We Pay Higher With A Weaker Peso

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The Philippine Peso has been falling against the greenback in the last few weeks. Tagged by Bloomberg as Asia’s worst performing currency, our currency has lost 1.6 percent this year. Bloomberg also noted that the Philippine peso is also the worst performer among emerging markets, only next to the Argentina Peso.

Both forecasts by DBS Bank and Bloomberg also predict that the exchange rate would be P52 to a dollar by year-end, In fact, according to DBS Bank, the weak peso could continue until middle of next year.

The weakening of the peso is a result of various factors. Unfortunately, a shrinking peso against the dollar is detrimental to normal Filipinos if we are talking about their power rates. The falling peso could spell doom for many Filipinos, mainly because the lower peso would increase power prices.

As I have pointed out in previous posts, our Power Sales Agreements or PSAs have the provision for the pass-on costs where the consumers pay for the foreign exchange and fossil fuel upward price adjustments. To put it simply, the consumers will pay for the weak peso in their electric bills.

Remember December last year where the biggest power distributor announced a P0.1011 per kilowatt-hour (kWh) increase because of the upward adjustment in the generation charge caused by the significant weakening of the peso against the dollar. A news report then noted that the peso slid down to P49.73 in November from P46.59 to a dollar from August of the same year. That’s almost a three peso difference in three months, which resulted in the increased electricity bill. We have to keep in mind that the largest DU in the country sources its electricity from independent power producers, which, unfortunately, have 90 percent of their billings in dollar denomination.

As I have discussed in detail, our energy planners have favored the ‘floating’ PSAs rather than fixed ones, thinking that it is cheaper. To simplify, these floating PSAs are not necessarily more inexpensive as there are unknowns specifically fossil fuel global price spikes and falling value of the peso against the dollar. These unknowns are, sadly, inevitable.

As with our experience last year in the above example, a weaker peso resulted in higher power prices. So, we cannot say that floating PSAs are cheaper because, in the end, the poor consumers will shell out more money when the inevitable happens.

This is why we need the fixed priced contracts. Under fixed priced contracts, consumers will pay the same amount for a specified period, let us say, 25 years, for their electricity. Fixed price contracts eliminate the need for users to pay for the pass-on costs or to simplify, pay for higher power charges when the peso falls against the dollar or when prices of coal or oil in the international market increases. I’m sure our consumers would appreciate knowing how much they would be paying for their energy consumption on a monthly basis rather than be surprised when their electric bills come.

Let us see the economic sense in having fixed price contracts for the sake of the end consumers. Rather than just fret on how a weak peso could hurt us, let us make the adjustments needed to ease the burden for the Filipinos who will shoulder the cost of the falling peso when they for pay their electricity. Surely, Filipinos have other uses for their hard-earned money.

Let’s Not Forget Wind and Natural Gas

So much has been said about the potential of renewable energy especially on solar power in the news lately. But there’s another renewable energy source that could significantly help us reduce our greenhouse gas emissions: Wind Energy.

Similar to other renewable energy source, wind power does not emit greenhouse gas emissions, and of course, the resource is free.

But this form of energy has one advantage over other renewable sources: its low carbon foot print. According to energy specialist James Conca wind energy has the smallest carbon footprint (along with Nuclear), only emitting 15 grams per kilowatt hour (kWh). Its emissions are largely from the manufacturing, installation and the maintenance of the wind turbines.

Development in solar energy has overshadowed the good news about wind power. But we should also take note of the progress wind energy has made.

In 2016, a total of 54.6 gigawatts (GW) was installed globally, bringing the world’s total installed wind capacity at 487 GW according to the Global Wind Energy Council (GWEC). China alone has installed 23.3 GW of wind power last year, and now has the largest share of wind power in the world with 42.7%. US also added more wind energy last year after installing a total of 8.2 GW.

Analysts at the Bloomberg New Energy Finance notes that “wind is now one of the main workhorses in power markets around the world.” And the BNEF predicts that wind power’s growth will continue as some 59 GW will be commissioned this 2017, beating the additional installed capacity in 2016.

Apparently, wind power’s potential must not be ignored.

