From diesel to renewables: Cebu-based power firm embraces change

Cebu-based SPC Power Corp., whose power-producing assets consist of diesel-fed and coal-fired generators, is pursuing opportunities in hydro and solar amid the global energy shift to clean fuel.

“Our company has been looking seriously at projects in the solar and battery [storage systems] areas of the renewables space,” SPC Power chair Alfredo Henares said in a press briefing.

“In fact, we have closely reviewed a couple [of projects] this year, and we will be making an investment in batteries,” Henares said.

Some of SPC Power’s existing assets are the 146.6-megawatt (MW) Panay diesel-fired power plant in Iloilo, 22-MW Bohol diesel power plant in Tagbilaran City and 300-MW Naga coal-fired power plant in Cebu.

The company started as the private-sector operator of the old 203.8-MW coal-fired power plant in Naga, Cebu.

SPC Power had intended to develop a new 300-MW coal-fired plant there, but the plan was scuttled due to an adverse decision from the Supreme Court.

Now, the company is considering new hydropower plant projects in other parts of Luzon and in the Visayas.

“Our efforts in solar still have to yield some good results, but it’s an area that we are looking deeply into,” Henares said. “And we hope to have something there by late this year or early next year.”

Jaime Balisacan, the company’s senior vice president for finance and administration, said SPC Power expected to have a capital expenditure kitty of only P42 million for this year, meant to keep the existing capital assets in top condition.

“However, we are also in the process of getting approval of around P220 million in capex (capital expenditure) for possible new projects within the year,” Balisacan said.