In an interview with reporters yesterday, Energy Secretary Raphael P.M. Lotilla said the proposed expansion is now under study.
"CBK Power — which is jointly owned by J-Power and Sumitomo — has indicated to us that it will go into a voluntary feasibility study for the expansion of the existing CBK hydropower plant," he said.
Lotilla said the planned expansion of CBK will be urgently needed as the Luzon power grid would require additional capacity by 2010.
"This is a significant expansion plan, considering that it is located in Luzon. Our initial talks have been for a plant to be constructed on a merchant plant basis without any power purchase agreement," he said.
According to Lotilla, the feasibility study is likely to be started by the Japanese firms next month.
"They want to conduct the feasibility study for Kalayaan 3. This one is very significant. They want to start by February of this year. The potential area for expansion is 180 MW times two or 360 MW for the entire CBK plant which has a total existing capacity of 761 MW," he said.
Lotilla said the expansion would be jointly coordinated with the National Power Corp. (Napocor) as CBK is under the build-operate-transfer (BOT) scheme of Napocor.
"This is only an expansion so it will have faster implementation. They will do it in cooperation with Napocor because it’s under Napocor jurisdiction," he said.
The Energy Chief said the group may spend about $360 million investment for the expansion.
J-Power entered into the CBK Power in 2004. CBK Power is formerly owned by Industrias Metallurgicas Percarmona S.A. (IMPSA) of Argentina and Edison Mission Energy of California.
J-Power is a Japan-based electrical power utility company with interest on developing power sources and building transmission lines.
The Japanese power firm has participated in power projects totaling 16,000 megawatts (MW) in 72 plants in seven countries.
A major portion of its plants are 5,000 MW of hydroelectric plants with seven of them as pumped-storage hydroelectric plants similar to the CBK facility.
J-Power already has an existing investment in the geothermal power sector in the Philippines and views CBK as its anchor investment in the country for future expansion.