AboitizPower advances funding talks for coal
‘We are talking to banks, and they (the panels of TVI 1 and 2) seem okay and willing (to lend). (The fundraising activities) start this fourth quarter’
Daily Tribune‘We are talking to banks, and they (the panels of TVI 1 and 2) seem okay and willing (to lend). (The fundraising activities) start this fourth quarter’
AboitizPower Thermal Business Group COO Ronaldo Ramos delivers keynote speech on the second day of Enlit Asia Conference.
Photograph by Maria Romero for the Daily Tribune.
The Philippines struggles to simultaneously keep power affordable and stable, especially during peak seasons. As demand rises, consumers often face either blackouts or higher energy costs due to limited supply.
To help address the situation, Aboitiz Power Corp., through its Thermal Business Unit, is moving forward with the 150-megawatt (MW) expansion of its 340-MW Therma Visayas Inc. (TVI) plant in Cebu to meet the rapidly growing energy needs, especially in the Visayas region.
AboitizPower Thermal Business Group COO Ronaldo Ramos confirmed during an interview at the sidelines of the Enlit Asia Conference here that preparations are underway to secure funding for the TVI expansion.
“We are talking to banks, and they (the panels of TVI 1 and 2) seem okay and willing (to lend). (The fundraising activities) start this fourth quarter,” Ramos said.
Ramos also said the company is pursuing qualified engineering, procurement, and construction (EPC) partners to help deliver the project before 2027.
Timeline presented
“We are talking to EPCs if they can deal with our timeline. We are looking at (having the plant operational) before the end of 2027. The timing is critical because the increase in demand in Visayas will happen in 2027. We want to be able to serve the grid; if we get delayed, it may cause bigger problems,” he explained.
He pointed out that a shortage of baseload power supply could lead to service interruptions and higher power charges, as limited supply forces power generators to rely on their more expensive diesel plants.
“It’s a cycle. The diesel prices are high,” he added.
The TVI plant is designed for coal expansion and currently utilizes a coal dome, modeled after its sister plant, Therma South Inc. — the first of its kind in the country.
The coal storage facility secures fuel deposits while mitigating the spread of coal dust into the air. Importantly, it is outside the Department of Energy’s coal moratorium order issued in 2020.
In his keynote speech, Ramos emphasized the need to maintain a diverse power mix, including coal, even amid an aggressive rollout of renewable energy.
He added that the energy transition will require robust policies to promote renewable energy and optimize the energy mix. Additionally, business incentives to drive energy efficiency, similar to Japan’s approach, will be crucial.
Furthermore, significant infrastructure investments and supply chain readiness are essential to support the increasing demand for diverse energy sources. This includes modernizing the grid and developing new technologies to ensure a reliable energy future.
“Supply chain readiness is crucial for ensuring that the necessary materials, technology, and infrastructure for renewable energy, transition fuels, and traditional baseload sources like coal are available to meet the growing energy demands,” he said.
As of the end of 2023, renewable energy accounted for 29.7 percent of the country’s power grid, encompassing sources such as hydro, geothermal, wind, biomass, and solar. However, coal still dominated the energy mix, making up 43.9 percent.
