AboitizPower sets P50-B capex this year

MANILA, Philippines — Aboitiz Power Corp. has budgeted at least P50 billion in capital expenditures this year, focused on the continued development of its coal-fired power plants and pursuit of renewable energy projects.

Of the total,  about 80 percent is for thermal projects, while the remaining balance is “mainly for exploratory and operating activities.”

AboitizPower continues to pursue both renewable projects and thermal technologies.

“The company believes that no single technology that can completely address the country’s energy requirements and that a mix of power generation technologies is necessary to address the country’s needs,” it added.

So far, the company is on track to reach its target of 4,000 megawatts (MW) net attributable capacity by 2020. It has around 3,200 MW beneficial capacity to-date.

AboitizPower has investments in various thermal and renewable power generating facilities with a total net sellable capacity of 3,350 MW with its partners.

Its Cleanergy brand hit 1,272 MW, 39 percent of its total net sellable capacity.

AboitizPower and partner Vivant Corp. are currently testing and commissioning its 2x170-MW coal-fired power plant in Toledo City, Cebu.

Meanwhile, GN Power Dinginin Ltd. Co. (GNPD) will start operating the first unit of its 2x668-MW Dinginin supercritical coal-fired power plant in Mariveles, Bataan within the year.

GNPD, is a partnership composed of AboitizPower’s Therma Power Inc. (TPI), AC Energy Holdings Inc. of the Ayala group, and Power Partners Ltd. Co.

Meanwhile, AboitizPower expects continued growth from its power distribution business.

“The company expects its existing distribution utilities to continue to realize modest growth. It continuously seeks efficiency and improvements in its distribution utilities’ operations in order to maintain healthy margins,” it said.

AboitizPower also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country.

The company reported a six percent rise in net earnings to P21.7 billion last year on the back of higher contribution from new generating capacities namely Pagbilao Energy Corp. (PEC) and Hedcor Bukidnon Inc.

PEC, the joint venture between TPEC Holdings Corp. and Therma Power Inc., which are wholly-owned subsidiaries of TeaM Energy Corp. and AboitizPower, started operating the 420-megawatt (MW) coal-fired power plant in Pagbilao, Quezon early last year.

Hedcor Bukidnon’s 68.8 megawatt hydro plant in Manolo Fortich also commenced operations.