SMC unit pursuing P89 billion hydropower projects

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May 11, 2025 | 12:00am

MANILA, Philippines —   The power arm of tycoon Ramon Ang-led San Miguel Corp. is spending close to P89 billion to build two massive pumped storage hydropower (PSH) projects in Pangasinan and Benguet.

San Miguel Global Power Holdings Corp. (SMGP) has proposed the development of the P46.29-billion San Roque West (SRW) PSH and the P42.37-billion San Roque Lower East (SRLE) PSH.

Each facility has a potential installed capacity of 800 megawatts (MW), SMGP said in separate filings to the Department of Environment and Natural Resources.

Both projects comprise an upper reservoir, power waterways, a powerhouse and access roads and tunnels.

With a project area of 112.94 hectares, the SRW PSH facility will straddle the San Roque town in San Manuel, Pangasinan and the Ampucao town in Itogon, Benguet.

The SRLE PSH facility, meanwhile, will cover 123.63 hectares across the San Felipe East town in San Nicolas, Pangasinan and the Dalupirip town in Itogon.

SMGP unit San Roque Hydropower Inc. secured the green light from the Department of Energy in 2014 to study the 400-MW SRLE. The capacity was eventually doubled to 800 MW following further studies.

PSH plants can function as energy storage facilities to complement generation from variable renewable sources while also injecting power into the grid to augment supply.

SMGP said the integration of PSH as a “grid-balancing solution” is critical for the Philippines, given the expected increase of solar and wind capacity through the government’s green energy auction program.

“With the country’s shift toward variable renewable energy, challenges such as intermittency and mismatches between supply and demand arise, particularly during peak periods,” it said.

Solar panels only generate electricity when the sun is shining, while wind turbines only operate when there is sufficient wind.

“PSH offers significant advantages, including the ability to store large amounts of energy and rapidly respond to fluctuations, thus enhancing grid stability,” SMGP said.

SMGP emerged as the country’s biggest power producer in terms of capacity at the end of last year with a national market share of 22.44 percent, equivalent to a capacity of about 6.08 million kilowatts.