Gov’t sets targets to ensure progress in ‘clean’ energy dev’t

TOP GOVERNMENT officials yesterday vowed to speed up support systems for renewable energy development, admitting that progress on this front in the power sector has been slow.

In his speech at the start of the two-day Renewable Energy Conference at the Dusit Thani Manila, Energy Secretary Jose Rene D. Almendras admitted that implementation of Republic Act 9513, or the Renewable Energy Act of 2008, has been hobbled by delays. “We admit there have been some delays in implementation of the law. This is because there are certain processes that will have to be followed in accordance with the law,” he said.

In his speech, President Benigno S. C. Aquino III told investors the government would offer tariff incentives and investment guarantees to developers using wind, solar, run-of-river-hydro, biomass and ocean resources. “This shift in energy sources is a difficult task to do alone. We need your help,” Aquino said.

Mr. Almendras said in his speech that, in order to prod development in this field and thus entice much-needed investments, his department aims to come up next year with renewable portfolio standards and feed-in tariff rates, as well as connect the main grid to all operational renewable energy plants.

Formulation of renewable portfolio standards, which will set the capacity needed from each renewable technology, is set for the second quarter of 2011; feed-in tariff rates that will provide guaranteed payment to renewable technology investors through a universal charge will also be due that same quarter; while connecting the main grid to all existing renewable energy plants is targeted for the third quarter.

In line with the target to set feed-in tariff rates by next year, Mr. Almendras announced the new members of the National Renewable Energy Board (NREB), namely: Arnulfo M. Ocampo; Rosario B. Venturina, Jaime Benito, Jr.; Francisco F. del Rosario; Mark U. Dia and Ernesto B. Pantangco. The NREB, chaired by Pete H. Maniego, is the body tasked to recommend feed-in tariff rates for approval by the Energy Regulatory Commission.

Mr. Almendras said the share of renewable energy in the country’s generation mix would probably decline in the next five years from 52% now, as more coal-fired facilities come on stream. “What I would like to propose is that, starting 2015, all the new energy requirements should (be from) the ’green’ energy sector. Our target is double our capacity in 20 years,” he said.

The government had generated investment pledges of more than P80 billion (about $1.8 billion) for renewable energy projects in the last two years, but that is a pittance against at least $40.6 billion needed to secure the country’s energy requirements until 2030, Mr. Almendras said.

Renewable energy comprises a third of the Philippines’ power needs now, but studies show the country’s renewable energy potential is 25 times more than its uses, he said.

Federico R. Lopez, chairman and chief executive of geothermal and hydro power firm Energy Development Corp., said in his speech that, in the next five years, Luzon will need a capacity of 1,500 megawatts (MW); the Visayas, 150 MW and Mindanao, 400 MW, thus, offering huge investment prospects.

But he said cutting the cost of renewable energy was a major challenge. “Despite minimum operating costs, emerging renewable technology has relatively high capital costs.” — Emilia Narni J. David and Reuters