From Second To Third: How PH Dropped To 3rd Place in Geothermal Power Production

The Philippines was once the second largest producer of geothermal power in the world. Sadly, this is no longer true.

Last year, the Mineral Resources Industry of Indonesia announced that its country’s geothermal power production has reached 1,800 megawatts (MW), making the country the second largest geothermal power producer. The Philippines, on the other hand, production has decreased from 1850 MW to 1600. We now just rank third.

There are many reasons for our country’s lower geothermal power production. And we need to look at the history of geothermal power development in the country to understand how we got to our current state.

In the early 1970s, the government had a partnership with Union Oil Company of California, or Unocal, now known as Chevron. Under this partnership, the Unocal will provide technical expertise while the Philippine government, through the National Power Corporation on NPC will build and operate the geothermal plants. In 1976, the government decided to do away with the private sector and build and do the exploration with Philippine National Oil Corporation-Exploration Development Corporation (PNOC-EDC) as the head agency.

At the height of the power crisis in the 1990s, the National Power Corporation signed an agreement with PNOC-EDC, then a government corporation, to develop and provide 700 MW of geothermal power in Leyte. This move catapulted the Philippines to the second largest producer of geothermal power in the world. We were second only to the US.

The Electric Power Industry Reform Act or EPIRA was a game changer for the energy sector. With the passage of this law, geothermal power exploration and development was left to the hands of the private sector. This means that the private sector has to spend for the exploration of possible geothermal sources and build the power plants, which are expensive. Exploration expenses cost more than half of the total project cost for geothermal power plant projects. And test drilling just a single hole can cost some $5 million as it is the most costly phase of the exploration. It is the private firm that assumes the cost and risk of the exploration activities.

The high capital needed for greenfield exploration is one of the reasons why most private entities stay away from geothermal power development. There was a time when the government shouldered the cost of the preliminary survey of the areas, but this is now being assumed by the private sector developer.

Unfortunately, our regulations do not help in making geothermal exploration and development enticing to investors. On the contrary, our regulators have little appreciation for the risks being taken by geothermal developers in our tariff setting.

geo

I have talked about this greatly in a separate post. But to put it simply, we use the BETA in the computation of the cost of equity under the Capital Asset Pricing Model or CAPM for our tariff setting. The Beta in the tariff equation determines the return on equity for any project. And sadly, the Energy Regulatory Commission uses the same Beta of ~1.03 for all power plant project regardless of technology. This means that the ERC does not consider the risk profile of the power plant project. This is an incorrect application of the CAPM and sadly puts geothermal power developers at a disadvantage since they assume the high-risks of the exploration but will not be properly compensated for it.

Why the ERC insists on using the same Beta for all power projects is mind- boggling especially since it has long been established that geothermal development is a high-risk undertaking. A study conducted by the International Finance Corporation years ago concluded that only 60 percent of the explored holes during geothermal exploration worldwide turned out to be successful.

The ERC’s attitude towards geothermal energy is just one of the regulatory issues that renewable energy advocates and developers have to contend with. Overall, previous administrations have paid little attention to renewable energy development anyway. Unfortunately, the lack of opportunities in this field has also lead geothermal energy experts to find work in other countries such as Indonesia.

It is no wonder why many local investors are not too keen to get into geothermal development in the Philippines. It also does not help that our constitution prevents us from getting more foreign investors to help us develop our natural resources.

It’s sad that a country like ours is missing the missing out on the benefits of geothermal power. The Philippines also has a great advantage in geothermal since we are located in the ring of fire and has many volcanic areas where geothermal resources are abundant. In fact, some studies show that the Philippines 2,047 MW of proven reserves and 4,790 MW of potential reserves.

We have to keep in mind that geothermal energy can act as a base load plant, which makes it a great substitute for traditional sources of power. And if we can just use geothermal power to replace coal, then we can surely enjoy cheaper power rates. Geothermal energy, as well as any other renewable power technologies, have a fixed price as I have discussed previously. This means Filipinos will no longer have to pay for the fluctuating cost of international coal prices and foreign exchange rates.

The Philippines’ drop to third place in geothermal energy production worldwide only shows that the lack of government support for renewable energy development has dire consequences. It may be a pity that we now rank lower than our neighbor. But what’s worse is that our country is failing to harness its rich natural resources properly for the benefit of the Filipino consumers.

