Two companies to get renewable energy contracts soon

Japan-based Saipan Solar System and U.S.-based American Capital Energy Co. are expected to sign contracts soon with the Commonwealth Utilities Corp. to provide an additional 20 megawatts or 10 megawatts each of alternative or renewable energy, the Fitial administration and businessmen said.

Lt. Gov. Eloy S. Inos said that CUC is “getting close to issuing the contract for the two 10-MW projects” involving “two different companies.” He said these contracts are for photovoltaic solar energy, and are for some 20 years each “to recover capital.”

“Hopefully technical issues will be addressed [soon],” Inos said, adding that each will sell renewable energy to CUC.

Inos said the award of these contracts does not mean the emergency declaration for CUC will be lifted, “because it’s going to take a while before they go into production.”

Besides, he said, there were other reasons that Gov. Benigno R. Fitial cited when he issued an executive order placing CUC under a state of emergency, including a cash crisis.

Herman Sablan, a local business partner of American Capital Energy, confirmed that they have been waiting for the actual contract award for months, and is hoping that with CUC now under a state of emergency, a contract will be forthcoming.

American Capital responded to Phase 1 of a solar power project, and was considered the best bid. Two companies protested the Phase procurement, but both firms-including Saipan Solar System-voluntarily dropped their protests, Sablan said.

Saipan Solar System also responded to Phase 2 of the solar power project and was determined the best bid.

Phases 1 and 2 involve 10 megawatts each.

Efrain F. Camacho, president of EFC Engineers & Architects, said yesterday that his firm has been retained by Saipan Solar System, which he said is in the early phase of negotiating for a power purchase agreement.

“As far as we know, there’s not been any protest. If there were, we would have been notified by now. Saipan Solar went through a normal procurement process,” Camacho told Saipan Tribune.

He said the first site of Saipan Solar’s project involving 0.2MW will be in Marpi; the second site will be in Koblerville.

CUC is required by law to derive at least 40 percent of its energy from renewable sources by 2012.

Abe Malae, who turned resigned shortly after CUC was placed under emergency, earlier told Saipan Tribune that this requirement is “unrealistic.”

“And even if it were online, it would destabilize the grid. But we have to work with that because that is what the politicians passed,” Malae said.

Malae’s resignation takes effect 30 days from May 24, 2012. Lawmakers said the CNMI is making a big mistake letting go of Malae, who turned CUC around by getting the CNMI out of rolling blackouts and stabilized the power supply.