Transmission biggest hurdle for mine-mouth coal plants

Manila Bulletin
Published November 22, 2016, 10:01 PM
By Myrna M. Velasco

Setting up of transmission facilities to wheel generation output is the major dilemma hobbling development of mine-mouth coal power facilities in the country, according to industry players.

Arnulfo A. Robles, executive director of the Philippine Chamber of Coal Mines, Inc. (Philcoal) noted that given site-specific development nature of mine-mouth plants, setting up of transmission lines has always been a problem because the coal mines are also usually located in remote areas.

“The problem on transmission for mine-mouth plants is just being given focused at this time,” he stressed, adding that they have yet to see that such shall really be integrated into the Transmission Development Plan (TDP) of the energy sector.

Robles emphasized that beyond the transmission of generated electricity, mine-mouth coal plants have some inherent benefits – such as cutting cost on logistics aside from value-added proposition that the country’s lignite coal reserves could be utilized to meet part of its energy requirements.

There are several mine-mouth power facilities that had been cast on blueprint by the Philippine National Oil Company-Exploration Corporation (PNOC-EC) and the Semirara Mining and Power Corporation – but have been hurdled on development phases due to cost and connection facility concerns.

“For mine-mouth, basically we’re trying to remove the transport cost, because if the plant is separate from the mine site, there’s handling that will add up to the cost of coal… and that basically reduces the cost for coal which is fuel for the power plant,” Robles explained.

The coal chamber executive specified that in the PNOC-EC mine-mouth projects, what transpired were actually “problems on their financial study… and second had been on social acceptability.”

Basically, he noted that in all mine-mouth power projects, financial viability and social issues are the major stumbling blocks – then such shall eventually be factored in into the end-cost of electricity that will be passed on to the consumers.

Former PNOC-EC President Rufino B. Bomasang noted that “only through a mine-mouth power plant that you are able to develop existing low-rank lignites.” Lignite is often referred to as “lowest rank coal” mainly due to their relatively low heat content.

Bomasang reiterated that coal mining in the Philippines will only turn out viable if there are power plants sited proximate to it that will utilize the output.

“Otherwise, if you do not put up these mine-mouth power plants, these available resources will never be developed,” he said.