Meralco, partners want new 455-mw plant in Quezon ready by 2018

by Lenie Lectura, February 2, 2015
from BusinessMirror

Atop official of the Manila Electric Co. (Meralco) on Monday said the proponents of the 455-megawatt (MW) coal-fired power plant in Mauban, Quezon, want the construction to be fast tracked to provide much-needed electricity in the summer of 2018.

“We are hoping that we can move in an accelerated pace because it’s needed.  We are trying to have it in place, hopefully, in time for summer 2018,” Meralco President Oscar S. Reyes said.

New Growth BV, a wholly owned subsidiary of Electricity Generating Public Co. Ltd. (Egco) of Thailand, which is 25-percent owned by Electric Generating Authority of Thailand, and Meralco PowerGen (MGen), the power-generating firm of Meralco, formed San Buenaventura Power Ltd. Co. (SBPL) for the 455-MW coal-fired power-plant project in Mauban, Quezon.

MGen will own 51 percent of the power facility, including rights to assign up to 2 percent to an approved assignee, while New Growth BV holds the remaining 49 percent.

Construction has yet to start because SBPL is still finalizing a contract with its chosen engineering, procurement and construction contractor.

The power plant will be adjacent to the existing 460-MW coal-fired power plant of Quezon Power Philippines Ltd., which is mostly controlled by Egco.

Reyes did not say when the construction will start, but stressed that the country is “better off with comfortable level of supply.”

SBPL earlier signed a power supply agreement with Meralco for the sale and purchase of the plant’s entire output. The term of the PSA is 20 years from the commercial operation date. The effectiveness of PSA, however, will be subject to review and approval of the Energy Regulatory Commission.

The power project is envisioned to be the first supercritical highly fuel efficient, reliable and environment-friendly pulverized coal-fired power plant in the country. This is to meet the growing needs of residential, commercial and industrial customers in Meralco’s franchise area and the Luzon grid.

Meralco, meanwhile, is the country’s largest power-distribution utility firm assigned to provide  electricity in Metro Manila, Bulacan, Cavite, Rizal and in some parts of Batangas, Laguna, Quezon and Pampanga.