Ratepayers could save over US$43m, the agency said.
Guam Power Authority (GPA) signed a contract with KEPCO-LG CNS Consortium for a Phase II Renewable Acquisition of 60MW.
In an announcement, GPA said the KEPCO-LG proposal would provide substantial savings to GPA ratepayers over the term of the contracts based on current and projected LEAC rates. It is estimated the first five-year savings would be over US$43m. All these savings will go directly to ratepayers as part of the LEAC adjustment.
KEPCO-LG's contract, alongside that of South Korea's Hanwha Energy Corporation, has received the approval of both the Consolidated Commission on Utilities and the Public Utilities Commission.
Upon commissioning of these projects, GPA said it will be on its way to exceed the Renewable Portfolio Standard as set by P.L. 29-62 wherein GPA must have 25% of its energy supplied by renewable technologies by 2035.
“With both contacts online in about three years and the award of its next 40 MW renewable bid, the Authority will exceed the 2035 mandate by 2021,” commented John M. Benavente, P.E., general manager. “Utility-scale renewable projects like these will make the benefits of solar energy available to all ratepayers at rates that are affordable, stable and not subjected to world oil prices fluctuations.
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