Dinginin power station

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Dinginin power station is an operating power station of at least 1336-megawatts (MW) in Diningin, Mariveles, Bataan, Central Luzon, Philippines. It is also known as Mariveles Power Plant.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Dinginin power station Diningin, Mariveles, Bataan, Central Luzon, Philippines 14.424599, 120.540992 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • Unit 1, Unit 2: 14.424599, 120.540992

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology Start year Retired year
Unit 1 operating coal - unknown 668 supercritical 2022
Unit 2 operating coal - unknown 668 supercritical 2022

Table 3: Unit-level ownership and operator details

Unit name Owner
Unit 1 GNPower Dinginin Ltd Co (GNPD) [100.0%]
Unit 2 GNPower Dinginin Ltd Co (GNPD) [100.0%]

Project-level coal details

  • Coal source(s): imported

Financing

  • Source of financing: Unit 2: US$830,460,000 in debt from BDO Unibank, Rizal Commercial Banking Corporation, Development Bank of the Philippines, Security Bank, China Banking Corporation, and Bank of the Philippine Islands, US$285 million in equity from Aboitiz Power Corp, Ayala Corporation, and Power Partners[1]

Existing Mariveles power plant

The existing Mariveles Power Plant is a two-unit, 600-megawatt (MW) coal-fired power station on the Bataan Peninsula, on the island of Luzon in the Philippines, owned by GNPower. The project consists of two 300 MW units using subcritical boilers. The plant went online in April 2013.[2]

New units: Dinginin power station

In 2013 plant owner GNPower said it planned to expand the power station by an additional 1,200, for a total of 1,800 MW. The initial Phase II, two additional 300-MW units, are planned to be completed by 2017 or 2018.[3][4][5] Phase III, an additional 600 MW, is targeted for 2022.[5]

According to an August 2013 situationer by the Philippines Department of Energy (DOE), the status of Units 3 and 4 is as follows:[3]: On-going presentation/proposal submissions to potential customers; Obtained LGU endorsements; BOI registration for 600 MW pre-approved; On-going SIS; On-going EIS for ECC application; Arrangements for securing the required land will be acquired by an affiliate Filipino company of GNPower; On-going negotiation with tenders; On-going finalization of EPC Contract; Commercial operation by 2018; Project cost is $1B.

In November 2014, Ayala announced plans to borrow $1.6 billion to finance construction of the Mariveles plant and the PsagCorp power station. The company hopes to finalize investments for the expansion in 2015.[6]

In October 2015, it was reported that GN Power Mariveles Coal Plant Ltd Co. was seeking to raise as much as US$1 billion by year-end to start construction of the first unit of the expansion in 2016. AC Energy Holdings Inc. president and CEO John Eric T. Francia said that financing would be in the form of loans. Francia said the company will "sign soon" an EPC contract. It was reported that the project had received clearance to undertake a grid impact study (GIS) on June 26, 2013, and had secured the necessary local government unit (LGU) endorsements in March 2015.[7]

In 2016 it was announced the plant would be 2 x 668 MW, and known as the Dinginin power station. Construction on the first unit began during 2017. Unit 1 is planned for 2019. The technology will be supercritical. Coal will be imported.[8][9]

According to the GNPower website, "The GNPower Dinginin Plant will initially consist of a 1 x 668 MW supercritical coal-fired power plant (with a one-time expansion option for an additional 1 x 668 MW supercritical unit) that will utilize an Alstom steam turbine generator."[10] Photos from December 2017 show one unit under construction. In late December, In May 2018, one report stated that AboitizPower "is building a 668-megawatt generator in Bataan."[11]

In December 2017, GNPower Dinginin was reported to have achieved financial close for the second unit, with US$1.7 billion provided by Philippine Banks.[12] Despite the closure of financing, as of June 2018 there are still no reports that Unit 2 has begun construction.

In February 2019 the Department of Energy issued a certificate of national significance to the project in order to streamline permitting and construction.[13] In April 2019 Aboitiz announced that Unit 1 would be commissioned in November 2019.[14] In August 2019 the DOE listed a target commissioning date of June 2020 for Unit 1 and September 2020 for Unit 2.[15]

In February 2020 GNPower announced that further construction of the plant would be delayed because Chinese engineers who will be part of the plant’s testing and commissioning processes were subject to a COVID-related travel ban.[16] Unit 1 was scheduled to go online in June 2020 and Unit 2 in September 2020 but the Philippine Electric Power Industry Management Bureau (EPIMB) and Department of Energy (DOE) confirmed that Dinginin was no longer included in the country's expected additional power supply for summer 2020.[16] On March 18, 2020 GNPower announced a new target date of October 2020 for commissioning Unit 1. The company also announced that workers were being shifted to Unit 2 which indicates that the unit is now under construction.[17] In April 2020 AboitizPower announced that Unit 1 would be commissioned in Q1 2021 and Unit 2 in Q2 2021.[18] The DOE's list of Initiated power projects for Luzon for October 2020 gives a commissioning date of March 2021 for Unit 1 and June 2021 for Unit 2.[19] In February of 2021, the company again pushed back the operation date for both units, citing travel restrictions do to the coronavirus pandemic.[20]

