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The Department of Energy (DoE) declared a moratorium on new coal-fired power plant projects on Tuesday, while allowing foreign investors to own geothermal plant projects in the country.
The decision to stop supporting the coal industryto beThe red power plants came after their recent assessment showed the need for a shift to a “more flexible” power supply mix.
“This would help to build a more sustainable energy system that will be resistant to structural changes in demand and will be Floridaflexible enough to accommodate the entry of new, cleaner and indigenous technological innovations, ”Energy Secretary Alfonso G. Cusi told world leaders at a virtual conference in Singapore on Tuesday.
Mr. Cusi said the Department of Energy is committed to accelerating the development of the Philippines’ resources, while “driving the transition from the use of fossil fuel-based technology to cleaner energy sources to ensure more sustainable growth for the country”.
The DoE is in the process of updating its Philippine Power Plan for the next two decades.
However, the ban on endorsing newto bered power plants will not be affect those that have already received previous guarantees, the Undersecretary of Energy, Felix William B. Fuentebella, told the press in a message.
“We need to prepare for theFloridaux of ER (renewable energy) under recent policies issued by the DoE. Hence the need for more Floridaflexibility, ”he said.
As of August, there are 3,436 megawatts (MW) of committed coal-fired power projects in Luzon, including large projects by Meralco Powergen Corp. and GNPower Dinginin Ltd. Co., a joint venture of the Ayala and Aboitiz groups.
The DoE has also supported 135 MW of coal-based power projects in Visayas and 420 MW of such projects in Mindanao.
Additionally, there are nearly 10,000 MW indicative of coal-fired power plant projects across the country, some of which may not receive government backing. “We have to fix that one,” Fuentebella said.
The ban will remain in effect until such time as the country needs additional base load power, according to the DoE official.
While welcoming the order, the center for sustainability studies at the Center for Energy, Ecology and Development (CEED) said there are still environmental concerns about existing coal-fired power plants in the country.
“That remains worrisome and alarming in relation to pollution, the climate imperative and expensive electricity in the country,” said CEED Director Gerard C. Arances.
FOREIGN PROPERTY
Meanwhile, the next round of open bidding for renewable energy service contracts will allow the participation of foreign players who will own large-scale geothermal exploration, development and utilization projects.
The DoE approved a circular on October 20 that provides guidelines for the third Open and Competitive Selection Process (OCSP3) in awarding contracts for renewable projects.
“From an investment perspective, OCSP3 enables 100% foreign ownership in large-scale geothermal exploration, development and utilization projects,” said Mr. Cusi.
Large geothermal projects are those with an initial investment cost of around $ 50 million and are under Technical and Financial Assistance Agreements (FTAA), signed orff by the President of the Philippines. – Adam J. Ang
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