The Biggest Loser

Around half of the world’s energy needs will come from renewable energy by 2050. That’s according to the latest Bloomberg New Energy Finance (BNEF) report.

The study stressed that renewable’s domination in the next three decades will occur along with the expected 62 percent demand increase for power and an additional $13.3 trillion worth of renewable energy projects.

All these scenarios are feasible as the cost of renewables has been plummeting in the last few years, the report stresses.  Since 2010, solar and wind costs have dropped by 85  and 49 percent, respectively. Battery storage costs have also declined by 85 percent.

The BNEF says solar and wind power will supply half of the world’s electricity while other renewable energy sources such as geothermal, fuel cells and devices will contribute around 21 percent.

Coal, on the other hand, will be the biggest loser in the power sector as its share in the global generation will decline to 12 percent by 2050 from around 37 percent today.

Europe is leading the shift to cleaner and sustainable energy. The region is expected to source around 92 percent of its power needs from renewable energy. China and India are also expected to source roughly two-thirds of its power from wind and solar by 2050 while the United States will get around 43 percent of its power needs from renewables.

In contrast, the Philippines is expected to increase the share of coal-fired generators in the next 30 years according to the Asia Pacific Energy Research Center (Aperc).

In its latest Energy Demand and Supply outlook report, Aperc stressed that coal is likely to contribute 39 percent of the country’s power needs by 2050 or three percent more than its current 36 percent share. On the other hand, renewable energy is seen to account for 20 percent of the Philippines power supply in 2050, which is lesser than its present 24 percent contribution.

Aperc’s projections are based on business as usual (BAU) scenario where existing policies and current trends stay the same. “Large increases in fossil fuel generation, particularly coal which triples, overshadow a more than doubling of renewable generation in the BAU,” the report says.

Aperc notes that allowing coal power to dominate our energy mix will make the country more vulnerable as the Philippines’ net energy imports will have to double. Promoting renewables and diversifying trade will be important for maintaining energy security,” Aperc said.

Our country’s dependence on fossil fuel imports also come at a high cost according to the international research group, Climate Analytics. Its report shared during recent climate talks in Germany showed that the Philippines fuel imports in 2017 are equivalent to 3.5 percent of its gross domestic product or around $11 billion.

The report also stresses that the country will benefit from shifting to renewable energy since doing so will decrease the external cost from air pollution. Climate Analytics pegged the annual average air pollution cost savings around $1.1 billion by 2025.

Adding more renewable energy in the country’s power mix is feasible, the international research group says. The report cites several studies revealing that covering merely 1.5 percent of the Philippines land area with solar installation can generate around 792 terawatt hours of power, a figure that’s 10 times the country’s total power generated in 2016.

Clearly, a shift to renewable energy is possible for nations including the Philippines. And around the world, coal is expected to be the biggest loser by 2050. Meanwhile, our country may also end up as one of the sorriest fools should we allow coal to continue to dominate our power mix.

Juan de la Cruz becomes the biggest loser.

References:

https://www.bloomberg.com/news/articles/2019-06-18/the-world-will-get-half-its-power-from-wind-and-solar-by-2050

https://news.mb.com.ph/2019/06/22/climate-analytics-report-cites-potentials-of-renewable-in-the-philippines

/https://business.inquirer.net/272280/as-ph-economy-grows-coal-remains-king-says-think-tank#ixzz5s1l138er

Let’s Not Forget About The Jobs

The reminders to world leaders and governments to shift to green energy to help the environment are endless given that we only have a few years left to minimize the effects of climate change. There is also clamour for greater use of renewable energy to ensure energy security for all.

Arguably, environmental impact and energy security are two of the most commonly cited and discussed reasons why governments and private entities are urged to have more renewable energy in their portfolio, if not aim for 100 percent use of clean energy.

But there’s another direct benefit in paving the way for greener power: job generation. Creating more employment opportunities through renewable energy may take a backseat in advocating for renewable energy. Nevertheless, providing more work for people is another benefit of building more renewable energy plants and infrastructure. There are, after all, millions of jobs created by the renewable energy sector around the world. 

Recently, the International Renewable Energy Agency (IRENA) released its Renewable Energy and Jobs Annual Review 2019, which showed that some 11 million were employed by the sector around the world in 2018. The jobs provided last year is higher than the 10.3 million posted in 2017. The 11 million jobs provided by the renewable energy sector is almost 3.7 million more compared to 2012 when IRENA first started its yearly job report.

