Panay Energy assures stable supply despite Semirara pit shutdown

Business World Online
Posted on July 27, 2015 11:18:00 PM
By Louine Hope Conserva, Correspondent

ILOILO CITY -- Panay Energy Development Corp. (PEDC), which operates a two-unit coal-fired plant here with a combined capacity of 164 megawatts (MW), has given assurances that its power supply will remain stable despite the closure of the Semirara Panian open pit, from which it sources at least 50% of its coal.

PEDC, a Global Business Power Corp. (GBP) subsidiary, is also currently building a third coal plant with a 150-MW capacity that is scheduled for completion by July 2016.

Engineer Petronilo R. Madrid, PEDC vice-president for Panay operations, said the company has alternative suppliers from Indonesia and assured that the imported coal will not translate to higher power rates.

“We have contingency plans and we have diversified coal suppliers. We have three to four suppliers from Indonesia. So we are confident that PEDC will run continuously,” said Mr. Madrid.

He added that Semirara Mining and Power Corp. (SMPC), which has been ordered to stop mining operations following the collapse of a portion of the Panian pit where nine miners died on July 17, still has reserves to meet the contracted delivery for the next two weeks.

“DoE (Department of Energy) stopped the mining, but not the unloading of coal. Semirara even has scheduled delivery next week or week after next. Nonetheless, we have coals coming from Indonesia,” the PEDC official said.

PEDC buys 250,000 to 300,000 metric tons of coal from SMPC annually since 2011.

PEDC’s key customers are the Panay Electric Company, Inc., Aklan Electric Cooperative, Inc., and the Iloilo II Electric Cooperative, Inc.

Mr. Madrid also said PEDC maintains its own coal stocks that should cover demand for a month.

“Our supply in the yard is good for one month of continuous operation in case of typhoon and there will be no delivery from our supplier,” he said.

GBP, a member of the GT Capital Holdings Group, owns nine power generation facilities in the Visayas and Mindoro Island with a combined gross capacity of 625 MW.

The Iloilo plant is its second biggest after the 246 MW clean coal-fired power plant in Toledo City, Cebu. source