the contracts are given two years for the pre-development stage, in which Trans Asia will check the commercial feasibility of the projects.
If the projects are considered viable, it will proceed to the declaration of commerciality in which the three projects will continue to the development stage. The latter is given a period of 25 years to be implemented.
According to the renewable energy law of 2008, the pre-development stage comprises the preliminary assessment and profit checks up to the financial closing of the project while the development or commercial change is defined as the developmental, production or actual utilization of the energy resources. The latter is also involved in the construction and installation of facilities, including the operational stage of the project.
On the other hand, The University of the Philippines’ National Engineering Center (UPNEC) disclosed that the Luzon grid will need an additional 600 MW to be sustainable in 2015. With the 320 MW capable service contracts, more than half of the Luzon grid’s required new supply will be answered.
On May 13, Trans-Asia Power Generation Corporation, a full subsidiary of TA, announced the acquisition of the 200 million full shares of Udenna Energy Corporation on the One Subic Power Generation Corporation. Trans-Asia purchased the entire stocks of the company for Php489.1- billion.
Along with power generation and supply, Trans-Asia Oil and Energy Development Corporation is also engaged in petroleum exploration and production. (PNA)