Joint venture firm SN Aboitiz Power (SNAP) has inked power supply agreements (PSAs) for the procurement of electric capacity from power plants owned by PetroGreen Energy Corporation (PGEC) and PetroSolar Corporation (PSC) of the Yuchengco group.
In a statement to the media, SNAP indicated that the purchased power to be delivered by the two Yuchengco-led firms will be funneled into the former’s subsidiary Magat-RES, a retail electricity supplier (RES) entity servicing big-ticket customers in the retail competition and open access (RCOA) space.
SNAP Group President and CEO Joseph Yu emphasized that the scale of capacities they contracted had been 27.5-megawatt(dc) from PGEC, and 20 MWdc with PSC. The power supply deals were signed January 31 this year.
He qualified that “partnerships and synergies are always in the market, but it is particularly exceptional when we do it with companies who share similar values, traits, and beliefs.”
SNAP, which is a partnership between Filipino-led Aboitiz Power and Norwegian firm Scatec ASA, currently has hydropower facilities in its portfolio, although it has also been setting its sights for investment expansion on other renewable technologies, including solar and offshore wind.
Given the cyclical nature of generation at hydro plants, it is reckoned that their best technology coupling will be solar, because its generation peaks during summer when water levels run low.
Geothermal, of course, is the indisputable champion in the renewable energy (RE) space given the round-the-clock nature of its power supply provision.
The Yuchengco group’s PGEC and PSC corporate vehicles, in particular, already own and operate geothermal, wind, and solar generation facilities in various parts of the country.
PGEC President Milagros Reyes said “it's easy working with SNAP because we both have a clear understanding of our respective aspirations, and so we positively see areas for a winning partnership.”
She added “this partnership between SNAP and our companies is a fulfillment of our shared commitment of supporting energy security for the country through renewable energy.”
The RE investment sphere is currently the "most exciting game in town", not just for foreign investors that are still whetting their appetite in the Philippine power market; but even for the well-entrenched players in the industry.