By Lenie Lectura - May 1, 2017
THE Manila Electric Co. (Meralco) expects the release of the regulatory approval of its power-supply agreement (PSAs) for Redondo Peninsula Energy Inc. (RP Energy) within the month.
“The PSA is expected to be secured from the Energy Regulatory Commission by May,” said Angelito Lantin, senior vice president of Meralco PowerGen, the power- generation arm of Meralco.
RP Energy is a joint venture among MGen (47 percent), Therma Power Inc. (25 percent) and Taiwan Cogeneration International Corp. (25 percent). The power project is a 2×300-megawatt (MW) circulating-fluidized bed coal-fired power plant in Subic Bay, Zambales.
The PSA for the first 300-MW phase of the power project was already signed with Meralco (225 MW) and Aboitiz Energy Solutions Inc. (75 MW) in April 2016.
Upon approval of the PSA, RP Energy will issue the notice to proceed to the engineering, procurement, construction (EPC) contractor and drawdown on the project-financing loan.
A construction contract was signed with Azul Torre Construction Inc., while the supply contract was with Doosan Heavy Industries and Construction Co. Ltd.
RP Energy has signed the P31-billion, long-term project-financing loan agreement with three local banks.
Lantin said site preparation is essentially complete, as the power plant site is ready for major construction activities for the first phase, targeted to be completed in the third quarter of 2020.
The second phase shall follow within 12 months, subject to the progress of the National Grid Corp. of the Philippines’s rights-of-way acquisition for the new transmission line that will be built to connect the second phase to the grid.
The PSA for RP Energy is one of the seven it filed with the Energy Regulatory Commission.
Meralco President Oscar Reyes also expects regulatory approval of its PSA for Atimonan One Energy Inc. (A1E), which is involved in a 2×600-MW power plant in Atimonan, Quezon province.
A1E signed in April last year a 20-year PSA with Meralco for the full output of the plant.
“We are eagerly awaiting the release of the approvals of our PSAs for the 2×600-MW A1E and the first 300-MW phase of RP Energy power plants, as we see the critical need for these power plants to come online to meet the growing power requirements within the next three to four years,” Reyes said.
He said the first three months of the year saw generation charges spike due to the combined effects of thinning supply from scheduled shutdowns and forced outages, and recently from the unexpected effect of earthquakes on the Batangas power plants last month.
“In the meantime, we have proceeded with all the necessary preconstruction work so that we can mobilize the EPC contractors soon after approvals are obtained,” Reyes said.