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ALSONS Consolidated Resources, Inc. (ACR) expects its capacity from renewable energy sources to reach roughly 20% of its total energy output by 2022-23, with its long-time Japanese partner Toyota Tsusho Corp. possibly taking a stake on a per-project basis.

Joseph C. Nocos, vice-president for business development at Alsons, said Toyota Tsusho is “keenly anticipating” its entry into the projects, which is expected to reach a total capacity of 149.3 megawatts (MW).

“Once we finalize the EPC (engineering, procurement and construction) contract, they will know the investment requirements,” he told reporters in a briefing in Makati City.

Mr. Nocos was referring to the EPC contract for 15.1-MW run-of-river hydropower project along Siguil River in Sarangani province.

“Hopefully, before the end of the year, we would have signed an EPC contract,” he said.

Alsons is now focusing its expansion on renewable energy. Mr. Nocos said given the supply-demand situation, the company had foreseen the need for renewables in the Mindanao grid.

“This is two-fold. One, there is a need to develop available resources and secondly, there’s also a need to help the utilities with their compliance with RPS (renewable portfolio standard),” he said, referring to a yet-to-be issued regulation that would require power distributors to source a portion of their requirements from renewables.

Alsons has service contracts for 82.3 MW of capacity for hydro projects, while another 67 MW has yet to get clearance from the Department of Energy. The projects are in various stages of development.

The first one targeted for completion is the Siguil run-of-river hydropower project, whose project cost is estimated at P3.7 billion. The facility will be located at the Siguil River basin in Maasim, Sarangani province. It is under subsidiary Alsons Renewable Energy Corp., the direct owner of project company Siguil Hydro Power Corp.

“The target completion date of this project is May 2020 and we’re bidding for Socoteco (South Cotabato Electric Cooperative) II’s requirement for 2020, there’s an upcoming tender and we’ll be participating in that tender,” Mr. Nocos said.

Next is a hydro project in Bago City on Negros island, which Mr. Nocos said has a projected requirement of 40 MW by around May 2021.

“This is going to be timed with the expiration of some of the PSAs (power supply agreements) that these electric cooperatives have with coal-fired power plants. The intention is to shift some of that load from coal to hydro,” Mr. Nocos said, adding the move would be prudent in helping the utilities in mitigate the fuel price risks that most thermal power plants are exposed to.

“Aside from these two plants, we have a couple of other projects in Mindanao that we are developing. And consistent with our approach with the other projects, the timing of the construction and completion of these plants will also have to be matched with the requirements of our prospective customers,” he said.

Mr. Nocos said Alsons is projected to have a power capacity of 750 MW by 2022-2023, of which 150 MW would come from hydro power. A plan to expand to solar power is on hold, pending clarity on the direction from regulators on whether there would be another round of guaranteed feed-in-tariff for the energy source, he said.

Reference:

Saulon, V. V. (November 29, 2017). Toyota Tsusho keen on Alsons’ renewable energy projects. Business World. Retrieved from http://bworldonline.com/toyota-tsusho-keen-alsons-renewable-energy-projects/

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