DBP sets aside P50B for NRE projects
Friday, December 10, 2004
By Donnabelle L. GatdulaThe Philippine Star 12/10/2004
The Development Bank of the Philippines (DBP), a government financial institution, has committed to set aside P50 billion to help finance new and renewable energy (NRE) projects in the country.
DBP president and chief executive officer Reynaldo David said the fund, which remained untapped, would be loaned out to private investors solely for the purpose of funding NRE projects.
"It is available now but nobody has applied for the facility yet," David said in an interview during the Wind Summit, co-sponsored by the DBP and the Department of Energy (DOE). In the same conference, the DOE signed agreements with three companies to harness and develop the country’s rich wind power potential.
Highlighting the first wind power summit held at the Intercontinental Hotel, the DOE signed pre-commercial contracts (PCC) with Trans-Asia Renewable Energy Corp. and San Carlos Wind Power Corp. to explore, assess, harness and develop wind power projects in Sual, Pangasinan and San Carlos City, Negros Occidental, respectively.
The DOE also signed PCCs with Philippine Hybrid Energy Systems Inc. (PHESI) for four wind sites located in Marinduque; Baleno, Masbate; Abra de Ilog, Mindoro Oriental; and Tablas, Romblon.
Under the PCC, the proponents have two to five years to conduct studies to assess the wind potential of the areas. The proponents are also expected to submit to the DOE a work program detailing the activities to be done during the exploration period and the corresponding investment requirements. "We are very pleased that six of the 16 sites offered for investments have been taken.
The DOE is at present evaluating applications for four more sites. We hope to finalize very soon discussions with these companies," Perez said. The six sites already covered by PCCs have an estimated combined generating capacity of 140 megawatts (MW).
The 16 sites identified for private sector participation have a potential of up to 345 MW. "Six more remaining sites are still open for interested parties. We hope that as a result of the wind power summit, investors would seriously look at opportunities in the country’s wind energy,"
Perez added. These are in Pagudpud, Ilocos Norte; Bayog, Ilocos Norte; Bulalakaw, Mindoro Oriental; San Remegio, Antique; Carranglan, Nueva Ecija and Nuventa, Surigao del Sur.
A study made by the United States Department of Energy- National Renewable Energy Laboratory (NREL) showed that the Philippines’ wind potential could power up to 76,000 MW. The same study noted that 47 out of 73 provinces in the Philippines have at least 500 MW of wind potential and another 25 provinces with at least 1,000 MW.
Another study conducted by the WWF showed that 1,038 wind sites in the country could generate about 7,404 MW of electricity. The WWF study identified 686 wind potential sites in 28 provinces in Luzon or equivalent to 4,900 MW. A total of 305 wind sites with a total potential of 2,168 MW can be found in Visayas. About 47 sites in Mindanao have a potential of generating 336 MW of electricity. At present, there are two wind power projects in the country.
The construction of the 25 MW NorthWind Bangui Bay project located in Bangui, Ilocos Norte is underway. Considered as Asia’s largest wind farm, the $35 million project is expected to come on stream by mid 2005.
Last August, Perez inaugurated the 1.1-MW wind hybrid power plant located in Batan Island in the northern province of Batanes. The project is seen to help reduce the country’s dependence on imported fuel. Small islands such as Batanes heavily rely on imported fuel for power generation given that these areas are located off the main power grid
posted by philpower @ 9:11 AM,
