Ambuklao plant output being sold at power spot market

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SUNDAY, 05 JUNE 2011 18:46 PAUL ANTHONY A. ISLA / REPORTER

SN AboitizPower (Snap) Benguet Inc., the hydropower joint venture between SN Power of Norway and Aboitiz Power Corp. (AboitizPower) in Benguet, has begun trading the power generated by the Ambuklao hydroelectric power plant at the Wholesale Electricity Spot Market (WESM).

Snap-Benguet said Unit 3 of the decommissioned Ambuklao power plant went online and began its commercial operation.

Snap-Benguet said it also received a certificate of registration for Ambuklao’s Unit 3 as a participant in the WESM effective June 1, 2011.

Snap-Benguet added that the Unit 3 of the Ambuklao underwent its successful rotation and synchronization to the Luzon grid last month.

Snap-Benguet said the Ambuklao plant now has 35 megawatts (MW) of capacity after two years of rehabilitation following a 12-year shutdown.

Purchased in 2008 by Snap-Benguet, the rehabilitation of the Ambuklao plant began that same year to restore the plant and increase its capacity to 105 MW from 75 MW.

The rehabilitation is scheduled to be completed in the third quarter of 2011, enabling a fully operational Ambuklao plant by the end of the year.

The Ambuklao plant upgrade is another notable engineering feat entailing the construction of a new intake, headrace and penstock, elevation of tailrace tunnel outlet, desilting of tailrace tunnel and replacement of electro-mechanical components.

Snap-Benguet said renovations on its other facility, the Binga power plant, are ongoing.

Began in 2010, Snap-Benguet said the refurbishment will upgrade the plant from 100 MW to 120 MW one unit at a time within three to four years.  

Despite extensive plant rehabilitation, Snap-Benguet said the Ambuklao and Binga plants own a remarkable safety record.

As of April 2011, the two power plants posted a combined 3.75 million man-hours of zero lost-time incidents arising from workplace injury.

Emmanuel Rubio, Snap president, earlier said the expansion of the Binga and Ambuklao facilities will be funded through project financing.

“We have the same lenders for the Magat and Binga. And I think they’re happy with our performance and the industry, as well. They’re confident on how our economic managers are handling things,” Rubio said.

In September 2008 Snap-Benguet signed a $100-million loan agreement with the International Finance Corp. (IFC) to help boost electricity output in the Benguet province of Luzon, catalyze economic development, and enable Snap-Benguet to install new turbines and generators at the Ambuklao and Binga hydro facilities.

In 2007 IFC announced that it lent Snap $105 million for the Magat hydroelectric power plant.

Snap acquired the Ambuklao-Binga hydropower plants through a bidding done by the Power Sector Assets and Liabilities Management Corp. after offering to buy the assets for $325 million.

Built in 1956, the Ambuklao plant was the first among the country’s largest hydroelectric power facilities with an original installed capacity of 75 MW.  

Siltation and other technical problems caused by the 1990 earthquake that struck Benguet led to suspension of plant operations in 1999.