The Energy Department and Semirara Mining and Power Corp. are set to sign an agreement to develop a 50-megawatt mine mouth, coal-fired power plant in Antique province that is expected to deliver reliable and cheaper power to Mindoro provinve and nearby areas.
Energy Secretary Alfonso Cusi said over the weekend power from Semirara’s mine mouth coal project would be delivered via submarine cable to address the electricity demand of Mindoro, considered an off-grid area.
Semirara, owned by the Consunji Group, is the country’s biggest coal producer with mining operations in Caluya, Antique province.
“The MoA (memorandum of agreement) will be signed. There will be a submarine cable worth P1.4 billion… Mindoro’s economic landscape will change (because of the project),” Cusi said.
He said the project would undergo a competitive selection process and expressed confidence of receiving bids from electric cooperatives due to the costly P14 per kilowatt-hour cost in the area.
Cusi said the project would likely be completed in the next three years.
“We’re just permitting. EPC (engineering, procurement and construction contractor) will be chosen by Semirara,” the energy official said.
Cusi expects island provinces like Mindoro, Marinduque and Romblon to be connected to the power plant in order to enjoy reliable power supply.
“The problem is we have 7,000 islands. Very few have consistent power for 24 hours, most of them just eight at 10 hours,” he said.
“For the country to be developed, it should not only be the mainland that will get power. We should also help develop island provinces so they can develop industries because now power is intermittent in those areas,” Cusi said.
He said the government was trying to find a solution for a “consistent” power supply at affordable prices.
“We are also talking of LNG (liquefied natural gas) but the problem is logistics nightmare in transporting the fuel,” Cusi said.
The Philippine Chamber of Coal Mines has been pushing for the development of coal-fired mine mouth power plants to address the country’s need for power at reduced generation cost.
PhilCoal officials said putting up power plants at the mouth of the coal mines would reduce transmission and transportation costs, which could increase the generation cost.
Officials cited 10 potential sites for mine-mouth power plants in proximity to the electricity grid and high-voltage direct current substations.
“For mine-mouth basically, we’re trying to remove the transport cost. Because if the plant is separate from the mine site, there’s handling that will add up to the cost of coal,” PhilCoal executive director Arnulfo Robles said earlier.
The cost of generating electricity from these sites is estimated to range between P2.61 per kWh and P4.45 per kWh compared with the average generation cost of P5.425 in 2014.
