SN Aboitiz Power Group (SNAP)—the joint venture of SN Power of Norway and Aboitiz Power Corp.—is re-assessing its hydro project following challenges encountered in permitting process and grid interconnection.
“Actually, we’ve held back on Alimit given we have issues with the permitting,” said Aboitiz Power president Emmanuel Rubio, who was referring to the 390-megawatt (MW) Alimit Hydropower Complex.
Rubio also cited technical issues that affect the project’s viability. “We’re also reevaluating the route for the line. We have an SIS [System Impact Study], there were suggestions by NGCP on where to connect and it requires certain reconductoring of Magat-Santiago line. So with that, we said maybe it’s time to reevaluate our position with Alimit.”
The project has not been cancelled, Rubio clarified. He only meant that it should be thoroughly reviewed to address the concerns. “That’s where it is. We have not stopped. That’s the official word. We are actually reevaluating given the situation that we have some permitting issues and the connection point that we have to finalize with the NGCP.”
Once these issues are resolved, Rubio said the Alimit project would help alleviate flooding in Northern Luzon because it can trap certain amounts of water. “It will not prevent flooding, but at least it would help alleviate flooding and that’s the new track we’re evaluating with the government.”
In 2019, SNAP President and CEO Joseph Yu said the company’s board had directed to lower the capital expenditure (capex) of the project by as much as 20 percent.
A framework agreement for the Alimit project was already signed with the municipal government of Lamut, the last of the four local government units to approve Ifugao’s first large-scale hydropower facility. Other municipalities are Aguinaldo, Lagawe and Mayoyao.
The complex encompasses four ancestral domains in the municipalities of Aguinaldo, Lagawe, Lamut and Mayoyao, with 81 host barangays under these domains.
The Alimit project consists of the 20-MW Ollilicon, the 120-MW Alimit hydroelectric power plants and the 250-MW Alimit Pumped Storage.
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.