LT Group's Absolut Distillers turns on 2-MW solar power plant

Taking advantage of the financial incentives offered by the government for renewable energy, Absolut Distillers Inc. (ADI) has set up its first 2-megawatt solar power plant in Batangas.

 

Led by Energy Secretary Carlos Jericho Petilla, Lucio Tan Group chairman and CEO Lucio Tan switched on the solar power facility Wednesday amid revelry and fireworks.

 

ADI general manager and Tanduay Distillers Inc. vice president for distillery operations Gerardo Tee said the project is the Lucio Tan Group’s first venture in renewable energy.

 

“Over the years, we’ve been successful in ensuring that every step of the process in our distillery complies with industry standards of sustainable development. By venturing into solar power, we are strengthening our commitment to mitigate the effects of climate change on a more meaningful scale,” he said.

 

Tan said the facility is the first of renewable energy facilities his conglomerate is eyeing to build.

 

“This 2-MW facility is just the beginning. We see even greater possibilities,” he said.

 

6-year payback

 

The facility, composed of 8,160 panels, occupies about 27,000 square meters within an industrial area where the 17-hectare ADI plant in Lian, Batangas is located. The Lucio Tan Group invested P189 million in the project.

 

According to Tee, ADI will sell the power generated by the facility to the Batangas Electric Cooperative (Batelco) for P9.68 per kilowatt-hour, the rate approved by the Energy Regulatory Commission for solar energy under the Feed-In Tariff (FIT) scheme.

 

“Our business plan is to sell it and take advantage of the feed-in tariff so that magkaroon naman kami ng payback. We’re looking at around six years for the payback,” he said.

 

Energy Matters defines feed-in tariff as the “premium rate paid for electricity fed back into the electricity grid from a designated renewable electricity generation source like a rooftop solar panel system or wind turbine.”

 

Petilla said there is a race among companies to build renewable energy facilities to qualify for the P9.68/kWH FIT rate for those that would meet the 500-MW quota set by the Department of Energy.

 

Companies that do not meet the quota may still qualify for the FIT scheme under a second quota, set at 450MW, but the amount they will receive will be much lower.

 

FIT incentive

 

Petilla estimates a 0.0407 per kWh FIT allowance to be reflected in the end users’ bills as solar energy is utilized.

 

“The incentive for these companies [to venture into renewable energy] is they will be paid for every energy they produce… Yes, there’s a cost for consumers but we have to balance this with the abundance of coal plants we have. We can’t rely solely on coal,” he said.

 

As a result of the DOE’s aggressive push for renewable energy, Petilla said the energy generated from wind has grown to around 400MW by the end of summer from 39MW before he assumed office in 2012. 

 

He also estimates the power generated from solar energy facilities growing to 200MW from virtually zero two years ago.

 

ADI’s solar power generation plant was constructed using Canadian technology and has a rated efficiency of 16 to 17 percent. 

 

Aside from being the first solar power plant in Batangas, ADI's facility boasts of being the first to be established by the Lucio Tan Group. – VS, GMA News