| By Donnabelle L. Gatdula (The Philippine Star) Updated January 19, 2011 12:00 AM |
MANILA, Philippines - Manila Electric Co. (Meralco) will put up a pioneering combined jet fuel/diesel/natural gas power plant in Calamba, Laguna, the company’s top official said.
Meralco president and CEO Manuel V. Pangilinan said they intend to complete the construction of the peaking plant within eight months and start its operations by the first quarter of 2012.
“We announced our objective to put up 1,500 megawatts (MW). We’ll probably start with our peaking plant project in Calamba, Laguna. We hope to put it on stream as early as the first quarter of next year, about 120 to 150 MW. It’s a combined-cycle plant, with the turbine provided by jet engines,” he said.
Pangilinan said they expect the project to cost between $120 to $150 million, to be financed by internally-generated funds.
“We have enough cash,” he said.
While the cost of the peaking plant would be higher compared to other power plants, Pangilinan said the output from this facility would be sold at definitely lower prices than the spot market.
“It’s a little bit expensive but cheaper than the WESM (wholesale electricity spot market),” he said, noting that this would be consistent with the company’s goal to bring down rates.
“This (peaking plant) is ideal to be able to manage prices downwards,” the Meralco executive added.
According to Pangilinan, they are also planning to put up more baseload power plants but these would probably take a bit more time to implement.
“It’s probably operational 2014 to 2015. Baseload power plants can run 24 hours a day and do not need to start up.”
For his part, Meralco chief operating officer Oscar Reyes earlier said the company is in talks with four groups for a possible joint venture to build the power generation projects.
“We’re still continuing discussions with a number of potential partners. We haven’t made a final choice of partner but discussions are still ongoing with a number of them. We’re looking at potentially two to four partners,” he said.
While Meralco is going to put up the first plant on its own, it may tap a partner that can help put up other power projects at the soonest possible time and at a lower generation rate.
“The key in the choice of partner with whom can we bring capacity in to operation at the soonest..those who will be able to generate power at the most cost-competitive price so that we will be able to deliver power to the consumer at a more affordable level,” Reyes said.
He pointed out that they are still optimistic they could offer their customers rates below P5 per kilowatthour.
“We’re hoping for lower costs. Our aspiration is a much lower generating cost because that’s what our consumers are asking,” he said.
Meralco has over 4.8 million customers in its franchise area. It is now controlled by PLDT, San Miguel Corp., First Philippine Holdings and other minority shareholders.
Meralco president and CEO Manuel V. Pangilinan said they intend to complete the construction of the peaking plant within eight months and start its operations by the first quarter of 2012.
“We announced our objective to put up 1,500 megawatts (MW). We’ll probably start with our peaking plant project in Calamba, Laguna. We hope to put it on stream as early as the first quarter of next year, about 120 to 150 MW. It’s a combined-cycle plant, with the turbine provided by jet engines,” he said.
Pangilinan said they expect the project to cost between $120 to $150 million, to be financed by internally-generated funds.
“We have enough cash,” he said.
While the cost of the peaking plant would be higher compared to other power plants, Pangilinan said the output from this facility would be sold at definitely lower prices than the spot market.
“It’s a little bit expensive but cheaper than the WESM (wholesale electricity spot market),” he said, noting that this would be consistent with the company’s goal to bring down rates.
“This (peaking plant) is ideal to be able to manage prices downwards,” the Meralco executive added.
According to Pangilinan, they are also planning to put up more baseload power plants but these would probably take a bit more time to implement.
“It’s probably operational 2014 to 2015. Baseload power plants can run 24 hours a day and do not need to start up.”
For his part, Meralco chief operating officer Oscar Reyes earlier said the company is in talks with four groups for a possible joint venture to build the power generation projects.
“We’re still continuing discussions with a number of potential partners. We haven’t made a final choice of partner but discussions are still ongoing with a number of them. We’re looking at potentially two to four partners,” he said.
While Meralco is going to put up the first plant on its own, it may tap a partner that can help put up other power projects at the soonest possible time and at a lower generation rate.
“The key in the choice of partner with whom can we bring capacity in to operation at the soonest..those who will be able to generate power at the most cost-competitive price so that we will be able to deliver power to the consumer at a more affordable level,” Reyes said.
He pointed out that they are still optimistic they could offer their customers rates below P5 per kilowatthour.
“We’re hoping for lower costs. Our aspiration is a much lower generating cost because that’s what our consumers are asking,” he said.
Meralco has over 4.8 million customers in its franchise area. It is now controlled by PLDT, San Miguel Corp., First Philippine Holdings and other minority shareholders.
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