SPC Power Corp. has earmarked P3 billion in capital expenditures this year, with most of the spending allocated for battery energy storage system (BESS) facilities and solar projects to strengthen its renewable energy portfolio and cushion the impact of global fuel market volatility.
“The board of directors has approved and earmarked P3 billion for capex spending for the year,” James Roy N. Villareal, SPC’s newly elected president and chief executive officer, said during a media briefing on Thursday following the company’s annual stockholders’ meeting.
He replaced Dennis T. Villareal, who stepped down from his executive role after 32 years and was named chairman emeritus while remaining on the board.
Among the company’s key priorities this year is the rollout of 160 megawatt-hours (MWh) of battery storage capacity targeted for deployment to the grid in the second half, alongside the accelerated development of solar projects and optimization of existing power plants.
Although BESS facilities are not classified as renewable energy projects, SPC Power said the technology will support the integration of renewable energy into the grid.
The company is also banking on battery storage projects to help manage risks arising from geopolitical tensions in the Middle East, including market disruptions, higher fuel costs, and potential supply shortages.
Last year, SPC posted a record consolidated comprehensive income of P2.223 billion, up 43 percent from a year earlier, the first time the company breached the P2-billion level.
Operational performance improved during the year, with plant availability rising to 96.4 percent from 86 percent, while distribution utility peak demand grew 8 percent to 127.7 megawatts. System loss also declined to 6 percent.