Meralco unit out to boost capacity in Luzon
Meralco PowerGen Corp., the power generation arm of Manila Electric Co., is looking to build power facilities that can generate 2,700 megawatts in additional capacity for the Luzon grid in five years’ time.
In a briefing on Monday, Meralco president and CEO Oscar S. Reyes noted that the proposed portfolio would consist of two 600-MW coal-fired power plants expected to cost roughly $2.6 billion. Also, combined and liquefied natural gas (LNG) facilities are expected to generate a total of 1,500 MW.
Reyes declined to cite specific investment requirements for the LNG facilities, which may be put in Batangas or Quezon, depending on the outcome of feasibility studies. The cost of the LNG power plant itself will be lower than the coal plant, he added.
“Our strategic intent is to build new, highly fuel-efficient, environmentally sound and reliable combined cycle base load and mid-merit power plants of up to 2,700 MW over the next five years, mindful of the Department of Energy supply-and-demand outlook as well as the company’s load growth target areas to spur national development,” Reyes said. “We likewise continue to look for opportunities in the grids outside Luzon and potentially even outside the Philippines, to enhance our profitability and showcase the technical competency of our engineers, technical and customer service people.”
The first 600-MW coal facility is being put up at the Subic Bay Freeport in partnership with Aboitiz Power Corp. and Taiwan Cogeneration, through a vehicle company called Redondo Peninsula Energy (RP Energy).
The Subic facility is Meralco’s initial venture in its re-entry to the power-generation business. Development activities are continuing as the company hopes to operate the first 300 MW plant by the first half of 2016.
As for its LNG plans, Meralco earlier revealed that it was eyeing Batangas as a possible location because of its proximity to the Department of Energy’s $2.1-billion Batangas-Manila natural gas pipeline, and the Shell Companies in the Philippines’ planned $1-billion regasification terminal in Tabangao, Batangas.—Amy R. Remo
