Business World Online
Posted on July 11, 2012 11:24:31 PM
THE GOVERNMENT is studying options for allocating renewable energy (RE) capacities to investors until installation targets per technology are reached, an official told reporters yesterday.
Options to allocate these capacities include auctions using feed-in tariff as the ceiling rate, equal allocation among qualified investors, letting industry players decide among themselves and a first come-first serve scheme.
“[I]f there are technologies that are oversubscribed, we would need to find a way to resolve who will be able to build under the installation target;” Energy Undersecretary Jose M. Layug, Jr. said the sidelines of the Platts Forum on Oil, Coal and Liquefied Natural Gas at the Edsa Shangri-La Manila.
“We are still studying these options and is talking with the stakeholders regarding how to best approach the issue.”
While contracts for renewable energy projects are currently awarded on a first come-first serve basis, the Energy department has noted there is “oversubscription for some technologies that go beyond the installation targets.”
As of January 9, there were 159 pending applications for hydropower projects, 26 for solar power, 21 for wind power, 15 for biomass, nine for geothermal and two for ocean power.
Most of the applications involve projects in Luzon.
Ever since renewable energy installation ceilings were introduced, some prospective investors -- particularly those in the solar power industry -- have complained of “a very low target.” -- ENJD source
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