A Giant Step in Power Distribution

By Herbert Vego

ENRIQUE K. RAZON Jr., the billionaire behind Primelectric Holdings Inc., is determined to pursue his clean, renewable and affordable energy projects in the entire Western Visayas and Palawan in collaboration with a big foreign investor.

This we learned from Primelectric president Roel Z. Castro, who revealed that Mr. Razon has partnered with Saudi Arabia’s ACWA Power for a multi-billion-peso investment that would explore widespread use of renewable energy and battery storage in Western Visayas and Palawan.

The agreement calls for Primelectric – owner of MORE Power in Iloilo, Negros Power in Central Negros, and Bohol Light in Tagbilran City – to share data and information on local power needs, and for ACWA Power to take the lead in developing, funding and running the projects.

To quote Castro, “This partnership comes at a critical time as our regions require more resilient, reliable, and affordable power sources. Through this collaboration, we aim to explore projects that will stabilize power supply and harness the abundant renewable resources of the Visayas and Palawan.”

It is a fact that high electricity costs in the Philippines significantly hinder economic progress and development by increasing the cost of doing business, discouraging investments, and impacting the competitiveness of industries. This leads to a higher cost of goods, reduced living standards, and can exacerbate poverty, particularly for vulnerable populations.

So, are we seeing the MORE-ACWA partnership as a step in the right direction? Why not?

Everybody now knows that, in the short span of only five years, Primelectric has gone a long way. It has put up MORE Electric and Power Corp. (MORE Power) to be Iloilo City’ power-distribution utility, and soon including Passi City and 15 Iloilo municipalities; partnered with what used to be Central Negros Cooperative (Ceneco) to establish Negros Power Corp. (NEPC); and partnered with Bohol Light in Tagbilaran City.

Talking of reliability, we understand that ACWA Power operates more than 100 sustainable and affordable energy and water projects in 14 countries.

ACWA Power’s global expertise and Primelectric’s deep understanding of the local market are therefore a potent combination aimed at fast-tracking the rollout of clean energy projects and driving technology transfer for long-term economic growth and community development.

No less than ACWA Power’s Chief Investment and Development Officer Thomas Brostrom cane and met with Castro to sign a joint study agreement to explore renewable energy opportunities.

MORE Power is allocating ₱2.1 billion in capital expenditures across its power utilities to upgrade distribution infrastructure and help maintain lower electricity rates through loss-reduction and upgraded service.

Negros Power, on the other hand, has earmarked ₱2 billion for the same purpose.

“Our goal is to pass savings directly to consumers, helping families allocate funds toward essentials like food, education, and other vital needs,” Castro said.

To recall, MORE Power reduced electricity rates by ₱2.61 per kilowatt-hour (kWh) in June, resulting in P122 in monthly savings for households consuming 200 kWh.

Bohol Light slashed power rates by ₱0.75 per kWh, translating to ₱150 in savings for the same monthly consumption.

NEPC customers also saw a ₱0.55 per kWh reduction, equivalent to ₱110 in savings for households consuming 200 kWh.

These Primelectric rates are among the lowest in the Visayas region.

This means that in June, the three Primelectric distribution firms had a total reduction of nearly ₱2 per kilowatt hour (kWh), translating to savings ranging from ₱110 to ₱150 for households consuming 200 kWh per month.

Incidentally, Razon is also a major investor in the Malampaya Gas Field in Palawan, which is engaged in exploring affordable natural gas.