SMC to invest $2.4 B for new power projects
The energy investment arm of San Miguel Corp. (SMC) will invest $2.4 billion as fresh capital for two new power projects to satiate the country’s long-term power supply.
SMC President Ramon S. Ang said the company is ready to finally take-off from blueprints its two coal-fired power plant projects that will add 1,200-megawatt capacity for Luzon grid. These targeted ventures are the 600MW coal-fired facility in Pagbilao, Quezon and the 600MW plant in Mariveles, Bataan.
The SMC executive indicated that the sites are now ready for the two power projects that will be equipped with circulating fluidized bed (CFB) boiler technology – which is also designed to be of multi-fuel capability.
While pre-construction works are ongoing, Ang added that application processes for environmental compliance certificates (ECCs) of the projects with the Department of Environment and Natural Resources (DENR) are ongoing.
He qualified though that the missing middle in this investment foray is the competitive selection process (CSP) that must be carried out by Manila Electric Company (Meralco), so the targeted facilities could offer their capacity for off-take or power supply agreements.
The two power plant projects had been among those affected by the Supreme Court decision
that upheld the conduct of CSP or competitive bidding for all PSAs underwritten by private distribution utilities and the electric cooperatives.
For these two projects to finally move headway, Ang said, “We submit ourselves to CSP (and) we have advised Meralco to start the CSP process already.”
With the supply tightness recurrently experienced in the Luzon grid, Ang said that building power plants should have started as early as three years ago – especially so since there are a lot of hurdles delaying project implementations, one of which is securing ECCs with the environment department.
The coal technology-underpinned baseload capacity addition in SMC’s portfolio will be pursued alongside investment plans of shoring up its renewable energy capacity.
Ang said the company plans 1,200MW of RE capacities – which shall be a mixed of solar, wind and pumped hydro generating assets across Luzon, Visayas and Mindanao power grids.
SMC currently has the San Roque hydropower facility as its major RE capacity, but Ang noted they are eyeing additional projects on this technology domain primarily in Luzon and Visayas grids.
For the targeted solar ventures, he said that various sites are already being prepared while for wind installations, the prospects are in Mariveles, Bataan and Badoc, Ilocos Norte.