The Philippine Department of Energy inked renewable energy contracts with seven companies worth US$ 1 Billion to deal with energy security and environment concern.
The Philippine Department of Energy (DOE) signed renewable energy (RE) contracts worth around US$ 1 Billion and a total capacity of 379 Megawatts, as reported by
PHILSTAR.
The Energy Secretary of Philippines said in a press conference that they had signed service and certificates contracts with seven renowned RE companies engaged in the development of wind power. The Department signed four new wind energy service contracts with three companies.
As per the contracts (based on the rule of thumb principle), the six companies will make a combined investment of US$ 983.5 Million in the Philippines renewable energy sector.
Moreover, the DOE Assistant Secretary said that around 70 renewable energy projects were in the pipeline of which 50 were related to mini-hydro power, 20 related to wind energy and one with ocean energy.
Angelo T. Reyes, Energy Secretary, said “With these projects renewable energy is really coming on strong this year. I am very enthusiastic how these projects will pan out in the coming years,” as reported by
INQUIRER on September 14, 2009.
The investment in Philippines wind power projects are expected to rise to nearly US$ 2.5 Million per megawatt. Meanwhile, Oriental Energy and Power Generation Corp. has signed a contract for 18 MW project in Madalag, Aklan. This project is likely to cost US$ 2 Million for each megawatt of hydropower.
Many applicants in the global as well as regional community have recognized the Philippines potential in the renewable energy sector.
The DOE has expressed confidence that more investors will show interest in the country’s renewable energy sector because the Renewable Energy Act of 2008 offers some attractive incentives.
Before the approval of the new law, renewable energy projects including solar, wind, hydro, geothermalNwere and biomassNexcluding largely avoided by domestic companies owing to their high cost and small market as compared to the traditional carbon based power plants.
According to a Research Analyst at
RNCOS, “These projects will not only help the country in energy security, sustainability, adequacy and affordability but will also help in dealing with environment concerns and employment across the country.”
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