By: Ronnel W. Domingo - 05:10 AM November 27, 2020
https://business.inquirer.net/312551/coal-remains-top-fuel-source-of-ph-power-plants
The Philippines remains heavily reliant on coal, with the fossil fuel powering 54 percent of the total electricity output even during the coronavirus pandemic, data from the Wholesale Electricity Spot Market (WESM) show.
According to the WESM manager, the Independent Electricity Market Operator of the Philippines (Iemop), there were 9,042 megawatts of coal-fired power generating capacity, accounting for 43 percent of the 20,873 MW registered at the spot market.
Natural gas-fired power plants were a far second with 3,295 MW or 16 percent of total.
In terms of electricity that was generated in the 10 months ending in October 2020, coal represented 35,732 gigawatt-hours or 54 percent of the total that reached 66,494 GWh.
Again, natural gas was second with 16,236 GWh or 24 percent of total generated electricity.
As for peak daily demand, WESM records show that this has been receding since reaching a pandemic-time high of 10,193 MW in September.
Peak demand was pegged at 9,776 MW in October and 8,947 MW in November.
During these months that coincided with the onset of a fully developed La Niña phenomenon, a series of typhoons lowered temperatures—which means less use of home appliances for cooling—and even caused power outages.
The trend in the past three months appears to belie a positive outlook, where business and consumer confidence is rising and setting up the industry for a recovery toward prepandemic levels.
Earlier this week, John Eric Francia, president and chief executive of AC Energy Infrastructure Corp., said the Philippine energy sector was expected to regain its prepandemic momentum next year thanks in part to renewable energy, which allows industry players to resume investments with measured confidence.
Francia was among a panel of industry experts gathered for a webinar hosted by the European Chamber of Commerce of the Philippines and the Philippine Energy Independence Council.
He noted that the Luzon grid alone has seen such a recovery as early as last September.
Demand is “still a bit unstable but we’re feeling confident it will come back by next year,” Francia said. “Along with that, there will be, hopefully, a recovery in both consumer confidence and business confidence, especially with the announcement that a vaccine has been developed and will be rolled out globally.”
Friday, November 27, 2020
POWER RATES DOWN IN NOVEMBER 2020
Published November 26, 2020, 8:00 AM by Manila Bulletin
https://mb.com.ph/2020/11/26/power-rates-down-in-november-2020-2/
Improved supply situation causes decrease in Generation Charge
The Manila Electric Company (MERALCO) announced on November 9 a downward adjustment of power rates, as the overall rate for a typical household decreased by P0.0395 per kWh, from last month’s P8.5500 per kWh to P8.5105 per kWh this November. This is equivalent to a decrease of around P8 in the total bill of residential customers consuming 200 kWh.
This month’s overall rate is also a net rate reduction of P1.35 per kWh since the start of the year and is the third lowest overall power rate since September 2017.
Lower Generation Charge mainly brought about by improved supply situation
From P4.2233 per kWh in October, the generation charge decreased by P0.0215 per kWh to P4.2018 per kWh this November.
This month’s decrease in the generation charge is mainly due to the P1.2800 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM). The Luzon grid’s power supply situation improved in October, as demand decreased due to weather disturbances and there was less generation capacity on outage.
Lower Malampaya natural gas prices due to its quarterly repricing and a slight Peso appreciation resulted in the cost of power from the Independent Power Producers (IPPs) to decrease by P0.0842 per kWh. Meanwhile, charges from Power Supply Agreements (PSAs) inched up by P0.2118 per kWh partly due to the forced outage of San Gabriel during the supply month.
WESM, IPPs, and PSAs accounted for 12%, 35%,and 53% of MERALCO’s energy requirements, respectively.
Movements in Other Charges
Transmission charge, taxes, and other charges for residential customers also registered a net reduction of P0.0180 per kWh.
Collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC.
MERALCO’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 64 months, after these registered reductions in July 2015. MERALCO reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.
No disconnection until December 31, 2020 for consumers 200 kWh and below
Meralco assured its customers that it will fully comply with the ERC Advisory released last October 29, 2020.
In line with the ERC Advisory, Meralco will NOT implement any disconnection on account of non-payment of bills until December 31, 2020 for consumers with monthly consumption of 200 kWh and below.
For all other customers, consuming 201 kWh and up, Meralco will be complying with ERC’s advisory stating that a minimum of 30-day grace period will be given on all payments falling due within the period of Enhanced Community Quarantine (ECQ) and Modified Enhanced Community Quarantine (MECQ), without incurring interests, penalties, and other charges. Any unpaid balance after the lapse of the 30-day grace period shall be payable in three (3) equal monthly installments without incurring interests, penalties and other charges.
In accordance with the ERC Advisory, Meralco also encourages customers who have the ability to pay to settle their bills within the original due date to help manage the cash flow in the energy supply chain and ensure the continuous supply of electricity.
For more information, customers may refer to their November bill insert, accompanying their November bill, for complete details.
MERALCO keeps its doors open for customers during General Community Quarantine (GCQ)
Customers may visit the nearest Meralco Business Center, which will continue to open its doors during the GCQ, and accept service applications, payments, and other transactions.
Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check. Frontliners are available and ready, but strictly follow Social Distancing guidelines. Visitors can rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.
But, for maximum safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via https://onelink.to/meralcomobile, Meralco Online via www.Meralco.com.ph, and the Meralco authorized payment channels at bit.ly/MeralcoPaymentPartners.
https://mb.com.ph/2020/11/26/power-rates-down-in-november-2020-2/
Improved supply situation causes decrease in Generation Charge
The Manila Electric Company (MERALCO) announced on November 9 a downward adjustment of power rates, as the overall rate for a typical household decreased by P0.0395 per kWh, from last month’s P8.5500 per kWh to P8.5105 per kWh this November. This is equivalent to a decrease of around P8 in the total bill of residential customers consuming 200 kWh.
This month’s overall rate is also a net rate reduction of P1.35 per kWh since the start of the year and is the third lowest overall power rate since September 2017.
Lower Generation Charge mainly brought about by improved supply situation
From P4.2233 per kWh in October, the generation charge decreased by P0.0215 per kWh to P4.2018 per kWh this November.
This month’s decrease in the generation charge is mainly due to the P1.2800 per kWh reduction in charges from the Wholesale Electricity Spot Market (WESM). The Luzon grid’s power supply situation improved in October, as demand decreased due to weather disturbances and there was less generation capacity on outage.
Lower Malampaya natural gas prices due to its quarterly repricing and a slight Peso appreciation resulted in the cost of power from the Independent Power Producers (IPPs) to decrease by P0.0842 per kWh. Meanwhile, charges from Power Supply Agreements (PSAs) inched up by P0.2118 per kWh partly due to the forced outage of San Gabriel during the supply month.
WESM, IPPs, and PSAs accounted for 12%, 35%,and 53% of MERALCO’s energy requirements, respectively.
Movements in Other Charges
Transmission charge, taxes, and other charges for residential customers also registered a net reduction of P0.0180 per kWh.
Collection of the Universal Charge-Environmental Charge amounting to P0.0025 per kWh remains suspended, as directed by the ERC.
MERALCO’s distribution, supply, and metering charges, meanwhile, have remained unchanged for 64 months, after these registered reductions in July 2015. MERALCO reiterated that it does not earn from the pass-through charges, such as the generation and transmission charges. Payment for the generation charge goes to the power suppliers, while payment for the transmission charge goes to the NGCP. Taxes and other public policy charges like the Universal Charges and the FIT-All are remitted to the government.
No disconnection until December 31, 2020 for consumers 200 kWh and below
Meralco assured its customers that it will fully comply with the ERC Advisory released last October 29, 2020.
In line with the ERC Advisory, Meralco will NOT implement any disconnection on account of non-payment of bills until December 31, 2020 for consumers with monthly consumption of 200 kWh and below.
For all other customers, consuming 201 kWh and up, Meralco will be complying with ERC’s advisory stating that a minimum of 30-day grace period will be given on all payments falling due within the period of Enhanced Community Quarantine (ECQ) and Modified Enhanced Community Quarantine (MECQ), without incurring interests, penalties, and other charges. Any unpaid balance after the lapse of the 30-day grace period shall be payable in three (3) equal monthly installments without incurring interests, penalties and other charges.
In accordance with the ERC Advisory, Meralco also encourages customers who have the ability to pay to settle their bills within the original due date to help manage the cash flow in the energy supply chain and ensure the continuous supply of electricity.
For more information, customers may refer to their November bill insert, accompanying their November bill, for complete details.
MERALCO keeps its doors open for customers during General Community Quarantine (GCQ)
Customers may visit the nearest Meralco Business Center, which will continue to open its doors during the GCQ, and accept service applications, payments, and other transactions.
Strict safety measures continue to be implemented, like the “No Mask, No Entry” rule, Social Distancing and Temperature Check. Frontliners are available and ready, but strictly follow Social Distancing guidelines. Visitors can rest assured that these frontliners have passed the rapid COVID-19 testing authorized by the Pasig City Health Office. There are also acrylic barriers set up in the Meralco branches to protect both the customer and the frontliner.
But, for maximum safety and convenience, Meralco still encourages customers to use Meralco Online to transact from the safety of their homes. Multiple options for transactions have also been offered by the distribution utility, including the Meralco Mobile App via https://onelink.to/meralcomobile, Meralco Online via www.Meralco.com.ph, and the Meralco authorized payment channels at bit.ly/MeralcoPaymentPartners.
PSALM seen to leave gov’t with P208b in debt by 2026
posted November 26, 2020 at 07:55 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/340537/psalm-seen-to-leave-gov-t-with-p208b-in-debt-by-2026.html
Power Sector Assets and Liabilities Management Corp. which was formed in 2001 to dispose of state-owned power assets will cease as a company by June 2026 and leave the government with about P208 billion in debt, an official said Thursday.
PSALM president Irene Garcia said the agency would incur the estimated P208-billion deficit at the end of its life under Republic Act No. 9136, or the Electric Power Industry Reform Act.
“That’s an approximation and it will still move depending on various factors,” Garcia said when asked to clarify her pronouncement during a Senate hearing.
Garcia said many factors could affect the projected deficit, such as exchange rate, borrowing conditions, collections, privatization activities, defaulting customers, rate of national government’s guarantee and approvals of the Energy Regulatory Commission of its rate adjustments.
PSALM has 25 years from the effectivity of EPIRA law in 2001 to fulfill its twin mandates unless extended by law.
Under the law, all assets of PSALM, money and properties belonging to it and outstanding liabilities will revert to and be assumed by the national government at the end of its corporate life.
PSALM began operations on July 1, 2001 with the primarily mandate to privatize the assets of the National Power Corp. PSALM was able to pare down its financial obligations to P393.3 billion as of end-June.
“For this year alone, notwithstanding the pandemic we have already reduced the financial obligations down to P393.3 billion. For the first half of 2020, we paid already P28.8 billion,” Garcia said earlier.
PSALM’s financial obligations include debts, interest and other charges and independent power producer lease obligations.
The agency’s financial obligations peaked at P1.24 trillion in 2003.
“On liability management, in 2019, we were able to reduce the financial obligations by P27.2 billion in terms of principal amounts of financial obligations from a high of P1.2 trillion that was passed on to PSALM from NPC,” Garcia said.
PSALM announced in May that it would secure a loan of P43 billion from the Development Bank of the Philippines to cover other maturing obligations in 2020.
PSALM said the loan was needed because the revenues from privatization proceeds, power sales, delinquent and overdue accounts collections and universal charge stranded debts proceeds would not be sufficient to cover all the maturing obligations and operating expenses.
PSALM so far raised P911.98 billion from privatization projects and collected P624.86 billion from the total.
Garcia said PSALM would continue to work with the privatization of the remaining assets of NPC such as the 650-megawatt Malaya Thermal Power Plant this year.
PSALM is also studying the disposal options for the 728-megawatt Caliraya-Botocan-Kalayaan hydro power plants and the 140-MW Casecnan multi-purpose project in 2021 and 2022, respectively.
PSALM said it would also continue with the disposal of real estate assets.
https://manilastandard.net/business/power-technology/340537/psalm-seen-to-leave-gov-t-with-p208b-in-debt-by-2026.html
Power Sector Assets and Liabilities Management Corp. which was formed in 2001 to dispose of state-owned power assets will cease as a company by June 2026 and leave the government with about P208 billion in debt, an official said Thursday.
PSALM president Irene Garcia said the agency would incur the estimated P208-billion deficit at the end of its life under Republic Act No. 9136, or the Electric Power Industry Reform Act.
“That’s an approximation and it will still move depending on various factors,” Garcia said when asked to clarify her pronouncement during a Senate hearing.
Garcia said many factors could affect the projected deficit, such as exchange rate, borrowing conditions, collections, privatization activities, defaulting customers, rate of national government’s guarantee and approvals of the Energy Regulatory Commission of its rate adjustments.
PSALM has 25 years from the effectivity of EPIRA law in 2001 to fulfill its twin mandates unless extended by law.
Under the law, all assets of PSALM, money and properties belonging to it and outstanding liabilities will revert to and be assumed by the national government at the end of its corporate life.
PSALM began operations on July 1, 2001 with the primarily mandate to privatize the assets of the National Power Corp. PSALM was able to pare down its financial obligations to P393.3 billion as of end-June.
“For this year alone, notwithstanding the pandemic we have already reduced the financial obligations down to P393.3 billion. For the first half of 2020, we paid already P28.8 billion,” Garcia said earlier.
PSALM’s financial obligations include debts, interest and other charges and independent power producer lease obligations.
The agency’s financial obligations peaked at P1.24 trillion in 2003.
“On liability management, in 2019, we were able to reduce the financial obligations by P27.2 billion in terms of principal amounts of financial obligations from a high of P1.2 trillion that was passed on to PSALM from NPC,” Garcia said.
PSALM announced in May that it would secure a loan of P43 billion from the Development Bank of the Philippines to cover other maturing obligations in 2020.
PSALM said the loan was needed because the revenues from privatization proceeds, power sales, delinquent and overdue accounts collections and universal charge stranded debts proceeds would not be sufficient to cover all the maturing obligations and operating expenses.
PSALM so far raised P911.98 billion from privatization projects and collected P624.86 billion from the total.
Garcia said PSALM would continue to work with the privatization of the remaining assets of NPC such as the 650-megawatt Malaya Thermal Power Plant this year.
PSALM is also studying the disposal options for the 728-megawatt Caliraya-Botocan-Kalayaan hydro power plants and the 140-MW Casecnan multi-purpose project in 2021 and 2022, respectively.
PSALM said it would also continue with the disposal of real estate assets.
Russian oil giant announces start of large Arctic project
posted November 26, 2020 at 07:15 pm by AFP
https://manilastandard.net/business/power-technology/340523/russian-oil-giant-announces-start-of-large-arctic-project.html
Moscow―Russian oil giant Rosneft on Wednesday announced the start of operations for its giant Vostok oil project in the Arctic, part of the country’s strategic energy plan which has been criticized by environmentalists.
“It is with great pleasure that I inform you of the start of the practical implementation of the project,” Rosneft chief executive Igor Sechin told President Vladimir Putin at a meeting in Moscow.
He thanked Putin, with whom he has close relations, for the adoption of a law facilitating Russian investments in the Arctic.
“The prospecting and exploration work are now underway, in accordance with our timetable,” Sechin said, adding that the design work for a 770-kilometer (480-mile) oil pipeline and a port had been completed.
The strategic plan for Russia’s mineral resources stretches to 2035 and is banking on growing global demand, though it does predict that natural gas will partially replace oil and coal.
“Mineral resources will remain a competitive advantage of Russia’s economy, and will determine the place and role of the country in the world,” it says.
Environmentalists urged the Russian government last year to stop granting licenses to exploit several Arctic deposits.
The Vostok project, the cornerstone of Russia’s Arctic ambitions, brings together several Rosneft activities in the Russian Far North, near the northern sea route that the company intends to exploit to deliver to Europe and Asia.
In February, Sechin promised Putin that the scheme would create a “new oil and gas province” on Siberia’s Taymyr peninsula, the northernmost part of the Asian continent.
The complete project will represent a total investment of 10,000 billion rubles ($111 billion), including two airports and 15 “industry towns.”
The project has also been forecast to create 130,000 jobs and allow access to estimated reserves of around five billion tons of oil.
The construction alone will require 400,000 workers, Sechin said.
Last week Rosneft announced the sale of 10 percent of the project to Singapore’s Trafigura group, without mentioning a price. The Russian group had previously said that there was interest in the project from India.
Sechin said the Arctic endeavor would eventually produce 100 million tons of oil per year.
Between now and 2024 he said that 30 million tons would be sent from the Arctic along the so-called Northern Sea route connecting the Atlantic Ocean to the Pacific.
https://manilastandard.net/business/power-technology/340523/russian-oil-giant-announces-start-of-large-arctic-project.html
Moscow―Russian oil giant Rosneft on Wednesday announced the start of operations for its giant Vostok oil project in the Arctic, part of the country’s strategic energy plan which has been criticized by environmentalists.
“It is with great pleasure that I inform you of the start of the practical implementation of the project,” Rosneft chief executive Igor Sechin told President Vladimir Putin at a meeting in Moscow.
He thanked Putin, with whom he has close relations, for the adoption of a law facilitating Russian investments in the Arctic.
“The prospecting and exploration work are now underway, in accordance with our timetable,” Sechin said, adding that the design work for a 770-kilometer (480-mile) oil pipeline and a port had been completed.
The strategic plan for Russia’s mineral resources stretches to 2035 and is banking on growing global demand, though it does predict that natural gas will partially replace oil and coal.
“Mineral resources will remain a competitive advantage of Russia’s economy, and will determine the place and role of the country in the world,” it says.
Environmentalists urged the Russian government last year to stop granting licenses to exploit several Arctic deposits.
The Vostok project, the cornerstone of Russia’s Arctic ambitions, brings together several Rosneft activities in the Russian Far North, near the northern sea route that the company intends to exploit to deliver to Europe and Asia.
In February, Sechin promised Putin that the scheme would create a “new oil and gas province” on Siberia’s Taymyr peninsula, the northernmost part of the Asian continent.
The complete project will represent a total investment of 10,000 billion rubles ($111 billion), including two airports and 15 “industry towns.”
The project has also been forecast to create 130,000 jobs and allow access to estimated reserves of around five billion tons of oil.
The construction alone will require 400,000 workers, Sechin said.
Last week Rosneft announced the sale of 10 percent of the project to Singapore’s Trafigura group, without mentioning a price. The Russian group had previously said that there was interest in the project from India.
Sechin said the Arctic endeavor would eventually produce 100 million tons of oil per year.
