SMC unit’s deal with power co-op gets ERC nod

San Miguel Energy Corp., the energy arm of diversified conglomerate San Miguel Corp., has secured regulatory approval for its power supply agreement with an electric cooperative in Sorsogon.

In an order, the Energy Regulatory Commission said that SMEC’s energy supply contract with Sorsogon II Electric Cooperative Inc. (Soreco II) would redound to the benefit of the electric coop’s member-consumers in terms of continuous, reliable, efficient and affordable power supply as mandated under the Electric Power Industry Reform Act (Epira).

Under the energy supply contract, SMEC has guaranteed to supply Sureco with monthly contracted energy ranging from 4.5 megawatts to over 6 MW monthly, over the next two years.

SMEC would be providing Soreco II with electricity generated by the 1,200-megawatt Sual coal-fired power plant in Pangasinan. SMEC is currently the independent power producer administrator (IPPA) for the facility, which means that it would have to administer and manage the contracted energy as well as the fuel requirements of the coal power plant.

At present, San Miguel is the biggest power player in the country with an installed capacity of more than 3,000 MW. This capacity may decrease as the company was earlier reported to be finalizing the sale of the 620-MW combined cycle facility in Limay, Bataan.

The company is looking to build natural gas and coal-fired facilities to build another power portfolio with a combined capacity of 3,000 MW. Through another subsidiary, SMC Global Power Holdings Corp., San Miguel is targeting to build six power facilities in various locations across the country, including a 1,200-MW plant in Cavite—the biggest of the proposed facilities in its power portfolio; a 600-MW power generating facility in Bulacan, and another plant in Leyte, also with a 600-MW capacity.

In Panay, a 150-MW power plant is being planned as well.