Naga power station
|This article is part of the GEM.wiki coverage of the The Philippines and coal|
Naga power station, also known as the Cebu power complex, is a 206-megawatt (MW) coal-fired power plant complex in Cebu Province, Philippines.
The map below shows the existing plant station, in Colon Barangay, Naga Municipality, Cebu Province. The original two-unit Naga-1, owned by Aboitiz, is visible to the left, and the newer Naga-2, owned by KEPCO SPC, is on the right.
Background on Naga-1 and Naga-2
Naga power station originally comprised five power plant units: the 43.8-megawatt (MW) Cebu Diesel Power Plant, the Naga-1 power plant (Unit 1 - 50 MW, Unit 2 - 55MW), the Naga-2 power plant (Unit 1 - 103 MW, Unit 2 - 103 MW), and the 55 MW Land-Based Gas Turbine Plants 1 & 2. CTPP1 and CTPP2, which burn coal, are also referred to as Naga-1 and Naga-2.
The two-unit, 105-MW coal-fired Naga-1 power station was completed in 1981-86. The plant was originally owned by SPC Power Corp., a subsidiary of Salcon Power (60%) and Korea Electric Power Company (KEPCO) (40%); it was privatized and sold to this consortium in October 2014, in what has been called a "windfall" deal for the plant's new owners. The additional two-unit, 206-MW coal-fired Naga-2 plant was completed in 2010-11 by Salcon and KEPCO. The Naga-1 power station was retired in 2015 as part of the Naga-3 expansion plans (see below).
Proposed Naga-3 expansion
In July 2014, Salcon Power announced plans to build a new two-unit, 200-MW coal-fired Naga-3 coal plant, and to scrap the original Naga-1 plant rather than pursue a previously-awarded government contract to refurbish it. The mayor of Naga City, who had protested the planned rehabilitation of Naga-1, welcomed the decision to close it and build new units instead. The feasibility study was begun in September 2014. The mayor of Naga said in November 2014 that construction would likely not begin until late 2015. The Naga-3 coal plant has also been described as 300 MW (2 x 150 MW) in size.
As part of the expansion plan, demolition of the Naga-1 plant was slated to begin in July of 2015. However, it is unclear how far demolition progressed before ownership of the facility was transferred to Aboitiz in 2018. In the December 2015 Philippines Department of Energy list of operating power plants in the Visayas region, the Naga-1 generators are listed as having 0 MW of capacity. In the December 2016 list, Naga-1 has been removed altogether.
As of December 2016 there was no news as to whether construction began on the new units, and plans appeared to be tied up over ongoing disputes over the ownership of the Naga-1 plant.
In July 2017, Aboitiz, the parent company of Therma Power Visayas Incorporated (TPVI), announced that it would "upgrade the facility and put up a more efficient power plant" but did not say if this would include an increase in capacity. Aboitiz is waiting for the Power Sector Assets and Liabilities Management Corp. (PSALM) to officially turn ownership of the facility over to TPVI.
As of November 2018 there had been no further news about the expansion and it appears to have been cancelled. No expansion plans are included in the Philippines Department of Energy's December 2020 reports.
In April 2016, the purchase of the facility by SPC Power was challenged in court, and the Supreme Court upheld its nullification of the sale, indicating that Therma Power Visayas would become the owner of the plant. The Supreme Court reaffirmed this ruling in February 2017. In May 2018 Therma Visayas was awarded ownership of the facility and took ownership in July 2018. The transfer only applied to the retired Naga-1 generator units and one diesel-fired facility. The two Naga-2 units are still owned and operated by Kepco SPC.
In June 2021, KEPCO had to find 24 different insurers to cover $556 million USD for the operation of the Naga power station. 11 of these insurers did not insure any other KEPCO project, and one did not even have the typically expected A-credit rating.
In October 2022, KEPCO was allegedly trying to sell off its coal and gas assets. They had lost the company an unprecedented $12 billion USD in the first six months of the year.
- Sponsor: KEPCO SPC
- Parent company: KEPCO
- Location: Colon Barangay, Naga Municipality, Cebu Province, Philippines
- Coordinates: 10.21755, 123.76058 (exact)
- Status: Retired (Naga-1 Units 1 & 2); Operating (Naga-2 Units 1 & 2); Cancelled (Naga-3 Units 1 & 2)
- Gross capacity: 206 MW (Naga-2 Units 1 & 2: 103 MW)
- Type: Subcritical
- In service: 2010 (Naga-2 Unit 1); 2011 (Naga-2 Unit 2)
- Coal type:
- Coal source:
- Source of financing:
Articles and resources
- "Naga Power Plant Complex," Kepco Philippines, accessed August 2015
- "Coal-Fired Power Plants in the Philippines," Power Plants Around the World, accessed August 2015
- Conrado Banal. Straying Power. Philippine Daily Inquirer, 18 Feb. 2013.
- PSALM turns over Naga Power Plant to Salcon Corporation, Philippines Today, 1 Oct. 2014.
- Aileen Garcia-Yap & Peter Romanillos. 2 coal-fired plants for Naga; Salcon rehab plant junked. Cebu Daily News, 2 July 2014.
- Led by City Mayor Naga locals air gripe on power plant move, City of Naga press release, 26 June 2014.
- Justin Vestil. Salcon Power bares plan to build new coal-fired plants in Naga. Cebu Sun Star, 26 Sept. 2014.
- New Naga City power plants may still take a year, The Freeman, 15 Nov. 2014.
- "Korean electric firm eyes another coal-fired plant in Cebu," Rappler.com, 16 March 2015
- Aileen Garcia-Yap, New P25-B power plant to rise in Naga in 2019, Cebu Daily News, May 30, 2015
- List of Existing Power Plants, Philippine Department of Energy, Dec. 31, 2015
- List of Existing Power Plants, Philippine Department of Energy, Dec. 31, 2016
- SPC willing to bid on the Naga Power Plant Complex again, Cebu SunStar, 31 May 2016.
- Aboitiz to upgrade Naga power plant complex, The Philippine Star, 19 Jul 2017.
- PRIVATE SECTOR INITIATED POWER PROJECTS (VISAYAS) INDICATIVE, Philippine Department of Energy, Dec. 31, 2020
- PRIVATE SECTOR INITIATED POWER PROJECTS (VISAYAS) COMMITTED, Philippine Department of Energy, Dec. 31, 2020
- Marites Villamor Ilano, "SC upholds nullification of Naga power plant sale," Cebu Daily News, April 13, 2016
- SC rules with finality on Naga power plant, The Freeman, 16 Feb 2017.
- Aboitiz takes control over Naga power plant, Cebu Sun Star, Jul. 16, 2018
- List of Existing Power Plants, Philippine Department of Energy, Dec. 31, 2020
- Thermal Power, KEPCO, Accessed May 26, 2021
- Korean power firm struggling to find cover for new coal projects, Insurance Business Asia, June 9, 2022
- South Korea's largest electric utility Kepco to offload coal and gas assets after US$12 billion loss, Eco-Business, October 14, 2022