In the Philippines, the World Wide Fund notes that our grid can accommodate up to 500 MW of wind power without hurting the grid. Plus, there are new technologies, which could make the Philippines a leader at least in the South East Asia (SEA) for wind power.  While we have as much wind as our neighbor countries, the Philippines’ is friendlier to the generation sector, particularly on research and development compared to other SEA countries. Our restrictions on connecting to the grid are much less.

However, our government should be more supportive of the feed-in tariff for wind energy because, without it, development of wind power could be stunted. That’s a shame because developing this renewable source could help us shift faster to cleaner energy just like in the cases of other countries.

Last year, the wind power in the United King made waves as it generated more electricity than coal. This is a first in the country’s history.  Coal power generation in the UK declined from 22.6 percent of the country’s overall energy mix in 2015 to 9.2 percent in 2016 with the shutdown of three major coal power plants.

Just last February, Denmark was able to generate sufficient energy from the wind to supply the power needs of the entire country.  WindEurope reported that the country produced a total of 97 GW from wind, with onshore wind providing 70 GW and offshore wind at 27 GW. The volume generated was enough to supply to some 10 million average households in the European Union.

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Wind turbines off of Skovshoved, Denmark. Photo c/o http://www.euractiv.com/

As of 2015, wind energy combined with solar only accounted for less than 0.1 percent of the Philippines’ energy mix. There is obviously more room for wind power just like with other renewable sources if we want to meet the country’s goal of cutting our emissions by 70 percent by the year 2030.  And the best way to move forward in achieving our committed emissions is to shift our dependence on fossil fuels to liquefied natural gas or LNG for our ancillary needs.

Wind and solar energy are intermittent sources of energy. Thus, we need to beef up on our ancillary services to maintain the correct direction and flow of power as well as to address the imbalance on the supply and demand on the grid. Currently, we rely on traditional sources of energy for the security of our grid, which unfortunately, creates havoc in our environment and health.

On the other hand, natural gas is less harmful to the environment since its main component, methane, results in lesser carbon emission. Its carbon dioxide emissions are 30 percent less than oil and 45 percent lesser than other conventional fuels. Natural gas also produces less sulfur dioxide and nitrogen, which are precursors of acid rain and smog, respectively.

The benefits of depending on LNG rather than coal are undeniable. In fact, a study conducted by researchers at the University of Texas shows that natural gas and wind are the lowest-cost technology choice for power generation in the United States when cost, environmental effects and impact on public health are taken into consideration.

In the last two years, natural gas accounted for some 15 to 16% of our energy needs while coal dominated our power mix at 32 %. If we are committed to reducing our carbon emissions and saving our environment, then we should work harder in shifting away from coal and instead look at natural gas, solar and wind as viable options.

References:

https://about.bnef.com/blog/10-renewable-energy-predictions-2017/

http://www.cnbc.com/2017/02/13/china-and-us-lead-way-with-wind-power-installations-says-global-energy-report.html

https://cleantechnica.com/2017/02/24/denmark-generated-enough-wind-energy-power-power-needs-wednesday/

http://www.wwf.org.ph/stories/rp-grid-can-accommodate-500-mw-additional-wind

https://www.theguardian.com/business/2017/jan/06/uk-wind-power-coal-green-groups-carbon-taxes

https://news.utexas.edu/2016/12/08/natural-gas-and-wind-are-the-lowest-cost-for-much-of-us

 

Ignoring the Numbers

Just recently, United States President, Donald Trump signed an executive order, which mainly seeks to overturn his predecessor, Barrack Obama’s Clean Power Plan.

To recall, then President Obama announced the Clean Power Plan in August 2015 in response to the growing clamor to address climate change. The Plan’s primary objective is to reduce carbon pollution from power plants. The Environmental Protection Agency (EPA) subsequently issued the Carbon Pollution Standards, the first U.S. national standard on pollution.

Trump’s EO will trigger the review of the US Clean Power Plan and carbon standards for new coal plants. News reports, however, note, that it is unclear if the US will keep its commitment to made in COP 21 agreement to keep the world’s average temperature below two centigrade above pre-industrial levels.

