LOPEZ-LED First Gen Corporation (First Gen) announced on Monday that the 97 megawatt (MW) output of its Avion natural gas-fired power plant can now be offered and traded on the Wholesale Electricity Spot Market (WESM).
In a disclosure to the Philippine Stock Exchange (PSE), the Philippine Electricity Market Corporation (PEMC), operator of WESM, acknowledged the start of participation of the Avion power plant in WESM.
The 97-MW Avion open-cycle natural gas-fired power plant has the capability to run on either natural gas or diesel, and its turbines have the flexibility to ramp up quickly and to do unlimited daily starts and stops, making it the ideal merchant peaking plant to add to First Gen’s portfolio of assets.
The Avion plant is located in Barangay Bolbok, Batangas City, within the First Gen Clean Energy Complex.
“We are pleased to announce that Avion has finally achieved commercial operations. We likewise await the Certificate of Compliance (COC) for the 414MW San Gabriel plant. These two plants will add much needed power supply to stabilize the grid,” First Gen Corporation president and COO Francis Giles said in a statement.
Last September 9, the Energy Regulatory Commission (ERC) issued a certificate of compliance for the Avion plant.
The Avion and San Gabriel power plants are owned by Prime Meridian Powergen Corporation (PMPC) and First Natgas Power Corp. (FNPC), respectively. PMPC and FNPC are wholly-owned subsidiaries of First Gen.
PMPC plans to use natural gas from the existing Malampaya field as fuel for the Avion plant, and shift to re-gasified liquefied natural gas (LNG) when supply from the Malampaya field is no longer available, and when imported LNG becomes available in the Philippines.
Electricity from Avion is to be sold entirely to WESM in order to take advantage of its high clearing prices, particularly during peak periods. Additionally, if necessary and economically feasible, the plant can provide ancillary services to the grid.