Renewable energy tech still costly

Subscribe Now February 27, 2011 at 12:26am

Cost of Renewable Energy (RE)investments remains the toughest challenge battled by the Energy Department as it balances technology without having to increase the cost of the product. Energy Undersecretary Jose Layug told the Davao media yesterday that the department continues to encourage more investors to tap the RE sector as this is considered the best means to fill in the energy requirements of the country.

There are 225 contracts held by the Department of Energy (DOE) with private investors since 2008 until 2010. Ten percent of which is considered operational while the rest are on pre-development stage.

DOE is targeting the installation of an additional 1,200 MW of geothermal capacity within the next ten years, resulting to an increase of about 60 percent from the 2002 level of 1,931 MW. Philippines hopes to improve its ranking as the second largest geothermal producer in the world.

For hydro, DOE aims for 2,950 MW of additional capacity to be installed within the next ten years on top of the 2002 level of 2,518 MW, reaching a total of 5,468 MW by 2013.

“We expect more RE investments this year as the country has the most robust RE law,” said Layug.

DOE officials were in the city yesterday for the Regional Public Consultations for the Rules Governing the Establishment of the Renewable Portfolio Standards (RPS)

The Renewable Portfolio Standard is a market based policy that requires the mandated electric power industry participants such as the distribution utilities and renewable energy generators and suppliers to source an agreed portion of their energy supply from eligible RE resources.

The purpose of the RPS is to contribute to the growth of the renewable energy industry by diversifying energy supply, spur socio-economic development in rural areas, and help address environmental concerns of the country by reducing harmful emissions.

The Rules which was reviewed will identify, among others, the installation targets for all renewable energy resources in accordance to the National Renewable Energy Program.


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