MANILA, Philippines —Aboitiz Power Corp. has raised its stake in a coal-fired power plant in Mindanao to boost its portfolio without adding new coal capacity to the power grid.
In a stock exchange filing on Thursday, AboitizPower said it had signed a share purchase agreement with Essen-based STEAG GmbH to acquire the latter’s remaining 15.6-percent equity interest in the 210-megawatt (MW) coal power plant managed by STEAG State Power Inc.
This brings AboitizPower’s total equity interest in the Misamis Oriental facility to 85 percent.
READ: AboitizPower assumes control of Mindanao coal plant operator
“With the energization of the Mindanao-Visayas Interconnection Project (MVIP), it further contributes to the aggregate supply and supports grid integrity amid the influx of more variable renewable energy,” the company said in its disclosure.
The 450-MW MVIP was fully energized on Jan. 26, allowing the country’s three major island groups to share power through a single transmission network.
In effect, STEAG power plant will now be able to export more capacity to the national grid. AboitizPower initially acquired a 34-percent equity interest in the power plant in 2007, a year after it began commercial operations. It acquired an additional 35.4 percent in 2022.
READ: Aboitiz to shift away from 80% coal, diesel power portfolio
Despite this additional investment in a fossil fuel-fired power plant, AboitizPower said it would continue to “expand, manage and optimize its diverse generation portfolio, led by investments in new renewable energy capacity.”
According to the company, it expects to open at least four new renewable energy facilities this year with a total capacity of 393 MW.