Kepco’s 100-MW plant in Panay to use clean local coal — Perez

Energy Secretary Vincent S. Perez has made the assurance that the 100-megawatt (MW) coal-fired power plant to be put up by Korea Electric Power Corp. (Kepco) in Panay Island will use clean and indigenous coal.

"It has to use modern clean coal technology," Perez said, noting that the company is eyeing to source its coal requirement from either the Semirara Island or somewhere in Zamboanga.

Perez also clarified that Kepco will not be entering into a new power purchase agreement (PPA) with the National Power Corp. (Napocor).

"Napocor is prohibited by the new power law to contract any new power agreement. New power plants should sign up with electric cooperatives (ECs) and distribution utilities," Perez added.

Kepco and the provincial government of Antique recently signed a memorandum of understanding (MOU) for the construction of the power plant which will be completed by 2006.

The construction of the circulating fluidized bed combustion (CFBC) power plant is part of the government’s effort to provide long-term solutions in the Panay Island, composed of Aklan, Antique, Capiz, Iloilo and Guimaras.

Aside from Kepco, Mirant Philippines Corp. also concluded negotiations for a 20-year build-operate-and-own (BOO) energy supply contract with the Iloilo-1 Electric Cooperative Inc. (ILECO-1).

Under the agreement, Mirant will finance, construct, operate and maintain a 10-MW diesel-generating power station in Iloilo as well as rehabilitate and upgrade ILECO-1’s 13.2 kilovolt distribution lines in the municipalities of Sta. Barbara and Pavia.

Mirant Philippines, a wholly owned subsidiary of Atlanta-based Mirant Corporation, is the largest private producer of electricity in the country, owning more than 2,000 MW of installed generating capacity nationwide. Mirant also owns a stake in the natural gas-fired 1,200 MW Ilijan Power Plant. – Donnabelle Gatdula