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THURSDAY, 02 JUNE 2011 20:37 BUTCH FERNANDEZ / REPORTER
CONSUMERS will have to pay P8 billion more a year, or an increase of P12 centavos per kilowatt-hour (kWh) in their monthly electric bills for an additional 800 megawatts (MW) that will be supplied by renewable-energy (RE) sources to be built in the next three years.But the Joint Congressional Power Commission, co-chaired by Sen. Serge Osmena, was assured in a hearing on Thursday that the Energy Regulatory Commission would first conduct public hearings and consultations with affected sectors before imposing upward adjustments in existing electricity rates.
Meanwhile, Vice President Jejomar C. Binay, speaking before the 1st Philippine Solar/Photovoltaic Summit held at the SMX Convention Center in Pasay, said the Department of Energy is in the process of finalizing a roadmap for developing the country’s RE sources.
The National Renewable Energy Program’s (NREP) roadmap, he said will “provide a clearer picture for the renewable-energy industry as they implement their various projects.”
Binay explained that the NREP was designed to lay down policy directions and “establish a more detailed framework for developing renewable energy.”
“This framework will also guide us in handling certain issues in the development of RE as it relates to transmission, pricing and other various elements pertinent to one’s electricity bill,” he added
Osmena also told reporters he was proposing a “technology neutral” bidding for the RE sources in order to further bring down the cost to consumers.
“Kalimutan natin kung anong klaseng technology kayo, mag-bid lang kayo. We will choose you on the basis of price. Ang pinakamababa diyan, iyung mini-hydro at saka iyung biomass. Ubusin muna natin kung anong available sa mini-hydro at saka sa biomass. Bakit tayo mag-a-allocate ng quota para sa solar energy na P17 per kWh , iyung mini-hydro P6 lang, iyung biomass P7. I will not allow the Filipino people to start paying P17 when you still have renewable energy at P6 or P7 level,” he said.
Osmena explained that the RE Law mentioned at least five technologies, including ocean, solar, wind, biomass and mini-hydro. “It said: We have 100 MW for solar, 100 MW for wind, etc., or a total 800 MW. So I said, wait a minute. Let us start first with mini-hydro and biomass, bilhin muna natin iyan sapagkat iyan ang pinakamura, P6 or P7, so that the Filipino consumer does not have to subsidize the P17 cost of solar.”
He added that costlier solar energy sources could be put up in the islands, or off-grid areas where power supply costs more. “Iyung diesel plant, that thing can cost as much as P15 per kWh. So, it’s okay there to pay for solar energy.”
Osmena said he was all the more pushing for the technology neutral bidding formula on learning that the targeted additional 800 MW from renewable-energy sources would cost at least P8 billion a year.
“I want to bring it down to P3 billion, that is why I am saying that it must be technology neutral because if that happens, then they will have to pick the lowest price [hydro and biomass]. So kung magbibigay sila, solar meron kayong 100 MW dito, eh alam ko P18 nga eh,” he added.
According to Osmena, the proposal submitted to the Commission is that the Filipino consumer will be subsidizing to the tune of P8 billion in three years’ time “because there will be a bidding… so the RE projects will be finished on the third year.”
He said the consumers would be billed the additional amount (12 centavos more per kWh) “whenever the RE supplied power is delivered, between now and three years. And if they add another 800 MW, that would mean another 12 centavos.”
“It will be in your bill, parang universal charge iyan. You will be paying 12 centavos more per kWh,” he said.
IN PHOTO -- Vice President Jejomar C. Binay, with Ernie Santiago, president of Semiconductor and Electronics Industries in the Philippines Inc., visit booths of various electronic solar products on display at the opening of the First Philippine Solar Photovoltaic summit at SMX Convention Center in Pasay City. --ROY DOMINGO
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