Global Business Power mulls coal plant in Panay

MANILA, Philippines - The Metrobank Group’s Global Business Power Corp. is studying the feasibility of building a 150-megawatt coal-fired plant in Panay.

“We’re very seriously studying putting up a 150-MW plant in Panay,” Global Business president Arthur Aguilar said in an interview.

He said the company, through its subsidiary Panay Energy Development Corp., is eyeing to conclude the feasibility study within the first quarter.

“By March, we should have a good idea where to go on this. We have been going on a roadshow with our cooperatives which are our respective clients for 2016 onwards,” he said.

In October last year, Panay Energy announced the signing a memorandum of understanding with Formosa Heavy Industries to study and finalize the reconfiguration of its two 82-MW coal-fired power plant into a single larger power facility.

Panay originally planned to complete the first 82 MW coal plant in Panay in late 2014 but Global Business said that increased activities in the island may warrant the construction of a larger plant of 150 MW.

When asked how much is the investment cost of a 150 MW plant, Aguilar said the rule of thumb is $2 million to $2.2 million per MW.

Aguilar said a single larger plant could reduce Panay Energy per kilowatt-hour generation charges to existing customers.

Global Power chairman Francisco Sebastian earlier said that since the company acquired the diesel plant from the Lopez Group in 2003, it has been able to provide adequate, reliable and cost efficient power supply to Panay.

“The completion of the clean coal technology last year has allowed the expansion in economic activity, improved the reliability of power supply and reduced electricity costs by at least P3 per kilowatt hour. The construction of a third unit, especially larger, on the same site in La Paz, Iloilo City, is a reflection of our continuing commitment,” Sebastian said.