The Energy Department approved the conduct of a grid impact study for Global Luzon Energy Development Corp., now controlled by First Pacific Co. Ltd., on its 670 megawatt coal-fired power project in Luna, La Union province.
The grid impact study will allow the company, a subsidiary of Global Business Power Corp., to determine the impact of the project to the transmission network in Luzon.
The two-by-335 MW coal-fired power generating facility is being built in Barangays Carisquis and Nalvo Sur, Luna, La Union.
Global Luzon has signed a power sales agreement with Manila Electric Co. for the supply of 600 MW from the plant. Meralco through Meralco PowerGen Corp., its power generation arm, owns a 14-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,” Global Business Power president Rolando Bacani said earlier.
“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 diclosed plans of expanding its power generation footprint of coal plants to Luzon last year.
Global Business power executive vice president Jaime Azurin earlier said the company might put up a power plant in Luzon, outside of its existing power projects in the 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 the Visayas. Its power plants are strategically located in Cebu, Iloilo, Aklan, and Mindoro.
The company has an ongoing 150-MW expansion project in Barangay Ingore, Lapaz, Iloilo City through unit Panay Energy Development Corp.