Gov’t awards 26 contracts for ‘green’ projects

MANILA, Philippines--The Department of Energy awarded Friday 26 service contracts for the development of renewable energy sources, with investments expected to reach as much as P12.46 billion ($277 million).
“We’re encouraged by the enthusiastic reception the investing community has shown [in the renewable energy sector]. The country has no other way to go but renewables— we have to wean away from our dependence on fossil fuels,” Energy Secretary Angelo T. Reyes said in Friday’s signing ceremonies.
According to Reyes, the 26 renewable energy service contracts, which are expected to generate as much as 466.3 megawatts, consisted of six contracts for hydropower projects, one for ocean energy, six for geothermal, five for wind, and eight for biomass power projects.
The latest signing would be the fourth round of contract signing conducted by the DOE as it moves toward attaining the government target of doubling the power generated from renewable energy sources to 10,000 megawatts by 2020 from 5,500 MW as of 2008.
The companies that were awarded with service contracts included Bell Pirie Power Corp., Clean Rock Renewable Energy Resources Corp., Energy Development Corp., Green Power Panay Phils. Inc., Natural Power Sources Integration Inc., Pan Pacific Power Corp., PNOC-Renewables Corp., Phil-Korean Energy Corp., SKI Construction Group Inc. and SKI Mini-Hydro Corp.
Also awarded were Basecom Inc., Capiz Sugar Central Inc., Cotabato Sugar Central Co. Inc., Davao Sugar Central Co. Inc., Hawaiian Philippines and Sweet Crystals Integrated Sugar Mill Corp.
Under a renewable energy service contract, companies will initially be given two years to undertake the pre-development stage, which involves the preliminary assessment and feasibility study up to financial closing of the renewable energy project.

The DOE targets renewable energy sources to contribute at least half of the country’s primary energy mix, from the current 43 percent. The increase in the power drawn from renewable energy sources would also help the government achieve its goal of 60-percent energy self-sufficiency, from the current 58 percent.
The government has awarded a total of 232 renewable energy service contracts as of Friday. Amy R. Remo inquirer.nethttp://business.inquirer.net/money/topstories/view/20100219-254164/Govt-awards-26-contracts-for-green-projects

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