FirstGen mulls coal-fired power plants

First Generation Holdings Corp. of the Lopezes is planning to put up two 50 megawatt (MW) coal-fired power plants at a cost of $100 million once the new power bill is passed by Congress.

"We are beginning to look into it (construction of new coal-fired plants), FirstGen president Peter Garrucho said but they still have to wait for the passage of the bill since this will allow them to know what specific power plant they will need to construct.

He said the compliance with the Clean Air Act (CAA) may require the use of coal-fired plants in the future. "I guess now with the Clean Air Act it’s probable to build one. Coal fired power plant would need four to five years to build," he said.

Many power generation investors are awaiting the approval of the power bill before committing to invest in the Philippines as the law would spell out the rules for power generation, electricity transmission and distribution.

Garrucho said his company is conducting a feasibility study on the plant. It has not yet been determined whether it would run on locally produced lignite or imported coal.

FirstGen owns and manages all of the Lopez’s power generation businesses, including the 225-MW Bauang power plant, the 72-MW Panay station, the 1,000-MW Sta. Rita power plant, the 500-MW San Lorenzo station and the 65-MW Batangas co-generation facility. – Donnabelle Gatdula