DOE soliciting P2.8T worth of new energy investments

Manila Bulletin
by Myrna Velasco
October 26, 2014

The Department of Energy (DOE) is soliciting P2.8 trillion worth of new energy investments, the bulk of which shall sustain the country’s electricity needs until year 2030, the Philippine Energy Plan showed.

DOE logoThe department noted that it will be scouring for capacity additions of 13,166.7 megawatts for a combination of baseload, mid-merit and peaking power facilities – with capital outlay spread from 2012 to 2030.

“The investment requirement to pursue and undertake the sectoral targets for this plan update is estimated at P2.8 trillion,” the energy department emphasized.

Less clear until this point, however, is the kind of balance that the department would really want to achieve in its energy mix given the current dominance of fossil fuel-based investments made in the sector.

Beyond embracing technology options, the department would also need to lay down parameters on how it will weigh cost impacts as to the policy alternatives or shifts that it will pursue onwards.

The DOE just plainly stated that “the country will need about 13,166.7MW of new capacities to meet domestic power requirement – energy demand and reserve margin.”

The PEP also further noted that “from the needed capacity, 1,766.7MW will be provided by committed power projects, while the remaining 11,400MW will be available for private sector investment.”

There was no specific reference made that even the projects-under-construction are actually ventures of the private sector, and that the government-run entities are just concentrating now on divesting the remaining assets of the National Power Corporation.

Meanwhile, roughly 2,100MW had been allocated for mid-range plant investments; and 900MW will be the peaking plants’ share in the pie.

Just for the country’s peak demand, the energy department indicated that such “will grow at an annual average rate of 4.3-percent over the planning period.”

Despite the government’s maneuvering for possible return into power generation sector via its proposed security assets, the DOE admitted that it “must intensify its initiatives to promote and showcase the various energy investment opportunities with the private sector.” source