AES Corp. to pursue $1B expansion for Masinloc coal power plant
MANILA, Philippines—US-based power giant AES Corp. is pushing through with its $1-billion expansion plan that will double the existing capacity of the 600-megawatt Masinloc coal-fired facility in Zambales, according to the company’s top official.
At the sidelines of Powertrends 2011 on Thursday, AES country chair Andrew Horrocks told reporters the company has been in the process of getting an environmental compliance certificate (ECC) for the proposed power plant and would complete other permits by this November.
Horrocks said the first phase of the project would include the construction of the 300-MW coal plant, which would be completed by 2015. The second phase of the project will see the remaining 300 MW going online by 2018, should there be a demand for additional power at that time.
“Should the market be there and the commercial position be there, then we believe that probably, as we study the market and the market grows further, the next addition will be another 300 MW that will require moving forward,” Horrocks further noted of the planned second phase of the project.
As for the first phase, the start of construction will still largely depend on the negotiations with the engineering, procurement, and construction (EPC) contractor as well as the financial closure.
Through its acquisition of the Masinloc I facility from state-run National Power Corp. in 2008, AES then became the largest foreign investor in the country’s power sector.
As a result of capital investment and operational improvements, AES increased Masinloc’s capacity to 630 MW from 450 MW; improved availability to 74 percent from 50 percent; and increased net production by 62 percent within two years.
AES also improved the plant’s environmental performance, lowering emission levels in compliance with World Bank standards.
The Masinloc II project (expansion) would leverage the existing infrastructure, transmission interconnection and AES’ operating experience in the Philippines, the company had said.
According to an earlier AES statement, the Philippine economy is projected to grow at an average of over five percent year over year through 2015, with demand for electricity set to grow five percent throughout the same period.
AES is a Fortune 500 global power company with generation and distribution businesses in 30 countries. The company owns and manages $40 billion worth of assets. In 2009, its revenues reached $14 billion.
