SN Aboitiz to spend $1.75 B for additional 500-MW output

MANILA, Philippines — SN Aboitiz Power Group (SNAP), the joint venture of SN Power of Norway and Aboitiz Power Corp., is set to spend roughly $1.75 billion to add another 500-megawatt (MW) capacity of renewable energy projects in the next decade.

SNAP president and CEO Joseph Yu said the company is looking to add 500 MW until 2027 with new hydropower projects and other renewable energy facilities to complement its existing hydropower portfolio.

“We are making progress (in meeting our target). We continue to make progress on the socio-political acceptability,” he said.

“We will also definitely look at other hydros. Hopefully, there will be another round of privatization and if there is, we will be interested with that. We are also looking at other RE sources that can complement our hydro,” he said.

To meet the 500-MW additional capacity, SNAP plans to invest about $3-4 million per megawatt, which would be funded through a mix of equity and bank loan, Yu said.

“Rule of thumb is $3-4 million per MW. So, that’s about $1.75 billion. That would be the aspiration,” he said.

To help meet this target is the 390-MW Alimit hydropower project in Ifugao. It is a multi-facility complex comprised of the 20-MW Olilicon hydropower plant, 120-MW Alimit hydropower plant and the 250-MW Alimit pumped storage.

“We’re still working on Alimit, that is where we are concentrating on. There are some others but really early stages,” Yu said.

The project aims to combine the waters of the Alimit River and Ibulao River to generate electricity. To supply power to the grid, it requires a 42-km 230 KV transmission line. 

The complex encompasses four ancestral domains in the municipalities of Aguinaldo, Lagawe, Lamut, and Mayoyao, with 81 host barangays under these domains. 

“We are making progress. We continue to make progress on the socio-political acceptability. We’re looking optimistic but let’s see,” Yu said.

SNAP is also looking at other hydropower projects, mostly in the north of the country.

“Most of where we are looking at is in the north so that’s why we are based and concentrate most of the efforts in that area,” Yu said.

Apart from hydropower facilities, SNAP is also eyeing solar power developments as this will complement the hydropower capacities.

“We started looking at all areas where we could put something. It’s extremely tentative at the moment. The reason there is because in the Philippines, you are being forced to make a call whether you answer food security or water security. If we could use the body of water and then put up solar on top them then you could at least reduce or eliminate that problem,” Yu said.

Currently, SNAP has 633.5 MW in its hydropower portfolio. It owns and operates 380-MW Magat hydro, which it acquired in 2007 through privatization. It also owns and operates the 105-megawatt (MW) Ambuklao hydro and the 140-MW Binga hydro in the province of Benguet.

SNAP also started commercially operating its 8.5-MW Maris Main Canal 1 Hydroelectric Power Plant last month after completing commissioning works. Maris hydro is the first power plant constructed by SNAP Magat hydro’s acquisition in 2007.