Rolling Out New Programs May Not Be Necessary

It is no secret that the Philippines is heavily dependent on coal for its energy needs.

Data from the Department of Energy show that coal’s share in our country’s energy mix was 35.4% in 2017 up from 34.6% in 2016.  On the other hand, renewable energy contracted last 2018, only contributing 31.1% of the total, down from 32.5% in 2017.

Indeed, the Philippines is declining in terms of renewable energy development.

This is why it’s heartwarming to hear President Rodrigo Duterte address this issue in the last State of the Nation Address (SONA) where he ordered to fast-track the development of renewable energy resources. His exacts words were: “We recognize the urgent need to ensure the sustainability and availability of resources and the development of alternative ones. In this regard, I trust that Secretary Cusi shall fast-track also the development of renewable energy sources, and reduce dependence on the traditional energy sources such as coal.”

Naturally, the Department of Energy (DOE) responded to such call. In a statement, Energy Secretary Alfonso Cusi said that “The DOE is encouraged by the President’s comments. Indeed, his leadership will be pivotal for the DOE to implement policies and regulations that ensure the affordability, reliability, security, and sustainability of energy in the Philippines for generations to come.” 

The secretary promised to fast-track the implementation of the key renewable energy policies, namely the Renewable Portfolio Standard and the Green Energy Option. The former mandates distribution utilities to source a percentage of their power from renewable sources. The latter, on the other hand, empowers consumers to demand that their power comes from renewable sources.

The Energy secretary also said that it is looking at implementing a Green Energy Rate that will help the country to build a renewable energy portfolio of 2,000 megawatts in 10 years. There would be a ceiling rate and a green tariff rate would be auctioned among investors and developers.

Green tariffs and Green Energy Options are nothing new.  Other countries already have these programs, although the Green Tariff in other countries seems to be quite different from the one being planned by the DOE.

For example, in the United States, utility green tariff is optional programs in regulated electricity markets that are offered by utilities and by the state public utility commissions. The program lets industrial customers and large commercial clients purchase bundled renewable energy power with a special utility tariff rate.  It allows utilities to supply large industrial and commercial clients with up to 100 percent renewable power that’s either owned by the utility or sourced from another independent power producer. I’m not sure if this is the model the DOE and National Renewable Energy Board (NREB) are looking at. 

In the United Kingdom (UK), the green tariff is also available and works quite differently.  It is offered to those who want to lessen their carbon footprint with their power consumption by allowing customers to give back the same amount of power consumed back to the national grid in the form of renewable energy. Green tariff can also work by supplying the customer with either 100 percent RE or a portion of.

Clearly, Green tariffs are in place in other countries to help their RE sector prosper as well as to provide customers with cleaner option.

However, in the Philippines, rolling out new programs may not be the most urgent concern if we want our renewable energy sector to flourish. What our regulators must pay attention to are the current programs that hinder the growth of the sector. There is the Competitive Selection Process  (CSP) as it places renewable energy developers at a disadvantage and the Retail Competition and Open Access (RCOA) that fails to help local renewable energy development.

Let’s take a look at the CSP mandating energy demand must first be aggregated then later bid out by a third party. This means that the power capacity becomes large before it can be auctioned off. It is then the large quantity required by the bid that places renewable energy suppliers at a disadvantage. We have to keep in mind that most RE plants have small capacities.  Unfortunately, those with smaller capacities RE plants will be left out in the cold as a result of aggregating the power requirement before the auction.

So, will the planned Green Energy Tariff by the DOE no longer require undergoing the CSP? I am personally curious about the mechanics of this planned program intended to help develop renewable energy in the Philippines. 

Our government should indeed work harder to make renewable energy development a priority. After all, going for sustainable and green energy helps in bringing down our power rates. Renewable power will also provide us with energy security.

