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An estimated total of $1 billion worth of renewable energy (RE) contracts from seven companies, with a combined capacity of 379 megawatts (MW), have been approved by the Department of Energy (DEO). Energy Secretary Angelo Reyes said that the seven RE companies who been issued service contracts and certificates of registration are mostly engaged in wind power development.

The energy secretary however did not disclosed the exact amount to be raised from the RE projects, but as a rule of thumb, wind power development would be needing an investment of $2.5 million per MW; hydro, $2 million; and biomass, $3.5 million.

These projects are the following:

In Pasugin-Burgos, Ilocos Norte, Energy Logics Philippines, Inc. of the Delgados will undertake a 120-MW wind power project, while the Lopez-owned Energy Development Corp. will take on an 86-MW wind power project in Burgos, Ilocos Norte.

In Madalag, Aklan, Oriental Energy & Power Generation Co. will be embarking on a new hydro energy service contract with an 18-MW estimated capacity. Tile manufacturer Mariwasa Siam Ceramics also received its certificate of registration for biomass gasification for its own use and it will construct an estimated 45-MW facility in Sto. Tomas, Batangas.

Northern Luzon UPC Asia Corp. will put up a 50-MW wind energy farm in Pagudpud, Ilocos Norte, and Petro Energy Resources Corp. will have two new wind energy service contracts in Nabas-Buruanga-Malay, Aklan and in Sual Pangasinan, with each one having an estimated capacity of 30 MW.

Reyes said that these contracts only indicate a keen interest from RE investors with passage of the Renewable Energy Act. With the passage of the RE Act in December 2008, the DOE is looking to raise around $9 billion to $10 billion from RE projects in the next 10 years, which will also effectively raise the RE capacity in the country to 9,000 MW or double the existing 4,500 MW.