References:

https://www.pwc.com/id/en/media-centre/infrastructure-news/infrastructure-news—archive/december-2017/indonesia-second-biggest-geothermal.html

Isn’t It Ironic?

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Record-breaking year for ocean temperatures in 2018. Photo c/o Business Insider

Germany recently made an announcement that it will end its dependence on coal power plants by 2038 in an effort to meet its commitment to the Paris climate change goals. Reports noted that the country intends to reduce its coal energy capacity from 42.6 gigawatts (GW) to around 30 GW in 2020 and to 17 GW by 2030.

Germany at present still sources 40 percent of its power needs from coal. Last year was a first for the country as renewable energy dominated the power mix.

Hans Joachim Schellnhuber a member German coal exit commission hailed the decision as a move that’s very much needed in this day and age “ This is an important step on the road to the post-fossil age – a step that also opens up new perspectives for the affected regions through innovation-driven structural change.”

And I agree that the move is a step in the right direction. Each country needs to make drastic actions to help keep the world’s temperature at the desired levels. After all, the United Nations recently warned us that we only have 12 years to keep the world’s temperature to a maximum of 1.5 °C. Otherwise, we will suffer from worsening of risks of floods, extreme heat, droughts, and poverty.

We are already, of course, seeing the effects of climate change.

For example, as early as November last year, experts have warned that 2018 was likely to be the fourth hottest year on record. There is no confirmation of this record as of now. But what has been confirmed is that 2018 is that ocean’s had their warmest year on record.

The study that was published in the journal Advances in Atmospheric Sciences noted that the hot record indicates the enormous amount of heat is being absorbed by the sea due to rising of greenhouse gas emission. Rising ocean temperatures are not to be ignored says, experts, since they contribute to intense hurricanes and destruction of coral reefs.

Plus, the world is likely to suffer from El Nino this year, which will make 2019 as most likely to be the hottest year on record according to the Climate Prediction Center.

These warnings, of course, are pushing many countries, like Germany to step up their fight against dirty sources of power and honor their commitment to the Paris agreement in 2015.

The Philippines, unlike Germany and other countries, are far from making waves when it comes to greater use of renewable. This is a pity since we Filipinos have more reasons to shift to renewable power.

For starters, we are a country that is endowed with plenty of natural resources. We are just the third biggest geothermal power producer in the world. The Philippines used to be second, but sadly was overtaken by Indonesia (which merits a separate article). We are also a tropical country as well. Yet here, we are a nation that has coal plants as the major source of energy.

It also makes sense for us to do our share to help the earth limit its global warming. The Philippines, after all, has been tagged as one of the most vulnerable nations to climate change. But we are a country that has pushed back its target of sourcing 35 percent of overall energy needs by 2030 to 2040.

Plus, there’s a clamor renewable power among Filipinos. A survey by Pulse Asia last year showed that 89 percent of Filipinos are in favor of renewable energy. But alas, the country will be adding some. 10,423 MW of coal power.

We have every reason to shift to renewable energy. We have the natural resources. We are a country that suffers greatly from the effects of climate change. Our citizens want cleaner forms of energy. But no, we remain a nation dependent on coal. How ironic. And sad.

References:

https://www.philstar.com/business/2018/12/26/1879827/iemop-proposes-nationwide-system-renewable-energy-development

https://www.accuweather.com/en/weather-news/2019-may-be-the-warmest-year-on-record-as-a-result-of-an-el-nino-event-exacerbated-by-global-warming/70006943

https://edition.cnn.com/2019/01/16/world/climate-2018-hottest-year-for-ocean/index.html

Good and Sad Headlines

 

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Renewable Energy dominated the power mix of Germany in 2018. Photo c/o Time.com

The New Year started with news of record highs for the renewable energy sector.

In Germany, renewable energy dominated the power mix for 2018. A study by Bruno Burger of the Fraunhofer Institute for Solar Energy Systems showed that Germany is on its way to becoming less dependent on fossil fuel as renewable energy accounted for 40 percent of the country’s electricity production in 2018 while 38 percent came from coal. This is the first time renewables has overtaken coal as Germany’s primary power source. Wind power also became the second biggest power source.

Similarly, a  new record high in renewable energy use was also recorded last year by the United Kingdom (UK).

According to climate research and news site, Carbon Brief, growth in renewable energy use in the UK rose to 33 percent, a record-breaking figure. On the other hand, fossil fuel use dropped to 46 percent, the lowest ever recorded as many coal power plant closed last year. The UK has earlier pledged to phase out all coal plants by 2025.

