SMC Global Power Holdings Corporation (SMCGP), the power generating arm of San Miguel Corporation (SMC), said it will be beefing up its investments in renewable energy (RE) in a bid to significantly cut carbon footprint, while addressing the country’s need for reliable and affordable power.
This comes as the company confirmed that it recently dropped 1,500 megawatts (MW) of three clean coal power plant projects in Quezon and Cebu.
“We’re executing on our plans to move away from building new coal facilities, despite new technologies that make them cleaner. It’s a company direction that is in line with all the major sustainability initiatives we have undertaken these past couple of years,” SMC President Ramon Ang said in a statement.
San Miguel, back in April, said that it is investing over $1 billion to build 31 battery energy storage system (BESS) facilities with a total capacity of 1,000 to be developed nationwide.
The BESS facilities, expected to be completed by 2022, are positioned as SMC’s solution to the country’s power supply issues. The projects will also allow for the integration of over 3,000MW of intermittent power sources to the grid.
Aside from RE, SMGCP is developing a 1,300MW greenfield liquefied natural gas (LNG) power project in Batangas City, which aims to provide clean and stable power to customers of the Manila Electric Company (MERALCO). The facility, once completed, would provide power at a lower price than that of coal plants.
In February, San Miguel was awarded two contracts to supply the MERALCO franchise area with 1,800MW of power beginning 2024.
The firm also announced its plans to build small-scale LNG plants in eight to ten islands in the Visayas and Mindanao to boost rural electrification, and is also planning to put up several hydroelectric power plants in Luzon.
“For several years now, we have been articulating our plans to move into cleaner and renewable power. Apart from making sure to invest in key infrastructure projects that will support our economic recovery from the pandemic, we have also made sure that we stay true to our larger sustainability goals by continuing to integrate sustainability into our strategic plans,” Ang said.