Manila Standard Today
Trade Secretary Gregory Domingo is not in favor of granting subsidies to renewable energy projects, saying they will lead to higher power costs and make the country less competitive as a haven for investors.
“Studies showed that renewable energy projects are viable without subsidy. Wind power is viable at 5 centavos so why make it 20 centavos per kilowatt-hour,” said Domingo at the sidelines of the Singapore-Philippines Business Conference held Friday.
He made the statement amid concerns raised by the business sector that price subsidies on renewable energy projects would lead to higher power costs and further increase their operating costs, making investments in the country less attractive.
“We met with the different [business] chambers and that was a significant concern. They mentioned that it might lead to increase in pricing,” said Domingo. Businessmen had a chance to voice their concerns during the economic cluster meeting held Wednesday.
Domingo said he would refer the business sector’s concern to the Energy Regulatory Commission, which is reviewing the so-called feed-in tariffs for renewable energy projects.
Proponents of the renewable sector said feed-in tariffs should be at 20 centavos per kWh.
But Domingo said higher feed-in tariffs would be detrimental to consumers and business. Elaine Ramos Alanguilan
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