June 16, 2016 (updated)
A coalition of businesses, banks,
environmentalists, and civic groups came together for a forum entitled “The
Truth About Solar: Now Cheaper Than Coal,” which culminated in the signing of a
Declaration of Independence from Fossil Fuel and Support for 100 percent RE
before 2030. The event aimed to raise awareness that solar is already cheaper
than fossil fuel and can supply a majority of the country’s energy, and
encouraged power companies and the government to reconsider the country’s path
towards coal in light of this new reality.
The forum was organized by Solar
Philippines and featured Danny Kennedy, the founder of Sungevity, one of
America’s leading solar companies, who discussed how solar now costs P2 to P3
per kilowatt-hour in other countries, resulting in stranded power assets and
bankrupting coal companies.
Kennedy noted how both solar and
battery costs have fallen at an extraordinary rate, and are now starting to
supply 100 percent of the needs of tropical countries like the Philippines. He
likened the rise of solar to the disruption of mobile phones to landlines, and
called on power companies to heed the lessons of the telco industry and switch
to solar for their own survival.
Solar Philippines President Leandro
Leviste discussed how solar costs in the Philippines have gone down 50 percent
the previous subsidy rate of P9.68. Leviste argued that solar plus batteries
can replace all gas, oil, and diesel in the country today, and save Filipinos
almost 100 billion pesos a year. He challenged the power industry to embrace
new technology, noting “the debate is over given solar is cheaper than coal,
and we’re building projects to prove it. The only problem is it takes time to
shed old perceptions, but we are confident power companies will see the light.”
“Remaking our power supply will be
capital-intensive, and can’t be done by one company alone. There is room for
all companies now planning coal to switch to solar, as well as new players to
join in, bringing competition and scale to the market, further bringing prices
down,” Leviste said.
Leviste explained that solar costs
have fallen due to economies of scale, vertical integration, advances in
technology, and increased market maturity. Solar Philippines recently announced
the country’s first local solar manufacturing plant, and plans to complete 500
MW of solar by 2017.
Statements were also given by
attendees, including Makabayan congressman Teddy Casino; Climate Change
Commissioner Noel Gaerlan; Batangas anti-coal campaigner Kristine Balmes; and
members of various environmental groups.
The participants praised
conglomerates taking steps towards renewables, including the Lopez Group, SM,
JG Summit, Aboitiz, Ayala, EEI, and Meralco, who now operate their own solar
projects and expressed interest to leave fossil fuels for renewable energy once
the costs become competitive. These companies were called to switch to solar
now that it is cheaper than coal.
In April, then Presidential
candidate and now President-elect Duterte campaigned for “the eventual phase
out of coal power plants and other plants that use harmful fuels and steer the
country for more investments in RE, [and] the timeframe of the phase out will
be determined by the speed RE sources can replace coal.”
Last week, NEDA Secretary Ernesto
Pernia stated, “We have to move away from coal and toward renewable energy,
which is expensive in the short run but should be cheaper in the
long run.”
The attendees vowed to support the
Duterte administration’s review of coal plants, and hasten the build up of
renewable energy, in light of the new reality that solar is now cheaper than
coal.
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