TUESDAY, 18 JANUARY 2011 19:52 PAUL ANTHONY A. ISLA / REPORTER
THE Manila Electric Co. (Meralco), the country’s largest power distributor, is looking to have one of its several power plants operational by the first quarter of next year.
“We announced our objective to put up 1,500 megawatts [MW], we’ll probably start with our peaking plant project in Calamba, Laguna,” Manuel V. Pangilinan, Meralco president and chief executive, told reporters. Peaking plants generally run only when there is a high demand for electricity.
He added that they hope to have the 120-MW to 150-MW power plant on stream as early the first quarter of 2012.
The power plant will be powered by a combined-cycle gas turbine and will run either on liquefied natural gas, diesel or aviation fuel. Pangilinan explained this technology can be designed and constructed as quickly as possible. The company will not outsource plant construction.
Investment in the power facility could range between $120 million and $150 million. Pangilinan explained cost in power plants using this technology is about $800,000 per megawatt (MW).
Financing for the project will come from internally generated funds, as Pangilinan said the company has “enough cash.”
While generation cost may be expensive since the plant is designed only as a peaking plant. “It will bring down rates at the Wholesale Electricity Spot Market. That’s the ideal way for us to be able to manage prices downward,” Pangilinan said.
After the completion of its first facility, Pangilinan said Meralco is also looking at investing in a number of base-load plants. “But that would probably take a bit more time to implement and will probably be operational 2014 to 2015.”
The Meralco head earlier said his company is looking at building a total of 1,500-MW capacity within the next five years, as it sets up the Meralco Power Generation Co. to undertake the power distributor’s plan to go into generation.
“We have a target generation cost that we want to achieve. And to achieve that target getting into power generation is the best. Not just on our standpoint, but also for consumers. We get beaten up whenever electricity charges go up,” the Meralco official said, referring to the negative market reaction whenever power costs are increased.
Although he said Meralco is open to partnerships and joint ventures, Pangilinan said the firm expects to hold the majority or controlling stake.
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