The Board of Investments granted fiscal and non-fiscal incentives to the P1.34-billion gas turbine power plant of Southwest Luzon Power Generation Corp. in Calaca, Batangas province.
The BoI gave the project non-pioneer incentives after starting operations in March under the current Investment Priorities Plan that includes power generation in the preferred investment activities under the energy category.
The project consists of two General Electric mobile gas turbine power generating units with a combined rated capacity of 46 megawatts using diesel as fuel.
The electricity generated will be delivered to the Luzon grid under an ancillary service provider contract with National Grid Corporation of the Philippines.
Similar to those used in jet aircraft, gas turbines can be operated to provide full power usually in as fast as 10 minutes from start-up.
“In times of peaked energy demand especially during the summer, this plant can provide the crucial backup to base load plants in avoiding power outages,” said Trade Undersecretary and BoI managing head Ceferino Rodolfo.
The power generation project would provide relief to industries within the area to operate at full capacity, he added.
The power plant is equipped with ancillary support facilities such as control room, noise deflectors, switchgear, a transformer and a billing meter.
Fuel will be available from the two newly-fabricated diesel day tanks, which are in turn fed by a large storage tank fabricated specifically for the project.
In addition to the combined capacity of recent BoI-approved power generation projects in Luzon, the gas turbine-run power project is still within the target capacity installation limit set under the current IPP specific guidelines for energy.
Oil-based power installed capacity in the country as of June 2016 remained at 3,446 MW, or 18.2 percent of the total supply with a dependable capacity at 3,003 MW, or 16.75 percent.
The Luzon grid Luzon accounted for over half of oil-based electricity with 2,133 MW.
Southwest Luzon is controlled by Semirara Mining and Power Corp., which in turn is a member of DMCI Holdings Inc. owned by the Consunji Group, one of the country’s largest conglomerates.
Southwest already operates a 300-MW base load coal plant in the same area in Batangas.
Sem-Calaca supplied 5.8 percent of the total system demand for Luzon and Visayas.
The company also declared commercial operations for its 300-megawatt coal plant expansion in Calaca, Batangas last year.
Sem-Calaca owns the existing 600-MW coal plant that it acquired from the government. It is also pursuing a 700-MW coal plant expansion in joint venture with Meralco PowerGen Corp.
Sem-Calaca recorded net income after tax to P12.05 billion in 2016, up from P8.49 billion in 2015.