$2.5-B Investments
October 30, 2012, 6:00pm
The power generation subsidiary of Manila Electric Company (Meralco) is lining up $2.5 billion worth of investments to put on stream at least two coal-fired power projects of 600-megawatt capacity that may help meet its long-term electricity requirements.
Meralco President Oscar S. Reyes has noted that a coal-fired plant of that scale may cost $1.2 billion to $1.3 billion; and the total for the two facilities may reach $2.5 billion.
“That will be total project cost, $2.5 billion. The cost of building a coal plant would range from $2.0-$2.5 million per megawatt,” he explained.
That investment line-up already includes Meralco PowerGen’s coal-fired plant in Subic which is currently awaiting the issuance of its environmental compliance certificate (ECC) for the second 300MW unit.
The two coal-fired plants, he added, will account for less than half of their planned 2,700 megawatts of total capacity developments until 2021.
The coal-fed generation plant will be in the priority project development plan of Meralco PowerGen because this will address its parent utility firm’s requirements for baseload capacity.
The next round of capital outlay for projects will center on its aspiration to integrate liquefied natural gas (LNG) facilities into its power mix.
The company has signed deals for parallel studies with at least two proponents: Shell Philippines and Japanese firm Chubu Electric.
The choice of eventual partner for the venture, Reyes said, “will be driven by which (proponent) is more robust and which is more competitive.”
He indicated that their proposed LNG facility should have a total installed capacity of 1,500 megawatts so it will thrive economically viable, and the resulting electricity rates to consumers will be affordable.
“It will be four blocks of 375MW each unit,” he said; noting that every phase of project development could be at a capacity of 750MW.
The costs for the planned LNG facilities are still being re-evaluated by the company. Primordial concern being weighed on this technology option would be the gas supply as well as the underpinning infrastructure, such as the re-gas terminals.
Reyes noted they may just choose one partner for LNG development; or they can have two but the timing of implementation will be one after the other.
Shell and Chubu Electric are currently working on feasibility studies that will evaluate the viability of LNG facilities for Luzon grid’s power supply. (MMV) source
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