Trans-Asia, Guimaras EC ink deal

Trans-Asia Oil and Energy Development Corp. has inked a long-term backup power supply deal with an electTric cooperative in Guimaras that is seen to result in lower electricity tariff in the area.

Trans-Asia and Guimaras Electric Cooperative Inc. (GUIMELCO) entered into a contract for the sale of electricity for back-up power requirements.

Both parties decided to renew their deal after their earlier supply agreement expired recently.

Under the deal, Trans-Asia will provide back up power for 10 years, which will be sourced from its 3.4-megawatt (MW) bunker C-fired diesel power plant in Jordan, Guimaras.

Trans-Asia and GUIMELCO are jointly seeking clearance for the CSE from the Energy Regulatory Commission.

Both parties said the renewal of agreement will “address GUIMELCO’s power supply reliability and voltage quality needs which would result to improved stability, ensure adequacy and reliability of the supply of electricity to the residents and consumers in its franchise areas.”

The deal will also reduce the cooperative’s “overall system cost” by providing efficient back-up power.