Peakpower Energy to launch 2 plants by 1st half of 2017
PEAKPOWER Energy, Inc. expects its plant expansion in General Santos City to start operating by yearend, while it targets another plant in Bukidnon to launch by end-April 2017, its parent firm said.
A Brown Co., Inc., which owns 20% of Peakpower Energy, also disclosed in its financial report that a third plant in Agusan del Sur will start commercial operations for a new unit by the end of May 2017.
The listed diversified company houses its investments in bunker-fired power projects under Peakpower Energy, which was formed in 2013 to generate peaking power for electric cooperatives in Mindanao.
Peakpower Energy has three wholly owned subsidiaries on the island, each holding build-operate-maintain-and-transfer agreements for new plants that will last for 15 years through its subsidiaries.
PeakPower Soccsargen, Inc., which has a 20.9-megawatt (MW) diesel/bunder-fired power plant in General Santos City, has started its 13.9-MW expansion and is awaiting the delivery of two units of Wartsila engines by next month.
“Target commercial operations for the new units will be end of December 2016,” the parent company said.
The subsidiary has a 15-year agreement with the South Cotabato II Electric Cooperative, the largest distribution utility in Mindanao with a franchise area covering General Santos City, the municipalities of Polomolok and Tupi in South Cotabato. It launched in January last year.
Peakpower San Francisco, Inc., with a 5.2-MW diesel/bunder-fired power plant in San Francisco, Agusan del Sur, is also awaiting the delivery next month of a single unit Wartsila engine.
The plant has a 15-year agreement with Agusan del Sur Electric Cooperative, Inc. whose franchise area covers 13 municipalities including Bayugan City. The new unit is expected to start operating by May 2017.
“San Francisco serves as the primary commercial and service center in the province of Agusan del Sur, being situated at the crossroads leading to other production centers in the region,” A Brown said.
The subsidiary in Manolo Fortich, Peakpower Bukidnon, Inc., will be the first to start commercial operation, by the end of April 2017. Its 10.4-MW diesel/bunker-fired power plant has a 15-year agreement with Bukidnon II Electric Cooperative, Inc., which serves the highlands of the province.
A Brown said another unit, Palm Concepcion Power Corp. (PCPC), is in the initial stage of pre-construction activities of the second 135-MW coal-fired power plant in Concepcion, Iloilo.
“Construction is estimated to take two to three years after commissioning of the first unit,” A Brown said.
PCPC’s plant site and support units are programmed for two units of power generators. The first unit has been synchronized with the Visayas grid as of May 2016.
“Full commercial operations are slated on the last week of August 2016, delivering power supply to Panay, Negros, and the rest of Visayas,” the parent firm said.
It added that 10 distribution utilities and electric cooperatives have signed up with PCPC for their baseload power capacity needs.
For its power generation outlook, A Brown said that even with the additional 135 MW of supply PCPC’s second unit, a deficit still looms from November 2017 onwards.
“By 2020, projections are showing a shortfall of about 700 MW with no power projects projected to start operations after September 2016. With a supply deficit for the projected demand growth of the region, there is plenty of room to invest in the Visayas power market,” it said. —Victor V. Saulon, BusinessWorld