Global Business Power to rehab 60-MW Toledo power plant

Business World Online
Posted on September 19, 2014 06:04:00 PM

TOLEDO CITY, CEBU -- To help address the projected supply deficit in the Visayas grid next year, independent power producer Global Business Power Corp. (GBP) will rehabilitate an aging coal-fired plant as soon as its new P10.2-billion generating unit starts commercial operations in December.

Rehabilitation of TPC 1, a 60-megawatt coal-fired plant that was built in the sixties to power the copper mines of Atlas Consolidated Mining and Development Corp., is targeted for completion in March, requiring about P400 million, GBP Executive Vice President Jaime T. Azurin said in a press conference after the switch-on ceremony Friday of the new 82-MW coal plant.

“The plan is that TPC 1 (will be rehabilitated) when TPC 1A comes online,” GBP Chairman Francisco C. Sebastian added. Both facilities are run by GBP subsidiary Toledo Power Corp. (TPC).

The new 82-MW TPC 1A, which uses the circulating fluidized bed technology, is undergoing test commissioning. It will power the expansion of Atlas Mining subsidiary Carmen Copper Corp. starting December and supply Cebu Electric Cooperative (Cebeco 3) starting February, Mr. Azurin said.

Carmen Copper will get about 70%, or 55 MW, of the new plant’s capacity for the next 15-20 years while Cebeco 3 will receive 17 MW under a 25-year contract.

Mr. Sebastian said the completion of the new plant will allow Toledo Power to again supply the power requirement of the copper mines here. The old Toledo Power plant was built for the mines in the 1960s until its closure in the 1990s.

Adrian Paulino S. Ramos, Carmen Copper executive vice president, said that with the new coal plant, plans to expand Carmen Copper’s ore production capacity will be realized.

“The plan was really to increase capacity from 40,000 tons to 60,000 tons a day. This new power plant will ensure that we have the power requirements for the foreseeable future,” he said in an interview at the sidelines of the switch-on ceremony.

Meanwhile, Mr. Azurin said the company is looking at supplying 20 MW to 30 MW to the Visayan Electric Co., Inc. (Veco), exclusive distribution utility in Metro Cebu, from the rehabilitated TPC 1 coal plant.

“(Veco) have been asking if we can deliver by March (2015),” Mr. Azurin said.

The old coal plant will have a dependable capacity of 60 MW upon rehabilitation, providing additional support to the Visayas grid and lessening the risk of power outages by next year’s dry season.

GBP, a unit of the Metrobank Group, is the biggest power producer in the Visayas with over 700 MW in installed capacity. It is also building a 150-MW coal plant in Iloilo City through subsidiary Panay Energy Development Corp. (PEDC) and undertaking studies for a 42-MW bagasse-fired plant in Negros Occidental under a joint venture with Roxas Holdings, Inc.

GBP is 22% owned by Meralco PowerGen Corp. (MGen). -- Marites S. Villamor source