SNAP to add 500 MW in capacity by 2027

THE SN Aboitiz Power (SNAP) group is looking to add 500 megawatts (MW) to its existing installed power capacity by 2027 as it plans to build new hydroelectric power plants in northern Luzon, while studying the commercial viability of solar energy and battery storage.

“We’d like to add 500 MW by 2027,” Joseph S. Yu, SNAP president and chief executive officer, told reporters. “We’d like to think we’re strong in the north.”

“One of the tough things for hydro is it’s a seven to 10 years gestation. During those seven to 10 years, so many things can happen in terms of policy, market pricing, how many new plants get built. So it’s a fairly risky endeavor,” he said.

SNAP currently has at least 600 MW of installed capacity, more than half of which comes from SN Aboitiz Power- Magat, Inc. The unit owns and operates the 380- MW Magat hydroelectric power plant at the border of Isabela and Ifugao. Its 8.5- MW Maris Main Canal 1 hydroelectric power plant started commercial operation in November.

Another unit, SN Aboitiz Power- Benguet, Inc., owns and operates the 105-MW Ambuklao hydroelectric power plant in Bokod and the 140-MW Binga hydro plant in Itogon.

Mr. Yu said the company came up with the 500- MW target in part from the forecast demand in the next 10 years.

“It’s really a feel of where the market is going and what would be a reasonable yet aggressive market position for SNAP in 2027. So you draw a line and you pick a point and say that’s where we are going to aim,” he said.

Asked about the capital outlay for the additional capacity, Mr. Yu cited a $3-million to $4-million cost per megawatt or a total of around $1.75 billion for the 500 MW.

Mr. Yu said SNAP was also looking at venturing into other renewable energy sources, specially solar power, although the assessment is at “very early stages.”

“If you look at where the industry is going, if you look at the prices of [solar] panels and where it’s gone, it’s becoming increasingly more and more competitive,” he said. “As this evolves at some point, solar is going to become a very big force in the generation mix.” —