Philippines: PNOC Renewables says projects stifled by lengthy permitting process

Philippines: PNOC Renewables says projects stifled by lengthy permitting
process

PNOC Renewables Corp. is urging the government to resolve the lengthy
permitting and licensing process that is delaying the development of
renewable energy projects in the country.

"Like other R.E. (renewable energy) developers, PNOC Renewables has
experienced the lengthy process of securing the necessary permits and
licenses from various government agencies prior to actual construction of
R.E. projects," Pedro L. Lite, Jr., the company president, said during a
recent Senate hearing.

He also identified other issues facing PNOC Renewables, the corporate arm of
the Department of Energy (DoE), including "apparent conflicts" between local
and national interests, which he said "sometimes cause delay in the
implementation" of projects.

For instance, he cited a project that had been approved by the local
government units (LGUs) but encountered hurdles before the National
Commission for Indigenous Peoples (NCIP), the state agency responsible for
protecting the rights of tribal communities. He said LGUs and the NCIP
should find a way to resolve issues between them as they are usually housed
in the same office building.

Mr. Lite said the lengthy process of applying for the net metering system,
which allows solar rooftop owners to export excess power to the grid, has
caused delays in the company's solar photovoltaic projects. The exported
electricity is offset by the power imported from a distribution utility
during times when the solar generation system is not active, say, at night.

He also blamed the lengthy application process for the delay in projects for
other government agencies such as the Philippine Heart Center and the Bangko
Sentral ng Pilipinas. For one project, he said it took nine months before
the release of the net meter.

He suggested state agencies should accelerate and streamline processes for
those that involve the development of renewable energy projects.

A policy should also be proposed for the "identification and prioritization"
of R.E. as projects of national interest and significance, he said.

Mr. Lite also recommended that the DoE and the Energy Regulatory Commission
review the system of net metering applications submitted to distribution
utilities. He added that the threshold of 100 kilowatt-hour peak per
facility should be increased as this is "very limiting."

PNOC Renewables has also listed its proposed legislative agenda, which
include a review of Republic Act 9136 or the "Electric Power Industry Reform
Act of 2001" (EPIRA) to harmonize this law with R.A. 9513 or the "Renewable
Energy Act of 2008."

The company also called for a review of Presidential Decree 910, which
created a special fund to finance energy resource development and
exploitation, and Executive Order 848 to allow the government use of the
Malampaya fund for research and development of renewable energy. E.O 848
authorizes the use of the special fund in the DoE's general fund for
purposes as may be directed by the Philippine president.

Mr. Lite recommended that a mechanism should be proposed to reveal the true
cost of carbon-fed power plants and to impose carbon tariff.

PNOC Renewables, a subsidiary of the Philippine National Oil Co., builds
projects in areas that private companies would not find financially
lucrative. Its participation in development projects is as a joint venture
partner or a participant in a public-private partnership. It also bids for
projects posted in the government's procurement system.

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Ref:
http://www.bworldonline.com/content.php?section=Corporate&title=pnoc-renewab
les-says-projects-stifled-by-lengthy-permitting-process&id=134245

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com