Reports also quoted Trump as saying that his order is about “ending the theft of prosperity” as the signing of the EO will “start a new era of production and job creation,” particularly in the coal and mining sector.

Perhaps it’s not surprising that the new US President is ignoring the actions and calls of the global community to work double time to mitigate the effects of climate change. After all, he has promised to bring coal mining jobs back while dismissing climate change as “a hoax created by the Chinese” during his presidential bid.

More details are yet to be released on the full impact of this new executive order. But as early as now, environmental activists are already criticizing Trump for going backward on the progress already made by the US in fighting climate change. The U.S, once considered as the leading country in the world’s quest for a cleaner and greener world is now seemingly going backward.

I also join the many others who question Trump’s move in signing such an E.O. as Trump seemed to have ignored that cleaner forms of energy, do generate jobs. Many jobs in fact.

Weeks before Trump signed his controversial order, the US Department of Energy (DOE) released a report showing the contribution of the renewable energy (DOE) sector in jobs creation in the country.

The US, Energy and Employment Report revealed that solar power employs the most workers in the US Electric Power generation industry with wind energy is the third biggest. Solar alone provided work for 43 percent of the sector’s employees with 374,000 individuals from 2015 to 2016. In contrast, traditional fossil fuels all together just hired 22 percent of the workforce at 187, 117 for the same period. Coal’s job figures have been on the decline for the past decade the report stressed.

And renewables’ contribution to the additional employment in the power sector is not to be ignored either. The Energy Sector’s contribution to the overall job generation is significant as it accounts for some additional 300,000 jobs, which is 14 percent of the US job growth in 2016.

Plus, RE’s job growth is significant as it increased by 25 percent, creating a total of 73,000 new jobs last year.  Wind power employment alone grew by 32 percent.

The growth of the renewables has been significant in the past decade as more energy are generated from these sources the report stressed: “The electric generation mix in the United States is changing, driven by the transition of coal-fired power plants to natural gas and the increase in low-carbon sources of energy.”

The study pointed out that generation from coal sources has dropped by 53 percent from 2006 to September 2016 while solar power alone has increased by 5000 percent in the same period.

And with the stellar growth of cleaner energy, jobs are still created.

“These shifts in electric generation source are mirrored in the sector’s changing employment profile, as the share of natural gas, solar, and wind workers increases, while coal mining and other related employment is declining.”

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Solar alone provided work for 43 percent of the sector’s employees with 374,000 from 2015-2016.  Photo c/o http://www.zmescience.com

Trump stressed during the signing of the report that the main thrust of the EO was to protect American jobs. But apparently, the above numbers released by the U.S. DOE shows that adding cleaner forms of energy in the mix does not necessarily translate into the loss of jobs. Renewable power generation also requires manpower.

The US DOE study isn’t the only one that talks about job generation in the RE sector. Earlier studies have already established that increasing investments in renewables will generate employment.

Research by the University of California, Berkeley has shown 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.”

Similarly, the report of the University of Massachusetts, “The Economic Benefits of Investing in Clean Energy in the US” stressed that a total of $150 billion of investments in clean energy would produce some 2.5 new million jobs.

Inevitably, these numbers point to one thing: Clean energy generates jobs. Choosing cleaner forms of energy does not come at the expense of the workers. On the contrary, more employment opportunities are available as we grow the RE sector.

Industry experts are bewildered on how Trump will deliver his promise of bringing more jobs to the coal industry.  Jason Bordoff, founding director of the Center on Global Energy Policy at Columbia University, says that it is impossible to bring back coal jobs. “There isn’t a lot of investment activity because in some cases it looks more economically attractive for firms to invest in cleaner technologies.”

Additionally, the Institute for Energy Economics and Financial Analysis or IEEFA, in its 2017 U.S. Coal Outlook stressed that job losses would continue for coal industry as companies will continue to use fewer workers in the future: Promises to create more coal jobs will not be kept — indeed the industry will continue to cut payrolls.”

Plus, the IEEFA sees that natural gas will soon replace coal, which makes it almost impossible to for Trump to achieve his goal: “Trump’s false promise that he can bring back coal is really exposed as so much coal dust and mirrors by this executive order, since utilities will continue to use natural gas instead of coal.”