Between now and 2024 he said that 30 million tons would be sent from the Arctic along the so-called Northern Sea route connecting the Atlantic Ocean to the Pacific.
IEMOP set to reduce open access threshold
posted November 25, 2020 at 07:40 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/340451/iemop-set-to-reduce-open-access-threshold.html
The Independent Electricity Market Operator of the Philippines said Wednesday it started preparations for the lowering of threshold of retail competition and open access next year.
“IEMOP is currently performing studies to develop detailed proposals for lower threshold implementation,” IEMOP, operator of the Wholesale Electricity Spot Market, said in a statement.
The Energy Regulatory Commission released last month a draft resolution prescribing the timeline for the implementation of RCOA which allows initially large power users to source their own electricity.
Under the draft resolution, the contestability threshold will be reduced to 500 kilowatts on Feb. 2 2021. This will be followed by reduction to 100 kW on Jan. 26, 2022 and at the household level on Jan. 26, 2023.
IEMOP said a 10-kW threshold was provided in the draft ERC resolution for household-level implementation.
https://manilastandard.net/business/power-technology/340451/iemop-set-to-reduce-open-access-threshold.html
The Independent Electricity Market Operator of the Philippines said Wednesday it started preparations for the lowering of threshold of retail competition and open access next year.
“IEMOP is currently performing studies to develop detailed proposals for lower threshold implementation,” IEMOP, operator of the Wholesale Electricity Spot Market, said in a statement.
The Energy Regulatory Commission released last month a draft resolution prescribing the timeline for the implementation of RCOA which allows initially large power users to source their own electricity.
Under the draft resolution, the contestability threshold will be reduced to 500 kilowatts on Feb. 2 2021. This will be followed by reduction to 100 kW on Jan. 26, 2022 and at the household level on Jan. 26, 2023.
IEMOP said a 10-kW threshold was provided in the draft ERC resolution for household-level implementation.
Wednesday, November 25, 2020
Solar Philippines names new CEO
Catherine Talavera (The Philippine Star) - November 25, 2020 - 12:00am
https://www.philstar.com/business/2020/11/25/2059166/solar-philippines-names-new-ceo
MANILA, Philippines — A power industry veteran has been named as chief executive officer of Solar Philippines as the company gears for an initial public offering.
In a statement, Solar Philippines said Marty Crotty, an American with family ties in the Philippines, is now its new CEO.
Crotty served as president of AES Asia, where he managed power plants in Vietnam, India, Sri Lanka and the Philippines, including the Masinloc coal plant, which was acquired by San Miguel Corp. with an enterprise value of $2.4 billion in 2018.
He also served as CEO of Upwind Solutions, a wind asset management company backed by Silicon Valley investor Kleiner Perkins Caufield & Byers.
Crotty also had experience in managing the operations of over 10 gigawatts (GW) of solar and wind plants in North America at EDF Renewables, one of the world’s largest renewable energy companies.
“Given the amazing progress Solar Philippines has made on its pipeline of development assets, I’m extremely grateful to have the opportunity to lead the team with a laser focus on achieving Leandro Leviste’s vision to accelerate the transition to renewable energy,” Crotty said.
“We’re now finding more and more partners and colleagues who can see the time for solar in the Philippines is now. With our new partners and colleagues, we are more optimistic than ever that we can deliver the largest portfolio of renewable energy projects in Southeast Asia,” Solar Philippines founder Leandro Leviste said.
Last month, Solar Philippines announced a new strategic direction to bring onboard partners and professionals to prepare the company for a public listing.
The company said earlier that it is eyeing to forge more partnerships to accelerate the development of solar projects, driven by the strengthened push for renewable energy in the country.
In December 2018, it welcomed one of the world’s largest power companies, Korea Electric Power Corp. (Kepco), as partner in its 63-megawatt (MW) solar farm in Batangas, Kepco’s first renewable energy project in Southeast Asia.
The company also inked a partnership with the Razon Group’s Prime Infra in June to develop a pipeline of projects, representing the largest solar joint venture established in the country. This includes completing the 200-MW solar farm in Tarlac, the country’s largest solar project to date.
At present, Solar Philippines is developing projects with a total capacity of over 10 GW in over a dozen provinces.
https://www.philstar.com/business/2020/11/25/2059166/solar-philippines-names-new-ceo
MANILA, Philippines — A power industry veteran has been named as chief executive officer of Solar Philippines as the company gears for an initial public offering.
In a statement, Solar Philippines said Marty Crotty, an American with family ties in the Philippines, is now its new CEO.
Crotty served as president of AES Asia, where he managed power plants in Vietnam, India, Sri Lanka and the Philippines, including the Masinloc coal plant, which was acquired by San Miguel Corp. with an enterprise value of $2.4 billion in 2018.
He also served as CEO of Upwind Solutions, a wind asset management company backed by Silicon Valley investor Kleiner Perkins Caufield & Byers.
Crotty also had experience in managing the operations of over 10 gigawatts (GW) of solar and wind plants in North America at EDF Renewables, one of the world’s largest renewable energy companies.
“Given the amazing progress Solar Philippines has made on its pipeline of development assets, I’m extremely grateful to have the opportunity to lead the team with a laser focus on achieving Leandro Leviste’s vision to accelerate the transition to renewable energy,” Crotty said.
“We’re now finding more and more partners and colleagues who can see the time for solar in the Philippines is now. With our new partners and colleagues, we are more optimistic than ever that we can deliver the largest portfolio of renewable energy projects in Southeast Asia,” Solar Philippines founder Leandro Leviste said.
Last month, Solar Philippines announced a new strategic direction to bring onboard partners and professionals to prepare the company for a public listing.
The company said earlier that it is eyeing to forge more partnerships to accelerate the development of solar projects, driven by the strengthened push for renewable energy in the country.
In December 2018, it welcomed one of the world’s largest power companies, Korea Electric Power Corp. (Kepco), as partner in its 63-megawatt (MW) solar farm in Batangas, Kepco’s first renewable energy project in Southeast Asia.
The company also inked a partnership with the Razon Group’s Prime Infra in June to develop a pipeline of projects, representing the largest solar joint venture established in the country. This includes completing the 200-MW solar farm in Tarlac, the country’s largest solar project to date.
At present, Solar Philippines is developing projects with a total capacity of over 10 GW in over a dozen provinces.
Coal departure pays off for Lopez energy unit
(Philstar.com) - November 24, 2020 - 12:15pm
https://www.philstar.com/business/2020/11/24/2059115/coal-departure-pays-lopez-energy-unit
MANILA, Philippines — There was no regret on the part of First Philippine Holdings Corp. (FPH) to abandon coal as power source 4 years ago, a decision that had since been followed by a broader government push to stay away from fossil fuels amid catastrophic disasters.
“I was already at the helm during the devastation wrought by Typhoon Yolanda and our defining response to this and other subsequent natural disasters,” Federico Lopez, chair and chief executive, said on Monday.
“This led us to firming up our group’s definitive ‘no-to-coal’ declaration’ in 2016 which was not easy to explain to shareholders and analysts…Despite the doubters, let me say we never wavered and never once regretted the decision, especially today,” he added.
Lopez was awarded Management Man of the Year by the Management Association of the Philippines, an industry group. The award cited his push for “transition to a low-carbon economy” demonstrated by FPH's growing portfolio of renewables that last year reached 3,492 megawatts, accounting for 21% of the country’s power output.
That move had since been replicated on the broader economy. Last month, the energy department decided to stop accepting application to build coal power plants and focus on renewables. That new policy came in tandem with the easing of foreign ownership restrictions for new large-scale geothermal powerplants. Around 33% of the Lopez’s energy portfolio are in geothermal.
In his acceptance speech, Lopez stressed that while abandoning coal at the time meant “walking away from profit opportunity,” it likewise reflected the company’s realization of a bigger corporate responsibility to contribute to fight against changing climate.
“Millions of Filipinos were sequentially pummeled and thrashed by Rolly, the world’s most powerful typhoon this year, and Ulysses, one that surpassed Typhoon Ondoy’s wrath in 2009,” he said.
“The destructive power of these formerly 100-year events has no doubt been intensified by the accelerating climate crisis and now hit us with greater frequency and regularity,” Lopez explained.
That said, growing climate change awareness this day also made FPH’s clean energy focus pay off business-wise. Over the past decade, the holding firm’s recurring net income recorded a compounded annual growth rate of 29%, Lopez said.
At the stock market, shares at First Gen Corp., the energy unit, has surged 11.4% as of Monday since October 27 when the energy department announced a halt in coal plant building and investing more in renewables.
FPH shares are trending down 1.89% to P28.50 apiece as of 11:53 a.m. Tuesday.
“Businesses need to align themselves, their resources and their capabilities towards a mission that seeks to elevate everything they touch— their customers, employees, suppliers, contractors, the environment, communities and, of course, their investors,” Lopez said.
https://www.philstar.com/business/2020/11/24/2059115/coal-departure-pays-lopez-energy-unit
MANILA, Philippines — There was no regret on the part of First Philippine Holdings Corp. (FPH) to abandon coal as power source 4 years ago, a decision that had since been followed by a broader government push to stay away from fossil fuels amid catastrophic disasters.
“I was already at the helm during the devastation wrought by Typhoon Yolanda and our defining response to this and other subsequent natural disasters,” Federico Lopez, chair and chief executive, said on Monday.
“This led us to firming up our group’s definitive ‘no-to-coal’ declaration’ in 2016 which was not easy to explain to shareholders and analysts…Despite the doubters, let me say we never wavered and never once regretted the decision, especially today,” he added.
Lopez was awarded Management Man of the Year by the Management Association of the Philippines, an industry group. The award cited his push for “transition to a low-carbon economy” demonstrated by FPH's growing portfolio of renewables that last year reached 3,492 megawatts, accounting for 21% of the country’s power output.
That move had since been replicated on the broader economy. Last month, the energy department decided to stop accepting application to build coal power plants and focus on renewables. That new policy came in tandem with the easing of foreign ownership restrictions for new large-scale geothermal powerplants. Around 33% of the Lopez’s energy portfolio are in geothermal.
In his acceptance speech, Lopez stressed that while abandoning coal at the time meant “walking away from profit opportunity,” it likewise reflected the company’s realization of a bigger corporate responsibility to contribute to fight against changing climate.
“Millions of Filipinos were sequentially pummeled and thrashed by Rolly, the world’s most powerful typhoon this year, and Ulysses, one that surpassed Typhoon Ondoy’s wrath in 2009,” he said.
“The destructive power of these formerly 100-year events has no doubt been intensified by the accelerating climate crisis and now hit us with greater frequency and regularity,” Lopez explained.
That said, growing climate change awareness this day also made FPH’s clean energy focus pay off business-wise. Over the past decade, the holding firm’s recurring net income recorded a compounded annual growth rate of 29%, Lopez said.
At the stock market, shares at First Gen Corp., the energy unit, has surged 11.4% as of Monday since October 27 when the energy department announced a halt in coal plant building and investing more in renewables.
FPH shares are trending down 1.89% to P28.50 apiece as of 11:53 a.m. Tuesday.
“Businesses need to align themselves, their resources and their capabilities towards a mission that seeks to elevate everything they touch— their customers, employees, suppliers, contractors, the environment, communities and, of course, their investors,” Lopez said.
Meralco, US firm offer solar storage systems
November 24, 2020 | 12:02 am
https://www.bworldonline.com/meralco-us-firm-offer-solar-storage-systems/
THE renewable energy arm of Manila Electric Co. (Meralco) has partnered with California-based supplier Enphase Energy, Inc. in distributing the latter’s micro inverter-based solar storage systems within the country, the US firm said on Monday.
MSpectrum, Inc. is set to distribute Enphase’s seventh-generation microinverters, including IQ 7, IQ 7+™, IQ 7A™, and IQ 7X™, to residential and commercial installers in the Philippines.
According to a press statement, Enphase microinverters are subjected to a rigorous reliability and quality testing regimen, and they can operate in hot, humid and coastal conditions.
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“We are proud to provide Enphase Energy seventh-generation microinverters in the Philippines,” Robert Marlon T. Pereja, chief operating officer of MSpectrum, said in a statement.
“This next-generation technology will benefit solar customers through its high performance, flexibility, reliability, and most importantly, safety, due to the rapid shutdown device (RSD) built into Enphase microinverters,” he added.
For Enphase chief commercial officer Dave Ranhoff, the country’s solar market is promising for the residential and small commercial rooftop market segments.
“We believe Enphase’s unique value proposition of high-output performance and flexible installation, as well as a safe low voltage all-AC system architecture and rapid shutdown capability, resonates well in the Philippines solar market,” he said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., that has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang
https://www.bworldonline.com/meralco-us-firm-offer-solar-storage-systems/
THE renewable energy arm of Manila Electric Co. (Meralco) has partnered with California-based supplier Enphase Energy, Inc. in distributing the latter’s micro inverter-based solar storage systems within the country, the US firm said on Monday.
MSpectrum, Inc. is set to distribute Enphase’s seventh-generation microinverters, including IQ 7, IQ 7+™, IQ 7A™, and IQ 7X™, to residential and commercial installers in the Philippines.
According to a press statement, Enphase microinverters are subjected to a rigorous reliability and quality testing regimen, and they can operate in hot, humid and coastal conditions.
ADVERTISEMENT
“We are proud to provide Enphase Energy seventh-generation microinverters in the Philippines,” Robert Marlon T. Pereja, chief operating officer of MSpectrum, said in a statement.
“This next-generation technology will benefit solar customers through its high performance, flexibility, reliability, and most importantly, safety, due to the rapid shutdown device (RSD) built into Enphase microinverters,” he added.
For Enphase chief commercial officer Dave Ranhoff, the country’s solar market is promising for the residential and small commercial rooftop market segments.
“We believe Enphase’s unique value proposition of high-output performance and flexible installation, as well as a safe low voltage all-AC system architecture and rapid shutdown capability, resonates well in the Philippines solar market,” he said.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., that has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang
Cotabato power firm to finish substation upgrade by end-2020
By Lenie Lectura November 24, 2020
https://businessmirror.com.ph/2020/11/24/cotabato-power-firm-to-finish-substation-upgrade-by-end-2020/
Cotabato Light and Power Company, the distribution unit of Aboitiz Power Corp., is expected to finish the ongoing major upgrade of its Malagapas substation by the end of the year.
The project involves the installation of new electrical equipment, including the addition of a 15-MVA transformer, which is meant to control and protect the equipment at the site. The upgrades also allow for remote monitoring and operations, which is essential during the ongoing pandemic.
“The project began in June 2020 and is expected to be completed and energized by the end of the year,” AboitizPower said in a statement on Tuesday.
The company said the enhancement project will address the growing power demand for business and residential customers throughout Cotabato Light’s franchise area.
“The completion of the Malagapas Substation additional capacity will better serve the future electric demand while providing more reliable and continuous power to the Cotabato Light franchise area.
The new equipment includes state-of-the-art remote monitoring and operating capabilities as well as protective devices, which will mean fewer power outages and faster restoration times for customers. This is Cotabato Light’s commitment to advancing business and communities,” said Cotabato Light President Valentin S. Saludes III.
https://businessmirror.com.ph/2020/11/24/cotabato-power-firm-to-finish-substation-upgrade-by-end-2020/
Cotabato Light and Power Company, the distribution unit of Aboitiz Power Corp., is expected to finish the ongoing major upgrade of its Malagapas substation by the end of the year.
The project involves the installation of new electrical equipment, including the addition of a 15-MVA transformer, which is meant to control and protect the equipment at the site. The upgrades also allow for remote monitoring and operations, which is essential during the ongoing pandemic.
“The project began in June 2020 and is expected to be completed and energized by the end of the year,” AboitizPower said in a statement on Tuesday.
The company said the enhancement project will address the growing power demand for business and residential customers throughout Cotabato Light’s franchise area.
“The completion of the Malagapas Substation additional capacity will better serve the future electric demand while providing more reliable and continuous power to the Cotabato Light franchise area.
The new equipment includes state-of-the-art remote monitoring and operating capabilities as well as protective devices, which will mean fewer power outages and faster restoration times for customers. This is Cotabato Light’s commitment to advancing business and communities,” said Cotabato Light President Valentin S. Saludes III.
PNOC-EC: Gov’t needs to hold ground in WPS
November 24, 2020 03:30 AM By Maria Romero
https://tribune.net.ph/index.php/2020/11/24/pnoc-ec-govt-needs-to-hold-ground-in-wps/
The Philippine government needs to hold its ground in the disputed West Philippine Sea (WPS) or else it loses the chance to pursue its energy independence agenda.
This was learned from Philippine National Oil Company-Exploration Corporation (PNOC-EC) president and CEO Rozzano D. Briguez, who said international discussions should be settled as soon as possible since oil and gas exploration activities in the WPS have resumed last October.
“We have a slight issue which sometimes we don’t dare to tackle — it’s the strategic issue we have in the West Philippine Sea,” he said.
“We call that the ‘Sea of Cooperation’ because that’s what we tap to extract the indigenous sources that we have,” Briguez said in a forum headed by the Philippine Energy Independence Council and the European Chamber of Commerce of the Philippines.
Beneficial to country
He noted that “tapping the West Philippine Sea is beneficial to our country,” especially that the power sources in the Malampaya natural gas project are anticipated to decline in the coming years amid spiking demand.
According to the Department of Energy (DoE), the lifting of the moratorium on the exploration activities in the WPS could rake in an initial investment of $25 million by service contractors.
Apart from that, a total of $78 million worth of remaining minimum investments from the service contractors could also be raised.
The latest data from the DoE showed that there are about 6,048 million barrels of oil (MMBO) and 7,108 billion cubic feet of natural gas (BCF) of undiscovered resources in the WPS.
This is on top of the 155 MMBO and 5,050 BCF already discovered before the enforcement of force majeure during the Aquino administration.
Underscoring the crucial role that the energy sector plays in the promotion of sustainability and socio-economic development, Briguez said the government needs to accelerate the development of new energy supply.
Marketable drilling
He likewise reiterated that the government should support the study of the country’s sedimentary basins.
“We have to ensure that sedimentary basins are well studied. It’s part of the plan because don’t study our 16 basins that much… This is what we have to do to entice more investors in the energy sector,” Briguez said.
State-run PNOC-EC, along with the DoE and the University of the Philippines, is currently conducting an extensive study to make the country’s 16 sedimentary basins marketable for oil and gas exploration.
The geophysical and geological study on the country’s 16 sedimentary basins aims to attract new investments to boost exploration in the development of hydrocarbon resources.
https://tribune.net.ph/index.php/2020/11/24/pnoc-ec-govt-needs-to-hold-ground-in-wps/
The Philippine government needs to hold its ground in the disputed West Philippine Sea (WPS) or else it loses the chance to pursue its energy independence agenda.
