Meralco sets additional P70-B capital investment

  • Page Views 442
  • As its parent firm, Manila Electric Company (Meralco) will be rolling out up to P70 billion worth of capital spending for projects that will chiefly reinforce its distribution network and other ventures it will be engaging in at the utility segment of the business, according to company president and chief executive officer Oscar S. Reyes.

    He noted that the next batch of capital expenditures will be for its next regulatory reset in 2019 to 2023; with him emphasizing that average capital outlay on a two-year period is estimated at P35 billion.
    “If you extrapolate, that will be P70 billion for four years,” Reyes said, although he emphasized that the capital needs of their distribution network will depend on eventual load growth being served by their system.

    That level of spending is almost parallel to the P73 billion that the company had budgeted over regulatory years July 2015 to June, 2019.

    The next round of investments will go along with the 50-year corporate life extension (starting May 7, 2019) that the company has approved on its annual stockholders meeting on Tuesday (May 29).

    Meralco chairman Manuel V. Pangilinan said the extended corporate life has yet to be filed with the Securities and Exchange Commission (SEC) and subject to the approval of the company’s stockholders.

    On the power generation front, Meralco and its power generation subsidiary are eyeing several brownfield and greenfield assets – including possible buy into the 50-percent thermal capacity of the Ayala group.

    When asked on that particular prospect, Pangilinan indicated that the company’s interest is “ocean deep”, but he has not elaborated as to which numbers they have been looking at.

    Meralco PowerGen President and CEO Rogelio L. Singson further asserted that he had already seen the numbers, but he cannot further comment “because we have non-disclosure agreement.”

    Singson has been more forthright though on the company’s targeted investments on the solar space – to the tune of 500 to 600 megawatts of capacity into years 2021-2022. “In the next 3 to 4 years at least 500 to 600MW (of solar). It should be at least 20 to 30-percent of the portfolio of MGen,” he stressed.

    Given the intermittent nature of solar, the MGen chief executive further noted that battery storage will be the ‘coupling technology’ that they shall be leaning on – primarily the prospective partnership deal they have been pursuing with Japanese multinational conglomerate Hitachi Ltd.

    “We’re hoping that battery will come into play within the next five years. We’re seriously looking at development in battery,” Singson asserted.

    At this stage though, he emphasized that the “cost proposition” for battery is still comparatively expensive and the capacities still at relatively smaller magnitude. “It is still in the development stage as far as battery is concerned. They’re still very small capacities, the biggest being in the order of just 2.0 megawatts,” he said.

    M. Velasco, mb.com.ph

    Share

    New Posts Recently publish post More

    • 20 August 2018
      19 hours ago No comment

      Toni Gonzaga recalls hosting tip she learned from Eat Bulaga

      Former Dabarkad Toni Gonzaga still applies the lessons she learned while hosting the long-running noontime show Eat Bulaga. Toni recently appeared in the latest vlog entry of her sister Alex Gonzaga in order to read harsh comments about them. A netizen using the handle @hiponiahypoe wrote: “sorry i dont ...

    • 18 August 2018
      3 days ago No comment

      Caluag named PH standard-bearer

      COMEBACKING Fil-Am rider Daniel Caluag will have two huge roles in the 18th Asian Games in Indonesia. Aside from defending his Asian Games men’s BMX crown, Caluag was given the honor of being the country’s standard-bearer during the opening rites of the meet on Aug. 18 at the sprawling Bung Karno ...

    • 18 August 2018
      3 days ago No comment

      PBA commissioner Willie Marcial, ROS owner Raymond Yu, coach Yeng Guiao consider members of PH Five Heroes

      A day after getting the imprimatur to represent the country in the coming Asian Games, coach Yeng Guiao and members of the Philippine basketball team met for the first time on Monday to start their short but extenive preparations at the Meralco gym in Pasig City. Only light skirmishes were ...

    • 18 August 2018
      3 days ago No comment

      US First Lady, celebs, NBA players, defend LeBron vs Trump’s insults

      United States First Lady Melania Trump, celebrities, NBA players and even media men came in defense of LeBron James against insulting statements after from American President Donald Trump. Melania Trump said, The Guardian reported from New York and New Orleans, “James appeared to be doing ‘good things on behalf of our ...

    • 16 August 2018
      4 days ago No comment

      Bela, JC are back to break hearts

      A year after their first blockbuster team-up via the heartbreaking movie, “100 Tula Para Kay Stella,” Bela Padilla and JC Santos reunite with director Jason Paul Laxamana to tell a different kind of love story in “The Day After Valentine’s,” an official entry to the 2018 Pista ng Pelikulang ...

    %d bloggers like this: