South Korean energy companies are eyeing a $1-billion investment in a 1,000-megawatt renewable energy program that will begin in power-starved Mindoro before expanding to other provinces in MIMAROPA and the southern Philippines.
The initiative was formalized through a memorandum of understanding signed Wednesday by Occidental Mindoro Governor Eduardo Gadiano, representatives of local government units, Wizzard Energy Corporation, South Korea's CS-Tech Co. Ltd., and Development Advance Solution Co. Ltd. (DASCO).
The proposed partnership will explore the development of utility-scale solar power plants, floating solar facilities, battery energy storage systems, carbon credit initiatives and other renewable energy infrastructure projects.
"It is timely since Occidental Mindoro has been experiencing power outages in the past months. We are experiencing four hours of brownouts every day. It is because the whole MIMAROPA region is not connected to the grid, and we are just counting on the diesel-powered generators," Gadiano said.
He said the recurring power interruptions have disrupted businesses and affected residents, particularly students.
Under the agreement, local government units will identify idle government-owned lands for the construction of 10-megawatt solar power plants through a public-private partnership.
"Once all documentary requirements are done, we can immediately start the construction in two to three months. Maliwanag ang aming Pasko," Gadiano said.
The governor added that local governments will also work on securing power purchase agreements with electric cooperatives that will distribute electricity generated by the projects.
Mindoro will serve as the pilot province, with the program expected to expand to other MIMAROPA provinces as well as Tawi-Tawi, Basilan and Sulu.
Wizzard Energy Chairman Daegu Jeon said the 1,000-megawatt renewable energy plan is expected to be completed within a 10-year period.
The project is aligned with the Renewable Energy Act of 2008, the Department of Energy's renewable energy priorities and the Public-Private Partnership Code of the Philippines.
Under the memorandum, participating local governments will assist in site identification, permitting, environmental compliance, stakeholder engagement, grid connection coordination and community participation.
The South Korean consortium is expected to provide renewable energy technology, engineering expertise, project development support, engineering, procurement and construction services, and foreign direct investment.
The initiative comes as Malacañang announced a separate agreement signed on 25 May by the Maharlika Investment Corporation, National Power Corporation, National Transmission Corporation and National Electrification Administration to rehabilitate, modernize and develop Mindoro's power transmission infrastructure.
Palace Press Officer Undersecretary Claire Castro said the agreement aims to improve the reliability and resiliency of the Mindoro small grid, support the island's long-term energy requirements and lay the groundwork for its eventual interconnection with the national grid.
