TeaM Energy Corp. said the 1,200 megawatts (MW) Sual coal fired thermal power plant (CFTPP) in Pangasinan will continue to be operational after the expiry of cooperation period of the Sual independent power producer contract dated May 20, 1994.
This paves the way for the takeover by Sual Power Inc. (SPI) of the biggest coal-fired power facility in the country,
With the enactment of the Electric Power Industry Reform Act in 2001, all of the government’s power generation assets except for those located in off-grid areas were privatized.
SPI was declared as independent power producer administrator (IPPA) of the facility in 2009.
TeaM Energy in a statement over the weekend said the facility was turned over last Friday to the government through the Power Sector Assets and Liabilities Management Corp. (PSALM).
Sual CFTPP was built under a build operate and transfer scheme with the national government then represented by the National Power Corp. (NPC).
“For the past year, there has been close coordination with NPC, PSALM and SPI to ensure a seamless transition process. The plant has been turned over in excellent condition, ready to continue generating electricity for the Luzon grid,” said Mitsuhiro Kojima, TeaM Energy officer-in-charge.
TeaM Energy said on the same day of the transfer, the power plant was received by SPI, a subsidiary of San Miguel Global Power.
SPI was the IPPA of the Sual CFTPP, pursuant to its IPPA Administration Agreement with PSALM. However, the agreement ended on the day of the transfer of the plant to PSALM from TeaM Energy, giving SPI the right to take ownership of the plant.
“For more than 25 years, the Sual power station has contributed to the development of the Philippines by generating reliable, cost-effective energy that has energized homes, factories, offices, schools, and hospitals,” Kojima said.
Meanwhile, TeaM Energy will continue to operate the 735 MW Pagbilao coal-fired power station in Quezon Province while also maintaining a 50 percent stake in the 420 MW Pagbilao unit 3 coal-fired power project.
