AboitizPower steps up digital shift with AI-driven analytics

CEBU, Philippines — Aboitiz Power Corp. is advancing its digital transformation strategy with the planned expansion of artificial intelligence (AI) and predictive analytics across its coal-fired power plants in Luzon and Visayas.

The rollout is part of  “Project Arkanghel,” an ongoing modernization program led by AboitizPower’s Transition Business Group (TBG) aimed at converting traditional baseload assets into intelligent, high-efficiency power plants.

The initiative forms a key component of the firm’s broader energy transition strategy, which seeks to balance immediate reliability needs with long-term sustainability goals.

“Phase one is already operational in Mindanao,” said Celso Caballero III, President and COO of AboitizPower’s TBG, referring to the 300 MW Therma South, Inc. facility in Davao City.

“We’re set to complete deployment in the Visayas within the year and will initiate implementation in Luzon in 2026,” noted Caballero.

The company’s 340 MW Therma Visayas plant in Toledo City, Cebu serves as another early adopter of the AI-backed platform. A Luzon deployment site has yet to be finalized.

At the core of “Project Arkanghel” is the establishment of a Unified Operations Center that integrates digital twin technologies, live asset monitoring, and early warning anomaly detection systems. These tools enable engineers to preemptively address system inefficiencies, optimize fuel consumption, and minimize unplanned outages—an operational leap particularly critical in an archipelago prone to natural disruptions and grid fragmentation.

AboitizPower has partnered with Thailand’s REPCO NEX Industrial Solutions, and is deploying AVEVA Predictive Analytics by Schneider Electric, to power its AI architecture.

The platform mines historical operational data and applies machine learning to flag potential risks, enabling smarter and faster engineering decisions.

“The application of AI in plant operations can lower heat rates, extend equipment life cycles, and reduce forced outages,” Caballero said, adding that more  efficient plants also mean fewer new plants are needed to meet growing demand.

The initiative comes at a crucial time for the Philippine energy sector, which continues to wrestle with rising electricity demand, vulnerability to climate-induced weather events, and the need to maintain affordable tariffs.

According to Caballero, AI integration is part of a larger resilience agenda that seeks to bridge short-term energy security gaps while laying the groundwork for a more flexible power grid.

The expansion of Project Arkanghel also signals AboitizPower’s pragmatic approach to energy diversification. While the company is a vocal proponent of renewables—claiming the largest renewable energy portfolio in the Philippines based on installed capacity under operational control—it also recognizes the role of modernized baseload assets in supporting grid stability.

“We see digital transformation and decarbonization as complementary,” said Caballero. “By optimizing the efficiency of our existing thermal assets, we create more runway for renewables to scale sustainably and reliably.”

The phased expansion of AI and data systems to Luzon and Visayas coal plants reflects a calibrated view of the country’s energy mix.

While AboitizPower continues to invest in solar, wind, hydro, and geothermal assets, its ongoing modernization of coal-fired facilities aligns with national goals to maintain baseload reliability during the transition.

With the country facing pressure to meet its growing energy demand—projected to triple by 2040—while cutting emissions, Caballero said AboitizPower’s twin-track strategy may offer a blueprint for other regional utilities balancing legacy infrastructure with digital innovation. — (FREEMAN)