This was learned from Philippine National Oil Company-Exploration Corporation (PNOC-EC) president and CEO Rozzano D. Briguez, who said international discussions should be settled as soon as possible since oil and gas exploration activities in the WPS have resumed last October.
“We have a slight issue which sometimes we don’t dare to tackle — it’s the strategic issue we have in the West Philippine Sea,” he said.
“We call that the ‘Sea of Cooperation’ because that’s what we tap to extract the indigenous sources that we have,” Briguez said in a forum headed by the Philippine Energy Independence Council and the European Chamber of Commerce of the Philippines.
Beneficial to country
He noted that “tapping the West Philippine Sea is beneficial to our country,” especially that the power sources in the Malampaya natural gas project are anticipated to decline in the coming years amid spiking demand.
According to the Department of Energy (DoE), the lifting of the moratorium on the exploration activities in the WPS could rake in an initial investment of $25 million by service contractors.
Apart from that, a total of $78 million worth of remaining minimum investments from the service contractors could also be raised.
The latest data from the DoE showed that there are about 6,048 million barrels of oil (MMBO) and 7,108 billion cubic feet of natural gas (BCF) of undiscovered resources in the WPS.
This is on top of the 155 MMBO and 5,050 BCF already discovered before the enforcement of force majeure during the Aquino administration.
Underscoring the crucial role that the energy sector plays in the promotion of sustainability and socio-economic development, Briguez said the government needs to accelerate the development of new energy supply.
Marketable drilling
He likewise reiterated that the government should support the study of the country’s sedimentary basins.
“We have to ensure that sedimentary basins are well studied. It’s part of the plan because don’t study our 16 basins that much… This is what we have to do to entice more investors in the energy sector,” Briguez said.
State-run PNOC-EC, along with the DoE and the University of the Philippines, is currently conducting an extensive study to make the country’s 16 sedimentary basins marketable for oil and gas exploration.
The geophysical and geological study on the country’s 16 sedimentary basins aims to attract new investments to boost exploration in the development of hydrocarbon resources.
Alsons issuing P6-b worth of debt notes
posted November 24, 2020 at 07:40 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/340366/alsons-issuing-p6-b-worth-of-debt-notes.html
Alsons Consolidated Resources Inc. will issue debt notes worth P6 billion to refinance old debt.
Alsons disclosed to the Philippine Stock Exchange on Tuesday the notes would have five-year and seven-year tranches, and appointed Development Bank of the Philippines as lead arranger of the transaction.
“The proceeds from the issuance of such notes will be used to refinance the outstanding principal balance of the company’s existing peso denominated fixed rate notes and to partially finance ACR’s investments in renewable energy projects,” Alsons said.
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Alsons executive vice president Tirso Santillan Jr. said the refinancing aimed to bring down interest rate and prolong the maturity of the notes.
Alsons will use proceeds from the new note issuance to partially refinance the balance of the company’s fixed rate notes of P7.5 billion from 2015 and fund renewable energy expansion projects.
https://manilastandard.net/business/power-technology/340366/alsons-issuing-p6-b-worth-of-debt-notes.html
Alsons Consolidated Resources Inc. will issue debt notes worth P6 billion to refinance old debt.
Alsons disclosed to the Philippine Stock Exchange on Tuesday the notes would have five-year and seven-year tranches, and appointed Development Bank of the Philippines as lead arranger of the transaction.
“The proceeds from the issuance of such notes will be used to refinance the outstanding principal balance of the company’s existing peso denominated fixed rate notes and to partially finance ACR’s investments in renewable energy projects,” Alsons said.
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Alsons executive vice president Tirso Santillan Jr. said the refinancing aimed to bring down interest rate and prolong the maturity of the notes.
Alsons will use proceeds from the new note issuance to partially refinance the balance of the company’s fixed rate notes of P7.5 billion from 2015 and fund renewable energy expansion projects.
Monday, November 23, 2020
AC Energy keen on ditching coal assets before 2030–exec
By Samuel P. Medenilla November 23, 2020
https://businessmirror.com.ph/2020/11/23/ac-energy-keen-on-ditching-coal-assets-before-2030-exec/
AC Energy Inc.’s exit from coal could happen ahead of its 2030 target, a company official said.
“Our commitment is to divest all our coal assets by 2030, but I don’t think we will wait by 2030,” said AC Energy President Eric Francia during an online press briefing last week.
Francia did not say when but the company is already investing heavily in renewable energy (RE).
Its current portfolio is composed of 1,300megawatts (MW) of thermal energy. The company has started divesting its coal assets since last year.
The power unit of conglomerate Ayala Corp. earlier agreed to transfer its assets in the 552-megawatt GNPower Kauswagan’s (GNPK) coal-fired power project to its partner, Power Partners Ltd. Co.
It also completed the sale of a 49-percent voting interest and 60-percent economic interest in AA Thermal Inc.—which owns a plant in Bataan—to Aboitiz Power Corp.
“GN Kauswagan is expected to reach financial close by first quarter of 2021. The balance of AA Thermal, we will be looking at the next couple of years. We want to complete the units first,” he said.
For GN Power Dinginin, Francis said unit 1 is targeted for commercial operations next year between March and April. Soon after that, unit 2 will be commercially available.
“We would like to make sure that the plant is operating well and then revisit potential divestment plan later,” added Francia.
Last week, Francia said AC Energy Philippines Inc. (ACEN) could exceed its 2025 target of achieving 5,000megawatts of renewable capacity.
“The plan is to scale up our RE to 5,000MW or even more. We are feeling confident that we will exceed our RE target. Next year, we expect our RE to reach 2,500MW. So, we expect to be halfway through our 2025 target as early as 2021,” said Francia.
He said there are 1,500MW of RE projects lined up next year in the Philippines, Australia, India and Vietnam.
ACEN, which has 1,000MW of capacity in its portfolio, will integrate its international business, which currently has 900MW RE capacity.
“Once we infuse our international platform into ACEN next year, ACEN will have a total of 1,900MW,” he said. Of which, Francia said RE capacity is about 1,350MW.
ACEN aspires to be the largest listed renewables platform in Southeast Asia, with the goal of reaching 5,000 MW of renewables capacity by 2025.
https://businessmirror.com.ph/2020/11/23/ac-energy-keen-on-ditching-coal-assets-before-2030-exec/
AC Energy Inc.’s exit from coal could happen ahead of its 2030 target, a company official said.
“Our commitment is to divest all our coal assets by 2030, but I don’t think we will wait by 2030,” said AC Energy President Eric Francia during an online press briefing last week.
Francia did not say when but the company is already investing heavily in renewable energy (RE).
Its current portfolio is composed of 1,300megawatts (MW) of thermal energy. The company has started divesting its coal assets since last year.
The power unit of conglomerate Ayala Corp. earlier agreed to transfer its assets in the 552-megawatt GNPower Kauswagan’s (GNPK) coal-fired power project to its partner, Power Partners Ltd. Co.
It also completed the sale of a 49-percent voting interest and 60-percent economic interest in AA Thermal Inc.—which owns a plant in Bataan—to Aboitiz Power Corp.
“GN Kauswagan is expected to reach financial close by first quarter of 2021. The balance of AA Thermal, we will be looking at the next couple of years. We want to complete the units first,” he said.
For GN Power Dinginin, Francis said unit 1 is targeted for commercial operations next year between March and April. Soon after that, unit 2 will be commercially available.
“We would like to make sure that the plant is operating well and then revisit potential divestment plan later,” added Francia.
Last week, Francia said AC Energy Philippines Inc. (ACEN) could exceed its 2025 target of achieving 5,000megawatts of renewable capacity.
“The plan is to scale up our RE to 5,000MW or even more. We are feeling confident that we will exceed our RE target. Next year, we expect our RE to reach 2,500MW. So, we expect to be halfway through our 2025 target as early as 2021,” said Francia.
He said there are 1,500MW of RE projects lined up next year in the Philippines, Australia, India and Vietnam.
ACEN, which has 1,000MW of capacity in its portfolio, will integrate its international business, which currently has 900MW RE capacity.
“Once we infuse our international platform into ACEN next year, ACEN will have a total of 1,900MW,” he said. Of which, Francia said RE capacity is about 1,350MW.
ACEN aspires to be the largest listed renewables platform in Southeast Asia, with the goal of reaching 5,000 MW of renewables capacity by 2025.
AC Energy to ensure coal plants’ reliability
Catherine Talavera (The Philippine Star) - November 23, 2020 - 12:00am
https://www.philstar.com/business/2020/11/23/2058695/ac-energy-ensure-coal-plants-reliability
MANILA, Philippines — AC Energy, Inc., the power unit of the Ayala Group, will ensure the reliable operations of AA Thermal Inc.’s coal power plants before proceeding with the divestment plan for its remaining stake.
In a virtual briefing, AC Energy president and chief executive officer Eric Francia said the company plans to divest the balance of AA Thermal in the next couple of years, in line with the group’s goal of fully divesting from coal by 2030.
“We want to complete the units first. As you know, unit 1 is targeted for commercial operations early next year, between March and April is our estimate for full commercial operations,” Francia said.
Francia said the company would like to make sure that the plant is operating well before it proceeds with the potential divestment plan for AA Thermal
Last year, AC Energy completed the sale of a 49 percent voting interest with 60 percent economic interest in AA Thermal Inc. to Aboitiz Power Corp.
The transaction was valued at $572.9 million.
The parties signed a share purchase agreement in 2018 between AboitizPower and Arlington Mariveles Netherlands Holding B.V., a wholly owned subsidiary AC Energy.
AA Thermal has ownership interest in the 2 x 300 MW coal-fired power plant in Mariveles, Bataan owned by GNPower Mariveles Coal Plant Ltd. Co., which has been in operations since 2014, and in the 2 x 600 MW supercritical coal-fired power plant in Dinginin, Bataan owned by GNPower Dinginin Ltd. Co., which is currently under construction.
Francia said the company is in no rush to divest its stake in AA Thermal, emphasizing that it needs to ensure that the thermal plants are operating well.
“But once the plant is doing well, that it’s reliable, then yes, we could think about passing the baton,”he said.
Earlier this year, Ayala Corp., the parent firm of AC Energy, announced that it aims to fully divest from coal by 2030.
This works in line with AC Energy Philippines Inc. (ACEN)’s efforts in investing in renewables as it targets to achieve 5,000 megawatts (MW) of renewables by 2025.
Francia said the firm may exceed the target with more projects expected to come online next year, as it is set to build projects in the Philippines, Australia, India and Vietnam which will have the capacity to generate 1,500 MW of electricity next year.
At present, ACEN has around 1,000 MW of capacity in the Philippines, of which 550 MW are renewables.
Francia said by next year, ACEN’s renewable portfolio would reach around 1,350 MW with the infusion of AC Energy International into ACEN, which will add around 900 MW of renewable capacity.
With these new projects ACEN’s renewable capacity will increase to 2,500 MW by the end of 2021,already halfway its target of 5000 MW by 2025.
https://www.philstar.com/business/2020/11/23/2058695/ac-energy-ensure-coal-plants-reliability
MANILA, Philippines — AC Energy, Inc., the power unit of the Ayala Group, will ensure the reliable operations of AA Thermal Inc.’s coal power plants before proceeding with the divestment plan for its remaining stake.
In a virtual briefing, AC Energy president and chief executive officer Eric Francia said the company plans to divest the balance of AA Thermal in the next couple of years, in line with the group’s goal of fully divesting from coal by 2030.
“We want to complete the units first. As you know, unit 1 is targeted for commercial operations early next year, between March and April is our estimate for full commercial operations,” Francia said.
Francia said the company would like to make sure that the plant is operating well before it proceeds with the potential divestment plan for AA Thermal
Last year, AC Energy completed the sale of a 49 percent voting interest with 60 percent economic interest in AA Thermal Inc. to Aboitiz Power Corp.
The transaction was valued at $572.9 million.
The parties signed a share purchase agreement in 2018 between AboitizPower and Arlington Mariveles Netherlands Holding B.V., a wholly owned subsidiary AC Energy.
AA Thermal has ownership interest in the 2 x 300 MW coal-fired power plant in Mariveles, Bataan owned by GNPower Mariveles Coal Plant Ltd. Co., which has been in operations since 2014, and in the 2 x 600 MW supercritical coal-fired power plant in Dinginin, Bataan owned by GNPower Dinginin Ltd. Co., which is currently under construction.
Francia said the company is in no rush to divest its stake in AA Thermal, emphasizing that it needs to ensure that the thermal plants are operating well.
“But once the plant is doing well, that it’s reliable, then yes, we could think about passing the baton,”he said.
Earlier this year, Ayala Corp., the parent firm of AC Energy, announced that it aims to fully divest from coal by 2030.
This works in line with AC Energy Philippines Inc. (ACEN)’s efforts in investing in renewables as it targets to achieve 5,000 megawatts (MW) of renewables by 2025.
Francia said the firm may exceed the target with more projects expected to come online next year, as it is set to build projects in the Philippines, Australia, India and Vietnam which will have the capacity to generate 1,500 MW of electricity next year.
At present, ACEN has around 1,000 MW of capacity in the Philippines, of which 550 MW are renewables.
Francia said by next year, ACEN’s renewable portfolio would reach around 1,350 MW with the infusion of AC Energy International into ACEN, which will add around 900 MW of renewable capacity.
With these new projects ACEN’s renewable capacity will increase to 2,500 MW by the end of 2021,already halfway its target of 5000 MW by 2025.
MORE Power eyeing to double capacity of substations
By Lenie Lectura November 23, 2020
https://businessmirror.com.ph/2020/11/23/more-power-eyeing-to-double-capacity-of-substations/
More Electric and Power Corp. (MORE Power) revealed plans to double the capacity of its substations to 260 MegaVolt Ampere (MVA) in the next 5 years as part of an investment program crafted by the Razon-led distribution utility firm in Iloilo City.
“This is one of the many investments we have made and continue to make, to modernize the existing, decrepit and antiquated the distribution grid of the city of Iloilo…. We’re executing an investment plan for Iloilo to have a world-class, modern, electrical grid that is stable, safe, reliable and economical,” said Enrique Razon, owner of MORE Power in a recorded speech during the inauguration of the 10MVA mobile substation over the weekend.
The 10MVA substation will serve the Iloilo Business Park in Mandurriao and will be utilized to free up the Mandurriao substation, which is nearing its capacity at maximum level.
“Putting this 10MVA mobile substation here in Iloilo business park has two benefits. One, it will assure the business park of larger capacity to cater to growing demand.
And two, we will be able to transfer some load to this mobile substation to free up Mandurriao substation and to some extent the Molo substation of some load. We will provide some breathing space because the two substations are already in critical level,” said MORE Power President Roel Castro during the live commissioning of the 10MVA substation.
Castro said the 10MVA substation is part of the company’s expansion plan to double the capacity of the substations to 260MVA in the next five years to serve the growing demand in the city.
“This mobile substation is just a start of a string of capacity expansion that we are thinking or planning for the city. Before this mobile substation, the total capacity for Iloilo was 130MVA.
In the next five years, we will double this to 260MVA, with the addition of this mobile substation, another 30MVA mobile substation, a new 50MVA substation here in Iloilo business park at the other end, new substations in Arevalo district, as well as expansion of the city proper and Jaro substation,” said Castro.
https://businessmirror.com.ph/2020/11/23/more-power-eyeing-to-double-capacity-of-substations/
More Electric and Power Corp. (MORE Power) revealed plans to double the capacity of its substations to 260 MegaVolt Ampere (MVA) in the next 5 years as part of an investment program crafted by the Razon-led distribution utility firm in Iloilo City.
“This is one of the many investments we have made and continue to make, to modernize the existing, decrepit and antiquated the distribution grid of the city of Iloilo…. We’re executing an investment plan for Iloilo to have a world-class, modern, electrical grid that is stable, safe, reliable and economical,” said Enrique Razon, owner of MORE Power in a recorded speech during the inauguration of the 10MVA mobile substation over the weekend.
The 10MVA substation will serve the Iloilo Business Park in Mandurriao and will be utilized to free up the Mandurriao substation, which is nearing its capacity at maximum level.
“Putting this 10MVA mobile substation here in Iloilo business park has two benefits. One, it will assure the business park of larger capacity to cater to growing demand.
And two, we will be able to transfer some load to this mobile substation to free up Mandurriao substation and to some extent the Molo substation of some load. We will provide some breathing space because the two substations are already in critical level,” said MORE Power President Roel Castro during the live commissioning of the 10MVA substation.
Castro said the 10MVA substation is part of the company’s expansion plan to double the capacity of the substations to 260MVA in the next five years to serve the growing demand in the city.
“This mobile substation is just a start of a string of capacity expansion that we are thinking or planning for the city. Before this mobile substation, the total capacity for Iloilo was 130MVA.
In the next five years, we will double this to 260MVA, with the addition of this mobile substation, another 30MVA mobile substation, a new 50MVA substation here in Iloilo business park at the other end, new substations in Arevalo district, as well as expansion of the city proper and Jaro substation,” said Castro.
Uy seeks resolution of Ilijan plant issues
Published November 23, 2020, 6:00 AM by Myrna M. Velasco
https://mb.com.ph/2020/11/23/uy-seeks-resolution-of-ilijan-plant-issues/
Uy-led UC Malampaya Philippines Pte. Ltd. is seeking resolution of the P27.3-billion dispute on capacity payments for the 1,200-megawatt Ilijan gas-fired power project; and it formally lodged this concern in a Senate hearing as one of the major issues that the company wants to be accorded with definitive settlement relating to the future of the Malampaya gas field project.
Aside from the protracted Ilijan dispute between state-run Power Sector Assets and Liabilities Management Corporation and South Premiere Power Corporation (SPPC) of the San Miguel group, the subsidiary of Udenna Corporation is also batting for a decision on the Commission on Audit (COA) case relating to income tax interpretation of the royalty sharing between the government and the service contractor in the gas field venture. The case is pending with the Supreme Court.
The other concern raised by the company is on the banked gas, of which current ownership and claim rests upon state-run Philippine National Oil Company.
Belinda Racela, president of UC38 LLC, a subsidiary of Udenna Corporation which purchased the 45-percent stake in Malampaya from American firm Chevron, noted those are the three issues of “utmost importance” to be given prompt resolution if the government is really bent on addressing the energy security concerns of the country.
UC38 LLC of businessman Dennis Uy is part of Service Contract (SC) 38 consortium that is now negotiating with the government, through the Department of Energy (DOE), for possible extension of the Malampaya field’s license beyond the life of the initial SC that will expire in 2024.
“We have supported the life extension effort of the consortium, and more importantly, we continue to support the operator in continuing reliable operations of the Malampaya facilities,” Racela said.
