[ad_1]
The Department of Energy (DOE) will no longer support new coal-fired power plant projects.
Based on a recent review of the country’s energy mix, the agency said a moratorium on endorsements for brand-new coal-fired power plants needs to be declared.
DOE Secretary Alfonso G. Cusi said the periodic assessment of the country’s energy requirements revealed the need for the country to switch to a more flexible energy supply mix.
This measure, he said, would help the country build a more sustainable energy system that will be resilient to structural changes in demand and flexible enough to accommodate the entry of new, cleaner and indigenous technological innovations.
DOE Undersecretary Félix William Fuentebella said that
morato rium would not cover those on the agency’s indicative list of coal power projects. “We mean the new ones,” he said.
At the same time, Cusi said the Philippines now allows 100 percent foreign ownership in large-scale geothermal exploration, development and utilization projects. Large-scale geothermal projects are those with an initial investment cost of approximately $ 50 million capitalized through Financial and Technical Assistance Agreements (FTAA).
FTAAs can be concluded between foreign contractors and the Philippine government for the exploration, development and large-scale utilization of natural resources, and are signed by the president.
Cusi announced this during the Second Global Ministerial Conference on Renewable Systems Integration, which was held as part of Singapore International Energy Week 2020.
“While we initially adopted a technology neutral policy, our regular assessment of our country’s energy requirements is paving the way for innovative adaptations in the direction of our policy,” said Cusi.
The moratorium on endorsements for brand-new coal power plants and the opening of the country’s geothermal sector to increased foreign investment in order to boost prospects for the local renewable energy (RE) landscape are just some of the innovative policies that the DOE will be implementing.
Cusi said that on October 20 he signed a Departmental Circular that provides the guidelines for the third Open and Competitive Selection Process (OCSP3) in the award of RE Service Contracts.
“From an investment perspective, OCSP3 enables 100 percent foreign ownership in large-scale geothermal exploration, development and utilization projects. As the Philippine Department of Energy reassesses the adequacy of our current energy mix against our energy goals, I am optimistic that this would lead to more opportunities for renewables to feature prominently in our country’s energy future. ” , He said.
As of 2019, the Philippines still had the highest share of renewable energy in total primary energy supply among the countries in the Association of Southeast Asian Nations (ASEAN) region.
“Despite this, I am determined to accelerate the development of our country’s indigenous resources. We are also promoting the transition from the use of technology based on fossil fuels to cleaner energy sources to guarantee more sustainable growth for the country, ”he said.
The virtual ministerial conference in Singapore was organized by the Energy Market Authority, the International Energy Agency and the Singapore Ministry of Commerce and Industry for the 13th Singapore International Energy Week.
According to DOE data, there are seven indicative coal power plant projects in Luzon. These, if approved by the DOE, will add 8,275MW of additional capacity.
There are four indicative coal-fired power station projects in Visayas and Mindanao, with a total additional capacity of 763MW.
At the end of 2019, coal still dominated the energy mix at 54.6 percent; natural gas, 21.1 percent; geothermal, 10.1 percent; hydro, 7.1 percent; oil, 3.5 percent; and RE at 3.1 percent.
