Power Generation Cleanergy

AboitizPower PH energy goal: dependable power while increasing clean energy capacity

January 08, 2025

In a power system where fossil fuel still dominates, accounting for more than 75 percent of gross electricity production, the Philippines is strategically bridging the gap, embarking on an energy transformation that will gradually see renewables take up half of built capacity in the next decades.

The 2024 Climatescope report by BloombergNEF identified the Philippines as the second-most attractive emerging market for renewable energy investment, scoring the highest on fundamentals, which take into account clean energy policies, as well as operating rules and incentives.

Against this backdrop, Aboitiz Power Corporation (AboitizPower) is doing its part, helping the country harness these indigenous renewable energy sources while continuing to responsibly operate its existing baseload and peaking plants to address growing electricity demand.

"We understand how the Philippine energy transition is not a simple switch, but a carefully managed transformation that will transpire over a broad period of time," said AboitizPower Vice President for Corporate Affairs Suiee Suarez. "Our approach is about helping provide consistent and dependable power while progressively increasing our clean energy capacity."

Faced with the reality that fossil fuel power plants cannot simply be turned off overnight due to the lack of viable alternatives, immediate power needs must be balanced with long-term goals to ensure reliable and continuous power, waiting for the opportune moment to take advantage of better alternatives once they become more economical and affordable. This is where AboitizPower's nuanced strategy comes into sharp focus — an approach that acknowledges current limitations while steadily building the energy system of the future.

The company made significant strides from 2023 to 2024, energizing a total of 512 megawatts of clean energy capacity across diverse projects. From the non-arable land repurposed to solar farms in Pangasinan to a binary geothermal plant in Albay, AboitizPower is methodically expanding its renewable energy portfolio.

“AboitizPower’s 10-year growth strategy underscores our focus on diversifying our power generation assets,” Suarez said. “While these new investments will come into full fruition in the coming years, the progress made in the past months is encouraging, especially with half a gigawatt of installed renewable energy capacity being energized.”

With a 10-year growth strategy of building 3,600 megawatts of new renewable energy capacity by 2030, AboitizPower is closely aligned with the government's target of achieving 35 percent renewable energy in the national mix by the same year.

Clean energy across the archipelago

The company's recent clean energy achievements showcase a diverse and strategic approach:

• The 94-MWp solar facility in Cayanga, Bugallon, Pangasinan
• The 24-MW Magat battery energy storage system in Isabela through SN Aboitiz Power
• The 159-MWp solar plant in Laoag, Pangasinan
• The 17-MW binary geothermal power plant in Tiwi, Albay
• The 45-MWp solar project in Armenia, Tarlac
• The 173-MWp solar project in Calatrava, Negros Occidental

"Each project is a piece of a larger puzzle," Suarez said. "While most of the builds are solar capacities, there is also diversity in AboitizPower’s renewable energy investments, encompassing geothermal, energy storage systems, and wind — all of which will have distinct roles to play in the energy system of the future."

Aside from utility-scale projects, AboitizPower also offers distributed energy solutions, developing rooftop photovoltaic (PV) solar installations for large commercial and industrial businesses. This approach transforms traditional consumers into "prosumers" capable of generating and potentially selling excess electricity to the grid. AboitizPower Distributed Renewables, Inc. (APx), a wholly-owned unit engaged in the distributed energy space, recently installed 97.09-kWp solar panels for Engkanto Brewery’s facility in Carmona, Cavite. The project is expected to help reduce carbon footprint and reliance on conventional energy sources.

With over 1,000 MW of additional projects in development, AboitizPower is demonstrating that the transition to sustainable energy is not about abrupt replacement, but strategic evolution. By maintaining a balanced portfolio that includes both renewable and traditional energy sources, AboitizPower helps ensure energy security while progressively increasing clean energy capacity.

"Our purpose of Transforming Energy for a Better World is long-term," Suarez said. "We're co-building the power generation infrastructure that the Philippines will rely on for decades to come, so it really should be reliable, sustainable, and forward-looking."

This article is written by Annelle Tayao-Juego of the Philippine Daily Inquirer.