The rising number of employment generated by the sector is partly attributable to the world’s desire for low carbon economic growth as stressed by IRENA Director-General Francesco La Camera who said: “Beyond pursuing climate goals, many governments have prioritised renewables as a driver of low-carbon economic growth. Diversification of the supply chain has broadened the sector’s geographic footprint beyond a few leading markets, as more countries link sustainable technology choices to broader socio-economic benefits.”

The report also noted that most employment opportunities were concentrated in a few countries like China, United States, Brazil, India, and some European Union countries. Almost a third of the jobs generated last year came from the Solar PV industry. It helped that off-grid solar sales are on the rise, which in turn increases the chances of spurring economic activities in isolated areas in various countries.

The Philippines made it in the top 10 countries for wind employment.  According to IRENA, the top 10 countries for wind employment provide 85 percent of wind jobs. The Philippines proudly landed the 10th spot on the list as the country has employed around 16,900 jobs in the wind energy sector. Unfortunately for our country, the number of jobs for Filipinos in the Solar PV sector declined as there were only 20,800 employed in 2018, lower than the 34,000 recorded in 2017. This is largely due, I believe, in the non-resumption of the FIT program for the Philippines.

That’s rather sad to hear since a study by Greenpeace entitled “Green is Gold: How Renewable Energy Can Save Us money and Generate Jobs” noted that the Philippines can generate as much as  4.5 to 5.5 kWh/m2/day as the country is a tropical one. This means that our solar power industry can generate plenty of employment since research by the University of California, Berkeley showed that “photovoltaic technology produces more jobs per unit of electricity than any other energy source. Most of the jobs are in construction and installation of solar facilities and can’t be outsourced to other countries.”

There will be more jobs as we harness more power from the sun. The same Greenpeace report noted that a 10 MW solar power plant can provide 1000 people during the construction phase alone as well as an additional 100 full-time employees. In the case of our solar farm in Subic, we managed to train and hire indigenous people thus making them even more productive in their own lands.

JCI

Renewable energy development create jobs. At Emerging Power Inc, we hired and tirade indigenous people thus helping the community along the way. Photo c/o https://www.emergingpowerinc.com

The above figures are just for solar energy. Other renewables such as wind, geothermal and hydro, to name a few could provide employment for thousands of Filipinos as well.

Luckily for us, our country is blessed with so many natural resources. We can harness these resources to save our environment, ensure energy security for all, and provide employment for Filipinos. 

Unfortunately, policies and regulations have restricted the growth of the renewable energy industry. Just take our geothermal power sector as an example. We were once the second biggest geothermal power producer in the world. Sadly, we are now just ranked third as Indonesia has produced 1,800 megawatts (MW) whereas the Philippines decreased its output from 1850 MW to 1600 MW.

Yes, our country enjoys abundant natural resources. But we have to find a way to make renewable energy development a priority in the government’s agenda so that we can enjoy the many benefits of green power including more jobs for Filipinos.

References:

 IRENA Renewable Energy and Jobs Annual Review 2019

“Green is Gold: How Renewable Energy Can Save Us Money and Generate Jobs”. Greenpeace

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Towards A More Distributed Energy Future

Recently, the Department of Energy (DOE) has announced that it is finalizing the rules on distributed and small scale scale renewable energy projects in off-grid areas in the country. While this should have been done years ago, at least distributed generation is getting its fair share of attention. And the circular should go beyond just generation, it should now allow local groups or communities to establish, for themselves, a distributed energy platform. I have discussed this in another blog where I emphasized the realities of the 21st century in power distribution.

The draft circular entitled “Guidelines Governing the Development, Registration and Administration of Distributed, Small-Grid Renewable Energy Projects and Facilities” aims to promote the development and utilization of Renewable Energy (RE) resources in isolated or off-grid areas through qualified RE developers.

The DOE stresses that the guidelines are in line with the government’s efforts to achieve 100 percent electrification in the country. The Energy Department added that the new guidelines will also help in expanding Distributed Energy Resources (DER) and Distributed Generation (DG) in the country. The former refers to any technology that allows those with distributed generation facilities to be sold back to the grid as permitted by regulators while the latter is  any technology that produces energy outside of the grid. The challenge here, of course, is how much will the “grid” purchase the generated power?  This poses the same problem as “net metering” where power distributors undercut the rooftop solar owners by paying them only the “average” power generation rate.  As solar produces only during the day, the power distributors get an arbitrage by buying low during peak hours.

