SM gets 110MW electricity supply from Aboitiz Power

By Myrna M. Velasco – August 10, 2019, 10:00 PM
from Manila Bulletin

The existing as well as forward mall and property developments of the Sy-owned SM Prime Holdings, Inc. will now partly depend on up to 110 megawatts (MW) of electricity supply that will be delivered to its operations’ network by Aboitiz Power Corp.

As indicated to the media by SM Prime Chief Finance Officer John Nai Peng C. Ong, the initial off-take from Aboitiz Power is at 50 megawatts for its operating malls and commercial buildings; then that will be shored up by additional 30 megawatts in the coming years; and a further ramp up of 30MW moving forward.

“Basically, the uptake now is 50MW. So it’s a build-up from that 50MW to another 30MW then to another 30MW,” Ong stressed.

The company executive added the current scale of supply procurement will serve the development portfolio of SM Prime in the two major islands first (Luzon and Visayas); but with a future target for eventual expansion in Mindanao.

In terms of demand growth in the malls and property developments of the Sy conglomerate, SM President Jeffrey C. Lim noted that it was an “opportunistic approach” on their part – and that is manifest with the ongoing expansion that they have been pursuing in Metro Manila as well as in other parts of Luzon and the Visayas.

“With our continuous expansion in the coming years, we need a power supplier that will enable us to support our existing and future partners with reliable and cost-effective power,” Lim said.

The SM Prime executives emphasized that their power procurement will be served through one of the retail electricity supplier (RES) units of the Aboitiz group – and that will be coming from the latter’s portfolio of power plants – not just from its thermal generating facilities but those that are also generated from renewable energy sources.

The parties noted that for the initial 50MW purchase in the supply contract, delivery had already started in April this year. The two companies had not disclosed the per kilowatt-hour cost of the contracted power capacities though, albeit Ong has indicated that the contract will surely yield cost savings for the SM group.

Emmanuel V. Rubio, chief operating officer of Aboitiz Power, asserted that their company is elated “to more than just provide reliable and cost-effective power supply” to the biggest chain of malls and property assets in the country.

Paramount to that, Rubio noted that Aboitiz Power will work with the Sy group “in looking for better solutions to support SM Prime’s thrust in providing its customers with top quality products and services.”