Tan group goes RE, invests in solar power plant

The Lucio Tan Group is investing in renewable energy (RE), beginning with the solar power plant project of Absolut Distillers Inc. (ADI) in Lian, Batangas.

Energy Secretary Carlos Jericho Petilla said ADI would seek the necessary permits from the Department of Energy (DOE) to start supplying power to the Luzon grid, which is experiencing a tight power supply.

ADI hopes to operate under the Feed-in-Tariff incentive program for renewable energy developers.

“This 2-megawatt (MW) solar power generation facility is only the beginning. From here, we see even greater possibilities,” Group chair Lucio Tan said in a statement. “We are committed … to bring better alternatives to help in the government’s efforts to mitigate the effects of climate change. We do these to reduce our carbon footprint as we aim towards a green economy.”

The solar power plant is already operational, costing P189 million to build, ADI said.

The facility is composed of 8,160 panels and occupies about 27,000 square meters where the 17-hectare ADI plant in Barangay Malaruhatan is located.

The company intends to sell the power generated by the plant to the Batangas Electric Cooperative (Batelco) for P9.68 per kilowatt-hour said Gerardo Tee, ADI general manager and Tanduay Distillers Inc. vice president for distillery operations. It is the rate approved by the Energy Regulatory Commission for solar power companies.

Under the FIT scheme, companies apply for a certificate of compliance that will enable them to dispatch electricity to the grid at a fixed rate for 20 years.

According to Petilla, there is a race among companies to build solar power facilities under the proposed FIT installation target of 500 MW.

“Other companies would apply for a certificate even without a project. But here at Absolut, the facility is already built. This is a serious investor,” Petilla said.

The solar power plant project is the Lucio Tan Group’s first RE venture.

Some 150 technical staff and construction personnel were commissioned to finish the solar power project within two months since its groundbreaking in January this year.

“ADI has been advocating sustainable energy since the 1990s. Today, the company is making greater strides as it invests in solar power and contributes even more to a worldwide clamor for a green economy,” Tan said.

Among ADI’s green initiatives are the Liquid Fertilization Project in 1999 and a joint project in 2006 with Mitsubishi under the Clean Development Mechanism (CDM) Project of the 1997 Kyoto Protocol, a United Nations-sponsored program that aims to reduce emissions into the atmosphere of harmful gases like methane. The UN cites methane gas emissions as the primary cause of global warming.

ADI was established in 1990 under the company Absolut Chemicals Inc., which was engaged in the manufacture of ethyl alcohol and liquefied carbon dioxide as fermentation by-products used for producing soft drinks among others.