Subic power plant seen to play critical role

Despite various regulatory hurdles, Redondo Peninsula Energy Inc. remains hopeful that it will be able to pursue its planned $1.28-billion, 600-megawatt coal-fired power plant at the Subic Freeport Zone, stressing that the planned facility will prove invaluable to the industrial area and the rest of Luzon in the coming years.

RP Energy—which is a consortium composed of power distributor Manila Electric Co. (Meralco), Aboitiz Power Corp. and Taiwan Cogeneration—is still waiting for trhe release of its environmental compliance certificate (ECC), according to RP Energy president Aaron Domingo.

The ECC, which would effectively serve as a go signal for RP Energy to start construction of the circulating fluidized bed (CFB) coal plant, was earlier expected to be granted sometime this October.

Although the month is halfway through, RP Energy would like to keep its target date for the start of commercial operations of the Subic coal plant, Domingo said in a text message.

Based on the company’s current plans, the construction of the coal-fed facility, which is also expected to generate 120 new jobs, will be put up in two phases.

The first 300-MW unit is expected to start operations by 2015, followed by the second 300-MW unit.

RP Energy expects to sell part of the plant’s output to Meralco, the country’s biggest power distributor, although this has yet to be negotiated by both parties and approved by the Energy Regulatory Commission.

In a separate text message, Meralco president and chief executive officer Oscar S. Reyes warned that RP Energy should stick to its timetable for the coal facility to ensure that the electricity requirements of Meralco are met and that the power supply in the Luzon grid will not be put at risk.

“The 600-MW CFB clean coal power plant of RP Energy at the Subic Freeport Zone is critical in ensuring power supply availability, reliability, affordability and security for the Luzon Grid and the Meralco franchise area,” Reyes explained.

He added that the power distributor is working hard to secure the necessary government agency approvals and permits.

“We have … complied with the requirements, even as we continue to constructively engage with the local governments, local communities and interest groups. We are hopeful of securing the requisite support and approvals,” Reyes said.

Aside from the lack of ECC, RP Energy is facing another hurdle this time from the Supreme Court.

The high tribunal issued in July a Writ of Kalikasan on the proposed 600-megawatt coal facility.

Kabataan party-list Representative Raymond Palatino, Bayan Muna Rep. Teodoro Casiño, Gabriela Rep. Emerenciana de Jesus, Anakpawis Rep. Rafael Mariano and environmental groups led by Kalikasan president Clemente Bautista Jr., filed the Writ of Kalikasan with the Supreme Court.

They claimed that the Subic coal project would violate the constitutional rights of the residents of surrounding communities to “a balanced and healthful ecology.”