San Gabriel Power Plant ‘crucial’ for Luzon – Aquino

Natashya Gutierrez

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Between now and 2016, more companies are set to build in Luzon new plants, which will generate about 2,412 megawatts of power, the President says

CRUCIAL PLANT. President Benigno Aquino III says the 414-megawatt in San Gabriel power plant will be a crucial source of energy in Luzon. Malacañang Photo Bureau

MANILA, Philippines – President Benigno Aquino III led the groundbreaking rites for what is expected to be one of the country’s major natural gas plants: the San Gabriel Power Plant in Batangas City.

The President called the 414-megawatt (MW) project a source of “a steady supply of energy” while making “more efficient use of fossil fuels.”

“This plant will be crucial to our country’s fortunes. By 2016, we expect that the Luzon grid’s energy demand will have risen to around 11,000 megawatts from the present demand of 10,294 megawatts,” Aquino said on Tuesday, January 14.

He said the goal of his administration is “not simply to meet demand, but to surpass it,” and to have a “safe surplus of generating capacity.” This lesson, he said, was emphasized by Super Typhoon Yolanda (international name Haiyan), which caused a massive power shortage in the Visayas.

“Yolanda most prominently impaired major geothermal power plants in Leyte. The combined generation capacity of the plants went from 482 megawatts to zero, which resulted in a power deficit in the region. This had a ripple effect, which hampered recovery efforts,” he said.

But along with the power generation, Aquino, who was accompanied to the event by Energy Secretary Jericho Petilla, said Yolanda has forced the government to also look at the effects of various sources of power on the environment.

He vowed to move towards a more efficient form of energy – with natural gas at the forefront of these efforts.

“Natural gas plants emit only half as much carbon compared to coal-powered power plants. This means cleaner energy; it means that despite our status as a less-industrialized nation, we are doing our part to not exacerbate the risks posed by climate change,” he said.

The power plant is a project of the Lopez-controlled First Gen Corporation – its 3rd natural gas plant. First Gen, which has an installed capacity of 2,763 MW, will finance construction through loans and the proceeds of a $300-million bond offering.

It is said to cost about P28.48 billion.

Investments

Aquino said between now and 2016, more companies are set to build in Luzon new plants, which will generate about 2,412 MW of power – including the 414 MW from the San Gabriel plant. He said investors are also set to meet power demands in the Visayas and Mindanao in the coming years.

The President said he hopes this newest natural gas plant “will help convince those in regasification to finally set up shop in the Philippines.”

“We are hopeful that this will happen sooner rather than later. After all, natural gas demand is growing. We expect that from now to 2030, its share in our total primary energy supply will go from 8% to 14%,” he said.
Additonally, Aquino said the plant will help the country sustain its economic growth, by ensuring adequate power which could, in turn, convince investors to set up businesses in the country.

“We must continue doing our utmost to be able to tell investors: If you decide to set up shop in the Philippines, an adequate energy supply for your factories and facilities will be as low as possible on your list of things to worry about,” he said.

He added, “Having adequate energy infrastructure makes it easier for businesses here to stay and expand – and for new businesses to decide to invest heavily in the Philippines.”

Aquino praised the project and its administration’s plan to guarantee sufficient energy for the Philippines as a “symbol of our country’s impending success” that empowers the Filipino people.

First Gen aims to start initial commercial operations by 2016. – Rappler.com

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Natashya Gutierrez

Natashya is President of Rappler. Among the pioneers of Rappler, she is an award-winning multimedia journalist and was also former editor-in-chief of Vice News Asia-Pacific. Gutierrez was named one of the World Economic Forum’s Young Global Leaders for 2023.