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MANILA, Philippines – The Department of Energy (DOE) has granted SN Aboitiz Power Group (SNAP) a renewable energy service contract (RESC) for an integrated hydropower complex in Ifugao province.
The original Certificate of Registration signed by Energy Secretary Jericho Petilla will be released once SNAP posts the required performance bond.
The contract term provides for 25 years from effective date on July 24, renewable for another 25 years.
The power facility is composed of the 100-megawatt (MW) Alimit plant, the 240-MW pumped storage facility, and the 10-MW Olilicon plant. The facilities will be developed under SNAP-Ifugao, a subsidiary.
Its planned development of a 350-megawatt (MW) hydroelectric power facility marks the company’s first major project under its Greenfield Development Program (GDP).
SNAP’s GDP aims to grow the company’s renewable portfolio by looking at potential small and large hydro projects in the Philippines, primarily within its current host communities in northern Luzon.
SNAP’s GDP also supports the renewable energy program of the government to ensure security of supply.
SNAP-Ifugao is a joint venture between SN Power of Norway and AboitizPower.
Meanwhile, AboitizPower Corporation’s net income in the first semester dropped 6% to P8.9 billion ($201.77 million) from P9.5 billion ($215.37 million) last year.
Core net income likewise fell 21% to P8.6 billion ($194.97 million) from P10.9 billion ($247.26 million). According to a company statement, the drop was due to a “one-off” adjustment.
The dip in AboitizPower’s earnings does not affect the company’s confidence in the power industry, its president and chief executive officer Erramon Aboitiz previously said, citing the company’s over P80 billion ($1.81 billion) capital expenditure budget this year.
“We remain firmly committed to meeting the country’s growing power requirements and offering competitive solutions to our customers,” Aboitiz said. – Rappler.com
*($1 = P44.08)