As I have been saying, renewable energy, unlike traditional sources of energy are not vulnerable to foreign exchange and world price fuel prices. This means consumers are spared from the consequences of ‘floating contracts’ where Filipinos pay for higher power prices when the peso falls against the dollar or when coal or oil prices in the world market spikes.

Developing renewable power bodes well for us. Traditional sources, particularly oil and coal are finite sources. What then happens when these power sources are low in supply or worse are already unavailable?

There’s also the RCOA that’s also meant to help the sector by allowing a number of customers to source their preferred service provider.  Unfortunately, only those with  750 kilowatts or higher monthly demand can be considered contestable customers, thus restricting the number of consumers that has the option of choosing their power source.

So, yes we can look at other programs to help the RE sector prosper. Unfortunately, DOE has a track record of showing its lack of appreciation on the many benefits of renewable power for the Filipino consumers. 

We have to keep in mind that sometimes new programs, entities or rules can wait. They may not even be necessary. All we have to do is to simply review current regulations and practices rather than find new ones. And if we as a nation want to heed the orders of the President to develop cleaner and sustainable sources of power, then we urgently need to review our current regulations. 

References:

https://www.epa.gov/greenpower/utility-green-tariffs

https://www.comparethemarket.com/energy/information/energy-tariffs-explained/

Coal plants’ share in 2017 energy mix expands to over 35%

Amid fears of global economic recession, let’s worry about high power rates, too

Those who regularly read the business news would know that the US-China trade war has been hogging the headlines way back in 2017.

Two years ago, the United States launched an investigation into China’s trading policies and imposed tariffs on Chinese products worth billions of dollars a year after. Beijing, naturally retaliated.

The trade war between these two countries escalated after China allowed its currency, the Yuan to depreciate for the first time in over 10 years. This move was criticized and China was called a currency manipulator by the US.

I will not delve on how the trade war will place the Philippines in an advantageous or disadvantageous position. I leave that to economists.

Now, perhaps you are wondering why am I writing about this trade war when my expertise is the energy sector?

The answer is simple. The trade war, just like other major global developments in the Philippines  hurt the Philippine peso since global issues such as the spat between the US and China affect emerging economies such as ours.

For example, the peso sank to Php51.955 from Php51.79, down by 16.5 centavos on August 6 after the US tagged China as a currency manipulator. A trader quoted by a Business Word report said that “The peso weakened significantly due to demand for safe-haven currencies after the US Treasury Department labelled China as a ‘currency manipulator,’ further heightening current tensions between the US and China.”

According to S&P Global Ratings director Andrew Wood early August,  the Philippine Peso has been weakening as the trade and currency war of the two giant economies makes currencies vulnerable to downward pressure. “The Philippines and India have relatively strong external profiles, stronger than Indonesia, but they have proven to be relatively vulnerable when we do have these global contagion effects in the currency markets in the past. So the peso and Indian rupee could also be somewhat vulnerable to downward pressure,” Wood said

But the row between China and the US is not the only thing that’s affecting the performance of the Philippine Peso against the dollar.

peso dollar

Some forecasts say that the peso could be on the softer side and go as low as Php 53.50 against the dollar. Photo c/o Business world

For example, worries over a pending global economic recession last August 15 weakened the peso where trading day ended from 52.498 to a dollar from a 52.28 close a day before. “The peso depreciated as a potential U.S. recession pushed investors towards risk aversion,” a BPI Research market report said. It added  that a possible US economic slowdown and reports that Germany posted zero economic growth in the second quarter also caused the Pesos’ depreciation.

Some forecasts say that the peso could be on the softer side and go as low as Php 53.50 against the dollar or even slight below the P54 level if worries over a global economic recession worsen. For example, Mizuho Bank head of economics and strategy Vishnu Varathan as quoted by ABS-CBS news said that “For most of the next half, we’re looking at the peso on the softer side,” he said.

So, what does a weak peso mean for Filipino consumers?

As I have been pointing out, fluctuations to the peso dollar exchange will hurt the Filipino consumers.

