26 October 2009 - The Philippines Department of Energy (DOE) has signed $2.2bn worth of new renewable energy (RE) contracts with 18 power companies.
"We are very happy to note that the Renewable Energy Act is working very well as reflected in the enthusiasm of investors in the RE development program of the country," said Rep. Miguel Arroyo, chairman of the House Committee on Energy.
He said the further development of RE projects will eventually redound to savings which will be passed on to consumers.
"We are optimistic that these projects will later on result to cheaper power for our people. These RE projects present a win-win solution for the country and the investors as well. Not to mention the good impact of these projects on the environment," he said.
He added that the National Renewable Energy Board (NREB) will soon release an attractive incentive package for investors.
The $2.2bn investment involves 87 renewable energy contracts granted to 18 companies for the development of biomass, geothermal, solar, hydropower, ocean and wind energy resources.
The contracts were made pursuant to Republic Act 9513, otherwise known as the Renewable Energy Act of 2008.
The new contracts involved five conversions from existing service contracts and agreements on geothermal and 17 on hydropower.
New RE projects consist the remainder of the contracts, which are anticipated to generate a total of 4042 MW of electricity, of which 1257 MW constitute additional electric power capacity.
Conversions from existing geothermal agreements with foreign contractor Chevron Geothermal Philippine Holdings Inc., were also initiated and endorsed to the Office of the President for approval.
Those awarded contracts by the DOE are Deep Ocean Power Philippines Inc. (DOPPI); Trans-Asia Renewable Energy Corp. (TAREC); Constellation Energy Corp (CEC); Century Peak Energy Corp.; PNOC-Renewables Corp.; Energy Development Corp. (EDC); 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. (APHC); DOST-Industrial Technology Development Institute; and Hedcor Inc.
The total additional power capacity from new RE projects to be installed within the next five years now runs at 1636 MW.