Lack of clear-cut policies on the renewable energy sector
hinder the further development of the wind sector in the Philippines, according
to Vestas of Denmark, the world’s largest wind turbine manufacturer.
In a position paper, Vestas said the development of
renewable energy, particularly wind and solar, is nearly at a standstill in the
near-term due to the current policy vacuum, which follows the full allocation
of the first two rounds of feed-in tariff (FIT) and the freeze of an expected
third round of FIT.
The renewable energy policy gap is a concern among industry
stakeholders as this delays installation targets.
“We are concerned about the near-term outlook for wind in
the country. Since the FIT-2 came to an end, and until other policies come into
effect, there is no operational wind regulatory framework. As a result, wind
development has come to a near halt while conventional fossil fuel generation
continues to grow significantly,” Vestas Asia Pacific president Clive Turton
said.
Earlier, Department of Energy (DOE) Secretary Alfonso Cusi
said the FIT system will not be expanded into another round since this adds
burden to consumers and runs against the agency’s goal of bringing down the
power rates.
Instead of a FIT system, the industry is supporting the
implementation of Renewable Portfolio Standards (RPS) and any other policy
tool, which aims to drive RE development and the fulfillment of binding
Low-Carbon and RE Targets.
Turton said a wind energy pipeline of several hundreds of
megawatts (MW) stands to be unlocked with clear policy in place.
“The Philippines has some of the most abundant wind
resources in South-East Asia. And modern wind energy technology is able to
generate more power, at a lower cost than ever before. This creates a real
opportunity for the country to meet part of its growing electricity needs using
competitive, independent, and clean wind energy,” he said.
However, the company acknowledged the fact that full
implementation of RPS and a new procurement policy will around two years,
giving way for other developers to put up more thermal power generation to meet
growing power demand.
“In this context, the future RPS will need to reflect this
reality and align its targets and assumptions to compensate for the delay being
taken now, unless policy makers put in place immediate transition policy
measures to allow RE development to continue until the RPS and Post-FIT mechanism
are fully in place,” the company said.
Vestas also said wind energy also creates local skilled
jobs. Currently, the firm employs over 400 people in the Philippines, where
Vestas Services Philippines and Vestas Shared Service are located.
Despite the policy vacuum for the sector, Vestas remains
committed in developing wind projects in the country.
“Vestas is committed to help write the next chapter of wind
energy deployment in The Philippines, and work with all government and private
sector partners to that effect,” Turton said.
So far, Vestas has delivered and are servicing 183 MW in the
country, including the Burgos Wind Power Plant in Ilocos Norte – one of the
largest wind energy project in Southeast Asia.
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