Tuesday, October 26, 2010

Kepco-SPC’s coal plant starts supplying power to Visayas

Business World Online
Posted on 09:15 PM, October 26, 2010
CEBU CITY -- Cebu is set to get additional power capacity as Kepco-SPC Power Corp. tests the first of its two new 100-megawatt (MW) coal-fired power plants.
The new coal plant is expected to start commercial operations by the end of February for the first 100-MW unit, and in May next year for the second 100-MW unit.

The first unit was synchronized with the Visayas grid on Oct. 8, although Kepco-SPC held synchronization ceremonies only yesterday.

Synchronization is expected to help alleviate the deficiency in power supply in the Visayas region, particularly in Cebu, Negros, and Panay islands, said Korea Electric Power Co., Inc. (Kepco) Vice-President Lee Jang Pyo.

“This (synchronization) is an indication of Kepco’s sincere determination in fulfilling its commitment to the Philippines in providing quality, reliable and environment-friendly energy at the best value for its end-users,” Mr. Lee said yesterday.

Cebu and the rest of the Visayas have continued to experience rotating power outages due to lack of supply caused by the preventive maintenance shutdown of some old power plants.

The outages lengthened to more than two hours per area in the past three weeks after a transmission line fault on Oct. 5 tripped off major power plants in Cebu, including two 82-MW units of the new coal plant of Cebu Energy Development Corp. in Toledo.

The Visayas had a supply deficit of 138 MW yesterday, as peak load was estimated to reach 1,264 MW while available capacity was only at 1,126 MW, the National Grid Corp. of the Philippines Web site showed.

The lack of supply in the Visayas since the summer of 2009 has delayed the implementation of the Wholesale Electricity Spot Market here. Market operator Philippine Electricity Market Corp., however, has been instructed to fast-track the setting up of the market because of the additional capacities that are expected to come online in Cebu and Panay.

The new plant of Kepco-SPC, a joint venture between Kepco Philippines and SPC Power Corp., was three weeks ahead of schedule, said Antonio T. Corpuz, SPC Power senior vice-president.

“It’s always good to be ahead of schedule. If tests are done early, then power supply will also stabilize earlier. And if there are problems, there would still be enough time to correct these and meet the commercialization target in February next year,” Mr. Corpuz said in a separate interview. The second unit will be synchronized with the grid in late January next year.

The new 200-MW plant is located within the Naga power complex, which is being run and maintained by SPC Power.

Aside from the Kepco-SPC plant, new capacities will come from Cebu Energy and Panay Energy. The third 82-MW unit of Cebu Energy is expected to be commissioned for testing in December this year.

The first and second units were synchronized with the grid in February and May.

Panay Energy Development Corp., meanwhile, expects to commission its first 82-MW coal-fired unit in Iloilo City before the end of the month, and the second in December. --Marites S. Villamor

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