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San Miguel to expand power facilities in Luzon, Mindanao

Rappler.com

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With an installed capacity of 2,545 MW, SMC is one of the largest independent power generation companies in the country

File photo of a worker repairing electrical lines in Iligan City, Mindanao. Photo by John Javellana/ Rappler

MANILA, Philippines – San Miguel Corporation (SMC) announced plans to increase the capacity of power facilities it will put up in Luzon and Mindanao, a move that is expected to increase the power reserves in the regions.

SMC unit San Miguel Consolidated Power Corporation (SMCP) will increase the energy capacity of its planned coal facility, Limay Power Plant, in Brgy Lamao, Limay, Bataan from 600 to 900 megawatts (MW) for Luzon.

SMC’s Limay Power Plant Project consists of 3 phases. Phase 1 will involve the construction of 2 power plants with 150 MW capacity each. The first unit is set to be completed by February 2016, the other unit by July of the same year.

Phase 2 will involve 2 power plants with 300 MW total capacity. The first unit will be put up by January 2017 while the second will be commissioned 6 months later, in July 2017.

Based on the Private Sector Initiated Power Projects report in December 2013 by the Department of Energy (DOE), a additional 300-MW power plant is part of the phase 3 of the project and will be commissioned between 2019 and 2020.

SMC had completed the feasibility study for the plants.

Power in Mindanao

SMCP plans to build a 1,200-MW coal power plant at Barangay Culaman, Malita, Davao del Sur for Mindanao. The entire project is targeted to be completed by 2020.

SMC said its goal is to ease the worsening power supply crisis in the electricity-starved island through this project. Insufficient power generating capacity is seen as the culprit behind intermittent power outages in Mindanao.

The company already broke ground for the first phase of its 300-MW SMC Davao Power Plant Project in July 2013. The first 150-MW unit will be start generating electricity in October 2015 while the second 150-MW unit is scheduled for March 2016.

Phase 2 involves another 300-MW project to be commissioned in December 2018, while phase 3 of the project involves putting up two 300-MW power plants – the first scheduled for commission in December 2019 and the second a year after.

SMC is currently in the process of negotiating for financing arrangements for the first phase of the project expected to cost around P25.8 billion. The company is also in talks with prospective off-takers for electric power supply contracts.

Land acquisition for the second and third phases has been completed. SMC is currently securing the necessary permits and other regulatory requirements, and setting negotiations for financing arrangements.

With an installed capacity of 2,545 MW, SMC is one of the largest independent power generation companies in the country. As of 2012, the conglomerate had 23% share of the Luzon grid and 17% market share of the power supply in the national grid.

In the long run, SMC targets to install a total of 3,000 MW new capacity with new power plants based on clean coal technology. – Rappler.com

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