SUNDAY, 10 APRIL 2011 19:41 PAUL ANTHONY A. ISLA / REPORTER
THE projected high cost of renewable energy sourced either from wind or solar power has prompted the National Renewable Energy Board (NREB) to take prudent steps in setting installation targets for such technologies.
"The NREB must be very careful in setting installation targets especially for the higher cost technologies like wind and solar,” Pete Maniego, NREB chairman, told reporters in an interview.
The NREB head, quoting World Bank consultant Leonardo Lupano, revealed that Spain and South Korea were forced to drastically cut feed in tariff (FIT) rates which encouraged renewable energy players to build on solar generating capacity to as much as 3-gigawatt (GW), thus resulting in power rates increase. FIT refers to a fixed rate guaranteed to renewable energy developers over a period of time.
Maniego said the Spanish government was constrained to reduce FIT for solar energy and to set a cap on the installed generating capacity from solar energy to cut down their power costs.
Spain shared a similar experience with Mexico, Maniego said, after solar players built too much capacity because of the viable returns brought about by the FIT.
“Having said these, NREB would like to avoid similar problems in the Philippines. Moreover, both wind and solar could be considered as intermittent. The grid must have enough buffers to absorb and cover the sudden losses of power supply from these sources,” Maniego said.
He added that NREB could not recommend installation targets that are beyond the grid’s absorptive capacity.
Maniego explained they tried to maximize the installation targets for all of the technologies.
However, the installation targets were actually determined and recommended by the Department of Energy (DOE)
The DOE Renewable Energy Management Bureau, according to Maniego, could only confirm a total of 790-megawatt (MW) of total renewable energy generating capacity from 170-MW run-of-river hydropower plants; 370-MW biomass, 20-MW solar photovoltaic systems, 220-MW of wind generating capacity and 10-MW of ocean power generating capacity.
Maniego also noted that the DOE advised that some of the biomass contracts are being reviewed for compliance and that proponents of wind power projects have yet to complete their wind data collection.
“However, we are not closing the doors on these sectors to justify higher installation targets. But they have to satisfy the financial, technical and legal requirements under the guidelines of the DOE,” Maniego said.
He pointed out that the approval of the 830-MW installation targets were imposed conditions and could be adjusted depending on the Grid Impact study to be submitted by National Grid Corp. of the Philippines within the month.
In Photo: Renewable Energy sourced from the sun and the wind does not come cheap.
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