SMC Global Power expanding Masinloc coal plant by 630 MW

SMC Global Power Holdings, Inc., a unit of conglomerate San Miguel Corp., is pursuing the expansion of the Masinloc coal-fired power plant by 630 megawatts at a project cost of about P73 billion.

In documents submitted to the Department of Environment and Natural Resources, Masinloc Power Partners Co. Ltd, a unit of SMC Global, bared plans to expand the capacity of the power plant through the construction of units 4 and unit 5 capable of generating 315 MW and  315 MW of electricity, respectively.

MPPCL owns and operates the Masinloc coal-fired coal-fired power plants with Units 1, 2 and 3 in operation and Unit 4 under development at Barangay Bani, Masinloc, Zambales province.

MPPCL said the generated power from the units is delivered to the Luzon grid through two transmission lines running from Masinloc to the Kadampat substation. The plant’s site, meanwhile, has enough space to support the operation of an additional unit.

“In recent years, there has been an increasing demand for electricity, at the same time reducing carbon dioxide emission by adopting supercritical technology with higher steam pressure and temperature. To reduce CO2 emission and improve power generation, MPPCL has decided to utilize the same supercritical technology for Unit 5,” the company said.

MPPLC said smaller units were more popular and that the availability of a 315-MW size boiler and turbine had also increased in recent times, making it feasible to build such units at efficient cost.

It said the company is committed to cleaner energy generation wherever the  opportunity occurs.

“Also, financial institutions are showing more interest in providing loans to supercritical units than subcritical units. It is getting difficult to justify investment in coal-fired power plant unless there is clear effort in reducing carbon dioxide emission by increasing plant efficiency by adopting higher steam pressure and temperature,” MPPCL said.

MPPCL decided to install unit 5 between the ash storage facility and unit 4. It said the estimated cost of the project of unit 4 and unit 5 are P30 billion and P43 billion, respectively.

Prior to the acquisition of MPPCL by SMC Global in 2018, the former applied for an Environmental Compliance Certificate for the power plant expansion in 2011.

SMC Global has an installed capacity of 4,347 MW as of August.It is one of the largest power companies in the Philippines with a diversified portfolio, namely coal, natural gas and hydropower.

The company has a market share of 25 percent in the Luzon grid, eight percent in Mindanao and 19 percent in the national grid. The Luzon Grid represents 73 percent of the nationwide demand.

Topics: SMC Global Power Holdings , San Miguel Corp , Department of Environment and Natural Resources , Masinloc Power Partners Co
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