Team Energy relinquishes Pagbilao coal-fired power plant as contract expires

TeaM Energy Corp. has ceased management of the 735-megawatt (MW) Pagbilao coal-fired thermal power plant in Quezon province after handing over the facility to the national government on Friday.

The facility is now with state-run Power Sector Assets and Liabilities Management Corp. (Psalm).

“We successfully completed earlier this morning the turnover of the Pagbilao Power Station to Psalm and (the National Power Corp. or Napocor),” TeaM Energy chair and OIC Jun Sano said.

“Our efforts have been successful as the plant has been turned over in excellent condition, ready to continue generating the much-needed electricity for the Luzon grid,” he added.

This happened as the cooperation period of the independent power producer contract that covers the Pagbilao coal plant expired. The contract was signed on Nov. 9, 1991.

Aboitiz Power Corp., the listed energy business of the Aboitiz Group, is taking over the coal facility through its subsidiary, Therma Luzon Inc. (TLI).

The power plant was built under a Build, Operate and Transfer (BOT) scheme with the national government, back then represented by Napocor.

TLI served as the independent power producer administrator (IPPA) of the Pagbilao facility, pursuant to its agreement with Psalm.

TeaM Energy said the IPP administrator agreement with TLI also lapsed on the day of the plant’s transfer to Psalm. This gives TLI the right to assume ownership of the plant.

The Pagbilao facility consists of two generating units with a capacity of 367.5 MW each.

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“For the past 29 years, the Pagbilao Power Station has contributed to the progress of the Philippines, consistently delivering reliable and cost-effective energy that powers homes, factories, offices, businesses, schools, and hospitals—fueling the nation’s growth and development,” Sano said.

“Even during the most challenging times– including the height of the COVID 19 pandemic–we are proud to say that we continued to produce much needed electricity that helped the Philippines bounce back and return to normalcy,” he said.

TeaM Energy will retain its 50-percent stake in the 420-MW Pagbilao Unit 3 Power Project. This is adjacent to the two generating units of the Pagbilao plant.

The company’s retail electricity supply arm, TeaM Philippines Energy Corp., will continue to operate and fulfill its contractual obligations related to Unit 3.