Aboitiz Power Corporation (AboitizPower), renowned for its operational expertise and decades of outstanding performance, has secured a pivotal role in the Philippines’ energy landscape. Alongside Meralco PowerGen Corporation and San Miguel Global Power Holdings Corporation, AboitizPower is investing in the nation’s largest integrated liquefied natural gas (LNG) facility.
In a groundbreaking deal, AboitizPower acquired a minority stake in the integrated LNG facility in Batangas. This strategic move is poised to deliver over 2,500 megawatts of power, combining the output from a new 1,320-megawatt combined cycle power facility and the renowned Ilijan Power Station, historically contributing 10-12 percent of Luzon’s net dependable power.
AboitizPower’s president and CEO Emmanuel Rubio emphasized the significance of this investment, stating, “We are delighted to diversify our generation portfolio and enhance our capability in ensuring energy security in the Philippines through our minority stake in the country’s pioneering integrated LNG facility. Its pivotal role in maintaining uninterrupted power supply cannot be overstated.”
Rubio further highlighted the pragmatic approach of integrating LNG plants amidst the energy transition dominated by variable renewable energy sources. LNG, as a transitional fuel, complements the intermittencies of solar and wind power generation, bolstering the stability of the aggregate power supply.
Gas-to-power generation emerges as a natural complement to variable renewable energy, particularly in upholding grid stability and fortifying energy security. LNG-powered turbines possess the agility to swiftly adjust electricity generation, aligning with the fluctuating output of renewable energy sources.
Aligned with the Clean Energy Scenario outlined in the Philippine Energy Plan, projections indicate that by 2040, 50 percent of gross generation will originate from renewable energy sources, with LNG contributing 26 percent.
Rubio underscored, “This investment aligns with AboitizPower’s growth strategy of integrating 3,700 megawatts of new renewable energy capacity, transitioning towards a balanced portfolio of 4,600 megawatts each between thermal and renewable assets.”
Beyond fortifying energy security, the integrated LNG facility will stimulate and sustain economic growth in the country by ensuring stable and reliable electricity supply. As peak demand is anticipated to surge annually by 6.6 percent from 2020 to 2040, the facility’s capacity of over 2,500 megawatts is indispensable.
A stable electricity supply will catalyze new investments and sustain existing ones, addressing the Philippines’ challenge of having the lowest electricity generation per capita in the Asean region.
In line with national economic objectives, the government has set ambitious growth targets of 6.5-7.5 percent for 2024 and 6.5-8 percent for the period from 2025 to 2028.
