The state-owned Korea Electric Power Corp. (KEPCO) is selling its stake in a coal plant in Cebu as part of its efforts to focus on renewable energy and become carbon neutral by 2050.
SPC Power Corp., formerly Salcon Power Corp., confirmed in a disclosure Thursday, Jan. 19, 2023, that KEPCO is selling its 60% stake in the 200-megawatt coal plant operated by Kepco SPC Power Corp. (KSPC) in the City of Naga and its 40% stake in SPC.
"SPC is presently evaluating and weighing its options on the sale of KEPCO's shares in KSPC and SPC," SPC said in a statement.
KEPCO, through its local unit KEPCO Philippines Holdings, Inc., constructed the power plant in Naga, which consists of two 100-MW coal-fired generating units that use the circulating fluidized bed combustion (CFBC) technology.
The plant, which started commercial operations in early 2011, helped address the crippling power shortage that gripped Cebu then. The facility is maintained by KEPCO SPC, a joint venture of KEPCO Philippines and SPC.
In a letter to investors in 2022, KEPCO announced its vision to focus on low-carbon and eco-friendly projects and go carbon neutral by 2050. In South Korea, it had shut down decrepit coal plants and initiated the conversion of the remaining coal plants into LNG-fired facilities.
"We do not expect any domestic coal-fired plants to be operated by us beyond 2050," the company said.
"In relation to our overseas business, we are also on our way toward energy transition, as we have declared that we will not develop any new coal-fired generation projects in the future and focus on low-carbon and eco-friendly projects instead," the company added. (Marites