Pagbilao power station

From Global Energy Monitor

Pagbilao power station is an operating power station of at least 1155-megawatts (MW) in Ibabang Polo, Pagbilao, Quezon, Calabarzon, Philippines with multiple units, some of which are not currently operating.

Location

Table 1: Project-level location details

Plant name Location Coordinates (WGS 84)
Pagbilao power station Ibabang Polo, Pagbilao, Quezon, Calabarzon, Philippines 13.8932, 121.745 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

  • Unit 1, Unit 2, Unit 3, Unit 4, Unit 5: 13.8932, 121.745

Project Details

Table 2: Unit-level details

Unit name Status Fuel(s) Capacity (MW) Technology CHP Start year
Unit 1 Operating coal: subbituminous 367.5 subcritical 1996
Unit 2 Operating coal: subbituminous 367.5 subcritical 1996
Unit 3 Operating coal: bituminous 420 subcritical 2018
Unit 4 Pre-construction[1][2][3][4] fossil gas: LNG[1][5][2] 655[1][5][2] combined cycle[1][5][2] not found 2028 (planned)[5]
Unit 5 Pre-construction[1][2][3][4] fossil gas: LNG[1][5][2] 655[1][5][2][6] combined cycle[1][5][2] not found 2028 (planned)[5]

CHP is an abbreviation for Combined Heat and Power. It is a technology that produces electricity and thermal energy at high efficiencies. Coal units track this information in the Captive Use section when known.

Table 3: Unit-level ownership and operator details

Unit name Owner Parent
Unit 1 Aboitiz Power Corp[7] Aboitiz Power Corp
Unit 2 Aboitiz Power Corp[7] Aboitiz Power Corp
Unit 3 Aboitiz Power Corp[7] Aboitiz Power Corp
Unit 4 Therma Subic Inc [100%][5] Aboitiz Power Corp [100.0%]
Unit 5 Therma Subic Inc [100%][5] Aboitiz Power Corp [100.0%]

Project-level coal details

  • Coal source(s): Philippines/Indonesia

Financing

  • Source of financing: 70% bank loans; 30% equity[8]: Banco De Oro (BDO), Bank of the Philippine Islands (BPI), China Bank, First Metro Investment Corporation (FIC), PNB Capital, Philippine Savings Bank (PSB), and SB Capital Investment Corporation (SBC) (US$750 million total);[9] US$250 million in equity from Aboitiz Power Corp, Tokyo Electric Power Company (TEPCO), and Marubeni[10]

Background

The two-unit, 735-MW Pagbilao coal-fired power plant was completed in 1996. The plant is operated by Team Energy, a joint venture of Japanese companies Tokyo Electric Power Company and Marubeni Corporation.[11][12] The plant is owned by Aboitiz Power, who took over the plant in 2009.[13]

Unit 3 Expansion

In March 2012, Team Energy and the Aboitiz Group announced that they would partner on an additional 420-MW coal-fired unit at Pagbilao. The unit would run on lower-quality Philippine or Indonesian coal.[14] In 2013, Team Energy announced that Marubeni, one of its two owners, would handle engineering, procurement, and construction (EPC).[8]

Environmental permits were issued in June 2013.[15] In June 2014, the plant's owners announced that Japan's Mitsubishi Hitachi Power Systems and Korea's Daelim Industrial would be constructing the plant.[16] In June 2014, First Gen, a subsidiary of First Philippine Holdings Corporation, announced that it was considering buying a stake in the project.[17] Ground was broken on the project in July 2014.[15] Total cost of the project will be $976 million, and the plant is expected to be completed in Q2 2017.[18]

In September 2017, Aboitiz announced that the plant had been tested up to its 420 MW capacity and that it would begin commercial operations by the end of the year.[19]

