Korean Power, Trans-Asia mull new power plants in RP

Korean Power Corp. (Kepco) and Trans-Asia Power Generation Corp. have signified their interest to build new power plants in the country.

At the sidelines of the 4th Annual Philippine Business Outlook Conference sponsored by the Knowledge Institute yesterday, Energy Secretary Vincent Perez said Kepco and Trans-Asia, a 50-50 joint venture between Trans-Asia Oil and Energy Development Corp. and Union Cement Corp., have expresed their respective intentions to set up new power facilities in the country.

Perez said Trans-Asia is keen on building a diesel-fired plant in a still undisclosed place. Trans-Asia supplies power to Union Cement Corp.’s facilities in Norzagaray, Bulacan with a net capacity of 52 the company is actively assessing opportunities brought about by the enactment of the Electric Power Industry Reform Act (EPIRA) in June 2001.

Meanwhile, Kepco earlier announced plans to put up a $150-million power plant in the island of Panay.  The plant, to be built under a build-operate-transfer scheme, will have a capacityof 100 MW.

The company leads the consortium which operates the 1,200-MW Ilijan natural gas power facility in Batangas.

Kepco’s move followed the steps of the country’s largest independent power producer (IPP), Mirant Philippines Corp., which will build a P260-million, 10-MW power facility in Panay to address a looming power shortage in the island province. Mirant earlier concluded negotiations for a 20-year build-operate-own energy supply contract with the Iloilo-I Electric Cooperative Inc. (Ileco- I).

Under the agreement, Mirant will finance, construct, operate and maintain a 10-MW diesel power station in Iloilo to meet Ileco-I’s 26-MW capacity. The remaining 16 MW is being supplied by the National Power Corp. (Napocor).  In 1998, electricity demand in the province was at 131 MW. This increased to 145 MW the following year and further rose to 151 MW in 2000. At present, Panay’s power requirements stand at 190 MW.

Other firms which have expressed interest to build power facilities in the region are Alstom, Artech, First Generation, and Power One.

In 2005, electricity demand for Panay Island is expected to increase to 220 MW. Existing power facilities in the province are capable of generating only about 110 MW in electricity, while about 60 MW of electricity is being brought into the island via interconnection.