Spanish firm eyes energy project
Monday, December 04, 2006
By MYRNA M. VELASCO
An investment mission from Spain has been in the country exploring various business opportunities, including those in renewable energy and alternative fuels.
The group, which was arranged by Spain’s consular office in Manila, paid visit to the Department of Energy (DoE) last Wednesday (November 29) embarking on preliminary discussions on what the energy sector can offer as investment prospects.
"The Spanish commercial attaché arranged a meeting with our DoE investment group. They are willing to pour in sizeable investment for renewable energy and alternative fuels development," DoE director Mario C. Marasigan told reporters.
Aside from renewable energy, the energy official noted that the Spanish investors are also keen at potential capital infusion in various compressed natural gas (CNG) facilities.
The country has outlined renewable energy development and alternative fuels promotion among its long-term policy agenda in keeping with goals to shore up the country’s energy self-sufficiency.
In the sphere of renewable energy investments, the government sets an ambitious target of doubling the capacity of renewable energy-based generation capacity to 9,147 megawatts by 2012 from 4,449 MWs in 2005.
Apart from aggressive developments initiated in hydro and geothermal resources, novel initiatives are intended for massive investment enticements in wind power facilities.
The goal laid down by the energy department is in fact to position the Philippines as largest wind energy producers in the whole of Southeast Asia.
To be underpinned by the proposed Renewable Energy Act, the department vowed to exhaust all measures available to push for set of "pioneer incentives" that will be granted to investments in renewable energy projects.
One of the perks being pursued is the grant of a six-year income tax holiday as prescribed under the Omnibus Investment Code to potential renewable energy investments.
As proffered in the legislative proposal, one of the enticements shall include a green pricing mechanism to promote consumer choice for environmentallyfriendly fuel, primarily those running on renewable energy.
There have also been proposals to allocate minimum amount of generation capacity; promotion of the use of hybrid systems and applications; provision of fiscal incentives and declaration of renewable energy incentives.
With "green pricing", it was noted that there would be a premium to the cost of electricity that represents the price every consumer would have to shoulder for preferring a cleaner energy.
posted by philpower @ 9:47 AM,
