By Juzel L. Danganan
MANILA, March 29 (PNA) – Sta. Clara Power Corp., a subsidiary of the construction firm Sta. Clara International Corp., is targeting to build more than 12 hydropower projects with a capacity of 200 megawatts (MWs) in the next five years at an estimated cost of PhP900 million.
”Run of river, different sites, about 12 sites or more. We have small hydros ranging from 5-MW, 8-MW, 12-MW and 20- MW. We also have one project which has a capacity of 70-MW or 85-MW,” Sta. Clara International Corp. president Nicandro Linao told reporters.
He bared the company targets to generate 200 MW from its more than 12 hydropower projects within five years or more.
”The Target is 200 MW in the next five years or so,” he said.
He noted that a hydro project has a minimum investment cost of PhP3 million to a maximum of PhP 4.5 million per MW, depending on factors such as topography of terrain and the project’s design.
Sta. Clara International Corp., the mother company, will construct the hydropower plants’ facilities.
Linao said all the projects are eligible for the Feed-in-Tariff (FIT), which allows the developer to be paid based on the FIT rate – not influenced by the rates at the Wholesale Electricity Spot Market (WESM).
”If hydro is under FIT, you’re assured of the return. If you go through WESM, the returns are not good, and there is high risk,” he said.
Despite hydro project is not coming in cheap, the Sta. Clara Power Corp. president said hydropower is still a good investment, since it can operate from 50 to 100 years.
Linao said Sta. Clara is still reviewing offers for partnerships coming in from both local and foreign companies.
He said Sta. Clara has not participated in the Open and Competitive Selection Process (OCSP) for hydro and geothermal sites, owing to the need of developing their service contracts first.
The Department of Energy (DOE) awarded 17 service contracts to Sta. Clara last year — one in Benguet, one in Ifugao, six in Abra, one in Ilocos Sur, one in Bohol, two in Bukidnon and five in Compostela Valley.
Meanwhile, Linao said the company might decide to list in the Philippine Stock Exchange (PSE) in the next three years.
Sta. Clara has also been a contractor for power and infrastructure projects in the Middle East. (PNA)