These two countries’ achievements only show that indeed a shift to cleaner forms of energy is possible.

Unfortunately, the Philippines has not been making headlines for its use of renewable power.

On the contrary, recent headlines about the energy sector talks about the increase in power rates due to the second tranche of the Tax Reform for Acceleration and Inclusion or TRAIN law.

The second installment of the law equals an additional excise tax of Php2.00 per liter of diesel and gasoline an added 12 percent value for 2019. The total increase per liter of diesel will be Php2.24. Last year, Php 2.50 taxes were levied on diesel and bunker fuel.

Naturally, the new taxes will have a domino effect on consumer prices, transport fares, and yes, power rates.

No, I am not questioning the merits of our new taxation scheme. I leave that to tax experts and economists. What I am merely pointing out is that the new taxes also increase power rates because of the Philippines’ dependence on traditional sources of power.

Estimates by The Independent Electricity Market Operator of the Philippines (IEMOP) show that the second tranche of TRAIN law will raise electricity prices by P0.1111 per kilowatt hour (kWh). By 2020 or on the third installment, the increase would be P0.1311 per kWh. The first phase already raised electricity prices by P0.0904 per kWh. These estimates according to IEMOP are based on the assumptions of Manila Electric Co. (Meralco) related to its sourcing energy mix.

Naturally, the power rates will increase if fuel prices in the world market increase, too. In the words of IEMOP President Francis Saturnino Juan, “So, these are the incremental amounts, but of course if the price of fuel itself will increase, then that will add to this incremental increase in 2019 and 2020 because of the staggered increase in the implementation of the law,” he said.

The issue of increasing power prices is a separate one from that of volatility. Volatility itself causes over-all costs to rise because of uncertainty. Because we are dependent on global markets, necessarily we are exposed to global price swings.

We could have spared the Filipinos from this additional burden if we increased the share of renewable power in our power mix a long time ago. Why pay more for expensive sources of energy when we could have just harnessed our natural resources well? This is especially true for off-grid islands that are powered on diesel-fired generators. We have to keep in mind that 80 percent of the operating cost of power generation in isolated islands are spent on diesel. And with added taxes on petroleum products, we can expect higher prices of power generation for the off-grid areas.

That’s just the problem with our reliance on traditional sources of energy and the government’s lack of appreciation for renewables — it leaves Filipinos vulnerable to a variety of factors. Sadly, it is the consumers that suffer when there is no political will to push for a greater share of renewable energy.

References:

https://businessmirror.com.ph/after-hurdling-2018s-regulatory-crisis-power-industry-players-are-ready-for-year-of-the-pig/

https://www.independent.co.uk/environment/renewable-energy-germany-coal-power-environment-green-solar-wind-a8711176.html

https://www.ft.com/content/ea2feb40-0e8e-11e9-a3aa-118c761d2745

More Competition in the New Year and the Coming Years

The previous year ended with news that the Meralco-Marubeni Consortium won the bidding for power distribution of the New Clark City, the first city in the Philippines to have a smart-power grid and underground cables. This means that residents and business of the smart city will enjoy low utility rates.

The Bases Conversion and Development Authority (BCDA), owner of the New Clark City is set to ink the agreement this month with the Meralco-Marubeni Consortium, consisting of Meralco, Marubeni Corp., Kansai Electric Power Co. Inc., and Chubu Electric Power Co. Inc., Their proposed tariff bid was P0.6188 per kilowatt-hour (kWh).

The Meralco and Marubeni consortium was able to beat the Aboitiz-Kepco Consortium of the Olongapo Energy Corp. and Kepco Philippines Holdings Inc, which proposed a P0.9888 per kWh tariff.

It is worthy to note that both bids were lower than the tariff ceiling Php 1.25 kWh set by the BCDA for power distribution. The proposals are also cheaper than the Php1.24 kWh of Mactan electric, the lowest distribution supply metering tariff that’s under the traditional distribution system.

This bidding is proof that competition, as any economist worth his or her salt would know, would always benefit consumers. And competition in the distribution of power is what the Filipinos need to enjoy cheaper power rates. Although the game I talk about is not exactly in this context, but this recent bidding gives flavor to what I mean.

And since it is the start of the year, let me share my reflections on what can be done to achieve lower electricity bills for all of us.

