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Metro Manila (CNN Philippines, October 30) – There is nothing wrong with allowing foreign companies to own geothermal projects, the National Renewable Energy Board said amid growing criticism of the government’s new policy.
The Department of Energy and NREB, an advisory body created by the 2008 Renewable Energy Act, said there has been talk of opening up the geothermal sector to more foreign investment since last year. That’s why NREB President Monalisa Dimalanta was not surprised when the DOE finally announced this week the approval of a circular allowing 100% foreign ownership of geothermal exploration, development and utilization projects at an investment cost. starting at about $ 50 million.
“What surprised me was the reaction,” Dimalanta said Friday at a webinar hosted by NREB and Clean Energy Investment Accelerator.
“If you think about it, the Renewable Energy Law already defines geothermal as a mineral resource. The Constitution already says that financial and technical assistance agreements (FTAA) can be signed by the President for petroleum, minerals and mineral oils ”, he added.
He said these principles are also set out in previous DOE emissions on the award of service contracts in the renewable sector. But several cause-oriented groups have called the policy change unconstitutional for violating the 60-40 rule on foreign ownership.
READ: Groups praise ban on new coal plants, hit geothermal ‘sell-off’
House Minority Leader Deputy and Bayan Muna Representative Carlos Isagani Zárate said the DOE circular, which has yet to be published, should be challenged in court, along with a 2019 policy allowing foreign companies to fully own and control biomass power plants.
“As it is, renewable energy such as geothermal energy remains part of the territory and heritage of the Philippines and should not be given free to foreigners to exploit it,” Zárate said in a statement.
Ban on new coal plants
Data presented by the DOE shows that there are currently 172 renewable energy (RE) projects in operation, with a total capacity of 5,143.59 megawatts. Of this number, 12 are geothermal.
Meanwhile, 654 renewable energy projects in pre-development and development stage. The goal is to increase the share of renewables to 35% of the country’s energy mix by 2030 to reduce the use of coal.
Coal remains the dominant energy source, contributing 52.1% of total energy generated in 2018. In a move away from coal, a non-renewable energy source, the DOE announced a moratorium on brand-new coal-fired power plants. , or those that involve new and unexploited areas.
The ban will shelve nine coal projects with a total capacity of 5.6 gigawatts, according to the think tank Center for Energy, Ecology and Development. The DOE has not yet released official data.
Undersecretary of Energy Felix William Fuentebella said the moratorium will have no impact on the Philippines Power Plan, as coal projects previously supported by the department will not be affected.
Energy Secretary Alfonso Cusi will explain the new policies in detail next week, Fuentebella said.
According to Bangko Sentral ng Pilipinas, the decision to reject new coal projects is unlikely to affect energy prices and headline inflation in the short term, as the economic recession will likely keep energy demand low and energy supply low. large.
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