The Board of Investments approved this week the registration of P62 billion worth of power projects, which can generate a total of 735 megawatts in additional power for the Luzon grid.
The BOI identified the two projects as the P12.9-bilion coal fired power project of South Luzon Thermal Energy Corp., which is a joint venture between the Ayala group and Trans-Asia Oil and Energy Development Corp., and the P49.45-billion expansion project of the 600-megawatt Masinloc coal facility by Masinloc Power Partners Co. Ltd., the local arm of US power giant AES Corp.
Trade Undersecretary and BOI Managing Head Adrian S. Cristobal Jr. noted that these two projects would help address the country’s energy supply requirements. The BOI’s goal is to also ensure that approved investment projects contribute to long-term inclusive economic growth, he added.
Data from the Department of Energy showed that electricity demand is expected to grow at an average of 4.5 percent annually. The Luzon grid alone will require 1,050 MW of additional capacity by 2014.
According to BOI, the 135-MW coal project of South Luzon Thermal will be located in Calaca, Batangas, and will use a modern clean coal technology. The project is expected to start commercial operations by August 2014.
Potential clients for the facility’s output include electric cooperatives, industries, and wholesale electricity spot market or WESM.
In the meantime, the expansion project of Masinloc Power Partners involves the construction of two 300-MW units meant to double the plant’s capacity to 1,200 MW. The plant is part of AES Corp.’s portfolio in the country.
“The proposed Masinloc project will use environment-friendly technologies and a wastewater treatment plant meet the country’s environmental standards. The Masinloc project will start on June 2017,” the BOI said.