Independent power producer comes to Samal Island to solve its power woes

(late upload sept 26, 2014 news)

A power firm known as EV Garcia is given 365 days or one year to construct its gasified coal-fired power plant, otherwise its contract with Davao del Norte Cooperative, Inc. would be rescinded.

Daneco, Inc. technical department manager Engr. Nielo Japay said that the contract with the independent power firm was signed last February 2014.

In the contract, EV Garcia firm pledged to supply 6.25 megawatts of power during peaking hours, when Daneco’s own power supply would run short of the total power demand in the island.

Engr. Japay said that Samal Island consumes a seasonal peak load of 4.7-MW power especially during Saturdays, vacation and December time, when the islands is trekked on by thousands of touristsand weekend beach goers.

Daneco has been implementing  rotating brownouts in the island when there is peak of power demand as the antiquated submarine cable has only a capacity to hold a running maximum power load of 5 MW.

The coming of EV Garcia power supply would solve the problem of rotating brownouts and power shortage in the island.

The island’s officials have been vocal against Daneco’s power insufficiency since the recent years that they earlier called for Davao Light Power Corp. to supply the island’s current power requirement and for expansion which they said need at least 10 MW.

But they could not have their wish fulfilled as the island is part of Daneco’s franchise area approved by Congress.

Meanwhile, a report said that another independent power firm has proposed this week to Daneco’s island officials to set up a power plant to compete with EV Garcia firm.

EV Garcia offered to construct a gasifier technology to produce a gasified coal that would fuel production of power supply in its power plant.

Daneco, Inc. is now shaking off dusts to recover from a three –year hostile feud with the rival Daneco-CDA group that had gravely wracked its organization and finances.

Daneco, Inc., which is strongly supported by the National Electrification Administration, is winning group as it recently won bitterly fought cases in courts even as the rival Daneco-CDA offices and collection centers had been padlocked one after another for operating and collecting electricity payments allegedly illegally.

A sketchy report said that NEA Manila filed last Tuesday morning a syndicated estafa case against Daneco-CDA officials and all its cohorts in a court in Manila.- Cha Monforte


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