Published
January 25, 2017, 10:00 PM By Myrna M. Velasco
The power group of
conglomerate San Miguel Corporation (SMC) is offering to government the initial
150 megawatts capacity of its 600MW Limay power plant in Bataan to augment
supply during the Malampaya shutdown – and at a cheaper rate that could match
capacity produced from coal-fired generation facilities.
SMC President Ramon S.
Ang told reporters that the 150-megawatt first block of its Limay power
facility is utilizing diesel as commissioning fuel, but it intends to supply
the grid during the 20-day downtime of the Malampaya gas production facility on
the price of coal, which is currently at the level of P2.80 per kilowatt hour.
By the Department of
Energy’s (DOE) estimate, diesel-fired power facilities would likely be
supplying their capacities to the grid at P6.00 to P8.00 per kWh, but San
Miguel Global Power Holdings Corporation, dangles a more competitive option on
that anticipated tight supply period.
“Our unit 1 at Limay is
running on diesel… that can help during the Malampaya shutdown. It can produce
150MW, but the cost with its diesel commissioning fuel is more expensive. But
what we’re saying is, even if we are paid at the price of coal, that will be
okay with us,” Ang said.
He noted they are ready
to feed their capacity to the grid on the request of Energy Secretary Alfonso
G. Cusi who is scouring for solutions “to ensure that power supply during
Malampaya shutdown will not suffer shortages.”
Ang said their power
business group is currently in discussion with relevant government agencies on
this offer – primarily the DOE and the Energy Regulatory Commission (ERC) on
cost recovery mechanisms for the commissioning fuel.
The 600-MW Limay plant
of San Miguel has been designed as a coal plant utilizing circulating fluidized
bed (CFB) technology – and it will have four blocks of 150MW capacity each. The
first unit is expected to reach full commercial commissioning May this year;
while the second block around August; and the third and fourth blocks next
year.
“There are discussions
with DOE and ERC regarding Limay. I think what the government wants is cheaper
rates. It is our power group that has been in discussion with them,” Ang
stressed.
The Malampaya shutdown
will run from January 28 to February 16 this year; but Ang said they could also
help with buffer supply in case of technical glitches post-downtime of the gas
facility, hence, their supply offer would be good for 30 days.
Proposal of staggered
payments to diesel-fed power facilities is also a “welcome option” for the San
Miguel power group.
No comments:
Post a Comment