Upbeat
No. 07.05.13 No. 2113 10.30.2008
PHL among top energy investment sites The Philippines ranked 3 rd in the conventional energy and 5th in the renewable energy (RE) indices out of 30 countries in PA Consulting Group’s “Energy Investment Map.” The country scored highly in both indices as the fast-growing economy needs new generation capacity to support more household consumption and business activities. “The Philippines scores highly for gas and coal. This reflects the need for additional generation capacity outweighing the concerns over future gas supplies,” PA Consulting reported. T rade and Industry Information Center Makati City, Philippines Tel.: (632) 895.3611 Fax: (632) 895.6487 publications@dti.gov.ph
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Conventional generation still appears as an attractive prospect in Asia Pacific, driven by lower fossil fuel prices and the requirement for additional generation capacity across the region.
“Most of the generation build underway in Asia Pacific is conventional -- CCGT (Combined Cycle Gas Turbine) and coal. This is a reflection of low coal prices, anticipated lower gas prices, and the nascent renewable support policies in the region,” PA Consulting Energy Expert Steve Thornton said. Many of the top countries for investment in conventional generation are characterized by fast-growing demand for power combined with regulatory regimes that enable long-term contracts for power from new projects. PA Consulting said the top three countries in the index (India, Poland, and the Philippines) all fit this pattern. Moreover, the Philippines’ position in the RE index was boosted by its scores for wind, hydro, and geothermal -- three technologies that are seen to have high investment potential. According to the study, wind and geothermal power are particularly attractive with much room for growth. “The Philippines is in need of new generation capacity and with the introduction of Feed in Tariffs and an incoming Renewable Energy Market, renewable offers an attractive investment prospect,” Thornton said. The RE index rates countries according to anticipated internal rates of return and associated risks.