ALSONS Power Group plans to build 70 megawatts (MW) more of hydropower capacity spread out across Mindanao, entailing an investment that could reach $140 million to $280 million.
As a rule of thumb, every megawatt of hydropower-generating capacity is equivalent to an investment of roughly $2 million to $4 million.The Alcantara-led group is beefing up its investment renewable-energy (RE) portfolio, particularly in hydropower projects. The planned 70 MW is on top of the 94-MW hydropower capacity it now operates, said Alsons Consolidated Resources Inc. (ACRI) Vice President for Project Development Joseph Nocos.
“Our renewable-energy focus is on hydro. I believe hydro is the most affordable. We have access to enough hydro expertise here in the country that is actually helping us identify projects,” Nocos said. “Right now, we have a total of around 94 MW spread out across four different sites. We have applied for around 70 MW more in other locations also in Mindanao.”
Alsons is currently working on a 17-MW hydro plant that will be built along the Siguil River in the municipality of Maasim in Sarangani.
It is also developing the Kalaong 1 hydropower plant in Maitum, Sarangani, which has a capacity of 12 MW, the Kalaong 2 with 6 MW and Kalaong 3 at 4 MW.
Other hydro projects include the 4 MW Bago 1 in San Carlos City and 10 MW Bago 2 in Don Salvador Benedicto, both in Negros Occidental.
Alsons is also looking into developing small hydro projects in Zamboanga del Norte, namely Sindangan 1, Sindangan 2 and Sindagan 4.
Nocos said it usually takes two years to evaluate a prospective hydropower project. After which, the company may proceed to make an investment decision that would lead to project construction.
Alsons is also open to partnering with local firms for any of its hydropower projects.
“We do have existing partners in our power business and we ought to choose if it shows keen interest in participatiing with RE projects. Alsons is open to exploring opportunities with partners,” Nocos added.
Alsons projects are mostly coal- or diesel-based. Nocos said the company wants to add RE in its power portfolio to address the power woes in Mindanao which is facing rotational brownout due to lack of power supply.
“Our expansion moves have always been guided by what we believe is what needed by the market. We address the base load requirements by building or expanding base load plants. Beyond that, what we believe Mindanao grid needs would be capacity in the area of intermittent power supply which are going to be well served by hydro,” he said.