By Lenie Lectura - June 7, 2018
SOUTH Korean firms want to explore
business opportunities in the power sector with investments amounting to $4.4
billion (P232.145 billion), the Department of Energy (DOE) said.
These firms are interested to put up
wind and solar-power facilities, coal-power plant and a hub for liquefied
natural gas (LNG).
SK Engineering & Construction,
an EPC contractor in the Philippines, submitted a proposal for a coal-fired
power plant and plans to expand its operations amounting to more than $2
billion in Quezon province.
As an EPC contractor, SK Engineering
will be involved in the design, procurement, construction and commissioning up
to the handover of the project to the end-user.
The power project in Quezon is
expected to create at least 3,000 jobs per year during the construction period,
and a total of 600 jobs per year during its operations, the DOE said.
SK E&S, a global clean-energy
and solutions provider, submitted a proposal for the construction of an LNG
terminal. It is willing to pour in $1.6 billion for the project, which is
projected to generate 2,200 jobs during the construction period.
SK E&S is engaged in the
business of power generation, district energy and city gas in both South Korea
and overseas.
The DOE is aiming to turn the
Philippines into a hub for LNG, amid a depletion of natural gas from the
Malampaya gas field in Palawan in less than a decade. Currently, around 3,500
megawatts (MW) of power-plant capacity is dependent on the country’s sole
natural-gas source.
LNG is natural gas that has been
converted into a liquid state for easier storage and transportation. Upon
reaching its destination, LNG is regasified so it can be distributed through
pipelines as natural gas.
Meanwhile, a solar-power facility
estimated to cost $500 million was proposed by BKS Energy Industry
Ltd. The renewable-energy project is projected to generate more or less
1,000 jobs per year.
Sy Enc Co. wants to put up a wind-power
generation project. The company plans to expand its operations amounting to
over $255 million in the Philippines, which is projected to generate 10,000
jobs.
These four firms submitted their
letters of intent during the Philippines-South Korea business forum and
luncheon, part of the activities included in President Duterte’s official visit
to the Republic of Korea.
“We welcome these investments,
especially as we anticipate the growth of our economy and expected demand due
to the government’s ‘Build, Build, Build’ program,” Energy Secretary Alfonso G.
Cusi said.
The other day, the agency said it is
working with another South Korean firm to explore the possibility of putting up
a 100-MW nuclear facility in Cagayan de Oro.
DOE Undersecretary Donato Marcos and
Assistant Secretary Gerardo Erquiza Jr. met with officials of Korea Hydro
and Nuclear Power (KHNP), led by its president Chung Jae Hoon. They
discussed energy-cooperation endeavors, including the possibility of conducting
a feasibility study on the establishment of a modular reactor in the Cagayan
Economic Zone Authority.
“We are expecting more South Korean
firms to express their interest in investing in Philippine energy projects. We
are hoping that this will result in a more robust energy sector for the
country, help our job generation efforts and boost our economy,” Cusi added.
Meanwhile, the agency highlighted
the importance of coal as a source of energy amid rising prices of petroleum
products.
“Coal is a fuel that is affordable
and available. It is utilized by the base load power plants in order to meet
the power requirements of the country,” DOE Undersecretary Felix William
Fuentebella said.
Fuentebella said the country could
not do without coal at current demand levels. He added the DOE expects new
coal-powered plants to “comply with environmental standards.”
Arnulfo Robles, executive director
of the Philippine Chamber of Coal Mines (Philcoal), stressed the importance of
coal, also used for cement manufacturing and other industrial uses, not just
power generation.
“Coal is indispensable for national
development. Even with the introduction of nonconventional energy sources, the
country, not to mention most Southeast Asian nations, continues to rely on coal
for its power needs,” Robles said.
He added, “It is undeniable that
coal gives reliable, stable, sufficient, affordable and dependable power supply
to drive economic growth of the country.”
Unknown to many, coal is also
currently being used in the production of commodities such as sardines, instant
noodles and processed foods. The use of cheaper coal (versus more expensive
sources such as bunker fuel) enables the price of these commodities to stay
significantly cheap and relatively stable.
As of end-2017, the Philippines had
a total installed capacity of 22,728 MW, of which coal has remained the
dominant energy source at 35.4 percent.
Coal-fired power plants had a total
installed capacity of 8,049 MW. Renewable energy sources followed closely at 7,079
MW or 31.1 percent of the total. Although, taken individually, only
hydroelectric power plants posted a double-digit share of the total, at 16
percent or 3,627 MW.
Oil-based energy sources made up
18.3 percent of the dependable capacity at 4,153 MW. Natural gas had a share of
15.2 percent, or 3,447 MW, as of end-2017.
The DOE said a total of
8,618.36 MW of capacity is expected to be added to the country’s power grid
from 2017 to 2025. Of this, coal will remain the dominant source of power with
an expected addition of 6,325 MW. Hydroelectric power is a distant second with
1,133.5 MW, followed by biomass with 240.46 MW.
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