I have discussed this at length in many posts. But let me reiterate that our energy planners love for a “floating” power sales agreements (PSAs) and reliance on traditional power sources can cause high energy rates. This is all thanks to the pass-on costs provision in our PSAs where consumers shoulder the cost of the falling peso against the dollar. Unfortunately, our reliance on coal, which we mostly export and pay for in US dollars means that we will pay higher electricity rates when the peso falls against the dollar. It also does not help that our independent power producers also have the majority of their billings in dollar denomination.

Yes, one can argue that the peso may also strengthen despite the forecasts of analysts. But it could also go the other way around.  Unfortunately, there’s no way of exactly predicting what will happen to the local currency. And there lies the problem with the floating PSAs. It leaves consumers in a vulnerable position.

So, again, we must revisit having fixed price contracts work for us as we watch how the Philippine peso fares against the US dollars amid the chaos in the global economy. Let us see the good in letting the consumers pay the  same amount for their electric bill for a specified period regardless of the performance of our local currency. This will ease the burden of consumers who pay more for energy when the peso is weak.

And while we’re at it, helping develop our renewable energy sector will also ease the burden of the Filipinos. Doing so will reduce the need to import traditional power sources that trade in US dollars.

Let the economists and analysts debate on what the government should do in light of the on-going trade wars and possible global economic slowdown. In the meantime, our energy planners should take a closer look at how these global issues will affect power rates and how we can ease the burden of consumers  by turning to renewable energy which can peg electricity rates at a fixed prices and eliminate the need to import raw materials for energy production.

I believe the world will be going towards energy independence as a goal for every household and community.  The reliance on big thermal plants and high voltage transmission networks will wane in the coming years.  Increasingly, electricity consumers will want to have more control of how and when they consume power in their homes.

This development of taking “power in their own hands” will mean that electricity consumers will be able to delink forex and global price risks.  And maybe with more independence, other supply and demand markets, other than WESM, may spring up independently.

Let me discuss these possibilities in my next blog.

References:

https://news.abs-cbn.com/business/08/19/19/peso-seen-in-p5150-p5350-vs-1-range-on-global-recession-worries

Peso sinks further on yuan move

Peso to trade sideways

https://www.philstar.com/business/2019/08/07/1941135/philippines-vulnerable-us-china-trade-tension-currency-war

https://www.pna.gov.ph/articles/1077961

Revisiting Laudato Si (“Praised Be”)

In July 2015,  Pope Francis released the Laudato Si or Praised Be, an encyclical letter on climate change and environment.

The head of the Catholic Church through the 180-page encyclical stressed that climate change is a major problem that all of us should address.

“Climate change is a global problem with grave implications: environmental, social, economic, political and for the distribution of goods. It represents one of the principal challenges facing humanity in our day.”

The Pope warned us of the dangers the world faces if we fail to take care of the environment better, paying extra attention to the possible suffering of those from developing countries.

“Will probably be felt by developing countries in the coming decades. Many of the poor live in areas particularly affected by phenomena related to warming, and their means of subsistence are largely dependent on natural reserves and ecosystemic services such as agriculture, fishing, and forestry.”

The Pontiff simply didn’t criticize humankind for the negligence in protecting the environment. He also offered solutions, saying that replacing traditional sources of energy with renewable energy will go a long way in helping to decarbonize the world.

“We know that technology based on the use of highly polluting fossil fuels – especially coal, but also oil and, to a lesser degree, gas – needs to be progressively replaced without delay. Until greater progress is made in developing widely accessible sources of renewable energy, it is legitimate to choose the lesser of two evils or to find short-term solutions.”

It’s been four years since Pope Francis released the Laudato Si. And the Pontiff continues to campaign for the world to fulfill its obligation of protecting God’s gift, the earth.

