P88B in renewable-energy contracts awaiting approval from Energy dept

Written by Paul Anthony A. Isla / Reporter

MONDAY, 13 SEPTEMBER 2010 12:31

“BURNING issues” are delaying the infusion of some P88 billion in potential investments into the country’s determined bid to promote and develop renewable-energy sources. This, according to Energy Secretary Rene Almendras, who said a total of 382 renewable-energy contracts worth P87.74 billion were still awaiting the nod of the Department of Energy (DOE). Of these pending contracts, 255 were for hydropower projects; 62 for wind; 23 for biomass; 21 for geothermal; 18 for ocean energy; and three for solar-power projects. Almendras said the contracts could result in the generation of 4,400 megawatts of clean and indigenous power, which would be more than enough to supply the current demand from the Visayas and Mindanao. The DOE has signed 205 renewable-energy contracts since last year following the enactment of the Renewable Energy Act of 2008. Almendras said the approval of the pending projects would depend on the resolution of “burning issues” that concern the renewable-energy industry, such as the setting of the “renewable portfolio standard.” This standard will require distribution utilities to secure power sourced from clean and indigenous-energy sources and feed-in-tariff rates to guarantee the project proponents’ returns through power rates. Almendras said regulators were still finalizing these policies and they were expected to pass the tariff-incentive scheme for renewable-energy projects early next year. “There are also other renewable-energy policies that have yet to be put in place, including allowing consumers to choose renewable energy as their power source and selling to the grid any excess power they generate through these sources,” Almendras said.