Alsons explains cost of SRPI power plant PDF Print E-mail
Saturday, 30 November 2013 10:33

With the affirmation of commitment that Alsons Power Group will provide Zamboanga city with steady supply of baseload power by 2016, Joseph C. Nocos, Alsons vice president for project development, said yesterday that some quarters have been misinformed and inaccurate about the cost of the power plant that will rise in San Ramon, a barangay west of this city.

In a statement made after the city council session last Wednesday, Nocos said that Councilor Rommel Agan’s comparison in terms of cost between San Ramon Power, Inc. and other coal plants was not accurate. Agan had said during the council session  that  the SRPI  plant was overpriced because it had a higher cost per megawatt than other coal plants.

Mr. Nocos explained that a more accurate comparison of the cost should take into consideration the capacity of each plant.  As a general rule, due to economies of scale, a plant with a larger capacity will tend to have a lower cost per megawatt (MW) than a plant with a smaller capacity.  The SRPI plant has a projected maximum capacity of 105 MW.  For a more precise evaluation, Nocos said that Councilor Agan should have compared the SRPI power facility with coal plants that have more or less the same capacity as SRPI’s.  Agan cited the Sarangani Energy Corp. (210 MW), Therma South (300 MW), FDC Utilities (405 MW), and SMC Global Power (600 MW) that have capacities that are far bigger than SRPI’s, Nocos added.

Apart from the facilities already mentioned, Alsons Power also operates the Southern Philippines Power Corporation’s (SPPC) 55 MW diesel plant in Alabel, Sarangani and is in the midst of constructing the 255 MW Sarangani Energy Corporation (SEC) coal-fired power plant in Maasim, Sarangani. The SEC plant will begin operations in 2015 and will reach full capacity by 2016.

The Alsons Power executive likewise mentioned that the power firm will be generating around 25 percent of Mindanao’s projected power demand by 2016. “ By 2016, Alsons Power facilities will be generating an aggregate  of at least 463 MW, more than one-fourth of the Department of Energy’s projected 2016 Mindanao peak power demand of 1,829 MW,” he said. — BJ