by Alena Mae S. Flores – April 24, 2016 at 11:20 pm
from Manila Standard Today
SN Aboitiz Power Corp. is interested in developing the Alimit hydro power project in Ifugao province to expand its generation portfolio, an official said over the weekend.
SN Aboitiz executive vice president and chief operating officer Joseph Yu told reporters SN Aboitiz was conducting a feasibility study on the project.
“We’re finishing our feasibility study. We still have to go through FPIC [free, prior and informed consent]. We have 82 barangays to consult, and then still need to go through the provincial government. We still need to sort through the land issues of the transmission line,” Yu said.
He said the Alimit project study would not be ready for another 18 months before construction could, begin which means the project completion would likely be by 2021 to 2022.
Yu said the feasibility study would include the technical and financial aspect of the project, including the prospective generation capacity, initially estimated at about 120 megawatts to 140 MW.
The official conceded that the project carried certain challenges such as getting the full support of the community and the financial cost.
“With prices where they are today, it may not justify the investment in it. but in the end, you’ll look at an internal rate of return,” Yu said.
“The timeframe, if we push through right now at the current pace, that’s roughly when it will come on stream. If you delay it, you’ll have fewer years of commercial return… And that pricing will be heavily dependent on pricing of coal, oil, how much coal, solar, LNG, wind capacity,” he said.
Yu noted that hydro power plants would always have a place in the grid, despite the increasing number of coal-fired plants.
“We’re perfectly positioned to provide whether baseload, mid merit or even peaking,” he said.
SN Aboitiz is a joint venture between Aboitiz Power, the holding company for the Aboitiz Group’s investments in power generation and distribution, and SN Power, a global renewable energy company established in 2002 as a Norwegian limited company owned by Statkraft and Norfund.
SN Aboitiz Power-Benguet is the owner and operator of the Ambuklao-Binga Hydroelectric Power Complex, consisting of the 105-MW Ambuklao Plant in Bokod, Benguet and the 140-MW Binga station in Itogon, Benguet.