San Miguel Global Power Holdings Corp. (SMGP), established in 2010, is a wholly-owned subsidiary of San Miguel Corporation, one of the largest and most diversified conglomerates in the Philippines. With a diverse energy portfolio that includes natural gas, coal, hydroelectric power, and battery energy storage systems (BESS), SMGP plays a critical role in providing stable, reliable, and affordable energy to meet the country’s growing demand. Its operations emphasize sustainability and innovation, positioning SMGP as a key driver in advancing the nation’s energy sector and fostering responsible business growth.
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Building a Strong and Diversified Energy Portfolio
Since its inception, SMGP has pursued strategic acquisitions and greenfield projects to expand its energy portfolio. The company initially entered the power industry by acquiring rights to administer the output of Independent Power Producers (IPPs) before developing its own greenfield projects, including the Malita and Limay Power Plants, which have become key contributors to the national energy grid. SMGP further strengthened its position through investments in major assets such as the Angat Hydropower Corporation, complementing its portfolio of natural gas and coal-fired power plants. These strategic initiatives have positioned SMGP as one of the largest power companies in the Philippines, capable of supplying both baseload and peak energy demands.
Commitment to Sustainability and Decarbonization
SMGP’s commitment to sustainability is guided by its Environmental, Social, and Governance (ESG) roadmap and the Collaborative Action for Resilience-focused Business Enterprise (CARE) Pathways. These frameworks outline the company’s strategies for decarbonization, renewable energy integration, and reducing environmental impact. SMGP aligns its sustainability vision with San Miguel Corporation’s long-term goals of achieving net-zero emissions by 2050 and establishing a circular economy by 2040. The company goes beyond standard regulatory compliance by implementing programs that promote sustainable resource use, lower greenhouse gas emissions, improve air quality, and optimize energy consumption.
Advancing Energy Storage for Grid Stability
A core component of SMGP’s environmental strategy is its Battery Energy Storage System (BESS) projects, which are instrumental in stabilizing the national grid and integrating more renewable energy. BESS technology enables the efficient storage of energy from various sources, allowing SMGP to provide ancillary services such as frequency and voltage regulation, ensuring grid stability and improved power quality. By 2024, SMGP aims to achieve a 1,000-megawatt BESS capacity, making it the largest energy storage network in Southeast Asia. The scalability of BESS technology allows SMGP to support the grid while minimizing environmental impact, positioning it as an essential solution for sustainable energy development.
Driving Community Development and Environmental Conservation
SMGP extends its sustainability efforts beyond energy generation to include Corporate Social Responsibility (CSR) programs that support local communities and environmental conservation. Through the “Masaganang Negosyo, Masaganang Buhay” program, the company empowers local entrepreneurs with capacity-building initiatives and small business support. Additionally, the SMGP Tertiary Scholarship Program provides educational opportunities to underserved communities, helping uplift lives through access to quality education.
The company’s Project 747, which continued through 2023, has successfully planted over 6.5 million seedlings across 2,097 hectares of land, rehabilitating forests surrounding its power plants and BESS facilities. SMGP works closely with local People’s Organizations to co-manage these projects, ensuring community involvement in environmental protection. The company also promotes aquatic ecosystem restoration through its Adopt-a-River program, which focuses on riverbank reforestation to prevent soil erosion and preserve water quality. These high-impact environmental initiatives reflect SMGP’s commitment to a greener future.
Leading the Transition to a Low-Carbon Future
SMGP employs carbon accounting practices aligned with the Greenhouse Gas (GHG) Protocol to ensure accurate emissions disclosures and continuous sustainability improvements. The company is committed to increasing energy efficiency, optimizing its energy mix, and achieving a renewable energy share of 35% by 2030 and 50% by 2040. It is also investing in advanced technologies such as carbon capture, utilization, and storage (CCUS) to support the transition to a low-carbon energy sector while significantly reducing its environmental footprint.
Powering Progress with a Reliable and Competitive Energy Supply
With an installed capacity of 4,789 megawatts as of December 2023, SMGP operates some of the most advanced power plants in the Philippines. Its portfolio includes baseload and peaking plants powered by coal, natural gas, and renewable energy, ensuring a competitive energy supply while maintaining grid reliability. This capability is further strengthened by its BESS facilities, which enhance efficiency and facilitate the seamless integration of renewable energy into the grid.
A Responsible Energy Leader for the Future
SMGP’s leadership in the power industry is evident in its commitment to corporate governance, sustainability, and responsible business practices. The company has adopted a structured and comprehensive approach to implementing its ESG roadmap, integrating environmental considerations into its operational strategies and long-term business activities. Through its ongoing sustainability initiatives and innovation-driven approach, SMGP continues to power progress, improve lives, and build a sustainable future for generations to come.
