The Department of Energy is expecting about P1.2 trillion in fresh investments in the renewable energy sector over the next 20 years, as it pushes for the increased use of these resources to help secure the country’s energy supply in the long term.
Based on the National Energy Renewable Plan (NREP) book, these investments will cover the construction of renewable energy facilities harnessing either biomass, solar, hydro, ocean or wind, and which can generate a combined 9,865.3 megawatts by 2030.
Of the P1.2 trillion, about P17 billion was reported to have already been committed by the private sector for the development of projects that can generate a total of 124.6 MW. The remaining P1.15 trillion would be needed for the development of indicative projects—or those that have yet to reach financial closing—with an aggregate capacity of 9,740.7 MW.
Data from the NREP book showed that of the P17 billion in committed investments, P9.45 billion would go to the geothermal sector for an additional 70 MW in capacity. The biomass sector follows, with investments of P4.59 billion for a 26.8-MW capacity. Committed hydropower projects are seen to deliver 27.8 MW at a cost of P3.13 billion.
In the meantime, the bulk of the investments for indicative projects or about P680 billion will be infused into the hydro sector, which is expected to deliver 5,366.3 MW in 310 proposed sites nationwide, the NREP book showed.
This was followed by the wind sector with required investments of P211 billion to produce 2,345 MW from 57 sites, most of which are in Luzon. The geothermal sector will provide an indicative capacity of 1,425 MW from 32 sites at a cost of P192 billion.
An indicative 284-MW capacity is expected to be generated from solar energy in 20 sites, with investment requirement hitting P32 billion.
The biomass sector, the NREP book stated, will require P28 billion to produce an indicative 250 MW from 20 sites nationwide, while the ocean energy sector would need P11 billion for 20 indicative power projects.
Local renewable energy developers, according to the NREP book, may tap a number of funding sources which may include multilateral organizations through their clean technology or clean energy financing windows, the RE trust fund, bilateral partners and the private sector.
The Aquino administration earlier vowed to ensure that a three-fold increase in the use of renewable energy resources would not jack up electricity prices unnecessarily over the next two decades.
President Aquino said the government, by way of policies and guidelines, would “ensure level playing field, transparency and fair electricity pricing.”