Semirara keen on pursuing 700-MW Calaca expansion

MANILA, Philippines — Integrated energy company Semirara Mining and Power Corp. (SMPC) intends to push through with the construction of the 700-megawatt (MW) coal-fired power plant in Calaca, Batangas once grid connection issues are resolved.

The Calaca expansion project, which is under subsidiary St. Raphael Power Generation Corp., was supposed to be a joint venture between SMPC and Meralco Powergen Corp. (MGen).

In 2020, however, SMPC, (MGen) and St. Raphael agreed to terminate the joint venture agreement signed back in 2016 covering the construction, ownership and operation of two single units of 350-MW each.

Following the termination, SMPC then entered into a deed of assignment for the acquisition of the remaining 50-percent ownership interest in St. Raphael.

“The issue of St. Raphael is not a contract with Meralco. We are prepared to build it with or without an offtaker,” SMPC chairman and chief executive officer Isidro Consunji said.

He said the issue is that St.Raphael is not yet connected to the grid.

“The present grid is maxed out right now. The additional lines has not been in place because of certain delays experienced by NGCP, right-of-way issues, and the like,” he said.

The Tuy-Dasmariñas Transmission Line Expansion Project has reportedly encountered challenges in the negotiations and acquisitions of the rights-of-way for its 11-kilometer transmission line route traversing Calaca, Balayan and Tuy, Batangas.

The project will allow the connection of the St. Raphael 2x350-MW coal-fired power plant and allow full dispatch of all generating plants injecting at Calaca Substation.

“So as soon as the grid connection is resolved, then we will build St. Raphael which is 2x350-MW because we have already indications from banks that they are prepared to fund it,” Consunji said.

The executive said there are still banks that are willing to fund coal projects in the country.

The DOE in October 2020 announced a moratorium on new coal-fired power plants as it recognized the need for the country to shift to a more flexible power supply mix.

However, exempted from the moratorium are committed power projects, existing power plant complexes with firm expansion plans and land site provisions, and indicative power projects with substantial accomplishments.

Energy Secretary Raphael Lotilla earlier expressed no intention of lifting the moratorium under the current administration so as not to send mixed signals to investors.

SMPC is the only power producer in the country that owns and mines its own fuel source in Semirara Island in Antique, allowing it to generate affordable and reliable baseload power for the Luzon and Visayas grids.

As the largest domestic coal producer, it supplies affordable fuel to power plants, cement factories, and other industrial facilities across the country.