SN Aboitiz Power-Magat, Inc. has renewed its power supply agreement (PSA) with its longtime distribution utility partner Ifugao Electric Cooperative (IFELCO).
SNAP said that it signed a nine-year PSA with IFELCO through a virtual signing ceremony at the end of January, with the new contract obligating SNAP to provide IFELCO with 7.5 megawatts (MW) worth of electricity.
“IFELCO has been one of our longest distribution utility partners, and this agreement represents both our organizations’ commitment to sustainability,”SNAP President and Chief Executive Joseph S. Yu said in a statement.
The PSA, signed by both SNAP and IFELCO, has been transmitted to the Energy Regulatory Commission (ERC) for approval.
In the previous joint application between SNAP and IFELCO, 96.05 percent of IFELCO’s distributed electricity was provided by SNAP-Magat, with the remainder of 3.95 percent coming from a mini-hydro power plant in Ambangal that IFELCO has a separate PSA with that lasts until 2039.
The same application pegged SNAP’s generation rate at P4.18 per kilowatt-hour (kWh), with a load factor or average electricity demand to maximum production ratio of 79.87 percent.
SNAP-Magat’s hydroelectric power plant has a capacity of 360 MW and is connected to the 230-kilovolt grid system of the National Grid Corp. of the Philippines. SNAP also owns and operates the 105-MW Ambuklao and 140-MW Binga hydroelectric power plants in Benguet.
On January 26, SNAP-Magat also entered a 10-MW agreement with Cagayan II Electric Company (CAGELCO II).
SNAP Group is a joint venture of Aboitiz Power Corp. and Oslo-based renewable energy (RE) company Scatec.