SMC sets sights on hydropower

By Lenie Lectura October 28, 2020
https://businessmirror.com.ph/2020/10/28/smc-sets-sights-on-hydropower/

Conglomerate San Miguel Corp. (SMC) unveiled plans to develop some 5,000 megawatts (MW) of hydropower projects to support its clean energy portfolio.

SMC President Ramon Ang said the company’s power unit, SMC Global Power Holdings Inc., is determined to pursue various renewable energy (RE) projects to help ramp up the country’s RE capacity as its share in the country’s generation mix fell at 20 percent last year from 23.38 percent in 2018.

“For hydro, we are ready to put up about 5,000 megawatts, but these are on various stages. I can’t say exactly where because many might copy our plans. Tinitignan muna natin saan may demand then doon tayo ready magtatayo. Power business is always based on demand,” said Ang.

In 2018, Ang announced that the company was targeting up to 10,000 MW of new RE capacity in the next 10 years.

Aside from hydro, the company is also interested in pursuing solar and wind power projects across the country. The wind projects are being eyed in Bataan and Ilocos Norte.

SMC, he said then, has formed a team that conducted research on where best to put up the company’s planned RE projects.

“We are challenging ourselves to be able to operate in the most environmentally responsible manner, while taking into consideration energy security and affordability to the consumers. Initiatives to achieve this objective are under way and I’m proud to say, we are making good headway,” Ang had said.

Ang also gave an update of the company’s planned liquefied natural gas (LNG) project, which would be built in phases.

“Yung power generation ng SMC, we are now switching to LNG. We intend to put up 2,250MW in the first stage and another 2,550MW later on,” he said.

For the first stage of its LNG project, Ang said three 850MW units would be built. “It will be 850MW for the first line. There will be 3 lines of 850MW. But if there will be no demand, it will be one 850MW for the meantime.”

SMC plans to sell the gas output to the Manila Electric Co. should it win the upcoming competitive selection process.

“The LNG plant can be done in 24 months, whether we win or not in the CSP. If we don’t we can supply the ECs [electric cooperatives] or replace aging power plants,” he added.

The company’s planned Ilijan LNG Terminal will be developed by AG&P LNG Terminals and Logistics, with the engineering, procurement and construction work to be handled by AG&P Construction Solutions.