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Looking ahead to this year’s goal of boosting its performance in the energy sector, Consunji-led Semirara Mining and Power Corp. (SMPC) plans to continue its exploration of the 700-megawatt (MW) Saint Raphael Generation Corp. (SRGC) project.
During the company’s annual stockholders’ meeting on Monday, May 6, SMPC Chairman and Chief Executive Officer (CEO) Isidro A. Consunji said they will focus on navigating market pressures and exploring new growth opportunities following a challenging year.
“We are revisiting our options and project studies for Saint Raphael Generation Corp. considering the National Grid Corporation of the Philippines’ (NGCP) recent updates to its 2024 to 2050 transmission development plan,” he said.
The Saint Raphael power project in Batangas, valued at approximately $1.4 billion, or around ₱77.7 billion, was exempt from the Department of Energy’s (DOE) coal moratorium.
SMPC’s interest in the project was first announced last year, with its President and Chief Operating Officer (COO) Maria Cristina Gotianun stating that they would only move forward once NGCP completes the necessary transmission facility.
Without it, the project may be unable to provide additional supply to the Luzon grid.
With renewed interest in reviving the Saint Raphael project, analysts expect coal to remain dominant in the country’s energy landscape.
Juan Paolo Colet, managing director at China Bank Capital Corp., noted that while coal prices have declined since 2022, the project could help address the country’s rising energy demand.
“If this pushes through, it would add significant energy generation supply to the Luzon grid and potentially lower electricity prices. The viability of the project appears to have improved,” he told Manila Bulletin.
“NGCP is also reportedly on track to complete its transmission capacity expansion in Southern Luzon. At the same time, energy demand is expected to remain robust as we see further economic growth,” Colet added.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), agreed that the coal plant acquisition revival could pose lower costs; however, there could be risks that may outweigh the benefits.
“This could increase the supply and lower the cost for various coal-fired power plants still allowed to operate in the country… However, regulators locally and globally have discouraged new coal-fired power plants in recent years to increase compliance with environmental, social, and governance (ESG) standards to reduce carbon emissions or footprint for more companies and governments in the coming years or decades,” Ricafort explained.
According to Ricafort, these carbon-emission reduction efforts have been around even prior to the pandemic as a way to welcome more renewable energy (RE) integration, including wind, solar, geothermal, and hydropower.
“The Asian Development Bank (ADB) even has financing assistance for coal-fired power plants that wish to convert to renewables,” he shared.
In 2020, SMPC terminated its joint-venture deal with SRGC and Meralco PowerGen Corp. (MGen) to build the coal plant, located in Calaca, Batangas.
