The Department of Energy (DoE) expects local and foreign companies to invest over P690 billion to install 5,394 megawatts of additional capacity from large, micro and mini-hydropower plants over the next 20 years.
Of the total capacity addition, nine projects that can generate a combined 27.8 MW have already been committed for installation, with the required investment estimated to reach P3.127 billion.
The remaining hydropower projects that can generate 5,366 MW are still indicative, meaning that these are either at the exploratory stage or have yet to reach financing closing.
These projects are expected to require P689 billion worth of investments between now and 2030.
The DoE has committed to help push for the aggressive development and eventual commissioning of these hydropower projects, which are more friendly to the environment compared with power plants using conventional fuel sources such as bunker oil and coal.
The DoE has pledged, for instance, to sustain technology support to the sector, in terms of upgrading of local manufacturing capability, establishment of standards and best practices, and technology mentoring.
For off-grid areas, a comprehensive micro-hydro program will be formulated until 2015.
An inventory of micro-hydro projects will be conducted to determine the possibility of optimizing the use of hydro resources and/or interconnection via mini grid systems.
Advisory services to interested investors will be provided throughout the implementation period (2016-2020).
The DoE also disclosed that it plans to get the Japan International Cooperation Agency (JICA) to conduct an optimization study, which will identify at least 50 potential sites.
JICA is also expected to package these prospective areas in preparation for auction to interested investors.
According to the DoE, studies have indicated that the Philippines has some 13,097 MW of untapped hydro resources.
Close to 86 percent—or the equivalent 11,233 MW of the hydro resource potential—can be developed as large hydro projects in 18 sites all over the country, while 888 other sites have mini-hydro potential capacities totaling 1,847 MW.
Most of the hydropower installed capacity is in Luzon where the resources can support large-scale hydro projects.
As of end-2010, hydropower accounted for 21 percent of total installed capacity in the country, making it the most dominant source of renewable energy-based capacity.
The DoE believes that given sufficient resources, hydropower can compete with conventional fossil-fired plants in terms of efficiency and cost.
Large hydropower plants, however, require large capital costs and have a longer gestation period, often requiring the building of roads to facilitate construction work.
Micro- and mini-hydropower plants, on the other hand, have simple power generation systems that can be easily operated by local communities.