Petilla pushes renewable energy

Manila Standard Today
By Alena Mae S. Flores | Sep. 05, 2014 at 11:01pm

The Energy Department is pushing for the increased use of renewable energy amid geopolitical concerns and the armed conflict in Iraq.

Energy Secretary Carlos Jericho Petilla said these geopolitical tensions should serve as a reminder that the Philippines, which imports 90 percent of its fuel requirements, was highly susceptible to fluctuating global prices.

Petilla said he favored the right mix of renewable energy with traditional sources, such as coal and diesel.

“At present, the Philippines is harnessing 30 percent of renewable in our energy mix. If we keep it at that level, we will have a secure energy source, even if oil prices go up or if there is a shortage in supply in the international market,” Petilla said.

“Because RE is indigenous which means it is locally available, we can depend on it for energy security even if there are political issues such as war in other countries,” Petilla added.

He said the benefits of renewable energy should outweigh the cost implications associated with it.

The energy chief said detractors were quick to point out the expensive infrastructure needed to harness renewable energy sources.

“Equipment only entails one-time cost, not repeated costs. Also, private citizens can actually benefit more for own-use of RE such as solar, wind and biomass in self-generation of electricity for their own use,” he said.

“As a simple example, the cost of electricity from a coal plant can run up to P5.50 per kilowatt- hour, plus P6.50 for distribution and transmission, which amounts to P12. If you install solar panels on your rooftop, you will only spend P9 per kilowatt-hour for generation and no cost for distribution or transmission. This already saves you up to P3 per kilowatt-hour,” Petilla said.

The government has already approved net-metering as the first non-fiscal incentive mechanism of the Renewable Energy Act that took effect in July 2013.

Under net-metering rules, qualified residential and commercial consumers are allowed to install an on-site RE facility—such as solar panels installed on roofs—not exceeding 100 kilowatts in capacity to generate electricity.

Any electricity generated that is not consumed by the RE user will automatically be exported to the distribution utility’s system. The utility then gives a peso credit for the excess electricity received, equivalent to its blended generation cost, and deducts the credits earned to the customer’s electric bill. This translates into a lower monthly bill. source