DOE seeks new data on wind energy potentials

MANILA, Philippines - The Department of Energy (DOE) wants to update the data on the country’s potential for wind energy projects, an official said.

Talks are ongoing to conduct a study with the Asian Development Bank (ADB) following results of exploration projects showing that several wind energy service contracts (SCs) are not feasible, an official said.

“There is a proposal for ADB to help us with our wind resource mapping,” said DOE Undersecretary Jose M. Layug Jr.

Previous studies that indicate the country’s large potential for wind energy projects are generic and are subject for verification, Layug said.

A study of the US Department of Energy way back in 2009 said the Philippines has the potential to produce 76,000 megawatts (MW) through wind energy in different areas of the country.

These projects can be implemented in Northern Luzon and Eastern basin provinces like Mindoro, Panay, Negros and Palawan.

The DOE wants to provide a guidance for investors interested in wind energy projects.

“Remember we awarded 227 [renewable energy] contracts and then we sent show cause letter to 60 of them. Many of them surrendered the SCs because the project is not viable,” Layug said.

Layug said several companies returned SCs on wind energy projects following their own feasibility studies.

SC holders are allowed to conduct a two-year feasibility study to determine if the project will be pursued up to commercial operations.

Layug said that based on studies like the wind mass data, there are no winds that can be harnessed for viable commercial operations.

There are 227 SCs for various renewable energy projects that include solar, biomass, wind, geothermal and hydropower projects.

The $50-million, 33-MW Northwind Power Development Corp. in Bangui Bay in Ilocos North is the only major wind farm project in the Philippines.

But Layug said that even with an updated study, investors should validate the findings with their own feasibility studies.

In 2010, the country sourced just 0.01 percent of its energy needs from solar and wind projects, data from the DOE showed. Major green project contributors to the energy supply are geothermal (21 percent), biomass (13.1 percent) and natural gas (7.4 percent).

The government wants to introduce the feed-in tariff scheme, whose implementation is already delayed by almost three years. It guarantees investments of renewable energy firms through fixed rates that would be shouldered by consumers over a set period of time.