Report calls on San Miguel to abandon coal projects

MANILA, Philippines — A new report is calling on conglomerate San Miguel Corp. to cut the cord on its coal projects, and instead lead the country’s transition to renewables.

A report penned by the Center for Energy, Ecology, and Development urged the Ang-led conglomerate to undertake the move while spotlighting SMC’s extensive interests in dirty energy projects and investments. 

For context, SMC Global Power and its subsidiaries own 4,719 Megawatts of total installed capacity sourced from its power plants across the country. SMC GP is the conglomerate’s power segment. 

“In a 1.5°C pathway, there is no more room for any coal projects. Thus, there is no reason for SMC to distinguish between greenfield and brownfield investments in the dirtiest fossil fuel,” CEED said.

SMC did not immediately respond to a request for comment.

The sustainability think tank noted that 87% of this total capacity comes from fossil fuels, which include 2,919 MW from coal and 1,200 MW from fossil gas. 

Accordingly, the share of hydropower energy is 12%. The remaining 1%, according to CEED, came from battery energy and peaking power plants. 

The report spotlighted coal projects that SMC should cancel, such as Units 4 and 5 of Masinloc Power Partners Co. in Zambales, Mariveles Power Generation Corp.’s 1,200 MW coal-fired power plant, and phase three of its 44.4 MW refinery solid fuel-fired boiler project in Limay in Bataan. 

The CEED also called on SMC to retire old and inefficient coal plants and formulate a roadmap for this, especially since the Department of Energy is already crafting policy surrounding the retirement of old power plants. 

To this end, the country’s transition to renewables warrants greater attention, as SMC could take the lead by spearheading projects and investments in CEED’s eyes. The conglomerate said in 2018 it plans to build up to 10,000 MW of renewable energy facilities in the next 10 years, which would bolster its existing installed capacity of power generated from coal and gas.

That 10,000 MW target warrants more details, according to CEED.

“As one of the biggest conglomerates in the country, SMC is in the position to take the lead in the energy transition by redirecting investments from fossil gas to renewable energy and further raising ambitions,” CEED added. 

The Philippines is looking to boost renewables in its current energy mix, which it hopes will hit 35% share by 2030. — Ramon Royandoyan