AboitizPower sets P23 billion capex this year

Danessa Rivera (The Philippine Star ) - March 15, 2021 - 12:00am
https://www.philstar.com/business/2021/03/15/2084285/aboitizpower-sets-p23-billion-capex-year

MANILA, Philippines — Aboitiz Power Corp. has earmarked P23 billion for capital expenditures this year, largely to complete its coal-fired power plant in Bataan and finance its entry into battery storage development.

In a regulatory filing, AboitizPower said 70 percent of this year’s budget would fund the company’s expansion and upgrade of existing facilities.

“These include the remaining investment for the GNPower Dinginin construction, as well as for the company’s battery energy storage system (BESS) projects,” the firm said.

GNPower Dinginin Coal Plant Ltd. Co. (GNPD), a joint venture among AboitizPower, AC Energy and Power Partners Ltd. Co., is developing a 2x668-megawatt (MW) supercritical coal-fired power project in Mariveles, Bataan.

Construction for the first unit commenced in September 2016 and was supposed to be completed in 2019. Meanwhile, the second unit started construction in December 2017 with completion six months after the first unit.

Project completion was moved to 2020, however, the travel ban and lockdowns due to the COVID-19 pandemic affected the construction of the power plant.

AboitizPower said the GNPD project is now in the final stages of construction, but continues to face challenges due to the COVID-19 pandemic and travel restrictions.

“Due to these circumstances, commercial operations dates for units 1 and 2 are expected to commence in third quarter 2021 and first quarter 2022, respectively,” it said.

Meanwhile, AboitizPower is looking to develop 12 BESS projects with a total capacity of 248 MW for regulating and contingency reserves in the next 10 years.

BESS is a type of energy storage system that can store energy electrochemically. It can be connected to the grid, small grid, distribution system or end-user facility to deliver the energy demand when needed.

AboitizPower commenced the installation of its first BESS project in its Therma Marine Inc. (TMI) facility with a capacity of 49 MW in Maco, Davao de Oro. The installation is being done in partnership with Wartsila and Aboitiz Construction.

SN Aboitiz Power Group (SNAP) – the joint venture of Norway-based Scatec Solar and Aboitiz Power Corp. – is also moving ahead with its pilot BESS, a 20-MW BESS and 20-MWh energy storage in Ramon, Isabela. The project has completed the pre-construction phase and is now proceeding with construction phase, which include engineering design and permitting.

The TMI BESS project is expected to commence commercial operations in 2022, while the SNAP BESS project is expected to start operating in 2023.

In its stock report, Regina Capital Development Corp. said the company has a relatively bullish expansion pipeline and intends to push through with development despite the pandemic.

For this year, AboitizPower plans to maximize opportunities from the implementation of the Renewable Portfolio Standards (RPS) by the Department of Energy (DOE).

In line with DOE’s aspirational goal of a 35 percent share in renewable energy utilization by 2030, RPS is a market-based policy that mandates power distribution utilities, electric cooperatives and retail electricity suppliers to source an agreed portion of their energy supplies from renewable energy facilities.

AboitizPower will continue to pursue international opportunities focusing on renewable energy projects such as wind, hydro, and solar in “high-growth geographic markets with acceptable regulatory environments.” “With all of these combined, the company aims for its portfolio ratio to be close to a 50:50 renewable energy and thermal capacity mix by the end of the current decade,” it said.