Alternergy Holdings Corp. welcomed the move of the Department of Energy to increase the utilization of renewable energy (RE) resources under the Renewable Portfolio Standard (RPS) as it creates a bigger market for the industry.
Vince Perez, chairman of Alternergy and former energy secretary, said the increase in the mandated RPS requirement would “create a massive demand for RE capacity moving forward.”
Based on initial estimates by Alternergy, the increase in RPS requirement translates to about 2.65 million megawatt-hours (MWh) RE capacity annually.
This is equivalent to about 1,500 megawatts (MW0 of added solar capacity or 1,000 MW of wind capacity, or 600MW of run-of-river hydropower.
“The increased RPS mandate from 1 percent to 2.5 percent annual increment will usher in new investments as this ensures a guaranteed market for the RE developers,” he said.
The DOE reported that the RE sector generated about P271 billion worth of investment as of June.
Pérez also noted that the current geopolitical developments are pushing the RE industry’s growth at a faster pace.
“The Philippines cannot continue being hostage to any jump in the world oil and coal prices. The policy directions being set by the DOE and the new administration to meet the country’s electricity requirements with more and cleaner energy solutions mitigate these risks at the same time, ensure a sustainable energy supply for the country,” he said.
“With our portfolio of renewable energy projects using wind, solar and run-of-river resources, we believe we are in a unique position to take advantage of the growth of the RE sector in the next five years,” Pérez said.
With robust expansion plans in the next five years, Alternergy aims to develop up to 1,370 MW of additional wind, offshore wind, solar, and run-of-river hydro projects.