THE Department of Energy (DOE) said it has awarded 651 renewable-energy (RE) contracts, six years after the Renewable Energy Act of 2008 was enacted.
As of end-November this year, the agency said these contracts have a potential generation capacity of 10,040 megawatts (MW), against a total installed capacity of 2,500 MW.
Of the more than 600 RE projects awarded by the government, 404 are hydropower; 68 solar; 54 wind; 43 for biomass; 41 for geothermal; and five for ocean energy.
On top of these, there were 36 RE contracts awarded for self-generation of electricity. These include one each for hydro, eight for solar and 25 for biomass.
The latest DOE data also showed that there are 166 pending RE projects, 129 of which are hydro; 18 solar; five ocean; five for biomass; six wind; and two geothermal. The potential generation capacity of these pending RE projects could reach 1,386.05 MW, against an installed capacity of 697.8 MW.
Congress enacted Republic Act 9513, or the Renewable Energy Act of 2008, to reduce the country’s dependence on fossil fuels and minimize the Philippines’s exposure to price fluctuations in the international market.
Fluctuations in oil prices adversely impact almost all sectors of the country’s economy.
Under the National Renewable Energy Plan, the DOE aims to triple the country’s RE generation from the current installed capacity of 5,438 MW to 15,304 MW by 2030.
The DOE has already streamlined the process of RE applications—from two years down to just 45 days—to ensure that RE developers and investors will have an easier time in applying for RE service contracts.
To promote the use of RE on a larger scale and to attract new investments for RE facilities, the government is banking on the feed-in-tariff (FIT) system.
FIT is a premium rate paid for electricity fed into the grid from a designated renewable electricity generator, like solar energy system or wind power plant.
Approved by the Energy Regulatory Commission in July 2012, the FIT rate in the Philippines is considered one of the lowest in the world. The impact of FIT on the electricity rate, estimated at 2 centavos per kilowatt-hour, is marginal compared to the expected increase in the cost of traditional fossil fuels (like coal) in the coming years. This is why the DOE is pushing for the increase of the installation target for solar from 50 MW to 500 MW.
“The FIT is a testament that, while RE seems to be more expensive than traditional energy sources, admittedly, it is needed because it is essential to the country’s energy security,” Energy Secretary Carlos Jerico L. Petilla said.
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Switching to renewable energy will stimulate the economy, create jobs, save money and clean up the environment.”Global clean energy investment hit a record $260 billion in 2011. That’s five times as much as 2004. The shift to clean energy is already happening.” https://clmtr.lt/c/RCJ0fz0cMJ