MANILA, Philippines—Local power generation firm CIP II Power Corp. has finally begun the commercial operation of its 21-megawatt diesel-fed power plant, following the completion of its transfer to a new location in Bacnotan, La Union.
In an interview, CIP II Power president Francisco Viray explained that the diesel facility began operating this month as a merchant plant, after facing several delays.
The facility was earlier intended to resume operations as early as January 2012.
The diesel-fed plant is expected to sell power to the wholesale electricity spot market (WESM), as well as supply emergency power to cement firm Holcim.
It was earlier reported that the power plant would be serving a portion of the power requirements of Quezon II and Sorsogon I electric cooperatives.
The CIP II Power’s diesel plant used to supply the electricity requirements of the Carmelray Industrial Park II in Calamba, Laguna.
In April 2009, however, CIP II Power sold the power distribution network inside the park, effectively terminating the original concession agreement with park operator Carmelray—JTCI Corp.
This led to the termination of CIP II’s power operations inside the park.
In December 2010, CIP II’s board of directors approved the transfer of its power plant from Laguna to La Union.
The following month, in January 2011, CIP II began dismantling its plant in Calamba for transfer to the new location in La Union.
By July 2011, all major equipment and structures were transferred from Laguna to the new site adjacent to the Holcim cement plant.
CIP II is the wholly owned subsidiary of Phinma-led Trans-Asia Oil and Energy Development Corp.