GPA inks renewable energy projects with S. Korean firms
Officials of the Guam Power Authority, Korean Electric Power Corp., and LG CNS Consortium take a group photo after the sigining of a renewable energy contract Aug. 24, 2018. Photo courtesy of GPA.
The Guam Power Authority (GPA) has signed two separate contracts for renewable energy projects for a total of 120 megawatts power capacity.
On Aug. 24, GPA entered into a renewable energy contract with Korean Electric Power Corp. (KEPCO) and LG CNS Consortium as part of its phase II renewable acquisition of a 60MW project.
“GPA ratepayers are the beneficiaries of this utility scale renewable project to include the benefits of solar energy available at rates that are affordable, stable and not subject to world oil price fluctuations,” GPA general manager John M. Benavente said following the contract signing on Aug. 24.
GPA said in the first five years of operations, the renewable energy production is estimated to bring $43 million in savings that will be passed on to ratepayers through their monthly energy statement as part of the GPA’s levelized energy adjustment clause rate.
At completion, the project will contribute 9 percent of Guam’s energy needs.
This was the second renewable energy contract by GPA since August for a total of 120 megawatts of utility scale solar photovoltaics.
GPA earlier signed a 60MW power purchase agreement with Hanwha Energy Corp. to construct a facility in the Dandan area of Inarajan on Aug. 22.
Hanwha will construct its renewable energy project in the Dandan area of Inarajan. It is projected to be operation and come online to Guam’s island wide power system in 2021.
Both projects, which are expected to be online within three years, are part of GPA’s goal to meet a renewable portfolio standard mandated by Guam public law wherein GPA must have 25 percent 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,” Benavente said. “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.