The Semiconductor and Electronics Industries Foundation, Inc. (SEIPI) has cited its Annual Business Partner, First Gen, on the inauguration of its 414-MW San Gabriel combined-cycle and 97-MW Avion open cycle natural gas-fired power plants in Santa Rita, Batangas, on Nov. 11, 2016.
First Gen owns the 1,000-megawatt Santa Rita and the 500-megawatt San Lorenzo natural gas-fired power plants that are actually generating electricity that lowers the bills to consumers of the Manila Electric Company (Meralco) .
SEIPI welcomed the inauguration of the new power plants, which provide much needed additional generating capacity to the Luzon Grid. As noted by Dr. John Morris of the International Energy Consultant in his May 2016 “Regional/Global Comparison of Electricity Tariffs” study, the Philippines should “focus on facilitating investment in new generation to meet rapid demand growth and promote competition”.
SEIPI said that these new investments will create more competition, not just among power plants, but also among fuels. Based on July data from Meralco’s website, natural gas can be a cheaper source of power.
Dan Lachica, SEIPI President, said: “One of the major challenges faced by the electronics industry is the high cost of power, which is the second worst in Asia. The additional 511 MW from these natural gas power plants is a welcome development for our Philippine electronics industry.”
In 2015, the Philippine electronics industry accounted for $28.9 billion, or 49% of our country’s merchandise exports. The industry employs 2.8 million direct and indirect workers.