TSI’s 150-megawatt plant enters initial commercial operations

Business World Online
Posted on August 11, 2015 08:22:00 PM

DAVAO CITY -- Therma South Inc.’s (TSI) first 150-megawatt (MW) unit is now supplying power to the Mindanao grid and will begin billing its customers this week, initially at less than half the contracted price.

A report from TSI indicates that the company, a subsidiary of Aboitiz Power Corp. (AboitizPower), will start charging P2 per kilowatt hour (/kWh), lower than the P5.50/kWh stipulated in the contracts, while full commercial operations are set for September.

TSI’s customers include about 20 cooperatives and sister firm Davao Light and Power Co. (Davao Light).

Davao Light Executive Vice-President Arturo M. Milan told BusinessWorld that the first unit of TSI’s 300-MW plant has been maximized, “although there were times when its power output was fluctuating.”

“Our situation has improved,” Mr. Milan said in a text message.

Mindanao’s power situation has been tight in the last three weeks due to the low supply from the government-run hydroelectric complexes in Agus, Lanao del Sur and Pulangi, Bukidnon, and aggravated by the scheduled shutdown of other sources such as the 105-MW unit of Steag State Power, Inc. in Misamis Oriental for preventive maintenance.

The Steag plant is set to resume operations in the middle of this month.

In the meantime, supply at the Mindanao grid as of yesterday remained short of peak demand with the deficit at 165 MW, based on the National Grid Corporation of the Philippine’s Web site.

Davao Light’s share from the grid went to as low as 160 MW last week from the contracted 279 MW.

The AboitizPower subsidiary, whose franchise area covers Davao City and parts of Davao del Norte province, has contracted bulk of the initial available power supply from TSI at 100 MW.

TSI, which is expanding the plant to a 645-MW capacity, faced delays in its operations following the April 5 Mindanao-wide blackout that damaged the other 150-MW unit, forcing the company to move its engagement to February next year.

In June, TSI started synchronizing the other 150-MW unit with the grid, but also faced difficulties due to the unstable power situation. -- Carmelito Q. Francisco source