2007 ANNUAL REPORT Power Corporation - Aboitiz Equity Ventures

The annual energy requirement will be met with the
development of two vital greenfield projects in Davao
Province – the 42-MW Sibulan Hydropower Project (SHP)
and the 34-MW Tamugan Hydropower Project (THP).
Both these run-of-river hydropower projects support the
Philippine Government’s goal of increasing the country’s
renewable energy-based capacity and attaining energy
self-sufficiency through the development of indigenous
sources such as hydro.
For its SHP project, Hedcor has secured the necessary
permits and licenses for the project including an
Environmental Compliance Certificate from the
Department of Environment and Natural Resources.
The total energy from the SHP and THP will prevent the
release of more than 200,800 tons of carbon dioxide
equivalents (tCO2e) in the atmosphere every year. With
this, SHP applied for the Clean Development Mechanism
(CDM) registration last March 2007.
The CDM is a market-based flexibility mechanism
included in the Kyoto Protocol that allows developed
countries to earn “certified emission reduction” units
(CERs) to be used for fractional compliance with their
greenhouse gases’ reduction commitments.
Once registered as a CDM project, the Sibulan plants will
have the opportunity to be issued CERs that can then be
traded in the worldwide CER Market. Revenues from the
SHP’s CER sales are projected to be between 80
million and 100 million annually.
In 2007, the company’s 15 mini hydro plants generated
162 million kwh in 2007, exceeding their annual target
by five percent due to a prolonged rainy season. This
amount of clean energy also prevented the release of
about 85,000 tCO2e into the atmosphere and saved the
country from importing 400,600 barrels of oil.
Being at the forefront of the renewable energy
industry, Hedcor continues to look at the possibilities of
developing other hydro potentials in the Benguet and
Davao regions.
Supplying energy
for the future
Aboitiz Power Corporation (AP) has
certainly come a long way in building its
renewable energy business. From its humble
beginnings in 1972 as a lessee and operator
of a 3.5-MW hydro plant in Talomo, Davao
owned by the National Power Corporation, AP
is today the country’s largest conventional
hydro owner and operator.
Upon turnover of the Ambuklao-Binga plants
this year, AP will have total investments
in 643 MW of hydro capacity. Taking its
corresponding ownership in these assets, AP
has an attributable capacity of 340 MW of
hydro, equivalent to 59% of its generating
capacity.
The company believes that today, more than
ever, clean and renewable energy will play an
increasingly important role in the supply of
energy for the future.
With this in mind, AP has set its sights on
developing more greenfield capacity after
its Sibulan and Tamugan hydro projects in
Davao. It also intends to bid for other NPC
assets, both hydro and geothermal, being
sold by PSALM.
AP has developed its own brand of clean and
renewable energy called Cleanergy. It is the
company’s vision to make Cleanergy available
to every Filipino.
ABOITIZ POWER CORPORATION ANNUAL REPORT 2007 • 37