Developing more renewable energy (RE) projects in the country is key to bringing down the cost of electricity and ensuring power supply sufficiency for the Philippines.
Sen. Sherwin Gatchalian pointed this out as he urged the government to take advantage of RE to address the country’s energy needs.
Citing data from the Manila Electric Co. (Meralco), Gatchalian noted RE plants provide the cheapest generation cost when compared to coal-fired and gas-fired power plants.
Data showed that in the month of July, coal plants had the highest generation cost at an average P8.0978 per kilowatt hour (kWh) while gas-fired power plants had an average generation cost of P5.6636 per kWh and RE power plants had an average generation cost of only P4.7052 per kWh, he pointed out.
The same data also showed that RE plants only contributed 7.69 percent of the total power purchased by Meralco last month.
“The data clearly shows that the development of renewable energy would provide the most benefit for our consumers as it entails the lowest generation cost,” Gatchalian said.
The senator has also expressed hope that investors would take advantage of the Department of Energy’s (DOE) recent circular removes limitations on foreign ownership of RE projects.
The circular particularly allows foreign nationals and foreign-owned entities to explore, develop, and use RE resources such as solar, wind, biomass, ocean, and tidal energy.
Gatchalian earlier filed Senate Bill No. 157 or the Energy Transition Act, which provides for the creation of an Energy Transition Plan to achieve net zero emissions by 2050 and remove dependence on imported fuel. However, this bill would require diversification of the country’s current energy sources.
The senator also filed Senate Bill No. 485, An Act Enhancing The Implementation Of The Net-Metering Program, Amending For The Purpose Republic Act 9513, or The Renewable Act Of 2008.
The bill seeks to foster increased investments in the RE sector and remove the 100-kilowatt (kW) ceiling on generation facilities that can participate in the net metering program.
Gatchalian explained net metering is authorized under existing laws and allows participants with their own Ref acilities to feed power back into the grid and have their contribution to the common pool of power deducted from their consumption.