A LOCAL company that’s into power generation and coal distribution has strengthened its presence in the sector after a French company acquired a majority stake in the local company.
Asia Pacific Energy Venture Inc. (Apervi) is now part of the French company Sparkling Commodities after the latter acquired majority shares of Apervi through its subsidiary Sparkling Capital Ltd, based in Hong Kong.
The acquisition will enable them to pursue their aggressive business expansions in the coal-distribution and completion of their first 150-megawatt (MW) coal-fired powerplant in Cadiz City, Negros Occidental, said Apervi president Cesar Lao-as last week.
“They will provide us the resources needed to increase our penetration of the coal distribution business. Our target is to distribute 100,000 metric tons of coal in the Philippines every month through their Sparking Komodetad Gemerlap company based in Indonesia that takes care of their coal distribution businesses,” said Lao-as.
At present, Apervi is only distributing 8,000 metric tons of coal in the different power plants and power generating companies in the country.
“The demand for coal in the country is 14 million metric tons and local supply is only 4 million metric tons. There’s a huge opportunity there,” he said.
The coal will be delivered through the coal terminal in Cadiz which is set to be operational next month.
For their 150- MW coal-fired power plant in Cadiz which will be developed by their subsidiary North Negros Energy Power Corporation, Lao-as said they will start accepting bids from interested bidders for the project 45 days from now.
“The bidding will include the detailed engineering and selection of Equipment Provider Contractor (EPC) for the power plant which we target to start operations by first quarter of 2017,” he said.
Lao-as said partnership with a serious investor like the Sparkling Commodities will benefit the power industry of the country especially the province of Negros which currently pays more than the standard power rates here in Cebu.
“Negros Occidental is importing 80 percent of its power requirement from different power plants in Cebu and power supply in the Visayas grid is thinning vis-a-vis the demand,” he said.
Based on figures from the National Grid Corporation if the Philippines, the Visayas grid’s current supply is 1,649 MW while power demand is 1,472 MW leaving only 167 MW of surplus supply.
Power demand is expected to grow fast at an average of at least five percent fueled by the robust developments in the country.