The Energy Regulatory Commission approved the application of Hedcor Sabangan Inc., a unit of the Aboitiz Group, to develop a dedicated connection line to link its 14-megawatt Sabangan hydro plant to the transmission system of National Grid Corp. of the Philippines.
ERC approved the P35.321-million construction cost of the dedicated point-to-point line after deducting certain costs, lower than the original P45.12 million sought by Hedcor Sabangan.
The dedicated point-to-point line will connect the hydro plant to the 69-kV La Trinidad-Bulalacao-MOPRECO transmission line of National Grid. The power line is expected to be completed this year.
ERC said in a decision that National Grid would operate the transmission facility, subject to applicable charges.
Hedcor Sabangan is currently constructing the hydro plant in Barangays Namatec and Napua in the municipality of Sabangan, Mountain Province. The plant is a run-of-river development project aimed at harnessing the hydro power potentials of Chico River.
The company specializes in generating clean and renewable energy from run-on-river hydro power resources.
Aboitiz Renewables Inc., a wholly owned subsidiary of Aboitiz Power Corp., will fund the construction of the point-to-point line. Aboitiz Power Renewables owns a 99.9 percent equity interest in the hydro plant.
“The dedicated point-to-point transmission facility is essential to the delivery of power from the Sabangan plant to the Luzon grid,” the ERC decision said.
The hydro plant will generate 55.15 gigawatthours annually based on the approved feed-in tariff rate of P5.90 per kilowatt-hour.