Philippines risks losing investors in solar projects
Local solar developers have warned the government that the country could lose some $650 million (more than P27 billion) in potential investments in the energy sector if it kept the installation target for solar facilities at a mere 50 megawatts.
According to the Philippine Solar Power Alliance (PSPA), the 50-MW installation target would only bring in $150 million in investments, as opposed to a target of 269 MW, which could bring investments to as much as $800 million.
“The [difference of] $650 million in investments that proponents are already prepared to make in the Philippines will seek other markets instead and we will again miss this chance. The Philippines is not the only Asean country with sufficient [sunlight],” PSPA said in a statement.
The group also pointed out that the Department of Energy has actually announced an installation target of 269 MW for the solar sector during the National Renewable Energy Program launch last June. However, the initial submission to the National Renewable Energy Board saw a reduction to 100 MW. The final figure submitted last month was further cut to 50 MW.
The installation target referred to the total capacity of renewable energy facilities that will be allowed to be constructed within a three-year period.
PSPA president Dennis Ibarra said there was no reason to lower the installation target to 50 MW as the additional capacity and investments in the solar energy sector would “have positive economic multiplier effects and will contribute a substantial amount of taxes on income, property and on the importation of equipment.”
“For power consumers, 269 MW of solar power facilities would mean cheaper sources of energy as it will reduce electricity prices in the near future,” Ibarra added.
Ibarra also pointed out that there was much interest in solar power in the Philippines as there were, as of May this year, pending applications for solar renewable energy service contracts from at least 40 local and international developers. These proposed projects could readily generate more than 400 MW in additional capacity.
Based on documents from the Department of Energy, the Philippine affiliate of Belgium-based Enfinity filed applications for solar projects that could generate 192 MW in 15 sites, including in the off-grid islands as well as the economic zones in Clark, Cavite, Mactan and Zamboanga City.
Other project applications from Lopez-owned First Philec, Ayala-led PhilNewEnergy and international players Youil and Sunconnex, among others, ensured that “far more than 31 MW of solar power are ready to be commissioned in the Philippines.”—Amy R. Remo
