Swedish investment group keen on small hydropower projects

BUSINESS MIRROR THURSDAY, 16 DECEMBER 2010 19:42 PAUL ANTHONY A. ISLA / REPORTER

SWEDEN-BASED North Investors AB (NIAB) is partnering with Constellation Energy Corp. to develop small hydropower projects to help bring in additional generating capacity to the Luzon grid.

In a press briefing, Jan Patterson, NIAB director, said his company will be investing both financially and technically in bringing in about 75 megawatts (MW) of generating capacity sourced from run-of-river hydropower systems in Mindoro and Nueva Ecija.

“We are very keen in investing in the Philippines, and we hope to stay here for the long -term,” he said.

Patterson said they are now conducting predevelopment activities in potential hydropower project sites in Dupinga, Nueva Ecija and in Alag and Bongabong in Mindoro Oriental.

Jose Leviste, Constellation chairman, said Dupinga has a potential to generate 3 to 5 MW, while Alag and Bongabong are estimated to have generating capacities of 39.5 MW and 28 MW, respectively.

Leviste added that Constellation has been the service contract to develop the three sites by the Department of Energy (DOE).

Patterson said they target to start the feasibility study by the first quarter of 2011, while construction is expected to start at the latter part of 2012.

He added that construction could take 12 to 18 months to complete.

Aside from the three hydropower projects, Constellation has also set its eyes on a geothermal project in Biliran, Leyte, a wind power project in Panglao, Bohol, and three hydroelectric power projects in Bago (13.2 MW), Salug Daku 2 (6 MW), Salug Daku 3 (2.5 MW), and Salug Daku 4 (4 MW).

For the period 2008 to 2017, a DOE data showed that Luzon would need additional capacity of 3,000 MW; 500 MW in the Visayas; and 600 MW in Mindanao.

A subsidiary of EnerAsia Renewables Corp. of Canada, Constellation is one of the growing renewable-energy companies that have set up shop in the Philippines following the signing of the Renewable Energy Act of 2008, which grants fiscal and nonfiscal incentives to renewable energy project proponents.

Constellation has various partners and investors from Canada, Singapore, Italy, Australia and Hong Kong.

In the Philippines Constellation also has an existing partnership with PNOC-Renewable Energy Corp., Development Bank of the Philippines, National Power Corp.-Small Power Utilities Corp. and Filtech Energy Drilling Corp.