Wednesday, January 19, 2011

Meralco power plant ready by next year

Manila Times.net
MANILA Electric Co. (Meralco) aims to commission its first power plant by the first quarter of next year.

On the sidelines of a forum Tuesday, Manuel Pangilinan, Meralco president and chief executive, said the utility plans to put up a 120- to 150- megawatt power generating facility within its franchise area.
“We announced our objective to put up 1,500 megawatts [of total capacity]. We will probably start with our peaking plant project in Calamba, Laguna. We hope to put it on stream as early as first quarter of next year,” he said.

The country’s largest electricity distributor, Meralco serves Metro Manila and some of its outlying provinces. The company earlier laid out plans to enter into power generation in its bid to reduce its rates and secure its electricity supply.

Under local regulations, electricity distributors may put up their own power plants provided that these facilities do not supply more than half of their supply requirements.

Pangilinan said the company’s proposed power plant would use combined-cycle technology, which produces electricity by burning either liquid fuel or gas.

The facility is intended to meet the utility’s “peaking” power requirements or whenever demand for electricity is beyond the capacity of “baseload” plants, which are generating facilities that run 24/7.

The cost of the power plant is “approximately $800,000 per megawatt, so about $120 to $150 million,” Pangilinan said.
Meralco plans to undertake the project on its own, although company officials earlier said they had been in talks with potential partners to spread costs.

Pangilinan however said the utility has “enough cash.”

At end-September 2010, Meralco’s cash at hand stood at P20 billion or roughly $450 million.
Its shares closed lower yesterday at P266 apiece from its previous close of P280.
EUAN PAULO C. AÑONUEVO

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