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MANILA - The power generation subsidiary of GT Capital Holdings Inc. is looking to expand in Luzon as it eyes hydro power plants because of the acceptable feed-in tarrif rates.
Jaime Azurin, senior vice president of Global Business Power Corp., told reporters that the company intends to put up capacities of approximately 200 to 300 megawatts in three to four areas in Luzon and the Visayas.
This will be a combination of conventional and renewable energy sources, particularly hydro facilities.
"We are also looking at renewable and we're looking at hydro because if you will look at the rates of hydro, it is at par with coal. We have no plans of going to the higher end because it will increase prices," Azurin said.
In July, the Energy Regulatory Commission approved the FIT for green power generation projects pegged at P5.90 per kilowatt-hour for run-of-river hydropower, P6.63 for biomass, P8.53 for wind and P9.68 for solar.
The FIT is the electricity charged to every renewable energy source and guarantees payment to developers.
Global Business Power acknowledged that entering the Luzon market will be a challenging venture given the presence of big players like the Aboitiz, San Miguel and Lopez groups.
"We have to start small using the renewable but we have big plans in coming to Luzon. A lot of the big players are almost at their capacity limits so there will be room for a new player to come into Luzon. Who that will be? We're hoping we could be that one," said Azurin.
The power facilties will come on stream in the next three to five years ahead of a possible power shortage in Luzon as early as 2017.
Global Business Power is now the largest power producer in the Visayas with a combined capacity of 627 megawatts from nine power plants.
The additional capacity expansion will support Global Business Power's plan to go public once it adds another 300 megawatts of capacity, Azurin said.
Last month, the company said it may go public next year after GT Capital, which is the holding firm of George Ty that also controls Metropolitan Bank and Trust Co., AXA Life Insurance Corp., Toyota Motor Philippines Corp. and Federal Land Inc.
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