DAVAO DEL SUR, Philippines – The Aboitiz group is likely to invest more in the development of hydro power projects in Mindanao.
Chris Faelnar, senior vice president for operations and maintenance of Hedcor Inc., told reporters here that on top of the existing 42.5 megawatt (MW) hydro power project of the Hedcor, they are looking at the possibility of adding 15 MW more in the next two years.
Hedcor is a unit of Aboitiz Power Corp., the power generation arm of the Aboitiz group.
The 15 MW additional capacity, Faelnar said, may need an investment of $2.5 million per MW.
“There are still room to expand the capacity of the 42.5 MW project. We are eyeing another six MW and nine MW hydro power plants in the next couple of years because we see potentials of expanding the project both in its upstream and downstream portions,” he said.
The Aboitiz group, so far, has allocated some P5.1 billion for the 42.5 MW Sibulan Hydropower Project (SHP), one of its largest investments in the hydropower generation business.
These hydro power facilities are envisioned to add a significant amount of generation capacity to the Mindanao grid once it is in full operation.
The first of its two plants, in fact, is already generating 26 MW since it started operation this month.
The SHP is a 42.5-MW greenfield hydropower project. It entails the construction of two cascading run-of-river hydropower plants that will harness the Sibulan and Baroring Rivers in Sta. Cruz, Davao Del Sur.
The construction of the second plant is already underway and will generate an additional 16.5 MW capacity once it is finished.
The project includes the construction of five drop intakes; more than 16 kilometers of steel pipes to divert the water from the rivers to the plants; about three kilometers of tunnel; and about 34 kilometers of transmission lines to connect the plants to ERA substation at Bajada, Davao City. Each plant will be capable of operating during peak hours.
SHP will generate carbon neutral electricity that will reduce greenhouse gas (GHG) emissions by more than 95,000 tCO2e. It is registered under the United Nations Framework Convention on Climate Change (UNFCCC) as a Clean Development Mechanism (CDM) project that will sell certified emission reduction units (CERs) to industrialized countries. SHP is the only CDM-registered hydropower project in the country.
CDM, the first global environmental investment and credit scheme, allows emission-reduction or emission removal projects in developing countries to earn CER credits, which is equivalent to one ton of CO2.
These CERs can then be traded and sold and eventually used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.
The SHP is part of AboitizPower’s commitment to responsibly provide power to the Philippines through Cleanergy, its brand of cleaner and renewable energy. Under this, the company has committed to offer an energy solution that leaves a lighter impact on Earth’s climate and its limited resources. It likewise promotes the usage of energy from sources that are sustainable and cleaner.
AboitizPower currently represents one of the largest private renewable energy producers in the Philippines. Its renewable energy portfolio includes geothermal and hydroelectric power plants located across the country.