Alsons Consolidated Resources Inc. plans to put up around 200 to 210 megawatts of renewable energy capacity in the next five years with estimated investments of approximately $650 million.
Alsons vice president for business development Joseph Nocos told reporters baseload or coal-fired power plants under construction, especially in Mindanao, were enough to meet future demand.
“We’re looking ahead to what Mindanao grid will need. First there is enough baseload power plants being built, so we believe there will be adequate baseload in next 10 to 15 years. We’re anticipating, an opportunity for generation companies in RE space, mainly hydro,” Nocos said.
The company is pursuing the projects under newly-established Alsons Renewable Energy Corp.
Nocos said the company planned to build up to 180 MW of hydro power capacity, mostly located in Mindanao. It already obtained hydro service contracts of 90 MW from the Energy Department, while the balance is pending approval.
“Around 80 to 90 MW is under application and we expect DoE to decide within the year. If all is approved, we will have 180 MW which we hope to implement in next five years,” Nocos said.
He said the company was pushing the construction of the 15 megawatt Siguil hydro power plant in Maasim this year.
Nocos said the project would be followed by a 40-MW hydro power project in Negros island along Bago River.
“Except for a 40-MW [hydro in Negros], all projects will be in Mindanao… Two other [hydro projects] in Mindanao could be rolled out in next couple of years,” he said.
Nocos said the company was also investing in solar power projects on a selective basis, mainly in the General Santos area.
“We’re actually looking at one solar project in Gen San of 25 MW,” the official said.
He said the company planned to invest $600 million in hydro projects and $40 million to $50 million in solar energy.
“We will try to implement [solar] in the next 12 months. We’re trying to assess the best location for this project,” Nocos said.
Alsons is developing coal-fired power facilities to help provide a stable source of baseload power in Mindanao and ensure the long-term power security of the island.
These facilities are the 105-MW plant of San Ramon Power Inc. in Zamboanga City and the 210-MW station of Sarangani Energy Corp. in Maasim, Sarangani.
The first 105-MW section of the Sarangani plant is now in the advanced stages of testing and commissioning. It will begin commercial operations this year with an initial capacity of 105 MW.
The Sarangani plant is expected to be operating at its full 210-MW capacity in 2018.
Construction of the San Ramon coal-fired power facility in Zamboanga City, meanwhile, is expected to begin in 2016. It is set to operate by 2019.
Alsons said its-affiliated power facilities were expected to achieve a total generating capacity of 588 MW by 2019.
The capacity will meet over 25 percent of Mindanao’s projected peak demand for that year.
“With the coming to operation of coal-fired plants and continued operation of diesels… this new addition to capacity will result in improvements in bottom-line of ACR as a whole,” Nocos said.