MANILA, Philippines - The Department of Energy (DOE) has approved the application of Strategic Power Development Corp., a subsidiary of SMC Global Power Corp. to build a pumped storage in Aklan.
The project involves 200 megawatts, the service contract for which was signed on Feb. 4.
A DOE source said the project is now on pre-development stage.
Strategic Power also has two other service contracts in the pipeline. These are the 20-MW West Upper San Roque Pumped Storage and 10 MW East Upper San Roque Pumped Storage projects.
The San Miguel subsidiary currently trades the capacity of the 345-MW San Roque multipurpose hydroelectric power plant in Batangas.
SMC Global is also aiming to bring its power plant capacity in Mindanao to 1,200 MW through a second and third-phase expansion of its coal-fired power plant in Davao.
The expansion would bring to 1,200 MW SMC’s capacity in Davao, according to documents from the DOE.
In July last year, SMC broke ground for the first phase of the plant, comprising of 300 MW, targeted for commissioning in 2015 and 2016 at 150 MW each year.
For the second phase, SMC is now working on securing permits and other regulatory requirements for the second phase of the power plant as well as negotiating financing arrangements.
The second phase of 300 MW is targeted for commissioning in December 2018.
For the third phase of 600 MW, SMC has already secured the Environmental Compliance Certificate from the Department of Environment and Natural Resources (DENR) and is now in the process of securing other permits.
The target date for commissioning is December 2019 for 300 MW and December 2020 for 300 MW.
The power plant to be built in Malita, Davao, will help balance the power supply differential between north and south Mindanao and provide reliable and continuous supply of electricity at a lower cost, the company earlier announced.
The plant aims to help address the growing power crisis in the island, which is currently facing shortages of up to 10 hours, depending on the area. The nearby Visayas region is also facing shortages.
SMC Global said the plant would use locally sourced coal from SMC-owned mines in Mindanao.
In just four years, SMC Global Power has become one of the largest independent power generation companies in the country, with an installed capacity of 2,545 MW, the company said in its disclosure.
As of 2012, it already cornered a 17 percent market share of the power supply of the national grid and 23 percent share of the Luzon grid.