China may build clean coal power plants in Luzon, Cebu

By Victor V. Saulon
Sub-Editor
CHINA may build four coal-fired power plants in the Philippines with a total capacity of 1,500 megawatts (MW), after the Department of Energy (DoE) sought Beijing’s help in bringing down electricity costs.
“I requested the head of NEA (National Energy Administration of China) to help the Philippines,” DoE Secretary Alfonso G. Cusi told reporters.
He was referring to the bilateral meetings that the country’s representatives had with their counterparts in China during President Rodrigo R. Duterte’s visit in April for the Boao Forum for Asia in Hainan province.
“The second thing that we asked during that meeting is that if they can help us put up power plants in the Philippines,” Mr. Cusi said.
He said the meeting with NEA resulted in the signing of a memorandum of understanding (MoU) for a “master plan” for the country’s distribution and transmission sectors.
He said with China’s “expertise” and “vast experience” the Philippines could learn to improving its energy industry. He said the Philippines does not need to “re-invent the wheel” when a Chinese template is available.
Mr. Cusi said he asked China to build power plants in the Philippines to sidestep the uncertainty created by the need for investors to secure power supply agreements (PSAs), after which banks can supply financing.
He said PSAs have produced high power prices by locking consumers into long-term contracts.
“Our objective is to drive down electricity tariffs… and the answer is to increase capacity, and [in] trying to increase capacity there must be investors willing to put up power plants,” he said.
Mr. Cusi said a Chinese company, which he identified as China Energy Development Corp., is in the country to look at possible sites.
Asked about the capacity of the planned power plants, he said: “Two 150 [MW] in Cebu, two 600 [MW] in Luzon.”
“I think they’re already looking in Cebu, three sites, and then in Luzon,” he said.
He said the Chinese company had given its assurance that the facilities it plans to build will use the latest clean coal technology or ultra-supercritical coal-fired power plants.