Meralco, REDC enter joint venture for development in Philippines
The Manila Electric Co. and Repower Energy Development Corp. have signed a joint venture to develop small run-of-river hydropower projects in the Philippines.
REDC, which already has more than 100 MW worth of micro hydroelectric capacity in development, said it expects the deal to save more than US$40 million annually in reduced fossil fuel costs, while also providing a guaranteed income for 20 years under the country’s feed-in tariff scheme.
“Our wide experience in working with sustainable energy sources has allowed us to maximize its potential through our long-term approach of using best of breed international technologies, combined with local excellence in deployments,” REDC executive Dexter Tiu said.
The partnership marks Meralco’s first foray into the hydro sector, though the utility has already expanded to other renewables, including wind and solar.
The companies did not elaborate on details about specific proposed projects, but said they anticipate breaking ground on the first plants this year, with the initial wave coming on line in 2019.
Buffett-financed 13.8 MW plant opens in DRC
A 13.8 MW hydropower plant financed by American philanthropist Howard G. Buffett is now delivering much needed electricity to the Democratic Republic of Congo’s North Kivu province.
Located in the town of Matebe, the unnamed US$19.7 million small hydroelectric project is one of three in the province to be bankrolled by the son of billionaire investor Warren Buffett.
The Howard G. Buffett Foundation has also pledged an additional $29 million toward the other two plants, with Belgium and the European Union also contributing.
Buffett’s efforts are part of his initiative to help develop DRC – where less than 16% of the population has access to electricity, contributing heavily to the country’s rank amongst the lowest on the United Nations’ Human Development Index.
IFC takes tea with hydro
A US$55 million loan from the International Finance Corporation will help the Kenya Tea Development Agency (KTDA) power its processing factories through the construction of seven small hydropower plants.
Arranged in partnership with the Global Agriculture and Food Security Program, development agency PROPARCO and The Netherlands Development Finance Company FMO, the new hydroelectric projects will have a cumulative capacity of about 16 MW.
KTDA is a significant employer, operating 65 tea processing factories that source goods from 350,000 farmers. The farmers also act as company shareholders.
Hundreds of small projects under construction in southeast Europe
In southeast Europe, there are 1,355 greenfield hydropower plants either being planned or having entered operation since 2005, according to a recently released report.
Potential total generating capacity of the plants was not disclosed, although many of them are less than 10 MW.
Of these, 200 are in operation and 113 are under construction. The report indicates 823 projects are actively planned and another 171 are regarded as potential.
For purposes of this report – entitled Financing for Hydropower in Protected Areas in Southeast Europe – countries in southeast Europe include Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece (northern), Kosovo, Macedonia, Montenegro, Serbia and Slovenia.
A total of more than 1,800 projects were screened, with 1,355 identified as greenfield. The report provides country profiles. Albania contains 583 of the screened hydropower projects, Bosnia and Herzegovina have 278, Bulgaria 187, Croatia 157, northern Greece six, Kosovo 107, Macedonia 206, Montenegro 143, Serbia 88, and Slovenia with 102 hydropower plants.
In this region, the European Bank for Reconstruction and Development has supported at least 51 greenfield plants with about €240 million. Other banks involved include the European Investment Bank (five plants, about €437 million and 19 small and mini plants, about €22 million), and the World Bank’s International Finance Corporation (22 plants, monetary value not disclosed).
Concerns outlined in the report include “rampant corruption and inadequate nature protection” and the fact that almost half of the planned projects are in protected areas.
The report was prepared by CEE Bankwatch Network as part of the Save the Blue Heart of Europe campaign. It contains recommendations to multilateral development banks; commercial banks, export credit agencies and national development banks; national governments of countries in the region; the European Commission; the European Commission and energy community; and non-governmental organizations.
More HRW Current Issue Articles
More HRW Archives Issue Articles