As of April 2021, AbolitzPower is targeting late 2021 for operation of Unit 1 and summertime 2022 for operation of Unit 2.[21] The March 2021 Philippines Department of Energy report on committed power projects states that testing and commissioning for Unit 1 is ongoing, with expected completion in June of 2021. The report lists December 2021 as the target operation date for Unit 2.[22] In September 2021 GNPower announced that completion of Unit 2 would be pushed back to Q3 2022 due to worker travel restrictions.[23] The DOE's list of Initiated power projects for Luzon for October 2021 gives a commissioning date of December 2021 for Unit 1 and March 2022 for Unit 2.[24] In December 2021 the Energy Regulatory Commission (ERC) cleared GN Power to operate the plant.[25]

As of April 2022, Unit 1 was reported as having been operational in 2022.[26] The DOE's list of Initiated power projects for Luzon for March 2022 gives a commissioning date of June 2022 for Unit 2.[27]

In August 2022, testing for Unit 2 was reportedly complete, but the unit was yet to be connected to the grid. The Final Certificate of Approval to Connect was already in effect.[28] The plant was facing technical difficulties that were affecting Luzon's entire grid.[29]

In October 2022, Unit 2 was reportedly set to come online by the end of the month.[30]

In November 2022, the second unit reportedly reached commercial operation.[31] In December 2022, Unit 2 experienced an unplanned shutdown.[32]

As of May 2023, both Units 1 and 2 were operating normally, as listed by the DOE. [33] Reporting in November 2023 stated that maintenance works had been successfully completed at the power station.[34]

Ownership

The project sponsor, GNPower Mariveles Coal Plant Ltd., is jointly owned by U.S. company Sithe Global Power (owned by the Blackstone Group) and the Philippine Ayala Corporation; Ayala acquired a 17.1 percent state in the project for $155 million in December 2012.[35][36]

In October 2016 the Philippines' AboitizPower acquired stakes held by Blackstone Group LP for US$1.2 billion. The acquisition involves a 66.1 percent indirect interest in both the existing Mariveles Power Plant and the Dinginin expansion.[37] In December 2016 an affiliate of Aboitiz Corporation completed a purchase of Sithe Global's interest in Dinginin Station.[38] In May 2019 Aboitiz acquired Ayala's share of the project, giving it a total ownership stake of 70.0%.[39]

Financing

In December 2017 GN Power secured financing for the plant's second unit from Philippine banks, but did not disclose these banks' names.[40] The total cost of the project is estimated to be US$1.7 billion.[40] Later reports revealed that BDO Unibank, Rizal Commercial Banking Corporation, Development Bank of the Philippines, Security Bank, China Banking Corporation, and Bank of the Philippine Islands provided US$830,460,000 in loans for Unit 2, while Aboitiz Power Corp, Ayala Corporation, and Power Partners provided US$285 million in equity.[1]

In 2017, the Philippine Movement for Climate Justice lodged a formal complaint against the International Finance Corporation (IFC) for its involvement in Philippine coal-fired power stations. The complaint alleged that the IFC had funded these projects through its financial support to Rizal Commercial Banking Corporation (RCBC). The Dinginin power station was one of 11 power stations for which the IFC's involvement was found to be sufficient to trigger the IFC's internal accountability process.[41]

In the second quarter of 2020, AboitizPower turned to the bond markets to try to raise capital for the project's construction. It was reported that it was trying to raise up to US$190 million by tapping individual retail investors. BDO Capital & Investment Corp., China Bank Capital Corp. and First Metro Investment Corp. were acting as joint issue managers and joint lead underwriters on the bond issues.[42]

Public opposition

The organizations Coal-Free Mariveles Movement and Bataeños for Environmental Justice have protested the proposed expansion at local hearings, together with what has been reported as strong opposition from local communities.[43]

In October 2017, protesters in Manila called on the Bank of the Philippine Islands to stop financing numerous coal-related projects, including the Dingimin coal plant.[44]

