MGI Gets WESM Approval, Starts Grid Synchronization

November 6, 2013

Maibarara Geothermal, Inc. (MGI), owner and developer of the 20MW Maibarara geothermal power facility in Sto Tomas, Batangas, secured approval from the Philippine Electricity Market Corporation (PEMC) to be a direct trading participant  in the Wholesale Electricity Spot Market (WESM) effective November 4, 2013.  MGI President F.G. Delfin, Jr. said, “PEMC’s approval of MGI’s WESM participation and ERC’s release of the project’s Certificate of Compliance (COC) pave the way for our commercial operations which will start as soon as on-going commissioning tests are successfully completed. The impending start of MGI’s commercial operations, a little over two years from our financial closing, testifies not only to our team’s concerted efforts but to the cooperation and assistance we have received from the DOE and related agencies such as ERC, NGCP, PEMC, and PSALM.”

MGI is a joint-venture company 65% -owned by PetroGreen Energy Corp. (PGEC) a wholly-owned subsidiary of publicly-listed PetroEnergy Resources Corp. (PERC). Trans-Asia Oil and Energy Development Corp. (TAO) and PNOC Renewables Corp. (PNOC-RC) own 25% and 10% respectively of MGI. The firm secured a P 2.4 Billion loan from Rizal Commercial Banking Corp. (RCBC) and Bank of the Philippines (BPI) in September 2011 to partially fund the project. Ceremonial groundbreaking and construction of the power plant officially started in April 2012.

Three major components comprise the Maibarara project – steamfield, power station, and transmission facilities.  The steamfield is a compact development covering 1 hectare where 3 production wells, tapping a high-temperature neutral-pH geothermal reservoir, are connected to a central separator station. Separated steam from this station is conveyed to the power plant while the separated water is reinjected back to the reservoir in two deep injection wells; aggregate length of the steamfield fluid pipeline system is a little over 1 km.  MGI Steamfield Manager Pete Callos said, “We carried out commissioning tests of the steamfield facilities from the 2nd quarter to the 3rd quarter of this year and at this time, the system is already pressurized with the requisite steam quantity and quality being supplied to the power station for the commissioning tests.”

Maibarara’s 1×20 MW power plant is built by EEI Corp. under an EPC contrat, with major plant equipment supplied by Fuji Electric of Japan. The latter is also MGI’s service and maintenance contractor for the power facility.  MGI Power Plant Manager Ireneo Paulino, Jr. revealed that power plant commissioning activities commenced in late September involving technical teams from MGI, EEI, Fuji Electric, and Yokogawa Phil., Inc. (YPI). Simultaneous with the start of its WESM membership, MGI synchronized its facility to the Luzon grid on November 4 in coordination with Meralco and NGCP.  MGI’s facility is linked by a ~5 km-long 115 kV transmission line to the Luzon grid through the Meralco distribution system.