GBPC eyes to build coal-fired plant to augment power supply in Luzon

Business Mirror
by Lenie Lectura - September 29, 2015

Global Business Power Corp. (GBPC) of the Metrobank Group has revealed plans to put up a coal-fired power plant in Luzon next year, a company official said.

“Yes, we’re looking at Luzon,” said GBPC Executive Vice President Jaime Azurin when asked it the power firm is expanding outside the Visayas.

“But it has to be bigger in size to be able to lower the cost,” the official said, referring to the capacity size of the planned power facility. He did not provide other details. “I cannot tell you because a lot of people are looking for a safe spot.”

He added, “A lot has been said on Luzon but nobody has started. The lowest price you have is a Chinese technology, which, unfortunately, is not doing good. How do you now convince the biggest buyer at the price competitive as the Chinese but with a better technology? The more sophisticated technology, the safer but a little more costlier.”

The output of the planned power facility will be disposed of via bilateral agreements with off-takers, probably the Manila Electric Co. (Meralco).

Meralco, through its power-development arm, already has a 20-percent stake in GBPC, the largest independent power producer in the Visayas. It was sold for P7.15 billion.

The utility firm is interested to acquire another 2-percent stake in GBPC. “Yes. We’re working on 22 percent of Meralco,” Azurin said.

Initially, the plan is to put up a reliable and cost-effective power facility in Luzon.

“If it’s the least cost, I don’t know how reliable it will be. We may have the least cost, but it’s not reliable. Reliability has a cost also. How can you force a big user like Meralco that you have to buy this technology. We’re all trying to find ways on how to compete,” Azurin added.

GBPC is a member of the GT Capital Group of Companies, of which Metrobank is the leading company.

It owns a 92-megawatt (MW) diesel-fired power plant in La Paz and is being operated by Panay Power Corp. Other power plants of GBPC are in Cebu, Aklan and Oriental Mindoro.

The company is also on track with the construction and commercial operation of its two power projects in Panay Island and Negros Occidental.

GBPC’s subsidiary, Panay Energy Development Corp., is adding 150 MW of additional power-generation capacity in the Visayas next year.

“We have 150 MW that’s being constructed in Iloilo City. That’s on schedule, it will be completed by June of 2016,” Azurin said.

Another power project in the pipeline is the 40-MW biomass power plant in La Carlota City, Negros Occidental. The biomass power plant will be within the premises of Roxas Holdings Inc.’s Central Azucarera de la Carlota. It is targeted for completion by 2017. source