SAN Miguel Corp. (SMC) said on Tuesday it has shortlisted two Asian firms for a possible renewable energy (RE) venture as it sets out to transform power unit SMC Global Power Holdings Corp. (SMC Global) into a highly diversified energy company.
SMC president and COO Ramon Ang said one of the two Asian firms could be the strategic and technical partner of SMC Global on its green venture, but he did not disclose the name of the companies.
Ang noted that the Philippines has one of the highest electricity rates in Asia, and with subsidies to renewable energy through the feed-in tariff (FiT) given to RE producers, power rates have become even more expensive.
“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,” he said.
The country’s FIT system guarantees compensation for renewable energy producers through a long-term fixed price over a 20-year spread, a subsidy that is shouldered by power consumers.
Ang said that as the global renewable sector matures, the cost of RE technologies worldwide drops correspondingly.
“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.
He explained that the company has formed a team that will conduct researches on, and develop solutions across, the clean energy sector as it affects the consumers and the environment.
“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 added.
SMC Global Power is currently the largest independent power producer in the country by installed capacity, employing a mix of renewable and non-renewable energy sources to generate power that is reliable, affordable and sustainable. .