PUERTO PRINCESA CITY — The Palawan Electric Cooperative (Paleco) is finalizing a crucial power supply agreement with King Energy Generation Inc. to address the persistent energy challenges faced by the world-renowned tourism destination El Nido.

This agreement promises to deliver a 15-megawatt electricity supply, combining both traditional and renewable sources to the town, Maria Janelle Rebusada, Paleco’s information officer, said on Saturday.

El Nido, known for its breathtaking natural beauty and world-class tourism offerings, has been grappling with an ongoing energy crisis.

With its current power capacity standing at 8.85 megawatts, provided by the National Power Corporation (Napocor), the town has struggled to meet the ever-increasing demand for electricity. As of 4 January, the demand had surged to 7.778 megawatts, serving a community of 3,600 residential and 548 commercial customers.

In response to frequent power outages and the growing energy needs of the municipality, Paleco initiated a Competitive Selection Process (CSP) to secure the services of an independent power provider.

Rebusada said that after careful consideration, King Energy Generation, Inc. (KEG) emerged as the chosen power producer, receiving the award through the CSP held on 19 December 2023, for the procurement of power supply.

She explained that the power supply agreement (PSA) represents the next step in this critical initiative. The PSA outlines a 15-year agreement with the new power provider, ensuring a balanced supply of diesel fuel and renewable energy to cater to the town’s electricity needs.

Engr. Rez Cortez, the general manager of Paleco, played a role in overseeing the awarding of the PSA. Rebusada said his objective is clear, and that is to provide El Nido with a dependable and consistent energy supply.

“General Manager Contrivida supervised the awarding of the 15-megawatt PSA to El Nido, which just concluded this year. It has been awarded, and the actual PSA preparation will begin next week,” she said.

The final step in this energy transformation is securing approval from the Energy Regulatory Commission (ERC). Once the ERC gives its nod of approval to the PSA, King Energy is scheduled to commence commercial operations approximately one year later.

“The Napocor will be removed once King Energy starts its commercial operation,” she added.

King Energy Generation Inc. is a well-established entity with a mix of ownership, comprising 70 percent Filipino and 30 percent foreign stakeholders.

The company operates multiple power plants in Mindanao, harnessing both traditional and renewable energy sources. Its main office is situated in Gingoog City, Misamis Oriental, and it was formally established on 6 December 2010.

Rebusada said with a more stable power supply, El Nido is poised to continue offering its visitors an unforgettable experience while ensuring the well-being of its residents and businesses.