Innovating for Impact
“SMGP is innovating energy solutions for sustainable development.”
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. SMGP operates a diverse energy portfolio, including natural gas, coal, hydroelectric power, and battery energy storage systems (“BESS”), providing stable, reliable, and affordable energy to meet the country’s growing demand. Its operations emphasize sustainable practices and innovation, positioning SMGP as a key player in advancing the nation’s energy sector and promoting responsible business growth.
Since its inception, SMGP has pursued strategic acquisitions and greenfield projects to build a strong and diversified energy portfolio. The company entered the power industry by acquiring rights to administer the output of Independent Power Producers (IPPs). It later developed its own greenfield projects, such as the Malita and Limay Power Plants, which have become significant contributors to the national energy grid. SMGP expanded its assets further through investments in major facilities like the Angat Hydropower Corporation, complementing its portfolio of natural gas and coal-fired power plants. These efforts have positioned SMGP as one of the largest power companies in the Philippines, capable of meeting baseload and peak energy demands.
The company’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 pathways outline strategies for decarbonization, renewable energy integration, and minimizing environmental impact. SMGP’s sustainability vision aligns with San Miguel Corporation’s long-term goals of achieving net-zero emissions by 2050 and establishing a circular economy by 2040. Its initiatives go beyond standard regulatory compliance, implementing programs that promote the sustainable use of natural resources, reduce greenhouse gas emissions, cut energy consumption, and improve air quality.
A core component of SMGP’s environmental efforts is its Battery Energy Storage System (“BESS”) projects, which play a crucial role in stabilizing the national grid and facilitating the integration of more renewable energy. BESS technology enables the storage of energy from various sources, allowing SMGP to provide ancillary services such as frequency and voltage correction. This supports grid stability and improves overall power quality. SMGP’s target of achieving a 1,000-megawatt BESS capacity by 2024 will make its network the largest of its kind in Southeast Asia. The scalability of BESS technology enables SMGP to support the grid while minimizing environmental impact, making it an ideal solution for sustainable energy needs.
SMGP’s sustainability efforts extend beyond energy generation to include community development and environmental conservation. The company has launched various Corporate Social Responsibility (CSR) programs to support local communities and promote sustainable development. One such program, “Masaganang Negosyo, Masaganang Buhay,” empowers local entrepreneurs through capacity-building activities and support for small businesses. Additionally, SMGP’s Tertiary Scholarship Program provides educational opportunities to underserved communities, helping to uplift lives through education.
Through its Project 747, which continued through 2023, SMGP has planted over 6.5 million seedlings across 2,097 hectares of land, rehabilitating forests around its power plants and BESS facilities. SMGP collaborates closely with local People’s Organizations, empowering them to co-manage the project and actively protect the environment. The initiative extends to aquatic ecosystems as well, with the company’s Adopt-a-River program focusing on reforestation along riverbanks to prevent soil erosion and preserve water quality. These efforts reflect SMGP’s commitment to implementing high-impact environmental initiatives that contribute to a greener future.
SMGP employs carbon accounting practices based on the Greenhouse Gas (GHG) Protocol for accurate emissions disclosures and continuous improvement in sustainability performance. The company aims to improve energy efficiency and optimize its energy mix, targeting a renewable energy share of 35% by 2030 and 50% by 2040. SMGP’s integration of advanced technologies such as carbon capture, utilization, and storage (CCUS), alongside renewable energy investments, showcases its ambition to lead the energy sector’s transition to a low-carbon future and significantly reduce its environmental footprint for long-term positive impact.
With an installed capacity of 4,789 megawatts as of December 2023, SMGP operates some of the largest and most advanced power plants in the Philippines. Its portfolio includes baseload and peaking plants powered by coal, natural gas, and renewable energy, allowing the company to offer competitive baseload power rates while maintaining a reliable supply of electricity. This capability is further enhanced by its BESS facilities, which provide efficient ancillary services and support the integration of renewable energy into the grid.
SMGP’s leadership in the power industry is evident in its ongoing efforts to enhance corporate governance practices and establish itself as a responsible corporate citizen. The company employs a structured and comprehensive approach to implementing its ESG roadmap, integrating environmental considerations into its operational strategies, business activities, and sustainability initiatives. Through these strategic initiatives and a strong commitment to sustainability, SMGP continues to power progress and enhance the quality of life for all its stakeholders while building a sustainable future for generations to come.
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