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MANILA, Philippines - German companies are keen on investing in the Philippine energy sector and are ready to partner with local companies once the country's pricing structure for renewable energy is ironed out, Bernd Mützelburg, special envoy of the German Federal Government, said on Thursday.
"Germany has been one of the world leaders in solar energy, so we can achieve much more in the Philippines," Mützelburg told InterAksyon.com on the sidelines of the 45th Annual Meeting of the Asian Development Bank Board of Governors.
Solar power grew significantly in Germany following the implementation of that country's feed-in tariffs (FIT), which are essentially state subsidies, he said.
"The particular advantage of solar energy is that you can use it in relatively small dimensions. You can have it in local projects, and you don't need a major grid," Mützelburg said.
The Philippines' only commercial solar facility is located in Cagayan de Oro. It cost $5.6 million and using 6,500 solar panels, churns out 1.6 megawatts of electricity on a two-hectare land.
Mützelburg said the assurance of "a certain price structure" is a precondition to investments.
"Because if prices of electricity is not remunerative, then obviously it would be hard to have any sort of international investor in one's country," he said.
After nearly half a decade of deliberation, the Philippines' FIT mechanism, which is one of the incentives laid out under the Renewable Energy Law of 2008, has yet to be issued.
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