SNAP to ramp up capacity via $1.75-billion spending

By Lenie Lectura - December 19, 2017
https://businessmirror.com.ph/snap-to-ramp-up-capacity-via-1-75-billion-spending/

THE SN Aboitiz Power (SNAP) Group may spend $1.75 billion in the next 10 years to ramp up its capacity by 500 megawatts (MW) more.

“The rule of thumb is you spend $3 [million] to $4 million per [MW] so it’s about $1.75 billion. That would be the aspiration,” SNAP President Joseph Yu said, adding that funding will come from a combination of equity and bank loan.

The company’s current installed capacity is 633.5MW. It owns and operates the 380-MW Magat hydroelectric plant, the 105-MW Ambuklao hydro plant, the 140-MW Binga hydro plant and the 8.5-MW Maris South Canal hydro plant.

The company plans to increase its capacity to 1,133 MW, with the additional capacity coming from a combination of new hydro projects, other renewable-energy (RE) projects and possibly acquisitions.

“We will also definitely look at other hydros. Hopefully, from privatization and if there is, we will be interested with that,” Yu said. “We are also looking at other RE sources that can complement our hydro. I think if we could store solar, but it involves a different set of competence.”

He added the company’s focus is more on hydro power since this is “far more realistic between building something and privatizing.”

Yu said the company is currently looking at some areas as prospective locations for more hydropower projects. “Most of [what] we’re looking at is in the north, so that’s why we are based and concentrated most of the efforts in that area.”

A hydropower facility takes seven to 10 years before it is completed. The company is also securing permits for another hydropower project in Ifugao. The 350-MW Alimit hydropower is composed of the Alimit Dam, Reservoir and a 120-MW power plant. Commissioning and testing could commence in January 2021.

Yu said earlier that the company may end 2017 with a 20-percent growth in revenue and profit.

He added revenue “almost” grew by 20 percent year-on-year. The company is also looking at a “similar” 20-percent growth in profit.

“The front half of the year, we had a lot of inflow. We had very good hydrology so we were able to generate much more in the front half of the year than we normally can. Our dams are much fuller from December 2016 to January 2017. So we were able to keep them at high level. We were able to ride in the dry season with a lot of power,” Yu said.