Monday, December 10, 2018

Alsons to shore up hydro generation portfolio by add’l 70MW capacity



Published December 7, 2018, 10:00 PM By Myrna M. Velasco

The power investment unit of Alsons Consolidated Resources Inc. will be shoring up the group’s hydropower development portfolio next year by additional 70 megawatts.
According to Joseph C. Nocos, vice president for project development of Alsons Power, the Alcantara firm will start work on their planned 40-megawatt hydropower project in Bago River in Negros Occidental latter part of 2019.
Another venture the company will be advancing next is the planned Sindangan hydropower facility in Zambaonga del Norte that will have initial capacity of 10-15MW but to be ramped up eventually to 30MW.
Nocos indicated the investment per megawatt on the proposed run-of-river hydropower projects would be in the range of US$3.0 million to US$4.0 million – thus, the magnitude of capital outlay for the projects may sum up to US$210 million to US$280 million.
“Our approach here is to build according to the needs of the market…And one of the main and a recurring theme of the company here is the effect of global market forces on fossil fuel prices that we’ll hope to mitigate through RE (renewable energy),” he said.
The first hydropower development of the Alcantara group is the 15MW Siguil plant in Sarangani province — which it has been targeting to bring to commercial commissioning by year 2020.
On the off-take or power supply agreement of the power plant’s capacity, Nocos explained that the company will have to undertake competitive selection process (CSP) as to the power utility that will be buying their generated electricity – primarily those needing to comply with the Renewable Portfolio Standards (RPS) enforced by the government.
“We need to go through competitive selection process but we’ve identified distribution utilities that have expiring contracts —those that have RPS goals that they need to beat; and so we’re looking to help them address these points,” the Alsons Power executive has expounded.
He likewise indicated that the Toyota Tsusho Corporation partner in their thermal plant developments is being invited again to join them in the hydro ventures.
“They (Toyota Tsusho executives) are looking at it, but they haven’t decided — but they are considering that one. They will look at it as any other project, so hopefully, we’ll get them to join us,” he stressed.

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