First Gen airs interest in run-of-river auctions

Business World Online
Posted on March 05, 2012 10:26:52 PM


FIRST GEN Corp. yesterday aired interest in joining the government’s planned auction of hydroelectric site, saying they were keen to invest in renewable energy projects as long as feed-in tariffs are imposed.


“We would be interested [in the bidding for hydroelectric areas],” First Gen President Francis Giles B. Puno told reporters in an interview yesterday.
First Gen earlier said it is looking at the construction of two run-of-river hydroelectric plants that are estimated to cost around P10 billion.
These projects are the 30-megawatt (MW) Puyo run-of-river hydroelectric power plant in Agusan del Norte and the 23-MW Bubunawan power plant in Bukidnon.
Run-of-river plants use the flow of the river instead of a dam which require larger facilities.
The government is planning to bid out 47 run-of-river areas in Luzon and the Visayas in the third quarter to test a bidding model for the awarding of renewable energy service contracts.
The areas were identified through a study by the Japan International Cooperation Agency (JICA).
The auction will replace the current system wherein renewable energy investors apply for a service contract area on a first-come, first-served basis before the Energy department grants approval.
“The feed-in tariff has gone through a number of hearings with the Energy Regulatory Commission so we’re hopeful that this year the tariff will finally be passed. That will trigger us being able to invest particularly in the run-of-river projects,” Mr. Puno said. -- Emilia Narni J. David