She added that UC38, “will continue to support the consortium-partners and government in pursuing solutions to address issues involving energy security by continuing our focus in developing the Malampaya assets to provide indigenous clean and reliable energy.”
Racela emphasized “UC38 since March had demonstrated that they continue to exercise their due responsibility as non-operator. UC38 like SPEX (Shell Philippines Exploration B.V.) is an all-Filipino team, we’re highly qualified and technically experienced in the oil and gas industry.”
An audited financial statement of PSALM had shown that its receivables from SPPC for the Ilijan plant had gone up to P27.308 billion as of end-December 2019 from the 2018 level of P21.954 billion.
Of the total amount, PSALM stipulated that P17.920 billion of its accounts-receivables for the Ilijan plant had already been past due, specifying that “the overdue amount arose from disputed items and differences in interpretation of certain provisions of the IPPA Administration Agreement.”
Based on the state-run company’s computation, its past due receivables from SPPC amounted to P4.622 billion from June 26, 2010 to December 25, 2012; and P11.515 billion from December 26, 2012 to December 31, 2018; and the aggregate amount had been levied with value added taxes (VAT) amounting to P4.995 billion.
San Miguel President and COO Ramon S. Ang told reporters that he is amenable to settle the amount being claimed by PSALM if SPPC will be presented with justifiable calculation based on the terms of the Ilijan plant’s IPPA contract.
“We are willing to pay if they will release computation. But how can we pay if they don’t give us the computation,” he stressed.
https://mb.com.ph/2020/11/23/uy-seeks-resolution-of-ilijan-plant-issues/
Uy-led UC Malampaya Philippines Pte. Ltd. is seeking resolution of the P27.3-billion dispute on capacity payments for the 1,200-megawatt Ilijan gas-fired power project; and it formally lodged this concern in a Senate hearing as one of the major issues that the company wants to be accorded with definitive settlement relating to the future of the Malampaya gas field project.
Aside from the protracted Ilijan dispute between state-run Power Sector Assets and Liabilities Management Corporation and South Premiere Power Corporation (SPPC) of the San Miguel group, the subsidiary of Udenna Corporation is also batting for a decision on the Commission on Audit (COA) case relating to income tax interpretation of the royalty sharing between the government and the service contractor in the gas field venture. The case is pending with the Supreme Court.
The other concern raised by the company is on the banked gas, of which current ownership and claim rests upon state-run Philippine National Oil Company.
Belinda Racela, president of UC38 LLC, a subsidiary of Udenna Corporation which purchased the 45-percent stake in Malampaya from American firm Chevron, noted those are the three issues of “utmost importance” to be given prompt resolution if the government is really bent on addressing the energy security concerns of the country.
UC38 LLC of businessman Dennis Uy is part of Service Contract (SC) 38 consortium that is now negotiating with the government, through the Department of Energy (DOE), for possible extension of the Malampaya field’s license beyond the life of the initial SC that will expire in 2024.
“We have supported the life extension effort of the consortium, and more importantly, we continue to support the operator in continuing reliable operations of the Malampaya facilities,” Racela said.
She added that UC38, “will continue to support the consortium-partners and government in pursuing solutions to address issues involving energy security by continuing our focus in developing the Malampaya assets to provide indigenous clean and reliable energy.”
Racela emphasized “UC38 since March had demonstrated that they continue to exercise their due responsibility as non-operator. UC38 like SPEX (Shell Philippines Exploration B.V.) is an all-Filipino team, we’re highly qualified and technically experienced in the oil and gas industry.”
An audited financial statement of PSALM had shown that its receivables from SPPC for the Ilijan plant had gone up to P27.308 billion as of end-December 2019 from the 2018 level of P21.954 billion.
Of the total amount, PSALM stipulated that P17.920 billion of its accounts-receivables for the Ilijan plant had already been past due, specifying that “the overdue amount arose from disputed items and differences in interpretation of certain provisions of the IPPA Administration Agreement.”
Based on the state-run company’s computation, its past due receivables from SPPC amounted to P4.622 billion from June 26, 2010 to December 25, 2012; and P11.515 billion from December 26, 2012 to December 31, 2018; and the aggregate amount had been levied with value added taxes (VAT) amounting to P4.995 billion.
San Miguel President and COO Ramon S. Ang told reporters that he is amenable to settle the amount being claimed by PSALM if SPPC will be presented with justifiable calculation based on the terms of the Ilijan plant’s IPPA contract.
“We are willing to pay if they will release computation. But how can we pay if they don’t give us the computation,” he stressed.
Probe sought on Meralco’s costly purchase of power
By: Julie M. Aurelio 05:05 AM November 22, 2020
https://business.inquirer.net/312308/probe-sought-on-meralcos-costly-purchase-of-power
Militant lawmakers want the House of Representatives to investigate the Manila Electric Company’s (Meralco) alleged purchase of costly power from a coal-fired power plant in Mauban, Quezon.
Bayan Muna Representatives Carlos Zarate, Ferdinand Gaite and Eufemia Cullamat filed House Resolution No. 1350 to probe the high generation rates imposed by the Quezon Power Philippines Ltd. (QPPL)
“Based on an analysis of Meralco generation purchases for 2019, QPPL has been perennially the most expensive coal power in the country since 2000 with rates 9 to 12 percent higher than the other coal plants. However, in 2020, Meralco paid QPPL 51 to 82 percent higher than other coal plants,” the resolution said.
The lawmakers want the House energy committee “to investigate, in aid of legislation, Meralco on its alleged payment of overpriced generation rates” to QPPL.
In their resolution, the solons noted that Meralco’s generation charge went down from P4.9039 per kilowatt hour (kWh) in January 2020 to P4.1241 in August 2020.
The 16-percent reduction was attributed to Meralco’s negotiation with independent power producers to “declare a situation of force majeure during the COVID-19 pandemic,” in which the take or pay provisions of the contracts were not applied. This saved for the consumers around P1.5 billion.
The measure cited analysis from Bayan Muna and Matuwid na Singil sa Kuryente Consumers Alliance that the price of coal used by coal-fired plants went down by 28 percent from $69.66 in January to $50.34 in August, and that the Wholesale Electricity Spot Market price fell by 193 percent from P8.49 per kWh in January to only P2.421 per kWh in August.
“From January to September 2020, Meralco allegedly bought 1.601 billion kWh of electricity from QPPL at an average price of P6.73 per kWh, while the average price of all other coal power suppliers to Meralco for that period is about P4.20 per kwh,” they said.
They said this was 51 percent higher than AC Energy’s P4.55, 66 percent higher than San Miguel’s Sual Power Plant’s P4.051, 82 percent higher than Therma Power in Pagbilao’s P3.6549 per kWh, and 66 percent higher than the rates of the new 460 megawatt San Buenaventura coal plant at P4.0533 per kWh.
“Last January 2020, the QPPL rates went up from P6.5919 per kWh to P6.723 per kWh despite coal prices coming down by 28 percent during that period. Moreover, last March 2020, Meralco allegedly paid QPPL at a rate of P28 kWh, which was passed on to consumers,” the measure said.
https://business.inquirer.net/312308/probe-sought-on-meralcos-costly-purchase-of-power
Militant lawmakers want the House of Representatives to investigate the Manila Electric Company’s (Meralco) alleged purchase of costly power from a coal-fired power plant in Mauban, Quezon.
Bayan Muna Representatives Carlos Zarate, Ferdinand Gaite and Eufemia Cullamat filed House Resolution No. 1350 to probe the high generation rates imposed by the Quezon Power Philippines Ltd. (QPPL)
“Based on an analysis of Meralco generation purchases for 2019, QPPL has been perennially the most expensive coal power in the country since 2000 with rates 9 to 12 percent higher than the other coal plants. However, in 2020, Meralco paid QPPL 51 to 82 percent higher than other coal plants,” the resolution said.
The lawmakers want the House energy committee “to investigate, in aid of legislation, Meralco on its alleged payment of overpriced generation rates” to QPPL.
In their resolution, the solons noted that Meralco’s generation charge went down from P4.9039 per kilowatt hour (kWh) in January 2020 to P4.1241 in August 2020.
The 16-percent reduction was attributed to Meralco’s negotiation with independent power producers to “declare a situation of force majeure during the COVID-19 pandemic,” in which the take or pay provisions of the contracts were not applied. This saved for the consumers around P1.5 billion.
The measure cited analysis from Bayan Muna and Matuwid na Singil sa Kuryente Consumers Alliance that the price of coal used by coal-fired plants went down by 28 percent from $69.66 in January to $50.34 in August, and that the Wholesale Electricity Spot Market price fell by 193 percent from P8.49 per kWh in January to only P2.421 per kWh in August.
“From January to September 2020, Meralco allegedly bought 1.601 billion kWh of electricity from QPPL at an average price of P6.73 per kWh, while the average price of all other coal power suppliers to Meralco for that period is about P4.20 per kwh,” they said.
They said this was 51 percent higher than AC Energy’s P4.55, 66 percent higher than San Miguel’s Sual Power Plant’s P4.051, 82 percent higher than Therma Power in Pagbilao’s P3.6549 per kWh, and 66 percent higher than the rates of the new 460 megawatt San Buenaventura coal plant at P4.0533 per kWh.
“Last January 2020, the QPPL rates went up from P6.5919 per kWh to P6.723 per kWh despite coal prices coming down by 28 percent during that period. Moreover, last March 2020, Meralco allegedly paid QPPL at a rate of P28 kWh, which was passed on to consumers,” the measure said.
AC Energy broadens role in Ayala Group
Catherine Talavera (The Philippine Star) - November 21, 2020 - 12:00am
https://www.philstar.com/business/2020/11/21/2058302/ac-energy-broadens-role-ayala-group
MANILA, Philippines — AC Energy, the power unit of the Ayala Group, has broadened its role in the conglomerate following the consolidation of the energy, water, transport and logistics businesses.
The Securities and Exchange Commission has approved the change in name from AC Energy Inc. to AC Energy and Infrastructure Corp. (ACEIC) which the company said was in line with the previously announced consolidation of the Ayala Group’s energy, water and infrastructure businesses under ACEIC.
ACEIC, a wholly owned subsidiary of AC Energy, is the holding company for the listed energy platform AC Energy Philippines (ACEN).
Apart from ACEN, the integrated platform will also house listed Manila Water Co. Inc. as well its unlisted unit AC Infrastructure Holdings Corp.
Ayala Corp. earlier said the consolidation of its businesses under ACEIC would create a sizable and agile platform that would boost its foothold within the country’s physical infrastructure space.
“We believe that consolidating our various infrastructure interests creates a formidable platform with a strong balance sheet and allows Ayala to participate in the many opportunities in infrastructure development in a more significant way,” Ayala chairman and CEO Jaime Augusto Zobel de Ayala said.
“The energy and infrastructure platform emerges as one of the major pillars of Ayala, along with real estate, banking and telecommunications,” he said.
Ayala president and COO Fernando Zobel de Ayala earlier said the consolidation could generate a host of opportunities for the firm’s various infrastructure businesses and scale up its investments in transport, logistics and water sectors.
He added that with the consolidation, the company would continue to rapidly expand its expansion into renewable energy.
ACEN currently has a capacity of around 1,000 megawatts in the Philippines, of which over half are from renewable sources.
https://www.philstar.com/business/2020/11/21/2058302/ac-energy-broadens-role-ayala-group
MANILA, Philippines — AC Energy, the power unit of the Ayala Group, has broadened its role in the conglomerate following the consolidation of the energy, water, transport and logistics businesses.
The Securities and Exchange Commission has approved the change in name from AC Energy Inc. to AC Energy and Infrastructure Corp. (ACEIC) which the company said was in line with the previously announced consolidation of the Ayala Group’s energy, water and infrastructure businesses under ACEIC.
ACEIC, a wholly owned subsidiary of AC Energy, is the holding company for the listed energy platform AC Energy Philippines (ACEN).
Apart from ACEN, the integrated platform will also house listed Manila Water Co. Inc. as well its unlisted unit AC Infrastructure Holdings Corp.
Ayala Corp. earlier said the consolidation of its businesses under ACEIC would create a sizable and agile platform that would boost its foothold within the country’s physical infrastructure space.
“We believe that consolidating our various infrastructure interests creates a formidable platform with a strong balance sheet and allows Ayala to participate in the many opportunities in infrastructure development in a more significant way,” Ayala chairman and CEO Jaime Augusto Zobel de Ayala said.
“The energy and infrastructure platform emerges as one of the major pillars of Ayala, along with real estate, banking and telecommunications,” he said.
Ayala president and COO Fernando Zobel de Ayala earlier said the consolidation could generate a host of opportunities for the firm’s various infrastructure businesses and scale up its investments in transport, logistics and water sectors.
He added that with the consolidation, the company would continue to rapidly expand its expansion into renewable energy.
ACEN currently has a capacity of around 1,000 megawatts in the Philippines, of which over half are from renewable sources.
Joint oil exploration among Asean state firms pushed
By: Ronnel W. Domingo 04:05 AM November 21, 2020
https://business.inquirer.net/312157/joint-oil-exploration-among-asean-state-firms-pushed
Energy Secretary Alfonso Cusi has renewed a push for joint exploration of oil and gas resources among state-run petroleum firms in shared borders in the Association of Southeast Asian Nations (Asean), saying this would help beef up the region’s energy resilience in the face of natural disasters.
Cusi reiterated a call he made last year in the Asean Ministers of Energy Meeting, which this year—the 38th such annual meeting—was held online.
He also asked the Asean Council on Petroleum to review existing sharing agreements on oil and gas exploration and production as well as recommend similar or modified agreements for possible adoption.
Cusi reiterated these messages just a few weeks after he announced a unilateral lifting of a moratorium of exploration activities in areas within the West Philippine Sea (WPS), which are part of a territorial dispute with China.
The lifting of the status of force majeure as well as directives for petroleum contractors to resume their work was made while Manila and Beijing continue to engage in talks about possible joint development of resources in the disputed areas. No progress has been made public about such talks.
“This development would augur well for our economic recovery in the midst of the COVID-19 pandemic, given that the resumption of work would infuse our economy with fresh investments and help generate high-skill employment opportunities,” Cusi told his Asean counterparts.
Cusi also urged the body dubbed Heads of Asean Power Utilities/Authorities (Hapua) to integrate emergency preparedness and resiliency in its future work plan, instead of limiting itself to the physical aspect of power grid interconnection.
The long-running effort to interlink power grids in Asean—which enables the export and import of electricity across borders—has made some progress in mainland Southeast Asia or the Indochinese Peninsula (Laos, Vietnam, Cambodia, Thailand and Myanmar).
Since other Asean members like the Philippines are overseas and practically off-grid, they are peripheral to the power interconnection project.
“I would like to urge Hapua to take bolder steps and incorporate preparedness and resiliency components into the Asean Power Grid,” Cusi said.
“In addition to interconnectivity, we must also ensure that energy systems are able to withstand and bounce back quickly from the impact of disasters,” he added. “We must not allow ourselves to become paralyzed in the face of adversities.”
https://business.inquirer.net/312157/joint-oil-exploration-among-asean-state-firms-pushed
Energy Secretary Alfonso Cusi has renewed a push for joint exploration of oil and gas resources among state-run petroleum firms in shared borders in the Association of Southeast Asian Nations (Asean), saying this would help beef up the region’s energy resilience in the face of natural disasters.
Cusi reiterated a call he made last year in the Asean Ministers of Energy Meeting, which this year—the 38th such annual meeting—was held online.
He also asked the Asean Council on Petroleum to review existing sharing agreements on oil and gas exploration and production as well as recommend similar or modified agreements for possible adoption.
Cusi reiterated these messages just a few weeks after he announced a unilateral lifting of a moratorium of exploration activities in areas within the West Philippine Sea (WPS), which are part of a territorial dispute with China.
The lifting of the status of force majeure as well as directives for petroleum contractors to resume their work was made while Manila and Beijing continue to engage in talks about possible joint development of resources in the disputed areas. No progress has been made public about such talks.
“This development would augur well for our economic recovery in the midst of the COVID-19 pandemic, given that the resumption of work would infuse our economy with fresh investments and help generate high-skill employment opportunities,” Cusi told his Asean counterparts.
Cusi also urged the body dubbed Heads of Asean Power Utilities/Authorities (Hapua) to integrate emergency preparedness and resiliency in its future work plan, instead of limiting itself to the physical aspect of power grid interconnection.
The long-running effort to interlink power grids in Asean—which enables the export and import of electricity across borders—has made some progress in mainland Southeast Asia or the Indochinese Peninsula (Laos, Vietnam, Cambodia, Thailand and Myanmar).
Since other Asean members like the Philippines are overseas and practically off-grid, they are peripheral to the power interconnection project.
“I would like to urge Hapua to take bolder steps and incorporate preparedness and resiliency components into the Asean Power Grid,” Cusi said.
“In addition to interconnectivity, we must also ensure that energy systems are able to withstand and bounce back quickly from the impact of disasters,” he added. “We must not allow ourselves to become paralyzed in the face of adversities.”
Alsons to issue P3.0-B worth of commercial papers
Published November 21, 2020, 5:30 AM by Myrna M. Velasco
https://mb.com.ph/2020/11/21/alsons-to-issue-p3-0-b-worth-of-commercial-papers/
Alcantara-led Alsons Consolidated Resources Inc. has secured the approval of its board for the targeted issuance of P3.0 billion worth of commercial papers (CPs) as part of its forward fund-raising activity.
The company said the CPs are “to be issued in one or more tranches,” within the three-year validity period as approved by the regulators.
The Alcantara firm emphasized that the initial tranche is targeted at P2.0 billion and this is scheduled by March next year.
The company is currently advancing several power projects that could then beef up its portfolio both in thermal as well as in renewable energy (RE) space.
This year, the project already at construction phase is its P4.5 billion Siguil run-of-river hydropower facility sited in Sarangani province that will yield 14.5-megawatt capacity; while the P16 billion San Ramon coal-fired power venture of 105MW capacity in Zamboanga City is also targeted to kick off construction soon.
ACR noted its Siguil project “is ongoing and targeting completion in 2022,” and this will be the group’s initial plunge into renewable energy (RE) development.
For the San Ramon thermal power project, the Alcantara firm emphasized that construction will begin next year; and this is expected to reach commercial operations in 2024.
The facility will contemplatively solve the lingering dilemma of Zamboanga City’s power supply interruptions, because the area will already have source of baseload electricity supply that won’t be hurdled by transmission bottlenecks.
Next on the company’s project blueprints would be array of run-of-river hydropower projects in Visayas and Mindanao that will then shore up the company’s RE platform.
