International power companies partner to save rice terraces

MANILA, Philippines - A group of international power companies has undertaken a one-of-a-kind project in Ifugao province, which aims to preserve the grandeur of the rice terraces.

E8, which is composed of 10 electricity companies from the G8, together with other proponents – Tokyo Electric Power Co. Inc. (Tepco) and the Department of Energy (DOE) – led the ceremonial turnover of the 200-kilowatt (kW) Ambangal mini-hydropower plant project.

E8, a prime mover in promoting sustainable energy development through electricity sector projects and human capacity building activities in developing nations worldwide, is composed of American Electric Power, Duke Energy, Electricite de France, ENEL S.P.A., Hydro Quebec, JSC (RusHydro), Kansai Electric Power Corp., Ontario Power Corp., RWE AG and Tepco.

Johane Meagher, E8 executive director, said the project has a unique concept since it will not only provide power to Ifugao communities but will also help secure funds for the conservation of the 2,000-year-old rice terraces in Ifugao Province.

“It is our goal not only to pursue sustainable energy development but to raise awareness of the cultural heritage of one nation. The Ifugao Rice Terraces is a cultural site and must be protected,” she said.

The Rice Terraces of the Philippines in the Cordilleras are reputed to be the true “Stairway to Heaven.” However, due to lack of maintenance, they have been suffering from continuous deterioration. In 2001, UNESCO (United Nations Educational, Scientific and Cultural Organization) listed the Rice Terraces as a “World Heritage in Danger.”

In line with UNESCO’s recommendations to the Philippine government and the Ifugao province local stakeholders, the project will contribute to financing local terrace conservation activities and will also enhance local capacity in - and provide a pilot model for - renewable energy-based rural development.

In May 2007, a feasibility study was launched and an extensive consensus building campaign was conducted to obtain broad support from local stakeholders.

In July, a memorandum of understanding was signed between the DOE, the Ifugao provincial government and E8.

In December 2008, a contract was signed between Tepco and Alfafa, a local construction company.

The project is worth $1 million and will have an annual benefit of P5.4 million at P3.78 per kWh.

The projected secured conservation fund will be P3 million per year.

In October 2009, a power plant from Japan was installed. In the succeeding months, Tepco trained future plant operators from the community.

Meagher said the mini-hydro project, which will be commissioned this month, will undergo a two-year monitoring phase, during which close oversight of the power plant operations and maintenance activities will be secured by the E8 project team with the local partners.

After a full year of data collection, design calculations, community public hearings and outreach sessions, the E8 completed the project’s feasibility studies and environment impact in May 2008.

Based on the studies’ financial analyses, the project’s power sales to the local electricity distribution cooperative, Ifugao Electric Cooperative (Ifelco), will secure $70,000 annually for the conservation fund.

The $1 million project, entirely funded by the E8, is expected to generate 1,443 megawatt-hours of energy annually, which corresponds to 18 percent of the province’s total energy demand.

This is the first time that E8 will have a project in the Philippines. But Meagher said they might look into other projects specifically in hydro, wind and solar which are the main projects being looked at by their group.

At present, E8 has hydro-related projects in Nicaragua and Tunisia.