MANILA, Philippines - Diversified conglomerate San Miguel Corp. is planning to build a new coal-fired power plant in the Visayas to complement its upcoming coal facilities in Mindanao and Luzon.
The new coal facility will be SMC’s contribution in addressing the additional power needs of the Visayas following recent announcements of projects for the two other major Philippine islands.
SMC president and chief operating officer Ramon Ang said the conglomerate, through power generation subsidiary SMC Global Power Corp., is initially looking at a 300-megawatt coal facility in Cebu.
“We will build up as needed, up to 900 MW. Right now, we are just waiting for the Department of Energy approval,” he said.
Ang said he is confident the project can secure the DOE’s nod this year and can immediately take off afterwards.
Ang, however, did not elaborate on the firm’s timeline for the project.
Given current industry estimates at $1.5 million per MW, SMC would likely be investing about $450 million for the initial 300 MW, and about $1.35 billion if it decides to go the full 900 MW.
Aside from the Cebu coal facilty, SMC is also putting up coal-fired power plants in Bataan and Davao. Each plant is also expected to have a generating capacity of 900 MW.
SMC currently has an installed capacity of 2,545 MW, making it one of the biggest generation companies in the country.
DOE data showed that as of end-2012, the conglomerate had a 17 percent market share of the power supply of the national grid and 23 percent share of the Luzon grid.