Juan Alejandro “Sandro” A. Aboitiz, recently appointed as the Chief Financial Officer of Aboitiz Power Corporation (AboitizPower), expressed confidence in the company’s continued growth, driven by upcoming energy projects.
Aboitiz detailed the company’s progress and future plans in an interview on ABS-CBN News Channel’s program Market Edge. Aboitiz highlighted the recent commencement of energy delivery from their 94 megawatt peak Cayanga solar plant in Pangasinan.
Looking forward, 2024 is expected to see the 159 megawatt peak Laoag solar plant, also in Pangasinan, start contributing to the Philippine grid. Additionally, a 24 megawatt battery energy storage project in Magat, a collaboration with Scatec, is set to begin operations next year.
Aboitiz emphasized the company’s commitment to expanding renewable energy (RE) capabilities, including potential wind energy projects.
As part of its decarbonization strategy, AboitizPower aims to double its net attributable sellable capacity to 9,200 megawatts over the next decade, with an equal split between RE and thermal capacities.
The company has already identified nearly 1,000 megawatts of RE projects, including a 17 megawatt geothermal binary plant in Tiwi, Albay.
Aboitiz stressed the importance of a balanced energy transition, acknowledging the need for sufficient baseload capacity alongside the growth in RE. He noted the evolving energy system requires enhanced transmission networks capable of managing increased grid variability due to RE expansion.
The transition also involves accommodating two-way power flow, as more end-users install solar rooftops and battery systems.
AboitizPower’s financial performance reflects the company’s robust strategy, with a 37% year-on-year increase in net income to P26.7 billion in the first nine months of 2023.
This growth is attributed to higher power generation availability, increased sales in both retail and distribution utilities segments, and effective management of operational and market complexities.
Looking at the broader energy landscape, Aboitiz mentioned the focus on liquified natural gas as a transitional fuel and exploring nuclear technologies for decarbonization.
He also emphasized the need for a supportive policy environment, including enhanced transmission capacity, giving more choice to end-users, and streamlining the permitting process for energy projects through the Energy Virtual One-Stop Shop (EVOSS).
In summary, Aboitiz expressed optimism about AboitizPower’s ability to support the grid, maintain plant availability, and minimize impact on end-consumers, positioning the company well for 2024 and beyond.
BusinessTimes Philippines