MANILA, Philippines — AboitizPower Corp. will start rolling out its 10-year strategy this year by developing its renewable energy (RE) service contracts, resuming its search for overseas prospects, and exploring gas-fired plant developments.
This as it targets to hit a 50:50 balance between its renewable and thermal portfolios by 2030.
In a virtual briefing last Friday, AboitizPower president and CEO Emmanuel Rubio said the company’s 10-year strategy is underpinned by plans to invest in more renewable energy projects, both here and abroad, while selectively building baseload power plants, particularly natural gas-powered as these are still necessary to support the country’s growing energy needs.
“In the next 10 years, we will further grow our Cleanergy portfolio, both domestically and internationally, in an effort to help build the country’s renewable energy market and contribute to the global renewable energy goals. Last year was a year of plans, but this time around, we’re going to put those plans into action,” he said.
AboitizPower currently has 4,429 megawatts (MW) in net attributable capacity, composed of 79 percent thermal plants and 21 percent Cleanergy portfolio.
By 2030, the firm aims to reach over 9,000 MW in attributable capacity, Rubio said.
To reach this target, AboitizPower intends to secure a big chunk of RE programs to be launched by the Department of Energy (DOE) this year, namely Renewable Portfolio Standards (RPS) and the Green Energy Auction Program (GEAP).
“The forecast given by DOE in terms of MW, to be able to achieve aspirational target under RPS... is 10,000 MW. We intend to get maybe around 30 percent of that capacity,” Rubio said.
In growing its domestic RE base, AboitizPower said it is working on several RE projects with a primary focus on solar, wind and hydro from the 815 MW service contracts secured from the DOE under its belt.
It recently completed the commissioning of two wind met masts in Pangasinan and targets to start construction on a 50-MW solar project in Luzon within the second half of 2021.
“We have about 815 MW of service contracts that we’ve secured. We’re ready to look at an early start of construction for a 50-MW construction of solar in Luzon, hopefully by the second half of 2021. (That’s in) central Luzon, we’ll announce it,” Rubio said.
Apart from the service contracts already secured and in various phases of development, AboitizPower’s team dedicated to RE is also identifying and evaluating additional pipeline projects, most of which are based in Luzon. Current activities are focused on permitting, feasibility studies and tendering.
“This transition is not easy, but is definitely achievable. It is possible with the private sector and the government working together to ensure that the country’s renewable energy supply is more sustainable,” Rubio said.
The company is also looking at putting up gas-fired power plants while keeping plans of developing coal-fired power plant expansions.
“We’re really looking at options other than coal…You cannot build greenfield coal, but we still have options on brownfield, particularly TVI (Therma Visayas Inc.), TSI (Therma South Inc.),” Rubio said.
For gas-fired plants, the company is looking at possible sites which include Pagbilao, Mariveles, and Zambales, where its existing power projects are.
“We’re at the stage where we’re looking project development, but initially just looking at feasibility studies based on the sites we’ve identified as possible locations,” Rubio said.
For its international aspiration, AboitizPower is resuming its hunt with a focus on RE in high growth, geographic markets.
“It’s mainly still Vietnam and Indonesia…Vietnam is really very aggressive in really growing their renewable energy capacity, We are in touch again with potential partners, projects in Vietnam,” he said.
In April last year, the company terminated the acquisition of a 39.4-MW wind power facility in Ninh Thuan province, Vietnam. At that time, the firm said it was still in discussions with Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. (AAM) to revisit the acquisition at a future date.
AboitizPower, together with its partners, has since invested in other renewable energy projects such as geothermal, large hydro, and solar energy facilities across the Philippines.
The company is committed to supporting the government’s thrust to promote renewable energy in the country and its growth aspirations over the years, as well as backing the global movement for clean energy. Through this transition, the power company looks forward to driving change for a more sustainable future for the country.