Foreign power firms may avert Cebu power lack
Mirant sets plant, Kepco interested
Business Week, 23 January 2004
JUN P. TAGALOG
Correspondent
CEBU CITY - Mirant Toledo Holdings is planning to expand operations in Cebu and put up a 100-megawatt coal-fired plant.
Korean Electric Power Co. (Kepco), on the other hand, will send representatives here next week to discuss two investment options: buyout of Salcon Power Corp. and takeover of the Naga power complex; or construction of a new coal-fired power plant with a capacity of 200-300 megawatts at the Cebu south reclamation project.
If these two foreign investors push through with their plans, Cebu Chamber of Commerce and Industry's Carlos Co was confident that Cebu 's power problems will disappear.
The measures being undertaken by the government to stave off a power crisis in Cebu , Negros and Panay will provide relief, but Mr. Co said these are not enough. What Cebu needs is additional generating capacity, he added. "We're happy about [these government measures]. At least now we can see the light at the end of the tunnel. There's relief at hand. But Cebu still needs baseload power," he said.
He said sources from Mirant told him the company is now undertaking a study on the construction of a 100 megawatt plant in Toledo City, around 50 km west of this city.
Mirant now operates a 70-megawatt coal-fired plant. It also owns a diesel power plant. It supplies the Visayan Electric Co. (Veco) with 46 megawatts daily. But starting June this year until the next 12 years, Mirant will provide Veco with an additional 24 megawatts.
"We gathered from Mirant that they are doing a survey now. This is still unofficial. This is still under study. Hopefully, they will implement the project within the year and commission it five years from now," Mr. Co said.
He said the planned Mirant and Kepco power generating projects will assure Cebu of a stable and adequate power supply. "They would provide relief for Cebu ."
He said Cebu should not be dependent on imported power.
Cebu gets part of its power requirements from the Tongonan geothermal fields in Leyte through submarine cables.
In a recent briefing on the power situation in Cebu , Negros and Panay . Energy officials assured there will be enough power supply until the elections in May. But reserve margins are very thin, ranging from 2.3-9.2 megawatts only. Ideally, the entire Cebu-Negros-Panay grid should have a reserve of 13.2 megawatts.
Officials said several measures that will be undertaken by the government are expected to stave off the power shortage until after the elections. Power shortage is projected in June, November and December this year.
Among the measures undertaken by the government is the acquisition of backup power of about 25 megawatts from Mirant from November 2003 to June 2004; emergency lease of a l0megawatt modular generation set for Panitan, Panay by March 20, 2004; transfer of a 32-megawatt power barge to Obrem, Panay by April 15, 2004; transfer of the 110-megawatt Pinarirucan Diesel Plant to Dingle, Iloilo by end of December 2004; and the uprating of the Leyte-Cebu submarine cable by February 2005.
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