MANILA, Philippines - The Department of Energy (DOE) signed yesterday an estimated $1 billion worth of renewable energy (RE) contracts with a combined capacity of 379 megawatts (MW).
Energy Secretary Angelo Reyes told a press conference that they have inked service contracts and certificates of registration to seven RE companies mostly engaging in wind power development.
While Reyes did not indicate the exact amount to be raised from these RE projects, as a rule of thumb, wind power development would need an investment of $2.5 million per MW; hydro, $2 million; and biomass, $3.5 million.
Energy Logics Philippines Inc. of the Delgados is the biggest project proponent as it seeks to undertake a 120-MW wind power project in Pasuguin-Burgos, Ilocos Norte.
Petro Energy Resources Corp., on the other hand, will have two new wind energy service contracts in Nabas-Buruanga-Malay, Aklan and in Sual, Pangasinan with estimated capacities of 30 MW each.
The DOE also approved Lopez-owned Energy Development Corp.’s 86-MW wind power project in Burgos, Ilocos Norte.
Another wind power contract was awarded to Northern Luzon UPC Asia Corp. which will put up a 50-MW wind energy farm in Pagudpud, Ilocos Norte.
Meanwhile, Oriental Energy & Power Generation Co. will embark on a new hydro energy service contract in Madalag, Aklan with an 18-MW estimated capacity.
Mariwasa Siam Ceramics Inc. also received its certificate of registration for biomass gasification for its own-use.
The tile manufacturer will construct an estimated 45-MW facility in Sto. Tomas, Batangas.
Reyes said the contract package is an indication of keen interest from RE investors with the passage of the Renewable Energy Act.
“With these projects, a total capacity of 379 MW, renewable energy is really coming strong this year. I am very enthusiastic how these projects will pan out in the coming years,” Reyes said.
The energy chief said they are currently processing a number of other RE projects. This year, they hope to sign more than 10 RE projects.
“The many applicants in the regional and global community show that they recognize the potential of the Philippines in the renewable energy sector,” Reyes said.
DOE assistant secretary Mario Marasigan said there are about 70 RE projects in the pipeline of 50 which are mini-hydro power projects, 20 are wind power and one an ocean power project.
With the passage of the RE Act in December 2008, the DOE expects to raise around $9 billion to $10 billion from renewable energy projects in the next 10 years. This target will effectively raise the RE capacity in the country to 9,000 MW or double the existing 4,500 MW.