MANILA, Philippines — Aboitiz Power Corp., the Aboitiz Group’s listed energy platform, sealed an $11-million (approximately P633.5 million) deal that raised its stake in a coal-fired power plant operator in Mindanao.
In a disclosure on Friday, AboitizPower said it completed the acquisition of German power firm STEAG GmbH’s remaining 15.6-percent equity stake in STEAG State Power Inc. (SPI). In effect, AboitizPower now owns an 85-percent equity interest in SPI.
SPI operates a 210-megawatt coal-fired power plant at the PHIVIDEC lndustrial Estate in Misamis Oriental province.
“The STEAG power plant will continue to be a vital component of the Mindanao grid. With the energization of the Mindanao-Visayas Interconnection [Project], it further contributes to the aggregate supply and supports grid integrity without adding new coal capacity,” the company said.
The MVIP, energized in January this year, linked the power grid to Mindanao, allowing energy resource sharing among the regions.
Boosting attributable net income
The firm said the transaction would boost its attributable net income without adding new coal capacity to the grid.
Initially, AboitizPower acquired a 34-percent equity interest in the Misamis Oriental coal plant in 2007, or a year after starting commercial operations. In 2022, it purchased an additional 35.4 percent.
READ: AboitizPower hikes stake in coal-fired plant
“Overall, AboitizPower will continue to expand, manage, and optimize its diverse generation portfolio, led by investments in new renewable energy capacity,” it added.
Its initial expansion plans cover 1,200 MW of new capacities, including the 159-MW Laoag and the 94-MW Cayanga-Bugallon solar power plants in Pangasinan province, and the upcoming 17-MW Tiwi Binary Geothermal Power Plant in Albay province.
AboitizPower said last month it was ready to to begin the construction of 1,000 MW of solar facilities that would be switched on between 2025 and early 2026.