Binary power plant inaugurated in Albay

By Rhaydz B. Barcia

The P7 billion, 28.9 megawatt Palayan Binary Power Plant, capable of generating 219,800 MWh annually and reducing the country’s carbon emissions by 72,200 tonnes per year, was inaugurated on Friday by the Energy Development Corporation-led First Gen Corporation.

EDC President and COO Jerome H. Cainglet stated that the P7 billion project, operated by EDC’s wholly-owned subsidiary BacMan Geothermal Inc., harnesses the thermal energy of brine, a by-product from EDC’s 120-MW Palayan Bayan 1 flash geothermal power plant, to generate electricity without the need for additional steam.

The unveiling of the 28.9 MW Palayan Binary Geothermal Power Plant (PBGPP) in Manito, Albay, is part of the expansion of EDC’s existing 140 MW Bacon-Manito (BacMan) facility. It employs a zero-discharge system that ensures brine and other fluids are efficiently re-injected into the reservoir, minimizing environmental impact.

The PBGPP is one of four geothermal growth projects initiated during the COVID-19 pandemic, all of which are targeted to be operational in 2024 with a combined overall capacity of 86 MW. The other projects include EDC’s 28MW Mahanagdong Binary in Leyte, 20MW Tanswon Binary also in BacMan, and the 5.6MW Bago Binary in Negros Occidental.

“Construction of the PBGPP began in the last quarter of 2021 amid the uncertainties of the pandemic. Despite these challenges, we have remained steadfast in advancing these projects while prioritizing the health and safety of all our workers,” Cainglet said.

The 28.9 MW capacity increases the BacMan Geothermal Complex’s total capacity to 168.9 MW. As one of our seven growth projects for 2024, it is a testament to our commitment to decarbonizing our planet and fulfilling our regenerative mission, Cainglet added.

“We thank all our EDC employees involved in this landmark project for their tireless dedication and commitment, as well as our partner contractors and relevant government bodies such as the provincial government of Albay, local government of Manito, Department of Energy (DOE), the Energy Regulatory Commission, the Board of Investments, and the National Grid Corporation of the Philippines,” he continued.

The PBGPP was granted a Certificate of Energy Project of National Significance (CEPNS) by the DOE in November 2020, highlighting its importance in the country’s continuing efforts to utilize indigenous energy resources for energy security and independence.

“This project is also a crucial contribution toward the cleaner energy transition goals set in the National Renewable Energy Program (NREP), which targets a renewable energy mix of 35 percent by 2030 and 50 percent by 2040,” the EDC official said.

“Apart from renewable energy output and decarbonization, PBGPP contributes positively to Bicol through EDC’s institutionalized corporate social responsibility initiatives. Primary among these is Community-Based Technical-Vocational Skills Training that produces TESDA NC-II certification in industries such as scaffolding, masonry, welding, and electrical installation and maintenance,” he added.

EDC is First Gen Corporation’s 100% Renewable Energy (RE) subsidiary, with over 1,464.5 MW of total installed capacity, accounting for almost 20 percent of the country’s total installed renewable energy capacity.

Its 1,169.85 MW geothermal portfolio comprises 80 percent of the country’s total installed geothermal capacity, making the Philippines the third-largest geothermal producer in the world. First Gen is the Philippines’ leading clean energy company.

Energy Secretary Raphael P.M. Lotilla stated that the inauguration of the project would boost the country’s energy supply, as the binary plant expands EDC’s existing Bacon–Manito geothermal facilities in Bicol, marking another milestone in the Philippines’ journey toward a cleaner, more stable, and more secure energy future.

“Every megawatt of additional power that enters the grid is crucial. The projected 215.8 GWh of power that the Palayan Bayan binary power plant will generate each year will contribute to our energy security agenda and our cleaner energy transition goals as set in our National Renewable Energy Program, targeting a renewable energy mix of 35 percent by 2030 and 50 percent by 2040,” DOE Secretary Lotilla said.

He emphasized that every additional megawatt of clean, renewable energy is vital for the country’s decarbonization goals, noting that the Palayan Bayan Binary plant is estimated to reduce atmospheric emissions by as much as 72,200 tonnes per year.

“We are committed to accelerating our energy transition and encouraging investments in RE projects. The Bangko Sentral has expanded financing for green projects such as renewable energy development, energy efficiency, green buildings, and transition financing for decarbonization. Clean energy investments are more attractive with the increase in the single borrower’s limit for green loans and the reduction of reserve requirements for green bonds,” Lotilla said.

The Board of Investments has extended more incentives for projects building their own renewable energy facilities, including tax holidays and exemptions on import duties for raw materials and equipment.

“We remain optimistic about global interest in the Philippines’ strong potential for renewable energy.” He added.

EDC officials led by Jerome H. Cainglet, president and chief operating officer inaugurates the P7 billion 28.9MW Palayan Binary geothermal power plant in Manito town in Albay on Friday. The new power plant will reduce 72,200 tonnes of the country’s carbon footprints annually. (Rhaydz B. Barcia)