Aboitiz Power Corp. joined a hydroelectric power venture that is expanding its energy options in Indonesia.
AboitizPower entered into an agreement with SN Power AS of Norway and PT Energi Infranusantara of Indonesia to participate in the feasibility studies for the exploration and development of a potential 127-megawatt (MW) hydropower generation project.
The facility is set to be built along the Lariang River in Central Sulawesi, Indonesia.
PT Auriga Energi of Indonesia was awarded the basic license to develop the project and is currently conducting pre-feasibility studies.
The formation of the three-way venture follows AboitizPower’s recent announcement that it was investing in the exploration and development of a potential 110-MW greenfield geothermal plant in East Java, Indonesia.
Through wholly owned Singapore-based subsidiary AboitizPower International Pte, the company entered into an agreement with power producer PT Medco Power Indonesia, one of the major energy companies in this Southeast Asian country.
PT Medco Cahaya Geothermal, the project company, was awarded the concession to develop the project and was currently in the resource validation and exploration stage.
The hydropower venture also deepens AboitizPower’s strategic partnership with SN Power, a leading Norwegian hydropower developer with projects and operations in Asia, Africa and Latin America.
Their 50-50 venture called SN Aboitiz Power (SNAP) has several active projects in the Philippines. These include the 360-MW Magat hydropower plant at the border of Isabela and Ifugao in Northern Luzon. This project is under SN Aboitiz Power-Magat Inc.
SNAP-Magat acquired the plant in 2006 from the Philippine government.
Also, SN Aboitiz Power-Benguet Inc. operates the 75-MW Ambuklao and 100-MW Binga hydropower plants in Benguet.
These previously state-owned firms were acquired in 2007. After undergoing rehabilitation, the Ambuklao plant went online in 2012 with a capacity of 105-MW after remaining non-operational since 1999. The Binga plant also underwent various refurbishments since acquisition and now has an increased capacity of 125.8 MW.
Oslo-based SN Power was established in 2002 as a 50-50 joint venture between Norfund and Statkraft. The company is a leading commercial investor and developer of hydropower projects in emerging markets. It is Norfund’s largest investment.
PT Energi Infranusantara is a subsidiary of listed firm PT Nusantara Infrastructure.