Last June, the Pope met with the top executives of global oil and gas corporations in the Vatican where he insisted that carbon pricing is essential to address global warming. He also demanded climate change deniers be open about what science has to say.

The head of the Catholic Church urged to penalize polluters as the word needs a “radical energy transition” away from carbon to save the earth.

The meeting last June is not the first time Pope Francis met with leaders of gas and oil companies. He did the same last year where he said that the continuing search for fossil fuels is “worrying.”

Fortunately, the Catholic Church is heeding the Pope’s call for drastic action and shift to cleaner forms of power.

For one, the Filipino Catholics are working to heed the Pope’s call. A few weeks ago, the Catholic Bishops’ Conference of the Philippines (CBCP) announced that it will stop supporting fossil fuel energy source. Dioceses in the Philippines would instead place their money in renewable energy. Fr. Edwin Gariguez, executive secretary of the CBCP-National Secretariat for Social Action (NASSA), called this decision “A milestone for the Church ecology advocacy.”`

He added that divestment from fossil fuel is part of the CBCP 10-point agenda in following the Pope’s call in the Laudato Si. This comes after the Vatican asked CBCP what the CBCP is doing to respond to the encyclical.

And it’s not just the Catholic Church that seems to be following the words of the Pontiff.

In the United Kingdom, some 5,500 Anglican churches have shifted to renewable energy. According to Christian Aid, 15 Anglican Cathedrals are now using 100 percent green tariffs.

The Bishop of Salisbury, Nicholas Holtam also the Church of England’s lead bishop on the environment said that the Anglican Church’s move for cleaner power is due to the church’s recognition that climate change is “one of the great moral challenges of our time”.

“They are also giving a boost to clean energy which is essential to reduce harmful carbon emissions,” Holtam added.

It is heartwarming to see the Catholic Church and other religions recognize the need for drastic actions in saving our planet. More so, when we aren’t making many dents in saving the planet by limiting energy-related global dioxide emissions.

A report by the International Energy Association (IEA) showed that global energy-related CO2 emissions increased by 1.7 percent in 2018, the highest rate of growth since 2013. “We have seen an extraordinary increase in global energy demand in 2018, growing at its fastest pace this decade,” said Fatih Birol, the IEA’s executive director.

This data only shows that we have to act swiftly and shift to renewable energy as the power sector accounts for at least two-thirds of the energy-related CO2 emissions globally.

We then must act now as Pope Francis urged us to do so four years ago: 

“We may well be leaving to coming generations debris, desolation and filth. The pace of consumption, waste and environmental change has so stretched the planet’s capacity that our contemporary lifestyle, unsustainable as it is, can only precipitate catastrophes, such as those which even now periodically occur in different areas of the world. The effects of the present imbalance can only be reduced by our decisive action, here and now.”

Addressing climate change and the Pope’s call will go beyond just adopting renewable energy and other forms of sustainable energy. I think we need to take a closer look  at how our economies work. We need to delve into the disparity between the rich and poor in the world and why this gap continues to grow. Can capitalism as we know today be the right economic structure that allows the world to address climate change?  Or is it the source of the problem in the first place?

We need to ponder and wonder more if we want to leave to our children and grandchildren a cleaner and more sustainable planet Earth. 

References:

https://www.gmanetwork.com/news/news/nation/700666/phl-catholic-bishops-vow-to-turn-their-backs-on-dirty-energy-sources/story/

https://www.aljazeera.com/ajimpact/pope-world-climate-emergency-demands-radical-energy-transition-190614174457798.html

https://www.cnbc.com/2018/08/03/over-5500-churches-in-the-uk-embrace-renewable-energy.html

Race Against The Clock

 

A study revealed that 77 percent of the major cities in the world will experience drastic changes in climate conditions by 2050. I won’t be around by then but my grandchildren will be around. So this is important to me. 

Crowther Lab, a research group based in Switzerland studied the impact on 250 major cities’ temperature if the world’s temperature reaches 2 degree Celsius. The study is the first global analysis of the likely changes in climate conditions in major cities due to global warming.

