AC Energy building 550MW in diesel plants?

Japan’s TEPCO to build a solar – diesel plant in Catanduanes

AC Energy may be putting up diesel power plants in Luzon with a combined capacity of 550 megawatts (MW) worth around Php27 billion.

Based on documents submitted to the Department of Environment and Natural Resources, Ayala Corporation’s power arm would develop a 150-MW diesel plant in Mariveles, Bataan through Ingrid 2 Power Corporation. AC Energy also currently has stakes in the construction of two coal plants in the town.

Ingrid 3 Power, another AC Energy unit, is also building a 400-MW diesel power plant project in Calaca, Batangas.

The Mariveles project is estimated to be worth Php10 billion, while the Calaca project would cost Php17 billion, based on documents. The projects are being considered for either peaking, mid-merit/load-following, or ancillary service application.

Mid-merit and peaking/load-following plants operate with flexibility to respond to varying demand for electricity throughout the day. Ancillary plants, meanwhile, help address sudden fluctuations in a transmission system’s frequency and voltage.

The company is also developing a 150-MW diesel power plant project in Pililla, Rizal, which is expected to begin operations in 2021.

AC Energy President and CEO Eric Francia said the firm was looking at investing in technologies to complement renewable energy (RE) such as battery energy storage and peaking plants. He particularly believes that the country would need more peaking, reserve, and ancillary capacity, especially where more renewables are injected.

The company had earlier announced its plans to drop coal from its portfolio of power generating plants. It also is looking to set up half of its 5,000MW RE capacity target by next year.