Coal continues to dominate energy mix in Cebu – DOE

The Therma VIsayas Inc. horizontal development project in Toledo City.(CDN PHOTO)

Energy demand growing 7% yearly; 2,000 MW needed in Visayas by 2020

More coal-fired power generation projects are still being undertaken in Cebu and in the Visayas than renewable energy projects, an official of the Department of Energy (DOE) said.

Antonio E. Labios, DOE Visayas field director, said it would be difficult to do away with coal plants in Cebu, which produces 50 to 60 percent of the total energy capacity in the Visayas grid.

“We have to consider that there are energy sources that we do not have in Cebu. If we remove all coal power plants now, we will not be able to generate enough power for Visayas,” Labios told Cebu Daily News.

He said the Visayas would need at least 2,000 megawatts (MW) of power by 2020, given its 7-percent annual average growth in energy demand. As of yesterday, the Visayas grid had a peak demand of 1,680 MW, according to grid operator National Grid Corp. of the Philippines (NGCP).

At least three of the power generation projects being undertaken in the Visayas are coal plants, which will initially generate a total of 435 MW.

Labios cited the 300-MW coal plant project of Therma Visayas, Inc., another joint venture of Aboitiz Power Corp. and Vivant Corp. in Toledo City in southwest Cebu.

The first 150-MW unit is set to be operational in December 2017 while the second 150-MW unit will be operational in March 2018, Labios said. The company plans to expand the facility to 500 MW.

“Ground work is already being done in Bato, Toledo,” he added. Aboitiz and Vivant disclosed in June that Therma Visayas has secured loans of around P32 billion to finance the project.

Another coal-fired power plant project in the works is in Iloilo province, which will generate 135 MW. The facility is being built by Palm Concepcion Power Plant in Concepcion town.

For renewable energy, Labios said two wind energy farms have recently begun operations in Guimaras and Aklan, which generate 54 MW and 50 MW, respectively. The two plants are not fully operational at present, the official said.

In Cebu province, Labios said DOE is eyeing two renewable energy projects. Renewable energy sources include geothermal, hydro, solar, wind and ocean.

“We have many prospective service contractors. Projects are popping up very rapidly,” he said.

A solar power plant in Bantayan and a wind farm in Cebu City are in pre-development stage, he added. Service contractors are conducting preliminary activities, such as conducting feasibility studies, securing permits, and filing for business permits.

No timeline has been slated for these two projects.

The DOE is targeting a balanced energy mix of one third coal, one third natural gas and one third renewable energy, Energy Undersecretary Loreta Ayson said in a press briefing prior to the Asia-Pacific Economic Cooperation (APEC) Energy Ministers’ Meeting here.

Ayson said the Philippines will gradually reduce dependence on coal-fired facilities and encourage more renewable energy projects in line with the APEC goal to double renewable capacity in the region by 2030.