Tuesday, June 14, 2016

Alsons weighs food vs energy matrix in planned solar ventures



by Myrna Velasco June 12, 2016 (updated)

The power group of Alsons Consolidated Resources, Inc. (ACR) is casting solar in the conglomerate’s organic growth, but the deeper decision on business model they have been weighing is whether or not energy will be more beneficial than food in the utilization of their available properties.
According to ACR chairman Tomas I. Alcantara, a sizeable portion of their available land is “being used by cattle and bananas… so the
Decision we have to make: Which will produce bigger returns, banana, cattle or solar?”
He explained that solar investments would generally be a “real estate play,” while noting that this is an investment sphere “we have been looking at.”
Alcantara said their preferred site for solar farm would be in General Santos. “We believe that it is the best location for a solar plant in the Philippines because the records show that General Santos has the most sunlight days in the whole Philippines,” he added.
He stressed “if you have a solar plant in Mindanao versus let us say in Ilocos, you have 2.0 percent efficiency higher in General Santos.”
The company’s plan will be to start with 20 megawatts; but this will be a portfolio expanding over time.
The Alcantara property that could be utilized partly for solar farm developments had been placed at about a thousand hectares.
Their initial foray into renewable energy will be on run-of-river hydropower project via the planned 15 to 17-megawatt Siguil plant in Sarangani province. The off-take (purchase) of that plant’s capacity will be bilaterally contracted, according to company officials.
The higher end target of the group for hydro capacity will be for 180MW – with the next 40MW to be installed in Bago in Negros Occidental; while the rest will be sited in various areas in Mindanao grid.
For solar, the overall targeted portfolio will be for 150 megawatts but installations will be done in phases according to market demand.

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