AC Energy (ACEN) plans to build a 1,200-megawatt (MW) dual-fuel power plant in Batangas City, which aims to provide the Luzon Grid’s mid-merit and peaking requirements.
The project, which would house six 200MW gas turbines, has an indicative cost of around Php25 billion. This will be developed under ACEN subsidiary Ingrid3 Power Corporation in a leased industrial lot in Barangay Libjo and Malitam, based on a document submitted to the Department of Environment and Natural Resources-Environment Management Bureau.
Incidentally, the project site happens to be adjacent to Shell’s newly-repurposed Tabangao import facility.
The Php25 billion will particularly cover the feasibility study, preparation of detailed engineering design, acquisition of government permits and licenses, site development, the construction of the plant itself, substation and transmission line components, procurement of necessary equipment and materials, as well as environmental management facilities and monitoring activities.
“Gas turbine power plants can be adjusted to accommodate peaks in electricity demand. They are operated mainly during periods of high demand otherwise they remain standby and are ready to run at any time to provide reserve power when needed,” ACEN said.
The Ayalas’ power arm plans to use modular power technology for the gas turbines since they “[can start-up, synchronize, and reach its full capacity within seconds or a few minutes]” and “[allow quicker installation compared to conventional thermal plant designs].” Newer gas turbine models can be run using either gas or liquid fuel.
The plant would then be connected to the 500-kilovolt Pinamucan substation of the National Grid Corporation of the Philippines (NGCP).
Based on the filing, pre-construction activities have already supposedly begun. Construction itself, meanwhile, is expected to begin in the third quarter of 2023 and be completed by the end of 2024.
Last month, the Energy Regulatory Commission allowed the Ayala-led firm to connect its 300MW modular diesel plant in Pililla, Rizal to the Luzon Grid. Once completed, the plant would be able to provide ancillary services to the NGCP, as well as peak and reserve power to the grid.