AboitizPower has maintained a formidable presence in the Philippine energy sector for decades, solidifying its position as one of the nation’s premier corporations and a key contributor to growth and development. Beyond its involvement in power generation, distribution, and retail electricity services, the organization is committed to empowering people and enhancing lives as an integral part of its corporate mission.
This commitment is deeply rooted in AboitizPower’s belief not only in the importance of business sustainability but also in sustainability that encompasses “peace and prosperity for people and the planet, now and into the future,” as articulated in the United Nations’ Sustainable Development Goals (UN SDGs).
As an energy company, AboitizPower wields significant influence in advancing SDG 7, which revolves around “ensuring access to affordable, reliable, sustainable, and modern energy for all.”
In line with the Philippines’ ambition to incorporate indigenous and renewable energy sources into 50% of its power generation mix by 2040, AboitizPower is poised to expand its renewable energy portfolio threefold, reaching a capacity of 4,600 megawatts (MW) in the coming decade. The company has already disclosed projects with a cumulative capacity of nearly 1,000 MW, encompassing various sources such as solar, hydro, geothermal, wind, and energy storage systems. Currently, AboitizPower, in partnership with various stakeholders, presides over the largest and most diversified renewable energy platform in the Philippines, in terms of installed capacity under its operational purview.
Notably, the clean energy subsidiaries of Aboitiz Renewables Inc. (ARI), the renewable energy arm of AboitizPower, have embarked on the construction of the 172 MWp solar power project in Calatrava, Negros Occidental, and the monumental 211 MWp solar power project in Olongapo, Zambales. The latter represents ARI’s most extensive solar undertaking to date.
The Calatrava project is expected to commence exporting electricity to the grid via the Calatrava substation by December 2024, while the Olongapo project is slated to become commercially operational by September 2025, providing electricity through the Castillejos substation.
The construction of these projects will be undertaken by SUMEC Complete Equipment and Engineering Co., Ltd. for Calatrava and through a joint venture involving Guangdong Electric Power Design Institute Co., LTD. (GEDI) and the parent company, China Energy International Group Co., Ltd. for Olongapo, both commencing in September.
These endeavors augment AboitizPower’s portfolio of solar projects, bringing the total count to five, inclusive of the commercially operational San Carlos Sun Power Inc. in Negros Occidental and the ongoing development of the Laoag and Cayanga solar projects in Pangasinan.
In the current year, AboitizPower is poised to launch its Tiwi Binary Geothermal Power Plant in Albay.
These strides in renewable energy are complemented by strategic investments in battery energy storage systems (BESS), including the 49 MW Maco BESS in Davao de Oro and the soon-to-be-operational SN Aboitiz Power (SNAP) 24 MW Magat BESS in Isabela. Notably, the Maco BESS represents the first of its kind in Southeast Asia, built atop a floating platform. BESS technology plays a pivotal role in providing regulating and contingency reserve power to the nation’s power grids.
Furthermore, AboitizPower is actively exploring avenues to reduce the carbon footprint of its thermal assets. This includes a comprehensive study of the commercial and operational viability of co-firing ammonia and hydrogen in coal and liquefied natural gas power plants, respectively, in collaboration with JERA, Japan’s largest power generation company.
In addition, AboitizPower’s distribution business remains steadfast in its commitment to rural electrification programs, aimed at illuminating its franchise areas and ensuring electricity access for every household. As of now, the distribution utilities under the company’s purview in Visayas and Mindanao have successfully energized over 99 percent of their franchise areas.
AboitizPower is also at the forefront of championing SDG 10 in the Philippines, which revolves around “reducing inequality within and among countries.” Through its Diversity, Equity, Inclusion, and Belonging (DEIB) program, the organization is a trailblazer among Philippine companies, extending HMO coverage benefits to same-sex and common-law partners of its team members.
Finally, in alignment with SDG 11, focusing on the development of “sustainable cities and communities,” the company recognizes the pivotal role it plays in local communities, significantly impacting the lives of people. Among the initiatives AboitizPower supports is the Building Resilient Infrastructure and Communities through Kaibigans (BRICK) Hub project, in which its subsidiaries, Therma South Inc. and Therma Visayas Inc., supply recovered fly ash to local cooperatives for the creation of resilient ecobricks.
Moreover, AboitizPower is taking steps toward nurturing ecosystems for sustainable cities, particularly in the realm of cleaner mobility. The company recently launched its Electric Vehicle Fleet Transformation Program in support of the Electric Vehicle Industry Development Act (EVIDA), with the aim of transitioning 40 percent of its fleet of four-wheeled vehicles and motorbikes to electric alternatives by 2030, ultimately culminating in full electrification by 2040.
In conclusion, AboitizPower remains resolute in its commitment to integrating the SDGs into its business practices and community engagements, with the overarching goal of bridging societal gaps and fostering prosperity for all. The broader Aboitiz Group, serving as the parent company of AboitizPower, is equally dedicated to operating with a sustainability ethos that champions best practices in environmental stewardship, social responsibility, and sound governance, all while ensuring sustainable financial growth and business resilience. Furthermore, the Group, in alignment with the United Nations Global Compact (UNGC) and its SDG Ambition initiative, actively pursues ambitious targets for the seamless integration of identified SDGs into its core business operations.
This article first appeared on September 25, 2023 in Malaya Business Insight.