Sadly, the US President didn’t look at these numbers nor listened to industry experts.

References:

http://edition.cnn.com/2017/03/27/politics/trump-climate-change-executive-order/

http://www.independent.co.uk/news/world/americas/us-solar-power-employs-more-people-more-oil-coal-gas-combined-donald-trump-green-energy-fossil-fuels-a7541971.html

http://www.reuters.com/article/us-usa-trump-energy-idUSKBN16Z1L6

https://www.energy.gov/sites/prod/files/2017/01/f34/2017%20US%20Energy%20and%20Jobs%20Report_0.pdf

https://www.epa.gov/cleanpowerplan/fact-sheet-overview-clean-power-plan

http://www.independent.co.uk/news/world/americas/donald-trump-coal-mining-jobs-promise-experts-disagree-executive-order-a7656486.html

Green is Gold: How renewable energy can save us money and generate jobs”. Greenpeace

Note: UCLA Berkeley & University of Massachusetts studies are cited from the Greenpeace report.

 

 

The Key to Sustainable Energy: Energy Storage Solutions

One of the biggest criticism on renewable energy is its inability to act as a baseload plant. With the exception of geothermal energy, renewable energy sources such as wind and solar cannot provide power 24/7 and have variable outputs, thus making the task of balancing the supply and demand a tedious one.

This is why we need additional technology to store the energy sourced from renewables. Gladly, scientists discovered energy storage technologies for RE. They have been available for some time now, but with the rise of renewables, their importance is now being emphasized

There are different kinds of technologies for energy storage. The most mature and common energy storage is the pumped hydropower where two reservoirs with different elevation are used to store excess power. Water is pumped to the reservoir with a higher elevation when there is excess hydropower supply. Stored energy is drawn when needed by releasing the stored water into the reservoir with the lower height with the help of turbines.

In the Philippines, the Kalayaan Pump Storage is one such type of storage.  Originally designed for the Bataan Nuclear Power plant, the National Power Corporation in the 1990s expanded the capacity to 600 MW to precisely act as a pump storage. In its design, however, it was not contemplated to store renewable energy. This facility provides ancillary services to the system to regulate voltage and frequency.

There are also other storage technologies available, as well.

For example, thermal storage is used by solar plants where the heat from the sun is stored in molten salts, water or other liquid.  Another storage technology is the compressed air energy storage that compresses air and stored in underground caverns. The compressed air is then drawn from their storage and a combustion turbine is used to fire the air with the help of natural gas to produce power.

At Emerging Power Inc or EPI, we use the multi-hour flywheel battery storage. We are in partnership with California-based company, Amber Kinetics for our power storage needs in our solar power plant. The flywheels serve as the reservoir of significant volume of kinetic energy with the high-speed steel rotors. The fly-wheel batteries have been around for some time, but we chose Amber Kinetics’ technology since it can store and release power for hours unlike other similar technology that works only for some minutes. The pilot model is currently installed in the Subic solar farm.

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Flywheel technology by Amber Kinetics at the JSI Subic Solar farm

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Recently, the World Economic Forum named battery storage as one of the Top Ten Emerging Technologies of 2016, the advances in technologies that can help improve lives and industries significantly and help protect the environment.  This list includes technologies that have been available for some time but have reached a tipping point, or where the development in such technology is significant and advantageous to many.

Battery storage solutions after all, are on the rise, too. Zinc, aluminum and sodium batteries are being employed to service small areas. For example, Fluidic Energy, a start-up company that specializes in making batteries using air and zinc has already signed a deal with the Indonesian government to help power-up some 500 remote villages using solar power in the country. The firm will provide air batteries that can store as much as 250-megawatt hours of energy. Fluidic Energy, has earlier inked an agreement with the government of Madagascar to help 100 remote villages put up a mini-grid with the aid of their zinc-air batteries.

As we push for more use of RE, we also need to find a way to store harnessed power from renewables and its integration to grids more feasible. And fortunately, various organizations including governments are now heavily involved in research work to find more power storage solutions that will pave the way for a cheaper, greener and cleaner energy consumption.