Despite the economic setbacks instigated by the Covid-19 pandemic, ACR has been among the players in the power industry that was able to buck the odds and came out financially strong this year, based on its higher income reported as of end-third quarter of this year.
Company officials previously indicated that Mindanao fortuitously recovered faster when power grids had been plagued with demand slump, especially during the lockdown periods of March to May because of the health crisis.
The company currently has 468 megawatts of power capacity, and that scale of portfolio makes it one of the biggest power producers in Mindanao grid. Its major investment to-date is the US$570 million Sarangani coal-fired power project that added up 210MW capacity in the country’s southernmost power grid.
https://mb.com.ph/2020/11/21/alsons-to-issue-p3-0-b-worth-of-commercial-papers/
Alcantara-led Alsons Consolidated Resources Inc. has secured the approval of its board for the targeted issuance of P3.0 billion worth of commercial papers (CPs) as part of its forward fund-raising activity.
The company said the CPs are “to be issued in one or more tranches,” within the three-year validity period as approved by the regulators.
The Alcantara firm emphasized that the initial tranche is targeted at P2.0 billion and this is scheduled by March next year.
The company is currently advancing several power projects that could then beef up its portfolio both in thermal as well as in renewable energy (RE) space.
This year, the project already at construction phase is its P4.5 billion Siguil run-of-river hydropower facility sited in Sarangani province that will yield 14.5-megawatt capacity; while the P16 billion San Ramon coal-fired power venture of 105MW capacity in Zamboanga City is also targeted to kick off construction soon.
ACR noted its Siguil project “is ongoing and targeting completion in 2022,” and this will be the group’s initial plunge into renewable energy (RE) development.
For the San Ramon thermal power project, the Alcantara firm emphasized that construction will begin next year; and this is expected to reach commercial operations in 2024.
The facility will contemplatively solve the lingering dilemma of Zamboanga City’s power supply interruptions, because the area will already have source of baseload electricity supply that won’t be hurdled by transmission bottlenecks.
Next on the company’s project blueprints would be array of run-of-river hydropower projects in Visayas and Mindanao that will then shore up the company’s RE platform.
Despite the economic setbacks instigated by the Covid-19 pandemic, ACR has been among the players in the power industry that was able to buck the odds and came out financially strong this year, based on its higher income reported as of end-third quarter of this year.
Company officials previously indicated that Mindanao fortuitously recovered faster when power grids had been plagued with demand slump, especially during the lockdown periods of March to May because of the health crisis.
The company currently has 468 megawatts of power capacity, and that scale of portfolio makes it one of the biggest power producers in Mindanao grid. Its major investment to-date is the US$570 million Sarangani coal-fired power project that added up 210MW capacity in the country’s southernmost power grid.
Diesel, kerosene prices to go up
Published November 21, 2020, 11:57 AM by Myrna M. Velasco
https://mb.com.ph/2020/11/21/diesel-kerosene-prices-to-go-up/
Filipino consumers will need to brace for increase in diesel prices next week that may range from P0.35 to P0.45 per liter; while kerosene prices may go up from P0.20 to P0.30 per liter.
For gasoline products, based on the initial calculation of the oil companies, there is a possibility of ‘no movement’ in prices, or there could just be a slight rollback of P0.05 per liter.
The oil industry players are anticipated to adjust their prices on Tuesday (November 24), in keeping with the routine that the deregulated downstream petroleum sector has been enforcing.
Reckoning from last week’s hefty cost swings, the net reduction in pump prices in the last 11 months had already been trimmed to P4.62 per liter for gasoline; P9.36 per liter for diesel; and P12.59 per liter for kerosene.
Market analysts are currently keeping a close tab on developments relating to the rollout of Covid-19 vaccine, since this is seen as the ultimate impetus to economic recoveries around the world and for people’s movement to revert to normal.
Until yearend, it is anticipated that oil demand may still be on sluggish recovery, but this is projected rising by more than 3.0 million barrels next year.
In terms of economic recovery, there are prognosis by experts that markets in the Asian region will lead the way — primarily by China, India and the Southeast Asian countries.
In the Philippines, areas ravaged by the recent passing of typhoon Ulysses are on 15-day price freeze for kerosene and liquefied petroleum gas (LPG) products from the time that their local government unit (LGU) leadership declared a state of calamity
https://mb.com.ph/2020/11/21/diesel-kerosene-prices-to-go-up/
Filipino consumers will need to brace for increase in diesel prices next week that may range from P0.35 to P0.45 per liter; while kerosene prices may go up from P0.20 to P0.30 per liter.
For gasoline products, based on the initial calculation of the oil companies, there is a possibility of ‘no movement’ in prices, or there could just be a slight rollback of P0.05 per liter.
The oil industry players are anticipated to adjust their prices on Tuesday (November 24), in keeping with the routine that the deregulated downstream petroleum sector has been enforcing.
Reckoning from last week’s hefty cost swings, the net reduction in pump prices in the last 11 months had already been trimmed to P4.62 per liter for gasoline; P9.36 per liter for diesel; and P12.59 per liter for kerosene.
Market analysts are currently keeping a close tab on developments relating to the rollout of Covid-19 vaccine, since this is seen as the ultimate impetus to economic recoveries around the world and for people’s movement to revert to normal.
Until yearend, it is anticipated that oil demand may still be on sluggish recovery, but this is projected rising by more than 3.0 million barrels next year.
In terms of economic recovery, there are prognosis by experts that markets in the Asian region will lead the way — primarily by China, India and the Southeast Asian countries.
In the Philippines, areas ravaged by the recent passing of typhoon Ulysses are on 15-day price freeze for kerosene and liquefied petroleum gas (LPG) products from the time that their local government unit (LGU) leadership declared a state of calamity
Switch to electric vehicles could ‘end oil era’
posted November 20, 2020 at 08:00 pm by AFP
https://manilastandard.net/business/power-technology/340028/switch-to-electric-vehicles-could-end-oil-era-.html
Paris, France—Emerging markets switching from petrol and diesel engines to electric vehicles (EVs) could save $250 billion annually and slash expected growth in global oil demand by as much as 70 percent, an industry analysis showed Friday.
As more and more nations such as China and India look to grow their electric fleet, they are in turn reducing reliance on imported oil, with EVs forecasted to soon be cheaper to make and run than their fossil-fuel-fired cousins.
An analysis of EV cost trends by industry watchdog Carbon Tracker found that a switch to EVs could save China—a world leader in the technology—$80 billion each year by 2030.
Increased EV production would drastically reduce the cost of oil imports, which account for 1.5 percent of China’s GDP and 2.6 percent of India’s.
The analysis found that the EV revolution could essentially fund itself as component costs fall over time and governments turn away from fossil fuel infrastructure such as pipelines and refineries which risk becoming stranded assets as transportation gets greener.
“This is a simple choice between growing dependency on what has been expensive oil produced by a foreign cartel, or domestic electricity produced by renewable sources whose prices fall over time,” said Kingsmill Bond, Carbon Tracker energy strategy and lead report author.
“Emerging market importers will bring the oil era to an end.”
Transport in emerging markets accounts for more than 80 percent of all expected growth in oil demand by 2003.
Analyzing the International Energy Agency’s business as usual emissions scenario, the report found that half of that growth is forecast to come from China and India.
It calculated that by switching to the IEA’s Sustainable Development Scenario—under which EVs account for 40 percent of car sales in China and 30 percent in India- oil demand growth would be slashed by 70 percent this decade.
The authors said a fall of 20 percent in battery costs in a decade had driven “huge new markets” for EV growth.
Using industry baseline figures, the analysis calculated that the cost of importing oil to run an average car over its 15-year lifetime ($10,000) is already 10 times higher than the cost of the solar equipment needed to power an equivalent EV.
https://manilastandard.net/business/power-technology/340028/switch-to-electric-vehicles-could-end-oil-era-.html
Paris, France—Emerging markets switching from petrol and diesel engines to electric vehicles (EVs) could save $250 billion annually and slash expected growth in global oil demand by as much as 70 percent, an industry analysis showed Friday.
As more and more nations such as China and India look to grow their electric fleet, they are in turn reducing reliance on imported oil, with EVs forecasted to soon be cheaper to make and run than their fossil-fuel-fired cousins.
An analysis of EV cost trends by industry watchdog Carbon Tracker found that a switch to EVs could save China—a world leader in the technology—$80 billion each year by 2030.
Increased EV production would drastically reduce the cost of oil imports, which account for 1.5 percent of China’s GDP and 2.6 percent of India’s.
The analysis found that the EV revolution could essentially fund itself as component costs fall over time and governments turn away from fossil fuel infrastructure such as pipelines and refineries which risk becoming stranded assets as transportation gets greener.
“This is a simple choice between growing dependency on what has been expensive oil produced by a foreign cartel, or domestic electricity produced by renewable sources whose prices fall over time,” said Kingsmill Bond, Carbon Tracker energy strategy and lead report author.
“Emerging market importers will bring the oil era to an end.”
Transport in emerging markets accounts for more than 80 percent of all expected growth in oil demand by 2003.
Analyzing the International Energy Agency’s business as usual emissions scenario, the report found that half of that growth is forecast to come from China and India.
It calculated that by switching to the IEA’s Sustainable Development Scenario—under which EVs account for 40 percent of car sales in China and 30 percent in India- oil demand growth would be slashed by 70 percent this decade.
The authors said a fall of 20 percent in battery costs in a decade had driven “huge new markets” for EV growth.
Using industry baseline figures, the analysis calculated that the cost of importing oil to run an average car over its 15-year lifetime ($10,000) is already 10 times higher than the cost of the solar equipment needed to power an equivalent EV.
Cusi asks ASEAN neighbors to join oil exploration at West Philippine Sea
Published November 20, 2020, 1:00 PM by Myrna M. Velasco
https://mb.com.ph/2020/11/20/cusi-asks-asean-neighbors-to-join-oil-exploration-at-west-philippine-sea/
With the West Philippine Sea already legally opened by the government for oil and gas exploration, Energy Secretary Alfonso G. Cusi has intensified his call on neighbor-countries in the Southeast Asian region to join in the ‘upstream exploration ventures’ in Philippine waters.
In his address at the 38th ASEAN Ministers on Energy Meeting (AMEM), the Philippine energy chief persuaded ASEAN national oil companies (NOCs) to explore collaborative oil and gas exploration development, so the region could build up utilization of its indigenous energy resources.
He similarly advanced calls on the ASEAN Council on Petroleum (ASCOPE) “to revisit the existing sharing agreements on oil and gas exploration and production;” and when feasible, that body must recommend similar or modified agreements that the ASEAN countries could possibly adopt or enforce.
Cusi said the Philippines is counting on ASEAN peers when it comes to strengthening “regional collaboration and cooperation on energy resource exploration, development and production.”
Last month, the Department of Energy (DOE) announced the lifting of the moratorium on petroleum exploration and development at disputed territories within the West Philippine Sea; and Cusi himself indicated that holders of service contracts can already proceed with their work programs and drillings even without the concurrence of China.
“This development would augur well for our economic recovery in the midst of the Covid-19 pandemic, given that the resumption of work would infuse our economy with fresh investments and help generate high skill employment opportunities,” Cusi stressed.
He thus sounded off to his co-Ministers at ASEAN that “with all of us sharing the common aspiration of attaining energy security for our respective countries, we must examine the advantages belonging to this multilateral association in order to fast-track its realization.”
The policy declaration of the Philippine government on the moratorium lifting of oil and gas exploration has yet to yield tangible results, especially in the targeted substantial flow of capital or investments in the upstream petroleum sector.
Pragmatically, the Philippines’ oil and gas finds are nascent versus ASEAN neighbors, because the country’s resources are not just of ‘low prospectivity’ — but there are also myriad of regulatory hurdles impeding investment flows.
Presidential Decree 87 or the Philippine Oil and Gas Law is the governing policy for ventures in the upstream petroleum sector; and it also prescribes the 60:40 royalty sharing arrangement between the State and the service contractor – with the government cornering the higher share.
Nevertheless, there is still a pending case in the Supreme Court badly needing resolution so the prospective investors could have a clear sense on the treatment of income tax when it comes to the royalty share accorded to the service contractor.
The service contract of the country’s biggest gas discovery – the Malampaya field – will expire in 2024, but until now, there is no definitive resource find yet that will replace the void that will be left by Malampaya.
https://mb.com.ph/2020/11/20/cusi-asks-asean-neighbors-to-join-oil-exploration-at-west-philippine-sea/
With the West Philippine Sea already legally opened by the government for oil and gas exploration, Energy Secretary Alfonso G. Cusi has intensified his call on neighbor-countries in the Southeast Asian region to join in the ‘upstream exploration ventures’ in Philippine waters.
In his address at the 38th ASEAN Ministers on Energy Meeting (AMEM), the Philippine energy chief persuaded ASEAN national oil companies (NOCs) to explore collaborative oil and gas exploration development, so the region could build up utilization of its indigenous energy resources.
He similarly advanced calls on the ASEAN Council on Petroleum (ASCOPE) “to revisit the existing sharing agreements on oil and gas exploration and production;” and when feasible, that body must recommend similar or modified agreements that the ASEAN countries could possibly adopt or enforce.
Cusi said the Philippines is counting on ASEAN peers when it comes to strengthening “regional collaboration and cooperation on energy resource exploration, development and production.”
Last month, the Department of Energy (DOE) announced the lifting of the moratorium on petroleum exploration and development at disputed territories within the West Philippine Sea; and Cusi himself indicated that holders of service contracts can already proceed with their work programs and drillings even without the concurrence of China.
“This development would augur well for our economic recovery in the midst of the Covid-19 pandemic, given that the resumption of work would infuse our economy with fresh investments and help generate high skill employment opportunities,” Cusi stressed.
He thus sounded off to his co-Ministers at ASEAN that “with all of us sharing the common aspiration of attaining energy security for our respective countries, we must examine the advantages belonging to this multilateral association in order to fast-track its realization.”
The policy declaration of the Philippine government on the moratorium lifting of oil and gas exploration has yet to yield tangible results, especially in the targeted substantial flow of capital or investments in the upstream petroleum sector.
Pragmatically, the Philippines’ oil and gas finds are nascent versus ASEAN neighbors, because the country’s resources are not just of ‘low prospectivity’ — but there are also myriad of regulatory hurdles impeding investment flows.
Presidential Decree 87 or the Philippine Oil and Gas Law is the governing policy for ventures in the upstream petroleum sector; and it also prescribes the 60:40 royalty sharing arrangement between the State and the service contractor – with the government cornering the higher share.
Nevertheless, there is still a pending case in the Supreme Court badly needing resolution so the prospective investors could have a clear sense on the treatment of income tax when it comes to the royalty share accorded to the service contractor.
The service contract of the country’s biggest gas discovery – the Malampaya field – will expire in 2024, but until now, there is no definitive resource find yet that will replace the void that will be left by Malampaya.
Beaver Lopez takes board seat at First Gen
Published November 20, 2020, 1:46 PM by Myrna M. Velasco
https://mb.com.ph/2020/11/20/beaver-lopez-takes-board-seat-at-first-gen/
Scion Manuel “Beaver” L. Lopez Jr. has been designated board director at listed firm First Gen Corporation, taking the seat vacated by his cousin Eugenio “Gabby” L. Lopez III, who bowed out from the company’s board last September.
In a disclosure to the Philippine Stock Exchange (PSE), the Lopez firm indicated that the appointment of Beaver Lopez was approved by the company’s board of directors during their meeting on November 19 (Thursday).
Lopez Jr., is a son of former Manila Electric Company (Meralco) Chairman and Chief Executive Officer Manuel M. Lopez, and he is a brother of ABS-CBN Chairman Martin “Mark” Lopez.
Aside from Lopez’s appointment into the First Gen board, the company also greenlighted the designation of David Simon Luboff as senior board advisor. Luboff is a partner and head for Asia Pacific of KKR, a global investment firm which invested P9.6 billion in the Lopez firm in June to corner 11.9-percent stake through tender offer.
Additionally, First Gen informed the local bourse that it appointed lawyer Mario Luza Bautista, founding partner of Poblador Bautista and Reyes Law Offices, as a senior board adviser at the energy firm.
Another matter discussed in the company’s board meeting was its declaration of cash dividend amounting to P0.28 per share for the company’s outstanding common shares. This will cover stockholders as of record date December 7, 2020 and will be payable on December 22 this year.
First Gen is a leading investor in gas-fired power generation; while its subsidiary Energy Development Corporation (EDC) is a trailblazer not just in the country’s geothermal sector but is also a ranking player in the world.
The energy firm of the Lopez group currently has 3,492 megawatts of installed capacity on its portfolio. First Gen, which is a subsidiary of First Philippine Holdings Corporation, already counts more than 20 years of experience in the development of power projects.
Beyond gas and geothermal, the Lopez group is also a front-runner in investments on other renewable energy technologies – mainly for solar, wind and hydro facilities.
Onward, the company is targeting to pioneer liquefied natural gas (LNG) importation into the country, with its interim offshore LNG terminal (IOT) that is expected to reach commercial operations by the third quarter of 2022.
As indicated by First Gen President and COO Francis Giles B. Puno, the company is already “gaining a lot of positive momentum in developing its LNG platform.” This project, that will have floating storage regasification unit (FSRU) as a key component, is its joint venture with Japanese firm Tokyo Gas Co. Ltd. The company just recently awarded the engineering, procurement and construction (EPC) contract for the IOT project to the Philippine subsidiary of Australian firm McConnell Dowell that had been served with a notice to proceed on construction by fourth quarter of this year.
https://mb.com.ph/2020/11/20/beaver-lopez-takes-board-seat-at-first-gen/
Scion Manuel “Beaver” L. Lopez Jr. has been designated board director at listed firm First Gen Corporation, taking the seat vacated by his cousin Eugenio “Gabby” L. Lopez III, who bowed out from the company’s board last September.
In a disclosure to the Philippine Stock Exchange (PSE), the Lopez firm indicated that the appointment of Beaver Lopez was approved by the company’s board of directors during their meeting on November 19 (Thursday).
Lopez Jr., is a son of former Manila Electric Company (Meralco) Chairman and Chief Executive Officer Manuel M. Lopez, and he is a brother of ABS-CBN Chairman Martin “Mark” Lopez.
Aside from Lopez’s appointment into the First Gen board, the company also greenlighted the designation of David Simon Luboff as senior board advisor. Luboff is a partner and head for Asia Pacific of KKR, a global investment firm which invested P9.6 billion in the Lopez firm in June to corner 11.9-percent stake through tender offer.
Additionally, First Gen informed the local bourse that it appointed lawyer Mario Luza Bautista, founding partner of Poblador Bautista and Reyes Law Offices, as a senior board adviser at the energy firm.
