New coal plant in Cebu seen to go online by next month

Business World Online
Posted on September 16, 2014 10:24:00 PM

CEBU CITY -- A new coal plant is targeted to start commercial operations next month, augmenting the Visayas grid’s thin energy reserves.

The Visayas was again on yellow alert yesterday because of the emergency shutdown of the Naga power complex in Cebu and one unit of the Palinpinon geothermal plant in Negros Oriental as well as the reduced capacity of the Tongonan power plant in Leyte, a Department of Energy (DoE) official said.

“The Visayas is often on yellow alert because we don’t have enough reserves. As of today (Tuesday), we barely have enough dependable power supply,” said Jose Rey C. Maleza, Energy Industry Management Division supervisor of the DoE Visayas field office.

Based on the National Grid Corporation of the Philippines’ Web site, the Visayas was projected to have a peak demand of 1,495 megawatts (MW) yesterday. System capacity was reported at 1,589 MW, leaving a reserve of only 94 MW.

“Our supply could not cope with the growth in demand. A power plant takes at least three years to build, but investments with big power requirements are often unexpected,” Mr. Maleza said.

He said the Visayas is also projected to experience a shortage next year, but it “won’t be as critical as that of Luzon.”

New power generating projects in the Visayas include an 82-MW coal-fired facility that Metrobank unit Global Business Power Corp. and subsidiary Toledo Power Co. will switch on Friday in southwestern Cebu.

Mr. Maleza said another unit is being planned, but a construction schedule has not been finalized yet by Global.

“The new coal plant is under test commissioning now. They (Toledo Power) are targeting commercial operations by October,” Mr. Maleza said.

Toledo Power, one of five power generating companies under Global Business Power, currently operates a 60-MW coal plant and a 40-MW diesel-fired plant.

Another Global Business Power unit, the Cebu Energy Development Corp., operates three 82-MW coal plants in Toledo.

Another unit, Panay Energy Development Corp., has started civil works on a 150-MW coal plant in Iloilo City. Panay Energy currently operates two 82-MW generating units in Iloilo. -- Marites S. Villamor source