Creation of pre-screening process for the due diligence activity

• Main Author: Chow, Charlotte Camille L.
• Format: text
• Language: English
• Published: Animo Repository 2017
• Subjects: Energy consumption; Energy conservation; Power resources; Renewable energy sources > Philippines
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/5318
• Institution: De La Salle University

The rise of modern civilization - as catapulted by the Industrial Revolution resulted to massive developmental activities. Electricity, machineries and the increased knowledge of humans fueled massive economic growth - the world haze seen the rise of population, rise of needs, rise of production, rise of factories, rise of transportation, rise of anything humans can think of doing. The other side of the coin also showed the rise of externalities to our environment. The earth has been experiencing global warming and in effect natural disasters have worsened each year (NASA, 2017). On a global and larger scale, there is a tumultuous clamor to reduce these externalities. There is a need to counter all the carbon emissions and one portion of this collective effort is concentrated on energy consumption. It's about time, as supported and even ratified in the COP 21, to fortify the development of renewable energy. Philippines, as part of the collective global effort, enacted the RE ACT (RA 9513) to promote the development, utilization, and commercialization of renewable energy resources. The Department of Energy introduced the Feed -In-Tariff Program (FIT) a scheme where higher rates are given to the developers of RE sources (solar, biomass, run of river Hydro and the likes). This FIT scheme was used primarily to entice the appetite of both local and foreign investors to construct power plants. The scheme has yet to prove its success; it had turned into an economic disaster because the scheme adopted a first come, first served basis in awarding the FIT rates. Many of the investors participated in this race and those who took the risk and were not able to make it to the FIT allocation now records stranded assets at least until a new FIT regime comes through.