DOE eyes one-stop-shop programs to promote wind power development

The Department of Energy (DOE) is looking at the possibility of setting up a one-stop shop program to promote wind power development in the country.

Energy Secretary Raphael P. M. Lotilla told reporters that the establishment of such a program is part of his recent discussions with the business communities in the US.

Among the areas that would be covered under the proposed one-stop shop is the applications for land rights.

"We’ll also be looking at possible refinements in the framework for wind power so that it will encourage those who have applied to develop the wind rights as quickly as possible," he said.

 He said getting the land rights is one of the concerns being faced by investors in wind power.

"For instance, the wind plant is privately-owned so even when you grant the wind rights the land rights do not come with the wind rights. So you have to negotiate separately for that. So we will explore ways of facilitating the investments in wind power industry," he said.   

Lotilla said there is a need to have some mechanisms that would help encourage the investors to pour in much needed capital in the power sector.

Based on DOE data, only P51.1 billion, or 22 percent of P176.1-billion investment needed by the industry in the next seven years have been committed by the private sector.

DOE data also showed that the total investments needed by the country for power generation until 2014 is estimated at P227.2 billion.

For the Luzon grid alone, the power sector would need a total investment of P75.5 billion to sustain growth from 2010 to 2014.

The bulk of Luzon ’s investment requirement of P71 billion has been seen to be cornered by indicative projects, totaling 1,950 MW.

So far, there are only a few companies that have been engaged and/or have signified interest to invest in the wind power sector.

Of the indicative projects for Luzon, it would be noted that 150 MW peaking plant is required in 2010 and an additional 450 MW peaking and mid-range power plants in 2011.

According to the DOE, some P4.5 billion will be needed for committed projects such as the 30 MW North Luzon Wind Power project and its 8.25 MW expansion.

The latest EPIRA status report also warned that these investments are crucial to prevent power shortages in the future.

"Given these projections and with the assumption that no additional capacity is made, the critical period will be in 2010/2011 (for Luzon) during which the reserve level is expected to fall than the minimum reserve level," it noted.

For Visayas grid, the report said it would require some P52.1 billion in capital investments till 2014.

The Mindanao grid, on the other hand, would need a whopping P99.5-billion capital to finance the expansion of power capacity until 2014.