DMCI Holdings of the Consunji group has committed to the Department of Energy (DOE) last week that it will be able to fire up the first 150 megawatts (MW) of its Calaca coal-fired power plant-expansion project in the summer of 2015.
“DMCI formally submitted document that their new plant will now be online on April 1,” Energy Secretary Carlos Jericho L. Petilla said in a text message. “The other 150 MW will be online on July 1.”
DMCI, according to Petilla, had said that the power facility’s commercial operation was originally targeted in December 2014 but was moved to March 2015 and again to June 2015.
The government was banking on DMCI’s power plant-expansion project to help ease the supply deficiency anticipated in Luzon during the summer months next year. Petilla said it’s the biggest power plant, in terms of capacity, expected to come online in the second quarter of next year.
The DOE had projected a shortfall of 900 MW next year, up from earlier estimates of 600 MW to 700 MW, owing to the delay of the DMCI’s Calaca power-plant expansion project, among others.
Petilla said the 900 MW projected supply deficiency won’t be adjusted just because DMCI had committed to run its 150-MW power facility by April next year. “It’s still the same. It will be difficult to move the target just because of a one-month delay. This is where more ILP [Interruptible Load Program] can come in,” Petilla said.
Under the ILP, customers with large loads, like commercial establishments, will be asked to operate their own generator sets if the grid operator projects a need to augment generation capacity in the Luzon grid. Through this, the aggregate demand for power from the system will be reduced to a more manageable level, helping ensure the availability of supply during the season.
With the ILP, power supply from the grid that will not be consumed by participating customers will be available for use by other customers within the franchise area.
Targeted ILP participants are those with large embedded generation capacities, such as malls, large business establishments and factories.
DMCI is undertaking an expansion of the 600-MW power plant that it acquired from the government through the privatization efforts of the Power Sector Assets and Liabilities Management Corp. in 2009 for $361.7 million.
It intends to expand the power facility by 1,000 MW more to be done in three phases. If completed, this will raise the power plant’s capacity to a total of 1,600 MW.
The first phase consists of putting up an additional capacity of 300 MW (2×150 MW).
The second phase will expand the Calaca power plant’s capacity by 350 MW more. The third phase also involves another 350 MW.
“DMCI’s 2×150 MW is the biggest plant coming in before summer of 2015. Trans Asia’s 135 MW is on track by end of 2014 so far,” Petilla said.
The energy chief said there are no penalties imposed on power producers if they fail to meet their original target schedule. “As it is, they would have already suffered or financial bled for every delay. They do not want that happening of course,” Petilla said.