THE renewable energy unit of Aboitiz Power Corp. (AboitizPower) is expanding its agreement with the Philippine Geothermal Production Company, Inc. (PGPC) for the drilling and supply of steam in its Tiwi and Batangas-Laguna power plants.
In a disclosure to the stock exchange, AboitizPower said AP Renewables, Inc. (APRI) has signed a Geothermal Resources Supply and Services Agreement (GRSSA) with PGPC on Friday to ensure the long-term operations of the former’s renewable power plant facilities.
Under the deal, PGPC will be drilling 12 new production wells in six years to increase the steam availability of APRI’s 458-megawatt (MW) MakBan geothermal power plant across Batangas and Laguna as well as the 289-MW Tiwi Geothermal Power Plants in Albay. This will increase the facilities’ steam availability by 20%.
APRI operates the two power plants, while PGPC acts as steamfields operator and geothermal resource provider.
“APRI is committed to deliver reliable and renewable power to our customers. This agreement secures the continued viability of the power plant facilities allowing us to deliver that commitment,” APRI President and Chief Operating Officer Alexander B. Coo said in a statement.
“For three years now, the Philippines has been ranked number 1 in environmental sustainability in the World Energy Council’s (WEC) Energy Trilemma report because we continue to maximize the potential of RE (renewable energy) in the country, we hope to continue that momentum,” Mr. Coo added.
For his part, PGPC President Napoleon L. Saporsantos, Jr. said the agreement will support the country’s long-term energy needs.
“Renewable baseload energy is critical for the Philippines to power its economic growth. The sustainable operation of the geothermal steamfield is our way of supporting the country’s long-term energy needs through the supply of reliable, clean, and indigenous energy resources,” AboitizPower quoted Mr. Saporsantos as saying in a statement.
The Tiwi-MakBan power plant is one of the largest geothermal facilities in the country. It was first commissioned back in 1979, and was operated and managed by the National Power Corp., while the PGPC operated the steamfields.
AboitizPower then took over operations in 2009.
AboitizPower’s net income attributable to equity holders of the parent slipped by 6.2% to P9.1 billion in the first half of 2018, amid a 15% increase in gross revenues to P65.03 billion during the period.
Shares in AboitizPower were unchanged at P36.90 each at the Philippine Stock Exchange on Friday. — Arra B. Francia