MANILA, Philippines—Publicly listed Trans-Asia Oil and Energy Development Corp. has signed a contract with Consunji-led SEM-Calaca Power Corp. for the purchase of power generated from the latter’s 600-megawatt coal-fired facility in Batangas.
In a disclosure to the Philippine Stock Exchange, Trans-Asia said it signed Wednesday the “contract to purchase generated energy,” which will be valid for three years.
According to Trans-Asia president Francisco L. Viray, the company was buying the generated output as a retail electricity supplier (RES). He did not indicate how much of the plant’s output Trans-Asia would buy from SEM-Calaca.
Trans-Asia was earlier awarded a RES license by the Energy Regulatory Commission.
According to ERC chairperson Zenaida Ducut, a RES license holder like Trans-Asia will be able to actively participate in the electricity market once open access and retail competition are put in place.
Under an open access environment, large power users will be able to choose their own power suppliers. With the current system, buyers are limited to the suppliers with jurisdiction over their areas.
Meanwhile, SEM-Calaca Corp. was earlier formed by DMCI Holdings and Semirara Mining Corp. to handle the Calaca coal facility, which was previously owned by the government through National Power Corp.
SEM-Calaca’s investment in the Batangas coal facility was earlier estimated at $483.6 million, which includes the acquisition cost of $361.7 million. The remaining $121.89 million will go to the rehabilitation and working capital requirements of the power plant.