MGI, TRANS-ASIA, AND MERALCO PARTNER IN GEOTHERMAL INTERCONNECTION PROJECT
Maibarara Geothermal, Inc. (MGI) signed an Interconnection Agreement (ICA) with Manila Electric Company (MERALCO) for the physical interconnection of the generation and connection facilities of MGI’s 20 MW power plant to MERALCO’s distribution system. The power facility being constructed in Brgy. San Rafael, Sto. Tomas, Batangas will be connected to MERALCO’s existing 115 kV line in Calamba, Laguna, six (6) kilometers (km) away.
MGI is a joint-venture firm composed of PetroGreen Energy Corporation (65%), a wholly-owned subsidiary of PERC, Trans-Asia Oil and Energy Development Corporation (25%), and PNOC Renewables Corporation (10%). MGI is conducting the MGPP under the Department of Energy awarded Geothermal Renewable Energy Service Contract No. 2010-02-012.
Under the ICA, MGI and MERALCO agreed that the proposed Generating Facility for the Maibarara Geothermal Power Project (MGPP) will be interconnected in parallel operation with MERALCO’s Distribution System. The interconnection shall be made at the standard nominal voltage of 115,000 volts, 3-wire, 3-phase and 60 hertz, and MERALCO’s facilities reserved for the interconnection will have a maximum 40 MW capacity. The Distribution Impact Study (DIS) conducted by MERALCO prior to the execution of the ICA showed that the said interconnection is feasible.
MGI and MERALCO, along with Trans-Asia Energy Oil and Development Corporation (TRANS-ASIA), also signed on December 6, 2012 a Memorandum of Agreement (MOA). The MOA defined the respective rights and obligations among the Parties: MGI as a Generation Facility to be interconnected with MERALCO’s distribution system under the ICA, and TRANS-ASIA as the sole off-taker of MGI’s electricity output under the Electricity Sales Agreement (ESA) dated September 16, 2012, which shall sell said output through MERALCO’s distribution system.
The Maibarara Geothermal Power Project is targeting July 2013 for initial tests and fourth quarter 2013 for commercial operations.