DOE fast-tracks rollout of RE projects

MANILA, Philippines -  The Department of Energy (DOE) said it will fast-track the rollout and approval of renewable energy (RE) projects this year.

As many as 15 renewable power generation projects under application might be approved every month while around 50 hydroelectric sites in Luzon and Visayas will be bid out starting in the second half, an energy official said.

“What we are set out to do this year is that every month, we will slowly process all [applications]. Our target will be 10 to 15 service contract approvals every month,” DOE Undersecretary Jose M. Layug Jr. said.

To date, there are 222 pending applications for service contracts on renewable energy, the bulk of which are for hydropower projects.

About 191 of these applications involve hydropower projects, 70 for solar, 59 for wind, 28 for biomass, 21 for ocean energy and 15 for geothermal projects. The renewable energy projects have a potential to generate 6,046.45 megawatts (MW) of electricity.

“The renewable energy service contracts are all under pre-development stage, this does not mean they will go commercial,” Layug said.

Firms that secure service contracts will still have to conduct a viability study that will be verified by the DOE, he said.

Furthermore, the DOE will try to divert from its first-come, first-serve business model to a competitive bidding process for 50 new hydropower projects.

“Actually, we are looking at about 40-50 run-of-river hydropower sites in Luzon and Visayas, with the assistance of Japan International Cooperation Agency (JICA),” Layug said.

“What we plan to do is by the third quarter this year, we will bid them out for purposes of awarding service contracts,” Layug said.

The JICA has completed a two-year study on the hydropower sites.

The DOE will conduct a bidding for the new hydropower projects. But first, the DOE will look at the legal, technical and financial qualification of interested investors.

“Usually, bulk of it depends on the work program proposal in the technical component. If they are the most aggressive, they will be awarded [with the service contract],” Layug said.