|
By Euan Paulo C. Añonuevo, Reporter
THE Department of Energy expects
to award another geothermal and at most five coal exploration
contracts in the coming weeks.
Energy Secretary Angelo. Reyes
said the agency is keen on offering a prospective geothermal site in
Kalinga province that has a potential capacity of 100 megawatts of
electricity.
He said the agency is studying
this move to hasten the development of energy projects in the
country as a means to lessen its reliance on imported oil.
Recently, the department awarded
three geothermal service contracts to Guidance Management Corp.,
Biliran Geothermal, Inc. and Basic Energy Corp. to explore and
develop areas in Compostela Valley, Biliran and Batangas,
respectively.
Each of the areas has a target
capacity of 20 to 40 megawatts once fully developed.
Besides the recently awarded
deals, the department is preparing to sign three coal exploration
projects next month, Energy Undersecretary Ramon Oca said.
He said another two coal
contracts are pending approval, without naming the winning
proponents.
The department is pushing for the
development of the coal industry to fill in the country’s power
needs in the short-term as it may take awhile for renewable energy
sources to contribute to supply.
Reyes said that although coal
offers a cheaper alternative to oil for power generation, the
country imports almost 90 percent of its needs to fuel a number of
large power plants.
President Arroyo recently ordered
Reyes to fast-track the awarding of the exploration contracts to
mitigate the effects of high crude prices.
The government holds public
auctions for geothermal, petroleum and coal exploration projects
under the so-called Philippine Energy Contracting Round (PECR), the
last of which was held almost two years ago. The results of past
auctions however had languished at the Energy department since Reyes
assumed the agency’s top post.
An energy department official
said that bidding rounds have yet to push through since its third
exercise in 2006 because of “manpower” changes in the agency.
During the said PECR, nine petroleum, three geothermal and 14 coal
exploration areas were offered to private investors.
|
