SINGAPORE — Meralco PowerGen Corp. (MGen), the generation arm of power giant Manila Electric Co. (Meralco), has estimated a capital outlay of at least $2 billion to develop two coal-fired power facilities in Cebu and Quezon.
At a media briefing here on Tuesday, MGen president and CEO Emmanuel Rubio said four local banks and two Indonesian lenders have expressed interest in financing the construction of the 1,200-megawatt Atimonan plant in Quezon and the 80-MW Toledo project in Cebu.
Similar to facilities powered by natural gas and geothermal energy, coal plants are regarded as reliable sources of baseload power due to their capacity to operate continuously and provide uninterrupted supply of electricity.
Rubio estimated an investment of about $1.6 million for each MW of coal-fired power plants or $2 billion for the two facilities with a combined capacity of 1,280 MW. The two projects have secured environmental compliance certificates from the Department of Environment and Natural Resources.
“We’re running the numbers to see if it could be viable and competitive, and then if you can do that, probably go for a board approval by February, and then we look for a CSP (competitive selection process) where we can participate,” he said.
Rubio noted the green light from the board of directors would pave the way for the start of the feasibility study and engineering works.
MGen, the executive said, is currently in talks with prospective engineering, procurement and construction contractors and equipment suppliers for the proposed coal projects.
“We have two candidates for Atimonan, and so far we have one sure candidate for Toledo, which was the original supplier — Formosa Heavy Industries,” Rubio said.
However, the development of these coal facilities remains contingent upon government approval, certifying that these projects are exempt from the existing coal moratorium.
The Department of Energy implemented a coal ban in 2020, barring the processing of applications for greenfield coal facilities.
But the agency has clarified that the moratorium is not a “total ban,” as this does not cover existing and operational coal power plants or those that are already committed projects.
Among those not included in the ban are the indicative projects with substantial accomplishments and approved clearances from local government units and the regional development council where they are located.
Rubio said the existing 82-MW coal-fired power plant under MGen unit Toledo Power Corp. had previously secured permits to construct two units.
The Atimonan project, meanwhile, has already been included in the committed list of power generation facilities.
“We believe that the project is part of the active project list as a coal plant. So we just want to (seek clearances) since there have been revisions in the past,” Rubio earlier said.
Currently, MGen’s coal portfolio includes San Buenaventura Power Ltd. Co.’s 500 MW in Mauban, Quezon; Cebu Energy Development Corp.’s 246 MW in Toledo, Cebu; and Panay Energy Development Corp.’s 164 MW and 150 MW in Iloilo City.
Together with its liquefied natural gas, diesel and solar technologies, the MGen Group boasts a total gross generation capacity of 2,425 MW that is capable of supplying baseload, intermediate, peak load and ancillary support.