Spectrum, a wholly owned subsidiary of the Manila Electric Company, is eyeing to invest close to a billion pesos to expand its installed solar capacity to at least 70 megawatts by next year.
During a press chat on Friday, Spectrum chief operating officer Patrick Henry T. Panlilio said the company has about 43 MW of accumulated installed solar capacity since 2016. He expects to close the year with a 50 MW solar size.
"We are targeting an additional 20 MW next year, but that's just the initial plan, and it could further expand depending on the market. We are not limited to that because we want to grow to other segments as well," Panlilio said.
Considering the market conditions, especially the depreciating power of the Philippine peso against the United States dollar, the investment for the planned expansion could range from P800 million to P900 million.
According to Panlilio, the needed capital expenditure for developing and installing one MW is currently around P40 million to P45 million. Before the peso traded at the 58 levels, the budget of such a capacity typically ranged from P30 million to P35 million.
Growing residential uptake
Demand from commercial and industrial customers currently takes up 99 percent of Spectrum's total capacity. However, Spectrum President and CEO Ferdinand O. Geluz noted that the number of residential customers seeking to invest in solar panels is starting to grow.
"People are now starting to see the benefit of having solar panels at home, especially that fuel price surge affecting electricity rates every so often. It is quite expensive, but I think people should see (solar panel installation) as an investment and not just an expense," he said.
According to initial computations posted on the Spectrum website, any household that wants to install at least a 2-kilowatt solar panel on their roof needs to shell out a P235,000 one-time investment. With such capacity, it can help lessen carbon emissions by 2,184 kilograms, equivalent to planting 4,483 trees in 20 years. Potentially, they can save P3,000 monthly from this investment.
Spectrum said it could also install as much as 7 KW of solar power in any household, but that would require a bigger investment at about P365,000, which can help them save at least P10,000 monthly. The company said it would also take care of its client's net metering processing.
Data from the Department of Energy showed that less than half, or 43.2 percent of the country's power needs, were indigenous or locally sourced, and the rest were imported.
Of the indigenous resources, natural gas only has a 19.3 percent share in the total power generation mix as of July. Hydropower takes up only 4.5 percent; solar power, 2 percent; oil-based, 2.8 percent; biomes, 0.9 percent; and wind, 0.2 percent.
