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Friday, March 29, 2024

Aboitiz unit signs power supply deal with Meralco

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Therma Mobile Inc., a unit of Aboitiz Power Corp., said Monday it signed a power supply agreement with Manila Electric Co. that will boost supply in Luzon in time for the May elections. 

“This contract is a timely response of both Aboitiz Power and Meralco to the call of government for stable and reliable power going into the mid-term elections and beyond,” said Aboitiz Power oil business unit president and chief operating officer Celso Caballero III.

TMO operates four floating power barges moored in Navotas with a combined capacity of 242 megawatts. TMO will provide Meralco with up to 200 MW of additional power.

The facility went into preservation mode on February 5 and voluntarily disconnected from the grid and de-registered from the energy market. 

The barges are expected to be registered again with Independent Electricity Market Operator of the Philippines Inc., operator of the Wholesale Electricity Spot Market. Meralco expects to secure supply from the power barges starting on April 26.

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The oil-fired barges in Navotas are considered ideal for providing peaking supply and ancillary services with their operational flexibility and the ability to start up quickly to respond to the needs of the grid.

Aboitiz Power unit Therma Visayas Inc. will also deliver the full capacity of 340 MW from its coal-fired power plants in Toledo City, Cebu starting next month that is seen to boost power supply in the Visayas and Luzon.

The first 170-MW unit is already delivering power while the second 170-MW unit is expected to come online by next month. The facility is a joint venture between Aboitiz Power and Vivant Corp.

“We are happy to have brought Therma Visayas online just in time to support the government’s call for more reliable energy supply as we head towards the midterm elections,” said Aboitiz Power’s coal business unit president and chief operating officer Danel Aboitiz. 

The plant will deliver power to Visayan Electric Co., Inc. and other electric cooperatives, as well as to open access customers in Luzon and Visayas. 

“By having a reliable baseload plant on the island of Cebu, the residents and investors on the island will enjoy a number of economic and strategic benefits that include increased energy security, more competitive prices, and local employment,” said Aboitiz.

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