Aboitiz subsidiary to open coal-fired power plant in Davao

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DAVAO CITY (MindaNews/30 December) — Therma South Inc. (TSI), a wholly owned subsidiary of Aboitiz Power Corp. will commission on Friday next week the 150 MW unit 2 of the coal-fed 300 MW Therma South Energy Project in Toril, Davao City.

The plant was scheduled to start operations in March 2016 yet.

TSI infused P25 billion for the construction of the 300-MW coal plant, which started in 2012 and completed in three years.

At least 50 MW of the generating capacity of TSI 2 and another 50 from TSI 1 has been contracted to Davao Light and Power Company, another Aboitiz firm.

“The power plant is one of the critical projects needed to finally solve the long-term perennial Mindanao power shortage,” a TSI statement said.

The supplies at least 20 electric cooperatives and distribution utilities across Mindanao.

The 150-MW first unit of TSI went on full commercial operations last Sept. 18.

The power plant will supply power to the cities of Davao, Cagayan de Oro, General Santos, Butuan, Kidapawan, Cotabato and Tagum, and the provinces of Davao region, Caraga region, Cotabato, Sultan Kudarat, Sarangani, parts of Bukidnon, parts of Misamis and parts of Zamboanga peninsula.

President Benigno Aquino III, Davao City mayor Rodrigo Duterte, and officials from the Department of Energy, Department of Environment and Natural Resources, and Aboitiz will attend the inauguration.

Since the 2012 power crisis, power companies have been encouraged to invest in Mindanao, but stakeholders said the island should achieve a 50-50 balance in power mix between hydro and fuel sources.

During a forum on power outlook for Mindanao last month, Noriel Christopher Reyes, science research specialist II at the Department of Energy’s Electric Power Industry Management Bureau, said four units of coal-fired power plants with a combined capacity of 550 megawatts will open by first half of 2016.

The San Miguel Power Corporation will start commercial operation of its two power plants, each having a capacity of 150 MW, in the second quarter, according to Reyes.

Davao City Chamber of Commerce and Industry Inc. president Antonio Dela Cruz III, in a text message to MindaNews said: “At the outset, we want to congratulate TSI and the Aboitiz conglomerate for its grand inauguration of TSI plant. This is a very positive development especially to the power sector and Mindanao. We can entice more investors to come especially here in Davao City.” (Antonio L. Colina IV/MindaNews)

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