KEPCO buys Philippines' Naga Power Plant
Korea Electric Power Corp. (KEPCO) bought the Philippines' Naga Power Plant Complex in Cebu for $26 million from state-run National Power Corp. The acquisition was made through KEPCO SPC—a 40-60 joint venture with Cebu-based Salcon Power, which owns majority of the company, according to The Korea Herald.
It was mentioned that the Korean power company competed against Aboitiz Group, and made the winning bid for the complex, which houses two thermal power plant units with a total capacity of 105MW and a 43.8MW diesel-fired unit.
The Naga plant reportedly operates at a reduced capacity, and KEPCO plans to carry out a rehabilitation work that includes generating synergy with its own coal-fuelled plant located just across the complex. KEPCO spokesperson Chung Young-kwon told The Korea Herald that the firm wants to refurbish the old plant and turn it into a green 300MW facility circulating fluidized bed combustion.
The Naga complex serves the grid powering the Visayas region, with its thermal plants holding half of the capacity of the power grid in terms of coal production. The complex's rehabilitation is expected to raise the output of the power grid, which supports a 50-hectare techno park in Naga—New Cebu Township One Economic Zone.
The techno park shelters light industry, manufacturing and precision assembly, warehousing and storage facilities. Boosting the power generation capacity of the Naga complex will energise the manufacturing operations in the area and improve the productivity within the facilities.
Japanese quartz crystal company Kyocera Kinseki Philippines Inc. is one among the many companies that may benefit from the planned power plant rehabilitation. Its Naga facility manufactures quartz crystal resonators and oscillators used in electronic equipment.
KEPCO is the Philippines' fourth-largest power producer. It expects to raise its overseas sales with the Naga deal—which is currently at 6 per cent—to account for 20 per cent of the total by 2020, reported The Korea Herald.
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