Power producers commit additional 3,000 MW for Luzon in 5 years–DOE

by Lenie Lectura – February 4, 2016

from Business Mirror

LUZON is assured of more than 3,000 megawatts (MW) of additional power-generating capacity from new power projects committed by the private sector for commercial operation from 2016 to 2020.

Based on the Department of Energy (DOE) list of committed power projects in Luzon as of January 2016, coal-power projects comprise 1,697 MW of the total capacity; followed by natural gas, 1,150 MW; solar, 248.98 MW; hydro, 65.90 MW; geothermal, 43 MW; and biomass, 44.5 MW.

In all, power producers have committed 3,299.38 MW of power-generating capacity for the said period.

The coal-power projects include Anda Power Corp.’s (APC) 82 MW, Southwest Luzon Power Generation Corp.’s (SLPGC) 300 MW; South Luzon Thermal Energy Corp.’s (SLTEC) 135 MW; SMC Consolidated Power Corp.’s (SMPC) 300 MW; Pagbilao Energy Corp.’s (PEC) 420 MW; and San Buenaventura Power Ltd. Co.’s (SBPL) 460 MW.

The power projects of APC, SLPGC, SLTEC and SMPC’s Unit 1 are all targeted for commercial operation this year.

SMPC’s Unit 2 and PEC’s power projects are set to be commercially available in 2017. The following year, SBPL’s power facility is expected to come on line, with commercial operation set in 2019.

For gas-power projects, Prime Meridian PowerGen Corp.’s 100- MW Avion project is targeted for commercial operation in February 2016; 450 MW of First NatGas Power Corp.’s San Gabriel project in December 2016; and 600 MW of Energy World Corp. also this year.

The hydropower projects that will come on line in 2019 are Cordillera Hydro Electric Power Corp.’s 60 MW in February; DPJ Engineers and Consultants’ 1 MW in March; and PNOC Renewables Corp.’s 1 MW in September.

Other hydropower projects scheduled for commercial operation in 2020 include Isabela Electric Cooperative Inc.’s 2.4 MW, and Tubao Mini-Hydro Electric Corp.’s 1.5 MW.

The solar projects lined up for commercial operation this year are the 13.86 MW of SPARC Solar Powered Agri-Rural Communities Corp.; 10.06 MW of First Cabanatuan Renewable Ventures Inc.; 13.34 MW of RASLAG Corp.; 100.44 MW of Jobin-Sqm Inc.; 14.5 MW of YH Green; 50 MW of PetroSolar Corp.; and 46.78 MW of Solar Philippines Calatagan Corp.

The 20-MW hydro project of Mirae Asia Energy Corp. and 30 MW of ATN Philippines Solar Energy Group Inc. are scheduled for commissioning this year.

The geothermal project of Energy Development Corp. (31 MW) is set for commissioning in the second half of 2017, while Maibarara Geothermal Inc.’s (12 MW) project is targeted for commercial operation in August 2017.

For biomass projects, the following are committed for commercial operation in 2016: 10.8 MW of Green Innovations for Tomorrow Corp.; 4.5 MW of Bicol Biomass Energy Corp.; and 1.5 MW of Asian Carbon Neutral Power Corp.

DOE data showed the 6.1-MW biomass project of Aseagas Corp. is scheduled for commissioning in April 2016, while Phase 2 of the 10.8 MW of San Jose City I Power Corp. is scheduled for commercial operation in 2017.

The 10.8-MW biomass project of Cleangreen Energy Corp. is targeted for commissioning in 2018.

Manila Electric Co. (Meralco) President Oscar Reyes said demand for electricity will continue to grow by an estimated 250-MW to 300-MW peak demand per year in Luzon.

“The market is changing and demand is growing,” Reyes said.

Meralco is the largest distribution utility firm serving 5.7 million customers in Metro Manila, Bulacan, Cavite and Rizal, as well as parts of Batangas, Laguna, Quezon and Pampanga. It is increasing its capital expenditure this year to keep up with the increasing demand for electricity.

“Assuming it’s a 2.5-percent growth,” Reyes said, referring to yearly assumption of economic growth, “that’s about 270-MW growth in the Luzon grid—that’s almost one power plant a year, notwithstanding derating and retirement of old power plants.”

It is estimated that about half of the Philippines’s GDP is generated in Meralco’s franchise area. Its market share is at 74 percent for Luzon and 55 percent for the entire Philippines.