Cusi assures conversion of Malaya power plant

June 4, 2018 | 10:08 pm  By Victor V. Saulon Sub-Editor

http://bworldonline.com/cusi-assures-conversion-of-malaya-power-plant/

THE Department of Energy (DoE) has not abandoned its plan to convert the 650-megawatt (MW) thermal Malaya power plant in Pililla, Rizal, into a gas-fired facility after its upcoming turnover to a new operations and maintenance service contractor.

“We just want to make sure that it continues to run until such time na meron na tayong (that we have) replacement,” Energy Secretary Alfonso G. Cusi told reporters.

“We want that to be converted. Of course, we’re looking at LNG (liquefied natural gas) as the transition fuel,” he added.

The Malaya power plant is being managed by state-led Power Sector Assets and Liabilities Management Corp. (PSALM) through an operation and maintenance service contract.

The current operator of the power plant is STX Marine Service Co. Ltd. whose contract will expire on Aug. 24 this year. It was rehabilitated in 1995 by Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.

The plant was designated in 2014 as a “must-run” unit by the DoE. A must-run plant is compelled to run and provide the needed power as deemed necessary to ensure reliability of supply in the Luzon grid, especially in times of power shortfall, system security and voltage support.

Last month, PSALM bid out the operation and maintenance service contract of the plant. Mindoro Grid Corp. submitted the lowest bid of P227,040,000 and beating out the P258,720,000 offer of Soosan ENS Co., Ltd.

Part of the responsibilities under the service contract include the day-to-day upkeep, management and maintenance or repair of the power plant and its equipment, PSALM said.

Mr. Cusi said for now, what the DoE wanted is for the plant’s power capacity to be readily available. He said should the oil-fired power plant be converted using another fuel source, he wanted it to be gas.

“I don’t want it anymore to be oil,” he said.

Mr. Cusi’s preference for gas comes despite his previous pronouncements that the DoE under his helm would be “technology-neutral.” He had said power security and cost matter more.

The Philippines imports most of its oil requirements. Its gas supply comes largely from the Malampaya offshore gas find, which is expected to be depleted starting in 2024.

Mr. Cusi had said his policy was “all of the above technologies” working together to deliver secure and affordable power while meeting the country’s emission reduction commitments.

The DoE expects additional required capacity by 2030 to reach 17,338 MW to meet the country’s growth needs. This requirement is expected to hit 43,765 MW by 2040.

As of end-2017, the country has an installed capacity of 22,728 MW, of which coal has remained the dominant energy source with a share of 35.4%. Oil-based energy sources made up 18.3% while natural gas had a share of 15.2%.