July 2, 2025

This post was offered a mini hydro power plant in the North; does not look feasible

Savings from oil and coal importation

A  business broker communicated with me and offered a power plant in island province where there is a frequent rotating brown out.  and said am interested.  However he said it could have been sold and offered another one at La Union.  However when I asked for cost to produce (LCOE) and current purchase price at WESM he demurred and said it has to be subject to NDA.  And probably the seller would know the numbers.

The deal would be P80M for the just the permits and total project cost would be a billion,  It is about 2Mw of power.    At P500M per megawatt.  A little bit high.  And so probably he just swing the deal to another one who could take the risk

And the P n L number would be:

             LCOE  -  8 us cents of about P4.40
             WESM price    P4.52.   Just 0.12 gp?  So thin margin.  

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