LOOKING at ensuring energy security in the Luzon grid by 2010 and 2011, Korea Electric Power Corp. (Kepco) has expressed willingness to possibly work with TeaM Energy Corp. in expanding the 1,200-megawatt Ilijan natural gas-fired power plant in Batangas.

TeaM Energy is the project company of CrimsonPower Holdings Co. Inc., the consortium led by Tokyo Electric Power Co. Inc. and Marubeni Corp. which acquired the assets and business of Mirant Corp. in the Philippines. 

A source privy to the issues told reporters that Kepco is open take in TeaM Energy as its partner in expanding the Ilijan expansion by 300 megawatts, considering that TeaM Energy already has a 20-percent stake in Ilijan.

TeaM Enegy president Federico E. Puno earlier said his company plans to discuss with the existing consortium operating the 1,251-megawatt Ilijan natural gas-fired power plant to determine the probability of expanding its capacity by another 600 megawatts. He added, however, that the expansion of Ilijan depends on where the around 300-megawatt San Pascual power purchase agreement (PPA) goes.

Napocor has yet to decide where it will attach the San Pascual PPA project or if it will just put up an option that whoever wants to build the plant will have to bid for the said contract.

“If and when we get the San Pascual, then we have around 300 megawatts of contracted power off-take to Napocor, while the balance will be done on a merchant plant basis,” he added.

“There is also and always a need to expand the Ilijan looking on the longer-term to have new capacity by 2010 or 2011 [the critical period for Luzon],” the TeaM Energy official said. 

The source agreed that Kepco is also waiting for the Power Sector Assets and Liabilities Management Corp. (PSALM) to finally decide when it will bid out the San Pascual power purchase agreement (PPA) before it expands the Ilijan by 300 megawatts.

“We are still waiting for the decision from PSALM, but based on the Department of Justice’s legal opinion, the PPA should be bid out competitively,” the source said.

The San Pascual project was supposed to take up the remaining 300 megawatts from the 3,000-megawatt Malampaya deep-water gas to power project.

The 2,700 megawatts were distributed to 1,200-megawatt Ilijan power plant; the Lopez-owned 1,000-megawatt Sta. Rita power plant; and the 500-megawatt San Lorenzo power plant.

The construction of San Pascual plant did not push through with the excess capacity in the power system during that time. However, the proponents of the San Pascual had then signed a PPA with Napocor.

Based on the plan, PSALM will buy out the 25-year PPA contract of Napocor with San Pascual and assign the contract to Sucat power plant.

The Sucat power plant is envisioned to be converted into a gas-fired power facility, and the government has been working out the pretermination of the contract of San Pascual with US-based Edison Mission Energy since September 2002.

MEMBER countries of the Asia Pacific Economic Cooperation (Apec) are planning to integrate the existing 24 free-trade agreements, including five more trade deals under negotiation by the 21 economies, into a single trade pact for the nations in the Pacific Rim.

LOOKING at ensuring energy security in the Luzon grid by 2010 and 2011, Korea Electric Power Corp. (Kepco) has expressed willingness to possibly work with TeaM Energy Corp. in expanding the 1,200-megawatt Ilijan natural gas-fired power plant in Batangas.

THE Department of Agriculture (DA) would need a budget support of about P20 billion to enable the Philippines to achieve “98 percent self-sufficiency” in rice production by 2010.

SL AGRITECH Corp. (SLAC), one of the country’s three producers of hybrid rice seeds, is reviving its plan of developing a hybrid rice variant that is resistant to the dreaded pest called bacterial leaf blight (BLB) that can reduce yields.

THE Asian Development Bank (ADB) has earmarked $50 million to $100 million in assistance to the National Electrification Administration (NEA) that will be used to improve the financial and technical capabilities of the country’s 118 electric cooperatives.