Maharlika Investment Corp willing to 'support' NGCP through investments: Consing
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Maharlika Investment Corp willing to 'support' NGCP through investments: Consing
Jessica Fenol,
ABS-CBN News
Published Jan 08, 2024 03:04 PM PHT
MANILA – The Maharlika Investment Corp is willing to “help” the country’s main grid operator to upgrade its systems through investments, its President and CEO Rafael Consing Jr said.
MANILA – The Maharlika Investment Corp is willing to “help” the country’s main grid operator to upgrade its systems through investments, its President and CEO Rafael Consing Jr said.
The National Grid Corp of the Philippines likely has funds for upgrades but Consing said it may not be enough due to the rapid increase in the generation of renewable power that’s coming in, which in turn causes volatility in the grid.
The National Grid Corp of the Philippines likely has funds for upgrades but Consing said it may not be enough due to the rapid increase in the generation of renewable power that’s coming in, which in turn causes volatility in the grid.
"Kung titingnan po natin yung transmission ng grid, when you got significant amount of renewable power going into the grid that creates volatility in NGCP. There's a need to ensure that significant amount of auxiliary services to back up the grid and that requires a significant amount of capital, and that's where MIC can actually help," Consing said in in an interview with CNN Philippines.
"Kung titingnan po natin yung transmission ng grid, when you got significant amount of renewable power going into the grid that creates volatility in NGCP. There's a need to ensure that significant amount of auxiliary services to back up the grid and that requires a significant amount of capital, and that's where MIC can actually help," Consing said in in an interview with CNN Philippines.
"I think there is capital out there for them to be able to deploy but I don't think it's enough and that's basically where we can come in and provide support," he added.
"I think there is capital out there for them to be able to deploy but I don't think it's enough and that's basically where we can come in and provide support," he added.
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House Speaker Martin Romualdez earlier floated the idea that the MIC should consider investing in NGCP following the massive blackout that hit Panay Island.
House Speaker Martin Romualdez earlier floated the idea that the MIC should consider investing in NGCP following the massive blackout that hit Panay Island.
Consing said that although the MIC has yet to “engage” with the NGCP, energy is among the “central investment themes” of the country’s first sovereign and development fund.
Consing said that although the MIC has yet to “engage” with the NGCP, energy is among the “central investment themes” of the country’s first sovereign and development fund.
He added that the MIC intends to look at the “entire ecosystem” including transmission, generation, distribution and even new technologies.
He added that the MIC intends to look at the “entire ecosystem” including transmission, generation, distribution and even new technologies.
Consing explained that the NGCP needs a “substantial amount of capital” to upgrade. He also cited the huge potential of the proposed investment.
Consing explained that the NGCP needs a “substantial amount of capital” to upgrade. He also cited the huge potential of the proposed investment.
“NGCP is a very profitable organization, it is the backbone of our electricity ecosystem. It generates a significant amount of cash flow,” Consing said.
“NGCP is a very profitable organization, it is the backbone of our electricity ecosystem. It generates a significant amount of cash flow,” Consing said.
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But the official said NGCP must also be willing to accept their investments and that the valuation of the investment should be determined first.
But the official said NGCP must also be willing to accept their investments and that the valuation of the investment should be determined first.
In a separate interview, the NGCP said "funding was never really an issue" for the firm. When asked about its openness to the proposal, NGCP spokesperson Cynthia Alabanza said “we'll leave that up to the Speaker and the chair of the Maharlika fund to do what they think is best.”
In a separate interview, the NGCP said "funding was never really an issue" for the firm. When asked about its openness to the proposal, NGCP spokesperson Cynthia Alabanza said “we'll leave that up to the Speaker and the chair of the Maharlika fund to do what they think is best.”
Forty percent of NGCP is owned by the State Grid Corporation of China, while the remaining 60 percent is Filipino-owned.
Forty percent of NGCP is owned by the State Grid Corporation of China, while the remaining 60 percent is Filipino-owned.
The recent blackout that disrupted power in Panay Island prompted President Ferdinand Bongbong Marcos Jr to order the Energy Regulatory Commission (ERC) to expedite the rate reset review of the NGCP. It also urged the NGCP to complete pending infrastructure projects.
The recent blackout that disrupted power in Panay Island prompted President Ferdinand Bongbong Marcos Jr to order the Energy Regulatory Commission (ERC) to expedite the rate reset review of the NGCP. It also urged the NGCP to complete pending infrastructure projects.
Meanwhile, the MIC said aside from the NGCP it is also exploring other investment opportunities particularly projects under the Public-Private Partnership which are already approved by the NEDA board.
Meanwhile, the MIC said aside from the NGCP it is also exploring other investment opportunities particularly projects under the Public-Private Partnership which are already approved by the NEDA board.
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