We can start by allowing more franchise holders in a single area rather than stick with the current rules of only granting a franchise to one. The logic is simple. Firms vying for the same customer base will find ways to beat their competitors either concerning better service or price.

Unfortunately, allowing just one franchise holder per area fails to push the franchise holder to improve its services and offer competitive pricing. This is what monopoly does– leave the firm to dictate prices and be complacent in its service delivery. If several businesses are competing for the same customer base, then surely we can expect players to always be on their toes to find ways to beat other firms or electric cooperatives.

Our lawmakers can also review the rules for the Retail Competition and Open Access (RCOA), too. Present rules, after all, require that only those with 750 kWh or higher monthly peak demand or contestable customers can choose their power providers. This means those with lesser than 750 kWh or captive customers are not given that option.

But why should we single out those with higher consumption and not give the option to all power consumers to choose their sources and distributors? If indeed the consumers’ welfare is the top priority, then we should also allow captive customers this alternative. We need to have some solutions to what people expect to be “stranded assets.” This, surely, can be addressed. We just need creativity here.

These are just some of the changes we need if we want Filipinos to benefit from the essence of EPIRA, the law crafted to foster more competition in the energy sector. We need to make major changes if indeed the Filipino consumers’ welfare is of the utmost importance.

The New Year brings hope to all of us. And, it is my wish for the New Year that our regulators would see the critical role that competition plays in the energy sector and have the political will to make the changes needed.

We Only Have 12 Years

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The world only has 12 years to limit climate change catastrophe. Photo c/o https://www.independent.co.uk

The United Nation (UN) has released a strong and urgent warning: The world only has 12 years to limit climate change catastrophe. And God willing, I will only be 72 by then. My first grandson will only be 12. So, the warning is very personal to me, as it should be to you.

This warning came from the world’s leading climate scientists with the landmark report by the UN Intergovernmental Panel on Climate Change (IPCC), a result of years of research from the 6,000 scientific studies assessed. The goal of the study was to gather all available scientific literature and make recommendations to help governments in their effort to combat climate change as well as support economic development.

According to the study, the world only has a dozen of years for global warming to be kept to a maximum of 1.5 °C and going beyond even by half a degree will mean worsening the risks of floods, droughts, extreme heat and poverty for all of us.

“One of the key messages that comes out very strongly from this report is that we are already seeing the consequences of 1°C of global warming through more extreme weather, rising sea levels, and diminishing Arctic sea ice, among other changes,” Panmao Zhai, one of the Co-Chairs of IPCC Working Group said.

The report stresses that many climate change impacts can be avoided if the world’s global warming is limited to 1.5°C instead of 2°C as committed in the Paris Agreement in 2015.

For example, the global sea level rise is likely to be 10 cm lower by 2100 if global warming is 1.5°C instead of 2°C. Similarly, around 99 percent of coral reefs would be lost with 2°C while only 70 to 90 percent decline at 1.5°C. Plus, at 2C, the Arctic will be iceless during summer at least once per decade instead of once per century.

The impact on the world will be significant especially for the already vulnerable countries if global warming is not limited to the recommended temperature. The rise of the sea level will force hundreds of millions out of their homes while crop yields in sub-Saharan Africa, Southeast Asia, and Central and South America will enormously diminish.

“Every extra bit of warming matters, especially since warming of 1.5ºC or higher increases the risk associated with long-lasting or irreversible changes, such as the loss of some ecosystems,” Hans-Otto Pörtner, one of the co-chairs of the IPCC Working Group pointed out.

This is a gloomy warning and the most urgent call for drastic changes that are based on the most comprehensive data analysis.

There is still hope, according to the scientists, but swift actions must be made.

“The good news is that some of the kinds of actions that would be needed to limit global warming to 1.5ºC are already underway around the world, but they would need to accelerate,” Valerie Masson-Delmotte, one of the co-chairs of the study stressed.

Drastic steps needed include lowering the global net human-caused emissions of carbon dioxide carbon dioxide (CO2), which would need to fall by about 45 percent by 2030 from the 2010 levels. By 2050, it should be around ‘net zero’.

So, what do we need to do to cut our CO2?

The study says, one of the ways of cutting CO2 emissions swiftly is to lessen our fossil fuel consumption, the primary producer of greenhouse gasses. Renewable energy sources should dominate the energy mix at 85 percent share of power needs by 2050 if we are to limit our CO2 emissions.

This is not the first time that we have been warned about the harm of failing to act swiftly on global warming. There have been a lot in the last few years except this warning from the UN is based on the most comprehensive study of scientific data.

