MERALCO PowerGen Corp. (MGen), the power generation arm of Manila Electric Co. (MERALCO), has outlined a USD 2 billion investment plan to develop two coal-fired power facilities in Cebu and Quezon.
In a report by the Philippine Star, MGen President and CEO Emmanuel Rubio revealed that four local banks and two Indonesian lenders have expressed interest in financing the 1,200-megawatt (MW) Atimonan plant in Quezon and the 80-MW Toledo project in Cebu.
Rubio estimated an investment of approximately $1.6 million per MW, amounting to a total capital outlay of $2 billion for the combined 1,280 MW capacity of the two plants. Both projects have obtained environmental compliance certificates from the Department of Environment and Natural Resources (DENR).
MGen is currently analyzing the projects’ viability and competitiveness. If deemed feasible, the company aims to secure board approval by February next year and subsequently proceed with a competitive selection process (CSP).
Once approved by the board, the projects will move forward with feasibility studies and engineering preparations. MGen is currently in discussions with prospective contractors and equipment suppliers for the projects.
Rubio noted that two potential candidates are being considered for the Atimonan project, while Formosa Heavy Industries, the original supplier, is under review for the Toledo project.
The development of these coal plants hinges on government clearance confirming their exemption from the coal moratorium implemented by the Department of Energy (DOE) in 2020. The moratorium restricts new coal facility applications but does not apply to operational plants or projects with substantial progress and approved local clearances.
Rubio highlighted that the Atimonan project is already on the DOE’s committed project list, while the 82-MW coal plant under MGen’s Toledo Power Corp. previously received permits to construct additional units.
MGen’s existing coal portfolio includes San Buenaventura Power Ltd. Co.’s 500 MW in Mauban, Quezon; Cebu Energy Development Corp.’s 246 MW in Toledo, Cebu; and Panay Energy Development Corp.’s 164 MW and 150 MW in Iloilo City.
Including its liquefied natural gas, diesel, and solar power assets, MGen has a total gross generation capacity of 2,425 MW, capable of meeting baseload, intermediate, peak load, and ancillary power needs.
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