SNAP interested in CBK privatization
SN Aboitiz Power Group (SNAP), a joint venture between Aboitiz Power Corp. and Norwegian firm Scatec, is keen on the privatization of the 796.46-megawatt (MW) Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant complex in Laguna.
The CBK is the next power asset being eyed for privatization by the state-run Power Sector Assets and Liabilities Management Corp. (PSALM).
PSALM held an investor forum on Dec. 1 to generate interest in the privatization of the CBK hydroelectric power plants, as well as the rehabilitation and asset management plan for the Agus-Pulangi hydroelectric power plants with a private partner.
Through the forum, PSALM sought to strengthen investor relations and facilitate the interchange of information to further improve the privatization procedure for its remaining assets.
“So it’s a very interesting project. It’s very interesting for us because it will require a fair bit of creativity and it will be a fun exercise to do,” SNAP Group president and CEO Joseph Yu said.
The CBK is part of the P45-billion worth of key remaining assets which PSALM has yet to privatize.
“CBK is interesting because energy storage is a very important part of the portfolio especially when we realized our aspirations for the renewable energy portfolio standards,” Yu said.
“Once you bring in all that variable renewable energy, storage becomes very important and the question becomes how do you calculate the value of the CBK, especially the Kalayaan pumped storage. We look at what the frameworks are there so that whoever buys this thing can actually trade it and then add value to it,” he said.
SNAP owns and operates the 388-megawatt (MW) Magat hydroelectric power plant on the border of Isabela and Ifugao, the 105-MW Ambuklao and 140-MW Binga hydroelectric power plants in Benguet, as well as the 8.5MW Maris hydroelectric power plant in Isabela.
The company also has a 200-kilowatt floating solar power project in Magat.
Aside from its hydro developments, SNAP has also been expanding its project pipeline to include complementary technologies such as battery energy storage system (BESS).
BESS is a type of energy storage system that can store energy electrochemically and can be connected to the grid, small grid, distribution system or end-user facility to deliver the energy demand when needed.
SNAP broke ground last year on the 24-MW Magat BESS project co-located in the Magat hydropower complex.
Three new BESS projects with a capacity of 100 MW to be located within SNAP’s facilities in Isabela and Benguet are also in the works.