South Korean energy companies have signed an agreement to explore the development of up to 1,000 megawatts (MW) of renewable energy projects in Occidental Mindoro and other off-grid Philippine provinces, as the island grapples with daily power outages and heavy reliance on diesel generation.
A memorandum of understanding (MoU) was signed between Occidental Mindoro Governor Eduardo Gadiano, representatives of local government units, Wizzard Energy Corporation, South Korea’s CS-Tech Co., Ltd., Development Advance Solution Co., Ltd. (DASCO), and their strategic partners.
The proposed initiative, which project proponents estimate could attract about $1 billion in foreign direct investment, will explore the development of utility-scale solar power plants, floating solar facilities, battery energy storage systems (BESS), carbon credit projects and related renewable energy infrastructure.
“It is timely since Occidental Mindoro has been experiencing power outages in the past months. We are experiencing four hours of brownouts every day,” Gadiano said in an interview.
He said the province and the rest of the MIMAROPA region are not connected to the country’s main power grid and continue to rely largely on diesel-fired generation for electricity supply.
“The whole MIMAROPA region is not connected to the grid, and we are just counting on the diesel-powered generators,” he said.
Mindoro has been identified as the pilot area for the renewable energy initiative, with plans to expand to other provinces in MIMAROPA as well as Tawi-Tawi, Basilan and Sulu.
“We have identified potential sites already. Mindoro will serve as the pilot province, but will expand to all provinces of MIMAROPA, Tawi-Tawi, Basilan and Sulu, funded by Wizzard Energy through its Korean subsidiary, CS-Tech Co., Ltd.,” Gadiano said.
The governor said the local government would also pursue a power purchase agreement with the local electric cooperative for an initial 10-MW solar power facility that would help address the province’s electricity shortages.
Under the MoU, the participating local governments and private sector partners will work together to study and develop renewable energy projects across participating provinces and municipalities.
If realised, the initiative could support the Philippines’ efforts to improve energy security in remote and off-grid areas while reducing dependence on imported diesel fuel through the deployment of solar power, energy storage and other renewable energy technologies.