BOI Approves Coal-Fired Plants

The Board of Investments has approved two coal-fired power projects with total investments of P62.328 billion that would add 735-megawatt capacity to the national grid.

These projects are the P49.45 billion-expansion project of Masinloc Power Partners Co. Ltd. and the P12.87 billion project of South Luzon Thermal Energy Corp.

The expansion project of Masinloc Power Partners includes the construc¬tion of two 300- megawatt unit plants that would boost the company’s total capacity to 1,200 MW. At present, the company has two existing 300-mw coal-fired power plants in Zambales. Their clients include electric coopera¬tives, utilities and economic zones.

Based on its approval with the BoI, the coal-fired power project will use environmentally-friendly technologies and a wastewater treatment plant meet the country’s environmental standards. The project will start in June 2017.

Masinloc Power is a local unit of the US-based AES Corporation, which also operates in 27 countries around the globe.

The South Luzon Thermal Energy project is a 135-mw coal-fired power plant to be located in Calaca, Batan¬gas and will start commercial operations in August 2014. It would serve electric cooperatives, industries and contributes to the wholesale electricity spot market.

The two power projects are aligned with the 2011 Investment Priorities Plan of the government to attract investments in key industries.

Demand for electricity in the country is expected to grow at an average of 4.5 percent annually, or up to 12,005-MW capacity by 2014. The Luzon grid alone will require an additional 1,050 MW capacity by 2014.(BCM)