P-Noy inaugurates 200-MW coal-fired plant in Cebu

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MONDAY, 27 JUNE 2011 19:17 MIA M. GONZALEZ / REPORTER

NAGA CITY, Cebu—President Aquino on Monday inaugurated a 200-megawatt coal-fired power plant in this city, which he said would help the progressive province meet its rising power-supply demand.

Speaking at the inauguration of the Cebu circulating fluidized bed combustion plant of the Korean Electric Power Corp. (Kepco) SPC Power Corp., the President also defended the coal-fired power plant from critics, saying that while it runs on coal, it complies with the Clean Air Act and is “environment-friendly.”

“This power plant we are inaugurating today will make certain that the energy needs of our citizens in this part of the country are met. In Cebu, for example, where the economy’s continued growth is so evident, this power plant will help keep up with increasing demand,” he said.

The President noted that as Cebu’s export and tourism industry continues to thrive, “production capacities for your businesses will have to increase and the available accommodations for visitors will have to increase, as well. None of this is possible if you do not have enough electricity.”

He said that Cebu airport has reported a 20-percent increase in passenger arrivals from January to April 2011 compared WITH January to April 2010.

Apparently addressing environmental concerns that had earlier challenged the realization of the project, the President said that “while the power plant we are inaugurating today does not necessarily produce renewable energy, it does comply with the Clean Air Act and is very friendly to the environment, and is thus looking toward the same direction as we are with the NREP [National Renewable Energy Program].”

The President lauded Kepco “for taking into consideration the effects beneficial to the environment in doing their business.”

Responding to questions in an ambush interview after the event, the President said that the government, in supporting the project, strove to “balance” the concerns of environmental groups and the development needs of Cebu.

He said that the issue of coal dust emitted by the power plant is easier to address than the lack of power supply, which affects business and employment in Cebu.

“So would you rather have two to three years more of rotating brownouts during the summer months? I don’t think anybody would have wanted that,” he said.

The President also said that while the administration has launched a renewable-energy program, “it will take about 20 years before it becomes practical for all of us.”

Energy Secretary Jose Rene Almendras said in a separate interview that Kepco has “complied with the requirements” and that the “DENR [Department of Environment and Natural Resources] gave guidelines as to what kind of fly-ash treatment there should be, [and] Kepco will abide by it.”

Kepco SPC Power Corp. said in a press statement that the power plant is equipped with “cutting-edge pollution-control devices and monitoring systems.”

Kepco president Ssang-Su Kim, who thanked the President for his support for the project, said in his remarks that the company hopes to “increase our participation through possible investments in renewable-energy” projects in the country.

Mr. Aquino said that the time of uncertainty in power supply in the region “is over” largely due to the establishment of the Wholesale Electricity Spot Market (WESM) in the Visayas, which began commercial operations in December last year and “paved the way for the timely commissioning of new power plants as investors are now provided with opportunities to sell power at reasonable profits.”

“We now have 180 market players in the integrated Luzon and Visayas market, and the selling price in the WESM for both Luzon and Visayas reached a low P3.8 per kilowatt-hour (kWh)in April this year as opposed to the National Power Corp.’s regulated price of P4.67 per kWh. This measure has, likewise, increased investor interest in the region, and perhaps this is proven even further by today’s inauguration,” the President said.

Mr. Aquino also said that he received a report that “the full operation of power plants in the Visayas is more than enough to meet the peak demand of the region in 2011 while also meeting the required reserve margin.”

“Now, the Visayas can even afford to share excess power-generating capacity to Luzon, which speaks volumes, again, of the progress we have made,” he said.

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In Photo: President Aquino, accompanied by Cebu Rep. Eduardo Gullas, tours the power-plant facilities of the 200-megawatt Korean Electric Power Corp.-Salcon Power Corp. during the inauguration ceremony in barangay Colon, Naga City, Cebu, on Monday. .(Malacañang Photo Bureau)