US-based firm prepares P49.45-B power project

MANILA, Philippine s- US-based AES Corp. is now laying the groundwork for the expansion of its operations in Masinloc, Zambales, the Department of Energy said.

The company is eyeing to start construction of another 600-megawatt coal-fired plant, documents from the DOE showed.

Its local unit AES Masinloc Power Partners Co., Inc. is now consulting international and local banks to fund the cost of the project estimated at P49.45 billion, with target commissioning of the plant  in the third quarter of 2017, the DOE documents further noted.

The project proponents have already completed feasibility and grid impact studies, with the 600-MW expansion adding to the existing 600-MW Masinloc plant. 

“No additional land will be acquired as the expansion will be inside the existing Masinloc power plant complex,” the DOE said.

AES is a global power company with generation and distribution businesses in 30 countries.

The company entered the Philippine market in 2008 by acquiring the 600-MW thermal power plant in Zambales from the Power Sector Assets and Liabilities Management Corp. (PSALM), the government corporation tasked to private state-owned assets. 

“By successfully rehabilitating the 10-year old Masinloc power plant, AES not only expanded its footprint in Asia. It also demonstrated its deep local knowledge and distinctive operational skills honed from more than two decades of leadership in the global energy sector and pioneering advances in many markets,” AES said.

AES supplies power through the Wholesale Electricity Market, the country’s trading floor for electricity, and through bilateral contracts with investor-owned electric utilities or distribution utilities (DUs), including Manila Electric Company (Meralco), a few local government-owned utilities (NPC-SPUG) and numerous electric cooperatives (ECs) which sell to households as well as commercial and industrial enterprises located within their franchise areas at retail rates regulated by the Energy Regulatory Commission (ERC).