Under the draft circular, RE developers must apply and register their small-grid facilities of not more than one megawatt capacity. Again, limiting it to 1 megawatt does not make sense.  The whole idea of distributed generation does not imply limits in generation. Hopefully the DOE will see this flaw and amend the circular.

Admittedly, the new guidelines are a welcome development as DGs and DERs are helpful in achieving 100 percent electrification rate for countries, especially those that are archipelagic such as the Philippines. I hope, however, the DOE will push the envelope even further.

DER technologies, which consist of mostly energy generation and storage systems such as batteries and flywheels that are located near the end users are becoming rampant.  Around the world, power systems are moving away from centralized distribution as energy mixes are now integrating DERs,  according to a study of the Massachusetts Institute of Technology (MIT) entitled, “Utility of the Future”. This means that the traditional model of distribution where consumers source energy from a single utility with the help of main transmission lines are slowly being replaced by DERs.

The growth of DERs is due to a variety of factors, the MIT study says. For one, more nations are shifting away from traditional sources of power and are adding more renewable sources into their energy mix. The study notes that the growth of renewable energy is happening partly due to and in parallel with the world’s focus on decarbonizing power systems to combat climate change. As such, many advanced nations are leveraging DERs technologies to distribute cleaner power to decarbonize their countries.

DER system

Around the world, power systems are moving away from centralized distribution as energy mixes are now integrating DERs. Photo c/o of Siemens.com

Welcoming DERs bodes well for the Philippines. The main benefit of DERs is that its distributed nature allows for cheaper, more effective energy distribution services, especially for those without access to centralized resources such as our off-grid islands. 

Renewable energy and DERs mean cheaper power for off-grid areas especially in the Philippines. Various studies have stressed the importance of renewables in achieving electrification at cheaper costs for the country. 

For example, the study entitled, “Electricity-Sector Opportunities in the Philippines: The Case for Wind- and Solar-Powered Small Island Grids,” noted that there’s roughly Php10 billion in savings if the Philippines rely on RE instead of traditional sources of power for off-grid areas or missionary areas. “Small island grids powered by solar, wind, and other renewable energy could reduce dependence on expensively imported fossil fuel generation without compromising the availability of power and grid reliability,” the reported noted.

According to the DOE the Philippines’ electrification rate is at 89 percent. There are still around three million Filipino homes without electricity as of the end of 2018. These DERs then would be helpful in providing stable power to these households.

Aside from helping the off-grid areas achieve electrification, there are still many benefits in integrating DERs in our power system even in on-grid areas. This is because as the MIT study stressed, DERs help competition flourish in the energy sector given. After all, these technologies are changing the way electricity service delivery by altering the use and management of distribution systems. 

The MIT report stressed that current electricity distribution systems create a natural monopoly since regulators are blind to the distribution utilities’ actual cost and managerial efficiencies. This creates an opportunity for distribution utilities to increase their profit by merely convincing regulators that they have higher operating costs than they actually do, which is then passed on to consumers. 

The same cannot be said of DERs along with other technological advancements and mechanisms in the energy sector such as dynamic-based prices, advanced metering and energy management systems. These all require efficient price signal and information control systems.

Indeed, moving to a distributed energy system has many advantages. But changes in regulations must take place, too. Our Energy Department and regulators by this time should be rolling up their sleeves and getting ready to work for a more distributed energy system in the country for the benefit of the Filipino consumers.

References:

https://www.philstar.com/business/2019/05/27/1921099/doe-issue-new-rules-small-re-projects

Utility of the Future by Massachusetts Institute of Technology

https://business.inquirer.net/271715/napocor-sets-bidding-for-2-bohol-projects#ixzz5pmIont8q 

Overtaking Coal

For the first time, renewable energy has generated more electricity than coal in the United States. 

According to the Energy Information Administration (EIA), renewable power has overtaken coal generation last April by 16 percent. And renewables are expected to dominate the US power mix on May with EIA predicting that clean power will eclipse coal power by an additional 1.4 percent. 

