Quezon power station

From Global Energy Monitor

Quezon power station is a 960-megawatt (MW) coal-fired power station in Quezon Province, the Philippines.[1][2]

Location

The photograph below shows the plant, in Cagsiay I Barangay, Mauban Municipality, Quezon Province.

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Background on Plant

Quezon power station was originally constructed as a single-united 440-MW coal-fired power plant in Quezon Province, which began operation in May of 2000.[3] The plant is owned by Quezon Power Philippines, a subsidiary of Thai company EGCO Group.[4] The plant occupies 87 hectares in the municipality of Mauban, Quezon Province, with a 31-kilometer transmission line that links into the national transmission network.[5]

In March 2020, due to the coronavirus pandemic, the part owner Meralco announced that the Quezon power station was operating with "a skeleton workforce".[6]

Description of Expansion

A consortium is currently building a second coal-fired unit with a planned capacity of 455 MW (previously described as 460 MW) at the site.[1] The second unit is sponsored by San Buenaventura Power, a joint venture that is jointly owned by Meralco PowerGen Corporation (a subsidiary of MERALCO) and EGCO Group.[7] The project was initially considered in 2007, was then dropped, and was picked up again in 2012.[8]

The project's sponsors applied for an amendment to the project's original 2007 environmental permit in June 2013. Final financing arrangements are not expected to be lined up until final permits are issued.[8] As of October 2014, sponsors were apparently also still negotiation the engineering, procurement, & construction (EPC) contract with potential contractors; San Buenaventura Power stated at that time that it was planning to proceed with construction in early 2015, and to complete the plant by Summer 2018. San Buenaventura also hopes to raise up to P40 billion ($900 million) in debt markets once permits are in hand and the EPC contract is negotiated.[9]

In February 2015, it was reported that the sponsors were seeking to have the construction of the plant fast tracked. According to the report, the sponsors were still finalizing a contract for engineering, procurement, and construction and that the project was targeted for 2018. The size of the expansion was now described as 455 MW.[10]

In May 2015, the Power Supply Agreement received approval from the Energy Regulatory Commission.[11]

In November 2015 Meralco said it was still searching for prospective partners for construction of the plant. Meralco Chairman Manuel Pangilinan said the project would require a partnership with a foreign firm to spread any possible risk “with the partner likely Japanese or Korean and probably not Chinese.” The power project, estimated at US$2 billion (P94.41 billion), would be undertaken by Atimonan One Energy.[12]

In December 2015 it was reported that ground-breaking ceremonies had been held on December 10, with Daelim Industrial Co. and Mitsubishi Corp. serving as the engineering, procurement, and construction contractor. Commercial operations were planned by mid-2019.[1] Senior-term loan lenders were reported to be BDO Unibank Inc., China Banking Corp.; Metropolitan Bank & Trust Co.; Philippine National Bank; and Rizal Commercial Banking Corp. BDO Unibank-Trust and Investments Group was the loan facility agent, and Metrobank-Trust Banking Group acted as collateral trustee. BDO Capital & Investment Corp. and First Metro Investment Corp. are joint bookrunners and joint issue coordinators. BDO Capital & Investment Corp., First Metro Investment Corp., Chinabank, PNB Capital and Investment Corp., and RCBC Capital Corp. were joint lead arrangers for the transaction.[1]

In October 2017 it was reported that construction of the 455 MW coal plant in Quezon province was more than halfway completed, with the project on track to start commercial operations by mid-2019.[13] In May 2018 it was reported that construction was 84% complete and that commercial operations might begin a few months later in 2019, due to delays caused by Tropical Depression Maring in September 2017 and Tropical storm Urduja in December 2017.[14]

In September 2018 the Department of Energy listed a scheduled commissioning date of December 2019.[15] In March 2019 the Department of Energy reported that construction was 98.15% complete as of January 31, 2019.[16] Unit 2 was commissioned in October 2019.[2] The Philippine DOE and various news reports now describe it as a 500-MW unit instead of 445 MW.[17]

Project Details

  • Sponsor: Quezon Power Philippines, Ltd. Co.
  • Parent company: MERALCO and EGCO Group
  • Location: Cagsiay I Barangay, Mauban Municipality, Quezon Province, Philippines
  • Coordinates: 14.2296, 121.7558 (exact)
  • Status: Operating
  • Gross Capacity: 940 MW (Unit 1: 460 MW[18]; Unit 2: 500 MW)
  • Type: Supercritical
  • In service: Unit 1: 2000; Unit 2: 2019
  • Coal Type: Subbituminous
  • Coal Source:
  • Source of financing: US$875,064,555 in debt from BDO Unibank Inc., China Banking Corp.; Metropolitan Bank & Trust Co.; Philippine National Bank; and Rizal Commercial Banking Corp.

Articles and resources

References

  1. 1.0 1.1 1.2 1.3 Alena Mae S. Flores, "Meralco starts work on Quezon coal plant," The Standard, 14 December 2015
  2. 2.0 2.1 Coal power plants flourish in the Philippines despite ‘climate emergency’, Mongabay, Oct. 28, 2019
  3. List of Existing Power Plants, Philippine Department of Energy, Dec. 31, 2020
  4. "Coal-Fired Plants Financed by International Public Investment Institutions Since 1994", Appendix to Foreclosing the Future: Coal, Climate and International Public Finance: Investment in coal-fired power plants hinders the fight against global warming, Environmental Defense, April 2009.
  5. "Quezon power station," Wikimapia, accessed Dec 2013.
  6. Meralco unit stops work on power projects, Manila Bulletin, Mar. 27, 2020
  7. "Quezon expansion" Alena Mae S. Flores, Manila Standard Today, December 6, 2013.
  8. 8.0 8.1 Private Sector Initiated Power Projects (Luzon), Philippines Department of Energy, 30 Sept. 2014.
  9. Feliciano, Claire-Ann. Funds sought for Quezon coal plant expansion. BusinessWorld, 29 Oct. 2014.
  10. Lenie Lectura, "Meralco, partners want new 455-mw plant in Quezon ready by 2018," Business Mirror, February 2, 2015 (cached)
  11. Richie A. Horario, "Meralco-San Buenaventura supply pact gets ERC nod," The Manila Times, May 21, 2015
  12. "Meralco searching for partners for Quezon coal plant project," Rappler, Nov 30, 2015
  13. "San Buenaventura plant on track to start operations by mid-2019," Business World, October 30, 2017
  14. Delays not hampering completion of 455-MW Quezon coal-fired plant, PhilStar, May 3, 2018
  15. 2018 Private Sector initiated power projects in Luzun (indicative) Philippine Department of Energy, 30 Sep., 2018
  16. PRIVATE SECTOR INITIATED POWER PROJECTS (LUZON) COMMITTED, Philippine Department of Energ, 31 Mar., 2019
  17. PRIVATE SECTOR INITIATED POWER PROJECTS (LUZON) COMMITTED, Philippine Department of Energ, 31 Aug., 2019
  18. Communication with Philippine Movement for Climate Justice, July 2021

Related GEM.wiki articles

External resources

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