DOE had not stopped RE service contracts approval, says Almendras

Business Mirror
MONDAY, 19 DECEMBER 2011 20:22 PAUL ANTHONY A. ISLA / REPORTER


THE Department of Energy (DOE) continues to approve and release renewable-energy (RE) service contracts following the adoption of a new set of terms that will help ensure the delivery of commitments by project proponents.


Energy Secretary Jose Rene Almendras dispelled rumors that the DOE had stopped issuing service contracts, stressing that the energy department had signed and approved over a thousand megawatts of hydropower and mini-hydropower plant projects in the past few months in areas “where it really works.”


He noted that in the past, the DOE released and issued service contracts without fixing the peripheral issues. This time, however, Almendras said the department, under his stewardship, would like to make sure that a project covering a particular service contract would get off the ground and be operationally viable.


“We know we have a lot of problems or challenges but we have the solutions and implemented [these] solutions. We’ve tested it and it works, so now it’s just [matter of] implementing it and we can expect it will continue,” he stressed.


As of July 4, 2011, a DOE report showed that 236 contracts have been awarded to RE developers, which have the potential to generate 2,822.97 MW of electricity.


Some 164 of the 236 contracts are currently on predevelopment stages, while 72 are on development stages.


On a per technology basis, the DOE said it has awarded a total of 124 contracts for hydropower, 3 for ocean energy, 21 for geothermal, 46 for wind, 2 for solar and 40 for biomass.


The energy department also said it has yet to award or approve 384 pending RE project applications.


The DOE said 191 of the 384 pending applications involve hydropower projects, 70 for solar, 59 for wind, 28 for biomass, 21 for ocean energy, and 15 for geothermal projects and have a potential combined capacity of 6,046.45 MW of electricity.


The biggest projects per technology resource are Pan Pacific Renewable Power Philippines Corp.’s 600-MW project in Apayao hydropower project; Coastal Power Development Corp.’s 420-MW wind power project in Sorsogon; Jobin-Sqm Inc.’s 100-MW solar power project in Zambales; Eoil and Gas Co. Inc.’s 60-MW geothermal power project in South Cotabato; and, Green Power Bukidnon Philippines Inc.’s 35-MW biomass power plant project in Bukidnon.