Renewable energy

Business mirror

TUESDAY, 12 APRIL 2011 20:32 REYNALDO C. LUGTU JR. / MIRROR IMAGE

Another round of oil-price increase! The Department of Energy (DOE) confirmed this on Sunday due to the continuing rise in global crude prices from $4 to $5 per barrel. If this pushes through, this would be the 12th time oil companies increase their price since the year started, as the unrest in the oil-producing countries of the Middle East continues to escalate.

This is the perennial dilemma of our country as an importer of fuels and oil for our energy needs. It means that when the price of oil increases, Filipinos have to bear the brunt of the upward spiral of fuel and power costs.

It is opportune time for the government and the private sector to focus on the development of renewable energy (RE). Using RE means that we use energy sources that are not clean and reliable, but sustainable, such that it addresses our country’s problem on energy security.  Since the signing of the Renewable Energy Act of 2008, we have seen massive developments and significant investments in RE. Apart from government support, according to the DOE, our country has a vast potential for RE development.

Wind energy

The Philippines is the largest wind-power producer in Southeast Asia at 33 megawatts (MW). Wind energy has a huge potential of producing 76,600 MW. This is attributed to the country’s location in the Asia-Pacific monsoon belt, with good-to-excellent wind-resource potential in over 10,000 square kilometers of windy land areas. Wind- turbine technology is already mature and there are advanced systems that are both cheaper and more efficient than previous design.

Geothermal energy

We are already the world’s second- largest producer of geothermal energy at 2,000 MW. It provides 27 percent of the country’s total electricity production generated in power plants. The electricity produced by geothermal plants is cheaper than that produced by coal-fired plants. The country’s rich terrain boasts a geothermal potential of 4,000 MW. Geothermal power plants abound in Luzon, Negros, Mindanao and Leyte.

Hydropower

Given that the country is surrounded by water, the potential for hydropower is 10,000 MW. There is already an installation of hydropower with a generation capacity of over 3,300 MW. It is projected that more than 10 percent of electricity requirements of the country will be supplied by hydropower generation.

Ocean energy

Due to the archipelagic nature of the Philippines, its ocean-resource area consists of 1,000 square kilometers. This presents a vast ocean energy that has a potential of 170,000 MW. Already commercially available in other countries, tapping the ocean as an energy resource involves technologies that use the power of temperature difference, tides and waves to create energy. Initial ocean-energy potential sites identified include the Hinatuan Passage, Northeastern Samar, Camarines, Surigao, Catanduanes, Batan Island, Tacloban, San Bernardino Strait, Babuyan Island, Siargao Island, Ilocos Norte and Davao Oriental.

Solar energy

The country has an annual potential average of 5.1 kilowatt-hour (kWh)/m2/day. With this rich resource, solar-power producers are expected to generate a combined 125 MW this year, 130 MW in 2012, and another 95 MW by 2013. This will be complemented by downstream industries, such as solar panels and wafers, a major component of solar-power producers, manufactured in the country by the US-based SunPower and Solaria.

Biomass

Biomass-energy production in the country varies from the use of bagasse as boiler fuel for cogeneration, to fuel wood and agricultural waste for kiln, furnace, and oven use for cooking and heating purposes. Biomass has a potential of producing 500 MW, with bagasse alone having a potential of contributing 230 MW. Resource for biomass is aplenty, with the Philippines being the second-largest coconut-oil producing in the world and 10th in sugar-cane production.

It is laudable that the government and the private sector are working together to develop RE and realize its potential.  A study led by the United Nations Development Programme (UNDP) and the DOE shows that the country will derive a net benefit of P48 billion through the development of 2,500 MW of RE projects, which can, in turn, be used to build infrastructure, roads, schools and provide social services. Apart from this, RE is environment-friendly and sustainable; hence, helping reduce greenhouse gases from conventional coal-fired power plants.

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Reynaldo C. Lugtu Jr. teaches management and marketing courses in the MBA Program of De La Salle University. He may be e-mailed at rlugtu2002@yahoo.com, or visit his blog at http://rlugtu.blogspot.com.

Disclaimer

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of the DLSU College of Business and De La Salle University, its faculty and its administrators.