In September last year, the Energy Regulatory Commission (ERC) gave the go-signal for the National Grid Corp. of the Philippines (NGCP) to proceed with the construction of the P52-billion Visayas-Mindanao Interconnection Project (VIMP).
NGCP expects to complete the project in about four years. Basically, it will allow Mindanao power producers to sell their excess power to clients in the Visayas, which in the past have perennially suffered from supply deficiency.
The NGCP, which holds the 25-year concession contract and the 50-year franchise to operate the country’s power transmission network is owned by Monte Oro Grid Resources Corp. of Henry Sy Jr., Calaca High Power Corp. led by Robert Coyuito Jr., and the State Grid Corp. of China (SGCC) as technical partner owning 40 percent.
We just learned from officials of both SGCC and NGCP that the submarine cable component of the VIMP is already being bid out.
I can say that NGCP, and our country, is in good hands with SGCC as partner. SGCC, a state-owned corporation, is the world’s second largest company in terms of revenues on the Fortune Global 500 list. It is the largest utility in the world and constructs and operates power grids as its core business. SGCC is also China’s second most valuable brand.
SGCC, established on Dec. 29, 2002, has more than 1.67 million employees, with total revenues of more than 2.3 trillion renminbi. As of end-March 2017, the total length of transmission lines of 220 kilovolts and above has reached 575,000 kilometers, of which 25,000 km were ultra-high voltage (UHV) lines. Installed generation capacity in SGCC has reached 1,295 gigawatts, accounting for 78 percent of China’s installed capacity. According to SGCC, it now operates an interconnected power grid with the most advanced technology and the strongest power transmission ability in the world.
According to State Grid International Development president Li Haixang, its investment in the Philippines is the first outside China and ever since, its foreign investment portfolio has grown leaps and bounds. To date, it has about $60 billion in foreign investments and the number keeps growing by the day.
As of 2017, China’s average daily electricity generation is around 17.04 terawatt hours (twh) or about 17.04 million megawatt hours (mwh). SGCC handles 88 percent of China’s total capacity.
SGCC is also one of the prime-movers behind the Global Energy Interconnection (GEI), which aims to bring affordable electricity access to 1.06 billion people currently living without electricity and to bring the percentage of clean energy in global energy consumption to 80 percent by 2050. About $50 trillion is expected to be invested into building GEI by the different country and private sector partners by the same year.
Established in Beijing in 2016, GEI Development and Cooperation Organization (GEIDCO) was established as an international social organization composed of businesses, organizations, institutions and individuals to build the GEI. It is currently chaired by Liu Zhenya (former chairman of SGCC), with American physicist and Nobel Prize in Physics winner Steven Chu, SGCC chairman Shu Yinbiao, SpfyNank founder and CEO Masayoshi Son and Russia’s Oleg Budargin as vice-chairmen.
Baby boomers
Let us take a look at one of the strongest drivers of our economy – the baby boomers.
Health and wellness products, anti-aging beauty products, cosmetic surgery, travels, upscale restaurants, condominiums, club shares, even concerts and musicals. These businesses and industries have been growing at a spectacular pace, thanks to this particular demographic.
Baby boomers in their younger years probably did not have money to spend for items they want but they do not need or even if they have the means, would rather spend it for their children or their home. But with their children all grown up, their homes already empty nests, their incomes substantially improved and their investments already bringing in the returns, these baby boomers can now spend for things that they want without having to feel guilty about it.
According to a study by Pinnacle Research, this demographic, which was born post World War II between the years 1946 to 1964, has been recognized as a formidable economic force due to their substantial number, and sheer spending power based on their demands and needs. As baby boomers grew, so did the economy, and goods like clothes, snacks, toys, tie-in products with fast food chains, and rock and roll, became all the more popular, it said.
The study noted that the baby boomer generation is also one of the longest-living generations in history, and as such, continue to generate powerful economic activity. As they age, however, the demands shift from diapers in their infancy, to rock and roll and the Ford Mustang in their teens, and now real estate, investments, and health, beauty, anti-aging, and wellness.
It pointed out that baby boomers are set to retire in the next 10 to 15 years, and more so, they are driving the economy into the direction of health and wellness. “Increase in demand for travel and leisure, gym and spa subscriptions, health supplements, anti-aging cosmetics, and retirement and vacation homes has been seen in the recent years as this demographic has been preparing for their golden years.
The study revealed that real estate has been one of the investments that baby boomers are looking into, as the value of land and property do not depreciate. It can be a good source of passive income, and at the same time, the shift into a healthy lifestyle gave birth to wellness estates. Here, baby boomers can retire and live out their lives in a simple manner, with organic farming at the core, presenting a sustainable means of living, it said.
The Philippines, the study adds, is now marketed as one of the top destinations to retire, and it ranked in internationalliving.com’s top 25 countries to retire in the world, due to low cost of living, entertainment, diverse natural setting, and amenities tailor fit for retirees. There are even expat incentives set by the Philippine Retirement Authority for financial and business aid, and easy processing of visa without expiry. Though infrastructure, health care, and other safety concerns are present, overall, the Philippines as a retirement and investment home for expatriate and local baby boomers is definitely viable and enticing, it explained.
For comments, e-mail at mareyes@philstarmedia.com
Source: https://www.philstar.com/business/2018/05/13/1814614/interconnecting-islands-world
