San Miguel Corp. (SMC) plans to spend $4.2 billion on five new power plants over the next five years, said president and COO Ramon Ang on the sidelines of the stockholders’ meeting of the conglomerate’s subsidiary, Petron Corp.
The total capacity of the five power plants will likely reach 2,100 megawatts (MW).
Ang also said SMC planned to build three new industrial estates in Mindanao, which it sees as a growth area for the Philippines, and each one will host a power plant to serve the needs of prospective locators.
The cost of putting up a power plant and port in each area will likely reach $600 million, he said.
Each of the three power plants will be built to generate 300 MW of energy capacity.
There are no firm timelines and other details yet for the power plants since the construction period will depend on the development of the industrial estates, which are still in the planning stage, Ang said.
SMC has a 600-MW power plant in the SMC Davao Industrial Estate.
The power plant was developed through SMC Global Power Holdings Corp.
Ang said the three power plants should be able to help serve growing demand for electricity in Mindanao.
Firmer plans, meanwhile, have been crafted for two new power plants to be built in Luzon.
Ang said SMC would spend $2.4 billion for two coal-fired power plants in the grid, which hosts the country’s most economically active areas such as Metro Manila.
Central Luzon Premiere Power Corp. (CLPPC) signed an agreement to supply the Manila Electric Co. with up to 528 MW of electrical output. CLPPC intends to construct, own and operate a 4 x 150-MW circulating fluidized bed coal-fired power generating facility in Pagbilao, Quezon. It is scheduled to become operational “no later than 2021.”
CLPPC is a subsidiary of San Miguel Corp.’s SMC Global Power Holdings Corp.