South Luzon Thermal Energy Corp. started the commercial operation of the second 135-megawatt unit of a coal-fired power plant in Calaca, Batangas, doubling the capacity of the project and providing additional power to the Luzon grid.
South Luzon Thermal, a joint venture between Trans-Asia Oil and Energy Development Corp. of the Phinma Group and AC Energy Holdings Inc. of Ayala Corp., said the second unit was now in full operation.
The power plant in Calaca utilizes clean coal or circulating fluidized bed technology to reduce emissions and minimize environmental impact.
South Luzon Thermal said in a statement construction of the second unit was completed in the second half of 2015. It was synchronized to Luzon power grid on Aug. 15 last year and passed reliability and performance tests early this year.
The first unit started operation on April 24, 2015 and achieved gross generation output of 553.8 gigawatt-hours by the end of 2015. The unit is currently under annual preventive maintenance.
South Luzon invested P23 billion in the 270-MW project.
The coal plant will operate as a baseload power facility and will sell its entire capacity to Trans-Asia through a 15-year power purchase agreement.
The coal plant, located in Barangay Puting Bato West, utilizes coal from Semirara Mining Corp.’s coal mines in Antique and from Indonesian coal suppliers.
South Luzon Thermal said it was also studying putting up another 600-MW coal-fired power plant as a part of the expansion of the 270-MW coal plant.
The 600-MW expansion project received an approval from the Energy Department to conduct the grid impact study for the proposed project.
The grid impact study will determine the capability of the grid to absorb the new power capacity.