THE power generation projects of Manila Electric Company (Meralco) are on track to help meet an anticipated rise in power demand in the country.
These power generation projects are being undertaken by Meralco PowerGen Corp., (MGen) the energy arm of the country’s largest distribution utility.
MGen reported that major milestones were realized in the third quarter of the year for their power projects.
Angelito U. Lantin, MGen senior vice president and general manager, said these projects include the 455-megawatt (MW) supercritical coal-fired power plant in Mauban, Quezon and the 2×300 MW circulating fluidized bed (CFB) coal-fired power plant in Subic, Zambales.
San Buenaventura Power Ltd. (SBPL), in which MGen has a significant interest, is working to complete limited plant site preparation works for the Mauban project. These activities are needed before proceeding to financial close and issuing a Notice to Proceed (NTP) to the engineering, procurement and construction (EPC) contractor.
The Mauban coal-fired power plant is expected to begin commercial operations by the first half of 2019.
SBPL is a joint venture project of MGen and New Growth B.V., a subsidiary of The Electricity Generating Plc (Egco) of Thailand, while Redondo Peninsula Energy, Inc. (RP Energy), developer-owner of the Zambales power plant, continues to work with the National Grid Corporation of the Philippines (NGCP) for the transmission line (T-Line) requirements of the plant.
RP Energy is also pursuing the completion of other project development activities before it starts with the construction of the power plant.
The terms of the project financing agreement are expected to be finalized by the first quarter of 2016.
RP Energy is a joint venture among MGen, Therma Luzon, Inc., (a subsidiary of Aboitiz Power Corp.) and Taiwan Cogeneration International Corporation—Philippine Branch Office.
Global Business Power Corp., in which Meralco has a 22 percent interest, has a total of 709 MW of dispatchable capacity, with another 150 MW CFB coal-fired power plant being built in Iloilo City through Panay Energy Development Corp. (Panay Energy).
Equity in Panay Energy has been fully funded and commercial operation is estimated to begin in the third quarter of 2016.
Meralco president and chief executive officer Oscar R. Reyes has said “participation in power generation is highly strategic” for the firm.
Without any generating capacity, Reyes said Meralco would effectively be only a “price-taker” and a “supply-taker.”
“We look forward to building a portfolio of highly fuel-efficient, highly reliable power-generating facilities of up to 3,000 MW in joint venture with strategic partners,” Reyes said.