[ad_1]
San Miguel to phase out pending coal power plants following government ban
Ian Nicolas Cigaral (Philstar.com) – October 28, 2020 – 12:10 pm
Manila, Philippines (UPDATE 1:20 pm, October 28) – San Miguel Corp. is abandoning future plans to build coal power plants after the government imposed a moratorium on coal generators.
When asked if the country’s largest conglomerate would go ahead with its coal power plans, Ramon Ang, president and chief operating officer, said. Philstar.com in a text message: “No problem. We always follow the rules. “He did not elaborate.
The energy department will not accept applications for the construction of new coal-fired power plants, a policy change that also came about by allowing 100% foreign ownership in geothermal power plants worth at least $ 50 million.
The moratorium greatly affects San Miguel’s power ambitions. As of July, data from the energy department showed that the company’s subsidiaries intend to build coal-fired power plants with a cumulative capacity of 3,628 megawatts. That represented 37% of the 9,803 MW coal projects that are being explored, but have not yet been submitted to the government for approval.
The disaggregated data showed that SMC Global Power Holdings Corp. was planning coal projects with a capacity of 2,400 MW in Luzon, 600 MW in Visayas and 628 MW in Mindanao.
Energy stocks rise
On the other hand, Aboitiz Power Corp. said that the government order will not affect the long-term plans of the company. “AboitizPower’s growth strategy for the next 10 years remains the same, which is to significantly grow our renewable energy portfolio, Cleanergy,” the company said in a statement.
“We remain committed to achieving our goal of a more balanced energy mix or near 50:50 clean and thermal power capacity by 2030,” he added.
Energy stocks were among the most traded stocks on Wednesday, as investors took in the government’s policy changes. As of 11:34 am, First Gen Corp.’s shares were trading 10.42%, while Ayala Corp.’s AC Energy Philippines Inc. was up 0.52%.
“It is a bold and forward-thinking policy … AC Energy fully supports (Energy) Sec. (Alfonso) Cusi and we will continue to increase our investments in renewable energy in the country,” said John Eric Francia, President and CEO of AC Energy, it’s a statement. The company previously announced plans to fully offload coal investments by 2030.
The First Generation led by López did not respond to a request for comment.
Editor’s Note: Added statements by Eric Francia of AC Energy
[ad_2]
