DOE eases the process for reapplications

MANILA, Philippines–The Department of Energy (DOE) toughen the leash of investors on renewable energy (RE) to advance the development faster and to add as much capacity as possible to the electricity supply during the critical period of March to June 2015.

Around 100 RE service contracts have been repealed for failure to meet project timelines said by DOE Secretary Carlos Jericho Petilla at the DOE budget hearing at the Senate and some of these cases are now under appeal.

Petilla said his department has eased the process for RE applicants, making it possible for developers to have service contracts with the DOE in 45 days from two years previously. In spite of that, as a trade-off the DOE sets six-month intervals for investors to achieve pre-agreed project milestones, failing which the DOE cancels their service contracts.

The stricter implementation of milestones is meant to fast-track the development of RE projects said by Mario C. Marasigan, director of the DOE’s Renewable Energy Management Bureau. It is also meant to ensure that developers seeking more allocations on guaranteed rates under the feed-in-tariff (FIT) system are not simply keeping contracts for the sake of selling them to other investors.
This policy may come in handy as certain technologies such as wind gain more traction, to the point that developers are seeking more FIT allocations.

Marasigan said the Wind Energy Developers Association of the Philippines (Wedap) is asking for 500 megawatts (MW) of wind power development under FIT, the allocation for wind power is 200 MW. That is on the same level as the expanded solar power allocation, which was raised from 50 MW.

The association must show that it can help ease the power supply for the summer of 2015 and 2016 before further allocations are granted and Developers must also show that a lot more projects are being completed, Marasigan added.

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