Calaca expansion requires transmission upgrade

Manila Bulletin
By MYRNA M. VELASCO
January 3, 2012, 8:00am


MANILA, Philippines — The planned expansion of the 600-megawatt Calaca coal-fired power facility will warrant upgrade of transmission facilities to ensure smooth wheeling of the added capacity to the load networks, especially to Metro Manila.


The project blueprint drawn up by owner Sem-Calaca Power calls for the expansion of the privatized facility by another 600 megawatts, comprising of four units which will have 150-MW capacity each.


Based on document, the National Grid Corporation of the Philippines (NGCP) indicated that it will have to line up additional investments for the expansion of the Calaca substation as well as an uprating of the New Calaca-Dasmariñas 230-kilovolt (kV) transmission line.


Apart from the expansion of the Calaca plant, the upgraded transmission facilities shall also underpin the proposed 270-megawatt Puting Bato coal plant of Trans-Asia Oil and Energy Development Corporation. It will be a two-unit generation plant with 135-MW capacity each, targeted to be on stream between 2013 to 2015.


“This project was triggered by the proposed expansion of the Calaca coal plant and Trans-Asia’s Putting Bato coal plant within 2013-2015,” NGCP stressed.


The concessionaire firm noted that since the transmission uprating venture has not been included in its capital expenditure (capex) program under its ongoing regulatory reset, it may need to file a separate application for project funding with the Energy Regulatory Commission (ERC).


Under established rules, regulated power utilities like the NGCP, shall seek regulatory approvals on their capex allocations before any project can be implemented because such costs will eventually be passed on in the consumers’ electric bills.


When the Calaca plant was privatized by the Power Sector Assets and Liabilities Management Corporation (PSALM), the commitment of the buyer does not only include uprating the capacity of the existing units, but also to expand the plant at a magnitude that will double its installed capacity.


Meanwhile, the Trans-Asia coal project shall be pursued in partnership with Ayala group’s power arm AC Energy Holdings Inc. The facility will command a total investment of P12 billion.


The expansion of the Calaca facility as well as the greenfield plant of the Trans-Asia and Ayala venture will prop capacity in the Luzon grid, especially during the critical periods of 2015 and 2016.


The only firm capacity addition for the Luzon grid will be the 600-MW plant of GNPower by 2013. Most of the power projects lined up are still either struggling with securing financing or in ensuring public acceptance on the siting of the facilities.