Thursday, May 5, 2011

Solar power developers urge government to hike target

By Donnabelle L. Gatdula (The Philippine Star) Updated May 05, 2011 12:00 AM 

MANILA, Philippines - Solar developers in the country have urged the government to increase the solar installation target of 100 megawatts (MW) over the next three years.
The Philippine Solar Power Alliance (PSPA) said “the industry is puzzled by the business-as-usual approach of the National Renewable Energy Board (NREB) and urges government to project 235-MW solar capacity amidst rising fuel cost and power crisis in Mindanao.”
Based on Department of Energy (DOE) records, 44 projects with an aggregate capacity of 420 MW applied for service contracts with the agency as of April this year.
PSPA chairman Ramon Abaya, who is also president of Cagayan Electric Power and Light Co. (Cepalco), said a large number of these projects will be located in the provinces of Davao, Zamboanga, Misamis and the city of Cagayan de Oro. Abaya reminded the government on the urgency of addressing the six-hour brownouts currently being experienced in Mindanao due to inadequate capacity of existing power plants.
“Undoubtedly, these projects can provide the much-needed relief in Mindanao because solar power plants can be deployed within six months,” he said.
“The supply gap in Mindanao is real and it needs to be resolved fast. Solar energy offers immediate relief in mitigating productivity losses, economic slowdown, and quality of life degradation brought by brownouts. Sadly, solar power is ignored and its promise not fully appreciated by policymakers,” he added.  
 “Coal plants will take three years to build. Industries, commercial establishments and households in Mindanao need not wait and suffer any longer when solar electricity can be available now.”
The NREB emphasizes the impact of solar electricity to consumers, and cautions developers on the high feed-in rate.
“Yet, as argued by PSPA, the NREB conveniently omits the increases borne by households and business due to an oil price hike,” Abaya said.
A comparative study conducted by PSPA on the generation cost in Mindanao clearly shows how renewable energy serves as buffer to rising bunker fuel prices.
 “If not for hydroelectric power, as well as solar, consumers would have paid an increase of as much as P1.84/kwh in 2004, P0.98 in 2009, and P0.57 in 2010 primarily due to rising prices of bunker fuel,” said PSPA president Tetchi Capellan.
By mixing fossil fuel with renewables, “the generation cost in Mindanao dropped... utility companies are able to reduce electricity prices as blending power allowed companies to charge less,” she added.

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