In January 2018 it was reported Unit 3 was still in the testing phase, and would begin operations in February 2018.[20] On February 27, 2018, the Pagbilao council issued a cease-and-desist order (CDO) against Unit 3 because its owners had not signed a memorandum of understanding on corporate social responsibility (CSR) which, according to Aboitiz, would have required expenditures of "an amount above the company’s approved budget for CSR."[21] The Pagbilao council lifted the CDO on March 7, 2018, and Unit 3 went into commercial operation.[22]

Financing for Unit 3

In June 2014, a financing agreement for Unit 3 was closed. US$760.13 million in loans was provided by BDO Unibank, BPI Capital Corporation, First Metro Investment Corporation (FMIC), SB Capital Investment, Philippine National Bank, China Banking Corporation, and Security Bank. US$250 million in equity was provided by Aboitiz Power Corp, Tokyo Electric Power Company (TEPCO), and Marubeni. ING Group acted as financial adviser to the sponsors.[10]

Possible LNG Addition

In the DOE's March 2023 list of Indicative Power Projects, a 1,310 MW gas-fired power plant was listed by Therma Subic Inc. as "Pagbilao 4 & 5 CCGT Power Plant" with an expected commission date of July 2028.[23] It was reported in May 2023 that AboitizPower was planning the LNG project in Pagbilao "to meet base load requirement[s] by 2028 to 2030" [24]

Testing ammonia co-firing

In June 2023, Aboitiz Power announced that in the following year, the company would study the potential of co-firing its coal plants with ammonia "possibly in collaboration" with the major Japanese utility JERA. Pagbilao power station was reportedly chosen as the candidate-facility for testing.[25]

BOT contract expiring in 2025; Aboitiz Power and SMC to take over

News in July 2024 announced that TeaM Energy's Build-Operate-Transfer (BOT) contracts at the Sual and Pagbilao power stations would expire in 2024 and 2025, respectively, as TeaM Energy partners Marubeni Corporation and JERA would move their sights toward renewable energy projects.[26][27] Ownership and control of the two coal plants would be transferred to Aboitiz Power and the San Miguel Corporation.

Tropical Storm Paeng

In October 2022, 4 million residents were left without power when tropical storm Paeng shut down Bacman geothermal power plant, Quezon power station and Pagbilao power station. At the Pagbilao power station, two out of three units went offline temporarily.[28]

Outages and impact on grid

In May 2024, an analysis by the Center for Energy, Ecology, and Development found that coal- and gas-fired power plants were the leading cause of blackouts in the Philippines between 2019 and 2023. Over half of the forced outages in that time period were attributable to coal plants. Of the eight most unreliable plants, six were coal plants: Calaca power station, San Buenaventura power station, Masinloc power station, Limay power station, Panay power station, and Pagbilao power station. These power stations each had at least 10 incidents of forced outages. The amount of outages was not consistent with age; Masinloc power station Unit 3, which had only been operating for three years, was reportedly offline for 118 days.[29]

