Lopez Group sticks to solar, wind power development sans FIT

MANILA, Philippines - The Lopez Group is sticking to solar and wind developments even without the feed-in tariff (FIT) incentives as part of its commitment toward a less carbonized energy future, a top company official said.

First Philippine Holdings Corp. (FPH) chairman and CEO Federico Lopez said the group is preparing to deploy solar and wind projects in the competitive arena, recognizing the fact the FIT regime is just a transitory mechanism to encourage early entry of renewables into the country’s power mix.

For solar, FPH president and COO Francis Giles Puno said the group is looking to double its capacity over the next 12 months through a combination of utility-scale and rooftop installations. Currently, the group has seven megawatts (MW) of solar energy in its portfolio.

“We’re looking at a combination because right now there’s no more FIT for solar, it’s already fully taken up. The tricky part is getting contracts for the output of the solar plants. In the meantime, what makes more sense at this stage is the rooftop solar for commercial and industrial users,” he said.

FPH is the holding firm of the Lopez Group for its interests in energy, real estate, manufacturing, construction and energy services.

Its power generation and energy-related businesses are housed under First Gen Corp., which operates Energy Development Corp. (EDC), its renewable energy arm.

Through EDC, the group is continuing discussions with the Gaisano Group to put up more rooftop installations in its malls, as well as with other developers with commercial buildings and industrial users.

“We’re also talking to other developers to install rooftop solar in their respective commercial buildings. It’s not only mall operators but also factories. We’re also doing that also in our industrial park where obviously there will be a lot of factories. And we hope that we’ll be able to install more solar rooftop in those factories,” Puno said.

In 2016, EDC announced its initial venture into solar rooftop development through a tie-up with Cebu-based retailer Gaisano Capital for its mall in La Paz, Iloilo City. The 1.03-megawatt (MW) project was completed in January 2017, considered as the largest solar rooftop system in Iloilo.

For wind projects, EDC is looking at developing a wind concession also in Iloilo.

“We have a total of about nine wind concessions. I would say that that’s (Iloilo) the one that has the best potential right now. There’s a lot more up north, where our burgos is, but constraint there is high voltage transmission. It’s pretty much maxed out today,” EDC president and COO Richard Tantoco said.

The renewable energy unit will be pushing ahead with the Iloilo wind project’s business development once market and construction conditions are favorable.

Different studies on the area show it can house around 40 to 54 wind turbines along the hilly slopes, the company official said.

“We’re analyzing constructibility issues, and obviously we have to wait for that point in time where the project can go ahead based on market conditions and what tariff is available in the market,” Tantoco said.