PetroEnergy Resources Corp. (PERC) has signed an energy sales agreement (ESA) with partner Trans-Asia Oil and Energy Development Corp. for the off-take of the generated electricity from the 20-megawatt Maibarara geothermal project, which is targeted to be on stream by September 2013.
This was disclosed by PERC to the Philippine Stock Exchange.
Trans-Asia, a licensed wholesale aggregator in the deregulated power market, has emphasized in a separate disclosure to the local bourse that the ESA “covers a 20-year period.”
The energy sales pact prescribes that “Trans-Asia will purchase all the electricity output of said power facility at an agreed price, subject to certain adjustments.”
The geothermal power venture is under corporate vehicle Maibarara Geothermal Inc. (MGI) which consigns the operatorship to PECR’s subsidiary Petrogreen Energy Corporation with 65-percent stake. Trans-Asia holds 25-percent equity while state-owned Philippine National Oil Company-Renewables Corporation owns the minority stake of 10-percent.
“MGI will sell the entire output of the plant starting in 3rd quarter of 2013, when the power facility is targeted to begin commercial operations,” PetroEnergy Resources said.
The company expounded that the agreed electricity price will cover payments for capacity fee, operations and maintenance fee and annual escalation based on inflation and foreign exchange adjustments.
“The ESA will be subject to review every five years,” it added.
The project sponsors are already moving headway into the venture’s implementation. Previous deals closed had been those on engineering, procurement and construction (EPC) contract.
The facility will be among the capacity additions to the Luzon grid coming from conventional renewable energy (RE) resource.
