A finance expert in clean energy generation said the Philippines had great investment potential in mini-hydroelectric power projects and has called for more support and investments in renewable energy projects.
At the 3rd Annual Power & Electricity World Philippines Conference, Victor Lee, CFO of Repower Energy Development Corp. (REDC), called on fellow investors to give priority to mini-hydropower projects.
Investors are showing signs of more interest in small hydropower investments in the country, Lee said, due to a feed-in tariff (FIT) system and the government’s desire to cultivate its renewable sector and achieve its commitment in the 2015 United Nations Climate Change Conference or COP21.
In July 2012, the ERC approved FIT rates for run-of-river hydro (P5.90 per kilowatt-hour or kWh) for an installation target of 250 megawatts (MW), biomass (P6.63/kWh) for 250 MW, solar (P9.68/kWh) for 50 MW and wind (P8.53/kWh) for 200 MW.
His company, REDC, a subsidiary of Pure Energy Holdings Corp., has broken ground on three mini-hydropower projects, one of which is the recently acquired oldest operating mini hydropower plant of Philippine Power & Development Co. (Philpodeco) that has stood since 1927. REDC’s upgrade is expected to result in a 200-percent increase in nominal power capacity and 800-percent increase in the energy generation output.
“Our run of river mini hydro development projects all have service contracts with the Department of Energy (DOE) for 25 years which may be extended for another 25 years. This could potentially last for 50 years which is very attractive for investment,” he said.
Lee said the incentive scheme for the sector was more attractive, involving single window clearances for such projects including sites, clearances, survey, and investigation of such projects to interested developers.