DOE favorably endorses SRPI coal-fired power plant in ZC PDF Print E-mail
Tuesday, 13 March 2012 15:02

The Department of Energy, hard pressed to address the looming power crisis in Mindanao, has favorably endorsed the operation of a 100 megawatt coal fired power plant in Zamboanga City.

The power plant, to be built by San Ramon Power, Inc. will be located at the Zamboanga Economic Zone in San Ramon and will supply power directly to the Zamboanga City Electric Cooperative.

In an endorsement letter, signed by Energy Secretary Jose Rene Almendras last  November 11th, 2011, the DOE disclosed the 100 megawatt ‘Circulating Fluidized Bed (CFB) coal-fired power station is consistent with the Power Development Plan of the government in allowing Independent power producers ( IPPs) to play a bigger role in the energy sector development program of the government to address the increased power requirements of the country.

San Ramon Power, Inc is a sister company of Western Mindanao Power Corp which operates a 100 megawatt bunker C fuel fired power plant at  Sangali in the city’s east coast.

Both power firms are fully owned by Alsons Consolidated Resources, Inc. which has also began construction of another coal fired power plant with a rated capacity double that of San Ramon Power, Inc. at 200 megawatts.

The Sarangani power plant construction got underway last November with Gov. Miguel Dominguez, Trade Secretary Gregory Domingo and Alcantara Group President and Chairman Tomas Alcantara leading the groundbreaking rites.

Business groups in Sarangani hailed the construction of the power plant saying this would encourage more business investors to come in put up their business there while helping address the power void expected to hit Mindanao by 2014.

Secretary Almendras further stated in the certificate of endorsement  San Ramon Power, Inc. has entered into a memorandum of agreement with the DOE for the establishment of a trust account to accrue and benefit the host communities in the areas,in compliance with the implementing rules and regulations of RA 9136.

Republic Act 9136 is the law governing the implementation of ordaining reforms in the electric power industry.

The open endorsement of the DOE is seen as a positive development in the approval of the construction of the coal fired plant here, which becomes more imperative with the power situation deteriorating in Zamboanga for the second consecutive year.

Power outages have increased in frequency and now are at two hour a day power shutdown, with both Zamcelco and NGCP forecasting bleak pictures in improved power conditions here.

San Ramon Power, Inc. is programmed to break ground and start construction of the power plant here by middle of this year, once it gets the green light from government.

The SRPI power plant is seen to come on stream by the year 2015.