PNOC eyes 20% stake in small hydropower projects

To promote the use of renewable energy sources, the Philippine National Oil Co. (PNOC) is planning to take up a 20-percent stake in all its proposed small hydro power projects, Energy Secretary Raphael P.M. Lotilla said.

Lotilla, who is also PNOC chairman, said the proposal to allow PNOC a minority stake in each of these projects would not only enable government to promote the use of renewable energy but, at the same time, lure investors to participate in the projects.

“These hydro projects could be viable ones and we need to give them the support that they need,” he said.

Lotilla also acknowledged the need to pass the Renewable Energy Bill to support this objective.

“This is some kind of seeding that we can do, to take on a part of the responsibilities of the private sector,” Lotilla said.

He said government will still push for the bill this month. There is still “a window to push the bill,” which has already been certified as urgent, he said.

PNOC, with the support of the Department of Energy (DOE), has been talking with several local and foreign investors to push for these projects.

PNOC and Spanish firm Soluziana S.A. are conducting feasibility studies for the 5.6-megawatt (MW) Babuyan and the 6.8-MW Langogan hydropower projects in Palawan.

The Spanish government will fund the study through a grant of 235,000 euros from the Instituto de Credito Official.

PNOC is also studying the possibility of developing the 23.5-MW Timbalan hydropower in Ma. Cristina Madalag, Aklan, with the Japan External Trade Organization (JETRO) funding its feasibility study.

The results of the Timbalan study is now being reviewed and evaluated by the PNOC Investments and Appraisals Committee (PNOC-IAC).

PNOC is also looking at the 17.8-MW Catuiran hydropower project in Calapan, Oriental Mindoro. The feasibility study is also being funded by JETRO.

Once completed, the two projects would help ease a looming power shortage in the Visayas. They would also help displace a significant amount of diesel consumption in the province of Mindoro.

Last March, a feasibility study was also completed on the 17.8-megawatt Sicopong hydropower development project in Sta. Catalina, Negros Oriental.

PNOC is also eyeing other areas for hydropower development such as the 25-MW Villasiga hydropower in Sibalom, Antique; the 20-MW Pasil hydropower in Kalinga; and the 3.7-MW Paracelis hydropower in Mountain Province.