China may help build clean coal power plants in Luzon, Cebu — DOE

China may build four coal power plants in the Philippines with a total capacity of 1,500 megawatts (MW), as the Department of Energy (DOE) requested Beijing’s help in decreasing electricity costs.

DOE Secretary Alfonso G. Cusi said that he had sought help through the head of NEA (National Energy Administration of China) during the bilateral meetings in April, which were attended by the country’s representatives and their counterparts in China. President Rodrigo Duterte was also present during the Boao Forum for Asia in Hainan province.

Cusi said that they asked during the meeting if China could help in putting up power plants in the Philippines. The talks resulted in the signing of a memorandum of understanding (MoU) to create a “master plan” for the distribution and transmission sectors in the country.

According to Cusi, China’s “expertise” and “vast experience” could help the Philippines learn to improve the energy industry without having to “re-invent the wheel” since there is already a Chinese template available.

Moreover, Cusi explained that he had requested China to build power plants in the Philippines so as to avoid the need for investors to secure power supply agreements (PSAs), which produce high power prices that lock consumers into long-term contracts.

A Chinese company, identified as China Energy Development Corp., is in the Philippines to assess possible sites.

“I think they’re already looking in Cebu, three sites, and then in Luzon,” Cusi said.

He also noted that the Chinese company assured them that the facilities it plans to build will utilize the latest clean coal technology or ultra-supercritical coal-fired power plants.

via Business World / Victor B. Saulon