Aboitiz eyes ventures in renewable energy

MANILA, Philippines — The Aboitiz Group is looking to have more concrete developments for its overseas expansion in its power business in the next six to 12 months as it scouts for partners and projects in Southeast Asian countries, a ranking company official said.

Aboitiz Equity Ventures Inc. (AEV) CFO Manuel Lozano said the group is continuously looking into possible renewable energy (RE) investments in three to four countries in the region.

These countries include Indonesia, Vietnam, Myanmar and Malaysia.

“We have development teams focusing on renewables here and abroad. They’ve been very busy… we’re still at that stage. Hopefully, over the next six to 12 months, some of them will start to become more concrete,” Lozano said.

“We’re actually open to all kinds of technology…so we’re looking at solar, wind, hydro…at least the main opportunities we’ve found in those countries,” he said.

Among the countries being looked at, is Vietnam given its high demand for power and forecast of power shortage moving forward.

“The government is trying to push for more power in general, but I think, more specifically more renewables,” he said.

In particular, the Vietnamese government is pushing for a feed-in tariff (FIT) regime to attract investors.

Earlier, AEV and Aboitiz Power Corp. president and CEO Erramon Aboitiz said the power business is evaluating “a few deals” in Vietnam’s renewable energy (RE) sector.

The projects being eyed have a capacity of 50 to 100 megawatts (MW), are already in the permitting stage and already under construction to be able to meet the FIT deadline.

“We have to be ready and running by that time. Depending on what technology.  We have to be able to meet the 2021 timeline,” Aboitiz said.

AboitizPower already has a headstart in Indonesia after it partnered with SN Power and PT Energi Infranusantara to invest in PT Auriga Energi which will conduct the feasibility studies for the exploration and development of a potential 127-MW hydropower generation project along the Lariang River in Central Sulawesi, Indonesia.

By 2020, the company is targeting an energy capacity target of 4,000 MW. If any overseas project materializes, it will be on top of the 4,000 MW since the company is well off exceeding its target with the projects being completed here at home.

AboitizPower has investments in various thermal and renewable power generating facilities with a total net sellable capacity of 3,350 MW with its partners. Its Cleanergy brand amounts to 1,272 MW, 39 percent of its total net sellable capacity.

Once it completes its ongoing projects, the company will have a capacity of 4,500 MW.

AboitizPower also owns distribution utilities that operate in high-growth areas in Luzon, Visayas and Mindanao, including the second and third largest private utilities in the country.