Tuesday, July 13, 2010

DMCI mulls expansion of Calaca coal-fired plant

DMCI Power Corp. is mulling the expansion of its Calaca coal-fired power plant in Batangas.

Nestor Dadivas, DMCI Power president, said that the company is studying the Luzon grid’s power situation to see if they could expand the 600-megawatt plant. “We are studying the power demand and supply situation in Luzon,” he said.

The company has yet to determine the scale of the plant’s expansion as this would be hinged on the results of the study. 

The electricity supply in the Luzon grid has been unreliable since the start of the year because the recurring power plant shutdowns have reduced the available generating capacity in the country’s biggest island group.

This was also compounded by the prolonged dry spell that has driven up the demand for electricity earlier this year.

DMCI Power is a unit of DMCI Holdings Inc., a Consunji-led company that has interests in construction, real estate and coal mining.

The holding firm acquired the Calaca plant in July last year from a state auction for $361.7 million. 

But this plant was only capable of churning out 340 megawatts of power after years of being run by the government. This has prompted DMCI Holdings to embark on a rehabilitation program to improve the plant’s deteriorating output by 130 megawatts. Dadivas said the $60-million rehabilitation will be completed by February next year.
Euan Paulo C. AƱonuevo

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