Mandatory use of NRE by power distributors urged
Friday, December 10, 2004
By Donnabelle L. GatdulaThe Philippine Star 12/10/2004
The Department of Energy (DOE) has been urged to issue an order mandating all power generators or distributors to source out two percent of its total electricity generation and distribution activities from renewable energy sources.
This is part of the recommendations presented by various stakeholders to Energy Secretary Vincent S. Perez at the close of the first Wind Power Summit at the Hotel Intercontinental Hotel yesterday.
Aside from the mandatory two-percent renewable energy component from the power mix of all generators and distributors, other recommendations that were brought up during the summit are: the creation of a national wind resource assessment/monitoring program; priority dispatch for wind energy and other renewable energy sources; a mix of funding sources to ensure financial viability of wind power projects; and a proactive information campaign by developing a comprehensive database and network with stakeholders in the industry.
Renewable energy experts and enthusiasts, both in the local and international fronts, and other stakeholders in the energy sector participated in the one-day Wind Power Summit to identify strategies to aggressively pursue the development and utilization of wind power projects.
In a resolution submitted to Perez, the industry stakeholders identified specific recommendations in five key areas – policy, project development, technical, financial as well as in the information and education campaign.
The resolution also urged the DOE to make representations with the Energy Regulatory Commission (ERC) to fasttrack the implementation of the provisions under the Electric Power Reform Act (EPIRA) in the promotion of renewable energy and energy efficiency. Also, the resolution called for the creation of a renewable energy trust fund and incentives in the proposed renewable energy bill.
Concerning project development, the stakeholders urged the establishment of a national wind resource assessment/monitoring program and adequate incentives in wind resource assessment.
The resolution also advocated for a priority dispatch of electricity using wind energy and other renewable energy sources to further encourage investments in wind energy. It also urged funding agencies to make available a good mix of financing sources to ensure viability and sustainability of renewable energy projects, in particular wind power projects.
At the same time, the resolution called for a proactive information campaign by developing a comprehensive database and network among stakeholders in the industry. "Through the recently concluded Wind Power Summit and the recommendations presented here, we are optimistic that we are getting closer to achieving our long-term goal of increasing renewable energy-based capacity by 100 percent by 2013,"
Perez said. The DOE in June this year, launched the Philippine Wind Energy Program by offering 16 wind sites for private sector participation. Details of the country’s wind energy program as well as prospects and opportunities for the development, utilization and commercialization of wind power were summed.
Various incentives await investors willing to look at the Philippines’ wind potential. These incentives include waiver of production bonus on the first project and payment of production bonus to the government only after the project has fully recovered pre-operating expenses as stated under Executive Order 462, the law encouraging private sector participation in the exploration and development of ocean, solar and wind energy resources.
Other incentives include income tax holiday, reduced duty rates for imported capital equipments and other Board of Investments (BOI) mandated incentives. "Investors can also avail of financial assistance from lending agencies such as the Development Bank of the Philippines (UNDP), United Nations Development Programme-Global Environment Facility (UNDP-GEF) and Philippine Export and Import Bank (PhilEXIM),"Perez said.
posted by philpower @ 9:23 AM,
