Strategic Power Development Corp. (SPDC), a wholly-owned subsidiary of SMC Global Power Holdings Corp., will build a 300-megawatt (MW) pumped-storage hydropower facility worth P26.3 billion in Malay, Aklan.
The multi-billion peso hydro power project is meant to cover a portion of the renewable energy requirement of the Visayas grid particularly during peak hours. This will also contribute to the stabilization of the grid by providing ancillary services and peaking power.
“Currently, hydroelectric power facilities account for the largest portion of renewable power source in the country. In this juncture, the development of this project will provide Renewable Energy to the Visayas grid, particularly the Province of Aklan in Panay Island, during peak hours for the current and future peak load demand,” the power firm said in a filing with the Environmental Management Bureau of the Department of Environment and Natural Resources.
The project is designed to generate electricity during the peak period and pump back the water used during off-peak period through a reversible pump-turbine system on a daily basis.
Construction for the pumped-storage plant will take four years and five months, starting with site installation in the first quarter of 2022.
SPDC said the schedule is governed by the construction of the main access tunnel, the underground powerhouse and the installation of the pumping/generation equipment.
The first unit of the pumped-storage plant would be ready for operation 54 months from the decision to commence construction of the project, with the full capacity to be available within 55 months.
Construction works for the powerhouse and power waterways, both with a duration of 45 months and will be simultaneously implemented, will have an estimated completion in the second half of 2025.
Construction works for the dams and reservoirs for both the upper and lower dam will take 46 months and will be completed in the third quarter of 2025.
“Commissioning will then start [in] the 3rd quarter of 2025 and the project will be operational at the start of the 2nd half of 2026,” it said.
SPDC said construction shall commence only after the issuance of all necessary permits including the environmental compliance certificate for the project. The operational phase shall start as soon as the facility and its supporting facilities have been completed, established and duly commissioned.
The proposed project will cover 122.7 hectares of land that will accommodate its major components.
SPDC said the barangay and municipality will directly benefit from the project through additional financial resources provided by the development.
For instance, the municipality of Malay will directly benefit from the project because of the local taxes from the operational phase of the project. Also, the host community will be entitled to a share of P0.01/kilowatt hour of electricity sales.
SMC Global Power is transitioning to cleaner energy to reduce its carbon footprint while helping address the country’s need for reliable and affordable power.
Aside from hydro, it will put up solar plants combined with battery storage facilities at 10 locations throughout the country. These will be operational by 2023.
It will also build a 1,300-MW liquified natural gas (LNG) combined cycle plant in Batangas City and small-scale LNG plants in 8 to 10 islands in the Visayas and Mindanao to boost rural electrification.
“We’re executing our plans to move away from building new coal facilities despite new technologies that make them cleaner. It’s a company direction that is in line with all the major sustainability initiatives we have undertaken these past couple of years,” said SMC President Ramon S. Ang.