Japanese firms eye Laguna power plant expansion

The Japanese companies that own Caliraya-Botocan-Kalayaan (CBK) Power Corp. have expressed keen interest to expand the capacity of its hydroelectric plant in Laguna by 360 megawatts, Energy Secretary Raphael Lotilla said. Lotilla said Electric Power Development Co. Ltd. of Japan (J-Power) and Sumitomo Corp. would start a feasibility study next month on the possible expansion. “CBK Power –which is jointly owned by J Power and Sumitomo –has indicated to us that it will go into a voluntary feasibility study for the expansion of the existing CBK Hydro plant," the energy secretary said. The energy secretary said the group may spend about $360 million investment for the expansion. “It's only expansion so it’s going to be about $1 million per one megawatt," he said. The CBK Power plant at present has a 761-megawatt capacity. “They want to conduct feasibility study for Kalayaan 3. This one is very significant," he said. Lotilla said if CBK’s possible expansion was badly needed because the Luzon grid would require additional capacity by 2010. “This is a significant expansion plant, considering that it is located in Luzon. Our initial talks have been for a plant to be constructed on a merchant plant basis without any power purchase agreement," he said. Lotilla said the expansion would be worked out with the National Power Corp. (Napocor) because CBK Power is under the build-operate-transfer (BOT) scheme of the state-run power firm. “This is only expansion, so faster implementation. They will do it in cooperation with Napocor because it's under Napocor jurisdiction," he said. J-Power entered into CBK Power in 2004. CBK Power was formerly owned by Industrias Metallurgicas Percarmona SA. (Impsa) of Argentina and Edison Mission Energy of California. J-Power is a Japan-based electric power company with interests in developing power sources and building transmission lines. The Japanese firm has participated in projects totaling to 16,000mw in 72 power plants in seven countries. A majority of its plants are 5,000-mw hydroelectric plants, including seven pumped-storage hydroelectric plants similar to the CBK facility. J-Power already has an existing investment in the geothermal power sector in the Philippines and views CBK as its anchor investment in the country for future expansion. -GMANews.TV