Renewables dominating the energy mix of the United States is not a stroke of luck. In fact, clean power will consistently catch up with coal in the US in the near future says the Institute for Energy Economics and Financial Analysis (IEEFA): “Coal’s proponents may dismiss these monthly and quarterly ups and downs in generation share as unimportant, but we believe they are indicative of the fundamental disruption happening across the electric generation sector.”  

The IEEFA also foresees that renewable energy will generate more power consistently this year all the way to 2020 for the US. After all, coal’s share of the overall energy generation has been declining in the past few years from 45 percent in 2010 to 28 percent in 2018. By 2020, coal power is only expected to contribute just 24 percent of the needed power demand for the country.

The US is not the first country to achieve such a feat. Other countries have already managed to generate more power from renewables in the past.  One of the notable examples is Iceland, which produced 97 percent of the country’s household power requirements from wind in 2015. Its neighbor, Denmark also sourced 42 percent of its power from wind turbines in the same year. Similarly, Germany at one point was able to generate 78 percent of the day’s power demands from renewables.

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Germany was able to generate 78 percent of the day’s power demands from renewables at one point. Photo c/o Time.com

The decline of coal power in the US is in sync with the developments in the global energy trends. According to the International Renewable Energy Agency (IRENA), a third of the world’s installed electricity generation capacity in 2018 was from renewables. This is because 2/3 of the added power capacity last year came from renewable power.

Renewable power’s greater share in many countries’ energy mix only shows that renewables are the key to sustainable future notes IRENA Director-General Adnan Z. Amin. “The strong growth in 2018 continues the remarkable trend of the last five years, which reflects an ongoing shift towards renewable power as the driver of global energy transformation.”

The shift to renewable power is much needed since experts have warned us that we only have a few years left to mitigate the effects of climate change. The United Nations in its report Intergovernmental Panel on Climate Change last year stressed that the world only has 12 years to keep global warming to a maximum of 1.5 °C. Otherwise, we will all suffer the risks of droughts, droughts, extreme heat, and poverty. 

Plus, recently, we were greeted with the news that the Earth’s carbon dioxide level is at an 800,000-year high. Our world has breached 415 part per million sometime this May, a level that has not been seen in millions of years according to data from the Scripps Institution of Oceanography at the University of California-San Diego.

Taking drastic actions to limit global warming then is imperative for all of us. This means we should be cutting carbon dioxide emissions swiftly by reducing our fossil fuel consumption, the primary producer of greenhouse gasses. Going to renewable power is one of the best ways to decarbonize countries, after all.

Sadly, and as I have been pointing out, the Philippines is nowhere near the accomplishments of other countries when it comes to shifting to greener and cleaner energy.  Clearly, some of the major developers and major international banks have told me that they are no longer allowed to develop and/or finance coal power projects.

According to IRENA, the Philippines, from 2009 to 2018 only increased the share of renewable energy in the total power mix from 4732 to 6482 megawatts(MW) or roughly 37 percent. This growth is significantly less when compared to some of our Southeast Asian neighbors. For example, Vietnam has managed to grow its renewable power capacity from 7323 MW to 18523 MW or almost 153 percent in the same period. Likewise, Thailand has added roughly 152 percent of renewables into its generating capacity from 4130 MW to 10411 MW as well.

Some argue, that the Philippines only has a small contribution to the world’s carbon footprint. This is probably true, but it does not change the fact that the use of coal and fuel for power generation remains as the biggest contributor to greenhouse gas emissions in the country. However, this is not the only point.  A more important perspective here is the fact that the presence of coal has the tendency of INCREASING power cost.  As I have always argued the volatility of coal prices and the exchange rates contribute greatly to higher power costs.

The Philippine Climate Change Assessment Working Group 3 Report released last year notes that 41.8 percent of GHG emissions of the country comes from coal and fuel used for power generation and continues to grow by 3.7 percent annually. So, yes, there is a need for the Philippines to take drastic steps in decarbonizing our nation. This is feasible only if renewable power dominates our energy mix. And the sooner we act the better for us Filipinos as our country remains one of the most vulnerable countries to climate change. 

Many countries are working harder to do share their share for the environment by turning to renewable power. Soon, nations will have more cleaner energy to use as they walk away from coal. The Philippines is nowhere near such a state. Yet, one can remain hopeful that we can soon see our country is also taking the fight against climate change by like other nations by allowing renewable energy to flourish and surpass coal power in the country.

