Kepco-SPC synchronizes coal plant to Visayas grid
MANILA – Kepco SPC Power Corp. has synchorized the first unit of its 200-megawatt Cebu coal-fired power plant in Barangay Colon, Naga, Cebu to the Visayas grid.
Kepco vice president Jang Pyo Lee said the power plant uses the circulating fluidized bed combustion technology, the most environment-friendly coal technology available to date.
The components of fly ash from this technology are way lower than the standard environmental regulation figures. The efficiency of this technology has been proven worldwide by the more than 1,300 CFBC units operating in different countries, some of which are even located in urban areas.” Lee said.
Kepco officials said the plant’s synchronization to the grid is one of the significant milestone prior to the commercial operation of Unit 1 in February 2011 and Unit 2 in May 2011.
Kepco said that even though it is still undergoing testing and commissioning during this period, the additional power that it will contribute to the grid will significantly help alleviate the deficiency in power supply in the Visayas region, particularly in Cebu, Negros and Panay.
“The Cebu power plant’s synchronization to the grid is very important to the Visayas power system. The result of the grid impact study conducted for the project showed that the power plant will not just increase the supply and reserve capacity, but would also contribute to the power quality in the grid,” the company said.
The power plant will bring social development for the locality aside from job creation . The host community of the plant will benefit one centavo per kilowatt hour of total electricity sales under the Energy Department’s Energy Regulation (ER) 1-94.
Kepco said the financial benefit may be used to fund rural electrification, livelihood and development projects, reforestation management, watershed rehabilitation, health and other environment preservation projects.
Doosan Heavy Industries of South Korea is undertaking the engineering, procurement and construction of the 200 MW coal plant, which is seen to significantly address the power requirements of the region.
Kepco has a 40 percent stake in the power project while SPC Power led by businessman Dennis Villareal owns the remaining 60 percent.
Kepco and SPC Power jointly own the Cebu coal-fired power plant which is estimated to cost0.671 million. Seventy percent of the total project cost was sourced from lenders including Asian Development Bank.
Kepco SPC has inked supply agreements with electric cooperatives in Cebu at a generation price of P4.2798 per kilowatthour “subject to adjustments in fuel, foreign exchange and local and foreign price indices.”*PNA
