Friday, June 17, 2016

AboitizPower takes over Cebu-based power generator



By Danessa Rivera (The Philippine Star) | Updated June 17, 2016 - 12:00am

MANILA, Philippines - A unit of Aboitiz Power Corp. has gained full control of a Cebu-based power generation company to help the group inch closer to its 4,000 megawatt (MW) capacity target in the next four years.
In a disclosure to the Philippine Stock Exchange, AboitizPower said its wholly-owned subsidiary Therma Power Inc. acquired El Paso Philippines Energy Co. Inc.’s 50 percent interest in East Asia Utilities Corp. (EAUC).
The deal covered five million common shares and 21,690 Series A redeemable preferred shares for a total consideration of $11 million or P509.41 million.
With the acquisition, the group has gained full ownership of EAUC, the operator of the 50-MW oil-fired power plant in Mactan Island in Cebu.
AboitizPower first purchased the 50 percent ownership interest of El Paso Philippines in EAUC on April 20, 2007.
The company said the deal is in line with its target to increase its attributable net sellable
AboitizPower president and COO Antonio R. Moraza said it will also allow the group to “better participate in contracting of energy and ancillary reserves.”
“Reliable peaking power plants are part of our bigger objective of creating a right-mix of power supply for our customers,” he said.
Ancillary services are necessary to support the transmission of capacity and energy from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and the grid code.
EAUC operates a Bunker C-fired power plant with an installed capacity of 50 MW in Barangay Ibo, Lapu-Lapu City in Cebu. The power plant has the capability of providing critical peaking and ancillary services to the Visayas grid.
AboitizPower has an existing portfolio of geothermal, hydropower, coal, oil and solar power plants.
Currently, it is working on the 68-MW Manolo Fortich hydropower plant, 340-MW coal-fired power plant in Cebu under Therma Visayas Inc. and the 420-MW coal-fired Pagbilao III.
Along with other partners, AboitizPower is also in pre-construction works in for the 600-MW Redondo Peninsula Energy (RP Energy) project in Subic, Zambales.
RP Energy is a consortium composed of Meralco PowerGen Corp., AboitizPower and Taiwan Cogeneration International Corp.

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