Energy agency pushes approval of RE projects

Contrary to critics’ claims, the Department of Energy has not been remiss in its mandate to boost the local renewable energy (RE) sector as it even targets to sign at least 15 service contracts every month or a total 180 contracts for this year.

However, Mario Marasigan, director of the DOE’s energy utilization and management bureau, admitted in an interview that the department did not meet its quota for January and February this year. He expressed confidence that the DOE would be able to meet the total quota set for 2012.

Marasigan explained that the DOE was swamped with documents to evaluate as those developers who have been granted service contracts back in 2009 and 2010 were now coming back to the DOE either to apply anew and proceed with the development stage or give up the area. This was on top of the new applications being evaluated by the agency.

As of Jan. 9 this year, there were 222 pending applications for renewable energy service contracts. These proposed projects were expected to generate as much as 3,234.54 megawatts.

According to Marasigan, the DOE was also kept busy with other preparations as it targets to bid out by the third or fourth quarter this year as many as 50 new and untapped potential run-of-river hydro sites in Luzon and the Visayas for exploration and development.

Energy Undersecretary Jose M. Layug Jr. earlier explained that the government has decided to use the bidding model in granting renewable energy service contracts—as against the “first come, first served” scheme—in a bid to ensure a more level playing field for investors.