San Miguel power arm set to go on expansion binge
By Lenie Lectura – February 24, 2025
from Business Mirror
SAN Miguel Global Power Holdings Corp. (SMGP) is embarking on an expansion binge with at least P87 billion already set aside for thermal and gas projects.
Mariveles Power Partners Co. Ltd. (MPCL), a subsidiary of SMGP, intends to further expand the Masinloc plant by constructing Unit 4 and Unit 5 utilizing supercritical pulverized coal technology with a net load capacity of 630 megawatt (MW) and with 42-percent thermal efficiency rate.
Construction for Masinloc Unit 4 and Unit 5 are targeted for completion between 2025 and 2026. As of September 2024, overall project completion of Unit 4 is 81 percent and 69 percent for Unit 5, “with equity-backed capital expenditures of P15.8 billion,” SMGP said in a filing with the Philippine Dealing and Exchange Corp. this month.
Another subsidiary, Mariveles Power Generation Corp. (MPGC), recently finished the 4×150 megawatt (MW) circulating fluidized bed coal-fired power plant and associated facilities in Mariveles, Bataan, using high efficiency low emission (HELE) technologies.
Units 1-3 already commenced commercial operations last year, while Unit 4 achieved commercial operations last January 9 of this year. All four units have net load of 528MW, with approximately 37 percent in thermal efficiency.
“As of September 2024, overall project completion is 99.9 percent with equity-backed capital expenditures of P34.4 billion,” the company said, referring to the four units.
As part of the company’s diversification of its power portfolio away from traditional coal technologies, another subsidiary, Excellent Energy Resources Inc. (EERI), is constructing the 1,320MW combined cycle power plant, or BCC power plant, in Batangas with a net load 1,275MW.
The BCC power plant, which is going to have a 60-percent thermal efficiency rate, will utilize liquefied natural gas (LNG). The plant is targeted for completion within the first quarter of this year. Unit 1 and Unit 2 are already completed and are awaiting for the issuance of regulatory provisional authority to operate. The overall project completion is 98.2 percent with equity-backed capital expenditures of P36.9 billion.
The company also intends to construct and develop small-scale LNG units in strategic locations in Mindanao consisting of 50MW to 100MW, to boost rural electrification.
“The company is evaluating the timing on progressing the project depending on market conditions, the general state of the Philippine economy and demand, among others,” it said.
As part of its transition to cleaner energy sources, SMC Global Light and Power Corp. (SLGPC), is developing a portfolio of solar power projects together with potential partners.
The first phase will cover 1,300 megawatt peak (MWp) across various sites in Luzon, including in the provinces of Bataan, Bulacan, and Isabela by 2028. The second phase is expected to have an aggregate capacity of 1,100MWp by 2039 across Pagbilao, Bohol, and various locations in Mindanao, including Davao. “We target the completion of these solar power projects between 2028 and 2039,” it said.
Earlier, SGLPC signed an investment and shareholders agreement with Citicore Renewable Energy Corp. for the 150MW solar power plant to be constructed in Mariveles, Bataan that is expected to be completed in 2026.
Upon completion, all capacity to be generated by the solar power plant will be supplied to SMGP or any of its affiliates under long-term energy supply contracts.
For its solar power projects, SMGP will handle pre-development activities and land acquisitions and will lease the sites to third-party owner of plants. SMGP entities will also be offtakers for a minimum fixed period of 20 years.
SMGP’s subsidiaries—SMGP BESS Power Inc., SMGP Kabankalan, and MPCL—are undertaking the expansion of the BESS portfolio by about 1,000 MWhour (MWh). Of these, 630MWh across 18 sites achieved substantial completion as of September 2024, including the 30MWh Kabankalan Phase 1 and 2, and 20MWh Masinloc Phase 2.
Three BESS facilities with a combined capacity of 120MWh located in the provinces of Tarlac, Leyte, and Misamis Oriental commenced operations in March 2024 while a total of 30Mwh across two sites were expected to be substantially completed at end-2024.
One of the BESS projects was inaugurated in March 2023 in Limay, Bataan.
“We have entered into EPC (engineering, construction, procurement) contracts with ATE Energy and we target to complete our 320MWh BESS project in Mariveles in 2025,” it added.
The company said these expansion projects are aimed at optimizing its installed capacity and strategically contract capacity to enhance margins; vertically integrate complementary businesses in order to diversify its energy portfolio; and continue to pursue and develop measures to reduce emissions and operate power plants within and below applicable environmental compliance standards.
