Aboitiz Power Group targets 2,000 MW more in 5 years

Aboitiz Power executives answers questions from the media during the Aboitiz 10th Future Leaders Business Summit. (CDN PHOTO/JUNJIE MENDOZA)

The Aboitiz Power Generation Group plans to increase its total power-generating capacity to more than 4,000 megawatts (MW).

Manny Rubio, Aboitiz Power external vice president and chief operating officer, said they are targeting an additional 2,000 MW over the next five years.

This will be on top of the existing 2,400 MW power-generating capacity of the company.

Aboitiz Power has earmarked P52 billion for the ongoing developments.

“We plan on developing renewable and traditional sources of energy,” he said during the sidelines of the 10th Aboitiz Future Leaders Business Summit in Cebu City last week.

From the targeted 2,000 MW increase in generation, at least 500 MW will come from hydropower with around 330MW from large hydropower plants and around 200 MW from run-of-the-river plants.

The Manolo Fortich hydropower plant in Bukidnon province is also expected to generate 68 MW for the Mindanao grid by late 2017.

Two other similar projects have been slated in the Cordilleras and Isabella, which will deliver 13 MW and 5 to 8 MW respectively.

Licenses are being secured for an additional 350 MW hydropower plant developments, said Rubio.

Aboitiz Power is also looking into other forms of renewable energy, such as solar power and geothermal power.

Rubio said that land is a limiting factor for the venture.

The group may not be looking at long-term plans for renewable energy sources or “cleanergy” pursuits, as this entails large costs.

“It is our responsibility to provide reliable and ample power supply at a reasonable and competitive price,” Rubio said during his talk.

In an ideal world, companies would be able to focus on generating energy from purely renewable sources, but given the costs of development, consumer costs and other limitations, the practicality of the idea is put to question, he said.

Of all sources of energy, Rubio said that hydropower, geothermal energy and coal have the lowest operating cost, which makes them the least costly for consumers.

He cited the current development of Therma Visayas Coal-Fired Power Plant in Toledo City, which will generate at least 300 MW of power for the Visayas grid.

With a capital expenditure of US $800 million, the development is slated for completion after three years.

The company is also developing several coal-fired power plants including Therma South in Mindanao and Pagbilao Power plant in Quezon.

Despite continuing coal-fired power projects, Rubio said Aboitiz’s renewable energy portfolio is one of the biggest in the Philippines, with an estimated attributed generation capacity of 915 mw out of the existing 2,400 MW, or around 30 percent of the company’s portfolio.

To date, the Aboitiz Power Generation group has 44 plants across the Philippines.

Aboitiz is also looking outside the Philippines for more geothermal and hydropower sites.

Indonesia, Vietnam and Myanmar have been eyed by the group as possible areas of interest, but so far, there has been no indication of how much power they can tap.

“As much as there’s still a lot of opportunities in the Philippines…there’s still opportunities outside. We’d like to explore those as well,” Rubio said.