SMC to start 3 power projects this year

Facilities to have combined capacity of 2,400 MW


SMC president Ramon S. Ang: On target

Conglomerate San Miguel Corp. is pushing through this year with the construction of three power-generation facilities, which can generate a combined 2,400 megawatts for the country’s main grids.

SMC president Ramon S. Ang said in an interview that the company targets to start building this year a 1,200-MW power plant in Luzon, a 600-MW facility in the Visayas and another 600-MW plant in Mindanao.

Ang, however, declined to give details of these projects, noting that he would only do so before the groundbreaking for the facilities.

According to data from the Department of Energy (DoE), the conglomerate, through subsidiary SMC Global Power Holdings Corp., has six proposed facilities under its power-generation portfolio. These plants may be fueled by either coal, compressed natural gas (CNG) or liquefied natural gas.

The company is also considering building in Cavite a power plant that can generate 1,200 MW; a 600-MW power-generating facility in Bulacan; and another plant in Leyte, also with a 600-MW capacity. In Panay, a 150-MW power plant is also being considered.

In Mindanao, SMC Global targets to put up a 300-MW power plant in Davao del Sur and a 150-MW facility in South Cotabato.

In 2010 SMC acquired three coal mines in South Cotabato, which have resources capable of supporting a 750-MW facility over the next 25 years.

SMC is among the biggest players in the local power sector with an installed capacity of about 3,000 MW.

The company’s plans to further shore up power supply in the country bode well with the thrust of the government to have new power plants installed within the next several years.

As indicated in the Philippine Power Development Plan (PDP) 2013-2030, the country’s demand for electricity will grow by about 4.5 percent yearly. With this, the country may need an additional power-generation capacity of about 14,400 megawatts during the period.

Based on the data provided by the DoE, there are 51 committed and indicative power projects listed for construction between now and 2020, which can generate only 6,665.30 MW. Of these, 11 projects with a combined capacity of 839 MW have been categorized as “committed.”

Committed power projects are those that have complied with the necessary permits and clearances of various agencies and concerned local governments and are already in the process of financial closing.

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  • tadasolo

    Good for the Philippines and it will stabilize the the cost of electricity for rate payers. Coal being available in the Philippines and is the current cheapest source of energy. The Philippines should build storage facilities for liquified natural gas and take advantage of worlds oversupply of natural gas. The Philippines should consider building a pipeline and sign a long term deal with either Indonesian or Brunei. In addition it should start exploration with foreign partners along the eastern coast of the Philippines. The only source of natural gas on the western coast of Palawan is not enough to sustain power supply and plus the gas price is 5 times more than the current world natural gas prices

  • JP Villanueva

    nuclear energy please… it’s more efficient in terms of cost/power production which would lead to lower electric bills(hopefully)…

  • kismaytami

    How much increase in electric bill amount should we expect with this?

  • coty

    Mr. Ang, Sir! SMC has got a project here in Caticlan, why not exploit what the whole province of Aklan can offer some more re: green renewable energy!  we have the mighty “Akean” river that never dries up proven at the peak of the “El Nino” that time! somewhere in the area of Libacao and Madalag are the potential sites for a hydro power plant! countless studies have been done about it and they always prove so positive but then it’s all talk and nothing else. it’s time you prove your industrialist acumen and SMC’s by having this plant built it will be to the benefit of the whole Region VI! thanks a lot!

    • tadasolo

      Hydro are ok but required big capital investments and payback is not as good as coal or natural gas. It very rare in the Philippines to find hydro sources in the 500 to 1200 MW range that Mr Ang is looking to built. Only countries with large land mass and big river system will you find large hydro sources. Good example is Brazil(Itaipo), Canada(BC Hydro), USA(Grand Coulee and Hoover) and China(Three Gorge).

  • Manny

    use cold fusion reactor to generate safe and sustainable electricity…..

    • tadasolo

      There is no such thing as cold fusion. The two gentlemen experiment  from Utah University has been discredited and thought to be a chemical reaction. Fusion can only occur under tremendous amount of temperature to fuse particles and release heat which can theoretically be used to power turbines. Current fusion experiments have not been successful in sustaining a chain reaction. Nuclear energy now is sustain by fission which bombarding fissionable materials like U235 with neutron to knock off particles to establis a chain reaction and release heat. The heat generated is used to convert water into steam in a steam generator and steam will drive the a steam/generator. Nuclear is another option for the Philippines but has a high capital investment compared to coal and will take a long time to build. You need clean coal right now which the Philippines has in Mindanao. Natural Gas is another option but you need storage facilities. Otherwise you need to build a pipeline from you closest neighbor which Brunei or Indonesia. 

  • RyanE

    I think these power plants will be all coal-fired as there is still no source yet of natural gas in those areas. Coal-fired plants will be OK as long as anti-pollution equipment will be provided such as filters and scrubbers. Besides, such huge amount of needed power can never be generated by “green” plants such as solar- and wind-powered. Renewable energies that can compare to coal’s energy are hydro and geo-thermal but these are very scarce now.

  • Palparan

    gas-fired plants are acceptable but please, not coal-fired ones… It is the community at the vicinity that suffers from dust due to ash … Ok lng sana kung dun malapit sa bahay mo Mr. Ang magtayo ng 600MW coal-fired power plant…hahahaha!

  • Wadav

    Mr. Ang, please focus on RENEWABLE ENERGY. Power generation derived from coal power plants used substantial amount of water!  A scientific study (BurningOurRivers.pdf) just released recently in Apr 2012, stated that for every kWh generated, about 2 liters of water is required! Can you imagine if the coal power station is 300 or 600 MW? It will really have a great impact in our water system. 

    • tadasolo

      If you locate it on coastal region you can used ocean water for circulating water to cool the steam in the condenser. Most fossil and nuclear power stations are located near the coast to take advantage of the ocean. Otherwise you can used air cooled condensers which is a big investment and plant about 5 to 10% less efficient. 

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