Philippines' Aboitiz Power explores hydropower in Myanmar
Company taps nation of 61 million after setbacks in Indonesia
CLIFF VENZON, Nikkei staff writer
MANILA -- Aboitiz Power has started exploring potential hydroelectricity projects in Myanmar after withdrawing from a geothermal power deal in Indonesia, company President Antonio Moraza said on Wednesday.
Moraza said feasibility studies are being undertaken with Norwegian partner SN Power, which has hydropower expertise. The team-up is eyeing "several hundred" megawatts of power generation projects.
There is potentially 39,000 megawatts in hydropower that can be tapped in Myanmar, SN Power says on its website.
SN Power and Aboitiz are also working on a hydropower project in Indonesia's Central Sulawesi region, taking advantage of President Joko Widodo's efforts to bolster the country's power capacity.
Aboitiz's initial foray abroad has been met with some setbacks. In January, the company was forced to back out of a geothermal project with Medco Energi Internasional, a Jakarta-based oil and gas producer, in Indonesia's East Java province due to mounting costs. "[We] realized that it is riskier than we thought," Moraza said.
Its consortium also failed to acquire Chevron's geothermal assets in Indonesia and the Philippines.
Aboitiz in 2015 earmarked $500 million to expand overseas as overcapacity loomed at home.
Moraza says 2017 will be challenging for the company due to oversupply as delayed projects become operational.
He said Aboitiz, which ended 2016 with around 2,500MW attributable capacity, will use its scale and track record to secure bilateral power supply deals.
Aboitiz's net income rose 14% to 20 billion pesos in 2016, as dry weather pushed up demand for power.