Dutch firm to pursue solar projects in Philippines

By: Amy R. Remo
Philippine Daily Inquirer

 3share5 2

The Netherlands-based Sunconnex Projects BV remains keen on building a 70-megawatt solar power project portfolio in the country despite the problems hounding the renewable energy sector.

The firm, through local unit Sunconnex Development Corp. (PH), is still willing to invest $3 million to $4 million to produce a megawatt of solar power in the country, or a total of about $210 million to $280 million for all its planned power projects.

However, Sunconnex is urging the government to maintain the stability of the country’s business climate by implementing the policies that had been passed under the Renewable Energy Act of 2008 and not to change the rules midway through the game.

“Sunconnex remains hopeful that the Philippine government will maintain stability in its policies to develop renewable energy including solar. Sunconnex hopes that the government will not change the rules and policies and proceed with the programs outlined in the RE Act,” said the local unit’s president JJ Samuel A. Soriano.

“Sunconnex was one of the foreign solar developers that responded to the Philippine government’s desire to develop solar energy as specified in the Renewable Energy Act and has been preparing and developing solar projects for the Philippines soon after the May 2010 elections,” Soriano added.

The Philippine renewable energy industry has yet to move forward as local and foreign developers currently await the issuance of the final feed-in-tariff rates, which would supposedly assure them of future cash flows since electricity end-users will be charged fixed amounts to cover production of energy from renewable sources.

FIT rates will likewise determine whether a renewable energy project would be economically feasible.

This early, however, several groups, along with the Board of Investments, have already issued their respective positions against the feed-in-tariff rates, generally noting that these will only further hike the country’s electricity prices, reportedly the highest in Asia.

Solar power developers, in particular, have been hit the hardest since under the FIT scheme, they have been given by the National Renewable Energy Board the highest rate at P17.95 per kilowatt-hour. This prompted groups and government officials, including Energy Secretary Jose Rene D. Almendras, to suggest the pacing of the more expensive RE sources like solar so as not to further burden Filipino consumers

Philippine-made batteries propel solar-powered vessel

By: Amy R. Remo

Philippine Daily Inquirer

MANILA, Philippines—The world’s largest and most advanced solar-powered boat, the M/S Tûranor Planet Solar, is proof that energy harnessed from the heat of the sun can power practically everything—from pocket-sized calculators to cruise ships.

M/S Tûranor Planet Solar has finally arrived in Manila, not only showcasing the potential of environmentally responsible mobility concepts, but also largely demonstrating the immense potential of solar energy, among other renewable energy sources, as a sustainable resource that can power the future.

“The sun has always been our planet’s most important source of power—wind, rainfall and waves—are all indirectly generated by the sun. Harnessing even a tiny portion of its immense power can provide us with limitless amounts of clean energy,” said World Wide Fund for Nature (WWF-Philippines) chair Vincent Pérez  in a statement.

“The message of M/S Tûranor Planet Solar is clear: clean and dependable renewable energy technology is here,” added Pérez, who served as Philippine energy secretary from 2001 to 2005 and has since been active in promoting renewable energy.

The German-built vessel measures 31 by 15 meters and tips the scales at 85 tons. Over 537 square meters of photovoltaic solar panels provide up to 127 horsepower – enough to keep the craft moving at a constant speed of 14 kilometers per hour.

The ship is exclusively powered by 38,000 high-efficiency solar cells all produced in the Philippines at the manufacturing facilities of SunPower Corp. Already, it has won two accolades – the fastest crossing of the Atlantic by a solar-powered vessel and the longest distance covered by a solar-powered electric vehicle, according to WWF.

The catamaran now targets to be the first solar-powered boat to circumnavigate the world. Traveling over 55,000 kilometers westward across the Atlantic, Pacific and Indian Oceans, the M/S Tûranor set sail from Monaco in southern France on September 27, 2010 and has just arrived in Manila from Australia.

WWF claimed that the Philippine stop was recognition of the country’s strong support for renewable energy.

Over the next 20 years, the Philippine government, through the Department of Energy, targets to increase the use of renewable energy by threefold as clean energy is now being seen as a another way to secure the country’s energy supply.

Specifically, the Philippines will target to increase renewable energy-based power capacity to over 15,200 megawatts in installed capacity. This target will allow the country to have a power mix in which RE resources will account for over 50 percent. As of end 2010, total RE generation stood at 26.3 percent.

These goals set under the National Renewable Energy Program can be achieved given that the country has abundant renewable energy sources, with various estimates ranging from 200,000 MW to as high as 276,000 MW in potential capacity. These resources included biomass, geothermal, solar, hydro, ocean and wind.

4 Western Visayas provinces eye renewable power

• 
  

  
  By Teresa Ellera-Dulla

• 
  
• 
  

BECAUSE of the high cost of power, four provinces in Western Visayas said that it is high time to develop and rely on renewable sources of energy.

The provinces of Guimaras, Antique and Aklan are now looking forward for power supplies from biomass, hydro and wind power.

Among the provinces in Western Visayas, Negros Occidental has the lowest power rate. Several investors for renewable energy have already signified interest in putting up their power plants in the province but they are still conducting feasibility studies for their respective projects.

Among those investors are Alto power for a hydro power plant tapping the Bago River and a Korean firm, which identified E.B. Magalona town as its site for solar power.

Meanwhile, Guimaras Governor Felipe Nava said the island province expects to produce wind power by year 2012 to 2013, as TransAsia is already laying the groundwork for the production of 54 megawatts of wind power.

The construction phase is expected to start next year, he said.

Guimaras consumes only 5 megawatts of power, so the rest of the generated power can be sold to Panay Island electric cooperatives, he added.

On the other hand, Rey Malleza of the Department of Energy - Visayas Field explained that the present high cost of power is due to the privatization of the power generating sources.

