Aboitiz Power Corporation is allotting Php28 billion for capital expenditures (capex) this year, which will be used to expand its renewable energy (RE) portfolio and to upgrade its existing power facilities, the company said in its Information Statement disclosed to the Philippine Stock Exchange on Tuesday.
Among the targeted projects include the remaining investment for the construction of the 1,336-megawatt (MW) GNPower Dinginin coal power plant, the general overhaul of the 632MW GNPower Mariveles coal plant. Part of the capex will also be channeled to the construction of various solar and hydroelectric plants, as well as battery energy storage system (BESS) projects.
“The balance is allocated for maintenance of business, primarily to ensure the availability of sufficient baseload during the 2022 election,” AboitizPower said. GNPower Dinginin’s 668MW Unit 2 is among the power plants expected by the Department of Energy (DOE) to help prevent yellow and red alerts from being declared in the Luzon Grid this summer, including the election period.
Aside from Dinginin Unit 2, AboitizPower currently has 1,000MW of projects under construction which are expected to begin commercial operations this year.
Construction has begun on the 74MW Cayanga-Bugallon solar power plant in Pangasinan, which is expected to begin commercial operation in the fourth quarter. Meanwhile, the 49MW Maco BESS project in Davao De Oro is intended to be used for ancillary services or reserve power.
AboitizPower, the country’s largest power generator, is looking to double its capacity to 9,200MW by 2030, while achieving a 50:50 balance between its renewable and thermal assets by investing Php190 billion for RE developments. A total of 721MW worth of RE projects are in its pipeline.
Among these projects are subsidiary PV Sinag Power’s 212 megawatt-peak (MWp) Olongapo Solar Project, 84 MWp San Manuel Solar Project in Pangasinan, and the 56 MWp Ramon and 50 MWp Gamu solar projects in Isabela. The Department of Energy recently endorsed the San Manuel project to the National Grid Corporation of the Philippines for system impact study.
Other RE ventures in the pipeline are Aboitiz Solar Power’s 150 MWp Calatrava solar project, SN Aboitiz Power’s 75 MWp Magat floating solar project and 10MW Magat BESS project, AP Renewables’ 44 MWp Tarlac solar project, and Hedcor Bukidnon’s 40MW Kibungan Hydropower Project.
These projects are expected to begin commercial operations by 2024 or 2025.