References:

https://qz.com/1610977/solar-wind-plus-other-renewables-beat-coal-for-first-time-in-us/

https://cleantechnica.com/2016/02/04/how-11-countries-are-leading-the-shift-to-renewable-energy/

https://news.abs-cbn.com/news/11/20/18/greenhouse-gas-emission-in-ph-rising-report

IRENA RENEWABLE CAPACITY STATISTICS 2019

Press Release: Summary for Policymakers of IPCC Special Report on Global Warming of 1.5ºC approved by governments

http://www.ipcc.ch/pdf/session48/pr_181008_P48_spm_en.pdf

https://edition.cnn.com/2019/04/29/business/renewable-energy-coal-solar/index.html

https://www.forbes.com/sites/johnparnell/2019/04/03/one-third-of-worlds-power-plant-capacity-is-now-renewable/#5801d1043064

https://www.usatoday.com/story/news/world/2019/05/13/climate-change-co-2-levels-hit-415-parts-per-million-human-first/1186417001/

They’re Diversifying And We’re Not

Recently, Petronas, the Malaysian oil and gas company has announced that it will be dabbling in the renewable energy sector. The firm recently announced that it inked a deal with Singapore-based renewable energy firm specializing in solar panels, Amplus Energy Solutions.

Petronas said that its deal with Amplus is part of the firm’s strategy to develop solar power plants and rooftop project. This deal says Petronas CEO Tan Sri Wan Zulkiflee Wan Ariffin is the first step into the firm’s diversification.  “This acquisition reflects Petronas’ strategic intent to grow in the renewable energy space as part of our strategy to step out beyond oil and gas into the new energy business. This also represents our first international solar venture and we look forward to providing energy solutions to our customers in these high-growth energy markets.”

Petronas is not alone in turning to renewable power to serve their customers well and maximize their profits. In fact, many Southeast Asian energy companies that are highly dependent on fossil fuels are also entering the renewable energy market in order to meet the region’s demand for electricity.

For example, Thailand-based energy firm, Banpu sources 90 percent of its revenue from its coal plant, but recently entered the renewable energy market. “We will integrate coal with renewable energy with the aim of maximizing profit and meeting social needs,” Banpu’s CEO Somruedee Chaimongkol says.

Banpu, which operates in several Asian countries as well as the United States has installed some 150,000 Kilowatt hour worth of solar generators. The firm also plans to build 80,000-kilowatts wind farm in Vietnam by 2021.

Likewise, State-backed energy companies in Southeast Asia are adopting the same diversification strategy. For example, Tenaga Nasional, a Malaysia energy firm started the commercial operations of its 50,000 kWh solar power plant near Kuala Lumpur, which is one of the largest solar plants in the country. 

Similarly, Indonesia’s state-run utility PLN is tapping on the country’s geothermal potential by purchasing renewable energy generated by independent geothermal power producers.

Darajat_geothermal_plant_Chevron_Indonesia-1024x682

PLN’s Darajat Unit Geothermal Power Plant. PLN is buying renewable energy from independent power producers. Photo c/o http://www.thinkgeoenergy.com

These companies, which once only had coal in their portfolio are probably now seeing the value of energy diversification. 

In energy systems planning, there are three basic properties of diversifications, namely, balance, variety, and disparity as pointed out by Andy Stirling,  a professor of Science and Technology Policy at the University of Sussex.

Variety pertains to the number of energy supply options available. This is what these companies are aiming for as having varied energy types means more diversity in their portfolio.

On the other hand, balance refers to the reliance on each available energy source option available. This means an energy system is also considered more diverse if there are proportionate dependence on each energy source. Disparity pertains to the differences in each power option.

It’s not only companies that will benefit from having a diversified energy mix. As I keep repeating, nations too will be in an advantageous position if there is diversity in their energy system.

For example, the Philippines relies heavily on coal to meet energy demands. This means our power costs go up when prices of coal in the global market increase. It also does not help when the peso falls against the dollar as we import coal. Whether power consumers will pay higher electricity bills highly depends on world prices and the strength of the peso. And this is all because we source most of our energy needs from coal plants.

We also have to remember that fossil fuels are finite resources. What happens then when these resources are depleted?

