PGPC aims to boost Luzon power grid

By Lenie Lectura – July 15, 2024
from Business Mirror

The Philippine Geothermal Production Company Inc. (PGPC) is embarking on the exploration and development of new geothermal energy sources capable of generating between 250 to 400 megawatts (MW) of additional renewable energy (RE).

The wholly owned subsidiary of SM Investments Corp. (SMIC) said over the weekend that these geothermal power projects are expected to be completed in 5 to 7 years. PGPC’s five new project concession sites are in geothermal-rich areas within the Provinces of Kalinga, Benguet, Cagayan, Quezon, Camarines Norte, and Camarines Sur.

These projects, it added, aim to establish fully operational geothermal fields capable of generating between 250 to 400MW of additional renewable baseload power from which energy can be readily dispatched to power plants and other prospective off-takers. This will help bolster power security for Luzon and advance the country’s renewable energy objectives, according to the company.

“With these projects slated for completion within the next 5 to 7 years, they will be sources of additional renewable baseload power that will help reduce the risk of power supply shortages in the Luzon power grid,” said PGPC President Napoleon L. Saporsantos Jr.

“They will also play a pivotal role in the Department of Energy’s target of having renewable energy sources account for at least 50 percent of the country’s total power capacity by 2040.”

Saporsantos also highlighted the socioeconomic benefits of the projects, stating, “these projects from the exploration and development phase all the way up to commercial operation are expected to create over 2,000 jobs, with priority given to hiring qualified local residents in our host communities.”

PGPC pioneered Southeast Asia’s first commercial geothermal power project in 1971. The company currently operates the Tiwi steam field in Albay and the Mak-Ban steam field spanning Laguna and Batangas. These facilities have been pivotal in supplying renewable geothermal energy to client power plants since 1979.

Last year, PGPC said it will spend some P3 billion annually for new exploration projects in Kalinga, Daklan, and Cagayan in Northern Luzon, and in Mount Labo and Malinao in Southern Luzon.

The SM Group, through SMIC, acquired PGPC for P26.6 billion.