San Miguel power unit bags supply contracts

MANILA, Philippines - San Miguel Energy Corp. (SMEC), the power generation unit of the food to-infrastructure conglomerate San Miguel Corp., has bagged multi-year contracts supply power to eight more electric cooperatives (ECs) and establishments.

SMEC said it will source the power to be supplied to these ECs from its contracted capacity in the 1,200-megawatt Sual coal-fired power plant in Pangasinan.

The supply contracts cover Camarines Sur 1 Electric Cooperative (five years), Quanta Paper (five years), IIlocos Norte Electric Cooperative (five years), Central Azucarrera de Tarlac (three years) and Isabela 1 Electric Cooperative (five years).

Other new customers are Kalinga Electric Cooperative (five years), Radio Veritas (five years) and Basa Airbase Command (five years).

SMEC said it is expecting to sign more supply contracts in the near term, such as Casureco 1 and Quanta Paper.

At present, SMEC administers the supply contract of the Sual coal-fired power plant being operated by Japanese-owned TeaM Energy Corp.

Earlier, SMEC entered into a five-year supply contract with Quezon Electric Cooperative. It also signed contracts with Ilocos Norte Electric Cooperative Inc. and Sorsogon II Electric Cooperative Inc.

The San Miguel group, now the country’s biggest power supplier, plans to double its existing power capacity to 6,000 MW from 3,000 MW.