TeaM Energy Corp., a joint venture between Japanese companies Marubeni Corp. and Tokyo Electric Power, has officially let go of the operations of the 1,200-megawatt (MW) Sual Coal-Fired Thermal Power Plant following the expiration of its contract with the government.
The company announced this development in a statement over the weekend, saying the turnover was completed on Oct. 25.
“The plant has been turned over in excellent condition, ready to continue generating electricity for the Luzon grid,” said Mitsuhiro Kojima, officer in charge of TeaM Energy.
The facility was fired up through a build, operate and transfer scheme with the government, allowing the plant to supply power to the Luzon grid since 1999.
The group said it had worked closely with the National Power Corp. (Napocor) and the Power Sector Assets and Liabilities Management Corporation (PSALM) for the transition process.
Following this development, the operations of the Sual plant will now be under the hands of Sual Power, Inc. (SPI), a subsidiary of San Miguel Global Power (SMGP), through a temporary setup.
SPI served as the Independent Power Producer Administrator (IPPA) of the TeaM Energy-operated Sual facility, conforming to an administration agreement between the former and PSALM. Under the Electric Power Industry Reform Act, the government is not allowed to take over power generation. Subsequently, the end of the deal with TeaM Energy entitled SPI to “take ownership of the plant.”
In ‘capable’ hands
Kojima was confident that SPI was “capable” of ensuring the smooth flow of electricity from the Sual plant to the grid.
“For more than 25 years, the Sual Power Station has contributed to the development of the Philippines by generating reliable, cost-effective energy that has energized homes, factories, offices, schools and hospitals,” Kojima said.
The coal-fired plant, located in Pangasinan, is composed of two 600-MW generating units, making it one of the biggest power facilities nationwide.
TeaM Energy also said that with the plant’s operations, the municipality of Sual was upgraded to a first-class municipality from a fifth-class level in 1994.
“We are thankful to our stakeholders including the national government through the Department of Energy, NPC, PSALM, and other agencies, our host communities including the Pangasinan provincial government, the Sual municipal government and Barangay Pangascasan for enabling the Sual plant’s success,” Kojima said.
The group said it would continue managing the operations of the 735-MW Pagbilao Power Station in Quezon Province. It also has a 50 percent interest in the 420-MW Pagbilao Unit 3 Power Project. INQ