RP Energy cuts Subic power plant capacity target to 300 MW

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THE Redondo Peninsula (RP) Energy Inc. is lowering by half the target capacity of its newest coal-fired power plant at the Subic Bay Freeport Zone in Zambales.

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The consortium is set to change the project parameters to reduce the capacity from 600 megawatts (MW) to 300 MW, Meralco Chairman Manuel V. Pangilinan said.

RP Energy is a joint venture of Meralco PowerGen Corp., Aboitiz Power Corp., and Taiwan Cogeneration International Corp.

Pangilinan attributed the changes to the issues surrounding the transmission line connection.

“There were issues on the distance of the connection of the transmission line to the grid,” Pangilinan told reporters.

He explained that the transmission line from the power plant to the grid will have to go through areas that are apparently occupied by indigenous people.

“There are pockets where there are reserved areas. So you know we cannot build on top of that. That’s prohibited by law,” he said.

The project was originally conceived as 600 MW power facility, composed of two 300 MW coal­fired plant.

Its construction was delayed because of the Writ of Kalikasan filed before the Supreme Court (SC) by groups opposing the power plant.

The High Court upheld the project’s environmental compliance certificate, as well as the lease and development agreement with the Subic Bay Metropolitan Authority.

The project is now in the construction phase after the consortium has hired the engineering, procurement and construction contractor.

The consortium has tapped a group of local banks to help finance the project. The power plant is expected to contribute additional generating capacity to the Luzon grid.

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