Taiwan firm mulls $400-M power project in Subic

Taiwan Cogeneration Corp. is eyeing a 40- hectare site in the Subic Bay Freeport where it plans to construct a 300 megawatt power plant worth between $300 million and $400 million.

According to Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza, Taiwan Cogen recently sent a team to inspect the site.

Initially, Taiwan Cogen will construct its plant on a 25 hectare property with an adjoining 15 hectares for possible expansion.

The site being eyed by Taiwan Cogen, Arreza said, is owned by the National Development Corp. (NDC).

Taiwan Cogen has already signed a Memorandum of Understanding (MOU) with the SBMA.

Taiwan Cogen is still undertaking a feasibility study which would carefully detail the power requirements of locators in Subic and at the same time define a suitable place where the future plant would be located.

Arreza disclosed, however, that based on some preliminary computations, the entry of Taiwan Cogen in two years time would Taiwan firm lower the cost of power in Subic to around P4.10 per kilowatt hour from its current cost of P5.40 per KWH.

Taiwan Cogeneration Corp., a subsidiary of Taiwan Power Corp., is a specialized co-generation company established in 1992 with a goal of assisting the industry by providing co-generation technology to enhance energy efficiency that would yield lower energy cost and upgrade the power supply in Taiwan.

Under the agreement signed by the SBMA and Taiwan Cogen, both parties have expressed their intent to set up a power plant that would initially provide competitive and reliable power for investors inside the Subic Bay Industrial Park (SBIP) and eventually the whole Freeport.

The $300 million to $400 million project is intended to supply power directly to Subic Enerzone which is the current power provider of both the Freeport and Olongapo City.

However, Subic’s energy demand is only 20 megawatts while Olongapo City only requires 30 megawatts.

Korean shipbuilder Hanjin, Arreza said, may require about 50 megawatts while the Chinese Hebei Jingniu Group would need about 40 megawatts.

Taiwan Cogen, Arreza said, has said that it needs to produce around 180 megawatts to break even.

Thus, aside from supplying the needs of Subic, its locators and Olongapo City, Taiwan Cogen may also sell to Dinalupihan and Hermosa in Bataan as well as to Clark which may demand around 30 megawatts, Arreza revealed.

"Not only will Taiwan Cogen help make power supply here more affordable and efficient but it will also enhance our competitiveness among other economic zones and eventually offer the cheapest rates in the Philippines," Arreza said.

Arreza added that Taiwanese investors have something to be happy about-a possible P1 per kilowatt reduction from current power rates when Taiwan Cogen sets up their power plant.

Arreza, who met with Taiwan Cogen president Shu Sung-Fou in Taiwan last October, stressed how fortunate locators are with the planned power plant project with Taiwan Cogen.

"The demand for energy is a serious issue in today’s world market. Economic development is gauged by the presence of a good power supplier and distributor," Arreza explained.

Shu assured the Freeport that they are dedicated to bring power development and construction and would offer them at the most competitive rates possible.

Shu also stressed that aside from offering a reliable and affordable source of energy to the locators, they would also take in mind the strong call to be environmentally friendly in terms of their operations.

"I see a bright economic future ahead for SBMA and Taiwan Cogen," Shu said.