CEDC fires up first boiler

CEBU, Philippines - Two weeks ahead of the targeted schedule, the Cebu Energy Development Corporation had the initial firing of boiler number one of the three 82 MW coal-fired power plants built by the Metrobank Group-led power consortium in Toledo City.

CEDC President and Global Business Power Corporation president Jesus Alcordo along with their partners, led the firing of the first boiler last Sunday, January 17 in Brgy. Daanlungsod, Toledo City.

The power consortium is composed of the Metrobank Group, Global Business Power Corp. (GBPC), AboitizPower Corp., Vivant Energy Corp. and Formosa Heavy Industries Corp.

Alcordo said that the initial firing of the first boiler is a milestone in their plans of putting up three 82 MW clean coal fired plants since it would signify the success in their goal and an assurance that everything installed would be doing well.

He said that with the first boiler already started, it bares open their confidence to the public that they will proceed and that they are committed to finish the projects by this year without any problem.

Alcordo explained that with the energy supply going negative last year and reaching a critical limit, they are hoping to give solution to this through the three 82 MW coal-fired plants which is scheduled to be fully operational by the end of this year.

The second boiler is set to be launched by May and the third by December.

According to Alcordo, the P23 billion project would give added supply to Cebu and could give 32 MW worth of reserve supply. “We hope to correct the deficit.”

As of their last data, dated January 11 of this year, Alcordo said that Cebu imported 254 MW from Leyte to give additional supply to the increasing demand of 549 MW.

He explained that while the dependable capacity is 293 MW and there should be a reserve of 128MW, Cebu ’s energy supply had a deficit of 113MW.

Alcordo said that from the Cebu-Negros-Panay grid, 49 MW came from Leyte however the capacity of the geothermal plant in Negros is only 194MW and with the importation of Leyte which has a supply demand of 218MW, it still results to insufficiency of supply.          

All in all, Alcordo said that there is a 208MW deficit for the entire CNP grid since there is a demand 978 megawatts from the provinces. It’s total reserve is only 228MW but the dependable capacity is at 639MW and they need to import as well 567 MW to meet the whole demand and supply chain but could only import 359 MW.

By the end of 2008, reserves reached zero said Alcordo resulting to rotating brownouts in Cebu and the bogging down of ageing power plants that has been used for years.

In Cebu, Alcordo said that energy supply is added through the supply by the Cebu thermal plant 1 and 2, Cebu Diesel 1 and 2, Cebu Private Power Corporation, East Asia Utilities Corporation and the Toledo Power Company.

Alcordo said that this is the time that clean-coal power plants should be given a chance so that the current insufficient energy situation would not push forward for this year.

This is while a lot of individuals and groups have criticized the company for pushing forward for coal-ash rather than renewable energy that is said to be safer for the environment.

However, Alcordo said that their coal is not toxic and all their operations are ensured safe for the people and the environment.

Alcordo said that it does not mean that they are putting up coal-fired power plants, they are not for renewable energy anymore.

He said that in fact, they are fully supporting the use of renewable energy. “We believe that renewable energy is the future, but given the present technology and investment constraints, we believe that clean coal is still the best option for base load power plants and requirements.”

Alcordo said that they assure that while they are for development and at the same time for the boost of the economy, they are still protecting the environment.

Aside from these developments, through the projects, GBPC has acquired the Toledo power plant and made possible the different expansion plans as well as the re-opening of Atlas Mining Corporation, now known as Carmen Copper Corporation.

CEDC Chairman Francisco Sebastian said that this has generated thousands of employment opportunities and has made millions of revenues for the province and the country.

The project amount is said that to be largest single project for power in the province with Formosa as the technical, financial and operating partner that has large projects in other countries of around 14 thousand MW of clean coal.

George S.K. Ty, Chairman of the Metrobank group of companies shared that this is one of the projects of the company in terms of dealing with power and they hope to help address the problem of energy insufficiency.

“The most expensive power is no power at all,” Ty said.