DMCI: Calaca expansion hinges on Luzon power supply

DMCI Power Corp. might expand its 600-megawatt (MW) Calaca coal-fired power plant in Batangas if the power situation in Luzon improves, a company official said. “We are studying the power demand and supply situation in Luzon," DMCI Power president Nestor Dadivas said, clarifying that the expansion plan is “not yet final." He said the power situation in Metro Manila and in the provinces in Luzon remained critical due to a power supply deficit. It is still too tell early, said Dadivas, on how big the expansion will be because it will, again, depend largely on the supply-demand scenario. At present, DMCI Power is undertaking the rehabilitation of Calaca power plant to increase its capacity by 130 MW. The company allocated $60 million for the rehab program, which should be completed by February next year, Dadivas said. Dadivas said the two units of Calaca are only producing at a combined capacity of around 350 MW and in some cases are not running simultaneously for maximum output. The Calaca facility consists of two 300-MW generating units and is designed to run as a base-load plant using local coal from Semirara Mining Corp., a subsidiary of DMCI Holdings. DMCI Holdings bought the Calaca plant in July 2009 for $361.7 million. The parent firm owns 56 percent of Semirara, which has exclusive rights to explore, mine, and develop the coal resources in Semirara Island in Caluya, Antique. —Jesse Edep/VS, GMANews.TV