- The power project is an important long-term solution to the Mindanao power supply problem. – EIA
- It generates much-needed power for Mindanao despite dry spells caused by El Niño
AboitizPower inaugurated its 300-megawatt (MW) baseload power plant in Davao City, last January 8. The Davao power plant will be a reliable complement to Mindanao’s existing hydro power sources. Renewable energy will and should continue to contribute a significant portion of the power supply, which is in line with AboitizPower’s long-term strategy to provide a balanced mix of energy sources.
The power plant currently supplies baseload power to more than 20 electric cooperatives and distribution utilities in Mindanao. These cover a significant portion of the power supply to the cities of Davao, Cagayan de Oro, Gen. Santos, Zamboanga, Butuan, Kidapawan, Tagum, Koronadal, Digos, Pagadian, and Cotabato, among others. In addition, the plant supplies power to the Davao region; the provinces of Cotabato, Sultan Kudarat, Agusan and Surigao; the Zamboanga peninsula; and parts of Bukidnon and Misamis.
As it is not dependent on weather conditions, the Davao baseload plant is able to continue generating much-needed power even with Mindanao experiencing dry spells caused by El Niño this year and the droughts occurring roughly once every decade.
Modern Technology
The power plant uses the latest circulating fluidized bed (CFB) combustion technology that minimizes emissions and ensures compliance with Philippine Clean Air Act standards. It houses the country’s first coal dome, which provides a safe and efficient way to store coal fuel. A Continuous Emission Monitoring System (CEMS), connected to the Environmental Management Bureau (EMB), monitors power plant emissions in real time to ensure compliance.
A Multi-partite Monitoring Team (MMT) have been in place since the power plant’s construction stage to ensure that Environmental Compliance Certificate (ECC) conditions are followed and met. The power project has also established a carbon sink management program that allows the Matigsalug indigenous farmers to help AboitizPower expand and maintain a forest ecosystem area.
Speech by Aboitiz Group President and CEO Erramon I. Aboitiz
On the inauguration of TSI’s 300-megawatt Davao baseload power plant
January 8, 2016
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Maayong buntag sa atong tanan.
It is my honor to welcome you to the inauguration of AboitizPower’s Therma South 300-MW base load power plant here in beautiful Davao City.
Mindanao was reeling from the painful 2009 power crisis when AboitizPower decided it had to make a bold move to build a 200 MW power plant in southern Mindanao. We eventually increased the size of the power station to TSI’s current capacity of 300 MW. In 2010, AboitizPower made known to Davao City’s government officials, the local business community and other stakeholders of its intentions to build a base load – coal power plant in Davao City that would diversify the island’s over dependence on hydro and alleviate Davao City and Mindanao’s power shortfalls.
We assured all the stakeholders that we would bring in the most modern facilities and would operate under the strictest environmental standards. The days of highly polluting coal plants were a thing of the past and would definitely not be tolerated under AboitizPower’s watch. After all, the Aboitiz Group has been a part of Davao and its growth for many decades, and we would not do anything that was not good for Davao.
I recall when a group visited our Steag Plant in Misamis Oriental as part of the consultative process we went through in developing this TSI plant – one of the participants stepped out of the bus and asked – “Why did you bring us here when the plant was not running?” There was no smoke, no loud noise and this gave the impression that the plant was shut down. But we explained – no, the plant is operating on full load.
We wanted to make sure TSI would be a showcase and an example of what a coal plant can and should be like. So when we designed this TSI plant, we made sure we were consistent with our responsibilities. Aboitiz Power considers it its responsibility to provide ample and reliable power when needed, at a fair and competitive price, and to do so with the least adverse effect on the environment and the community.
TSI will provide Mindanao with 300 MW of reliable base load power, independent from rainfall or other natural weather conditions that are out of our control; it is using state of the art circulating fluidized bed technology that is many times referred to as “clean coal” and will ensure high efficiency and dependability; and we did not hold back to ensure the other facilities would mitigate any environmental effects. You can all bear witness to not only the country’s first coal dome but South East Asia’s first, coupled with fully covered conveyors to ensure coal dust does not affect our neighbors and host community.
AboitizPower, through its 100% owned subsidiary Therma South, invested P35 billion in this facility. We announced our intention to build this power station in 2010, selected and purchased the land, secured the necessary permits, began construction in 2012 and, during its peak, we employed more than 4,500 local workers. AboitizPower bridged the funding requirement with 100% equity and started construction without any power sales agreements to back up our capacity. We were determined to help solve the Mindanao Power problem as soon as possible.
We are also pleased to note that following the groundbreaking and construction of this Davao plant, other private power producers have started to invest in Mindanao and we hope their entry in the coming years will eventually lead to a steady and reliable supply of power in this region. For us, this is a strong attestation that EPIRA is indeed working and has allowed private investments to come in and help Mindanao secure its power needs. The competitive structure was envisioned to attract investment, drive down power costs and empower the end user; things we are actually seeing happen today.
Aside from TSI, AboitizPower has also commissioned about 55 MWs of run-of-river hydro in Davao and is building another 69 MW in Manolo Fortich in Bukidnon by 2017. As one of the country’s largest providers of renewable energy, with a RE portfolio of approximately 1,000 MWs representing close to 40% of our capacity, AboitizPower is committed to support the Mindanao Energy Development Plan of the Department of Energy and the Mindanao Development Authority, which are both pushing for a balance of renewable and non-renewable sources of power for the region.
Building power plants is a challenging, complex, risky and long-term undertaking, and this facility, which was conceived more than 5 years ago, would not have been possible without the much-needed and unequivocal support and cooperation of all our stakeholders.
Last, but certainly not the least, we thank and congratulate our Project Development & Execution Teams, our Sales Teams for their strong commitment, tenacity and hard work to see this project through.
On behalf of the Aboitiz Group, thank you for joining us in today’s momentous occasion and once again for your continued support. We are all partners in helping provide a sustainable solution for our country’s growing demand for power, and to energize the dreams and hopes of our fellow Filipinos for a better future.