Another matter discussed in the company’s board meeting was its declaration of cash dividend amounting to P0.28 per share for the company’s outstanding common shares. This will cover stockholders as of record date December 7, 2020 and will be payable on December 22 this year.
First Gen is a leading investor in gas-fired power generation; while its subsidiary Energy Development Corporation (EDC) is a trailblazer not just in the country’s geothermal sector but is also a ranking player in the world.
The energy firm of the Lopez group currently has 3,492 megawatts of installed capacity on its portfolio. First Gen, which is a subsidiary of First Philippine Holdings Corporation, already counts more than 20 years of experience in the development of power projects.
Beyond gas and geothermal, the Lopez group is also a front-runner in investments on other renewable energy technologies – mainly for solar, wind and hydro facilities.
Onward, the company is targeting to pioneer liquefied natural gas (LNG) importation into the country, with its interim offshore LNG terminal (IOT) that is expected to reach commercial operations by the third quarter of 2022.
As indicated by First Gen President and COO Francis Giles B. Puno, the company is already “gaining a lot of positive momentum in developing its LNG platform.” This project, that will have floating storage regasification unit (FSRU) as a key component, is its joint venture with Japanese firm Tokyo Gas Co. Ltd. The company just recently awarded the engineering, procurement and construction (EPC) contract for the IOT project to the Philippine subsidiary of Australian firm McConnell Dowell that had been served with a notice to proceed on construction by fourth quarter of this year.
Friday, November 20, 2020
EDC tagged as one of Asia’s Top Sustainability Advocates
INQUIRER.net BrandRoom / 07:00 AM November 20, 2020
https://business.inquirer.net/312066/edc-tagged-as-one-of-asias-top-sustainability-advocates
Its pursuit to produce 100% clean and renewable energy as it enhances the environment and empowers its stakeholders accorded Lopez-led geothermal power leader Energy Development Corporation (EDC), the honor of being Asia’s Top Sustainability Advocate in the recently concluded 2020 Asia Corporate Excellence & Sustainability (ACES) Awards.
With over 400 nominees in this year’s awarding ceremony held virtually in Malaysia due to the constraints brought about by the coronavirus disease (COVID-19) pandemic, EDC emerged as one of the top companies that has “genuine interest in the well-being of all its stakeholders.”
The ACES Top Sustainability Advocates award was conferred to companies that have embedded CSR initiatives into its policies and operations, and have a high level of employee and top management involvement in the programs.
“Ensuring inclusive growth among our partner communities has always been embedded in our operations. Transforming them into environmental stewards who help us maintain our BINHI reforestation projects in our areas of operation has made our efforts more meaningful and crucial to achieving our new mission of forging collaborative pathways for a decarbonized and regenerative future,” Atty. Allan V. Barcena, head of EDC’s CSR-PR group, said.
This new mission that EDC and the rest of the Lopez group has committed to is all about elevating or improving the state of everything they touch, including the communities, the environment, employees, co-creators, and customers.
Established in 1976, EDC is the world’s largest vertically integrated geothermal company and the largest diversified renewable energy producer in the country, with a total installed capacity of almost 1,500 MW of purely renewable energy. Environmental conservation as well as community upliftment have always been embedded in its operation and are both integral to its long-term viability and success in addressing the energy needs of the Philippines.
Among the many CSR programs of EDC, its 30-year old coffee production project with the Baslay Farmers’ Association (BFA) in its geothermal site in Negros Oriental brought new life to the former kaingineros whose way of living then was through slash and burn farming. Through the Baslay Coffee program, the kaingineros have been transformed into forest stewards who now make their living through production of premium grade Arabica and Robusta coffee grounds while protecting the environment as part of EDC’s BINHI greening legacy program.
Education is likewise one of the major pillars of EDC’s CSR program, with its KEITECH Educational Foundation, Inc (KEITECH) technical-vocational school being one of its primary programs that continues to play a vital role not only in the future of underprivileged youth but also in forging a regenerative public-private partnership. Known for the consistent 100% passing rate of its students in all Technical Education and Skills Development Authority (TESDA) National Certification exams for over 10 years, KEITECH has helped the poorest of the poor out-of-school youth from the municipality of Kananga and Ormoc City in Leyte acquire quality technical-vocational skills and good values, thereby making them highly in demand among employers here and abroad.
Organized by Malaysian-based sustainability network, MORS Group, ACES has developed instruments that propel companies in Asia towards sustainable growth since 2012.
Aside from the usual challenges faced by companies from different industries, 2020 has been a more difficult year given the onset of the COVID-19 pandemic, according to Shanggari B, Chief Executive Officer of MORS Group.
With more than 21 companies from the Philippines winning this year, EDC surfaced as one whose CSR focus area has always been a combination of employee engagement, community empowerment, and environmental preservation.
“The Filipino presence has been something of a given at each ACES. There is something about companies operating in the Philippines which have a predisposition towards a natural affinity for the common good of employees,” Shanggari B said.
“While it was a given that the number of nominees increased year-on-year, candidates for awards were put through an even more gruelling judging process, and by quite an unexpected ‘judge’ which is COVID-19 itself,” she added.
EDC generates over 40% of the Philippines’ renewable energy output and serves about 10% of the country’s overall electricity demand with its installed capacity of over 1,500MW. Its over 1,200MW geothermal portfolio accounts for 62% of the country’s total installed geothermal capacity, putting the Philippines on the map as the world’s third largest geothermal power producer.
https://business.inquirer.net/312066/edc-tagged-as-one-of-asias-top-sustainability-advocates
Its pursuit to produce 100% clean and renewable energy as it enhances the environment and empowers its stakeholders accorded Lopez-led geothermal power leader Energy Development Corporation (EDC), the honor of being Asia’s Top Sustainability Advocate in the recently concluded 2020 Asia Corporate Excellence & Sustainability (ACES) Awards.
With over 400 nominees in this year’s awarding ceremony held virtually in Malaysia due to the constraints brought about by the coronavirus disease (COVID-19) pandemic, EDC emerged as one of the top companies that has “genuine interest in the well-being of all its stakeholders.”
The ACES Top Sustainability Advocates award was conferred to companies that have embedded CSR initiatives into its policies and operations, and have a high level of employee and top management involvement in the programs.
“Ensuring inclusive growth among our partner communities has always been embedded in our operations. Transforming them into environmental stewards who help us maintain our BINHI reforestation projects in our areas of operation has made our efforts more meaningful and crucial to achieving our new mission of forging collaborative pathways for a decarbonized and regenerative future,” Atty. Allan V. Barcena, head of EDC’s CSR-PR group, said.
This new mission that EDC and the rest of the Lopez group has committed to is all about elevating or improving the state of everything they touch, including the communities, the environment, employees, co-creators, and customers.
Established in 1976, EDC is the world’s largest vertically integrated geothermal company and the largest diversified renewable energy producer in the country, with a total installed capacity of almost 1,500 MW of purely renewable energy. Environmental conservation as well as community upliftment have always been embedded in its operation and are both integral to its long-term viability and success in addressing the energy needs of the Philippines.
Among the many CSR programs of EDC, its 30-year old coffee production project with the Baslay Farmers’ Association (BFA) in its geothermal site in Negros Oriental brought new life to the former kaingineros whose way of living then was through slash and burn farming. Through the Baslay Coffee program, the kaingineros have been transformed into forest stewards who now make their living through production of premium grade Arabica and Robusta coffee grounds while protecting the environment as part of EDC’s BINHI greening legacy program.
Education is likewise one of the major pillars of EDC’s CSR program, with its KEITECH Educational Foundation, Inc (KEITECH) technical-vocational school being one of its primary programs that continues to play a vital role not only in the future of underprivileged youth but also in forging a regenerative public-private partnership. Known for the consistent 100% passing rate of its students in all Technical Education and Skills Development Authority (TESDA) National Certification exams for over 10 years, KEITECH has helped the poorest of the poor out-of-school youth from the municipality of Kananga and Ormoc City in Leyte acquire quality technical-vocational skills and good values, thereby making them highly in demand among employers here and abroad.
Organized by Malaysian-based sustainability network, MORS Group, ACES has developed instruments that propel companies in Asia towards sustainable growth since 2012.
Aside from the usual challenges faced by companies from different industries, 2020 has been a more difficult year given the onset of the COVID-19 pandemic, according to Shanggari B, Chief Executive Officer of MORS Group.
With more than 21 companies from the Philippines winning this year, EDC surfaced as one whose CSR focus area has always been a combination of employee engagement, community empowerment, and environmental preservation.
“The Filipino presence has been something of a given at each ACES. There is something about companies operating in the Philippines which have a predisposition towards a natural affinity for the common good of employees,” Shanggari B said.
“While it was a given that the number of nominees increased year-on-year, candidates for awards were put through an even more gruelling judging process, and by quite an unexpected ‘judge’ which is COVID-19 itself,” she added.
EDC generates over 40% of the Philippines’ renewable energy output and serves about 10% of the country’s overall electricity demand with its installed capacity of over 1,500MW. Its over 1,200MW geothermal portfolio accounts for 62% of the country’s total installed geothermal capacity, putting the Philippines on the map as the world’s third largest geothermal power producer.
Ayala energy firm banks on $500M-$600M funding to buttress portfolio
By: Ronnel Domingo - 05:12 AM November 20, 2020
https://business.inquirer.net/312086/ayala-energy-firm-banks-on-500m-600m-funding-to-buttress-portfolio
AC Energy Philippines Inc. (Acen) expects to complete in the next three quarters its transformation into the Ayala group’s power generation platform for both domestic and overseas projects, with planned fundraising activities intended to muster a total of $500 million to $600 million.
John Eric T. Francia, president and chief executive of Acen, said at a briefing such a kitty would help the company achieve its goal of building a portfolio of 5,000 megawatts of renewable energy capacity by 2025.
“We are confident that we will exceed the 2025 target considering that, by 2021, we expect to be at the halfway mark at 2,550 MW,” Francia said.
Acen, formerly Phinma Energy Corp., already has 1,350 MW of renewable capacity under its belt. By next year, the company expects to add 1,200 MW.
This additional capacity represents Acen’s equity in various projects across the region—the Philippines, Australia, India and Vietnam—with an aggregate renewable energy-based generating capacity of 1,500 MW.
Francia said Acen would also invest in complementary technology such as battery energy storage systems.
“But that will happen over time since we want the technology to mature first,” he said. “On the other hand, we will supplement our renewable energy projects with peaking plants [equipped with] dual-fueled generators.”
He is referring to generators that run on diesel and another type of fuel, such as liquefied natural gas, compressed natural gas or liquefied petroleum gas.
Francia said that, to help realize such plans, Acen needed $1.8 billion to $2 billion in equity by 2023 or 2024.
“We have about $700 million in cash reserves and we will add to that about $500 million to $600 million next year,” he added.
https://business.inquirer.net/312086/ayala-energy-firm-banks-on-500m-600m-funding-to-buttress-portfolio
AC Energy Philippines Inc. (Acen) expects to complete in the next three quarters its transformation into the Ayala group’s power generation platform for both domestic and overseas projects, with planned fundraising activities intended to muster a total of $500 million to $600 million.
John Eric T. Francia, president and chief executive of Acen, said at a briefing such a kitty would help the company achieve its goal of building a portfolio of 5,000 megawatts of renewable energy capacity by 2025.
“We are confident that we will exceed the 2025 target considering that, by 2021, we expect to be at the halfway mark at 2,550 MW,” Francia said.
Acen, formerly Phinma Energy Corp., already has 1,350 MW of renewable capacity under its belt. By next year, the company expects to add 1,200 MW.
This additional capacity represents Acen’s equity in various projects across the region—the Philippines, Australia, India and Vietnam—with an aggregate renewable energy-based generating capacity of 1,500 MW.
Francia said Acen would also invest in complementary technology such as battery energy storage systems.
“But that will happen over time since we want the technology to mature first,” he said. “On the other hand, we will supplement our renewable energy projects with peaking plants [equipped with] dual-fueled generators.”
He is referring to generators that run on diesel and another type of fuel, such as liquefied natural gas, compressed natural gas or liquefied petroleum gas.
Francia said that, to help realize such plans, Acen needed $1.8 billion to $2 billion in equity by 2023 or 2024.
“We have about $700 million in cash reserves and we will add to that about $500 million to $600 million next year,” he added.
Jadestone Energy surrendersm Sulu Sea exploration contract
Catherine Talavera (The Philippine Star) - November 20, 2020 - 12:00am
https://www.philstar.com/business/2020/11/20/2058064/jadestone-energy-surrendersm-sulu-sea-exploration-contract
MANILA, Philippines — Singapore-based oil and gas company Jadestone Energy Inc. has surrendered and terminated Service Contract (SC) 56 in the Sulu Sea as part of its strategy to avoid early phase greenfield exploration and meet its sustainability objectives.
In a statement on its website, Jadestone said its wholly owned subsidiary Mitra Energy (Philippines SC-56) Ltd, together with operator Total E&P Philippines BV, have notified the Department of Energy (DOE) of the voluntary surrender of their entire interest in, and termination of SC 56.
“We remain focused on our strategy of delivering value from producing fields and near-term developments in the Asia Pacific region, while avoiding early-phase greenfield exploration plays such as SC 56, requiring multi-year capital programs prior to production and cashflow,” Jadestone Energy president and chief operating officer Paul Blakeley said.
He said the major investments in new pipelines and facilities would also not fit the company’s sustainability objectives which include focus on maximizing use of existing infrastructure.
“SC 56 was a legacy asset inherited from the previous management and only had option value through a carried well. The decision not to drill the well now removes any interest for Jadestone to continue further new deep-water frontier exploration commitments,” Blakeley said.
He said new deep-water frontier exploration commitments would also not compete with its existing portfolio investment options, nor potentially some of the more interesting inorganic opportunities moving into the market in the coming 12 to 18 months.
“While we have appreciated great support and cooperation, and long association with the government and regulator in the Philippines, it is now time to relinquish our interest in SC 56, as we continue to deploy our production optimization and field-life extension skills across the region,”Blakeley said.
As a condition of the surrender and termination of SC 56, the partners will be subject to payment in respect of unfulfilled work commitments.
The company also anticipates it will record a one-time impairment charge of approximately $50.5 million, relating to historical capitalized exploration expenditures on SC 56 predominantly associated with previous management, with no associated cash impact or tax benefit.
Total is the operator of SC 56 with a 75 percent interest while Mitra holds the remaining 25 percent.
https://www.philstar.com/business/2020/11/20/2058064/jadestone-energy-surrendersm-sulu-sea-exploration-contract
MANILA, Philippines — Singapore-based oil and gas company Jadestone Energy Inc. has surrendered and terminated Service Contract (SC) 56 in the Sulu Sea as part of its strategy to avoid early phase greenfield exploration and meet its sustainability objectives.
In a statement on its website, Jadestone said its wholly owned subsidiary Mitra Energy (Philippines SC-56) Ltd, together with operator Total E&P Philippines BV, have notified the Department of Energy (DOE) of the voluntary surrender of their entire interest in, and termination of SC 56.
“We remain focused on our strategy of delivering value from producing fields and near-term developments in the Asia Pacific region, while avoiding early-phase greenfield exploration plays such as SC 56, requiring multi-year capital programs prior to production and cashflow,” Jadestone Energy president and chief operating officer Paul Blakeley said.
He said the major investments in new pipelines and facilities would also not fit the company’s sustainability objectives which include focus on maximizing use of existing infrastructure.
“SC 56 was a legacy asset inherited from the previous management and only had option value through a carried well. The decision not to drill the well now removes any interest for Jadestone to continue further new deep-water frontier exploration commitments,” Blakeley said.
He said new deep-water frontier exploration commitments would also not compete with its existing portfolio investment options, nor potentially some of the more interesting inorganic opportunities moving into the market in the coming 12 to 18 months.
“While we have appreciated great support and cooperation, and long association with the government and regulator in the Philippines, it is now time to relinquish our interest in SC 56, as we continue to deploy our production optimization and field-life extension skills across the region,”Blakeley said.
As a condition of the surrender and termination of SC 56, the partners will be subject to payment in respect of unfulfilled work commitments.
The company also anticipates it will record a one-time impairment charge of approximately $50.5 million, relating to historical capitalized exploration expenditures on SC 56 predominantly associated with previous management, with no associated cash impact or tax benefit.
Total is the operator of SC 56 with a 75 percent interest while Mitra holds the remaining 25 percent.
Meralco telco unit launches home broadband service
By: Miguel R. Camus - 05:14 AM November 20, 2020
https://business.inquirer.net/312088/meralco-telco-unit-launches-home-broadband-service
Manila Electric Co. (Meralco), the country’s largest electricity distributor, announced a major expansion plan for its telecommunications unit Radius Telecoms as internet demand rises during the COVID-19 pandemic.
The company launched Red Broadband, which will offer bundled fiber internet and television services through a tie-up with affiliate Cignal TV, a satellite TV provider.
Cignal TV is part of the PLDT Group, one of the country’s leading telecommunications providers with mobile and fixed-broadband services.
Meralco said in a statement the partnership was only recently formalized.
Through the partnership with CignalTV, Red Broadband will offer customers unlimited fiber internet combined with a pay TV plan starting at P1,299 month.
Meralco officials did not immediately respond to a request for comment on Thursday.
Before the launch of Red Broadband, Radius Telecoms offered data, internet and managed cloud services to small to medium sized businesses, its website showed.
It operates a full fiber optic network spanning 5,000 kilometers in Mega Manila, Clark and Cebu. The company is also expanding in major cities in Visayas and Mindanao by next year, its website showed.
Meralco owns Radius Telecoms through subsidiary e-Meralco Ventures Inc. Radius also holds a congressional franchise to build and operate telecommunications services across the country.
https://business.inquirer.net/312088/meralco-telco-unit-launches-home-broadband-service
Manila Electric Co. (Meralco), the country’s largest electricity distributor, announced a major expansion plan for its telecommunications unit Radius Telecoms as internet demand rises during the COVID-19 pandemic.
The company launched Red Broadband, which will offer bundled fiber internet and television services through a tie-up with affiliate Cignal TV, a satellite TV provider.
Cignal TV is part of the PLDT Group, one of the country’s leading telecommunications providers with mobile and fixed-broadband services.
Meralco said in a statement the partnership was only recently formalized.
Through the partnership with CignalTV, Red Broadband will offer customers unlimited fiber internet combined with a pay TV plan starting at P1,299 month.
Meralco officials did not immediately respond to a request for comment on Thursday.
Before the launch of Red Broadband, Radius Telecoms offered data, internet and managed cloud services to small to medium sized businesses, its website showed.
