PHL to be a wind-energy leader with clearer renewables policy

THE Philippines could become a leader in the Asia Pacific in developing wind energy because of “unique” conditions for exploiting the resource, but needs more clarity in its renewable energy policy, Danish wind turbine maker Vestas said.

“We have dozens of customers that are very keen to invest in the Philippines and we are working on dozens of projects here,” Clive Turton, president of Vestas Asia Pacific Wind Technology Pte Ltd, said in a briefing on Tuesday at Conrad Hotel in Pasay City.

He said he was looking at more than 1,000 megawatts (MW) of new capacity from “potential new projects” in wind energy, but for now these are on hold as investors await clearer guidelines from the government.

He declined to elaborate on the policy issues that are giving investors pause, saying the company is not in a position to offer suggestions.

“What the industry needs is clarity from government on how this industry will be developed in the future,” he said.

Vestas claims to be the “world’s largest green company.” It is focused on developing, manufacturing, selling and maintaining wind power plants.

Vestas, which has a shared service center in Manila, has delivered and is servicing 183 MW in the Philippines, including the Burgos wind power plant in Ilocos Norte, one of the largest wind projects in Southeast Asia.

In June, the company said stakeholders had expressed concern about a “policy gap” in renewable energy, citing in particular the lack of a new feed-intariff scheme and a defined new procurement mechanism.

It also said the renewable portfolio standard, or RPS, is yet to be implemented. RPS, a market- based policy, requires electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources.

The Department of Energy has repeatedly said that it was not inclined to issue another round of feed-in-tariff, a system that offers a guaranteed rate for clean energy developers for 20 years.

The department had set an installation target of 400 MW for wind energy in two tranches, both of which have been subscribed — 249.9 MW for the first round at P8.53 per kilowatt-hour ( kWh), and 144 MW for the second at P7.40/kWh.

Mr. Turton said the Philippines is unique as it has “strong, consistent wind,” giving it the potential to harness wind power. He said with a clear policy structure, “there will be a boom” in local wind energy development and “investment will flow.”

He said Vestas had installed wind power across nearly 80 countries for a capacity of around 80 gigawatts, or four times more than what it had put up in the Philippines. It employs about 400 people locally. —