6.6 megawatt Aboitiz hydro power plant granted BOI incentives

Subscribe Now April 15, 2013 at 06:13pm

The Board of Investments has granted the incentives application of Hedcor Sibulan Inc, a unit of Aboitiz Power Corp., for its P1.165 billion, 6.6 megawatt hydroelectric power plant in Davao del Sur.

Commercial operations of the Tudaya 1 power generation facility in the town of Sta. Cruz are expected to start in 2014 and will help ease the power supply shortage situation in Mindanao. The power plant will have 23 personnel at its controls.

Tudaya 1 will derive its renewable energy from the water flows of the Sibulan and Baroring rivers in Davao del Sur. Hedcor Sibulan will sell the electricity it produces to the Davao Light and Power Co., Inc.

BOI incentives granted were duty-free importation of equipment and a seven-year income tax holiday.

Hedcor Sibulan may also avail of a P5.90 per kilowatt-hour feed-in tariff or guaranteed payment under the Renewable Energy Act of 2008.

Hydroelectric power is one of the forms of renewable energy for which the law allows feed-in tariffs. — ELR, GMA News

Source: gmanetwork.com

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