NORWEGIAN power firm Power, a partner of Aboitiz Power Corp., expects hydroelectric power will not expand its current share in the country’s power-capacity mix.
SN Power Philippines Country Director Tor Stokke said hydroelectric will continue to remain providing 20-percent capacity, because of the investments needed and the bureaucracy that goes with constructing new plants.
“It will not grow,” Stokke said, while describing that building a new hydroelectric power plant as “longtime capital-intensive” that needs $3 million in investment to produce 1 megawatt of power.
Aside from the 20-percent power generated by hydroelectric power plants, the country’s power-capacity mix has coal taking up 32 percent; oil, 19 percent; natural gas, 16 percent; geothermal, 11 percent; and new renewable energy, 2 percent.
According to Stokke, rehabilitating a hydroelectric power plant is much easier as compared to building a new one, with their company having rehabilitated the Binga, Ambuklao and the Magat hydroelectric power plants.
Stokke said another concern is the process in obtaining permits to construct a new power plant in the country, in which he said, could take three years to complete.
He particularly cited dialogue with the indigenous peoples and negotiations with the local government units.
“You have to do environmental studies and explain the project to them. They have to want the project,” Stokke said, while adding that there are concessions along the way.
Stokke said some of the items being asked are road constructions, percentage of royalty from the project, ambulances and corporate social-responsibility funding.
Stokke said permitting processes are very cumbersome and long lasting, while land acquisition is always a problem.
Still, Stokke said Mindanao can be the place for construction of new hydroelectric power plants.
“There is potential in Mindanao. But it depends on the political situation,” he said, while adding that their company is not yet looking at projects in the southern part of the country.
Aside from the Binga, Ambuklao and the Magat hydroelectric power plants, SN Power is also working on the Maris Canal project and the Alimit Hydropower Complex.
Stokke has over 25 years of experience in various executive positions in major Norwegian and international companies. He has also worked as a consultant and held director posts within hydropower industry in Asia and South America.
Aside from the Philippines, SN Power has presence in Panama, Laos, Myanmar and Zambia.