Aboitiz Power inaugurates Davao coal plant

MANILA, Philippines – The Aboitiz Power Group has room to expand by at least another 300 megawatts (MW) its newly inaugurated P35-billion baseload coal-fired power plant in Davao City amid a looming surge in power demand in the coming years.

Therma South Inc.’s (TSI) 300 MW coal-fired power facility was inaugurated Sunday by President Aquino. 

Aboitiz Power CEO Erramon Aboitiz said the facility would not only boost Mindanao’s power supply but also provide reliable baseload power in the region, complementing the region’s existing hydropower capacity.

The power plant currently supplies baseload power to more than 20 electric cooperatives and distribution utilities covering the cities of Davao, Cagayan de Oro, Gen. Santos, Zamboanga, Butuan, Kidapawan, Tagum, Koronadal, Digos, Pagadian, and Cotabato, among others.

Mindanao previously sourced over 50 percent of its power capacity from seasonal hydropower resources, particularly from the Agus-Pulangi Hydropower Complex.

“We can count on it to consistently produce 300 MW of baseload power, which means this capacity can be tapped into anytime, rain or shine, with very minor fluctuations,” President Aquino said in his speech.

While the Mindanao grid is seen to have adequate supply in the next five years, Aboitiz Power has already secured necessary permits and approval for the possible expansion of at least 300 MW.

“We definitely plan on expanding. You see, we have extra land and it is what we plan on doing... We have facilities here for additional 300,” he said.

The cost for this expansion will be less than the initial investment for the plant since facilities are already in place.

“There’s additional facilities but the bulk still needs to be invested so I say, power plants like this cost around $2.5 million per megawatt. So if were able to expand this one it would be cheaper,” Aboitiz said.

The timing of the expansion, however, would need to be planned as the Mindanao grid is expected to have an oversupply up to 2020-2021 once various power plants start commercial operations.