Manila, Philippines - Global Business Power Corp., the power generation unit of the Metrobank Group aims to build around 1,000 megawatts (MW) of power capacity in the next three to five years to help augment electricity needs in Luzon.
GBPC chief finance officer Jaime Azurin said the company is planning to construct some 200 to 300 MW of hydro and coal plants to boost power reserves amid threats of an energy shortage in Luzon by 2017.
“All indications show, based on our study, that the problem in Luzon will hit somewhere between 2017 to 2018. There will be not enough supply so you have to prepare to be in that market around that time,” Azurin said.
Azurin said the additional capacity is also in line with plans to go public following the successful maiden share offering of parent firm GT Capital Holdings.
“For an IPO(initial public offering) you need to have new projects. If we’re able to increase our existing capacity of 600 MW to 1,000 MW then that’s the time we will do an IPO. It all depends on how fast we finish the pre-development of projects,” Azurin said.
He admitted that entering the Luzon market would be a tall order considering the presence of big players like the Aboitiz, San Miguel and Lopez groups, which have been well entrenched in the area.
“We have big plans in coming to Luzon. A lot of the big players are almost at their capacity limits so there will be room for a new player to come into Luzon. We’re hoping we could be that one,” Azurin said.
GBPC is also looking at further expanding its presence in Visayas, which has been experiencing power outages due to a lack of generation capacity to meet both the demand and reserve requirements needed by its grid.
GBPC currently has 633 MW of capacity in Visayas from nine power plants and another 164 MW are under construction.