Power firms seek faster OK of coal plant sales agreements

Power generators urge the Energy Regulatory Commission ( ERC) to fast- track the approval of power sales agreements ( PSAs) for baseload coal- fired plants to prevent power shortage in the future.

DMCI Holdings Inc. chairman Isidro Consunji said among the deals which should be approved at the soonest possible time include that of St. Raphael Power Generation Corp., Semirara Mining and Power Corp.’s joint project with Meralco PowerGen Corp. (MGen).

“I think Meralco sent (PSA applications for over) 3,000 megawatts (MW) for approval with the ERC… ERC should act on one of these as soon as possible. If not, we may experience power shortage even before the Duterte administration closes,” he said.

The Meralco PSAs, totalling 3,551 MW of contracted capacity, were submitted to the ERC on April 29, 2016 to to secure electricity requirements in the next six years.

Included in the applied PSAs is the 400-MW supply deal between St. Raphael and Meralco.

The approval of PSAs will be the basis of financial closing for the power projects, the company official said.

“It takes three, four, five years to get a plant running,” Consunji said. “(St. Raphael’s start of commercial operations) will depend on the ERC (approval of its PSA).”

In April this year, Semirara sealed its partnership with MGen for a 2x350-MW coalfired power plant in Calaca, Batangas, under joint venture vehicle St. Raphael.

Initially, Semirara and MGen will have a 50- 50 interest in the company, until another partner comes in, Consunji said.

The project has secured an environmental compliance certificate (ECC) on Sept. 17, 2015 from the Department of Environment and Natural Resources (DENR).