Aboitiz unit sets ₧28-B capex
BY LENIE LECTURA – MARCH 15, 2022
from Business Mirror
Aboitiz Power Corp. is setting aside P28 billion in capital expenditures (capex) for this year to finish its power projects and build new plants.
The amount is higher than the P23-billion capex allotted in 2021.
In its preliminary information statement for the 2022 annual stockholders’ meeting set next month, AboitizPower, together with partners, said over 50 percent of this year’s capex is for expansion and upgrade.
These include the remaining investment for GNPower Dinginin Ltd. Co.’s (GNPD) construction, a general overhaul of GMEC (GNPower Marivels Center Ltd. Co.), and the construction of solar and hydro plants, as well as the battery energy storage system (BESS) project.
The balance is allocated for the maintenance of business, primarily to ensure the availability of sufficient baseload during the 2022 election period.
AboitizPower is optimizing its existing baseload facilities to meet critical market needs as demand for baseload is seen to increase. Since the government has banned new coal power projects, the power firm is currently conducting studies for viable alternatives, such as gas.
“In the event of a critical shortage, AboitizPower’s third unit options located in existing baseload facilities may respond if called upon. The Company is also shifting its focus to gas for baseload growth. It has early feasibility studies, and within the next 10 years, expects to construct one gas plant with a capacity of 1,000 MW, unless a cleaner technology proves to be the more economical option,” it said.
AboitizPower has over 1,000 MW of projects under construction which are expected to start commercial operations this year. These are the GNDP, PV Sinag Power Cayanga project and the TMI Maco Hybrid Battery Energy Storage System project.
GNPD Unit 1 officially started commercial operations last January 26. Unit 2, which has started commissioning, is set for initial synchronization in the second quarter of 2022.
The PV Sinag Power Cayanga project is for the construction of a 94 megawatts peak (MWp) solar power plant located in barangay Cayanga, municipality of Bugallon, Pangasinan. The EPC contract was awarded to JGC Philippines last December 2021. The project is expected to commercially operate by the fourth quarter this year.
The Maco BESS Project is in Maco, Compostela Valley. It has a storage capacity of 49MW and is intended to be used for ancillary services. Development activities are ongoing to integrate the BESS with TMI’s Maco oil barge. The project already nears completion at around 90 percent with the BESS barge moored in the TMI facility right next to the power barge. It may be commercially available in May.
On top of the projects under construction, its PV Sinag Power Laoag project is expected to be issued a notice to proceed this year. The 160-MWp of renewable energy (RE) will operate commercially by the third quarter of next year.
Moreover, it has an additional capacity of 721 MW of RE projects under priority development which are expected to operate commercially by 2024 and 2025.
