MANILA, Philippines - UK-based Global Green Power PLC Corp. will put up three biomass power plants in Panay, Nueva Ecija and Pangasinan at a total cost of P5.6 billion, a company official said.
Grace Yeneza, compliance director of Global Green Power, said the company, through its subsidiaries, will invest a about $40 million for each plant. The three plants have a combined capacity of 15 megawatts.
She said these projects are the first to be endorsed by the Department of Energy since the passage of the Renewable Energy Act in December and all recently received Board of Investment registration as pioneer projects.
The Panay project had its groundbreaking in Mina, Iloilo last May. This project is expected to help alleviate the power supply problem in Panay Island.
Energy Secretary Angelo Reyes noted that Panay experienced over 1,000 brownouts attributed to energy shortfalls in 2008 alone.
In line with the projects, Global Green signed a service contract with Poyry Energy Inc., said Bert Dalusung, Global Green CEO.
Dalusung said this comprehensive contract with Poyry has now led to the full speed implementation of the three projects, bringing clean, renewable, decentralized energy to Panay in particular.
With the signing of the implementing rules and regulations of the Renewable Energy Act, the Philippines is expecting to generate up to $10 billion in fresh capital from renewable energy development projects in the next 10 years.
Reyes earlier said there are already a number of interested investors that have lined up for pre-qualification at the DOE.
“Our objective is to double the power being generated from renewable energy sources from 4,500 MW to 9,000 MW in 10 years,” he said.
Based on estimates, a renewable energy project may need an investment of about $1 million to $2 million per megawatt.
Reyes said the Philippines has a potential of 200,000 MW from renewable energy.
“Investors are aggressively coming in as they see the potential of RE development in the country,” he said.