Aboitiz Power Corp. (AboitizPower) is allocating P50 billion for capital expenditures (capex) next year to help achieve its target of having 4,600 megawatts (MW) of clean energy, or 50 percent of its generation portfolio, by 2030.
AboitizPower CFO Juan Alejandro Aboitiz said the amount would be primarily spent for geothermal, solar, hydro, and wind power projects.
“The ballpark of about P50 billion is our capex. A lot of that is for the growth, expansion, and new projects,” said Aboitiz, who just assumed his new post last November 1.
He did not say how much was already spent for this year’s capex.
Funding will be sourced from internally-generated funds and borrowings. “We are always looking at different sources to finance our capex. Fundraising is always a critical component of growth,” he said, adding that 60 percent of the capex will be spent for new projects.
AboitizPower President Emmanuel Rubio said separately that the 17MW Tiwi Binary geothermal power plant in Albay is expected to produce its first output in January 2024.
The binary plant, which is being developed within the 1.5-hectare of land where the first and oldest geothermal power plant in the Philippines is located, broke ground early this year.
Geothermal energy comes from the earth’s heat and is produced by drilling production wells into the ground to tap high temperatures fluids from geothermal reservoirs.
He also mentioned the completion of the 94MW Cayanga-Bugallon solar facility in Pangasinan and the first phase of the 159-MW Laoag solar facility in Pangasinan in January or February of next year.
AboitizPower currently has a pipeline of about 1,000MW. It aspires to have a 50:50 balance between its RE and thermal portfolios by 2030.
At end-September, the power firm recorded a net income of P26.7 billion, up by 37 percent from the P19.5 billion recorded in the same period a year ago on the back of its stronger generation and distribution businesses.
“Looking ahead to 2024, we are optimistic about our prospects. Building upon the momentum of 2023, we look forward to diversifying our energy offerings further, focusing on sustainable practices and creating more technology-driven energy solutions.
Our pursuit of responsible business and meaningful collaborations will continue to propel us toward a prosperous and sustainable future,” added Rubio.