GBPC sets sights on more renewable energy projects

BY LENIE LECTURA – OCTOBER 28, 2021
from Business Mirror

Global Business Power Corp. (GBPC), a wholly-owned subsidiary of Meralco PowerGen Corp. (MGen), has lined up more renewable energy (RE) projects starting next year, including two solar power projects worth P2 to P3 billion, a wind power project, and a battery energy storage system (BESS).

“For 2022 and beyond, we are eyeing the construction of the first large-scale wind farm and development of solar storage that can compete in the mid-merit space. You can expect more RE projects in the coming years as we endeavor to provide cleaner and sustainable energy supply in the market,” said GBPC President Jaime Azurin.

“And for next year, we’re looking at an additional investment of P2 to 3 billion for the other two solar. We are looking at certain projects for the mid-merit. We have not finalized any agreement with other parties.”

GBPC has ownership in net capacity of 970 megawatts (MW) of coal and oil plants, of which 785 MW are contracted under Power Supply Agreements (PSAs) with captive and contestable customers and Ancillary Services Procurement Agreements (ASPAs).

IT delivered 3,802 gigawatt hours (GW) in January to September and contributed P663 million to MGen’s consolidated core net income.

GBPC and MGen have started consolidating their businesses into one organization, following the completion of MGen’s acquisition of an 86-percent stake in GBPC on March 31.

“We have streamlined our operations and integrated GBP and MGen under one functional organizational structure effective September 16. We have already started. While formal integration is underway, it may take two to three years to fully complete regulatory requirements,” Azurin added.

The power generation arm of Meralco is pursuing to build 1,500 MW of RE projects in the next seven years, starting with 55MW solar farm in San Miguel, Bulacan. It is currently the largest single operating solar plant in the country that commenced operations last May.

“We have more solar projects under development. Construction work is ongoing for our 78MW plant in Baras, Rizal, while EPC [engineering, procurement, and construction] negotiations are progress for the 54 MW in Cordon, Isabela, 19MW Nueva Ecija, and 50 MW Ilocos Norte,” added Azurin.