Araneta business group to spend P41B for hydropower plant

BY LENIE LECTURA – OCTOBER 20, 2022
from Business Mirror

THE group of businessman Gregorio Ma. Araneta III will invest P41 billion to put up an 800-megawatt (MW) pumped-storage hydropower facility in Laguna.

“The proposed project in general is envisioned to augment power supply and contribute to energy security in the country as a renewable energy resource consistent with the strategic directions of the Philippine Development Plan and the Power Development Plan,” read the draft environmental impact statement by project proponent Belisima Hydropower Corp. (BHC). “It will also increase the contribution of renewable energy sources in the Luzon grid.”

According to BHC, the indicative cost of the project is P41 billion, using the exchange rate of P52.53 per $1 as of the last quarter of 2018.

BHC was granted by the Department of Energy (DOE) a service contract to explore, develop and utilize hydropower resources within the contract area located along Laguna de Bay in the municipality of Pangil.

Project construction will take approximately 48 months and will involve a workforce of 2,000. It will be located along the northwestern part of the Laguna Lake East Bay and will occupy several barangays in the municipality of Pakil and Pangil.

“BHC is in the process of negotiating the lease over the properties forming part of the project site. The memorandum of agreement between Greogorio Araneta (GA) Inc. and BHC relating to the acquisition by GA Inc. of the properties underlying the project site and subsequent lease to BHC is attached,” it told the Environmental Management Bureau of the Department of Environment and Natural Resources.

The company added that the major benefit of utilizing a pumped-storage facility is that only a minimal amount of water is required during operation. Water losses due to evaporation, leakage, or seepage will be provided by rainfall or additional pumped water from Laguna de Bay.

“The project will only use about 0.5 percent of the lake volume,” BHC said. “In addition, water used to generate electricity is not in contact with any harmful substances.”