VESTAS: Lack of clear policies for RE slows down development

VESTAS: Lack of clear policies for RE slows down development

With the country lacking clear-cut policies on the renewable energy segment, the wind power sector’s further development may be hindered, a Denmark-based wind turbine manufacturer said.

Vestas said that the development of renewable energy – especially wind and solar – is at a near standstill because of the current policy vacuum that follows the full allocation of the first two rounds of the feed-in-tariff (FIT) and the halt of the supposed third round of FIT.

“We are concerned about the near-term outlook for the wind in the country. Since the FIT-2 came to an end, and until other policies come into effect, there is no operational wind regulatory framework. As a result, wind development has come to a near halt while conventional fossil fuel generation continues to grow significantly,” Vestas Asia Pacific president Clive Turton said.

The policy gap for renewable energy is an issue among the industry stakeholders as it delays installation targets.

“The Philippines has some of the most abundant wind resources in South-East Asia. And modern wind energy technology is able to generate more power, at a lower cost than ever before. This creates a real opportunity for the country to meet part of its growing electricity needs using competitive, independent, and clean wind energy,” Turton said.

The wind turbine manufacturer added that wind energy creates skilled jobs.

The Department of Energy (DOE) recently said that the third round of the FIT will not push through because it adds burden to consumers and it contradicts the agency’s goal of lowering the power rates.

Rather, DOE is pushing for the implementation of the Renewable Portfolio Standards (RPS) and other policy tools that aim to drive the development of RE and the fulfillment of binding Low – Carbon and RE Targets.

Despite the policy vacuum, Vestas said that they will continue to develop wind projects in the country.

“Vestas is committed to help write the next chapter of wind energy deployment in The Philippines, and work with all government and private sector partners to that effect,” Turton said.