Fort Pilar Energy Inc. wants to produce as much as 3,000 megawatts (MW) in power generating capacity in five years after it bought the Malaya Thermal Power Plant (MTPP) from the government recently.
“We want to be a major player in the industry so we can capture a good market share of 2,000 to 3,000 megawatts in the next five years. But in terms of energy source, renewable energy (RE) will be our focus and baseload capacity is also a consideration,” said Fort Pilar Energy Chief Executive Officer Joseph Omar Castillo during a virtual press briefing of the company’s payment and handover of documents for the MTTP sale.
Fort Pilar Energy Chairperson Shiela Romero said the company can achieve its target capacity by acquiring more power plants in the future.
“Malaya is the first in Luzon and, last month, we also completed the acquisition of ADSI [Alterpower Digos Solar Inc.]. We’re also constructing a constructing a battery energy storage system (BESS) in Zamboanga,” said Romero, adding that Fort Pilar envisions MTTP as “the premier back-up power for the country’s main grid.” The BESS, meanwhile, is scheduled for commissioning in February next year.
Castillo said Fort Pilar will be taking a look at the other assets that the Power Sector Assets and Liabilities Management Corp. (PSALM) will be selling soon. These include the 5.195-hectare Diliman property in Quezon City and the Operation and Maintenance Service Contract (OMSC) for the Casecnan Multi-Purpose Project (CMPP). Also, he added, the company is looking at “a couple of assets in Visayas, but nothing specific yet.”
Fort Pilar’s subsidiary, Belgrove Power Corp., is the entity that bought MTTP and its underlying land from PSALM for P4,185,656,423.99. The proceeds will be used to settle the remaining financial obligations that PSALM absorbed from the National Power Corp.
Castillo said Belgrove has informed the Department of Energy about its plans for the MTTP. Belgrove is still conducting a feasibility study on whether to repair or replace the 300MW-MTTP Unit 1.
For Unit 2 (350MW), Belgrove is earmarking P500 million for the repair of the 43-year-old power facility and the purchase of two new modular aeroderivative gas engines meant to increase the capacity by 60 MW by end-2021. The new engines could also accommodate mixed fuel, including liquefied natural gas (LNG). Ultimately, the goal is to bring back its reliable capacity to 650MW.
“We expect to complete repairs for unit 2 within four months. We will keep unit 2 as diesel but the new engines we will be bringing in the facility have the capability to handle mixed fuel, so when the LNG terminals are put up in the country we would be ready to receive it as well,” said Castillo.