When completed the expansion is expected to increase generation from the Bakun AC Power Plant by approximately 50 gigawatt hours (GWh) with the additional electricity will be sold to the existing offtaker, the National Power Corporation.
The project is due for completion in mid 2005 and will feed additional water into the Bakun AC plant, which is located on the Bakun River, Luzon, 250km north of Manila. Two weirs will be built, one on the Poy-Ocan River and another on the Kayapa River and a four kilometre tunnel, which will divert water into the existing power plant.
Relying on river flows to generate energy instead of dam-based storage the project abates over 230,000 tonnes of greenhouse gases by producing more than 230GWh of electricity each year.
This renewable energy generation also results in foreign exchange savings for the country by displacing the importation of almost 330,000 barrels of oil each year.