Global Business Power Corp., a unit of GT Capital Holdings Inc. of tycoon George Ty, on Tuesday confirmed its first power project in Luzon—a 670-megawatt new station being built by a subsidiary in La Union
Global Business Power president Rolando Bacani said unit Global Luzon Energy Development Corp. would construct a two 335-MW coal-fired power generationg facility in Barangay Luna, La Union.
Global Luzon has already signed a power sales agreement with Manila Electric Co. for the 600-MW output of the plant.
Meralco through subsidiary Meralco PowerGen Corp. owns a 22-percent stake in Global Business Power.
“Yes, [it’s our first power project in Luzon]. Construction is third quarter 2018 and operation first quarter 2022. No ECC [environmental compliance certificate] yet,” Bacani said.
“We need to build higher-capacity units so that we can offer lower prices and bring down the cost of electricity. The largest unit that the Visayas Grid can accept now is only 150 MW,” he said.
Global Business Power, controlled by the Metrobank Group, last year disclosed plans of expanding power generation from coal-fired plants in Luzon.
Global Business power executive vice presidentJaime Azurin earlier said the company might put up a power plant in Luzon, outside of its existing projects in Visayas.
“Yes, we’re looking at Luzon. Yes [coal], but it has to be bigger in size to be able to lower the cost,” Azurin said.
Global Business Power is one of the leading independent power producers in Visayas. Its power plants are strategically located where high growth is expected, with generatiing stations in Cebu, Iloilo, Aklan and Mindoro.
The company has an ongoing 150-MW expansion project in Barangay Ingore, Lapaz, Iloilo City through subsidiary Panay Energy Development Corp.
A groundbreaking ceremony was held on March 2014, with commercial operations set by August.
Meralco also signed a power supply agreement with Panay Energy to purchase 70 MW. Aside from the 150 MW expansion, Panay Energy owns and operates the existing 164-MW coal plant in the same area.
Panay Energy earlier signed a 25-year electric power purchase agreement with electric cooperatives belonging to the Panay-Guimaras Power Supply Consortium.
The Panay-Guimaras consortium is an alliance of electric cooperatives in the Panay-Guimaras area formed to negotiate more competitive prices through aggregation of power requirements.
Iloilo Electric Cooperatives I, II and III, Antique Electric Cooperative and Guimaras Electric Cooperative signed an agreement with Panay Energy for the supply of 24 megawatts at the rate of P5.05 per kilowatt-hour, the lowest price of electricity in the Visayas.
Global Business Power last year started operations of the 82-MW coal-fired power plant of subsidiary Toledo Power Corp. in Barangay Daanlungsod in Toledo City, Cebu.
The Toledo plant supplies the power requirements of Carmen Copper Corp.’s mining expansion projects.