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BOI approves P1.1-billion hydroelectric plant project in Davao del Sur

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(Globalpost/GlobalPost)

Board of Investments (BOI) has approved the application of Hedcor Sibulan Inc. (HSI), the renewable energy developer of the Tudaya 1 Hydroelectric Power Plant in Sta. Cruz, Davao del Sur. With a capital investment of P1.165 million, the firm will operate the plant which is projected to provide additional 6.6 MW to the current supply of power in Mindanao. It will tap the waters of the Sibulan and Baroring river systems to generate power.

The amount of power to be produced is expected to be sold to Davao Light and Power Company, Inc. (DLPC), an electric distribution utility with a franchise area of 3,561 sq km. comprising the entire Davao City and the Davao del Norte areas of Panabo City and municipalities of Carmen, Dujali and Sto. Tomas.

This is the third hydro plant of HSI after Sibulan Plant A and Plant B which produces a combined capacity of 42.5 MW. These plants contribute substantially towards reducing carbon emissions within the area.

The continuing installation and expansion of RE plants reaffirms the commitment of the government to increase the country’s renewable energy resources as part of its National Renewable Energy Program (NREP).

Over the years, RE has evolved into a major contributor of the country’s primary energy supply. As of 2010, the national supply reached 40.7 million tons of oil equivalents (MTOE). The RE accounted for 57.5 percent or 23.4 million MTOE of those needs. The program’s vision for the long haul aims to increase the RE capacity of the country to 15,303 MW by 2030 or triple the 2010 RE output of 5,438 MW.

Hydro energy has already accounted for over 60 percent of the RE output as of 2010. Under the program, the government intends to boost it further by adding 341 MW by 2015, 3,161 MW by 2020 until it attains the aggregate target of 8,724 MW by 2030. The hydro power sector will add 5,394 MW at the end of the program.

The Renewable Energy industry is one of the sectors listed in the Investments Priorities Plan (IPP) which is eligible for incentives.

The IPP is the country’s blueprint for investment promotions and a platform to attract strategic investments with impact, particularly in countryside development as well as in generating employment.

The hydro project conforms with the specific guidelines of the 2012 Investment Priorities Plan (IPP) under the Mandatory Inclusion of the Renewable Energy Act and the Memorandum of Agreement between the BOI and the Department of Energy (DOE).

Philippines News agency

http://www.globalpost.com/dispatch/news/asianet/130412/boi-approves-p11-billion-hydroelectric-plant-project-davao-del-sur