AboitizPower to source coal from Indonesia for Davao power plant

Publicly-listed AboitizPower Corp. said Friday it is planning to get coal from Indonesia and other local suppliers for its planned 150-megawatt (MW) coal-fired power plant in Davao, which is aimed at augmenting Mindanao’s heavy dependence on hydropower as a source of energy. “Mindanao’s heavy dependence on hydropower has seriously eroded power supply reliability as it is highly vulnerable to weather conditions. Generating power with the use of coal will significantly reduce our dependence on hydropower," AboitizPower president and CEO Erramon Aboitiz said. Aboitiz pointed out that Mindanao will be facing a “continuing and debilitating" power crisis unless new power plants are built to cover this shortfall. Projected shortfall between power supply and demand in the region from 2010 to 2014 will reach 484 MW, according to AboitizPower. “AboitizPower wants to be part of the solution to the Mindanao power crises by building a circulating fluidized-bed coal plant within Davao City. Since time is of the essence, we are willing to take the risk and build this plant without bilateral contracts with wholesale buyers of electricity," Aboitiz said. Aboitiz said coal plants would be the best source of electricity from the standpoint of reliability, affordability, and safety. Coal costs substantially lower than fuel oil, thus a coal-fired power plant will have a favorable impact on electricity rates, he added. “Davao City is facing a precarious power supply situation. Only 20 percent of the Mindanao grid’s dependable capacity is produced by power plants located in Southern Mindanao. Being the biggest user of power in Mindanao, it is best that Davao City build sufficient power plants to ensure the security of its power supply," Aboitiz said. “AboitizPower guarantees that the operations of this coal plant will meet stringent international and the Philippines’ environmental, safety, and health standards," he said, adding that Mindanao should attain the right mix of renewable and non-renewable power sources that can give flexibility to meet the region’s growing energy needs. -- JE/OMG, GMANews.TV