DOE eyes award of RE service contracts this month

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FRIDAY, 24 JUNE 2011 01:41 PAUL ANTHONY A. ISLA / REPORTER

THE Department of Energy (DOE) is expected to award some 40 to 80 new service contracts for renewable energy (RE) projects within the month, Energy Undersecretary Jose Layug, Jr. said on Thursday.

In an interview, the DOE official said most of the new service contracts to be awarded are mostly for hydropower projects and some wind and solar power projects.

Layug said the new service contract holders will have to undertake predevelopment studies on their respective project sites for two years, adding that project proponents need to determine if the areas covered have strong and consistent winds, or the amount of sunlight is sufficient.

He also made it clear that these service contracts will be included in the existing installation targets to be set by the National Renewable Energy Board (NREB).

For the installation targets, Layug explained these are for the existing 227 service contract holders.

NREB’s proposed installation targets totaling 830 megawatts (MW) of renewable energy—250 MW will come from hydropower projects, another 250 MW from biomass power projects, 220 MW from wind, and 100 MW each from solar and ocean technologies.

“In essence, these 40 to 80 are still in the exploration phase where they have to do a predevelopment study for two years from the time we  [could be able to] award,” Layug said.

Energy Secretary Jose Rene Almendras earlier said the government aims to triple the increase of the country’s RE portfolio to 15,000 MW by 2030 because of the continuing increase in the prices of coal and oil in the global market.

During the recent launch of the National Renewable Energy Program (NREP), Almendras said RE currently accounts for 33.2 percent—or 5,438 MW—of the country’s total installed power-generating capacity, and 31.7 percent—or 4,413 MW—of the total dependable power-generating capacity.

According to the US National Renewable Energy Laboratory, the Philippines has an abundance of  RE resources, with estimates as high as 200,000 MW to 276,000 MW in potential capacity.

But Almendras said the figures are still subject to validation. “We are in a catch-up mode [in] RE.

The NREP should have been crafted right after the passage of the law in 2008. Nevertheless, we hope that the NREP will further enhance the country’s RE thrust as we face different issues on environmental and supply stability in terms of power, alongside the concerns of power users with power costs,” Almendras said.

He, likewise, emphasized the importance of the road map for the country’s emerging renewable-technology market.

In his speech, President Aquino said the government will keep a “watchful eye” in ensuring that the NREP would be advantageous to all those participating in the program.

“What we will do is mitigate the impacts of these emerging technologies so as not to cause a shock to our consumers. We want to pave the way for the maturity of our RE sources, such that we can provide predictable, affordable and fair electricity pricing for each and every Filipino,” Mr. Aquino said.

The President also said the development of clean energy was one of the immediate priorities of the government.

He said the administration will vigorously support initiatives to support RE development by way of policies and guidelines that will ensure a level playing field, transparency and fair electricity pricing.

“The NREP is a plan, and like all plans, it is not cast in stone. It must be constantly reviewed and updated to be able to adjust as new technologies develop.

As a living document, the NREP will be regularly reviewed and updated, guided by our primary goal of providing clean and affordable energy sources to future generations of Filipinos,” Almendras said.

The NREP, he added, incorporates a sectoral subprogram that includes the implementation of regulatory, administrative and support services; resource development that will involve renewable-energy resource-mapping and assessment, market studies, socioeconomic and environmental-impact studies, and studies on nonpower applications of  RE; research, development and demonstration projects; and RE technology support with the view to developing local capacities.

In all of these, Almendras said the key word is sustainability, which is attainable through closer interagency collaboration not only in the government sector but also with private institutions.

He added that a regular review of the NREP is needed to ensure that it remains relevant and responsive to the needs of the country and our consumers.

“In the end, the beneficiaries of RE development and utilization are the future generations, who shall benefit from the clean environment and the socioeconomic growth brought about not only by hard currency savings in avoided fossil-fuel imports, but, more sustainably, by employment generation and increased economic activities with more private-sector investments coming into the sector,” Almendras said.