DEPARTMENT of Energy (DOE) has approved the engineering services contract of Benguet Electric Cooperative Inc. (Beneco) and Avelino V. Garcia (AVG) Power Systems Corporation as one of the pioneering Renewable Energy Service Contracts in the country.

The Beneco-AVG Power Systems Corp. contract was one of 87 Renewable Energy service contracts nationwide confirmed in a program held at the STI Academic Center Amphitheater at the University Parkway Drive, Fort Bonifacio Global City, Taguig on October 23.

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The program was the "Renewable Energy Bigshow" which was an acronym for Biomass and Bio-fuels; Geothermal, Solar, Hydro, Ocean and Wind.

Energy Secretary Angelo T. Reyes was the main guest who witnessed the signing of the contracts.

AVG Power Systems Corporation Chief Executive Officer Avelino V. Garcia also joined the Beneco board meeting last October 27 to inform members that with the R.E. Service Contract, the major documentary requirement of the DOE, has been complied with the feasibility study and on-site activities can now proceed.

Beneco is the first electric cooperative to enter into a feasibility study contract and avail of provisions under the Renewable Energy Law or Republic Act 9513.

The 11-member Beneco Board of Directors unanimously approved the mini-hydro electric plant feasibility study engineering services agreement along the Man-asok River in Buguias, Benguet last April 22 with Board president Victorio Palangdan presiding.

On motion of Director Gaspar Leung for District 11 covering the towns of Bakun, Buguias and Mankayan, duly seconded, the Board approved the "Buguias Mini-Hydro Project Feasibility Study" to be implemented at a project cost of P1.4 million.

In a related development, members of the Beneco Board met with residents of Asin, Tuba, Benguet during the same board meeting last October 27 for exploratory talks in connection with their claims in relation to the Asin Mini-hydros.

Earlier, Baguio Mayor Reinaldo A. Bautista Jr. wrote Beneco General Manager Gerardo P. Verzosa stating the city is seriously considering longterm privatization of the operation and management of the Asin Hydro Electric Plants.

Based on City Resolution 104, series of 2009, the city will wait for Beneco's formal offer for the plants not later than Nov. 10.

"Depending on our evaluation of the offers further negotiations may be pursued for [those] who may be seen to be advantageous. Otherwise, the offers will be used as guide in fixing the terms of reference in the bidding of the maintenance and operation of the plants," the Mayor's letter stated.

The Board has decided to submit a formal offer taking into account the city's power consumption from city-owned public buildings, metered and unmetered streetlights among others. (PR)