Regulator renews Magat hydro power plant license

Manila Times.net

The Energy Regulatory Commission (ERC) has renewed the operating license of the Magat hydroelectric power plant in Isabela. In a statement, the ERC said it has approved the renewal of SN Aboitiz Power Magat Inc.’s (SNAP) certificate of compliance after finding that the company remains compliant with the technical and financial standards of the regulator.

The renewal allows SNAP Magat’s hydroelectric power plant located in Brgy. Aguinaldo in Ramon, Isabela to continue commercial operations for another five years.

SNAP Magat is a joint venture of Aboitiz Power Corp. (AP) and Norway’s Statkraft Norfund Power Invest AS.

The consortium acquired the Magat plant from the government auction block in 2007. The facility is powered by the Magat dam, a multi-purpose water reservoir, which is used to irrigate about 85,000 hectares of agricultural land.

“The ERC is glad that the hydroelectric power plant formerly owned by the government and now run by SNAP Magat remains to be in good operating condition. Renewable energy run plants help the country go clean and green in order to help mitigate the ill-effects of global warming,” Zenaida Cruz-Ducut, ERC chairperson and chief executive, said.

SNAP Magat’s hydro plant has an installed capacity of 360 megawatts. The generation company 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.

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

Earlier, Emmanuel Rubio, SN Power chief executive, said the company is studying an increase in the 360-megawatt hydro plant’s capacity by another 90 to 180 megawatts.

Raising the 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.

“We can work our way with NGCP to increase the capacity then 180 megawatts should not be an issue,” Rubio said.

SNAP Magat and the government recently launched a project for the efficient water use in the dam to help secure the productivity of farmlands and fishpond operations despite climate change.

The social collaboration between the National Irrigation Administration, Bureau of Fisheries and Aquatic Resources and SNAP Magat will also teach fisherfolks and farmers regarding scientific water use and agricultural techniques to help them sustain their operations and lessen the impact of water shortage.

AP shares closed at P31.75 apiece, down from its previous close of P32.1.
EUAN PAULO C. AÑONUEVO AND JAMES KONSTANTIN GALVEZ