300-MW Davao coal-fired plant operational by 2015–AboitizPower

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SUNDAY, 16 SEPTEMBER 2012 19:42 PAUL ANTHONY A. ISLA / REPORTER

LISTED Aboitiz Power Corp. (AboitizPower) is looking into bringing in an additional 300 megawatts (MW) of generating capacity in Mindanao by 2015, Bobby Orig, the company’s first vice president for Mindanao Affairs, told reporters in an interview.

The AboitizPower official said they hope to finish the 300-MW Davao coal-fired power plant by 2015.

Orig said the power plant is being put up by AboitizPower-subsidiary, AP Therma South Inc., which will use a circulating fluidized bed (CFB) coal technology.  He said the first phase or unit of the power plant is targeted to be completed by the last quarter of 2014 and the second unit or phase a year after.

Orig said AboitizPower is building the power plant on its own, and that it will fund the project using internally generated funds, adding that partnering with another company could delay the project as decision-making will have to be done by both parties.

“We decided to put up funding because the power crisis in Mindanao is getting so severe. We are determined to alleviate the situation. At present, we have not firmed up any supply agreement with any of the distribution utilities or electric cooperatives yet,” Orig said.

He added that the negotiations are ongoing, and that they do not see any problem in marketing the output in view of the power-supply shortage in Mindanao.

Orig said the project’s engineering, procurement and construction (EPC) contractor is Black & Veatch and Leighton Contractors (Philippines) Inc., adding that construction is in full swing.

While saying that the site of the 300-MW coal-fired power plant in Davao could still be expanded, Orig made it clear that they are not talking of expanding it yet.

“But if there’s a need, the group is open for expanding up to another 300 MW,” he said.

Orig earlier said even the new 300-MW Davao coal-fired plant, when operational, is still not enough to meet the projected shortfall of 484 MW in Mindanao by 2014. “There is still a need to build more power plants in the next few years,” he said.

According to the Department of Energy and other independent think tanks’ projections, power demand will exceed the supply in Mindanao as early as 2012—and the shortage will worsen if no power sources are added soon.

Mindanao’s heavy dependence on hydroelectric power is no longer enough to meet the needs of communities, businesses and industry.

“Government and independent think tank estimates project that the power shortage will be 484 MW by 2014, which means there is a need to build more power plants in the next few years. 484 MW is enough to cut power entirely to the cities of Davao, GenSan [General Santos], Butuan, CDO [Cagayan de Oro] and Zamboanga,” Orig said.    source