References:

https://www.weforum.org/agenda/2016/06/next-generation-batteries

http://www.ucsusa.org/clean-energy/how-energy-storage-works#.WDKm9Pl9600

More Reasons to Shift: Health and Death Print

Recently, the Senate voted to concur the ratification of the Paris Climate deal after President Rody Duterte signed the ‘Instrument of Accession,’ signifying the Philippines’ commitment to Paris Agreement.

To recall, the Paris Agreement on Climate Change seeks to reduce carbon emission and was signed by 194 countries. Our country has pledged to cut 70% of its carbon emissions by 2030 with the help of the international community.

The Senate’s concurrence signifies that we are now legally bound to the agreement. This means it is time for us to double our efforts in reducing our carbon emissions.  One way of doing that is to add more renewable energy in our energy mix.

This shift has sound economic reasons, and more importantly, it has even more profound rationale: its impact on the health of our people.

Data from the Department of Energy reveals that we are still reliant on oil and coal for our energy needs. In 2014, we sourced our power from imported coal and oil by as much as 13.9% and 29.8%, respectively. The figures are even higher for 2015 as imported oil and coal accounted for 14.92% and oil was 32.79% of our energy mix.

Aside from the monetary consequences relying heavily on imported products, reliance on coal and oil for our energy needs has an impact on health of our countrymen, and therefore death rates. Coal, for one, has the largest carbon footprint among all energy types. One kilowatt-hour (kWh) of power produced from coal emits roughly 900 grams of carbon dioxide. And this has health consequences.

Data shows that shifting to renewable energy will pave the way for lesser carbon emissions. Just recently, a study revealed that in the United Kingdom, carbon emissions decreased by 5.8 percent in 2016 compared to previous year as the country’s use of coal dropped by 52% for the same period.

Aside from having a large carbon footprint, experts are now talking about another measure: “death print.”.  Both oil and coal have large death prints. According to James Conca, an energy expert, and geochemist, “death print is the number of people killed by one kind of energy or another per kilowatt hour (kWh) produced”.

Conca explains that coal, oil, and biomass are carbon particulates that result from burning and cause respiratory problems. Our internal organs, particularly the lungs, don’t respond well to these particulates.  Using them has the same result as inhaling cigarette smoke: black lungs.

Just how bad are the death prints of coal and oil?

Conca’s research shows that on global average, the mortality rate of coal –computed as death divided by trillion kWh of use–is 100, 000 when 50% of energy needs are sourced from coal.  It’s even worse in China, which sources 75% of electricity from coal as its mortality rate is 170,000.  The US sources 44% from coal, and its coal’s mortality rate is 10,000. Conca says that China has unfortunately ramped up the building of coal in the last decade with plants that usually do not have exhaust scrubbers thus the higher death print.

Oil has a large death print, too, as its mortality rate is 36,000 for every 8% energy it supplies.

On the other hand, solar rooftop and wind power, with each contributing roughly one percent to the global energy supply, has mortality rates of 440 and 150, respectively.

In the United States, Practice Greenhealth points out that a typical 200-bed hospital that uses coal-powered energy is responsible for $107,000 a year in direct healthcare costs associated with asthma attacks, chronic bronchitis, and other health problems. The organization is the leading membership and networking organization in the US for organizations in the healthcare community that have made a commitment to sustainable, and environmentally preferable practices.

Clearly, these numbers point that adding more renewable energy to the mix will both save the environment, as well as lives.

Again, as I have been saying in the past, I do not have problems with coal plants per se. In fact, I have built some of them during my days with the NAPOCOR. But I also believe in responding to the needs of our time. And studies suggest that the world needs more clean energy if we are to save the world for the succeeding generations.

References:

http://edition.cnn.com/2017/01/18/world/2016-hottest-year/

https://www.forbes.com/sites/jamesconca/2012/06/10/energys-deathprint-a-price-always-paid/#16e2ea1b709b\

https://qz.com/925294/carbon-emissions-in-the-uk-have-fallen-to-a-120-year-low/

http://www.rappler.com/nation/162865-duterte-signs-paris-agreement-climate-change

http://www.rappler.com/nation/162865-duterte-signs-paris-agreement-climate-change

https://practicegreenhealth.org/topics/leaner-energy

The Next King

Last year was another spectacular year for solar energy as a total of 73 gigawatts (GW) came online, breaking the record posted in 2015 of 56 GW installed capacity.

