By Leslie D. Venzon
MANILA, Oct. 5 (PNA) — The power unit of diversified conglomerate Ayala Corp. is venturing into various power projects, including a bigger one with installed capacity of 1,200 megawatts, in effort to contribute to meeting the country’s future electricity requirements.
“We do have various power plants coming online soon,” John Eric Francia, head of Energy & Infrastructure Group at Ayala Corp., said in an interview.
Francia said these projects include the 135-MW thermal power plant in Batangas, the 1,200-MW expansion segment of the existing coal-fired power plant in Bataan, a coal plant in Mindanao and wind and hydro projects.
“We want to get to 1,000 megawatts attributable to us. Right now, we are still at 350-MW range. But with these two big projects in Bataan and Mindanao hopefully, we will exceed the 1,000 megawatts. But it will take time,” he said.
Francia said the financial close for the Bataan and Mindanao power projects is expected to be reached next year.
He noted that one huge project costs more than USD 1 billion. Under the 70:30 equity ratio, the conglomerate is putting up USD 300 million in equity investments while the balance will be on project financing.
He added that the plant construction will take three to four years.
Francia said the conglomerate and the other industry players are building various power plants in the country.
“I think they will start addressing the medium- to long-term needs. 2015 will be tight as evidenced by what the DOE (Department of Energy) is saying,” he said.
Francia believes that power supply could be also tight in 2016 depending on completion of power plants.
“And hopefully, once 2017, 2018, 2019 come, if these all power plants really come online, that would ease the burden. In fact, by 2019, 2020, we might have more supply than demand,” he added. (PNA)