MANILA, Philippines — The Board of Investments (BOI) said Friday that it has greenlit the development of an Ifugao-based hydro power plant worth P185 million in investments.
In an emailed statement, the board announced that it has given the nod to First Ifugao Renewable Energy Corp.'s application for the registration of its 0.56 megawatt (MW) hydroelectric power plant in Asipulo, Ifugao after it complied with the requirements.
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The "Likud 2 Hydroelectric Power Project", which aims to support the rising power requirements in Luzon, is expected to begin commercial operations in September of next year.
“The newly-approved hydroelectric power plant in Ifugao is a significant project, for the Philippines is heading toward green and modern economy. It proves that we are committed to improving the renewable energy sector of the Philippines,” BOI Chairman and Trade Secretary Ramon Lopez said.
The Likud 2 is expected to bring in an average of P23 million in sales during the first ten years of its commercial operations, based on BOI estimates.
The project is eligible for various incentives under the Renewable Energy Act of 2008, such as the seven-year income tax holiday, duty-free importation of renewable energy-related equipment, and tax exemption of carbon credits.
BOI Managing Head and Undersecretary Ceferino Rodolfo said the board is encouraging more investments in renewable energy in the country, adding that the new hydro plant will bring in more business opportunities this year.
The government wants renewables to account for at least 35% of the country's generation mix by 2030 and 50% by 2040, based on the Energy department's latest energy plan.
Coal has historically made up a significant portion of the country's power mix.