BACKGROUND
The 22-megawatt (MW) Mini Hydroelectric Power Plants are composed of seven plants located in various areas in Benguet. They are owned and operated by the Hydro Electric Development Corporation (HEDCOR) and the Northern Mini-Hydro Corporation (NMHC), both headed by Mr. Erramon Aboitiz. In 1991, HEDCOR offered to sell power to the National Power Corporation upon the latter’s invitation to owners of small private sector generating facilities pursuant to Executive Order No. 215. The contract was signed on 20 January 19931 and has been implemented under a Build-Operate-Own scheme.
The objective of the project is to provide instant energy to the Luzon Grid as a result of low power supply level during the early 1990s. It also aims to support the optimization of indigenous energy resources in the country.
The mini hydro plants are of the run-of-the-river type, which means that they do not involve dam construction. Being hydro plants, they also do not incur fuel costs. Since the hydro plants were already existent when National Power contracted them to sell power, the costs of the mini hydro plants do not include capital recovery fees and minimum energy off-takes. Instead, their costs are taken as a percentage of National Power’s effective rates for the Luzon Grid.
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Plant Name |
22-MW Benguet Mini Hydro Power Plant Northern Mini-Hydro Corporation |
Name of Independent Power Producer |
Hydro Electric Development Corporation |
Power Plant Structure |
Run-of-the-River Hydro Plant |
Location |
Ampohaw: Banengbeng, Sablan, Benguet, and Bineng, La Trinidad, Benguet
Bakun: Sinaklot, Poblacion, Bakun, Benguet, and Bakun Central, Benguet |
Installed Capacity |
30.75 MW |
PROJECT RATIONALE
The early 1990s were years of crisis in the power industry, with the Luzon Grid experiencing sporadic blackouts. To resolve the power crisis, National Power sought to immediately establish a comfortable level of energy in the Luzon Grid. However, the prompt provision of power supply could only be sourced from existing power plants operated by the private sector. Thus, National Power initiated to buy power from existing power plants and issued an invitation to owners of small private sector generating facilities to sell power to the state-owned power generation firm. HEDCOR, an owner of a 22-MW hydroelectric generator, responded to National Power’s invitation and signed a contract to deliver and sell power to the Luzon Grid pursuant to the Rules and Regulations of Executive Order No. 215. The invitation also aimed to promote the development of indigenous energy resources in the countryside, such as hydropower plants, to encourage self-reliance and to avoid the use of imported fuel oil.
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