South Luzon Thermal Energy Corp. (SLTEC) has launched the commercial operation of Unit 1of its 270-megawatt (MW) coal-fired power plant in Calaca, Batangas last Friday.
SLTEC, which is a joint venture of Trans-Asia Oil and Energy Dev. Corp and AC Energy Holdings, the power arm of Phinma Corp, said Trans-Asia would purchase the output of the 135-megawatt coal-fired plant under a 15-year power purchase agreement.
It said in a disclosure to the Philippine Stock Exchange a second unit, which would complete its 270 MW capacity, was scheduled to be completed by the last quarter of this year or early in 2016.
But Phinma Group President and Chief Executive Officer Ramon del Rosario said he was confident that the second unit would come onstream as early as the third quarter of this year.
“In our power business, which is through Trans-Asia, two of our power plants will come onstream before the end of the year,” del Rosario said.
The project costs P10 billion. Trans-Asia and AC Energy both committed to pour in P1.5 billion each after they signed a joint venture agreement in 2011 to develop and operate the power plant.
With the commercial operations of the Calaca coal plant, 135-MW will be added to the Luzon grid and the coal plant will help address the possible power shortfall in Luzon this summer, Del Rosario said.
TransAsia has a portfolio of close to 250 MW of power generation from diesel plants across the country and it is poised to double its power capacity to 400 MW in the next few years.