Aboitiz unit’s 300-MW coal-fired plant nearly complete, testing soon

Business World Online
Posted on October 20, 2014 10:43:00 PM

DAVAO CITY -- Therma South, Inc.’s (TSI) 300-megawatt (MW) coal-fired power plant was more than 90% complete as of the end of September and will soon be ready for a test run.

“Testing and commissioning is expected to commence in the next few months so operations are still on schedule for the first half of 2015,” said Benjamin A. Cariaso, Jr., president of TSI, a subsidiary of Aboitiz Power Corp.

The switchyard components that will connect the plant to the transmission system of the National Grid Corporation of the Philippines have also been acquired, he added.

Twenty-two distribution utilities and electric cooperatives in Mindanao have signed power supply contracts with TSI as of September, of which 13 have been approved by the Energy Regulatory Commission.

Electricity distributors with approved contracts can immediately source power from the plant, located on the boundary of Davao City and Sta. Cruz town, once it is operational.

“We are looking forward to the completion of this project and together with our customers, we are looking forward to being able to make a significant contribution in alleviating the Mindanao power crisis,” Mr. Cariaso said.

TSI sister-firm Davao Light and Power Co. is the top buyer at 100 MW in anticipation of the operations of new establishments such as malls and new commercial business districts.

Among the areas that will be served by the power plant are the major cities of Davao, Cagayan de Oro, Cotabato, Butuan, General Santos, Tagum and Kidapawan, as well as parts of the Agusan and Surigao provinces, the Davao Region, North and South Cotabato, Sarangani, the Misamis provinces, the Zamboanga provinces and Bukidnon.

“The additional power from the plant will provide excess power supply for the grid but the distribution grids should make sure they contract the projected supply to ensure sustainable power in their areas,” said Bryan Diosma, technical officer of the Mindanao Power Monitoring Committee.

Vicente T. Lao, chairman of the Mindanao Business Council, previously projected that Mindanao will need an additional power supply of at least 1,000 MW in the next 10 years and another 1,500 MW from 2021-2030 in view of the growing economy.

Even before the TSI coal-fired plant’s completion, the company was drafting plans to increase its capacity by another 345 MW. -- Carmencita A. Carillo and Carmelito Q. Francisco   source