Coal trader to invest P14B on first power plant venture

CEBU, Philippines - A Cebu-based coal trader and mining equipment distribution company, Asia Pacific Energy Resources Venture Inc. (APERVI) announced to invest P14 billion to build a 150 megawatt coal-fired power plant to aid the anticipated power scarcity in the Visayas grid.

APERVI, owned by a consortium of Filipino businessmen holding office in Cebu, is starting to comply with documentation requirements such as Environmental Compliance Certificate (ECC), public hearing, and others to start off the construction of a five-hectare power plant located in Cadiz City in Negros Occidental.

In an interview with APERVI president Cesar Ibañez Loa-as, he said that the power plant that will be operated by a subsidiary of APERVI, the North Negros Energy Power Corporation, is expected to be operational by 2016, while ground works is scheduled to start by the second half of 2014.

The plant however, is expandable to supply as much as 300 megawatt, Loa-as said.

According to Loa-as, the company has seen the potential of venturing into power plant facility, noting the shortage of power supply within the Visayas grid, which includes Cebu.

He said while Cebu has a number of newly established power plant to supply the growing demand, Negros Occidental on the other hand, has continued to import power from Cebu plants.

Establishing a coal-fired power plant in Negros, will not only benefit the electric consumers in the region, allowing them to avail of much cheaper electricity, it will also help save Cebu from the power supply shortage, considering its fast pace growth.

At present, Negros Occidental is importing 80 percent of its power requirement from different power plants in Cebu. While the whole Visayas grid is short of 300 mega-watt supply.

The entire grid’s current demand for power is at P1,900 megawatt, while power plants supply within the grid can only produce 1,700 MW.

Aside from frequent brownouts, electric consumers of Negros Occidental are paying higher electric rate compared to Cebu, which is P8 per kilowatt hour.

For this reason, APERVI has ventured into the power plant facility to help arrest the power scarcity problem in the Visayas grid.

The North Negros Energy Power Corporation, will be the first coal-fired power plant in the province (so far), Loa-as said.

Coal-fired power plant produces electricity by burning coal in a boiler to heat water to produce steam. The steam at tremendous pressure, flows into a turbine, which spins a generator to produce electricity.  The steam is cooled, condensed back into the water, and returned back to the boiler to start the process over.

APERVI, has been in the coal importation, and distribution business since February 2011, with the intent of contributing to the development of the Philippines’ energy and mining industries.

Its clients include the coal-fired power plants, big cement industries like Taiheiyo, among others.

The company imports its coal products from Indonesia, averaging to 20,000 metric tons a month.

A report from the National Economic and Development Authority (NEDA-7) indicated that industrial users accounted for the upsurge in consumption, posting a 20 percent increase in power consumption in 2011.

The rise in power demand from industrial users indicates an expansion in business activities, which speaks well for the robust regional economy.

Total power consumption of residential and commercial users also rose in 2011, although not as much as in the previous year, as the number of consumers mainly from Cebu, increased.

On the average though, per capital power consumption of residential and commercial users went down as demand declined.

The Cebu consumers led in cutting back power consumption although their numbers increased, the report revealed.

Among the four provinces in Central Visayas, Siquijor registered the highest increase in power consumption in 2011 at 14.79 percent. This was followed by Cebu at 8.9 percent and Bohol and Negros Oriental at about four percent each.

In terms of share to the total power consumption of the region, the Province of Cebu accounted for 87 percent of total power used.

The Province of Siquijor on the other hand, registered the highest rate of increase in power consumption, but had the lowest share of total power used during the year.

Loa-as added that the company is looking at establishing more power plants in the future within the grid, as the demand arises.

APERVI is a partner of the Panpisco Group of Companies, the pioneering company in the supply of Industrial equipment in the Philippines. /JOB (FREEMAN)