Tuesday, July 12, 2011

Controversy mars proposed RE projects

business mirror

TUESDAY, 12 JULY 2011 20:10 BUTCH FERNANDEZ AND MAX DE LEON / REPORTERS


SEN. Edgardo J. Angara urged the Energy Regulatory Commission on Tuesday to expeditiously approve the feed-in-tariff (FIT) rates submitted by the National Renewable Energy Board after investors expressed disappointment over delays in the implementation of Republic Act 9513, or the Renewable Energy Act of 2008.
Angara, author of the said bill, made the call after Jessie O. Ang, country representative of the International Finance Corp., told media they will not fund any renewable-energy (RE) project without subsidy in place.
But the Department of Trade and Industry said it is not so keen on pushing for new RE projects as these will only result to more expensive power rates in the country.
“It is not worth pursuing the projects if these will drive up the power cost,” Trade Secretary Gregory L. Domingo said.
He noted that as it is now, the cost of power in the country is already very high, and this will be compounded if the subsidy being sought by RE proponents in the form of FIT is factored in.
Angara, chairman of the Congressional Commission on Science, Technology and Engineering, said establishing FIT rates will provide a much needed boost to the Philippines’ RE industry.
“By guaranteeing payments to potential RE developers for every kilowatt-hour they produce, FIT rates can help usher in a ‘green’ future, and lessen our dependence on fossil fuels,” he stressed.
With this, the Federation of Philippine Industries has invited Energy Secretary Rene Almendras and Sen. Sergio Osmena III, Joint Congressional power commission chairman, to a forum on Wednesday morning at the Club Filipino.

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