Kepco to build coal power plant in Panay

Korea Electric Corp. (Kepco), one of the most active foreign power firms in the country, will build a 100-megawatt coal-fired power plant in Antique, Energy Secretary Vicente Perez said.

He said a memorandum of understanding (MOU) was recently signed between Kepco and the provincial government of Antique for the construction of the power plant.

The construction of the power plant, Perez emphasized, is part of the government’s effort to provide long-term solutions to the energy needs in the island of Panay, which is composed of the provinces of Aklan, Antique, Capiz, Iloilo and Guimaras.

The plant, targetted for completion by 2006, will use clean coal technology based on a circulating fluidized bed combustion (CFBC) process, which is expected to allay concerns to be raised by environmentalists.

The proposed CFBC power plant will use coal from the Semirara site in Caluya, Antique.

In her visit to Iloilo last week, President Arroyo said: "Clean environment remains to be your government’s long term goal. For further additions of power supply in the future, cleaner base-load power plants are being developed."

Arroyo also said that aside from Kepco, there are other power generation companies which have agreed to provide additional power supply in Panay.

"In various locations, there will be about 30-40 MW of power that will be ready by the end of 2003 or in the first few months of 2004 from Mirant, Power One and Alstom," Mrs. Arroyo said.

Last year, the President ordered the creation of a Panay Power Contingency Task Force, composed of the Department of Energy (DOE), National Power Corp. (Napocor), National Electrification Administration (NEA), the local government units and other stakeholders, to coordinate a solution to the imminent objectives of the Electric Power Industry Reform Act (EPIRA).

She also appealed for the speedy passage of the Transco franchise bill by the Senate since the energy resources of Panay will benefit from the interconnection with the geothermal fields in the neighboring islands of Negros and Leyte.