Six hydro plants clear for building

Business Mirror

Posted on July 14, 2013 10:37:35 PM

THE ENERGY department has greenlighted the construction of six hydropower projects following declarations of commercial feasibility, data from the department’s Renewable Energy Management Bureau (REMB) showed.

According to the data, as of end-June, the department confirmed the “declaration of commerciality” of six projects with a combined capacity of 47.6 megawatts (MW).

Hydrocore, Inc. will build the 4.5-MW Ibulao hydroelectric plant in Lagawe, Ifugao, while Constellation Energy Corp. will work on the 3-MW Dupinga plant in Gabaldon, Nueva Ecija.

Oriental Energy and Power Generation Corp. will build the 18-MW Timbaban plant in Madalag, Aklan, and the 10-MW Culaman plant in Manolo, Bukidnon.

Hedcor Tudaya, Inc. will build the 7-MW Tudaya plant in Sta. Cruz, Davao del Sur, and Century Peak Energy Corp., the 5.1-MW Igbulo plant in Igbaras, Iloilo.

The data showed that there are still 36 hydropower projects under the department’s evaluation.

The Energy department has issued similar certificates to seven other companies, entailing “declaration of commerciality” of five wind projects and two solar projects.

The wind projects are an 87-MW project in Burgos, Ilocos Norte, by Energy Development Corp.; a 67.5-MW project in Pililla, Rizal, by Alternergy Wind One Corp.; a 54-MW project on Guimaras Island by Trans-Asia Oil and Energy Development Corp.; a 50-MW project in Nabas, Aklan, by PetroEnergy Resources Corp.; and an 81-MW project in Pagudpud, Ilocos Norte, by Northern Luzon UPC Asia Corp.

The solar ventures involve Philippine Solar Farm-Leyte, Inc. undertaking a 30-MW project in Ormoc, Leyte; and ATN Philippines Solar Energy Group, Inc., which will develop a 30-MW project in Rodriguez, Rizal.

Mario C. Marasigan, the Energy department’s REMB director, said in a phone interview on Friday, “Developers who receive certificates confirming declaration of commerciality can proceed with the construction of their renewable energy projects.”

“The confirmation also signifies that these projects are intended to be applied under the FIT (feed-in tariff) once they finish construction and start their commercial operations,” Mr. Marasigan added.

Under the FIT, renewable energy developers will dispatch the capacity of their projects to the grid at a fixed rate for a period of 20 years.

The Energy Regulatory Commission approved, in July last year, FIT rates for these renewable energy projects: run-of-river hydro (P5.90 per kilowatt-hour), biomass (P6.63/kWh), wind (P8.53), solar (P9.68/kWh).

The rates are based on the assigned installation targets per technology, with a total 750 MW. Run-of-river hydro and biomass projects have a target 250 MW each; wind power, 200 MW; and solar power, 50 MW.

Mr. Marasigan said the department will issue a certificate of eligibility to developers on a “first come, first serve” basis.

“Once an installation target has been fully subscribed, the DoE (Department of Energy) will coordinate with the NREB (National Renewable Energy Board) to review and assign a new installation target for the particular renewable energy technology,” Mr. Marasigan said.

He added that those who intend to apply their projects under FIT but fail to fall under the installation targets, in the meantime, will have to sell their capacity through a bilateral agreement with a power distributor or through the Wholesale Electricity Spot Market. -- Claire-Ann Marie C. Feliciano  source