SMGP unit gets Sual coal plant
By Lenie Lectura – October 28, 2024
from Business Mirror
THE government, through the Power Sector Assets and Liabilities Management Corp. (Psalm), has turned over the 1,200-megawatt (MW) Sual Coal Fired Thermal Power Plant (CFTPP) in Pangasinan to Sual Power Inc. (SPI), a subsidiary of San Miguel Global Power (SMGP).
The Sual CTTP has been providing electricity to the Luzon grid since 1999 under a build, operate and transfer (BOT) scheme between TeaM Energy Corp. and the Philippine government, then represented by the National Power Corp. (NPC), that ended on October 25.
SPI was appointed as the independent power producer (IPP) administrator for the Sual power plant under an administration agreement signed in 2009. IPPAs are qualified private sector entities that manage the output from the contracts that NPC entered into with the independent power producers.
On the same day of TeaM Energy’s transfer of the Sual CFTPP to NPC and Psalm, SPI received the facility from Psalm. This was pursuant to the IPPA Administration Agreement between SPI and Psalm. SPI’s IPPA Administration Agreement with Psalm that ended on the day of the transfer of the plant to Psalm from TeaM Energy, giving it the right to take ownership of the plant.
“We completed last October 25 the turn-over of the Sual Power Station to NPC and Psalm,” said Mitsuhiro Kojima, Officer in Charge of TeaM Energy.
“For the past year, there has been close coordination with NPC, Psalm and [SPI] to ensure a seamless transition process. The plant has been turned over in excellent condition, ready to continue generating electricity for the Luzon grid,” he added.
For more than 25 years, the Sual Power Station has contributed to the development of the Philippines by generating reliable, cost-effective energy.
“The TeaM Energy organization is especially proud to have done its share in helping the Philippines recover from the Covid-19 pandemic despite the challenges and obstacles we faced in running the plant during those days,” Kojima said.
Located in the municipality of Sual in Pangasinan, the 1,200 MW net coal-fired facility consists of two 600-MW net generating units. The facility is one of the largest power plants in the country. Its presence has helped transform Sual from a fifth-class municipality in 1994, into a thriving, progressive first-class municipality at present.
Kojima expressed gratitude to several entities “for enabling the Sual plant’s success.”
“We will be leaving the plant in the hands of a capable, highly-respected organization. It has been a great pleasure working with them,” he added.
TeaM Energy will continue to operate the 735 MW Pagbilao Power Station in Quezon Province. It also maintains a 50-percent stake in the 420 MW Pagbilao Unit 3 Power Project.
