Government slows down RE contracts award

MANILA, Philippines – The government has slowed down the award of renewable energy (RE) contracts even as applications increased as of end-November 2015, Department of Energy (DOE) data showed.

Only one RE project was awarded with a contract at the end of the period, totaling to 617 contracts with a generating capacity of 12,273.61 megawatts (MW).

Of the total, 578 were for grid-use while 39 were for self-generation, the DOE data showed.

Hydropower projects made up most of the list at 344, followed by solar developments at 110. Meanwhile, there were 63 biomass, 52 wind, 41 geothermal and seven ocean energy contracts.

However, the DOE data showed pending contracts reached 291 at end-November from 272 a month ago. These projects have a potential capacity of 5,012.93 MW.

Bulk of these projects are hydropower developments with a potential generating capacity of 2,696.37 MW.

Other contracts that are pending are 70 solar projects, 13 wind, five biomass and two each for ocean energy and geothermal developments.

In a similar development, the DOE has postponed the awarding of RE contracts auctioned under the second open and competitive selection process (OCSP 2) to this year, originally targeted last September.

DOE Renewable Energy Management Bureau director Mario Marasigan said the evaluation process took longer-than-expected due to “difficult evaluation and good offers.”

Awarding of contracts dragged even as the agency has long been pushing for RE development as a means diversify the country’s power sources that will ensure adequate power supply.

Under the National Renewable Energy Program (NREP), the Philippines is targeting to have RE-based capacity of 15,304 MW in the next 15 years.