San Miguel to push for new power projects
SAN MIGUEL Corp. (SMC) said it will continue putting up new power projects, amid the pending implementation of the competitive selection process (CSP) which favors the lowest-cost provider for consumers.
鈥淲e submit ourselves to CSP. We have already advised Meralco (Manila Electric Co.) to start the CSP process. I think narinig naman din natin na everybody will abide. Para sa akin, kahit anong gawin nila na pricing, basta kami sasaali at lalaban sa bidding (I think we鈥檝e heard that everybody will abide. For me, whatever they will do with the pricing, we will still join the bidding),鈥 SMC President and Chief Operating Officer Ramon S. Ang told reporters at the firm鈥檚 headquarters on Tuesday.
He added that the Supreme Court decision to push through with the implementation of the CSP was expected.
鈥Wala naman tayo magagawa talaga diyan at nung araw ko pa 鈥檡an sinasabi sa inyo. Ang taas kasi ng presyo at paano naman tatanggapin ng bayan 鈥檡an? Syempre tinignan ng court ang present value today na very low, talagang di papayagan. Ine-expect na namin 鈥檡an noon pa (We can鈥檛 do anything and I have been saying this before. The price of power is high and how can people accept that? Of course, the court is looking at the present value which is low, so it will not be allowed. We have expected this,鈥 Mr. Ang added.
As such, the company remains bent on putting up, among others, the four 150-megawatt (MW) circulating fluidized bed (CFB) coal-fired power plants in Bataan.
SMC, through its power subsidiary, SMC Global Power Holdings Corp., is geared toward expanding its renewable energy portfolio while developing clean coal power plants.
The said CFB coal projects, estimated to cost $2 million per megawatt, are under Mariveles Power Generation Corp. which has a power supply agreement (PSA) with Manila Electric Co.
Besides Mariveles Power Gen, another SMC power unit, Central Luzon Premiere Power Corp., has a PSA with Meralco.
The CSP is a form of competitive public bidding intended for distribution utilities鈥 purchase of electricity from generation companies, in securing power supply agreements.
The rule became effective on June 30, 2015 through a circular the Department of Energy (DoE) issued then. Its implementation, however, was suspended by the Energy Regulatory Commission (ERC) for over 400 days.
The DoE said it will release the list of affected PSAs once received from the ERC which will also issue the guidelines for the CSP. 鈥 Janina C. Lim