China and the United States contributed the most to the high growth of solar power last year as both almost doubled their installed solar power from 2015. China added 34.2 GW from 15 GW in 2015 and the U.S. with 13 GW from 7.3 GW. Other countries also added more power sourced from the sun such as India with 4.2 GW and UK, France and Germany with each adding at least one GW.

Naturally, more employment was generated from solar PV as it provided some 2.8 million full-time equivalent jobs. This figure accounts for one-third of the all the jobs for renewable energy (RE) sector worldwide. In the U.S., solar PV added around 73,000 jobs last year, twice the jobs generated by the coal industry in the country.

Aside from the growth in installed capacity, solar prices dropped significantly, too. The World Economic Forum notes that the price of solar power is currently lower than coal in some 30 countries. Indeed, there has been a continuous decrease in prices of solar power in the last few years as costs have dropped by 62% since 2009 according to the Bloomberg New Energy Finance (BNEF). And many predict that this trend is likely to continue.

Sohail Hasnie, Principal Energy Specialist for Central and West Asia Department of the Asian Development Bank, for one, foresees that global average price of coal would increase to $65- $100 per megawatt hour (MWh) for 2017 from its $60 per MWh. On the other hand, solar prices, he notes are now at $60-70 MWh, and likely to go lower in the next few months as solar energy in some countries were sold at low levels early this year.  Hasnie cites the case of India’s Madhya Pradesh state where solar power was sold was roughly $45 per MWh for 750 MW generated last February.  He believes that prices could drop below $25 per MWh this year in some auctions abroad.

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India’s 750 MW solar plant. Photo c/o http://www.hindustantimes.com

Battery storage costs are crucial to the expected price drop in solar PV, Hasnie stresses. He notes that lithium-ion battery prices dropped by 22% last year given the increase of manufacturers and awareness on the technology as the use of battery storage increased to roughly 750 MW globally. Hasnie anticipates that battery prices will likely drop by $75 per kilowatt (KWh) by 2020 from $350 per KWh in 2016.

Hasnie isn’t the only one to make such forecasts. The BNEF sees that solar energy is likely to be the lowest cost option in less than a decade.  The head of solar analysis for BNEF, Jenny Chase predicts that one MW ground-mounted solar system will be around 73 cents per watt by 2025, a 36% drop compared to its current price of $1.14. The BNEF also anticipates battery costs to decrease to roughly $200 per kWh by 2020.

Similarly, the International Energy Agency also predicts that solar generation cost will decrease by 25% in the next five years, and a drop by 65% by 2025 according to the International Renewable Energy Agency.

It looks like solar power would soon dethrone coal as the cheapest source of energy. And if these predictions come true, then we might see solar energy take over coal as the king of the energy mix.

Developing countries such as the Philippines should be sensitive to these developments.  Given our penchant on “quick fixes,” we might miss the boat (again) on this one. Our regulators should realize that the “least cost” in today’s environment takes on a different meaning. As I pointed out in my previous blogs, traditional power planning uses the least cost generation methodology where planners only look at stand-alone costs. The least cost generation method, however, does not compute for the risks involved.

For example, we never thought of Indonesia’s changing rules about exporting coal.  A few years back, Indonesia suddenly decided that it will not allow the export of certain grades of coal.  This led to a much higher cost for coal-fired power plant operators in the Philippines.  One company started to bleed because its ERC-approved formula did not take into consideration the fundamental change in the base prices.

To look at a price without considering risks behind the price can lead us to a completely wrong decision.

The global energy and political leaders should now realize that pushing for solar and other renewable energy sources is not just being good citizens of the planet, but also makes economic sense.

References:

https://www.bloomberg.com/news/articles/2017-01-03/for-cheapest-power-on-earth-look-skyward-as-coal-falls-to-solar

https://blogs.adb.org/blog/5-predictions-clean-energy-2017

State of Solar 2016: Globally and in Australia. Climate Council

https://www.climatecouncil.org.au/uploads/4127a8c364c1f9fa8ab096b04cd93f78.pdf

 

 

 

 

Double 100

The previous year closed with good news on the renewable energy development front.