Articles and Resources

References

  1. 1.0 1.1 Bataan Coal-Fired Power Plant 2 (668MW), IJGlobal, July 23, 2020
  2. "Sithe Global" Mariveles Station, accessed December 10, 2013.
  3. 3.0 3.1 Energy Situationer 2013: Private Sector Initiated Projects, Philippines Department of Energy, 12 August 2013
  4. Alena Mae S. Flores, "600-MW coal plant connected to the grid," MST Business, Feb. 14, 2013.
  5. 5.0 5.1 Iris C. Gonzales, "Mariveles to host 3 power plants," Philippine Star, 23 June 2015
  6. Rivera, Danessa. Ayala Corp. to borrow $1.6B for Luzon, Mindanao coal-fired power plants. GMA News, 17 Nov. 2014.
  7. Danessa O. Rivera, "GN Power raising $1 B for Bataan coal power plant," Philippine Star, October 14, 2015
  8. "GNPower taps financing for power plant," The Manila Times, Sep 5, 2016
  9. "Dinginin Station," Sithe Global, accessed Dec 2016
  10. "GNPower Dinginin," Ayala website, accessed June 2018
  11. Ronnel W. Domingo, "Aboitiz sets P62-B capex for 2018," Inquirer, 21 May 2018
  12. "BRIEF-Ayala Corp Announces Financial Close of GNPower Dinginin Unit 2," Reuters, 11 December 2017
  13. GNPower plant gets priority status, Manila Standard, Feb. 14, 2019
  14. Additional power supply seen in November, Philippine Daily Inquirer, Apr. 22, 2019
  15. PRIVATE SECTOR INITIATED POWER PROJECTS (LUZON) COMMITTED, Philippine Department of Energy, 31 Aug., 2019
  16. 16.0 16.1 COVID-19 delays comm’l operations of Dinginin power plant, Manila Bulletin, Feb. 24, 2020
  17. Bataan coal plant completion delayed, Philippine Star, Mar. 18, 2020
  18. AboitizPower sets 2020 capex at P33-B, PNA, Apr. 27, 2020
  19. PRIVATE SECTOR INITIATED POWER PROJECTS (LUZON) COMMITTED, Philippine Department of Energy, 31 Oct., 2020
  20. Angelica Y Yang, Travel ban pushes back target commercial run of Dinginin power plant — AboitizPower chief, BusinessWorld, Feb. 17, 2021
  21. Myrna M. Velasco, Aboitiz Power sets P23-B capex for Dinginin, energy storage, Manila Bulletin, Apr. 28, 2021
  22. LUZON COMMITTED POWER PROJECTS, Philippines Department of Energy, Mar. 31, 2021
  23. Power plant’s second unit faces snag on travel woes, Business World, Sep. 20, 2021
  24. PRIVATE SECTOR INITIATED POWER PROJECTS (LUZON) COMMITTED, Philippine Department of Energy, 31 Oct., 2021
  25. Dinginin plant's operation boosts election power supply, mb.com, Dec. 31, 2021
  26. Dinginin plant forced outage affected 450,000 Meralco customers, Manila Bulletin, Apr. 20, 2022
  27. PRIVATE SECTOR INITIATED POWER PROJECTS (LUZON) COMMITTED, Philippine Department of Energy, 31 Mar., 2022
  28. LUZON COMMITTED POWER PROJECTS, Philippine Department of Energy, 31 Aug., 2022
  29. Bago pa lang, sablay na! Aboitiz family’s newest and biggest coal plant worsens Luzon’s power woes, Bilyonaryo, 21 Sept., 2022
  30. GNPower eyes Unit 2 operation this October, Punto! Central Luzon, 20 Oct., 2022
  31. AboitizPower’s core net income up 65% on Dinginin power plant’s contribution, BusinessWorld, 3 Nov., 2022
  32. Plant outages trigger another yellow alert in Luzon, Manila Bulletin, 5 Dec., 2022
  33. Ian Nicolas Cigaral, "List of Existing Power Plants -- Luzon,", Department of Energy, April 28, 2023
  34. Aboitiz Group’s Great Transformation surges ahead with 2024 goals, BWorld Online, November 16, 2023
  35. Doris C. Dumlao, "Ayala Corp. acquires stake in Mariveles coal-fired power plant," Philippine Daily Inquirer, December 17, 2012
  36. "Sithe Global" Mariveles Station, accessed December 10, 2013.
  37. "Philippines' AboitizPower to buy power plant stakes for $1.2 bln," Reuters, Oct 4, 2016
  38. Dinginin Station, Sithe Global, accessed November 2018
  39. AboitizPower completes acquisition of AC Energy, May 3, 2019
  40. 40.0 40.1 GNPower Dinginin secures bank financing for second unit, BusinessWorld, Dec. 13, 2017
  41. CAO ASSESSMENT REPORT Regarding Concerns in Relation to IFC’s Investment in Rizal Commercial Banking Corporation (RCBC) – 01 (#30235, #32853, #34115, #37489) in the Philippines, IFC Compliance Advisor Ombudsman, April 2019
  42. Ian Nicolas Cigaral, "Aboitiz to raise P9.55 billion for thermal power expansion,", PhilStar, Jun. 22, 2020
  43. Group bucks GN coal power plant expansion, Headline Gitnang Luzon, 27 Jan. 2014.
  44. Activists protest financing of coal projects, Business Mirror, 5 Oct 2017.

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.