Indeed, the time to act fast is now. And we can start in our backyard. The Philippines, after all, is one of the most vulnerable countries to climate change according to Moody’s. And it does not help that we are not doing much to help the world reduce its CO2 emissions.

The Philippines can heed the call to cut down on greenhouse emissions by diversifying more into renewable energy. We are after all blessed with natural resources to make a transition. It is the lack of political will that prevents us from doing so.

We only need to take a look at how slow the country’s transition to cleaner forms of energy. Our numbers do not show much improvement. For example, on a year-on-year growth, the Philippines coal import volume increased by 16% from 2015 to 2016 and the growth of installed capacities of coal-fired plants climbed by 87% from 2005 to 2016. There’s another 10,423 MW is in the pipeline.

May this warning from scientists serve as a wake-up call to all of us, particularly those who are in charge of making the shift to clean energy possible. Our government only needs to keep in mind that failure to act now is not helping the Filipinos and the rest of the world.

References:

https://www.bworldonline.com/philippines-rated-among-most-vulnerable-to-climate-change-in-new-moodys-ranking/

Press Relese: 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

Off-Grid Renewable Energy is the Way to Go

 

Southeast Asia Market Analysis man on boat solar panels

Growth of off-grid renewables in Asia increased to 4.3 GW in 2017 from 1.3 GW in 2008. Photo c/o http://www.irena.org

The number of people served by off-grid renewables around the world has increased six-fold since 2011 as there are roughly 133 million people enjoying renewables in remote areas in 2016 according to International Renewable Energy Association in its report, Off-Grid Renewable Energy Solutions: Global and Regional Status Trends.

Of the 133 million, there are 100 million who are using solar lights, 24 million solar homes and nine million are connected to a mini-grid.

In terms of capacity, off-grid renewable capacity has also increased three-folds from under two gigawatts in 2008 to 6.5 in 2017.

The report noted that growth came from the Asia and Africa regions with 76 million Asians and 53 million Africans enjoying the benefits of off-grid renewable energy. Asia accounted for the most significant growth over the last decade from 1.3GW in 2008 to 4.3 GW in 2017. The population that’s enjoying RE in the region has increased by eight times, from 10 million in 2008 to 76 million in 2016.

The growth of renewable energy use in remote areas is not surprising since it has long been established that renewable can reduce energy poverty as well as help lower power costs even for isolated areas.

In the Philippines, various studies are concluding that the country will have big savings by using renewables for off-grid locations.

For example, recently, the Access to Sustainable Energy Program (EU-ASEP), a European Union (EU) funded program has said that the National Power Corporation can save as much as Php 2.25 billion, which is the equivalent of Php 4.50 per kilowatt-hour if the agency chooses hybrid technology for its mini-grids.

The EU, through its strategic advisor of the study, Dr. Christoph Menke defines hybrid mini-grid as “combines at least two different kinds of technologies for power generation and distributes the electricity to several consumers through an independent grid.” This means combining renewable energy with a traditional source of power such as diesel power plants as what most off-grid islands use for their energy.

The Php 2.25 billion savings is feasible, our Energy Department confirms in a statement: “Hybridization, in combination with properly maintained generator-sets will enable NPC to save around P2.25 billion annually.”

The EU-backed research is not alone in emphasizing the importance of adding more renewables for off-grid islands in the Philippines.

Similar recommendations were provided by the paper entitled “Electricity-Sector Opportunities in the Philippines: The Case for Wind- and Solar-Powered Small Island Grids,” which stressed that country could save as much as Php10 billion if off-grid islands use RE rather than traditional power sources.

The study also noted that shifting to more use of renewable power will not affect the availability of power in these 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.”

Choosing renewables is the best solution to address energy poverty in the country especially when there are some 2.4 million Filipinos homes without access to poverty as of 2014.

Energy Undersecretary Felix William Fuentebella has recently announced that the Energy Department is ready to release a Department Circular named Renewable Portfolio Standards Rules for Off-grid Area, mandating industry players of off-grid and missionary areas to source a part of their needs from renewable sources. The RE requirement or percentage, as well as the yearly incremental RE generation in every off-grid area yet, has to be determined.

The circular could have been released much earlier given that the need to provide access to power and lower energy rates has been there all along. Nevertheless, may this circular help in providing stable and affordable electricity to fellow Filipinos living in isolated areas.

