BOI OKs P185-M hydropower project in Ifugao

The Board of Investments (BOI) said Friday that it has given the green light to the application for registration of First Ifugao Renewable Energy Corp., as a new developer of a hydroelectric power plant in Asipulo, Ifugao amid rising electricity demand in Luzon. 

In a statement, the BOI said the 0.56 megawatt (MW) Likud 2 Hydroelectric Power Project is expected to start its commercial operation in September 2023, which will help shore up the renewable energy (RE) sector in the country. 

The hydropower project is estimated to cost P185 million or $3.5 million.

Trade Secretary and BOI chairman Ramon Lopez said, “The newly-approved hydroelectric power plant in Ifugao is a significant project, for the Philippines is heading toward a green and modern economy."

He added: "It proves that we are committed to improving the renewable energy sector of the Philippines. This is just the beginning of more green investments pouring into our country’s economy.” 

On the other hand, the BOI said Luzon's power demand will continue to increase because of the sustained economic growth of the country, thus building up capacity is imperative to sustain such power demand and ensure that the supply of power to consumers is unhampered.

The company’s 0.56 MW run-of-river hydro power project is expected to increase the required capacity addition of 16,397 MW for hydropower by 2040, according to the agency.

Under the Republic Act (RA) No. 9513 or the Renewable Energy Act of 2008, the firm is eligible to the grant of the incentives such as income tax holiday for seven years, duty-free importation of RE machinery, equipment, and materials including control and communication equipment, and tax exemption of carbon credits, the BOI noted.

With a projected average sales of P23 million or $440,000 during the first 10 years of its commercial operations, the approved project will result in an estimated P35 million or $669,000 additional output to the Philippine economy as well as P3 million or $57,400 contribution to household income, it added.

Also, the BOI said the project will contribute to the required capacity addition of 73,868 MW needed to meet the National Renewable Energy Plan (NREP) target of 81,485 MW for the total installed capacity by 2040 under the Clean Energy Scenario. —LBG, GMA News