TeaM Energy on Friday officially turned over the 735-megawatt (MW) net Pagbilao Coal-Fired Thermal Power Plant to the Philippine government through the Power Sector Assets and Liabilities Management Corporation (PSALM), marking the end of its Independent Power Producer (IPP) contract.

The turnover, completed at 7:47 A.M., follows the expiration of the cooperation period under the Pagbilao IPP contract signed on November 9, 1991, between TeaM Energy and the then-National Power Corporation (NPC). The facility was built under a Build-Operate-Transfer arrangement.

“These past years, we have been working closely with PSALM, NPC and Therma Luzon Inc (TLI) to ensure a smooth transition process. Our efforts have been successful as the plant has been turned over in excellent condition, ready to continue generating the much-needed electricity for the Luzon grid,” said Jun Sano, Chairman of the Board and Officer-in-Charge of TeaM Energy. 

On the same day, PSALM transferred the facility to TLI, a subsidiary of Aboitiz Power, which had been serving as the plant’s Independent Power Producer Administrator (IPPA). TLI’s IPPA agreement with PSALM ended upon the plant’s turnover, granting it ownership of the facility.

“For the past 29 years, the Pagbilao Power Station has contributed to the progress of the Philippines, consistently delivering reliable and cost-effective energy that powers homes, factories, offices, businesses, schools, and hospitals—fueling the nation’s growth and development,” Sano said. “Even during the most challenging times—including the height of the COVID-19 pandemic—we are proud to say that we continued to produce much needed electricity that helped the Philippines bounce back and return to normalcy,” he added.

Located in Pagbilao, Quezon, the coal-fired plant consists of two generating units with 367.5 MW capacity each. Since its commissioning, the facility has played a role in transforming the municipality from a fifth-class municipality in the 90s to a first-class municipality at present, according to TeaM Energy.

“TeaM Energy is extremely grateful to its stakeholders including the national government through the Department of Energy, PSALM, NPC, and other agencies, our host communities including the Quezon provincial government, the Pagbilao municipal government and Barangay Ibabang Polo, for enabling the Pagbilao plant’s success,” Sano said. “Our deep appreciation as well to our IPPA, Therma Luzon Inc. of the Aboitiz Power group. The plant will be in very capable hands as they are a highly competent and well-respected organization. It is an honor to have worked with them.”

TeaM Energy will maintain a 50% stake in the adjacent 420 MW Pagbilao Unit 3 Power Project and continue operations through its Retail Electricity Supply arm, TeaM Philippines Energy Corporation (TPEC).

What do you think this turnover means for Luzon’s power supply stability and the coal-to-clean energy transition in the Philippines?

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