DOE taps Soluziona for review of hydro power projects

The Department of Energy (DOE), through the Philippine National Oil Co. (PNOC), has tapped Spanish firm Soluziona to revalidate the earlier feasibility studies on the proposed hydroelectric power projects Langoan and Babuyan in Palawan.

In his report on PNOC’s renewable projects in Palawan, PNOC president and CEO Pedro Aquino Jr. said the review would be funded by the Spanish government.

Aquino said the move to tap the Spanish government is an integral part of the government’s efforts to provide additional energy capacity in Palawan.

According to the PNOC chief, the revalidation being undertaken by Soluziona is ongoing and is expected to be finalized before the end of this year.

"To date, the study is in progress and we expect the final report by end of 2006," he said.

Based on the initial findings of the studies, the economic benefits of the project may address the looming energy demand growth in Palawan.

These projects will also support the eventual electrification of 160 barangays in the province.

Other benefits of the projects are the displacement of imported fuel; creation of employment opportunities; and cheap and reliable source of electric power compared to diesel power.

It was noted that the generation cost of hydroelectric power plant ranged between P2 to P3 per kilowatthour (kWh) compared to diesel-fired which could generate power at a cost of P14 to P16 per kWh without subsidy.

These projects will generate carbon credit resources equivalent to a total amount of $142,380 at a rate of $7 per ton.

The environmental benefits of the projects, on the other hand, include the promotion and enhancement of Palawan’s sustainable development programs by protecting and preserving the province’s natural resources and watershed areas.

All the renewable energy projects of the PNOC group is now being handled by PNOC-Energy Development Corp. (PNOC-EDC), the geothermal development arm of the state-owned oil company.

"All renewable energy projects would be undertaken by the PNOC-EDC," he said.

Based on Department of Energy (DOE) data, the Philippines will experience a net benefit of as much as $1.23 billion or P67 billion from developing renewable energy sources.