References:
Off-Grid Renewable Energy Solutions: Global and Regional Status Trends IRENA
http://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Jul/IRENA_Off-grid_RE_Solutions_2018.pdfhttp://www.irena.org/-/media/Files/IRENA/Agency/Publication/2018/Jul/IRENA_Off-grid_RE_Solutions_2018.pdf

Electricity-Sector Opportunities in the Philippines: The Case for Wind- and Solar-Powered Small Island Grids. The Institute for Energy Economics and Financial Analysis

https://business.mb.com.ph/2018/09/11/doe-eu-estimate-p2-25-b-savings-in-hybrid-solution-for-off-grid-areas/

https://www.manilatimes.net/energy-circulars-on-uniform-electricity-bill-re-use-inked/438275/

Failing Miserably

According to the Bloomberg New Energy Outlook (NEO), renewable energy will lord over the power mix by 2050.

The NEO notes that since the 1970s, fossil fuels have dominated with 60 to 70 percent of the global power generation, but this would soon come to an end.

By 2050, almost 50 percent of total power globally will come from solar and wind technology. Together with hydro, nuclear and other renewables, the total contribution of zero carbon power will be 71 percent.In contrast, fossil fuels will only account for 29 percent, down from its current 63 percent contribution.

The shift to 50 percent renewable energy power scenario is driven by the falling prices of solar PV, wind, and battery technologies. The average PV plant costs will fall by 71 percent by 2050 according to experts. My own personal experience has shown that. Wind is also expected to drop to 58 percent.

Saltwater-Battery-feature-image

A major shift to renewable energy is possible due partly to falling prices of battery storage. Photo c/o Edgy Labs

Battery capacity will receive a total of $548 billion in investments, which will account for its expected price drop. One of my business partners has invested in the flywheel battery storage technology and is experiencing a surge in demand for his batteries.

Indeed, the world is heading towards greater use of sustainable energy. How I wish we can say the same for our country.

It is no secret that the Philippines seems to be heading towards the opposite direction as one of our senators pointed out recently. In fact, just recently the Department of Energy (DOE) has recommended the importation of dirtier fuel, Euro-2 compliant type of fuels. The Philippines is now importing Euro-4 compliant, a much higher quality fuel. Euro 2 is cheaper because its quality is poorer. You get what you pay for.

Senator Loren Legarda, a staunch advocate of renewable energy, has lamented that the Philippines is failing miserably in implementing the Renewable Energy law passed 10 years ago.

In a speech, she stressed that “While many initially thought that the adoption of the RE law in December 2008 represented a firm and decisive policy position on the country’s shift to cleaner and indigenous forms of energy, stakeholders, to date, continue to grapple with mixed signals from those charged with implementing the RE law.”

Legarda added that the Philippines had increased its coal imports at a yearly average of 12.8 percent from 1989 to 2015.

From 2015 to 2016, coal imports volume was even higher by 16% from 17.3 metric tons to 20 metric tons.

She also lamented the growth of installed capacities of coal-fired plants which climbed by 87% from 3,967 MW in 2005 to 7,419 MW in 2016. Another 10,423 MW is in the pipeline.

In contrast, there has been a decline in the renewables’ share in 2016 from 32% from 33.5% in 2005, while coal climbed from 25% in 2005 to 35% in 2016.

Time and time again, renewable energy advocates like myself openly call out to the government to take serious measures to fulfill what the RE law requires.

Other countries including neighbors such as India are making significant progress in their goals to shift to greater use of renewables. Unfortunately, the Philippines is nowhere near its goal of sourcing 30 percent of power from clean sources.

Legarda said it well when she reminded us that it had taken 18 years to pass the law, but it seems harder to implement it: “It was hard then, but even more so now, to convince naysayers on the importance of renewable energy in the country’s development agenda…To date, those charged with implementing these policy mechanisms seem to want to continue the debate on matters decided upon by legislators ten years ago.”

Hopefully, those in charge see the need of implementing the RE law swiftly. Our recent experience with the monsoon rains in the second week of August, which left Metro Manila and nearby areas flooded should convince us that we need to take care of the environment. This includes following laws intended to spare us from the effects of climate change. Plus, of course, we need renewable power for a more sustainable economic growth.

References:

New Energy Outlook 2018: https://bnef.turtl.co/story/neo2018?teaser=true

http://www.bworldonline.com/legarda-cites-slipping-renewable-energy-share/