The Department of Energy (DoE) is studying how a possible sale of the Malaya Thermal Power Plant in Pililla town, Rizal province will affect power supplies in country.
In an interview, Energy Assistant Secretary Leonido Pulido 3rd said his department wanted to determine if privatizing the 650-megawatt (MW) plant was needed and if its conversion into a liquefied national gas (LNG) or coal-fired facility was financially viable.
The DoE also wants to find out if a circular requiring the establishment of ancillary services should be issued, he added.
Ancillary services are those seen as necessary to support a plant’s transmission capabilities.
“That is part of the discussion right now: whether it is DoE, the Power Sector Assets and Liabilities Management Corp. or the investor,” Pulido said.
“But right now, honestly, I think we’re leaning toward DoE footing the bill.”
On a time frame for Malaya’s privatization, Pulido said there was no schedule yet because the study on the sale should be finished first.
The department’s Electric Power Industry Management Bureau (EPIMB) has been given a week to draft a memorandum on due diligence and will submit it to Energy Secretary Alfonso Cusi for approval.
DoE designed the MTPP as a must-run unit in a move to address sufficiency in power supply when operating plants in the grid suddenly become unavailable or stall.
It was first rehabilitated in 1995 by the Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement.
The plant consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.
Lagareon, J. S. (February 5, 2018). Energy dept studying Malaya power plant sale. The Manila Times. Retrieved from http://www.manilatimes.net/energy-dept-studying-malaya-power-plant-sale/378275/