Articles and Resources

References

  1. 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 https://web.archive.org/web/20221219141939/https://manilastandard.net/business/314288312/aboitiz-power-gets-nod-to-study-grid-impact-of-1310-mw-plant.html. Archived from the original on 19 December 2022. {{cite web}}: Missing or empty |title= (help)
  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 (PDF) https://web.archive.org/web/20230126184348/https://www.doe.gov.ph/sites/default/files/pdf/electric_power/annex-a_coe-to-ngcp-clearance-to-undertake-sis-december-2022.pdf. Archived from the original (PDF) on 26 January 2023. {{cite web}}: Missing or empty |title= (help)
  3. 3.0 3.1 (PDF) https://web.archive.org/web/20231004133700/https://www.doe.gov.ph/sites/default/files/pdf/electric_power/private_sector_initiated_power_projects/06_Luzon-Indicative-July-2023.pdf. Archived from the original (PDF) on 04 October 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  4. 4.0 4.1 https://web.archive.org/web/20240507173802/https://malaya.com.ph/news_business/aboitiz-eyes-1b-lng-investments/. Archived from the original on 07 May 2024. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  5. 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 (PDF) https://web.archive.org/web/20230506161101/http://www.doe.gov.ph/sites/default/files/pdf/electric_power/06_Luzon%20Indicative%20-%202023-03-31.pdf. Archived from the original (PDF) on 06 May 2023. {{cite web}}: Check date values in: |archive-date= (help); Missing or empty |title= (help)
  6. https://web.archive.org/web/20240524030716/https://businessmirror.com.ph/2024/05/01/tqe-to-build-1-b-gas-plant-in-quezon/. Archived from the original on 24 May 2024. {{cite web}}: Missing or empty |title= (help)
  7. 7.0 7.1 7.2 https://aboitizpower.com/about-us/our-businesses/power-generation/thermal/therma-luzon-inc. {{cite web}}: Missing or empty |title= (help)
  8. 8.0 8.1 "Pagbilao plant to add 400MW capacity," Rappler, September 29, 2013
  9. "Pagbilao Power Plant Expansion," Power Technology, accessed May 2018
  10. 10.0 10.1 "Preview of Pagbilao Coal-Fired Power Plant Expansion (1135MW) | Transaction | IJGlobal". ijglobal.com. Retrieved 2020-12-01.
  11. Pagbilao Coal Power Plant Philippines, Global Energy Observatory, accessed May 2012
  12. "Coal-Fired Plants Financed by International Public Investment Institutions Since 1994", Appendix to Foreclosing the Future: Coal, Climate and International Public Finance: Investment in coal-fired power plants hinders the fight against global warming, Environmental Defense, April 2009.
  13. Discover How Therma Luzon, Inc. Helps Power A Better Future, Aboitiz Power, Accessed: April 19, 2024
  14. Añonuevo, Euan. Team Energy, Aboitiz Power to expand Pagbilao plant capacity. InterAksyon, 30 Mar. 2012.
  15. 15.0 15.1 Private Sector Initiated Power Projects (Luzon), Philippines Department of Energy, 30 Sept. 2014.
  16. MHPS wins coal-fired power plant construction contract from Pagbilao Energy, power-technology.com, 3 June 2014.
  17. First Gen Eyes Stake in Pagbilao Coal-fired Power Plant in Quezon, Philippines, Mining Connection, 11 June 2014.
  18. Pagbilao expansion to cost nearly $1B, MSN News, 11 Sept. 2014.
  19. Pagbilao coal plant tests full capacity, Manila Standard, 17 Sep 2017.
  20. "Pagbilao Energy set to operate $1-b coal-fired power plant in February," Manila Standard, January 02, 2018
  21. PAGBILAO GETS COURT REPRIEVE TO PROCEED WITH POWER PLANT, Department of Energy, Mar. 21, 2018
  22. Philippines’ Pagbilao Coal-fired Thermal Power Plant Starts Commercial Operations, Power Links, Mar. 15, 2018
  23. "LUZON INDICATIVE POWER PROJECTS," Department of Energy, March 31, 2023
  24. "Traditional power plants still needed," The Manila Times, May 9, 2023
  25. "Aboitiz Power to study ammonia co-firing by next year," Manila Bulletin, June 29, 2023
  26. Marubeni Philippines to consider RE as coal contracts expire, Power Philippines, July 3, 2024
  27. Marubeni PHL shifts focus to RE as coal contracts near end, Business World, July 3, 2024
  28. "3 power plants shut, 4 million Meralco clients without power amid storm", Manila Standard, October 31, 2022.
  29. Can’t Take The Heat?: Examining the Philippines’ Perennial Power Outages Problem caused by Fossil Fuels, Center for Energy, Ecology, and Development, May 13, 2024

Additional data

To access additional data, including interactive maps of the power stations, downloadable datasets, and summary data, please visit the Global Coal Plant Tracker and the Global Oil and Gas Plant Tracker on the Global Energy Monitor website.