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.
“SBPL [San Buenaventura Power Ltd. Co. in Mauban, Quezon], has reached financial closure, the project has broken ground, and the notice to proceed (NTP) has been given. We are proceeding with RP Energy [Redondo Peninsula Energy Inc.] as a 600 MW facility.
The first phase is 300 MW, [our]partners have decided to go ahead, and we expect to get financial closure within the next 2 quarters and issue the NTP. Bids are for the balance of 300 MW, we just have to ensure necessary transmission line feasibility,” Meralco President and CEO Oscar Reyes told reporters in an interview.
“While in Atimonan in terms of permits, the ECC [environmental compliance certificate]is done, land use conversion is done, and the NTP, we expect to get that this month. As for the Engineering, Procurement, Construction (EPC), we have bids we’re in the final stages of assessing . . . we have very strong interest from a number of parties, and will award by the third quarter, with construction to start by mid-next year, and completion targeted for 2021,” Reyes added.
MGen currently sources power from the 455 MW San Buenaventura coal-fired power plant in Mauban, Quezon; the 600 MW coal-fired power plant in Subic, Zambales; and the 1,200 MW coal-fired power plant in Atimonan, Quezon. The three plants have an aggregate 2,255 MW capacity.
The company aims to build a diversified power portfolio of up to 3,000 MW from now until 2020, through a strong focus on environmental stewardship and fuel selection driven by availability, reliability and cost-competitive price to the system, the company said.