Thailand’s Electricity Generating Public Company is in talks with the Ayala Group and Manila Electric for partnership in the power sector, an official said.
Quezon Power Philippines managing director Frank Thiel told reporters during the recently concluded 2012 Philippine Energy & Infrastructure Business Meeting that EGCO was discussing possible ventures with various firms.
“That’s a known fact that Meralco is looking for projects… As a developer, we have to go knocking on doors, trying to find the right partner,” he said.
Meralco plans to put up 2,500 MW of power capacity while the Ayala Group targets around 1,000 MW in the next five years.
Thiel said EGCO has set the 500 megawatt expansion of its 460-MW coal-fired power plant in Quezon along with wind, solar, hydro and natural gas power projects.
EGCO controls 98 percent of Quezon Power after acquiring an additional 45.875 percent from Intergen for $375 million in July. The remaining 2 percent is held by PMR Ltd.
“EGCO’s desire is to expand its presence in the Philippines. We can do hydro, coal, even gas,” Thiel said. “We’re not being constrained by the size, 80MW as well as 500MW, or technology.”
He confirmed an earlier report of Manila Standard that EGCO and Meralco were reviewing a possible joint venture on a 500-MW Quezon Power expansion.
“We’re hoping (to sign a deal with Meralco soon).” Thiel said. “We’re encouraged with what we’re seeing so far. That is for the partnership in expansion.”
Quezon Power has secured the environmental clearance certificate for the 500 MW expansion.
According to Thiel, talks also forayed into Meralco being the majority buyer of electricity.
“The challenge is the offtake agreement… but we’re very positive we’ll be able to reach an agreement with them for QPL2 (Quezon Power expansion). Banks are looking for offtake agreement that they would consider financially bankable,” he said.
“We’re also in the hunt for potential acquisitions, those who desire to perhaps exit. It’s a matter of evaluating opportunities. We’re wide open right now.”
Thiel said EGCO is confident that “the power sector in the Philippines is booming” and as much as 400 MW may be needed annually.
“We see the demand keeps increasing. We see potential need for additional capacity,” he said.
The Quezon Power project started in May 2000 under the Luzon grid on a 25-year power sales agreement with Meralco.
EGCO is the first independent power producer in Thailand. EGCO is a holding company with investment in power generation and supply as well as comprehensive energy services providing operation, maintenance, engineering and construction services to power plants and other industries in Thailand and overseas.
EGCO currently has 16 operating plants with total installed capacity of 4,444 MW in Thailand.
