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.
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