San Miguel Expands Hydropower Portfolio

By MYRNA M. VELASCO

October 12, 2010, 8:43pm

MANILA, Philippines — There’s still no stopping San Miguel Energy Corporation (SMEC) from expanding its portfolio in power generation with its sights focusing also on hydropower facilities.

San Miguel Global Power Holdings president Alan T. Ortiz noted that they are eyeing fresh prospects across the country to potentially augment capacity in all grids.

It must be noted that the company already has diversified portfolio of hydro, natural gas, coal and oil-fired power facilities, mainly from its acquisition with the Power Sector Assets and Liabilities Management (PSALM) Corporation. Its capacity include those of the 1,200-megawatt Sual coal-fired plant; 600-MW Limay thermal facility, 340-MW San Roque hydro facility; and the 1,200-MW Ilijan natural gas plant.

At a recent energy forum, Ortiz noted that the target of SMEC is to expand its capacity by additional 3,000 megawatts so it can greatly do its share in helping solve the country’s power supply problems.

On questions that the company may already be breaching the market cap prescribed under the Electric Power Industry Reform Act (EPIRA), Ortiz noted that with higher electricity requirement come 2013 to 2014 that may be propelled by economic expansion, the industry’s supply-demand balance may also change. And with the figures inflating, the total megawatt cap-reference may also be set higher by then.

“My chairman, Mr. (Ramon) Ang has committed to the President (Benigno S. Aquino III) and has committed to the Secretary (Rene Almendras) that we will build, at least we will start building new 3,000MW within the term of the President,” Ortiz noted.

He added that apart from its interest on coal and natural gas-fired power projects, “we expect to be heavily involved in hydropower sector as well as we have scoured the countryside for hydropower sources.”