AboitizPower lines up RE projects

ABOITIZ Power Corp. has lined up renewable energy (RE) projects with total potential capacity of 1,600 megawatts (MW).

The power company said last month it is working on several RE projects with primary focus on solar, wind and hydro facilities.

In a virtual briefing, AboitizPower President and Chief Executive Officer Emmanuel Rubio said the listed firm is to undertake renewable projects that can provide an additional capacity of 1,600 MW.

Certain projects in the pipeline include 164 MW run-of-river hydropower, 400 MW of wind with service contracts and 250 MW of solar as well as 548 MW of land banked for solar.

These planned power facilities, Rubio said, are on top of AboitizPower’s joint venture projects.

“At the moment, we have land bank about 350 (hectares) that we own and option for another 1,100 hectares,” he said.

Likewise, AboitizPower has 815 MW of service contracts it secured from the Department of Energy, which are in various phases of development.

“We’ll actually start with this and move on in the next 10 years,” Rubio told reporters on Monday.

He also said the listed firm is hoping to break ground within the year a solar project in Cayanga, Pangasinan, with a capacity of 73 MW.

Recently, AboitizPower completed the commissioning of two wind met masts in Pangasinan.

“It will probably take two years for the data we will get from the two met masts we have installed also in Pangasinan,” he added.

The 1,600-MW capacity is part of the 3,900-MW RE capacity, which the Aboitiz Group’s power business is looking at in the next 10 years.

These forms are part of AboitizPower’s aspiration of increasing the renewable share in its capacity mix and subsequently achieve a 50:50 balance between clean and thermal portfolios by 2030.

AboitizPower is also banking on Green Energy Auction Program (GEAP) and Renewable Portfolio Standards (RPS) to scale up their RE.

“We are actually looking at for the DOE to drive compliance with RPS, this is the single driver for RE growth in the Philippines,” said Rubio.

“We look forward for GEAP to start so that generators like us will have a venue to, other than contracting with individual customers, to participate in auctions when entities that are required to comply with RPS put their markers for future contracts, hopefully for 10-year contracts,” he added.

GEAP is the competitive bidding for the procurement of renewable supply from qualified suppliers to qualified customers, while RPS is a market-based mechanism that mandates industry players to source a portion of electricity from eligible RE sources.

AboitizPower shares dropped by 55 centavos, or 2.42 percent, to close at P22.20 each on Tuesday.