P2-billion trust fund for renewable energy set

TIWI, Albay, Philippines — The Department of Energy (DOE) will set up a P2-billion trust fund to support the development of renewable energy in the country.

DOE assistant secretary Mario Marasigan said the fund is part of the overall framework of the renewable energy (RE) law.

“When the RE bill was proposed, we originally target to create a fund amounting to P2 billion over the next five years,” he said.

Marasigan said a major portion of the proposed fund will be allocated specifically for research and development of RE technologies while some will be used to finance RE projects.

The fund, he said, would come from various government agencies, with around 1.5 percent of Philippine Amusement and Gaming Corp. (Pagcor) revenues being eyed.

A similar contribution, he said, is also expected to come from the Philippine Charity Sweeptakes Office (PCSO).

“It is like advocates of social welfare will also be a main contributor to a cleaner environment by supporting the RE Fund,” he said.

Marasigan said the Philippine National Oil Co. (PNOC) will also allot part of its budget for the fund. The DOE will also contribute a portion of its collection from royalties for other resources.

Some of the penalty payments of violators of the RE law will also go to the fund.

Through its creation, the fund will allow the Philippines to become one of the world’s RE technologies hub.

He said the fund will be administered by the DOE and will be deposited in a government financial institution.

To guarantee the efficient disbursement of the fund, Marasigan said the National Renewable Energy Board (NREB) will supervise and oversee the process, and administrative frameworks of the RE Bill are the creation of the RE management.

With the signing of the implementing rules and regulations of the Renewable Energy Act, the Philippines is expecting to generate $9 billion to $10 billion in fresh capital from renewable energy development projects in the next 10 years.

Energy Secretary Angelo Reyes said there are already a number of interested investors that have lined up for pre-qualification at the DOE.

“Our objective is to double the power being generated from renewable energy sources from 4,500 megawatts to 9,000 MW in 10 years,” he said.

Based on estimates, a renewable energy project may need an investment of about $1 million to $2 million per megawatt.

Reyes said the Philippines has a potential capacity of 200,000 MW from renewable energy.

“Investors are aggressively coming in as they see the potential of RE development in the country,” he said.