First Gen unit starts Batangas gas power plant operations

By Danessa Rivera (The Philippine Star) | Updated November 10, 2016 - 12:00am
http://www.philstar.com/business/2016/11/10/1642131/first-gen-unit-starts-batangas-gas-power-plant-operations

MANILA, Philippines – The 414-megawatt (MW) San Gabriel gas-fired power plant in Batangas has started commercial operations after Lopez-led First Gen Corp. obtained regulatory clearance, ensuring stable power supply in Luzon and Visayas.

First Gen said it has received a certificate of compliance (COC) from the Energy Regulatory Commission (ERC) for its San Gabriel power project, it disclosed to the local bourse yesterday.

The COC was granted to First Natgas Power Corp. (FNPC), First Gen’s wholly owned subsidiary which owns and operates the power plant.

The company said the COC’s formal release serves as proof the San Gabriel power plant has complied with all technical and financial requirements before a power generation company can commercially operate a plant.

Following the COC grant, Philippine Electricity Market Corp. (PEMC) has acknowledged the change in status of San Gabriel from testing and commissioning to commercial operation, which enables the power plant to sell its output in the Wholesale Electricity Spot Market (WESM), the country’s trading floor for buyers and sellers of electricity.

“As part of our commitment to develop competitively-priced and clean sources of energy, we are pleased to announce that the 414-MW San Gabriel power plant has obtained its certificate of compliance – the last pre-requisite to commerciality under the WESM,” First Gen president and COO Giles Puno said.

For the power plant, the firm tapped Siemens AG for its latest gas turbine technology, which enables a more stable and reliable grid amid increasing installations of intermittent renewable energy.

The San Gabriel flex-plant offers daily start/stop and fast start capability, as well as quick ramp up and ramp down of the power plant across a wide operating window – from low plant turndown to high plant output.

“The flex-plant is designed to provide baseload, mid-merit and peaking power dependent on the grid’s demand requirements. This project is vital to First Gen’s planned entry into the LNG (liquefied natural gas) supply business in preparation for the eventual depletion of natural gas from Malampaya,” Puno said.

San Gabriel runs on natural gas, considered the cleanest among fossil fuels. Operation of the plant results in carbon emissions that are 70 percent lower than the emissions from a coal-fired plant.