Hydropower Infrastructure

Hydropower dam and reservoir

By American Public Power Association on Unsplash

Hydropower Infrastructure
with a focus on underserved areas
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Build and Operate Renewable Energy Infrastructure, particularly hydropower, in partnership with local governments to cater to remote and underserved areas.

San Roque Multi-purpose Hydroelectric Powerplant is a Build-Transfer-and-Operate scheme under the Public-Private Partnership (PPP) Program of the National Government. The project is located in San Manuel and San Nicolas, Pangasinan. The project is under the implementation of the National Power Corporation (NPC) and the private sector partner is the consortium of Marubeni Corporation, Sithe Philippines Holdings, Inc., and Italian-Thai Development Public Company Limited.

The Bakun A/B and C Hydroelectric Power Plant is a 70 MW run-off-river development, located in the southern part of the Central Cordillera Mountains along the major tributary of the Amburayan River. The project cost was USD 83 Million and it was implemented under the Build-Operate-Transfer (BOT) scheme. The project is now operational and is owned and operated by Luzon Hydro Corporation.

Ifugao Ambangal mini hydro power plant in the Philippines is a 200 kW run-of-the-river project that provides clean, renewable electricity to the agricultural community of Kiangan, Ifugao and improves the residents’ livelihood by supporting their rice farming practices. The plant generates on average 1,200 MWh per year of reliable and clean electricity. The plant’s power sales to the local Ifugao Electric Cooperative (IFELCO), secure around 70,000 USD annually for the conservation fund

Expected Impact

Reducing greenhouse gas emissions while improving air quality, energy affordability and creating green jobs through hydropower investments.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Climate Action (SDG 13) Sustainable Cities and Communities (SDG 11) Gender Equality (SDG 5)
Sector Sources
  • 1) NEDA. Philippine Development Plan 2023 to 2028 https://pdp.neda.gov.ph/philippine-development-plan-2023-2028/ 2) INFF. Development Finance Assessment 2022 https://medium.com/@jp.inff.ph/2022-development-finance-assessment-shows-ph-financing-landscape-in-the-time-of-covid-19-and-the-68dcc39bcc19 3) Department of Energy. (2020). Philippine Energy Plan 2020-2040. Department of Energy. https://www.doe.gov.ph/sites/default/files/pdf/pep/PEP_2020-2040_signed_01102022.pdf 4) Ocampo, R. (n.d). How Net-Metering Works: Understanding the Basics of Policy, Regulation, and Standards. Department of Energy. https://www.doe.gov.ph/1-how-net-metering-works-understanding-basics-policy-regulation-and-standards 5) Barbosa, Mario (2019). https://www.andritz.com/hydro-en/hydronews/hydro-news-asia/philippines#:~:text=With%20more%20than%2070%20plants,728%20MW%20pumped%20storage%20complex." 6) Department of Energy (2023) Hydropower. https://www.doe.gov.ph/hydropower
IOA Sources
  • 7) Department of Energy. (2020). Philippine Energy Plan 2020-2040. Department of Energy. https://www.doe.gov.ph/sites/default/files/pdf/pep/PEP%202022-2040%20Final%20eCopy_20220819.pdf 8) Mordor Intelligence https://www.mordorintelligence.com/industry-reports/philippines-renewable-energy-market 9) Polestrom, (2019). Unpublished 50-Megawatt Solar Power Project FS 10) Department of Health. (2020). Philippine Health Facility Development Plan 2020- 2040. Manila, Philippines: Department of Health.https://doh.gov.ph/sites/default/files/publications/DOH_PHILIPPINE%20HEALTH%20FACILITY%20DEVELOPMENT%20PLAN%202020_2040_0.pdf 11) Green Infrastructure Investment Opportunities. (2020) https://www.adb.org/sites/default/files/publication/653566/green-infrastructure-investment-philippines-2020.pdf 12) Oplas, Jr., B. S. (2022). Electrifying profit and penalties, the case of NGCP, DUs, and ERC. BusinessWorld. https://www.bworldonline.com/opinion/2022/02/07/428389/electrifying-profit-and-penalties-the-case-of-ngcp-dus-and-erc/ 13) Fernandez, A. (2021) How the Philippines’ low-carbon plans may fuel a switch to green jobs. Eco-Business. https://www.eco-business.com/news/how-the-philippines-low-carbon-plans-may-fuel-a-switch-to-green-jobs/ 14) As gas reserves wane, Philippines faces rising costs in switch to LNG. (2023). BusinessWorld. https://www.bworldonline.com/top-stories/2023/05/24/524691/as-gas-reserves-wane-philippines-faces-rising-costs-in-switch-to-lng/ 15) Ravago, M. (2023). The cost structure of electricity in the Philippines and other Asian countries: A Comparative Note. ACERD. https://www.ateneo.edu/sites/default/files/2023-01/AdMU%20WP%202023-02_0.pdf " 16) Silverio, I. (2023) Filipino Women Speak Out On Equitable Energy Access https://maritimefairtrade.org/filipino-women-speak-out-on-equitable-energy-access/ 17) World Bank (2022). The Philippine Offshore Wind Roadmap https://documents1.worldbank.org/curated/en/099225004192234223/pdf/P1750040b777da0c30935a0e2aa346f4e26.pdf 18) Indrawati, S. (2015) What you need to know about energy and poverty. https://blogs.worldbank.org/voices/what-you-need-know-about-energy-and-poverty 19) Power Technology (2023) https://www.power-technology.com/data-insights/top-five-hydro-power-plants-in-operation-in-the-philippines/?cf-view 20) Technology Brief. USAID (1998). https://docs.google.com/spreadsheets/d/1AOwwjnF_sEbOnyzznxc3Tu7_6CcrDjjI/edit#gid=1578749044 21) Renewables First (2023). https://renewablesfirst.co.uk/renewable-energy-technologies/hydropower/hydropower-learning-centre/what-would-the-return-on-investment-be/ 22) JICA Feasibility Study. https://openjicareport.jica.go.jp/pdf/12267399_02.pdf" 23) 37) Yamog Renewable Energy Development Group. https://www.globalgiving.org/pfil/2752/projdoc