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According to
GREENPOWERPHILS, INC., The Philippines is one of the most favored countries in
the world with a high rate of sun irradiation and wind capacity.
With 30% of power
generation being powered by the renewable energy sector, Philippines could be a
world leader in renewable energy.
Recognizing the
significant role of renewable energy in combating the worsening impact of
climate change, the government took an aggressive
approach promote the renewable development and
utilization of geothermal, biomass, solar, wind and hydro resources in the
country.
The Renewable
Energy Act of 2008 or R.A. 9513, signed into law on December 16, 2008, affirms
the government’s commitment to accelerate the exploration and development of
renewable energy resources. It also mandates the development of a “strategic
program” to increase its usage.
In 2011 the
National Renewable Energy program (NREP) rules governing the establishment of
renewable energy portfolio standards in the Philippines (RPS).
Feed in tariff
(FIT) and FIT allowance approved in 2012. This policy mechanism was set up to
speed up investment by offering long term contracts to renewable energy
producers.
If you are in
search of possible financial energy projects, there are
various renewable energy investments
such as :
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| Bangui Windmills Photo by World Bank Philippines |
- Wind power: It is development in the country is gaining interest from potential investors. Based on the study conducted by the US National Renewable Energy Laboratory, the country holds the largest potential (76,000 MW) for wind energy among the Southeast Asian countries, located in six regions namely, the Batanes and Babuyan Islands; the Northwest tip of Luzon (Ilocos Norte), the higher interior terrain of Luzon, Mindoro, Samar, Leyte, Panay, Negros, Cebu, Palawan, Eastern Mindanao and adjacent islands, well-explored est facing coastal locations from Northern Luzon southward to Samar; the wind corridors between Luzon and Mindoro (including Lubang Island) and between Mindoro and Panay (including the Semirara and Cuyo Island).
The Philippines’
vast potential for solar energy applications is heavily anchored on
its geographic location which is just above the equator. It has been recorded
that the country’s average solar radiation, based on sunshine duration, is
161.7 watts per square meter with a range of 128 to 203 watts per square meter.
Solar power
technology has been instrumental in providing power to agrarian communities in
the countryside. The solar support project, initiated by the Philippine
National Oil Company (PNOC), has been crucial in this regard.
On geothermal energy, the Philippines
is the second largest producer in the world.
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HydroPower: Data
from the Department of Energy (DoE) showed that Hydrotec Renewables has nine
pending applications for renewable energy service contracts, which will allow
companies investing to pursue the
feasibility study for the proposed hydropower projects.
The DoE is also targeting between 2011 and 2030 to increase the generation capacity from hydropower facilities by another 5,358.30 MW.
The DoE is also targeting between 2011 and 2030 to increase the generation capacity from hydropower facilities by another 5,358.30 MW.
The 304 potential projects proposed before the government by
various developers and government agencies will require a total investment of
P654.98 billion.
Luzon currently hosts 186 sites, or more than half of the
total number of potential hydropower sites, which could generate an additional
3,701.7 MW.To generate this capacity, the private sector needs to invest a
total of P474.22 billion. The Mini-hydro law provides significant incentives to
promote small hydropower projects in the Philippines.
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Biomass: The country has abundant biomass resources
with installed capacity expected to reach 200 MW. Projects
located in Luzon will utilize rice hulls while those located in the Visayas
will use mostly bagasse which are abundant in the area.
With the growing
industrial demand, the Philippines still need
additional 4,000-4,350 megawatts to sustain its national requirements.
This is why projects using renewable energy sources continue to be the
preferred activities in the investment priorities plan (IPP). This means that
a wider scale of tax and non-tax incentive could be provided to investors.
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