First Gen eyes 2 Batangas plants

The Lopez-led First Gen Corp. is looking at the feasibility of adding two new power plants in Batangas that can potentially generate as much as 1,300 megawatts (MW) in installed capacity for the Luzon grid.

Documents from the Department of Energy (DoE) showed that the government has given First Gen the clearance to determine if it was feasible to build another 1,000-MW power plant that runs on liquid fuel within Batangas. Also to be studied is the feasibility of a 300-MW mid-merit power plant, also in the same province.

The clearance granted by the DoE was for the grid impact study, which will be conducted by the national transmission network operator National Grid Corp. of the Philippines (NGCP). The study is critical as it will determine if the electricity to be generated by the proposed power projects can be absorbed by the grid or if the existing transmission lines are enough to transmit the electricity from the power plant to the substations.

The study will determine if First Gen can put up its power plants in the areas it has chosen.

A proponent has to know if the power project can be absorbed by the grid or if the facility will only cause a congestion of electricity supply.

The issuance of a clearance also comes with a letter of endorsement from the DoE to NGCP.

First Gen is touted as the leading clean and renewable energy company in the Philippines with an installed capacity of 2,783 MW, which accounted for 18 percent of total installed capacity in the country today.

As of 2011, First Gen has a portfolio of 16 power generation plants that are predominantly contracted for sale under long-term power purchase agreements or other energy sales agreements. First Gen’s power generation portfolios use indigenous fuels such as natural gas, water and geothermal steam.

The company has 60-percent equity interests each in the 1,000-MW Sta. Rita and the 500-MW San Lorenzo natural gas fired plants, which source their fuel from the Malampaya gas field off Palawan.