MANILA, Philippines – Global Business Power Corp. (GBPC), a leading power supplier in the Visayas which is now controlled by the Pangilinan Group, expects to double its existing capacity of 850 megawatts by 2021.
Manuel V. Pangilinan, chairman of Metro Pacific Investments Corp., said the country needs more power plants because demand for power is increasing along with economic growth.
GBPC has an aggregate capacity of 852 MW of coal and diesel powered generating capacity, including the 150 MW expansion project which is expected to be operational later this year of which 70 MW is contracted to Meralco.
Bulk of the additional capacity will come from the planned 670 megawatt coal plant in La Union, GBPC’s first power plant in Luzon.
The plant has no ECC or environmental clearance certificate yet but officials expressed optimism the company would be able to obtain the certificate even as Environment Secretary Regina Lopez is known to be critical of coal plants.
MPIC president and CEO Jose Ma. Lim said GBPC was also looking at investing in renewable energy.
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In the first half of the year, GBPC sold 1,787 gwh of electricity, four percent higher than last year’s 1,721 gwh, owing to higher plant availability.
This translated to core income growth of 27 percent with fewer purchases from the Wholesale Electricity Spot Market to source power obligations to customers.
GBPC’s core income contribution to MPIC’s earnings amounted to P120 million, net of financing for the month of June.
Last May, MPIC acquired a 56 percent stake in GBPC for P22.06 billion following a strategic alliance with tycoon George Ty’s GT Capital Holdings Inc.
GT Capital then entered as a strategic investor in MPIC, acquiring a15.6 percent stake for P21.96 billion.