To prevent power shortages in Cebu, Governor Gwendolyn Garcia signed a memorandum of understanding, or MoU, with two private firms to construct a 150-megawatt solar power plant in Daanbantayan.
Garcia forged the MoU with Spanish firm Acciona Energia Global, S.L. and Makati-based Freya Renewables Inc., jointly referred to as AEG-Freya. The two companies proposed to develop the solar power plant at no cost to the provincial government.
“The construction of the 150-megawatt solar power plant project could greatly improve the power supply in the province of Cebu and avert the projected power shortage that the province may experience in the future,” the MoU read in part.
Daanbantayan Mayor Sun Shimura welcomed the development, but said that they are still finalizing where to construct the solar power plant in the locality. “We are finalizing yet our comprehensive land use plan,” he told DAILY TRIBUNE.
Garcia said the solar power plant will be the first of its kind in the entire Philippines. She noted that the proponents are from the largest power supplier in Europe, and they are now partnering with the province of Cebu.
“In the next year and a half, the longest — two, we will be able to provide cheaper energy for the province of Cebu, enticing more investments and, more importantly, helping those who are in the lower ranks of the economic pie,” the governor said.
Once the project is completed, it will generate income for the province through a percentage share of Freya’s revenues from electricity sales, she said.
The unsolicited proposal is subject to a Swiss challenge, which allows competing bids from other companies or groups. If a challenger submits a better proposal, the original proponent is given the right to match.