Estrada gov't needs P14 billion to fulfill electrification promise

The Estrada administration needs at least P14 billion to fulfill its promise to energize the entire country within the next four years.

On the other hand, government expects to gain from developing renewable energy resources. It also expects to realize dollar savings from lower dependence on imported crude oil and refined products.

In a presentation yesterday, the Department of Energy (DOE) said the national government through the energy department has been able to involve the independent power producers (IPPs) and other major corporations in the rural electrification program.

According to Energy Undersecretary Cyril del Callar, government will not be able to meet its targets unless it involves the private sector.

"The National Electrification Administration (NEA) and the electric cooperatives can only handle about half of this target. Thus, the DOE embarked on its program in partnership with the private sector," Del Callar explained.

The private sector can either adopt a barangay for electrification, or extend its power resources to the adjacent communities if it is an independent power producer (IPP).

The Philippine National Oil Corp. Energy Development Corp. (PNOC-EDC) will energize 10 barangays in Ormoc, Leyte while Southern Energy Philippines plans to electrify 45 barangays in Pagbilao, Quezon.

Pilipinas Shell Petroleum Corp., Nestle Philippines Inc., Credit Suisse, and First Gas Holdings Corp. have formed a committee that will spearhead the Adopt a Barangay program.

Meanwhile, the energy department amended two critical department rules under Executive Order (EO) 215 on the participation of the private sector in power generation.

Energy Regulation (ER) 1-95 gives special treatment to investors entering projects classified as new and renewable energy sources (NREs) such as solar, wind and hydro. Prior to the amendments, NRE projects were treated much like the fossil-fired generation facilities like coal and fossil fuel.

"It imposes less stringent guidelines like no more five-year track record requirement, allows for an exemption from the 60-percent minimum thermal efficiency standards from its hybrid facilities, and the long-term supply agreement with the National Power Corp. (Napocor) is unnecessary," Del Callar added.