Aboitiz RE unit hikes capacity

ILOILO CITY — Aboitiz Renewables Inc. (ARI), the green electric generation unit of the Aboitiz Power Corp., is adding 176 megawatts (MW) within the first half —a move that puts the company on track to hit its capacity targets for the year.

“Our initial expansion phase focuses on developing mostly solar and wind plants with up to 1,200 MW capacity,” ARI president Jimmy Villaroman announced during the Philippine Electric Power Industry Forum 2024 here.

Currently, we are on track for 176 MW of RE projects to come online by the first half, with construction ongoing for an additional 218 MW,” he added.

Villaroman noted that the second phase of AboitizPower’s expansion will see an additional capacity of around 1,700 MW of solar and wind power.

To achieve the target of having 4,600 MW of renewable energy capacity by 2030, AboitizPower needs to operationalize a total of 3,700 MW of new capacity from solar, wind, geothermal, hydro, and battery energy storage system ventures.

Gradual move

Based on AboitizPower’s projections, peak electricity demand is expected to grow by 6.6 percent annually until 2040. Thus, power companies must ramp up investments to ensure a stable power supply.

According to Villaroman, the adoption of renewable energy should be calibrated and gradual to ensure that it will be tailored fit for the local market’s needs.

“We advocate a balanced approach, growing RE and investing in traditional sources that make the most sense while complementing it with energy storage for stability,” Villaroman said.

“While the Philippines strives toward a sustainable future powered by more renewable energy sources, its near- to mid-term energy security calls for leveraging existing, conventional baseload plants,” he added.

AboitizPower, through its subsidiary Therma NatGas Power, recently sealed an investment deal with Meralco PowerGen Corporation. The agreement involves the acquisition of a 40 percent stake in Chromite Gas Holdings, marking AboitizPower’s entry into the liquefied natural gas sector in two gas-fired power plants and an LNG import and regasification terminal.

According to the Clean Energy Scenario of the Philippine Energy Plan, LNG is projected to account for 26 percent of gross generation by 2040.