A Brown unit to increase power capacity in Mindanao

MANILA, Philippines - A. Brown Co. Inc. (ABCI), through its wholly owned power subsidiary Peakpower Energy Inc. (Peakpower) is eyeing to increase its capacity by 50 to 60 megawatts in the next two years.

“I think it would be an additional 50 to 60 MW, which will be largely in Mindanao,” said Peakpower president Roel Castro.

The expansion, to be undertaken with partners, would comprise of around five diesel and bunker-fired power plants, with a capacity of between 10 and 15 MW each plant.

The total investment will be roughly P75 to P90 million based on the rule-of-thumb for diesel and bunker plants of roughly P1.5 million per MW, Castro said.

The company is also looking at putting a hydropower plant in Surigao and developing as well the second unit for Palm Concepcion Power Corp. (PCPC).

“I guess (the expansion will be) within the next 12 to 18 months. And then we’ll also have the hydro in Surigao, which is 26 MW. And then we’re starting to look at unit two for PCPC,” Castro said.

A. Brown’s foray into the energy business includes a 135-MW coal-fired power plant in Concepcion, Iloilo through its subsidiary Palm Concepcion.

The hydroelectric project in Surigao is under its subsidiary Hydrolink Projects, which signed a hydropower service contract with the Department of Energy in July 2013.

A. Brown is a publicly listed company primarily engaged in real estate and agribusiness that has recently ventured into the utilities sector, particularly in power and renewable energy, according to its profile.

Peakpower has also started the construction of two bunker-fired power plants, the 20-MW Peakpower Socsargen in General Santos City and the 5-MW Peakpower San Francisco in Agusan del Sur.

Castro said the company is concentrating its investments in Mindanao and Visayas for now.

“We’d rather look at Visayas and Mindanao for now because we’re more familiar with the business landscape there,” Castro said.