Alsons eyes smaller-size hydro plants

MANILA, Philippines - Alsons Energy Development Corp. of the Alcantara Group, is eyeing to put up smaller-size run of river hydropower plants in Mindanao to help augment the power shortage in the region and to further diversify its portfolio.

Alsons executive vice president Tirso Santillan said for now the company continues to develop coal plants but would also be shifting to small hydro projects.

“We are embarking on developing run-of-river hydro projects. The capacities of the projects we are developing are smaller than those currently operating hydroelectric power plants in Mindanao because there are no more potential hydro sources in the island that can generate capacities comparable with Agus and Pulangi,” he said.

At present, the company is developing the Kalaong 1 hydropower plant in Maitum, Sarangani which has a capacity of 12 megawatts, the Kalaong 2 with 6 MW and Kalaong 3 at 4 MW.

Other hydro projects in the pipeline include the 4 MW Bago 1 hydro project in San Carlos City and 10 MW Bago 2 hydro project in Don Salvador Benedicto, both in Negros Occidental.

Furthermore, Alsons is also looking into developing small hydro projects in Zamboanga del Norte namely Sindangan 1, Sindangan 2 and Sindagan 4.

Two projects in Davao Oriental Sumlog 1 (8 MW) and Sumlog 2 (15 MW) are also in the pipeline.

The construction and completion dates are dependent on the accomplishment of all permitting and feasibility validation requirements,officials earlier said.

In terms of benefits to the environment, Santillan said run-of-river hydroelectric generation is environmentally friendly.

This is because it does not flood large tracts of land to create a reservoir, he explained.

Hydropower projects are estimated to cost around $2 million per megawatt.

The Alcantara Group’s holding company, Alsons Consolidated is a publicly-listed firm engaged in power generation, aquaculture and agribusiness.

The company has been a major business player in Mindanao and the rest of the country for over 50 years.

Latest data from the company showed that it reported a 52-percent rise in net income attributable to the parent for the first nine months of 2013.

Net income attributable to parent rose to P363.3 million from P239.6 million in the same period for 2012.

Consolidated net income for the period, meanwhile, rose six percent to P793.1 million from P747 million in the first nine months of 2012.