Investors show keen interest in renewable energy projects in RP

MANILA, Philippines - More investors have signified keen interest to put up power plants capable of generating over 1,200 megawatts (MW) of electricity from renewable sources, a ranking Energy Department official said.

At the sidelines of the Earth Hour launch yesterday, Department of Energy director Mario Marasigan said renewable energy firms Amihan Energy, Deep Ocean Power, Global Green Power Plc., Sunwest Water and Electric Power Co. and Agus Corp. have expressed interest in renewable energy projects.

He said Amihan, composed of US and Filipino investors, is planning to put up a 100-MW wind energy project in Cebu.

Marasigan said the DOE is targeting the release of the implementing rules and regulations (IRRs) of the Renewable Energy Act by June this year.

“The law provides until the end of July for us to work on it. The June target is a self-imposed deadline,” Marasigan said.

He said they expect more investments to come in as soon as the IRR is finalized.

He noted that the law provides fiscal and non-fiscal incentives to renewable energy investors, including tax credits on domestic capital equipment and services, special realty tax rates on equipment and machinery, tax exemption of carbon credits, duty-free importation mechanisms and income tax holidays, among others.

Marasigan also said the law calls for the establishment of a Renewable Portfolio Standard (RPS) system, which would require electricity suppliers to source a certain amount of their energy supply from renewable resources such as wind, solar, hydro, geothermal and biomass.

“We will be on the road for public consultations starting next week and hopefully we will finish this by April. After April we will have the whole of May to consolidate all the inputs, consult with the other stakeholders,” he said.

There have been a number of projects that are lined up for RE but the DOE has yet to reveal them as the proponents have yet to submit their respective proposals. — Donnabelle Gatdula