Pan Pacific Renewable Power Phils. Corp. plans to build two hydro power plants with a combined capacity of 400 megawatts in Kabugao, Apayao that would cost P41.65 billion.
Pan Pacific is developing the Gened-1 and Gened-2 hydro plants with a capacity of 150 MW and 250 MW, and project cost of P 19.8 billion and P21.85 billion, respectively.
“The Gened 1 and Gened 2 projects would have a sole purpose of power generation only and is expected to be a major contributor in the share of hydropower in the renewable energy mix of the Philippines,” the company said in a submission to the Department of Environment and Natural Resources.
The company said it conceptualized the projects to ensure energy security from the foreseen power shortage given the lack of additional generation capacity and expand the renewable energy to attain the target of at least 35 percent RE share in the power generation mix by 2030 and 50 percent by 2040.
“The increased supply of renewable energy will lessen the country’s dependence on conventional fuels such as diesel and coal,” Pan Pacific said.
The hydro power plants are located on the Apayao-Abulug River about 16 kilometers upstream of Kabugao town. They are under the hydro service contract with the Department of Energy.
Gened 1 is in the development stage and already completed all necessary pre-development permits.
The project is undergoing intensive negotiations with the potential engineering, procurement and construction contractor who will construct the plant according to international standards.
The company said the provincial government of Apayao was pushing for the utilization of the Apayao-Abulug River as a source of clean energy and economic mover to sustain the energy demand of the province and improve businesses.
“The provincial government is also projecting an increase in revenues due to the government share and real property taxes from the renewable energy project that could be utilized for more livelihood, environmental and social programs to uplift the lives of the Yapayaos,” it said.