Thinking green in the Philippines

Business World Online

Posted on February 23, 2012 12:24:44 PM

Carl Calub, IDEA

NEWS about global warming and advocates of renewable energy seem to have become silent. Is the crusade against global warming dead? Has the need for renewable energy been satiated?

Amidst all the fuss about the impeachment of Chief Justice Renato Corona and the economic crisis in Europe, there seems to be a lack of news about the battle against global warming. This is a humbug, however, of having overcome the problems of fossil fuel usage. The threat of global warming is still very real, as is the peril of exorbitant oil prices.

Despite uncomfortably hot days in the Philippines, and no sign of a significant reduction in crude oil and petroleum world market prices to a more friendly level, power generation continues to rely heavily on fossil fuels. According to data provided by the Department of Energy (DoE), the average annual proportion of power generated by oil and coal for the first decade of the 21st century is 41.70%, and a sizable 44.88% of the power generated in 2010 was produced by oil and coal.

The government, however, has not failed to realize the important role renewable energy plays in sustainable development. In fact, several laws and programs have already been passed by both the national and local government to facilitate the country’s gradual shift to renewable-energy-dependence. 

A few examples are the Biofuels Act of 2006 (R.A. 9367) and the Renewable Energy Act of 2008 (R.A. 9513), which have long been signed into law; the Alliance for Mindanao Off-Grid Renewable Energy Program (AMORE), whose Phase 3 already started in 2009; and the Solar Home System Distribution Project by the Philippine National Oil Corporation (PNOC).

The undeniable advantages brought about by renewable energy may lead one to believe that nations will eventually shift to a green-energy-dependent infrastructure, i.e. a nation powered entirely, if not mostly, by renewable energy.

The question then remains: how long until the Republic of the Philippines becomes a green-energy-run nation?

While a considerable amount of power is generated through hydro and geothermal means, solar, wind, and biomass power generation is meager. Since there is only a limited number of locations for optimal hydro- and geothermal power generation, the development of the solar, wind, and biomass energy sectors will definitely play an indispensible role in sufficient and sustainable power generation.

But, apparently, renewable energy dependence is not yet a priority of the Philippine government. Upon a closer look at green-energy-pertinent legislation, these laws are designed to only mitigate the detrimental effects of fossil fuel usage, as is especially conveyed by R.A. 9367. 

Meanwhile, R.A. 9513 does not mandate the growth of the energy sector towards the green-way, but only provides incentives for those who would. In other words, power generation from renewable energy is presented only as an option. 

At present, policies and programs are still in place promoting the oil industry, such as the Oil Exploration and Development Act of 1972 (P.D. 87) and the Fourth Philippine Energy Contracting Round (PECR 4); oil explorations are still ongoing; and coal plants continue to expand. 

The Department of Energy even has plans of converting the Bataan Nuclear Power Plant into a coal-fired or natural-gas-fed power generating facility to meet energy demand. Prospects for nuclear energy remain bleak, especially with strong opposition from Greenpeace and like groups. 

All in all, there is nothing suggesting that the Philippines will start shying away from fossil fuels anytime soon.

While renewable energy is obviously not in the forefront of our government’s de facto energy development plan, there is apparently justifiable grounds for the expansion of fossil fuel power plants instead. In the last few years, the government has been grappling with power shortages and thinning reserves. 

To meet energy demands, the most economical solution has been to set up base load power plants that rely on fossil fuels, particularly in hydro-dependent Mindanao. 

Fossil fuel conversion to electrical power is already well-established in the Philippines; whereas, the introduction of green power facilities into the power grid would require additional costs, driving electricity costs up and further discouraging investors away from the energy sector -- all of which do not bode well for a developing country such as ours. 

Moreover, the responsibility of leading a complete shift to green energy does not lie primarily with countries like the Philippines that contribute relatively little to global greenhouse gas emissions, anyway.

In conclusion, there is good reason then for the retreat of green-energy-related news from the headlines: the lack of imminent relevance. 

When cheap renewable power generators become available, that will be the only time when maturity of the green energy sector actually becomes feasible. 

Until the next fossil-fuel-related economic crisis or the next environmental wake-up call, and until green energy facilities become affordable, renewable energy will probably continue to take a backseat in media and national interest.


The Institute for Development and Econometric Analysis (IDEA), Inc. is a non-stock, non-partisan institution dedicated to high-quality economic research, instruction, and communication. For questions and inquiries, please contact Remrick Patagan via ideainc.mail@gmail.com or telefax no. 920-6872.