DoE grants 9 firms certificates of endorsement for power projects

By: Amy R. Remo
Philippine Daily Inquirer
1:36 pm | Wednesday, October 19th, 2011


MANILA, Philippines—The Department of Energy has already granted nine companies certificates of endorsement (COE), a requirement for the operation of proposed, existing or newly built power generation facilities.
Data from the DoE showed that as of the end-August in 2010, it awarded the COEs to Masinloc Power Partners Co. Ltd., SMI Power Corp., Sunwest Water and Electric Co., King Energy Corp., Trans-Asia Oil and Energy Development Corp., Unisan Biomass Corp., Udenna Corp., Hacienda Bio-Energy and Petron Corp.
Securing a COE was crucial since it was a requirement for a company to be given a certificate of compliance (COC) for their power generation facilities. Issued by the Energy Regulatory Commission, the COC, in turn, would allow a power generation firm to either start or continue operating the facilities.
Valid for five years, a COC would ensure that a power plant will not compromise the health and safety of communities where it operates. It also assures public that the owner of the power plant will strictly adhere to the cross-ownership and market share limitations stated in the Electric Power Industry Reform Act (Epira) to prevent market power abuse.
Masinloc Power’s COE was meant for its existing 600-megawatt coal-fired in Zambales, while that of SMI Power was for a new 500-MW coal-fired power plant in Davao Del Sur.
King Energy’s COE was also for a new 3.2-MW diesel facility in Bukidnon, which is expected to be commissioned later this month, while the COE of Suweco was for its existing 1.5-MW and 2.1-MW hydropower facilities, both in Catanduanes.
Trans-Asia Oil needed the COE for its proposed 135-megawatt coal-fired power plant in Calaca, Batangas. The clean coal power facility, which would be Trans-Asia Oil’s first base-load plant to support its electricity supply business, was earlier estimated to cost P8.5 billion and is targeted to be completed by 2014. Electricity to be generated from the coal facility will be sold to the Luzon grid and the wholesale electricity spot market.
Unisan Biomass, meanwhile, will need the COE for its 11.2-MW biomass facility in Quezon province. Power produced from the power plant, which was earlier estimated to cost around $36 million, will provide the requirements of the Quezon Electric Cooperative.
Udenna, the holding company of Phoenix Petroleum Holdings Inc. and Udenna Management and Resources Corp., are currently managing the existing 116-MW diesel-fired power plant located at the Subic Gateway District within the Subic Bay Freeport Zone.
DoE data also showed that the COE of Hacienda Bio-Energy would be used for its 125-kilowatt biomass facility in Bukidnon.
As for Petron, its planned P10-billion 70-MW fuel-fired facility within the company’s refinery compound in Limay, Bataan, is expected to improve the reliability, sourcing flexibility and cost efficiency of the refinery to meet Petron’s growing steam and power requirements. The facility is expected to start running by 2012.