AC Energy Corp. (ACEN) intends to invest P25 billion in the construction of a 1,200-megawatt (MW) gas turbine power facility in Batangas City to meet the power grid’s mid-merit and peaking requirements.
The project is a generation facility of six 200-MW gas turbines and will be developed under project company Ingrid3 Power Corp. In a leased industrial lot in Barangay Libjo and Malitam, Batangas City, based on a filing with the Department of Environment and Natural Resources-Environment Management Bureau.
The estimated cost of the project is P25 billion, which will cover the feasibility study, detailed engineering design, permit and license acquisition, site development, construction of power plant, substation, and transmission line components, procurement of necessary equipment and materials, as well as environmental facilities and monitoring activities.
The commencement of pre-construction activities is set this year and is targeting to start the construction in the third quarter of 2023. The company is still studying and assessing the offtake for the 1,200-MW capacity which is being considered for mid-merit/load-following and peaking.
“Gas turbine power plants can be adjusted to accommodate peaks in electricity demand. They are operated mainly during periods of high demand, otherwise, they remain standby and are ready to run at any time to provide reserve power when needed,” according to Ingrid3 Power.
Once completed, the project will provide ancillary services to the National Grid Corp. Of the Philippines (NGCP) and supply peaking and reserve power to the Luzon grid.
ACEN president and CEO Eric Francia said the peaking plant would be able to complement the intermittent supply being provided by renewable energy projects once renewable energy (RE) policies, such as the Renewable Portfolio Standards (RPS) are in place.
The company aims to exceed five gigawatts of attributable capacity—with projects here and abroad, to generate at least 50 percent of energy from renewables by 2025, and to become the largest listed renewables platform in Southeast Asia.
As of end-June this year, its attributable capacity is 2,589 MW, of which 80 percent or 2,070 MW are from RE sources.