Swedish firm to invest in Phl power sector

MANILA, Philippines - Swedish investment firm North Investors AB (NIAB) plans to put up hydroelectric power plants in Luzon with an aggregate capacity of 75 megawatts in partnership with Constellation Energy Corp.

NIAB director Jan Pettersson said they will be infusing capital and expertise in these projects.

“We are very keen and serious in investing in the Philippines and we hope to stay here longterm,” he said.

Pettersson said they are now in the process of undertaking pre-development activities on the 3-5 MW Dupinga in Nueva Ecija; the 39.5-MW Alag and the 28-MW Bongabong in Mindoro. These projects already have service contracts with the Department of Energy (DOE).

According to the NIAB executive, they are targeting to start the construction of the mini-hydropower plants by late 2012. An initial project study would be carried out by a joint team of experts Austria and Philippines.

Constellation Energy chairman Jose Leviste, for his part, said the company is banking on potential investment opportunities in the Philippines.

Aside from hydro, Constellation Energy is eyeing a geothermal project in Biliran, Leyte; a wind power project in Panglao, Bohol; and three hydroelectric power projects in Bago, Salug Daku 2, Salug Daku 3 and Salug Daku 4. It is also the lone bidder for a geothermal project in Montelago, Mindoro Oriental.

TheDOE said Luzon would need additional capacity of 3,000 MW in Luzon 500 MW in Visayas and 600 MW in Mindanao from 2008 to 2017.

“We would like to identify and acquire multi-technology renewable energy projects for financing and development in the Philippines,” he said.

In October 2009, the company also bagged contracts to explore wind power projects in Ilog, Tanjay and Pamplona.

A subsidiary of EnerAsia Renewables Corp. of Canada, Constellation Energy is among the growing number of renewable energy companies that have set up shop in the Philippines following the signing of the Renewable Energy Act in late 2008.

The law grants fiscal and non-fiscal incentives to proponents of renewable energy projects.

Just recently, the DOE awarded more than 80 contracts to firms looking to cash in on solar, wind, hydro, geothermal, biomass and ocean power resources in the country.

Constellation Energy has partners and investors in Canada, Singapore, Italy, Australia and Hong Kong.

In the Philippines, Constellation Energy has existing partnerships with PNOC-Renewable Energy Corp., Development Bank of the Philippines, National Power Corp-Small Power Utilities Corp. and Filtech Energy Drilling Corp.