CEBU CITY – The synchronization of the first unit of the 246-megawatt Toledo power plant will finally ease power supply problems that have long-hobbled consumers in the Visayas.

The boiler firing for the Toledo plant’s 82-MW Unit 1 was formally undertaken here over the weekend.

Global Business Power Corporation president Jesus N. Alcordo noted that while there is currently only one off-taker (buyer) of the plant’s capacity, the entire volume “is essentially fully committed.”

The two other units of the facility, which are also at 82-MW installed capacity each, are expected on-line by June and prior to the end of the year.

“We are on schedule and the first unit will be online and synchronized to the grid by the first quarter of 2010. The second unit is expected to be online by June and the last unit by end (of the) year to make the power plant fully operational by the end of 2010,” Alcordo noted.

Global Power was among the private sector players which headed the government’s invitation for investments on new capacity to plug electricity supply deficiency in the Visayas.

By setting the Toledo plant on stream and the project by another company, Cebu’s power capacity is seen placed in a ‘‘safe zone’’ starting year 2011.

“The timely completion of the two power plants is in line with our commitment to immediately address the worsening power crisis in the Visayas,” Alcordo stressed.

With supply woes partly resolved, the clarion call for government is seen concentrated more on declaring the commercial operation of the Wholesale Electricity Spot Market (WESM) in the Visayas so power investors will have alternative market for their capacity and to have it as a venue for competition.

The end-game of market deregulation, Alcordo opined, is ensuring sufficient power capacity that shall bear multiplier effect on economic opportunities and job creation.

Since the start of the year, the industry’s plea for setting Visayas-WESM into direct commercial operation as well as its integration with the Luzon WESM has been gaining ground.

Some players noted that by synchronizing both markets, export of capacity will address future supply shortages in any of the two grids.

For many of the investors in the Visayas, they are looking at the spot market as an option for capacity-selling as contracting with off-takers (buyers) generally involve laborious processes.