Solar power developers eye higher target

MANILA, Philippines - The Philippine Solar Power Alliance (PSPA) is targeting a higher installation target of 269 megawatts (MW) for solar energy projects.

The alliance is a multi-sectoral advocacy group supporting the development of solar power in the country.

PSPA said the 269-MW of solar farms would translate to about $800 million or P33.6 billion worth of investments as against only $150 million with a 50-MW target as earlier approved by the Department of Energy (DOE).

“We believe that this is in the best interest of the consumers and all stakeholders while furthering the cause of renewable energy in the country,” it said.

The approved 50-MW allocation for solar energy is a significant reduction from the recommendation of the National Renewable Energy Board (NREB) of 100-MW over three years.

It said much higher allocations have been given to other renewable energy sectors in order to minimize the cost impact to consumers but the Renewable Energy Act of 2008, “does not prioritize or discriminate against different RE technologies but calls for a balanced set of technologies, cognizant of the distinct features and applications of each.”

The cost impact to consumers is not as high as perceived and will actually help drive down electricity prices eventually, PSPA said.

The total feed-in tariff (FIT)-allowance to be charged to the consumers for renewable energy would actually be less than P0.05 per kilowatthour (kwh), PSPA said. Of this number, solar will contribute only less than a centavo.

Solar will also contribute a minimum of P1 per kwh savings on transmission costs due to direct, own-lines, connection to the distribution utilities.

“Solar and other renewable energy will provide much-needed additional capacity and displace very expensive peaking power, thereby reducing electricity prices in the future,” it said.

The group also said putting up solar power plants is the fastest among all energy technologies. A 10-MW solar power plant can be installed in less than six months due to the absence of fuel or environmental concerns.

In fact, 400-MW capacity of solar projects from around 40 solar developers are pending at the DOE.