DOE inks $1.5-billion renewable energy deals

MANILA, Philippines - The Department of Energy (DOE) signed yesterday at least $1.5 billion worth of renewable energy contracts, signifying the continued confidence of both local and foreign investors on the emerging RE industry.

The DOE awarded 68 mini-hydroelectric, five geothermal and 17 wind energy projects with total estimated investment of $1 billion.

For biomass projects, the DOE approved 22 service contracts amounting to P19.9 billion or about $500 million.

Energy Secretary Angelo Reyes said the signing of the 112 RE contracts is an indication of the continuing interest of investors in the country’s power industry.

“People are expressing confidence in investing in the RE sector because we have a renewable energy law passed a little over a year ago that accorded fiscal and non fiscal incentives to RE. And we’re now seeing the fruits of efforts of RE law which is a model other countries are trying to imitate,” he said.

Reyes said this is also an indication of the growing awareness on the significant role of RE in combating the worsening impact of climate change.

“This is good news and it is expected that these investments will address not only our requirements for additional power but address problems of climate change and at the same time try and drive the economy towards growth and development. With investments, you have additional jobs, additional income, and additional resources available for government for its infrastructure projects,” he said.

The DOE, through its Renewable Energy Management Bureau, signed the Renewable Energy Service Contracts (RESCs) in a follow up to the two successful signing held on Sept. 14, 2009 and Oct. 23, 2009 with seven contracts ($983 million) and 87 contracts ($2 billion) respectively.

The new contracts signed on hydropower, geothermal and wind projects will generate an estimated capacity of 2,007.5 megawatts.

The companies awarded with RE contracts are: AVGarcia Power Systems; Benguet Electric Cooperative Inc.; Century Peak Energy Cooperative; Energy Development Corp.; First Gen Bukidnon Power Corp; First Gen Mindanao Hydro Power Corp; First Gen Trans-Asia Renewable Energy Corp.; Firstmaxpower International Corp; HEDCOR; Luzon Hydro Corp.; Mindanao Energy Systems, Inc; Northern Luzon UPC Asia Corp; Northpoint Wind Power; Oriental Energy and Power Generation Corp.; PNOC-Renewable Corp; and Trans-Asia Renewable Energy Corp.

For the biomass projects, the companies are: Hawaiian Philippines Co.; Lopez Sugar Corp.; Binalbagan-Isabela Sugar Miling; Central Azucarera Don Pedro Inc.; Sagay Central Inc. Capiz Sugar Central Inc.; Roxol Bionergy Corp.; Sweet Crystals Integrated Sugar Mill Corp.

BASECOM Inc.; Davao Sugar Central Co. Inc; BUSCO Sugar Milling Co., Cotabato Sugar Milling; Central Azucarera dela Carlota; Eurotiles Industrial Corporation; Asea One Power Corp; San Carlos Bionergy Inc.; First Farmers Holding Corp.; Bataan 2020; Bacavalley Energy Inc.; and Hacienda Bio Energy.

The new biomass projects are expected to bring about 256.7 MW additional power to the country within the next two to five years.

With the passage of the RE bill in December 2008, the DOE expects to raise around $9 billion to $10 billion from renewable energy projects in the next 10 years.

The DOE said this target will effective raise the RE sources capacity to 9,000 MW or double the existing 4,500 MW.