GBPC plots Luzon, Mindanao expansion to double capacity

Global Business Power Corp. (GBPC), a major power player in the Visayas, is eyeing to expand in Luzon and Mindanao by investing in traditional power projects and venturing into the renewables sector under its new leadership to meet its goal of doubling its capacity in five years.

The company’s main thrust is to expand to other regions and develop green power plants outside its current portfolio of bunker and coal power plants, said Jaime Azurin, GBPC’s newly-appointed president.

He said this would allow the company to reach its goal of ramping up its total capacity from 845 megawatts (MW) to around 1,500 to 2,000 MW in five years, or by 2022.

Currently, GBPC’s market share in the Visayas is at 29 percent, which is already close to the market share limitations (MSL) for generation companies of 30 percent set by the power regulator to ensure competitiveness in the electric power industry.

“So, that is the vision of our company for the next five years, to be able to enter Luzon and Mindanao as well as to develop new technologies that will complement the existing power plants that we have,” Azurin said

In Luzon, GBPC is working on a 670-MW super critical coal-fired plant in Luna, La Union, which would be under Global Luzon Energy Development Corp., the company official said.

So far, the company has secured local government endorsements and land conversion certificates while transmission route surveys and engineering, procurement and construction (EPC) selection are ongoing.

It is also awaiting the Energy Regulatory Commission’s approval for its 600-MW power supply agreement with Manila Electric Co. (Meralco).

For Mindanao, Azurin said the company formed Mindanao Energy Development Corp. for its investments in the southern part of the country. However, the unit is still exploring possible investments in the region.

Under renewables, GBPC is eyeing biomass, hydropower and solar technologies to complement its existing portfolio.

“Our goal is to at least have about 10 to 20 percent of renewables. The technologies that we are looking at are biomass, hydro and solar,” Azurin said.

Most of the renewable projects being looked at are greenfield projects, but the company could also look into acquiring existing projects, he said.

One renewable power project in the works is a 100-MW hydropower plant but the company official declined to give more details.

“A partnership is being discussed,” Azurin said. “We’re discussing the partnership, which could be closed by first quarter next year.”

Azurin succeeded former president Rolando Bacani effective May 1. Prior to his appointment as president, he was the company’s chief finance officer and executive vice president for business development and commercial operations.

GBPC is now led by businessman Manuel Pangilinan after Metro Pacific Investment Corp. (MPIC)—which he chairs—acquired a 56 percent stake in the company in May 2016 for P22.06 billion following a strategic alliance with tycoon George Ty’s GT Capital Holdings Inc.

GT Capital then entered as an strategic investor in MPIC, acquiring a 15.6 percent stake for P21.96 billion.