This is why we need to diversify our the power mix. This means we should be able to source a majority of our power from sources that are not vulnerable to external factors such as exchange rate and global prices. And again, as I have been saying, renewable energy prices can be fixed for many years. Of course, we also have to prepare for the scenario when finite power sources are low in supply or worse, already gone.

On a side note, many see the Supreme Court decision as challenging the supply of power in the future. I think we should take a step back and think of this as an opportunity to re-think about the energy mix of the country.  We have an opportunity to inject more indigenous and renewable energy in the system. We should grab this chance.

Energy diversification indeed has many virtues. Energy companies with mostly coal power plants in their portfolios are now seeing the value of diversifying their energy sources. Sadly, the same cannot be said about our energy system, our planners and regulators in the country.

References:

https://asia.nikkei.com/Spotlight/Environment/Southeast-Asia-s-energy-majors-pivot-sharply-to-green-power2

https://www.power-technology.com/news/petronas-renewable-energy/

Diversity and Sustainable Energy Transitions: Multicriteria Diversity Analysis of Electricity Portfolios By Andy Stirling

What Lack of Competition Means

A recent World Bank report says that more competition in the power, transportation, telecommunication can boost economic growth in the Philippines.

According to the study, “Fostering Competition in the Philippines: The Challenge of Restrictive Regulation,” the above-mentioned sectors are crucial in improving job generation and services in the country. Unfortunately, there is limited competition in these sectors.  

When compared to other countries, the Philippines’ economy is more concentrated due to the higher proportion of oligopoly, duopoly, and oligopoly in the market, the report added.  The author of the report and World Bank senior economist, Graciela Miralles Murciego stressed that such market structures have hampered productivity growth in the sectors: “The entry of politically connected companies limited productivity.”

The study also emphasized that restrictive regulations and restrictions such as complex regulatory procedures and barriers to trade and investments including foreign equity investments have constrained the growth of the economy. This in turns led to the high prices of services. It also cited that the limitations on foreign direct investment have stunted the development of infrastructure in the energy sector.

The World Bank is not alone in pointing out that more competition is needed in the energy sector. For example, the Massachusetts Institute of Technology released a paper, Utility of the Future by Massachusetts Institute of Technology, which concluded that “the structure of the electricity industry should be carefully re-evaluated to minimize conflict. It is critical to establish a level playing field for the competitive provision of electricity services by traditional generators, network providers, and distributed energy resources.” The report may not be talking about the Philippines directly, but it nevertheless echoes the sentiments of the World Bank.

The MIT study added that there is a need to review electricity markets especially since new technologies can be integrated into the power system. “Wholesale market design should be improved to better integrate distributed resources, reward greater flexibility, and create a level playing field for all technologies.”

I have been vocal about the needed reforms by the power sector so Filipinos can enjoy lower electricity rates. Our rules are skewed to favor the few. 

Take for example the lack of competition in service areas. Currently, another power player is barred from offering its services in an area that is already being served by a distributor. This, in turn, creates a monopoly. And as our economic professor will tell us, monopolistic practices will always put consumers at a disadvantage.

It also does not help that we are not allowing more foreign investments in the power sector. As the World Bank Report stressed, limitations on foreign direct investments have curtailed the growth of energy infrastructure. This is especially true for renewable energy development. 

We have to remember that renewable sources need to be explored (as in the case of geothermal) and plants have to be constructed. These undertakings require new technologies and equipment. Foreign investors can provide these two while we limit the foreign investors’ ownership on the natural resources if they are allowed to do so. This is the best way forward if we are serious in shifting to greater use of cleaner and sustainable energy sources.

Unfortunately, our 1987 constitution limits foreign participation in many industries including power. These provisions, however, are already outdated and needs to be revised. Former National Economic Development Authority chief, Cielito Habito emphasized this need aptly when he said, “The hope is we will be willing to amend economic provisions of the constitution because that is what really is holding us back. It is outdated. Many of the restrictions in foreign advertising, mass media, education, are really out of date. Given the technology in recent years, those rationales don’t apply anymore to the information age.”

Time and time again we are reminded by various experts on the many virtues of competition in various areas including the power sector. But these reminders seem to fall on deaf ears. The Philippines still has one of the highest power rates in Asia, and we all have to thank our regulators and policymakers for that.

