San Miguel Corp. is diversifying into renewable energy sources through unit SMC Global Power Holdings Inc.
The company has shortlisted two Asian firms, one of which could be its strategic and technical partner on the green venture it declined to disclose.
San Miguel said in a statement the expansion would relieve electricity consumers from higher bills resulting from the feed-in tariff subsidies extended to renewable energy producers.
San Miguel president and chief operating officer Ramon Ang said as the global renewable sector matures, the cost of RE technologies worldwide drops correspondingly.
San Miguel has focused so far in putting up base load power plants. It is nearing completion of the first phase of its coal plants in Bataan and Davao provinces and seeking similar projects in Mindanao and the Visayas.
“It’s about time we find a balance between promoting clean energy and securing the country’s energy needs without making consumers bear the cost of a punishing subsidy for years in favor of RE producers,” Ang said
The feed-in tariff system guarantees payment for renewable energy producers through a long-term fixed price over a 20-year spread, a subsidy that is shouldered by consumers.
The Philippines has one of the highest electricity rates in Asia. Consumers are also paying additional rates through the feed-in tariff allowance.
“We have a responsibility as a major power producer to do our share in pushing for a sustainable clean energy economy, but it has to be done in the most efficient way possible for the consumers. With critical mass and better technology, I believe we should be able to strike the perfect balance between renewable and non-renewable sources in terms of the country’s energy mix,” Ang said.
San Miguel owns 60 percent of the 218-MW Angat hydro power plant. It is also the independent power producer administrator of the Ilijan natural gas plant in Batangas and the San Roque hydro stationt in Pangasinan province.
Ang said the company had formed a team that would conduct researches on and develop solutions across the clean energy sector.
“We are challenging ourselves to be able operate in the most environmentally responsible manner while taking into consideration energy security and affordability to the consumers. Initiatives to achieve this objective are under way and I’m proud to say, we are making good headway,” he said.