It operates a full fiber optic network spanning 5,000 kilometers in Mega Manila, Clark and Cebu. The company is also expanding in major cities in Visayas and Mindanao by next year, its website showed.
Meralco owns Radius Telecoms through subsidiary e-Meralco Ventures Inc. Radius also holds a congressional franchise to build and operate telecommunications services across the country.
Firms urged to reduce carbon footprint
By Lenie Lectura November 19, 2020
https://businessmirror.com.ph/2020/11/19/firms-urged-to-reduce-carbon-footprint/
Lopez-led Energy Development Corp. (EDC) strongly urged businesses and individuals to pursue forging collaborative pathways for a decarbonized and regenerative future.
Company president Richard B. Tantoco explained that being regenerative means uplifting EDC stakeholders and the environment beyond compliance, especially in times of crisis.
This mission, he said, helped the company in attaining lower carbon intensity in its operations.
EDC’s carbon footprint, being a 100 percent renewable energy company, is only a tenth of an average coal power plant’s carbon footprint. This is on top of EDC’s efforts to be carbon neutral year after year, with its annual carbon sequestration of 3.9 metric tonnes of CO2 from the watersheds that it manages in its geothermal reservations and carbon emissions of only 865,652 tonnes from its operations.
It has been nine years since the company started reporting on its sustainability performance following the Global Reporting Initiative’s framework.
The framework is set forth by the International Integrated Reporting Council (IIRC) and seeks to go beyond organizational impact on the “triple bottom line” of people, planet and profit, extending to how the company intends to create value in the short to medium and long term. Apart from reforesting close to 10,000 hectares of land and planting over six million seedlings in the past 11 years, EDC has been able to partner with 178 various public and private organizations to help restore 96 threatened native tree species—making BINHI the country’s biggest and most extensive private sector-led greening programs.
Another important factor in EDC’s shift to regenerative development is the commitment of its employees.
Tantoco reported a record-high overall employee engagement rating of 91 percent. This was on the heels of a major restructuring that the company underwent in 2019. “Our employees are truly our partners, and these results indicate that they are willing to go the extra mile to support EDC,” he said.
In the wake of the Covid-19 pandemic in the first quarter, EDC sought to keep its facilities running to supply electricity. “Our teams continue to outperform to keep EDC ahead of the curve by not only providing an uninterrupted supply of clean, renewable power to our customers but also by keeping our employees and their families safe.”
EDC said it quickly responded to the pandemic through organizational changes such as work-from-home arrangements and skeletal teams onsite.
Tantoco cited EDC’s experiences during the 2019 earthquake in Mindanao and typhoons Tisoy and Ursula that hit its facilities in Bicol and Leyte, respectively, as valuable lessons in resiliency that helped them cope with Covid-19.
“Our Natural Catastrophe Risk Mitigation Program has enabled us to plan for key risks and implement cost-effective solutions that protect assets that have the highest value at risk.”
https://businessmirror.com.ph/2020/11/19/firms-urged-to-reduce-carbon-footprint/
Lopez-led Energy Development Corp. (EDC) strongly urged businesses and individuals to pursue forging collaborative pathways for a decarbonized and regenerative future.
Company president Richard B. Tantoco explained that being regenerative means uplifting EDC stakeholders and the environment beyond compliance, especially in times of crisis.
This mission, he said, helped the company in attaining lower carbon intensity in its operations.
EDC’s carbon footprint, being a 100 percent renewable energy company, is only a tenth of an average coal power plant’s carbon footprint. This is on top of EDC’s efforts to be carbon neutral year after year, with its annual carbon sequestration of 3.9 metric tonnes of CO2 from the watersheds that it manages in its geothermal reservations and carbon emissions of only 865,652 tonnes from its operations.
It has been nine years since the company started reporting on its sustainability performance following the Global Reporting Initiative’s framework.
The framework is set forth by the International Integrated Reporting Council (IIRC) and seeks to go beyond organizational impact on the “triple bottom line” of people, planet and profit, extending to how the company intends to create value in the short to medium and long term. Apart from reforesting close to 10,000 hectares of land and planting over six million seedlings in the past 11 years, EDC has been able to partner with 178 various public and private organizations to help restore 96 threatened native tree species—making BINHI the country’s biggest and most extensive private sector-led greening programs.
Another important factor in EDC’s shift to regenerative development is the commitment of its employees.
Tantoco reported a record-high overall employee engagement rating of 91 percent. This was on the heels of a major restructuring that the company underwent in 2019. “Our employees are truly our partners, and these results indicate that they are willing to go the extra mile to support EDC,” he said.
In the wake of the Covid-19 pandemic in the first quarter, EDC sought to keep its facilities running to supply electricity. “Our teams continue to outperform to keep EDC ahead of the curve by not only providing an uninterrupted supply of clean, renewable power to our customers but also by keeping our employees and their families safe.”
EDC said it quickly responded to the pandemic through organizational changes such as work-from-home arrangements and skeletal teams onsite.
Tantoco cited EDC’s experiences during the 2019 earthquake in Mindanao and typhoons Tisoy and Ursula that hit its facilities in Bicol and Leyte, respectively, as valuable lessons in resiliency that helped them cope with Covid-19.
“Our Natural Catastrophe Risk Mitigation Program has enabled us to plan for key risks and implement cost-effective solutions that protect assets that have the highest value at risk.”
Tarlac Electric eyes P603.7M from IPO
posted November 19, 2020 at 09:55 pm by Jenniffer B. Austria
https://manilastandard.net/business/power-technology/339948/tarlac-electric-eyes-p603-7m-from-ipo.html
Tarlac Electric Inc., a power distribution utility firm serving the requirements of Tarlac City, is raising up to P603.7 million from an initial public offering.
TEI said in a filing with the Securities and Exchange Commission it would sell 1.75 million primary shares at a price of P345 apiece.
It said the public offering was pursuant to Republic Act No. 10795, or TEI’s Franchise, which requires the company to publicly offer 30 percent of its outstanding capital stock to Filipino citizens on or before the fifith year of operations.
The company hired Penta Capital & Investments Corp. as the sole underwriter for the offering. Net proceeds from the offering will be used to fund expansion projects, retire short-term obligations and finance working capital.
The company is constructing a three-story headquarters and is building various network projects including the rehabilitation and upgrading of its 69kV line from National Grid Corporation of the Philippines Concepcion which has already been approved by the Energy Regulatory Commission.
https://manilastandard.net/business/power-technology/339948/tarlac-electric-eyes-p603-7m-from-ipo.html
Tarlac Electric Inc., a power distribution utility firm serving the requirements of Tarlac City, is raising up to P603.7 million from an initial public offering.
TEI said in a filing with the Securities and Exchange Commission it would sell 1.75 million primary shares at a price of P345 apiece.
It said the public offering was pursuant to Republic Act No. 10795, or TEI’s Franchise, which requires the company to publicly offer 30 percent of its outstanding capital stock to Filipino citizens on or before the fifith year of operations.
The company hired Penta Capital & Investments Corp. as the sole underwriter for the offering. Net proceeds from the offering will be used to fund expansion projects, retire short-term obligations and finance working capital.
The company is constructing a three-story headquarters and is building various network projects including the rehabilitation and upgrading of its 69kV line from National Grid Corporation of the Philippines Concepcion which has already been approved by the Energy Regulatory Commission.
Ayala Group to boost renewable portfolio to 2,500 MW by 2021
posted November 19, 2020 at 07:18 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/339925/ayala-group-to-boost-renewable-portfolio-to-2-500-mw-by-2021.html
The Ayala Group plans to scale up its renewable energy portfolio to 2,500 megawatts next year as it positions AC Energy Philippines Inc. to become the largest listed renewables platform in Southeast Asia.
“We are really building up AC Energy Philippines or ACEN, the listed company. ACEN will be our main integrated platform for energy. ACEN will realize vision of 5 gigawatts [5,000 MW] by 2025,” AC Energy president and chief executive officer Eric Francia told reporters in a virtual briefing.
Francia said ACEN now has 1,000 MW of capacity in the Philippines but only half is renewable energy.
AC Energy International owns 900 MW of capacity, which is purely renewables. The plan is to infuse the international platform, AC Energy International into ACEN next year.
“For the Philippines, out of the 1,000 MW, around 550 MW of thermal, 450 of RE so once we infuse the international platform to ACEN, ACEN will now have 1,900 MW, on proforma basis,” Francia said.
Francia said the group’s plan was to scale up renewable energy investments from the current 1,350 MW.
He said they were aiming to expand the renewables capacity of ACEN to 2,500 MW next year, “so we expect to be halfway to our 2025 target as early as 2021.”
“The 1,350 MW, we will bring that to 5,000 MW or even more. I’m feeling quite confident we will exceed our renewables capacity by 2025, we will exceed 5,000 MW,” he said.
Francia said the company was also looking at investing in new RE capacities in the Philippines Australia, India and Vietnam.
https://manilastandard.net/business/power-technology/339925/ayala-group-to-boost-renewable-portfolio-to-2-500-mw-by-2021.html
The Ayala Group plans to scale up its renewable energy portfolio to 2,500 megawatts next year as it positions AC Energy Philippines Inc. to become the largest listed renewables platform in Southeast Asia.
“We are really building up AC Energy Philippines or ACEN, the listed company. ACEN will be our main integrated platform for energy. ACEN will realize vision of 5 gigawatts [5,000 MW] by 2025,” AC Energy president and chief executive officer Eric Francia told reporters in a virtual briefing.
Francia said ACEN now has 1,000 MW of capacity in the Philippines but only half is renewable energy.
AC Energy International owns 900 MW of capacity, which is purely renewables. The plan is to infuse the international platform, AC Energy International into ACEN next year.
“For the Philippines, out of the 1,000 MW, around 550 MW of thermal, 450 of RE so once we infuse the international platform to ACEN, ACEN will now have 1,900 MW, on proforma basis,” Francia said.
Francia said the group’s plan was to scale up renewable energy investments from the current 1,350 MW.
He said they were aiming to expand the renewables capacity of ACEN to 2,500 MW next year, “so we expect to be halfway to our 2025 target as early as 2021.”
“The 1,350 MW, we will bring that to 5,000 MW or even more. I’m feeling quite confident we will exceed our renewables capacity by 2025, we will exceed 5,000 MW,” he said.
Francia said the company was also looking at investing in new RE capacities in the Philippines Australia, India and Vietnam.
Malampaya’s remaining gas seen topping 1.6TCF
Published November 19, 2020, 1:40 PM by Myrna M. Velasco
https://mb.com.ph/2020/11/19/malampayas-remaining-gas-seen-topping-1-6tcf/
The remaining potential yield of the Malampaya gas production facility could go as high as 1.6 trillion cubic feet (TCF), or half of the current capacity of the field that is now being funneled for the requirements of more than 3,200 megawatts of gas-fired power capacities in the country.
That has been based on estimates and data submitted by the consortium-members of Service Contract (SC) 38 to the Department of Energy (DOE), according to Energy Assistant Secretary Leonido J. Pulido III; with him emphasizing that the gas facility may still be able to provide the country’s indigenous gas needs until year 2027.
The energy official said the estimated capacity of the gas field until the end of its contract in 2024 could reach as high as 3.0TCF. As of August 2020, gas yield from Malampaya already hovered at 2.322TCF.
And based on the initial evaluation of seismic data of the SC 38 members, the residual gas that could still be extracted may reach 1,600 billion cubic feet or 1.6 TCF, the energy department has affirmed.
In a Senate hearing, Shell Philippines Exploration B.V (SPEX) Managing Director Don Paulino noted that “while the potential of SC 38 is not that big compared to the original size of Malampaya, we see some potential in further extending the life of Malampaya to actually allow us to bridge future exploration opportunities that can or may happen across the West Philippine Sea.”
He added “we’re seeing some developments in the Camago field, but we’re also seeing some further developments that we can do within the Malampaya field itself.”
The Shell executive qualified though that the success rate of the prospective gas yield would still need validation through actual drilling of wells – and eventually, the output may have a success rate ranging from 20-percent to 80-percent.
For that reason, he emphasized that for the targeted gas production to be concretized, there is really a need first for SC 38 license to be extended; and for the government to give subsequent go-signal on the drilling of wells.
“Now, what we need is to do further study and assess the risks associated with that together with our joint venture partners. And at the same time, with the approval of the DOE, through the license extension, we start doing some investments to allow us to actually start doing drilling,” Paulino stressed.
It is paramount that the investments be infused this early and for the license extension to be decided with more definitive timeframe by the government, he said, because the SC 38 investors would likewise need to pace cost recovery in case well drillings will not turn out to be of commercial scale.
“Because until we drill, we would not know whether there’s really gas or oil underneath, that’s the challenge of being an operator,” the SPEX executive noted.
And for the company to really decide on additional capital spending for exploration within Malampaya plays, “we need some clarity in the fiscal terms. At the same time, the longevity of the contract we will have with the government, that’s why the license important is quite important for us,” he stressed.
https://mb.com.ph/2020/11/19/malampayas-remaining-gas-seen-topping-1-6tcf/
The remaining potential yield of the Malampaya gas production facility could go as high as 1.6 trillion cubic feet (TCF), or half of the current capacity of the field that is now being funneled for the requirements of more than 3,200 megawatts of gas-fired power capacities in the country.
That has been based on estimates and data submitted by the consortium-members of Service Contract (SC) 38 to the Department of Energy (DOE), according to Energy Assistant Secretary Leonido J. Pulido III; with him emphasizing that the gas facility may still be able to provide the country’s indigenous gas needs until year 2027.
The energy official said the estimated capacity of the gas field until the end of its contract in 2024 could reach as high as 3.0TCF. As of August 2020, gas yield from Malampaya already hovered at 2.322TCF.
And based on the initial evaluation of seismic data of the SC 38 members, the residual gas that could still be extracted may reach 1,600 billion cubic feet or 1.6 TCF, the energy department has affirmed.
In a Senate hearing, Shell Philippines Exploration B.V (SPEX) Managing Director Don Paulino noted that “while the potential of SC 38 is not that big compared to the original size of Malampaya, we see some potential in further extending the life of Malampaya to actually allow us to bridge future exploration opportunities that can or may happen across the West Philippine Sea.”
He added “we’re seeing some developments in the Camago field, but we’re also seeing some further developments that we can do within the Malampaya field itself.”
The Shell executive qualified though that the success rate of the prospective gas yield would still need validation through actual drilling of wells – and eventually, the output may have a success rate ranging from 20-percent to 80-percent.
For that reason, he emphasized that for the targeted gas production to be concretized, there is really a need first for SC 38 license to be extended; and for the government to give subsequent go-signal on the drilling of wells.
“Now, what we need is to do further study and assess the risks associated with that together with our joint venture partners. And at the same time, with the approval of the DOE, through the license extension, we start doing some investments to allow us to actually start doing drilling,” Paulino stressed.
It is paramount that the investments be infused this early and for the license extension to be decided with more definitive timeframe by the government, he said, because the SC 38 investors would likewise need to pace cost recovery in case well drillings will not turn out to be of commercial scale.
“Because until we drill, we would not know whether there’s really gas or oil underneath, that’s the challenge of being an operator,” the SPEX executive noted.
And for the company to really decide on additional capital spending for exploration within Malampaya plays, “we need some clarity in the fiscal terms. At the same time, the longevity of the contract we will have with the government, that’s why the license important is quite important for us,” he stressed.
Wednesday, November 18, 2020
Philippine renewable energy capacity boosted by 16%
Catherine Talavera (The Philippine Star) - November 18, 2020 - 12:00am
https://www.philstar.com/business/2020/11/18/2057584/philippine-renewable-energy-capacity-boosted-16
MANILA, Philippines — The country’s installed renewable energy (RE) capacity has increased by 16 percent this year, underscoring the growing shift toward cleaner and more sustainable energy sources.
The Department of Energy said RE capacity has reached 5,713.3 megawatts (MW) as of end-September, higher than the 4,920.48-MW installed capacity registered at the end of 2019.
There are now a total of 1,079 RE projects as of end-September, out of which 1,025 are for commercial use, while 54 are for private use.
Of the total projects, 556 are hydropower, eight ocean energy, 32 geothermal, 79 wind, 329 solar and 84 biomass.
In terms of the total installed capacity, 5,502 MW is for commercial use, while 210.87-MW is for own use.
DOE data also showed that the projects have a total potential capacity of 30,599.9-MW and a total estimated energy generation of 26.8 million megawatt-hours.
Meanwhile, the DOE reported that there are a total of 44 RE project applications under the RE Act of 2008, with a total potential capacity of 1,478.9 MW.
The figure is higher than the 40 RE project applications, with a potential capacity of 560.24 MW registered as of the end-June.
In 2019, RE only accounted for 20.8 percent of the country’s power generation mix, lower than the 33.9 percent RE share when the RE Act was implemented in 2008.
Of the RE share, 10.1 percent comes from geothermal, 7.6 percent from hydro, 1.2 percent from solar and one percent each for biomass and wind.
National Renewable Energy Board (NREB) chairperson Monalisa Dimalanta said earlier that the country’s target of a 35 percent RE share in the power generation mix by 2030 is still achievable despite RE’s decreasing share over the years, through the implementation of the Renewable Portfolio Standards (RPS).
RPS is a market-based policy that requires power distribution utilities, electric cooperatives, and retail electricity supplies(RES) to source an agreed portion of their energy supply from eligible renewable energy RE facilities.
At present, the RPS level is set at one percent until 2022.
Dimalanta said this should be increased to 2.52 percent moving forward starting from 2023, to help the country achieve its 35 percent target.
The NREB is the advisory board tasked with the effective implementation of RE projects in the country.
https://www.philstar.com/business/2020/11/18/2057584/philippine-renewable-energy-capacity-boosted-16
MANILA, Philippines — The country’s installed renewable energy (RE) capacity has increased by 16 percent this year, underscoring the growing shift toward cleaner and more sustainable energy sources.
The Department of Energy said RE capacity has reached 5,713.3 megawatts (MW) as of end-September, higher than the 4,920.48-MW installed capacity registered at the end of 2019.
There are now a total of 1,079 RE projects as of end-September, out of which 1,025 are for commercial use, while 54 are for private use.
Of the total projects, 556 are hydropower, eight ocean energy, 32 geothermal, 79 wind, 329 solar and 84 biomass.
In terms of the total installed capacity, 5,502 MW is for commercial use, while 210.87-MW is for own use.
DOE data also showed that the projects have a total potential capacity of 30,599.9-MW and a total estimated energy generation of 26.8 million megawatt-hours.
Meanwhile, the DOE reported that there are a total of 44 RE project applications under the RE Act of 2008, with a total potential capacity of 1,478.9 MW.
The figure is higher than the 40 RE project applications, with a potential capacity of 560.24 MW registered as of the end-June.