The researchers found out that a fifth of the world’s cities will see unprecedented climate changes including intense dry and rainy seasons. These would include Singapore, Kuala Lumpur, Jakarta, Madrid, Seattle, London, and Moscow to name a few.

Just how drastic will the changes be? The study says summers and winters in Europe will be warmer with 3.5 degree Celsius to 4.7 degree Celsius average increases. Another way of imagining it is by measuring the temperature change, which is by thinking that a city would shift by 620 miles further south.

Naturally, the cities farthest away from the equator will experience the most changes in the average temperature. But those near the equator or in the tropics such as Kuala Lumpur, Singapore and Jakarta will feel the strongest impacts of climate change. 

These changes don’t bode well for major cities says Jean Francis-Bastin, the lead author of the report. “It is a change in climate conditions that is likely to increase the risk of flooding and extreme drought,” said Francis-Bastin. 

The Philippines and not just Manila will be greatly affected by climate change, too.

The Global Peace Index 2019, released last June showed that the Philippines is the country most susceptible to hazards due to climate change.

The study revealed that 47 percent of our country’s population is located in areas highly exposed to climate hazards such as tropical cyclones, tsunami, floods, and drought.

Our Southeast Asia neighbors such as Bangladesh, Myanmar, Indonesia also made it to the list of the countries being at the highest risk because of climate change.

Manila also ranked seventh with most risk to a single hazard while our neighbor, Vietnam landed the first spot for this category.

Indeed, the Philippines and the rest of the world are constantly reminded to take serious efforts in limiting the effects of climate change. And we need to act fast as stressed by Francis-Bastin: “We definitely and very quickly need to change the way we are living on the planet. Otherwise, we are just going to have more and more droughts, flooding and extreme events.”.

Fortunately, nations responded to these warnings as early as 2015 by committing to limit global warming to just 1.5 c in the 2015 Paris Climate Change accord. But how is the world faring?

Unfortunately, the world’s temperature continues to increase. In 2018, the world recorded its fourth warmest year on record. 

But this is not to say that nations are not making any progress at all in decarbonizing the world. On the contrary, data show increases in investments in renewable energy and rapid developments in the use of clean power around the world. 

For example, the Bloomberg New Energy Finance (BNEF) showed that 2018 was the fifth consecutive year that investments in renewable energy exceeded the $300 billion mark.

Similarly, the Business Renewables Center of Rocky Mountain Institute (RMI) also showed that in 2018, the United States renewables market has almost doubled its figure of corporate off-site deals since 2015

As most know, shifting to renewable power is one of the best ways to help limit the effects of climate change. But are these investments and developments enough? 

Apparently not, says the United Nations Development Goals report 2019 after tagging climate change as “the defining issue of our time and the greatest challenge to sustainable development.”

The UN Under-Secretary-General for Economic and Social Affairs, Liu Zhenmin, in his introduction to the report stressed that cutting greenhouse gas emissions is the most crucial task to mitigate the effects of climate change. He noted that “As we are already seeing, the compounded effects will be catastrophic and irreversible: increasing ocean acidification, coastal erosion, extreme weather conditions, the frequency and severity of natural disasters, continuing land degradation, loss of vital species and the collapse of ecosystems.”

Unfortunately, current scenarios and actions to help the environment are not enough. The world may be seeing an increase in renewable investments but the  UN report emphasized that investments in fossil fuels still outpaced the $781billion recorded in 2016 as the figure is significantly higher than the  $332.1 billion investments in clean power in 2018.

Indeed, we are racing against time if we want to save our environment for the future generations. Drastic actions must be taken. The UN report emphasized it best by saying “Unprecedented changes in all aspects of society will be required to avoid the worst effects of climate change.”

