RP Energy weighs options on 600-MW Subic plant

Redondo Peninsula Energy, Inc. ( RP Energy) is weighing its options on the stalled 600-megawatt coal-fired power plant in Subic.

RP Energy is a consortium composed of Meralco Power Gen (MGen), Aboitiz Power Corp. and Taiwan Cogeneration International Corp.

The power project faced a lengthy legal battle with environmental groups since 2010.

In February, the Supreme Court finally ruled in favour of RP Energy but the consortium still was unable to move forward because the existing transmission facilities in the area could only accommodate 300 MW.

In a recent briefing of conglomerate Metro Pacific Investments Corp. (MPIC), Meralco group treasurer and first vice president Rafael Andrada said the consortium is in talks with the grid operator National Grid Corp. of the Philippines (NGCP) to provide additional transmission capacity that would accommodate 600 MW.

“The current position is that we’re evaluating how we can best extract values (on 300 MW and on 600 MW),” Andrada said.

For now, he said the consortium has not given up on putting up a 600 MW facility and continues to negotiate with NGCP to upgrade its existing transmission facility in the area.

“The 600 MW was good to go in terms of the permits. But the existing transmission facilities could only accommodate 300 MW so we’re looking at ways and means to be able to try and address that by securing our own right of way to provide the additional transmission facilities or discuss with NGCP on how to accommodate this project moving forward because they are up for a reset anyway so we’re looking at discussions on how they can accommodate that,” Andrada said.

The most feasible option, he said, is for NGCP to just upgrade its existing transmission facility.

“That’s the viable option as that would be the easiest because it reduces risks pertaining to acquisition of right of way,” Andrada said.

The power plant, originally targeted to be in place in 2016, faced strong opposition among environmental groups, which filed a Writ of Kalikasan case.

The Subic Bay Metropolitan Authority (SBMA) faced criticisms from some oppositors to the plant, saying that the SBMA should not allow the plant to locate in the free port zone because of its impact on tourism and the environment.

But RP Energy proponents said they are strongly committed to working with all concerned government agencies in ensuring a reliable, sustainable, and competitively priced supply of power that will contribute to the continued progress of the country.

The plant, proponents said, would provide the Luzon grid with much needed capacity and additional reserves.