Meralco PowerGen Corp. (MGen), the power unit of electric distributor Manila Electric Co. (Meralco), has put up more power plants to add 3,000 megawatts to the Luzon grid and address a shortage in the region.
Meralco Chairman Manuel Pangilinan said Mgen has increased its long-term generation capacity to 3,000 MW from 2,700 MW because of the rising demand in Luzon grid.
“3,000 MW is probably quite achievable,” Pangilinan told reporters.
MGen cited the following plants as source: the 455MW San Buenaventura coal-fired power plant in Mauban, Quezon province; 600MW coal-fired power plant in Subic, Zambales; and the 1,200MW coal-fired power plant in Atimonan, Quezon province.
The three plants have an aggregate 2,255MW capacity. MGen is also putting up the 82MW coal-fired power expansion of the Global Business Power Corporation (GBPC) plant.
Angelito Lantin, Meralco PowerGen senior vice president for commercial development, said the power purchase agreement jointly filed by SBPL and Meralco in 2014 covering the full 455-MW capacity is still awaiting approval of the Energy Regulatory Commission (ERC).
SBPL is a joint venture of MGen with New Growth B.V., a wholly owned subsidiary of the Energy Generating Co. of Thailand.
He said the financial close with a consortium of local banks for the project’s financing and the finalization and issuance of a Notice to Proceed to the contractor, will be done upon release of the decision on the PSA by the ERC.
Lantin said MGen would develop other power plant projects with the “aim of significantly contributing to a more robust power supply situation with adequate reserves in the Luzon grid.”
Meralco President and Chief Executive Officer Oscar Reyes said favorable developments moved MGen’s joint venture power plant projects closer to financial close and substantive Engineering, Purchasing and Construction activities.
“We are committed to being an integral part of the solution to the twin concerns of tight power supply and rising power costs, which are critical to sustaining the country’s healthy momentum of investment and growth,” Reyes said.