Feasibility study for expansion of Magat plant pushed

MANILA, Philippines - SNAP-Magat Inc., a joint venture between SN Power of Norway and the Aboitiz Group, will push through with the feasibility study for the expansion of the Magat hydroelectric plant from 360 megawatts to up to 540 MW.

In a statement, SNAP said the decision to proceed with the conduct of the feasibility study was formalized upon the signing of a memorandum of understanding (MOU) between SNAP-Magat chief executive officer Emmanuel V. Rubio and the National Irrigation Administration (NIA) administrator Antonio S. Nangel.

The MOU facilitates the gathering of information to determine the feasibility of expanding the capacity of the Magat plant for an additional 90 MW to up to 180 MW.

The existing Magat plant was designed for two additional units.

The study will also include the feasibility of installing a pumped-storage system where water stored in an upper reservoir is released into a lower reservoir through the penstock when power from the plant is needed.

When demand for electricity is low, the turbines spin backward and pump the water back up into the upper reservoir, enabling more efficient water use.

The result of the feasibility study will enable SNAP-Magat to evaluate whether to proceed with the construction phase of the project.

NIA is the government agency tasked with the operations of the Magat Dam and Reservoir, a multi-purpose facility that prioritizes irrigation for farmlands in Isabela and adjacent provinces. 

The Magat plant, located in Ramon, Isabela and Alfonso Lista, Ifugao, uses the same water used in irrigation for its power generation and is dependent on NIA’s irrigation diversion requirement.

SNAP-Magat sells 35 percent of the facility’s power output to five Northern Luzon electric cooperatives through separate bilateral contracts. The rest of SNAP Magat’s generated power is traded in the wholesale electricity spot market. 

Aside from operating as a peaking plant, SNAP-Magat is also an ancillary service or reserve power provider. It presently has an back-up power agreement with the National Grid Corp. of the Philippines (NGCP), the concessionaire that operates the power transmission backbone of the country.

Earlier, Emmanuel Rubio, SN Power chief executive officer, said raising Magat hydro’s capacity, however, hinges on the improvement of transmission facilities that connect to the plant as line constraints may limit how much they can expand.