Korean electric firm eyes another coal-fired plant in Cebu

Korean electric firm eyes another coal-fired plant in Cebu
The Korea Electric Power Corporation says the second coal power plant to be put up in the province is already in its feasibility stage

MANILA, Philippines – The Korea Electric Power Corporation (Kepco) of South Korea is eyeing to build another coal-fired power plant in Naga, Cebu.

Kepco Philippines President and Chief Executive Officer Hyang-Reol Lyu said the firm will partner with SPC Power Corporation for a 300 megawatt (MW) power plant in Naga, Cebu.

“It is currently in the feasibility stage. In September this year, it will be completed. We will do the bidding for the construction after that,” Lyu said.

The partnership is not new. In 2011, Kepco and SPC apartnered for a 200 MW clean coal power plant at Barangay Colon in Naga City, Cebu. The power facility was meant to augment the power supply in the Visayan grid.

Lyu said the upcoming power facility in Naga will be built with SPC on a 60:40 ownership structure.

In 2014, SPC won the bid to privatize the 153.1 MW Naga power plant for P1.14 billion ($25.67 million).

It is also pursuing an earlier plan to put up a coal-fired power plant in Subic, the head of its local unit said.

Meanwhile, Kepco Philippines also has plans to build a 200 MW coal-fired power plant in Subic, Zambales. The plan requires a local partner as well, Lyu said.

Lyu, however, did not provide details except that the planned Subic power facility “should be bigger” than the Naga project.

“We are thinking of coal. There will be another partner,” said the Kepco official.

Back in 2011, a memorandum of understanding (MOU) for the plan was signed between the Philippine and Korean governments.

Under the MOU, a coal-fed facility would be put up within the Subic ecozone to serve the electricity requirements of Hanjin Heavy Industries and Construction Limited-Philippines Incorporated, reportedly the biggest locator in the freeport. No developments were undertaken since.

Apart from the 200-MW circulating fluidized bed combustion facility in Naga, Cebu, Kepco also owns and operates the 1,200-MW Ilijan combined-cycle natural gas power plant in Batangas. – Rappler.com

US$1 = P44.40

Image from Kepco Philippines website

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