DOE mulls inclusion of renewable energy projects in bidding rounds

MANILA, Philippines – To further boost renewable energy development in the country, the Department of Energy (DOE) will likely include renewable energy projects in the Philippine Energy Contracting Round (PECR).

“We are studying that thoroughly,” Energy Undersecretary Ramon Oca told reporters.

Oca said the DOE has been working to improve the data gathering process for renewable energy projects so it could determine their inclusion in the PECR.

For his part, Energy Utilization and Management Bureau head Mario Marasigan said the addition of RE projects in the PECR would help in the promotion of the projects.

Marasigan said this initiative may go in tandem with ongoing efforts to come out with the RE law’s implementing rules and regulation (IRR) by next month.

“We are still collecting data. After we complete this, we will see if these projects can be included in the PECR,” he said.

Meanwhile, Oca said interested investors for coal projects have until June 8 this year to complete their requirements.

“We expect them to submit by the deadline because majority [of the coal projects] are nominated [by investors],” he added.

Earlier, Oca said they would have to study the impact of the RE law’s IRR on geothermal development before launching PECR for geothermal exploration areas.

He noted that under the new law, some fiscal incentives have to be incorporated in the geothermal contracting round.

“Under the new Renewable Energy Act, there are some amendments to the law especially in terms of incentives and fiscal regime, so we have to look at that, so we have to come up with a new model for the geothermal energy contracts. We should now incorporate the new provisions of the law,” he said. 

The new guidelines, he said, would also speed up the process of approval of the contracts.

This will effectively trim down the number of days that an approval of an exploration contract will be released.

The Philippine government has embarked on an aggressive development of the country’s energy resources through improved contracting and bidding schemes and enhanced fiscal incentives in its quest to increase the country’s energy self-sufficiency.

In 2003, the DOE launched PCR-1 wherein exploration blocks near oil producing areas in Northwest Palawan and in vast frontier basins in Southwest and East Palawan, Sulu Sea and Reed Bank were offered to investors. As a result, two blocks were awarded to BHP Billiton Petroleum with Service Contract 56.

Since December 2004, about 16 petroleum exploration service contracts have been awarded with minimum financial resources amounting to $ 215.31 million committed to the proposed work program. — Donnabelle Gatdula