KUALA LUMPUR, Malaysia – Aboitiz Power Corp. is actively engaging with potential engineering, procurement, and construction (EPC) contractors for the expansion of its Therma Visayas Inc. (TVI) coal-fired power plant in Toledo, Cebu, that will add 150 megawatts (MW) more capacity to its portfolio.
Ronaldo Ramos, chief operating officer of Aboitiz Power Thermal, announced the development at the Enlit Asia 2024 energy conference in Kuala Lumpur. “We’re in discussions with the EPC contractor to ensure they can meet our operational timeline, aiming for completion before the end of 2027,” Ramos said. The timeline aligns with projected increases in demand across the Visayas, making the expansion crucial for maintaining grid stability.
In addition to contractor negotiations, Aboitiz Power is seeking financing options for the project, aiming to partner with banks familiar with its operations. Fundraising efforts are expected to start in the fourth quarter this year, with First Metro Investment Corp. and BDO Unibank Inc. Trust and Investments Group likely to return as financial backers, having previously supported the initial two units of TVI, which currently boasts a total capacity of 340 MW.
Ramos underscored the Philippines’ pressing need for baseload power, even as the country transitions toward renewable energy sources. “Our goal is to achieve a balanced mix of 50:50 between renewable and non-renewable energy by 2040,” he said, emphasizing that the journey to net zero will be a multi-decade effort that requires careful planning and execution rather than rigid timelines.
For the current fiscal year, Aboitiz Power has allocated a capital expenditure budget of ₱73 billion, significantly increasing from ₱26 billion in 2023. The company is also pursuing a growth strategy aimed at adding 3,700 MW of new renewable energy capacity by 2030, bringing its total renewable capacity to 4,600 MW.
As Aboitiz Power advances its expansion plans, it remains committed to balancing the need for reliable energy with its long-term sustainability goals, positioning itself as a key player in the Philippines’ evolving energy landscape.
