The Good News on Renewable Energy Investments

If there is one good news worth noting in the energy sector, it is the continuing investments going to renewable energy. Renewable energy is energy coming from sources that are naturally replenished such as biomass, solar, wind, geothermal, ocean and hydroelectric. The rising oil prices in the world market coupled with the increasing concern over climate change has pushed legislators to act on the need to promote renewable energy as an alternative source. In 2008, the Philippines passed the Renewable Energy Act aimed to accelerate the development of these alternative energy resources in order to reduce the country’s dependence on foreign oil which can minimize exposure to oil price fluctuations aggravating every sector of the economy. This piece of legislation has been hailed as the first and most comprehensive in Asia. The inflow of investments demonstrate just how it achieves the goals it has set out to do.

Investments Flowing In

Ayala Corporation has just announced its commitment to build 1000 megawatts (MW) of hydroelectric power projects in the next five years. Its electronics manufacturing arm, the Integrated Micro-Electronics, Inc. has also planned on expanding its renewable energy business with the mass production of solar panels starting this year. Moreover, First Metro and Global Power of the Metrobank group have just signed an agreement to develop renewable energy projects in the Philippines.  Also, A UK-based company, Global Green Power Corp with its local subsidiary, has infused a total of 5.6 billion pesos to build three 15 MW biomass power plants in Panay, Nueva Ecija and Pangasinan expected to be online this year.

Aiming for the Stars

With all these investments and all the other projects now under way, it is hoped that the country will achieve 40% of installed capacity from renewable energy sources by 2013 by doubling the total capacity from 4449 MW in 2003 to 9174 MW from these sources. The government also aims to be the top geothermal energy producer from currently being second only to the US in terms of installed capacity. This can be done by adding another 1200 MW capacity from geothermal energy sources. The aggressive goals are necessary and are the right approach to make the country responsive to the needs of its people in terms of energy. Not only will this provide the basic need for electricty to all but renewable energy projects will also address the growing concern over the impact of conventional energy sources on climate change. On top of that, renewable energy utilization will shield the power industry from the price fluctuation of oil which has proven to be detrimental to the economy as a whole.