After the National Power Corporation (Napocor) was privatized, the government no longer subsidizes the generation cost which resulted in the increase from P3 to P7 per kilowatt hour.

Published in the Sun.Star Bacolod newspaper on July 02, 2011.

Firm starting 2 ocean thermal energy projects

By Amy R. Remo
Philippine Daily Inquirer

DEEP Ocean Power Philippines Inc., the country’s first and lone company to harness ocean thermal energy, targets to generate as much as 3,600 megawatts of electricity in 36 prospective sites, according to company officials.

“The Philippines is one of the premier locations in the world for our technology due to the extreme thermal difference between the warm surface water and the deeper cold water ... and we have a deep shelf here in the Philippines,” noted Doppi vice president Derek T. Murray.

“We feel that the oceans here are the oil of the Philippines and so we hope to locate them ... to help reduce the cost of energy,” he added.

Murray said the company’s plan was to put up ocean thermal energy projects with an initial capacity of 20 MW each, and slowly ramp this up to cost-effective levels.

“As we progress here locally, we will increase in size up to 100 MW ( per site) with the next several projects. Our goal is to maximize and use all 36 [sites]. But as of today, we’re starting with the first two,” Murray added.

On Friday, Doppi was granted two renewable energy service contracts for the development of ocean energy resources in Anini-y, Antique and Sablayan, Mindoro, said Doppi chair Alberto V. David Jr.

For an initial capacity of 20 MW, investments for these two projects are seen to reach $66,000.
Murray said it would take Doppi—which has formed a joint venture with the US-based Deep Ocean Power Inc.—three years to complete the projects, with commercial operations to start by 2012.

He said the company was in the process of completing the feasibility studies for the two projects.
Investments required for ocean energy projects are comparable with or a little higher than the investments needed for wind and solar projects, which require $2.5 million to produce a megawatt of electricity.

Murray said that unlike these two renewable energy sources that may be intermittent, ocean energy could be a more stable source of electricity.

Singapore firms betting big on RP

By Amy R. Remo
Philippine Daily Inquirer


THE VOLATILITY OF global crude oil prices continues to wreak havoc on the finances of the Filipino consumer.

Although crude oil prices are much lower this year compared to 2008, there’s no guarantee that could protect Filipinos—especially the riding public and transport sector—in case oil prices bounce back to last year’s record high of $147 a barrel.

As it is, some analysts are claiming that crude oil prices may go up to as much as $150 a barrel within the year, according to Randall Antonio, CEO of Callandra LCNG Fuels Corp.

The country currently imports 98 percent of its oil requirements, thus making the Philippines extremely sensitive to any price movements in the global market.

As such, the Department of Energy has been exploring ways to cut the country’s dependence on costly fuel imports, which include harnessing renewable energy and alternative fuel sources.

However, it may take a while before investments come in and the benefits from such projects materialize.

Clean CNG

One immediately available alternative is to use compressed natural gas (CNG), which is clean burning and emits lower levels of potentially harmful byproducts into the air unlike traditional fossil fuels, according to Callandra.

Callandra—an affiliate of Singapore companies Callandra Holdings Pte. Ltd., and CNG Capital Pte. Ltd.—believes that CNG, being a cleaner type of fuel, could help reduce pollution.

And since it is an indigenous natural resource, it could likewise help curb costly oil imports.

For this reason, Antonio said Callandra was investing $160 million to put up six CNG “fueling districts” or refilling stations in Metro Manila and one processing plant in Batangas.

Antonio explained that these refilling stations, which would be enough to fuel some 5,000 CNG-fed buses by 2014, will be set up in the Mall of Asia area, Manila, Las Piñas, Pasig, Quezon City and Monumento.

According to Antonio, the use of CNG in 5,000 buses is expected to displace some 83 million gallons of diesel yearly.

Callandra is the first firm accredited by the government to develop the country’s first fully commercial CNG fueling infrastructure for the local bus transport sector.

Supply corridor

With its proposed project, Callandra said it targets “to open a new gas supply corridor for Mega Manila and other key population areas, delivering very cost-effective natural gas sources; to contribute to the security of fuel supply for the Philippines; and to strengthen the role of the gas as an environmentally cleaner, cheaper form of alternative fuel in the Philippines.”

“Using CNG as an alternative fuel could offer significant fuel cost savings to the bus operator, aside from the various incentives and tax benefits that the Philippine government has to offer,” the company said.

Antonio said each fueling district would have about 10 pumps with dual dispensers to cater to 20 buses at a time.

He added that the fueling districts will also have faster turnaround time of about six minutes.

By mid-2010, Antonio said Callandra expect two of the fueling districts to be fully operational, catering to some 2,000 buses. By 2012, the firm expects the number of CNG-fed buses to increase to 3,500, and by 2014, to 5,000 buses.

“We’re now talking to various banks. There were already (financing) offers,” Antonio said.

He disclosed that the company plans to tap the debt market to finance about 70 percent of the $160-million investment cost, while the remaining 30 percent will be funded through equity.

Lower prices

Antonio noted that prices of CNG will be lower compared to local petroleum products by about 25 percent.

At present, only Pilipinas Shell offers CNG to 35 buses servicing Batangas, Laguna, Manila and Quezon City, through its “daughter” station in Biñan City in Laguna.

Shell’s main or mother CNG station is near its refinery in Tabangao, Batangas.

Shell’s mother-daughter stations are part of the government’s Natural Gas Vehicle Program for Public Transport (NGVPPT), a seven-year pilot program that will peg the price of CNG at P14.52 a liter, less than half the price of diesel, for participating bus operators.

As part of the pilot program, Shell has exclusive rights to the area where it operates.

Other firms interested in putting up CNG facilities could do so in other places.