JICA funds 2 hydro projects

MANILA, Philippines - Japan International Cooperation Agency (JICA) is funding the construction of two hydropower projects worth more than $2 million.

The mini-hydropower projects will increase available capacity in the provinces of Ifugao and Isabela by 2015, an official said.

“JICA has granted the Philippines with an aid to build mini-hydro projects in Ifugao and Isabela,” said Energy Undersecretary Jose Layug Jr.

The power project will increase generating capacity in Ifugao by 800 kilowatts (kw). The province has a demand of 2.4 MW.

“With that, we will address half of their requirements. There is no need for [transmission] connection because this is embedded,” Layug said.

Given the mountainous terrain in Ifugao, power transmission has proven to be a challenge in the province.

Layug said this will be solved as the additional output will supply the local electric cooperative.

“Part of the proceeds from this project will go to the rice terraces conservation fund,” Layug said.

Meanwhile, JICA is also funding the construction of a 150-kw mini-hydropower project in Isabela, which has a demand of 10 MW.

Benchmark investment for every MW is $2.5 million, Layug said.

“The model is JICA will build [the power plants] and then train the local governments for the operations,” Layug said.

Layug said construction is expected to start in the second quarter next year and will be completed in 2015.

“This is a candidate for feed-in tariffs (FIT),” Layug said.

The FIT scheme, whose implementation is already delayed by almost three years, guarantees investments of renewable energy firms through fixed rates that would be shouldered by consumers over a set period of time.

Last year, the DOE approved a 760-MW installation target for renewable energy projects. It is composed of 250 MW each for hydroelectricity and biomass, 200 MW for wind power, 50 MW for solar energy and 10 MW for ocean technology.

JICA has been helping the Department of Energy in technical and resource studies for renewable energy.

Early this year, JICA completed its technical study for mini-hydropower projects.

JICA’s two-year study showed the viability of putting up 40 to 50 run-of-river hydropower sites in Luzon and Visayas. The government will conduct a bidding for the new hydropower projects late this year.

JICA is also working with the National Electrification Administration in reducing system losses.