Philippines: DOE awards contracts to harness renewable energy
Department of Energy (DoE) awarded 87 contracts to harness renewable energy on Friday, among them geothermal projects, new and conversion from existing service agreements. 18 companies have commited to invest a total of US$ 1.9 billion.
According to local news, The Philippines ” Department of Energy (DoE) awarded 87 contracts to harness renewable energy on Friday, the most number of deals signed in a day, to 18 companies committing to invest a total of P90.4 billion (US$ 1.9 billion).
The contracts covered the development of biomass, geothermal, solar, hydropower, ocean, and wind energy resources, and could generate 4,042 megawatts (MW) of power. Five contracts were conversions from existing service agreements involving geothermal and hydro power. New projects accounted for the remainder of the contracts.
The DoE said tax and other incentives provided by the Renewable Energy Act of 2008, which took effect in January, brought in these projects. Earlier investors have committed to produce 1,636 MW of renewable energy in the next five years, and this figure may go up when newer projects go into construction stage.
A total of 57 projects involved hydropower development, one of the more established renewable energy sources. The DoE has also endorsed existing geothermal agreements with foreign contractor Chevron Geothermal Philippine Holdings, Inc. to the Office of the President.
The companies given contracts were Deep Ocean Power Philippines, Inc.; Trans-Asia Renewable Energy Corp.; Constellation Energy Corp; Century Peak Energy Corp.; PNOC-Renewables Corp.; Energy Development Corp.; First Gen Bukidnon Power Corp.; Luzon Hydro Corp.; Lucky PPH International, Inc.; First Gen Mindanao Hydro Power Corp.; AV Garcia Power Systems Corp.; Benguet Electric Cooperative, Inc.; Alternergy Philippine Holdings Corp.; DOST-Industrial Technology Development Institute; Unisan Biogen, Corp.; AP Renewables Inc.; Mindanao Energy Systems, Inc. and HEDCOR, Inc.
From a current 4,500 MW capacity from renewable energy, the DoE is looking at doubling the figure to 9,000 MW in the next 10 years.
Among fiscal incentives offered by the Renewable Energy Act are income tax holidays for the first seven years of operation, tax-free carbon credits from renewable energy projects, tariff exemption, and duty-free importation of machinery and equipment for the first 10 years of operation. Power from renewable energy sources are also exempted from the value added tax.
Non-fiscal incentives, meanwhile, include a renewable energy portfolio standard, which includes the mandatory utilization of renewable energy power in grids, and priority dispatch for power produced from renewable energy resources.”
Source: Philippines Business World