Reliance Energy Development Inc., a power producer controlled by conglomerate San Miguel Corp., plans to construct a 300-megawatt liquefied natural gas combined cycle power plant at San Carlos City Ecozone in San Carlos City, Negros Occidental at a cost of P18.5 billion.
Documents submitted to the Department of Environment and Natural Resources showed that REDI’s power plant would be composed of four units, with 75-megawatt capacity each.
“The proposed power plant of REDI will help augment the demand for reliable and affordable power supply,” the company said.
REDI cited the Department of Energy’s Philippine Energy Plan 2020-2040 where peak electricity requirements will increase by almost four times, or equivalent to a 6.6-percent annual growth rate to 54,655 MW by 2040 from 15,282 MW in 2020.
The Philippines will need to increase the total installed capacity on the system by 69,400 MW to 95,700 MW from 26,300 MW in 2020.
“The proposed project will also support DOE’s advocacy to shift to cleaner source of energy to reduce the GHG emissions from the energy sector,” the company said.
REDI said natural gas is a more flexible, secured, environment-friendly and cost-effective source of energy.
It said the combined cycle power plant technology has higher efficiency of greater than 60 percent on full load. This type of fuel emits 30 percent less carbon dioxide compared to fuel oil, and 45 percent less carbon dioxide than coal.
Project construction is expected to start by the third quarter this year and is estimated to be completed by the first quarter of 2024. The target commercial operation is in the third quarter of 2024.
“The proposed power plant will not only supply enough electricity to Filipino households and businesses but will also contribute to national development,” the company said.
Around 800 to 1,000 workers will be employed for the construction phase of the project, with local workers to be prioritized in hiring.
REDI is a wholly-owned subsidiary of SMC Global Power Holdings Corp., one of the largest power companies in the Philippines with a diversified portfolio utilizing a mix of coal, natural gas and hydroelectric plants.