Since the power industry deregulation, more listed companies have been venturing into the sector amid growing demand for electricity to support economic activities, experts said.
“Major companies are trying to take advantage of the power shortage across the country. Given the fast growing economy, demand for power will steadily increase in the next few years,” said Lexter Azurin, Unicapital Securities Inc. equity research head, via text message.
Two of the more recent examples are the LT Group Inc. (backdoor listing in 2012), the holding company of liquor and tobacco tycoon Lucio Tan, and Zamora-led Nickel Asia Corp. (listed 2010). Both jumped into the latest trend in the power sector: Renewable energy (RE) generation.
Taking advantage of the financial incentives offered by the government to proponents of renewable energy projects, Absolut Distillers Inc. (ADI) of the LT Group set up its 2-megawatt solar power plant in Batangas in March 2015.
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ADI general manager and Tanduay Distillers Inc. (TDI) vice president for distillery operations Gerardo Tee said the project was the LT Group’s first venture into renewable energy.
“This is just the tip of the iceberg. We will build more, but we want to see first how the government manages FIT (Feed-in-Tariff) and what direction it is taking,” he told the Inquirer.
