Aboitiz Power Corp. is set to conduct binding bids for engineering, procurement and construction (EPC) contracts in the next two weeks for its planned third unit of a coal-fired power plant in Cebu.
Emmanuel Rubio, Aboitiz Power president and chief executive officer, told reporters in a briefing in Taguig City on Tuesday they are preparing for the possible expansion of their 340 megawatts (MW) Therma Visayas Inc. coal-fired power plant.
Rubio said the expansion is being considered due to the need for additional capacity in the Visayas grid by 2027.
Rubio said they presented to the Department of Energy (DOE) a proposal to construct a 130 MW to 150 MW third unit for TVI which is allowable under the plant’s design.
Aboitiz Power said before considering a third unit for the coal-fired power plant, the company also studied the possibility of putting up a 150 MW facility that could be either fueled by liquefied natural gas or even solar.
However, the study identified coal fuel as the cheapest to build for another 150 MW in the area as bulk of the expenses will only be for the boiler and steam turbine generator and another coal dome. The area has an existing jetty.
A moratorium on the construction of new coal-fired power projects has been in effect since 2020.
“If DOE will allow us to build it because of the moratorium… But from the start, TVI unit 3 already has that permit because it is part of the original design of the TVI. We already have an ECC (environmental compliance certificate). If we are going to be strict about it, it should be outside the moratorium, we asked DOE for a certification and we got that,” Rubio said.
“We are looking at delivering this unit by 2027. Once we receive binding offers from EPC, we will go to our board for approval. We have the certification from DOE allowing this to be built and recognizing the need for self sufficiency in Cebu and the endorsement from the government and Governor Gwen (Garcia),” Rubio said.
Meanwhile, the company is set to complete as much as 400 MW worth of new RE power capacity this year from solar and geothermal.
Aboitiz Power eyes spending around P190 billion over the next decade for an additional 3,700 MW of RE, growing its capacities to 4,600 MW or three times the company’s current renewables portfolio by 2030.
Close to 1,000 MW of Aboitiz Power projects in wind and solar farms and geothermal capacities are in the pipeline.
Aboitiz Power’s upcoming new RE capacities include the 17 MW binary geothermal power plant in Tiwi, Albay; the 159 MW solar plant in Laoag, Pangasinan; the 173 MW solar project in Calatrava, Negros Occidental; and another 44 MW solar plant in Armenia, Tarlac that are all expected to come online within the year. -Jed Macapagal
