AboitizPower CEO Erramon I. Aboitiz reiterated the company's commitment to the Renewable Energy Plan of the government.
AboitizPower CEO Erramon I. Aboitiz reiterated the company's commitment to the Renewable Energy Plan of the government.

Power

EIA’s Speech at the SacaSun Inauguration

Speech by AboitizPower CEO Erramon I. Aboitiz

On the inauguration of SacSun’s 59MWp solar power plant

April 19, 2016

Sacasun switch on

Given our balanced mix of renewable and non-renewable energy sources, we are uniquely positioned to provide our customers with their choice of the right power solution that is reliable, reasonably priced and has the least impact on our environment. This means we can address the power needs for baseload, intermediate and peaking loads, as well as ancillary services for grid stability and system management.

On behalf of the Aboitiz Group, it is my honor to welcome all of you to the inauguration of the 59-MW San Carlos Sun Power power project, our first venture into solar energy. SacaSun, as we call it, is one of the largest solar power projects in the Philippines today, and is set to produce over 82 gigawatt hours of clean energy a year, enough to power 33,000 homes. 

It took us only six months to  build this facility, and it truly was a team effort of 4,000 men and women who helped put it together, alongside  the strong support of the national government and, of course, our host community, San Carlos City. Everyone’s hard work and dedication to this project enabled us to complete the facility and start exporting power even before the March 15 enrolment deadline for the feed-in-tariff for solar.

Indeed, the global demand for renewable energy (RE) is growing remarkably and the call for 100% RE by 2050 is gaining momentum worldwide in the face of climate change. The Philippines is among the countries deemed most vulnerable to its dire effects and this is why we see local RE investment gaining ground as well.

Our national RE portfolio which is at 32% of dependable capacity is higher than the global energy mix of 23% (in 2014). The Energy Department aims to triple RE capacity by 2030 under the National RE Plan while reducing GHG towards our country’s target of 70% by the same year. These form part of our INDC or Intended Nationally Determined Contribution to the United Nations Framework Convention on Climate Change, which AboitizPower supported last October.

While the Philippines  accounts for only 0.3% of global GHG emission, AboitizPower fully supports government’s call to further reduce our carbon footprint. To ensure that we keep up with the growing demand and secure the country’s energy mix target of 30% renewable, we will continuously invest and develop more Cleanergy, our brand for clean and renewable energy.

AboitizPower is  one of the country’s largest producers of renewable energy and our Cleanergy portfolio generates 1,263 MW, or close to 40% of our total net sellable capacity. This represents our commitment to support the government’s push for a balance of renewable and non-renewable power sources to address the country’s increasing energy demand.

Our other RE projects in the pipeline include SN Aboitiz Power’s 8.5-MW Maris Canal hydro plant in Isabela, Hedcor’s 68-MW Manolo Fortich hydro plant in Bukidnon and  Aseagas’ 8.8-MW biomass power facility in Batangas. We have other RE projects in the pipeline which include geothermal and biomass power plants.

We are on track in achieving our goal to increase AboitizPower’s attributable generating capacity to 4,000 MW by 2020. 

Given our balanced mix of renewable and non-renewable energy sources, we are uniquely positioned to provide our customers with their choice of the right power solution that is reliable, reasonably priced and has the least impact on our environment. This means we can address the power needs for baseload, intermediate and peaking loads, as well as ancillary services for grid stability and system management.

Power supply in Mindanao continues to be a challenge due to a lack of capacity, the effects of El Nino, the bombing of NGCP’s transmission lines, as well as the repairs and maintenance of power plants.   TSI’s full commissioning of its two units last February is providing the much- needed baseload capacity to help ease the power shortage as it is not dependent on weather conditions and paved the way for other private power producers to bring investments to Mindanao.   

For us, this strongly attests that EPIRA is indeed working and creating a more competitive market.  Open Access empowers consumers to choose, and provides generators a market that is not controlled by distribution utilities. We foresee a larger customer diversity as the timelines are realized for reducing the threshold for contestability from 1 MW to 750 kW and, eventually, a further reduction to 500 kW.

At this point, we would like to thank you, Mr. President, for your leadership that exemplifies sustainable and inclusive growth through your administration’s policies on good governance, transparency, and accountability. “Daang Matuwid” has regained confidence in our country, attracting local and foreign investments, and sustaining our upward economic growth trajectory.

We also thank the various national government agencies without whose strong leadership and support, this project would not have come to fruition. (Thank you, Sec Monsada and the DOE, thank you to other govt agencies.)

Equally important is the support of the San Carlos City officials. We are appreciative of your support, collaboration and warm hospitality since we began work here. We look forward to working with you as we integrate into your community.

To the other energy sector stakeholders — PEMC, Transco and NGCP, thank you too for your support.

Of course, we also thank our EPC contractor, NARI Group, our very supportive and accommodating creditor banks, our suppliers, and legal and technical advisors. Their support enabled us to move forward quickly to build this facility and meet the March 15 deadline.

Last, but certainly not the least, we thank and congratulate our project development & execution teams, as well as our sales teams for their strong commitment, tenacity and hard work to see this project through.

With all of your combined and continued support,  your invaluable partnership, we will continue to provide a sustainable solution for our country’s growing demand for power, and to energize the dreams and hopes of our fellow Filipinos for a better future.

On behalf of the Aboitiz Group, thank you for joining us for today’s momentous event.  Good day to all of you!