Alsons Renewable Energy Corp. (AREC), a subsidiary of Alsons Consolidated Resources Inc., has earmarked US$650 million to pursue investments in hydro and solar projects that could have a total installed capacity of about 205 MW.
"Alsons has a clear strategy for developing renewable energy, starting with hydro," said Joseph Nocos, Alsons’ vice president for Business Development.
He said investments in hydro power projects will amount to $600 million.
Currently, Alsons has 97 MW of hydropower service contracts for four different rivers with the Philippines Department of Energy (DOE), the first of which would start construction this year.
AREC plans to construct a 15 MW run-of-river hydroelectric plant later this year along the Siguil River in Maasim, a province of Sarangani on Mindanao. This will be followed by a 40-MW plant in Negros along Bago River, and two more hydropower projects on Mindanao planned for the following two years, Nocos added.
Alsons is applying for another 80-90 MW of hydropower service contracts, in addition to its existing contracts with the DOE.
"We have [an additional] 80 to 90 MW of hydro service contracts under application with the DOE, which we expect the DOE to decide on within the year,” Nocos said.
“If all of those are approved, then we will end up with a total hydro portfolio of 180 MW, which we hope to implement in the next five years.”
In 2015, the DOE awarded Alsons contracts for the Sumlog 1 and 2 hydro projects -- total installed capacity of 23 MW -- in Lupon, Davao Oriental, the easternmost province on Mindanao.