In 2019, RE only accounted for 20.8 percent of the country’s power generation mix, lower than the 33.9 percent RE share when the RE Act was implemented in 2008.
Of the RE share, 10.1 percent comes from geothermal, 7.6 percent from hydro, 1.2 percent from solar and one percent each for biomass and wind.
National Renewable Energy Board (NREB) chairperson Monalisa Dimalanta said earlier that the country’s target of a 35 percent RE share in the power generation mix by 2030 is still achievable despite RE’s decreasing share over the years, through the implementation of the Renewable Portfolio Standards (RPS).
RPS is a market-based policy that requires power distribution utilities, electric cooperatives, and retail electricity supplies(RES) to source an agreed portion of their energy supply from eligible renewable energy RE facilities.
At present, the RPS level is set at one percent until 2022.
Dimalanta said this should be increased to 2.52 percent moving forward starting from 2023, to help the country achieve its 35 percent target.
The NREB is the advisory board tasked with the effective implementation of RE projects in the country.
Gov’t, not SN Aboitiz, owns and operates Magat Dam
posted November 17, 2020 at 08:50 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/339752/gov-t-not-sn-aboitiz-owns-and-operates-magat-dam.html
SN Aboitiz Power Corp., a joint venture of SN Power of Norway and Aboitiz Power Corp. on Tuesday clarified that it operates the Magat hydro power plant on the borders of Isabela and Ifugao, but not Magat Dam, which is owned by the national government through the National Irrigation Administration.
“SNAP does not own, manage or operate Magat Dam and its re-regulating facilities. It took over Magat hydroelectric power plant in 2007 after a successful privatization bid,” SNAP said in a statement.
SNAP issued the clarification after several social media posts and news stories erroneously identified SNAP as owner or operator of the Magat Dam.
“Magat Dam is a multi-purpose dam primarily for irrigation and flood control. As such, the ownership, management and operations of Magat and Maris Dams and all other non-power components such as reservoirs and spillways remained with the government through the National Irrigation Administration,” the company said.
SNAP said it mobilized relief operations in its host and neighboring communities affected by Typhoon Ulysses. The company said it allocated P3.5 million for the operations which it launched on Nov. 16. It is set to complete the delivery of close to P1.5 million worth of relief goods on Nov. 17.
The initial relief supplies were turned over to the provincial government of Isabela and Cagayan State University in Tuguegarao City, Cagayan on Nov. 16.
Initial relief supplies from SN Aboitiz Power were turned over to Cagayan State University on Nov. 16.
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The aid is expected to reach 2,465 families in Isabela and part of Cagayan. It consists of rice, other food supplies and water.
SNAP said it also teamed up with Aboitiz Foundation Inc. in sourcing vitamins and food packs for its next wave of relief to affected communities. It is scheduled to turn over supplies to Cagayan, Ifugao and Nueva Vizcaya communities through local government partners in the coming days.
National Grid Corp. of the Philippines, the operator of the power grid, earlier denied reports linking the company to the flooding in Cagayan Valley region.
“With regard to a misleading banner flashed during a news story on the Cagayan flood aired on Nov. 14 and again during the coverage of President Rodrigo Duterte’s visit to Cagayan on Nov. 15, NGCP would like to clarify that it has nothing to do with flooding in the Cagayan Valley area, or anywhere else in the country,” NGCP said in a statement.
NGCP, the private concessionaire and the system operator for the national transmission grid, said it had no part in the operation of water sources or hydo power facilities such as the Magat Dam.
https://manilastandard.net/business/power-technology/339752/gov-t-not-sn-aboitiz-owns-and-operates-magat-dam.html
SN Aboitiz Power Corp., a joint venture of SN Power of Norway and Aboitiz Power Corp. on Tuesday clarified that it operates the Magat hydro power plant on the borders of Isabela and Ifugao, but not Magat Dam, which is owned by the national government through the National Irrigation Administration.
“SNAP does not own, manage or operate Magat Dam and its re-regulating facilities. It took over Magat hydroelectric power plant in 2007 after a successful privatization bid,” SNAP said in a statement.
SNAP issued the clarification after several social media posts and news stories erroneously identified SNAP as owner or operator of the Magat Dam.
“Magat Dam is a multi-purpose dam primarily for irrigation and flood control. As such, the ownership, management and operations of Magat and Maris Dams and all other non-power components such as reservoirs and spillways remained with the government through the National Irrigation Administration,” the company said.
SNAP said it mobilized relief operations in its host and neighboring communities affected by Typhoon Ulysses. The company said it allocated P3.5 million for the operations which it launched on Nov. 16. It is set to complete the delivery of close to P1.5 million worth of relief goods on Nov. 17.
The initial relief supplies were turned over to the provincial government of Isabela and Cagayan State University in Tuguegarao City, Cagayan on Nov. 16.
Initial relief supplies from SN Aboitiz Power were turned over to Cagayan State University on Nov. 16.
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The aid is expected to reach 2,465 families in Isabela and part of Cagayan. It consists of rice, other food supplies and water.
SNAP said it also teamed up with Aboitiz Foundation Inc. in sourcing vitamins and food packs for its next wave of relief to affected communities. It is scheduled to turn over supplies to Cagayan, Ifugao and Nueva Vizcaya communities through local government partners in the coming days.
National Grid Corp. of the Philippines, the operator of the power grid, earlier denied reports linking the company to the flooding in Cagayan Valley region.
“With regard to a misleading banner flashed during a news story on the Cagayan flood aired on Nov. 14 and again during the coverage of President Rodrigo Duterte’s visit to Cagayan on Nov. 15, NGCP would like to clarify that it has nothing to do with flooding in the Cagayan Valley area, or anywhere else in the country,” NGCP said in a statement.
NGCP, the private concessionaire and the system operator for the national transmission grid, said it had no part in the operation of water sources or hydo power facilities such as the Magat Dam.
Magat Dam is NIA’s responsibility–SNAP
By Lenie Lectura November 17, 2020
https://businessmirror.com.ph/2020/11/17/magat-dam-is-nias-responsibility-snap/
SN Aboitiz Power-Magat Inc. (SNAP-Magat) on Tuesday said it is not involved in the operation of the Magat dam and spillway.
SNAP Group is a joint venture between SN Power of Norway and Aboitiz Power. It supplies clean, renewable and dependable energy through the operation of the Ambuklao hydro, and the Binga hydro in the province of Benguet. SNAP also operates the 8.5-megawatt Maris hydro in Isabela, as well as the newly uprated Magat hydro on the border of Isabela and Ifugao.
The National Irrigation Administration (NIA) is the owner of the Magat dam, reservoir, and spillway. NIA operates the Magat dam for irrigation services and controls the spillway during spilling events, such as during typhoons and large inflows of water. The dam, reservoir, and spillway are mandated to be continually owned by the government under the Electric Power Industry Reform Act.
SNAP said that during typhoons, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) and NIA coordinate, direct and implement the needed spilling operations of the Magat dam. The spilling operations, it added, are conducted by NIA following an established dam discharge protocol and in coordination with PAGASA.
“The company has never been involved in operation of the Magat dam considering that this is the sole responsibility and mandate of the government through NIA. SNAP-Magat and SNAP Group do not own any dams in the country at the moment,” the company said.
The Magat dam, with its reservoir and spillway, is a multi-purpose dam facility primarily for flood control, irrigation, and lastly only for power generation.
SNAP won the privatization bid for the 360-MW Magat Hydroelectric Power Plant component only. The Magat hydropower plant uses the irrigation water stored at the Magat dam and reservoir to generate electricity.
Meanwhile, the National Grid corp. of the Philippines (NGCP) also clarified that it has nothing to do with flooding in the Cagayan Valley area.
“NGCP is the private concessionaire and the system operator for the national transmission grid. We have the mandate to operate, maintain and expand the Philippine Power Grid. We have no part in the operation of water sources or hydo power facilities such as the Magat Dam,” it said.
The grid operator made this clarification following reports that the local governments in Cagayan Province may file a case against NGCP for the loss of life and damage to property caused by the flooding.
https://businessmirror.com.ph/2020/11/17/magat-dam-is-nias-responsibility-snap/
SN Aboitiz Power-Magat Inc. (SNAP-Magat) on Tuesday said it is not involved in the operation of the Magat dam and spillway.
SNAP Group is a joint venture between SN Power of Norway and Aboitiz Power. It supplies clean, renewable and dependable energy through the operation of the Ambuklao hydro, and the Binga hydro in the province of Benguet. SNAP also operates the 8.5-megawatt Maris hydro in Isabela, as well as the newly uprated Magat hydro on the border of Isabela and Ifugao.
The National Irrigation Administration (NIA) is the owner of the Magat dam, reservoir, and spillway. NIA operates the Magat dam for irrigation services and controls the spillway during spilling events, such as during typhoons and large inflows of water. The dam, reservoir, and spillway are mandated to be continually owned by the government under the Electric Power Industry Reform Act.
SNAP said that during typhoons, the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) and NIA coordinate, direct and implement the needed spilling operations of the Magat dam. The spilling operations, it added, are conducted by NIA following an established dam discharge protocol and in coordination with PAGASA.
“The company has never been involved in operation of the Magat dam considering that this is the sole responsibility and mandate of the government through NIA. SNAP-Magat and SNAP Group do not own any dams in the country at the moment,” the company said.
The Magat dam, with its reservoir and spillway, is a multi-purpose dam facility primarily for flood control, irrigation, and lastly only for power generation.
SNAP won the privatization bid for the 360-MW Magat Hydroelectric Power Plant component only. The Magat hydropower plant uses the irrigation water stored at the Magat dam and reservoir to generate electricity.
Meanwhile, the National Grid corp. of the Philippines (NGCP) also clarified that it has nothing to do with flooding in the Cagayan Valley area.
“NGCP is the private concessionaire and the system operator for the national transmission grid. We have the mandate to operate, maintain and expand the Philippine Power Grid. We have no part in the operation of water sources or hydo power facilities such as the Magat Dam,” it said.
The grid operator made this clarification following reports that the local governments in Cagayan Province may file a case against NGCP for the loss of life and damage to property caused by the flooding.
EDC pursues 9 years of reporting on sustainability
posted November 17, 2020 at 08:35 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/339749/edc-pursues-9-years-of-reporting-on-sustainability.html
Energy Development Corp. said Tuesday its sustainability reporting signals the company’s response to the need for businesses and individuals to go beyond sustainability that simply seeks to do less harm.
EDC, the country’s geothermal leader, said it marked nine years of reporting on its sustainability performance following the Global Reporting Initiative’s framework.
EDC said in a statement it was enhancing its business performance and impact by fostering regenerative development—a globally emerging business principle centered on elevating everything that the company touches.
The IR framework is set forth by the International Integrated Reporting Council and seeks to go beyond organizational impact on the “triple bottom line” of people, planet and profit, extending to how the company intends to create value in the short to medium and long term.
EDC’s shift is also articulated through the Lopez Group’s renewed mission statement—“forging collaborative pathways for a decarbonized and regenerative future.”
The company said its key achievement in 2019 was attaining lower carbon intensity in its operations achieved through several efficiency initiatives across its operations, such as power plant retrofitting, cooling tower improvements and replacements and timely completion of planned outages during preventive maintenance.
Carbon intensity refers to the emission rate of a given pollutant relative to a business metric to signify the intensity of a specific activity.
EDC’s carbon footprint, being a 100-percent renewable energy company, is only a tenth of an average coal power plant’s carbon footprint.
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This is on top of EDC’s efforts to be carbon-neutral year after year, with its annual carbon sequestration of 3.9 metric tons of CO2 from the watersheds that it manages in its geothermal reservations and carbon emissions of only 865,652 tons from its operations.
Apart from reforesting close to 10,000 hectares of land and planting over six million seedlings in the past 11 years, EDC has been able to partner with 178 various public and private organizations all over the country to help restore 96 threatened native tree species—making BINHI the country’s biggest and most extensive private sector-led greening programs.
Another important factor in EDC’s shift to regenerative development is the commitment of its employees which are its most valuable capital.
EDC president Richard Tantoco said the company was able to record-high overall employee engagement rating of 91 percent. “Our employees are truly our partners, and these results indicate that they are willing to go the extra mile to support EDC,” he said.
In the wake of the COVID-19 pandemic in the first quarter, EDC sought to keep its facilities running to supply the essential resource of electricity throughout the nation through its employees.
“Our teams continue to outperform to keep EDC ahead of the curve by not only providing an uninterrupted supply of clean, renewable power to our customers but also by keeping our employees and their families safe,” said Tantoco.
https://manilastandard.net/business/power-technology/339749/edc-pursues-9-years-of-reporting-on-sustainability.html
Energy Development Corp. said Tuesday its sustainability reporting signals the company’s response to the need for businesses and individuals to go beyond sustainability that simply seeks to do less harm.
EDC, the country’s geothermal leader, said it marked nine years of reporting on its sustainability performance following the Global Reporting Initiative’s framework.
EDC said in a statement it was enhancing its business performance and impact by fostering regenerative development—a globally emerging business principle centered on elevating everything that the company touches.
The IR framework is set forth by the International Integrated Reporting Council and seeks to go beyond organizational impact on the “triple bottom line” of people, planet and profit, extending to how the company intends to create value in the short to medium and long term.
EDC’s shift is also articulated through the Lopez Group’s renewed mission statement—“forging collaborative pathways for a decarbonized and regenerative future.”
The company said its key achievement in 2019 was attaining lower carbon intensity in its operations achieved through several efficiency initiatives across its operations, such as power plant retrofitting, cooling tower improvements and replacements and timely completion of planned outages during preventive maintenance.
Carbon intensity refers to the emission rate of a given pollutant relative to a business metric to signify the intensity of a specific activity.
EDC’s carbon footprint, being a 100-percent renewable energy company, is only a tenth of an average coal power plant’s carbon footprint.
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This is on top of EDC’s efforts to be carbon-neutral year after year, with its annual carbon sequestration of 3.9 metric tons of CO2 from the watersheds that it manages in its geothermal reservations and carbon emissions of only 865,652 tons from its operations.
Apart from reforesting close to 10,000 hectares of land and planting over six million seedlings in the past 11 years, EDC has been able to partner with 178 various public and private organizations all over the country to help restore 96 threatened native tree species—making BINHI the country’s biggest and most extensive private sector-led greening programs.
Another important factor in EDC’s shift to regenerative development is the commitment of its employees which are its most valuable capital.
EDC president Richard Tantoco said the company was able to record-high overall employee engagement rating of 91 percent. “Our employees are truly our partners, and these results indicate that they are willing to go the extra mile to support EDC,” he said.
In the wake of the COVID-19 pandemic in the first quarter, EDC sought to keep its facilities running to supply the essential resource of electricity throughout the nation through its employees.
“Our teams continue to outperform to keep EDC ahead of the curve by not only providing an uninterrupted supply of clean, renewable power to our customers but also by keeping our employees and their families safe,” said Tantoco.
Alsons to issue P3 billion worth of debt paper
posted November 17, 2020 at 05:50 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/339724/alsons-to-issue-p3-billion-worth-of-debt-paper.html
Alsons Consolidated Resources Inc. said Tuesday its board approved the issuance of commercial paper worth P3 billion in tranches, with the first tranche of P2 billion to be issued next year.
Alsons said net income in the first nine months increased to P1.66 billion from P587.7 million in the same period last year on the improved performance of its subsidiaries.
Net income attributable to the parent went up to P360.59 million in the nine-month period from P54.94 million a year ago.
Revenues showed a significant improvement to P7.31 billion from P4.67 billion in the same period in 2019.
“For the rest of the year, we remain cautiously optimistic on the financial performance of the company. We expect higher revenues and profit margins from the full commercial operations of the Sarangani Energy plant. We will also reap the benefits of lower operating costs as we continue to maintain cost efficiency measures,” Alsons deputy chief financial officer Philip Edward Sagun said.
The fully-operational Sarangani Energy Corp. power plant continued to be a major revenue driver for the company along with the continuing operations of Western Mindanao Power Corp. and other diesel power plants.
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Alsons said its continuing pursuit of new power projects would help in the economic recovery and revival from the recession bought about by the COVID-19 pandemic.
“ACR’s continuing pursuit of new power projects in Sarangani Province, Zamboanga City, Zamboanga del Norte and Negros Occidental is our contribution to the economic recovery of our country by helping create new jobs and stimulate the local economies in these areas,” Alsons executive vice president Tirso Santillan Jr. said.
The company has a portfolio of four power facilities with an aggregate capacity of 468 MW serving over eight million people in 14 cities and 11 provinces in the country’s second largest island.
Its projects in the pipeline include the P4.5-billion 14.5-MW Siguil hydro run of river hydroelectric power plant in Maasim, Sarangani province and the P16-billion 105-MW San Ramon Power Inc. baseload coal-fired power plant in Zamboanga City.
https://manilastandard.net/business/power-technology/339724/alsons-to-issue-p3-billion-worth-of-debt-paper.html
Alsons Consolidated Resources Inc. said Tuesday its board approved the issuance of commercial paper worth P3 billion in tranches, with the first tranche of P2 billion to be issued next year.
Alsons said net income in the first nine months increased to P1.66 billion from P587.7 million in the same period last year on the improved performance of its subsidiaries.
Net income attributable to the parent went up to P360.59 million in the nine-month period from P54.94 million a year ago.
Revenues showed a significant improvement to P7.31 billion from P4.67 billion in the same period in 2019.
“For the rest of the year, we remain cautiously optimistic on the financial performance of the company. We expect higher revenues and profit margins from the full commercial operations of the Sarangani Energy plant. We will also reap the benefits of lower operating costs as we continue to maintain cost efficiency measures,” Alsons deputy chief financial officer Philip Edward Sagun said.
The fully-operational Sarangani Energy Corp. power plant continued to be a major revenue driver for the company along with the continuing operations of Western Mindanao Power Corp. and other diesel power plants.
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Alsons said its continuing pursuit of new power projects would help in the economic recovery and revival from the recession bought about by the COVID-19 pandemic.
“ACR’s continuing pursuit of new power projects in Sarangani Province, Zamboanga City, Zamboanga del Norte and Negros Occidental is our contribution to the economic recovery of our country by helping create new jobs and stimulate the local economies in these areas,” Alsons executive vice president Tirso Santillan Jr. said.
The company has a portfolio of four power facilities with an aggregate capacity of 468 MW serving over eight million people in 14 cities and 11 provinces in the country’s second largest island.
Its projects in the pipeline include the P4.5-billion 14.5-MW Siguil hydro run of river hydroelectric power plant in Maasim, Sarangani province and the P16-billion 105-MW San Ramon Power Inc. baseload coal-fired power plant in Zamboanga City.
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