Davao Power Plant (Therma South)

Davao Thermal Power Plant is a proposed coal-fired power plant in Davao City and Davao del Sur in the Philippines. Currently the project involves a 300-megawatt (MW) Phase I consisting of two 150 MW units. Two additional phases have been proposed: Phase II for an additional 300 MW and Phase III for an additional 600 MW. The power plant was to be originally developed by Aboitiz Power Corporation, however Aboitiz was sold to San Miguel Corporation in October of 2013. San Miguel is continuing with the project. The plant is currently being constructed and the three construction Phases are set to be completed by 2020.

Location
The aerial photo below shows the location of the proposed Davao Power Plant according to Wikimapia.

Background on Plant
The proponent of the power station is Therma South, a subsidiary of listed AboitizPower Corporation. The proposed power station, while supported by the local government and industry associations, is opposed by a coalition of residents, church groups and environmentalists.

In October 2013 it was reported that the plant was 50% completed, and scheduled to go online in 2015.

Lobby for new station to meet power demand
Aboitiz Power, industry groups and the government have argued that a new coal-fired power station is required to meet growing demand for power and as a diversification strategy to help drought proof a grid heavily reliant on hydropower. The 982.1-megawatt Agus-Pulangi hydropower station currently supplies 55 percent of Mindanao's power but, the Sun-Star Manila reports, the project's generating capacity drops in summer due to lower water levels in Lanao Lake. Compounding this is the risk of drought. In 2010, a prolonged drought resulted in little generating capacity and half-day blackouts in some areas.

The forecast supply gap may reach 480 megawatts by 2014, according to the government. Aboitiz Power is already scheduled to commence work on a series of small hydro schemes for completion in late 2012. (The Tudaya 1 and Tudaya 2 projects will have a combined output of 13.6 megawatts. Two other hydro projects, the Sita project and the Simod project will have a combined output of 30 megawatts.

First vice president for Mindanao Affairs Aboitiz Power, Manuel Orig, stated that the proposed power station would employ 1,000 people during construction and 200 when operating. "We guarantee that the proposed power plant will not cause harmful effects on the water supply, the health of the communities and the environment," Orig said.

Public Opposition
In March 2011, residents of Binugao village in the Toril district asked the city government to reject the proposal of Aboitiz Corp. to put a coal-fired power plant in the village. In early March, the city council approved on first reading the proposed project and forwarded it to the committee on energy, the committee on environment, the committee on health, and the committee on trade and commerce. The four committees were tasked to conduct public consultations on the proposal. Vice Mayor Rodrigo Duterte has been very vocal about his endorsement of the proposed 300-megawatt coal-fired power plant, even before the conduct of any study. His daughter, Mayor Sara Duterte, said she was personally opposed to the project although she would go with the decision of the people.

Dr. Jean Lindo, one of the convenors of the No to Coal Davao, said the Aboitiz’s statement that the project would not pollute the environment was “a total statement of fallacy and deception” and “There is no such thing as clean coal." A petition submitted to the city council by those opposing the project states that 10 coal-fired power plants have been set up all over the country. They said "We, as Filipinos and energy consumers, have a right to demand for clean, renewable and affordable sources of energy without compromising our right to a healthful environment and genuine development,” the petition said.

Financing
In a letter Joseph Trillana Gonzales confimed that the company plans to raise "an additional estimated P51 billion from lenders to fund the Subic and Davao coal projects which are projected to start within the year. This amount assumes the construction of a 600 MW Subic coal plant, instead of a 300 MW coal plant."

Coal Source
In 2011, Aboitiz Power planned to source coal from Indonesia and from the Philippine Semirara Mining Corp. for the plants.

Groups campaigning against the proposed power station

 * People's Network for the Environment
 * No to Coal Davao

Project Details

 * Sponsor:  AboitizPower
 * Location: Binugao in Toril, Davao City, the Philippines
 * Coordinates: 6.964444, 125.479722 (exact)
 * Status: Under construction
 * Gross Capacity:
 * Phase I: 300 MW (2 x 150 MW)
 * Phase 2: 300 MW
 * Phase 3: 600 MW (2 x 300 MW)
 * Type:
 * Projected in service:
 * Phase I: 2015-16
 * Phase II: 2018
 * Phase III: 2019-20
 * Coal Type:
 * Coal Source:
 * Source of financing:

Project Details for expansion
The San Miguel Corporation plans to expand the capacity from 300 MW to 1,200 MW by 2020 in a three phase expansion:
 * Phase I: 300 MW (2 x 150 MW) - commission date of 2015-16
 * Phase 2: 300 MW - commission date of 2018
 * Phase 3: 600 MW (2 x 300 MW) - commission date of 2019-20

Related SourceWatch articles

 * Philippines and coal