KEPCO selling stake in KSPC, SPC Power

MANILA, Philippines — State-owned energy generation group Korea Electric Power Corp. (KEPCO) is selling its interests in two Philippine companies, as it plans to focus on renewable energy development.

KEPCO is in the process of selling its 60 percent stake in KEPCO SPC Power Corp. (KSPC), as well as its 40 percent interest in SPC Power Corp.

The sale is aimed at further strengthening KEPCO’s commitment to carbon neutrality and supports its plan for complete phaseout of coal by 2050.

KSPC, a joint venture between KEPCO and SPC Power, operates a 2,100-megawatt (MW) circulating fluidized bed combustor (CFBC) coal-fired power plant in Naga City, Cebu.

The power plant has been supplying power to the Visayas region since 2011.

SPC, meanwhile, operates the 146.5-MW Panay diesel power plant located in Dingle, Iloilo and the 22-MW Bohol diesel power plant in Tagbilaran City, Bohol.

Aside from the 2x100-MW thermal power plant in Cebu, it also operates the 32-MW power barge 104.

For its distribution business, SPC owns majority of Bohol Light Co. Inc. which provides electricity services to Tagbilaran City, Bohol. It also has a 40-percent stake in Mactan Electric Co. Inc., which powers up Lapu-lapu City and the municipality of Cordova in Cebu.

SPC is among the interested bidders for the KEPCO stakes currently under sale.

KEPCO said several domestic and foreign bidders have submitted preliminary bids for the assets.

The company said the Cebu plant’s CFBC technology, regarded as the environmentally optimized combustion process among coal-fired power plants, is considered as the key factor for the strong interest from investors.

Shortlisted bidders are expected to submit their final offers within the first quarter.

KEPCO hopes to enter into an agreement within the first half.

“As the marketing process drew more than the expected interest, the potential sale process has gained further traction towards a successful closing,” it said.

KEPCO has an existing investment in Solar Philippines Calatagan Corp.

Moving forward, the company plans to invest in more renewable energy projects in the country.