By Jenniffer B. Austria | Posted on Sep. 02, 2013 at 12:02am
Manila Electric Co. Inc. plans to increase its power generation business to 3,000 megawatts by 2020 to meet the rising power demand on the back of rapid economic growth which reached 7.5 percent in the second quarter.
“If demand really grows then we have to keep pace,” Reyes said.
Meralco chief executive Oscar Reyes said the company might revise upward its original target for power generation from 2,700 MW to 3,000 MW to ensure adequate supply of electricity in Luzon.
“You’ve seen growth at the 7.5-percent range in the past two quarters. It is best that we ensure the country especially the electric power industry is not surprised by the growth trajectory that outstrips our supply situation,” he added.
Reyes said there was also a possibility that electricity rates could go up, if power supply was sourced from high cost oil-fired power plants such as Malaya, Limay, Bauan and the Navotas barges.
“These power plants run on diesel or bunker. These fuel costs alone are higher than coal,” he said.
Meralco announced last week it struck a deal with Electricity Generating Public Co. Ltd. of Thailand to build a new 460-megawatt coal-fired power plant in Quezon province that would help avert the power shortage in Luzon in the coming years.
Meralco PowerGen Corp., the power generation arm of Meralco, signed a joint development agreement with New Growth B.V., a subsidiary of Egco for the construction of the new 460-MW supercritical coal-fired power plant, as a part of the expansion of the Quezon power project.
Reyes said the proposed coal-fired power plant might cost slightly higher than the $1.5 million to $2 million per MW, which was the usual cost of coal-fired power plant, because it would employ a new technology.
Meralco targets to have the power plant operational by 2017.
Egco has been negotiating with Meralco for a joint venture agreement for the planned expansion of the existing 460-MW coal-fired power plant in Quezon since last year. The Quezon Power plant supplies power to Meralco.
Egco now controls 98 percent of Quezon Power Philippines Ltd., the plant’s corporate vehicle, after acquiring an additional 45.875 percent from Intergen for $375 million. The remaining 2 percent is held by PMR Ltd. source
Meralco chief executive Oscar Reyes said the company might revise upward its original target for power generation from 2,700 MW to 3,000 MW to ensure adequate supply of electricity in Luzon.
“You’ve seen growth at the 7.5-percent range in the past two quarters. It is best that we ensure the country especially the electric power industry is not surprised by the growth trajectory that outstrips our supply situation,” he added.
Reyes said there was also a possibility that electricity rates could go up, if power supply was sourced from high cost oil-fired power plants such as Malaya, Limay, Bauan and the Navotas barges.
“These power plants run on diesel or bunker. These fuel costs alone are higher than coal,” he said.
Meralco announced last week it struck a deal with Electricity Generating Public Co. Ltd. of Thailand to build a new 460-megawatt coal-fired power plant in Quezon province that would help avert the power shortage in Luzon in the coming years.
Meralco PowerGen Corp., the power generation arm of Meralco, signed a joint development agreement with New Growth B.V., a subsidiary of Egco for the construction of the new 460-MW supercritical coal-fired power plant, as a part of the expansion of the Quezon power project.
Reyes said the proposed coal-fired power plant might cost slightly higher than the $1.5 million to $2 million per MW, which was the usual cost of coal-fired power plant, because it would employ a new technology.
Meralco targets to have the power plant operational by 2017.
Egco has been negotiating with Meralco for a joint venture agreement for the planned expansion of the existing 460-MW coal-fired power plant in Quezon since last year. The Quezon Power plant supplies power to Meralco.
Egco now controls 98 percent of Quezon Power Philippines Ltd., the plant’s corporate vehicle, after acquiring an additional 45.875 percent from Intergen for $375 million. The remaining 2 percent is held by PMR Ltd. source
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