References:

https://www.philstar.com/business/2019/03/05/1898614/greater-competition-power-telco-transport-boosts-growth-world-bank#UcJx07M8WylEry0k.99

http://www.bworldonline.com/constitutional-amendments-needed-boost-fdi/

Record Breaking 2018

It’s official: 2018 was the fourth warmest year on record for global temperatures. This is according to various organizations such as the National Aeronautics and Space Administration, National Oceanic and Atmospheric Administration and the World Meteorological Organization. (WMO). The global average temperature in 2018 is the fourth warmest since 1880 which is just behind years 2016,2017 and 2015.

According to reports, the world was 1.5 Fahrenheit or 0.83 Celsius warmer in 2018 than the average set between years 1951 to 1980.

Naturally, experts are alarmed at the rising global temperature trend as it reflects the effects of climate change. The 20 warmest years on record have been in the past 22 years. The degree of warming during the past four years has been exceptional, both on land and in the ocean,” said Petteri Taalas, secretary general of the WMO.  “Many of the extreme weather events are consistent with what we expect from a changing climate…This is a reality we need to face up to. Greenhouse gas emission reduction and climate adaptation measures should be a top global priority,” he added.

Fortunately, there are serious efforts from many countries and even the private sector to meet commitments to the Paris Climate Change Agreement in 2015 where leaders agreed to limit global warming to just under two degrees. Various countries and big global firms are in the last three years are working hard to cut down on human-caused emissions of carbon dioxide by shifting to renewable power.

In fact, 2018 was record-breaking too for corporate renewable energy deals.  According to  Business Renewables Center of Rocky Mountain Institute (RMI), the United States renewables market has almost doubled its figure of corporate off-site deals since 2015.

The contracted capacity for renewables by private firms in the US amounted to 6.43 GW last year. Corporate renewable energy buying came in the form of green power purchases, power purchase agreements, outright project ownership, and green tariffs. 

 

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2018 was the fourth hottest year on record. Photo c/o http://www.mysinchew.com/

Corporate giants AT&T, Facebook, Walmart, Microsoft, and ExxonMobil are the top five firms leading the clean energy purchase. Facebook, the biggest buyer last year closed several deals that amounted to 1,8495 megawatts. And the social media giant is proud of its accomplishment.Facebook is proud to contribute to the record-breaking year of corporate renewable energy deals. We believe companies can and should set big commitments to drive our national transition to a clean energy future,” stressed Rachel Peterson, vice president of data center strategy at Facebook. 

The impressive figures from global brands only show that large firms are serious about their commitment to a sustainable and clean future according to the CEO of RMI Jules Kortenhorst. These companies are not  going to wait for public policy on climate issues to catch up,“ they are taking the initiative to accelerate toward a prosperous, low-carbon economy, he added.

Clean energy investments worldwide in 2018 was also remarkable. The Bloomberg New Energy Finance (BNEF) noted that investments in clean power last year amounted to $332.1 billion. The figure is eight percent lower than the amount recorded in 2017, but BNEF notes that 2018 was the fifth consecutive year that the investment exceeded the $300 billion mark.

China and the US were the two biggest investing countries with investments of $100.1 billion and $64.2 billion, respectively.

Other countries also recorded high increases in their clean energy investments. The Netherlands, for example, had a 60 percent increase in RE investments at $5.6 billion while South Korea’s jump was at 74 percent with investments worth $5 billion. Even our neighbor, Vietnam had impressive 18-fold growth in clean power investments last year.

It’s not surprising of course that the Philippines is not in the list of countries that saw major increases in renewable energy investments. As I have been saying, our regulatory environment and lack of government support for clean power hamper the growth of renewable power development in the country. Nevertheless, as a clean and sustainable power advocate, it’s gratifying to see that global brands and governments understand clearly the value of renewable power. After all, renewable energy is a sustainable business practice that also helps the world combat climate change. And as I have expounded repeatedly, it will lower power cost for everyone.

When will change come to the Philippines?

References:

https://solarindustrymag.com/report-2018-a-record-breaking-year-for-corporate-renewable-energy-deals/

https://about.bnef.com/blog/clean-energy-investment-exceeded-300-billion-2018

https://www.theguardian.com/environment/2019/feb/06/global-temperatures-2018-record-climate-change-global-warming