References:

https://www.channelnewsasia.com/news/singapore/singapore-kuala-lumpur-unprecedented-climate-change-2050-11710274

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://news.abs-cbn.com/spotlight/06/15/19/country-most-threatened-by-climate-change-study-says-its-philippines

The New Age of Grids

The Philippines finally appreciates the value of smart grids.

For starters, the upcoming 200-hectare New Clark City (NCC) located in Clark’s special economic zone will boast of having the first completely smart power grid in the Philippines.  The NCC, after all, is designed to be the country’s first smart, sustainable and disaster-resilient city.

NCC’s owner, the Bases Conversion and Development Authority (BCDA) already inked a deal with the Meralco-Marubeni Consortium to be the city’s power distributor. This, after the consortium, won the bidding with their proposed tariff bid of Php 0.6188 per kilowatt-hour (kWh). The tariff rate is lower than the Php1.25 kWh tariff ceiling set by the BCDA for power distribution.  It is also cheaper than the Php1.24 kWh rate of Mactan Electric, the lowest distribution supply metering tariff under the traditional distribution system.

The smart city will have state-of-the-art facilities on par with other smart cities around the world.  The smart grid in the NCC is seen to have better reliability standards and will allow customers to access real-time information from the distribution utility. Distribution lines will be underground adding to the aesthetics of an environmental-friendly city.

Plus, just recently, the National Electrification Administration (NEA) has announced that it has piloted a smart grid technology aimed at improving the reliability of a Batangas electric cooperative’s distribution system with the help of the Japan International Cooperation Agency. The technology to be used in this pilot is the Distribution Automation System that is expected to improve the distribution system reliability as well as lessen the duration of a power outage. These are all thanks to automation.

NEA says the smart grid technology will hopefully do wonders for the operational efficiency, particularly the reliability of the cooperatives’ system reliability.

Indeed, smart grids are now making their way to the Philippines. And why not when there are so many advantages in investing in modernizing our power distribution system?

For one, smart girds, unlike the traditional grids allows for two-way communication of electricity data thus providing real-time data collection on the power demand and supply during the transmission and distribution.  This means that the electrical grid can respond quickly to changes in the power demand, thanks to the grid’s controls, automation, computation, and equipment. The said cannot be said of the traditional grid that has a one-way interaction during generation and consumption.

smart-grid-Borg-2

Smart grids empowers consumers by providing real-time data on power demand and supply. Photo c/o telecomdrive.com

 

Smart grids also empower consumers by providing them with information on when the power demand is at its lowest or highest. This information allows them to schedule high energy-consuming activities such as ironing or running the washing machine when electricity costs are lowest. Plus, smart grid coverage lets consumers purchase their electricity straight from retail suppliers.

Another benefit of smart grids is its ability to integrate renewable energy into the system.

In the case of the NCC, the BCDA plans to integrate embedded generation that has renewable energy as its primary power source. The city can also source its power from rooftop solar PVs, waste-to-energy and natural gas, among others.

Clearly,  modernizing our power system with the help of smart grids is a great way to move forward. But, of course, regulations must also be updated as we shift to the smart grid.

Currently, the Philippines has no rules concerning smart grids. The Department of Energy has said that a roadmap for smart grids in the country is underway and will be released by the third quarter of this year in the form of a department circular.

Hopefully, this roadmap will be able to address issues regarding the use of smart grids such as smart meter, real-time dynamic pricing, and grid cybersecurity, to name a few. May it will pave the way for the proliferation of smart grids so that Filipino consumers can take advantage of such technological advancements.

Finally, let me say that the advent of smart grids will lead to the integration of ICT and power systems. This will lead further to the development of data centers nationwide, increase in the number of internet exchange servers, and eventually bring down the cost of both power and telecommunication services. The distribution grids that can adapt to these developments will be those that have the 21st technologies at their disposal. This will indeed help spur the development of the country. As I said, however, only competition in the distribution sector can speed this up.

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

Attachment.png