THE Board of Investments (BOI) has greenlit First Ifugao Renewable Energy Corp.’s application to become a new developer of a P185 million hydroelectric power plant in Asipulo, Ifugao.
Likud 2 Hydroelectric Power Project, capable of producing 0.56 megawatts (MW) worth of power, will begin commercial operations by September of next year, augmenting the hydropower production capacity of the country.
According to the BOI, the project will contribute to the efforts in the power generation roadmap set to be accomplished by 2040, with estimates of P35 million worth of output for the Philippine economy, and P3 million worth of contribution to household income over the first 10 years of commercial operations.
The plant is expected to generate 100 short-term jobs during the construction process.
According to the BOI, a constant increase in power demands in Luzon is expected as the country moves forward, necessitating the further increase of power generation capabilities.
The National Renewable Energy Plan calls for an additional 73,868 MW worth of renewable energy generation to meet the 2040 target of 81,485 MW from renewable sources.
First is eligible for incentives such as a seven-year income tax holiday, duty-free importation of renewable energy machinery, equipment and materials, and tax exemption of carbon credits under Republic Act 9513 or the “Renewable Energy Act of 2008,” according to the BOI.
“The newly approved hydroelectric power plant in Ifugao is a significant project, for the Philippines is heading toward a green and modern economy. It proves that we are committed to improving the renewable energy sector of the Philippines. This is just the beginning of more green investments pouring into our country’s economy,” Trade Secretary and BoI Chairman Ramon Lopez said in a statement.