TWO ENTITIES participated in by Ayala and Aboitiz-led companies are seeking provisional approval from the Energy Regulatory Commission (ERC) for separate power purchase and sale agreement (PPSA) for two coal-fired power plant projects in Luzon.
GNPower Dinginin Ltd. Co. and Leyte IV Electric Cooperative (Leyeco IV) sought approval for an agreement covering 16 megawatts (MW) from the power plant it is building in Bataan.
Separately, GNPower Mariveles Coal Plant Ltd. Co. and Quezon II Electric Cooperative (Quezelco II) have applied for a power supply deal for 5 MW from a plant adjacent to that of GNPower Dinginin.
The ERC, which posted the applications last week, has set the pre-trial hearing for the two applications next month.
In the GNPower application, Leyeco IV said it receives 10 MW from existing suppliers out of its peak requirement of 12 MW. It forecast its peak demand for years 2017 to 2023 to hit 13.462 MW.
The agreement comes after the electric cooperative conducted the required competitive selection process along with other utilities to cover their combined projected demand.
Aboitiz Power Corp. last month secured the nod of the competition watchdog for its acquisition of a majority stake in GNPower Mariveles and a minority interest in GNPower Dinginin.
GNPower Dinginin is developing supercritical coal-fired power plant, with two identical units each, with a net capacity of 668 MW within a 61-hectare industrial property. It is expected to start commercial operations in 2019.
GNPower Mariveles owns a subcritical coal-fired power plant, including associated and auxiliary assets. The plant in Barangay Alasasin, Sitio Dinginin in Mariveles, Bataan consists of two units totaling 604 MW. It started operations in 2014.
In October, ERC granted provisional approval to the power purchase and sale agreements entered into by GNPower Dinginin and seven electric cooperatives in the Visayas, bolstering the future commercial viability of the company.
In granting provisional approval, the ERC said the final generation cost that could be recovered by the company would be determined in its decision.
Based on the terms and conditions of the PPSA, the parties plan to start delivery of power on Dec. 26, 2018. Part of the funds needed to build GNPower Dinginin’s facility will be sourced from the loans from banks, for which the provisional approval of the PPSA is a vital requirement for the release of the loan proceeds. — Victor V. Saulon
