AboitizPower: Six ongoing RE projects for completion in 2026
It’s a busy year for Aboitiz Power Corp. (AboitizPower), as it presented six renewable energy (RE) projects and a coal plant expansion up for completion by 2026.
During an online briefing on Monday, April 28, Danel Aboitiz, AboitizPower’s president and chief executive officer (CEO), disclosed that there are several projects that are under construction this year, and have a target to go online by the fourth quarter of 2026.
“We expect that LNG [liquefied natural gas] LNG and RE, along with energy storage systems, will have an increased share of the energy pie in the coming years. While cognizant of the country’s growing baseload demand, AboitizPower believes in a balanced portfolio and a well-managed energy transition such that all forms of energy generation, as well as storage, are part of our long-term vision,” he said.
Among these developments, AboitizPower has listed two solar projects, three battery energy storage systems (BESS), and the company’s first-ever wind project to be completed next year.
This includes the 212 megawatt-peak (MWp) Olongapo solar, 89-MWp San Miguel solar, 20-MW Bay BESS, 20-MW Binga BESS, eight-MW Magat BESS, and 58.5-MW CamSur wind project.
Aside from these renewables, the company’s LNG unit, Therma NatGas Power, partnered with the country’s major energy players, such as Meralco PowerGen through a 40-percent acquisition in Chromite Gas Holdings, holding a majority interest in two gas power plants and a natural gas terminal in Ilijan, Batangas.
“This marks AboitizPower’s foray into the liquefied natural gas space. This acquisition, alongside our other green and brownfield projects, positions AboitizPower to sustain the group's upward earnings trajectory over the long term and represents a significant leap forward to support the Philippine energy transition,” he elaborated.
Additionally, the AboitizPower chief is anticipating that energy prices would slow down due to stable fuel costs and more electricity coming into the national grid.
“Based on available market information today, we expect energy prices to start to soften as a result of normalizing fuel costs and expected supply capacity additions into the Philippine grid, as well as the co-optimization of the market, reinforcing our long-term strategy of securing more long-term contracts through capacity auctions, particularly for our baseload assets,” he explained.
“As of the end of last year, 69 percent of our baseload capacities are locked into long-term power supply contracts. If you include the recently won power supply contracts through a competitive selection process, close to 90 percent of our baseload capacities will be locked into long-term contracts by year-end,” Aboitiz added.
Meanwhile, the expansion of Therma Visayas Inc. (TVI) is underway, as the AboitizPower chief highlighted the need for additional power supply in Cebu.
“The expansion of Therma Visayas is as planned. There’s the engineering, procurement, and construction (EPC) [contracts]. The TVI expansion should help support growth expansion of Cebu… The island of Cebu lacks baseload supply. It’s quite mountainous, has limited space for expansion on renewables capacity. This addition of baseload supply is much needed,” he elaborated.
Aside from project growth, AboitizPower reaffirmed its interest in partaking in the Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant bid.
“We disclosed that we are interested in participating in the auction of the CBK hydroelectric power plant complex. Process began in 2024 but was pushed out to this year. CBK can hold significant value for us at AboitizPower. We believe that we can enhance its operation and maximize its potential as a merchant asset given our experience in hydro technology and our diverse portfolio.”
To recall, the CBK power plant complex is under the state-owned Power Sector Assets and Liabilities Management Corp. (PSALM), which has recently gained a 10-year corporate life extension.