Semirara keen on building new coal-fired power plant
BY LENIE LECTURA – MAY 8, 2023
from Business Mirror
Consunji-led Semirara Mining and Power Corp. (SMPC) will pursue plans to develop a 700-megawatt (MW) coal-fired power plant, via subsidiary St. Raphael Power Generation Corp., as part of its long-term goals to further grow its power generation business.
“We are open to purchasing other plants but the prices being offered in the market makes it better for us to pursue developing new plants like our San Rafael rather than purchase existing plants,” said SMPC Chairman Isidro Consunji.
The 700MW power project under St. Rafael was supposed to be a joint venture between SMPC and Meralco PowerGen Corp. (MGen), the power generation business of Manila Electric Co. However, both firms decided to call off the project due to transmission line constraints.
Transmission lines are vital to the successful operation of power plants. In this case, the needed transmission lines will connect the planned power plant and allow its full dispatch.
SMPC is the country’s largest domestic coal producer. It supplies affordable fuel to power plants, cement factories and other industrial facilities across the Philippines.
Under its power business, SEM-Calaca Power Corp. (SCPC) owns the 2×300-MW Calaca coal-fired power plant in Batangas which it acquired from the government in 2009 with its bid of $362 million. Southwest Luzon Power Generation Corp. (SLPGC) runs the 2×150-MW coal power facility also in the same area.
SMPC President Maria Cristina Gotianun said the power segment dealt with its own set of setbacks. She said a defective equipment from GE sidelined SCPC Unit 2 for the most part of the year. The three other plants, meanwhile, faced severe cost pressures because of skyrocketing coal prices and unplanned outages.
“GE, so far has been cooperating with us, and unit 2 is performing right now even at a derated capacity. The root cause analysis will come out in May and hopefully with that, they can continue to support us or even improve in the performance of the unit 2 generator,” said Gotianun.
As SMPC moves forward, it expects global coal prices to consolidate on economic softening, high fuel inventories and warm winter in Europe.
Wholesale Electricity Spot Market prices, it added, should remain elevated but will likely trend lower year-on-year due to secondary price caps and easing fuel prices.
“Potential upside drivers include strengthening post-pandemic demand, our high uncontracted capacity and improved performance of SCPC Unit 2,” added Gotianun.
