The San Miguel Corporation (SMC) is set to join the renewable energy industry as it ventures into cleaner energy through its power subsidiary.
SMC Global Power Holdings is shifting into a diversified energy company through RE project investments to ramp up the country’s clean energy capacity in a way that consumers won’t be affected by higher electricity bills because of the feed-in-tariff (FIT) subsidies given to RE producers.
The company has formed a team that will conduct research and develop solutions across the clean energy sector.
“We are challenging ourselves to be able operate in the most environmentally responsible manner while taking into consideration energy security and affordability to the consumers. Initiatives to achieve this objective are under way and I’m proud to say, we are making good headway,” SMC president and COO Ramon Ang said.
Ang added that SMC has shortlisted two Asian firms, one of which could be a strategic and technical partner on its green venture.
“It’s about time we find a balance between promoting clean energy and securing the country’s energy needs without making consumers bear the cost of a punishing subsidy for years in favor of RE producers,” Ang said.
Department of Energy (DOE) Secretary Alfonso Cusi said SMC’s entry in the RE sector is a development for the industry as it pushes for unsubsidized power investments.
“It’s good as long as it is not for FIT,” he said.
The FIT scheme is guaranteed set of incentives for RE producers for a 20 year period. DOE has not expressed plans to expand the FIT system as consumers shoulder this incentive.
“We have a responsibility as a major power producer to do our share in pushing for a sustainable clean energy economy but it has to be done in the most efficient way possible for the consumers,” Ang said.
DOE is the only government agency not convince of going towards low carbon energy particularly renewables. Even San Miguel, Meralco, Ayala etc. companies who are ardent coal fired power plant fans with low concern for GHG emission are now into renewable energy. What DOE should do is to review the existing model of power generation, transmission and distribution which is now obsolete and come out with a system which can cater for the transition and final low carbon set-up. DOE should be ahead and should not be dictated as to the future of our energy policy. Future plan of installing more coal fired power plants, installation of submarine cables etc. should be reviewed and properly justified as they might turnout as white elephants in the future and long tem burden to the consumers. To this day since the administration started one of DOE’s slogan is to have affordable electricity. I guess this will remain a slogan five years from now!