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Friday, May 19, 2006
Kepco set on finishing Naga plant sans Veco
The additional 200 megawatts for the Visayan Electric Co. (Veco) in 2010 should be cheaper than electricity from the National Power Corp. (Napocor), which costs about P4.10 per kilowatthour at present, an official of the Aboitiz Equity Ventures said.
Aboitiz Equity Ventures (AEV) chief operating officer Erramon Aboitiz said the first 50-megawatt (mw) tranche of additional power supply for Veco should be delivered in January 2010.
The second, third and fourth tranches—all at 50 mw each—should be available in July 2010, January and July 2011, respectively.
New plant
Officials of AEV, which is the managing shareholder of Veco, revealed the joint venture of the Korean Electric Power Corp., Salcon Power, and Mirant Philippines will participate in the June 14 bidding for the power supply acquisition.
AEV president Jon Ramon Aboitiz earlier said the power supply must come from a new capacity plant, or an entirely new power generation plant.
Cebu Power Core Group chairman Carlos Co said the construction of the Kepco-Salcon coal-fired power plant project in Naga, Cebu is on schedule.
Co said even if Kepco will not get the Veco contract, it will continue the project.
But Mirant will not build a new power plant if loses the bid, said Co.
Gregorio Romualdez, public relations officer of Mirant Philippines, told Sun.Star Cebu yesterday that the firm has shelved earlier plans to build two new capacity power plants in Toledo City.
Toledo plants
Mirant had proposed to build two 50-megawatt coal-fired power plants in Toledo that will be operational by 2008 and two more facilities with a combined capacity of 100 mw for completion in 2011.
Romualdez said the proposed projects will no longer push through as Mirant has sold its stake in Mirant Global to a group of investors under the First Metro Investment Corp. early this month.
The proposed projects as well as the existing Toledo power plants belonged to Mirant Global. Mirant still controls power plants in Pagbilao, Sual and Ilijan in Luzon.
Meanwhile, Co said the Cebu Power Core Group will talk to Philippine Electricity Market Corp. (PMEC) president Lasse Holopainen with regard the Wholesale Electricity Spot Market (WESM) scheme.
Power market
Kepco-Salcon, Co, said will also participate in the WESM.
Under the WESM, distribution utilities and direct costumers can choose and buy the cheapest electricity from different independent power producers. The scheme involves the buy and sell of electricity like a commodity.
“Distribution utilities and (qualified) electric cooperatives as buyers will be able to choose where to buy. The price will be driven by demand. Eventually, the pressure of competition will bring the price (of electricity) down,” Holopainen had said during a forum on the power industry in Cebu City. (JBN/with LAP)
For Bisaya stories from Cebu. Click here. (May 19, 2006 issue)
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