The Board of Investments approved the request of Satrap Power Corp. for fiscal incentives as a renewable energy developer for its P1.16-billion biomass energy project under the current Investment Priorities Plan.
The power project involves the development, construction and operation of a combined 10-megawatt power facility in Barangay Nagpanaoan, Santa, Ilocos Sur.
“This project boosts the Ilocos region as a hub for renewable power and complements the wind power plants already in the region,” Trade Undersecretary and BoI managing head Ceferino Rodolfo said.
“The addition of biomass projects will spur further development of renewable energy sources in the area as we continue our march towards reducing our dependence on fossil fuels over time,” he said
Satrap will use municipal solid wastes and agricultural wastes as feedstock to generate 3 megawatts and 7 MW of power, respectively, through a supply agreement with several local government units in the province.
Both plants are scheduled to be operational in April 2019 with an estimated 30 employees.
Th two plants follow a power generation process that allows wastes to be transported to the tipping area where these are sorted and segregated. Leftovers undergo drying and shredding to produce pellets. The pellets are then fed to gasifier or boiler to produce syngas or steam to power the gas turbines.
Satrap has the option to sell the generated electricity to National Grid Corp. of the Philippines under the feed-in tariff system of the Renewable Energy Act. Ilocos Sur Electric Cooperative Inc. is also being considered as another market.
Industry data as of June 2016 showed the Philippines had a total installed power capacity of 20,055 MW with a dependable production of 17,925 MW and an available output 13,877 MW. Peak demand reached 13,197 MW.
Newly-installed operational capacity stood at 1,271 MW, while committed projects expected to be operational by the end of 2016 topped 6,179 MW with an indicative capacities of up to 13,853 MW.
Renewable energy constituted the largest share of the total installed power capacity in the country with a 34.3-percent share, followed by coal with 33.2 percent and natural gas at 14.3 percent.
Hydro has the biggest share among renewable energy sources with 18 percent of the aggregate capacity, followed by geothermal at 9.56 percent, solar at 3.4 percent, wind at 2.1 percent and biomass at 1.2 percent.
The Renewable Energy Act of 2008 aims to accelerate, explore and develop renewable energy resources, including hybrid systems, to achieve energy self-reliance and reduce the country’s dependence on fossil fuels.