Philippines: San Miguel Corp. To Invest In Renewable Energy

Philippines: San Miguel Corp. To Invest In Renewable Energy

It seems the next step for San Miguel Corp (SMC) is to further expand its
presence in the energy industry by making an investment in renewable energy.
It was revealed recently that the multinational conglomerate is now in talks
with two Asian firms for a possible renewable energy partnership.

"We have a responsibility as a major power producer to do our share in
pushing for a sustainable clean energy economy, but it has to be done in the
most efficient way possible for the consumers," BusinessWorld Online
reported SMC president and Chief Operating Officer (COO) Ramon Ang as
saying. "With critical mass and better technology, I believe we should be
able to strike the perfect balance between renewable and non-renewable
sources in terms of the country's energy mix."

The plan is to further diversify the portfolio of SMC's power company, SMC
Global Power Holdings Corp. (SMC Global Power). At the same time, Ang had
also pointed out that the Philippines tends to have one of the most
significantly high electricity rates across Asia. Since subsidies have been
further given to renewable energy companies using the feed-in tariff (FiT),
the power rates had gone up even more.

FiT system is not just for consumers

In facts, the FiT system has guaranteed that renewable energy companies will
continue to receive compensation through a long-term fixed price that has
been set for 20 years. With this, Ang believes it's time to change so that
the customer will not have to continue to shoulder the cost burden.

"It's about time we find a balance between promoting clean energy and
securing the country's energy needs without making consumers bear the cost
of a punishing subsidy for years in favor of RE [renewable energy]
producer," Ang explained. To help with this vision, Ang said that SMC had
organized a team that is responsible for continuously searching and
developing solutions for the clean energy sector with regard to how it
affects both the customers and the environment. Ang refused to name the two
companies that SMC is considering a renewable energy partnership with, but
he is promising that SMC Global Power is considering both affordability and
energy security for the customers.

Coal-Fired Power Push

Aside from this development, Ang also said that SMC plans to develop three
coal-fired power plants in the Mindanao that will have a capacity of 58
megawatts (MW) each. These will be put up in Jolo, Basilan and Tawi Tawi.
The plants are expected to help in significantly lowering the price of power
in the said area.

SMC Global Power is currently the largest independent power producer in the
Philippines in terms of installed capacity standard. It has five power
plants that readily provide a capacity of 2,903 MW.

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Link to Original Article:
http://www.ibtimes.ph/san-miguel-corp-smc-invest-renewable-energy-6298

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com