Meralco power unit eyes wind project

Business World Online

Posted on March 05, 2012 10:28:53 PM

BY EMILIA NARNI J. DAVID, Reporter

THE POWER generation arm of Manila Electric Co. (Meralco) is shifting its gaze to a wind power project as well as state auctions as it decides to defer plans for a peaking plant.

Windmills in Ilocos Norte are seen from a vantage point. A Manila Electric Co. unit said it wants to invest in a similar project of its own. -- www.wikipedia.org

“We are in discussions for our potential involvement as an investor in a feasible wind facility in Luzon. We are looking at renewable energy as a possible source for energy,” Meralco PowerGen Corp. President Oscar S. Reyes toldBusinessWorld in an interview.

He added the company is also interested in biomass facilities.

As a distribution utility, Meralco already sources some power from renewable energy facilities like biomass and has already signed an interconnection agreement with a planned 90-megawatt (MW) wind facility.

The firm is also in the process of discussions to build another 600-MW coal plant but is still deciding on the configuration of the plant.

Meralco bared plans to enter power generation in 2010, citing interest in putting up a 300-MW peaking power plant when it first announced its foray beyond distribution.

The peaking plant had been envisioned to be ready in Laguna by 2013 and fueled by aero derivatives.

However, Mr. Reyes said the company has decided to put off building a peaking plant.

“We are still interested in peaking plants because our goal is to have a mix of baseload, mid-merit and peaking plants. However we looked at the cost of the fuel, with the oil prices now, the likelihood of an economic dispatch at the levels required was going to be challenging,” said Mr. Reyes.

“Other options for the plant are being explored now so there is no timeline yet,” he added.

The company is also interested in participating in the bidding for the government’s remaining power assets.

“We’re open to privatization [of the government’s assets]. Our thrust is adding new capacity, we want to be able to bring new capacity that really brings capacity in growth and demand but if there are attractive options in terms of privatization which may address certain niches or gaps in our overall portfolio, we would be prepared,” said Mr. Reyes.

Meralco PowerGen said it would be interested in bidding for hydroelectric power plants or geothermal plants that will be auctioned off by the government and is interested in bidding for plants outside of Luzon.

The government still has to privatize the 145-MW Casecnan hydroelectric power plant in Nueva Ecija and the 782-MW Caliraya-Botocan-Kalayaan hydropower plant in Laguna.

Meralco ended 2011 with a 22.5% growth in its core net income to P14.9 billion.

Shares of Meralco closed at P266.40 yesterday, up 0.53% from its previous close.