Meralco hikes long-term capacity

Power distribution giant Manila lectric Co. Meralco is increasing its long-term power generation capacity target to 3,000 megawatts MW to support increasing demand in the Lu on grid.

he company plans to start commercial operations of two coal-fired power plants in 2017 to avert power shortage, Meralco C scar eyes said.

he target is 2,700 MW with a potential upside. f demand really grows, we have to bump it up, eyes said.

eyes said Meralco, through its whollyowned subsidiary Meralco Power en Corp., is prepared to put up more power plants with an aggregate generating capacity of 3,000 MW.

We need to be part of solving our own requirements. f we build our own power plants , it gives us comfort that we are not e posed to any changes in the timetable of other generators, eyes said.

Meralco, which is indirectly controlled by Hong Kong-based First Pacific Co. Ltd. and partly owned by diversified conglomerate San Miguel Corp., is pursuing electricity generation pro ects to ensure long-term supply given continuous demand growth in its franchise area.

eyes said the company will pursue partnerships for the construction of power plants.

Last wee , Meralco Power en signed a oint venture deal with ew rowth B. ., a subsidiary of the C roup of hailand, to develop a 460-MW coal-fired power plant in Mauban, ue on.

t s a range of probably 1.5 million per MW to maybe around 2 million per MW, eyes said.

he power plant, which will ma e use of the latest technology to ensure efficiency, reliability and availability, will require an investment of around 6 0 million to 20 million.

Financing will be 70 percent debt and 30 percent equity, eyes said.

We will shoot for early 2017 operations ust to ensure that it is responsive to the needs of the Lu on grid and the Meralco franchise area, eyes said.

he engineering, procurement and construction contract is currently under the tender process.

espite an ongoing legal process due to environmental concerns, Meralco is still hoping to start operations of a 600-MW coalfired power plant at the Subic Bay Freeport one in ambales through edondo Peninsula nergy nc. in 2017.

We re hoping that when we clear the court case , we ll try to shoot for 2017, eyes said. edondo is Meralco s partnership with boiti Power Corp. and the local unit of aiwan Cogeneration nternational Corp.

side from coal-fired power plants, Meralco Power en also plans to build four 375-MW liquefied natural gas plants in the country.

eyes said Meralco is trying to move forward with its power generation pro ects as fast as possible because there is concern that the demand and supply situation, which is now getting tight, will be tighter.

ou ll see the tightening or the potential for higher electricity prices if we have to increasingly require on high cost oil-fired power plants, eyes said.

emand for power continues to e pand amid robust growth in the Philippine economy, which rose 7.6 percent in the first half driven by the service sector.

utside of Lu on, Meralco is loo ing at power requirements in isayas and Mindanao, eyes said.