For starters, the world’s billionaires have announced in December their $1 billion clean energy technology fund known as the Breakthrough Energy Ventures.

To recall, the world’s richest came together in 2015 to form the Breakthrough Coalition with the intention of helping the world find a solution to the worsening problem of climate change. Bill Gates, Jeff Bezos of Amazon, Facebook’s Mark Zuckerberg, and Alibaba’s Jack Ma are just some of the members of this organization.

A year after the formation of the coalition, these prominent businessmen put their money where their mouth are and pooled the one billion fund to finance research on clean energy. In an interview, Gates was quoted as saying “We need affordable and reliable energy that doesn’t emit greenhouse gas to power the future and to get it, we need a different model for investing in good ideas and moving them from the lab to the market.”

Aside from the venture fund, another good news greeted those who are hoping for a greener future. Before the year ended, internet giant firm, Google announced that its global operations, which includes data centers and offices would be 100% powered by renewable sources beginning 2017.

This is no easy feat given Google’s size. Having their offices which houses some 60,000 employees running on renewable energy is truly impressive.

Google, being the biggest corporation buyer of RE has done well in keeping its commitment to using clean energy as it announced in 2012. To date, it has a commitment to procure 2.6 gigawatts of wind and solar energy. For Google, choosing renewable sources to fuel their operation is a solid business strategy. According to its EU energy lead, Marc Oman. “We are convinced this is good for business, this is not about greenwashing. This is about locking in prices for us in the long term. Increasingly, renewable energy is the lowest cost option.”

Now there’s more reason to believe a cleaner environment, and achieving the goal of limiting global warming to 2 degrees are within reach. It is encouraging that prices of solar and wind are at the same price or even lower than coal energy in more than 30 countries as reported by the World Economic Forum.

Both energy types, in fact, are making headlines. Solar power in the US reached a record-breaking year with 9.5 gw of photovoltaic capacity added to the US grid in 2016. This makes it the top fuel source of the country for the entire year, a first in US history based on the estimates of US Energy Administration. The Solar Energy Industry Association noted that the US added 125 solar panels per minute last year, twice the pace in 2015.

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Dutch Trains running on 100% RE. Photo c/o Groenetrain

And even wind energy is making waves.  In Netherlands, all electric trains are now powered by wind energy as of January this year. According to the Dutch national railway company, NS some 600,000 passengers daily are being transported using wind energy. Ton Boon, the NS spokesman stressed that the increase in the number of wind farms in Netherlands allowed them to achieve their goal of powering all electric trains via wind energy one year ahead of the firm’s target date.

Locally, we have seen more companies employing renewables to power their operations. Major malls such as SM, Robinsons and Gaisano have installed solar rooftop systems to power up their operations. Just this January, Gaisano Capital has unveiled its 1.03 MW system that can supply 50 percent of its daytime operations of its mall in La Paz city in Iloilo, making it the largest solar rooftop system in Iloilo.

Similarly, the University of the Philippines recently announced that its partner has already completed the installation of three solar roof top with a combined capacity of 240 kWp in the Diliman campus.

No doubt 2016 was a good year for renewable energy development, and it seems that 2017 will likely even be better.

References:

https://qz.com/871907/2016-was-the-year-solar-panels-finally-became-cheaper-than-fossil-fuels-just-wait-for-2017/

http://www.reuters.com/article/us-bill-gates-fund-energy-idUSKBN1412QP

https://blog.google/topics/environment/100-percent-renewable-energy/

https://www.weforum.org/agenda/2016/12/google-green-renewable-energy-in-2017/

https://www.theguardian.com/world/2017/jan/10/dutch-trains-100-percent-wind-powered-ns

https://www.theguardian.com/environment/2016/dec/06/google-powered-100-renewable-energy-2017

http://www.rappler.com/move-ph/160377-iloilo-malls-switch-solar-energy

http://powerphilippines.com/2017/02/09/pnoc-renewables-completes-solar-rooftop-installations-diliman/