PCCI wants gradual introduction of renewable energy

The Philippine Chamber of Commerce and Industry (PCCI) is strongly pushing for the
adoption of a gradual and calibrated approach in the introduction of renewable
energy (RE) to the country’s power mix.

PCCI has expressed support to an earlier decision of the Department of Energy
(DOE) and the National Renewable Energy Board (NREB) in setting the
installation capacity for renewable energy (RE)

facilities at 790 MW.

In an earlier position submitted to the DOE, PCCI had expressed serious
concerns on the impact of

the introduction of renewable energy on the country’s
already high power rates.

PCCI noted that the country’s power mix already includes 3,291 MW from
hydroelectric power plants,

1,953 MW from geothermal power plants and 64 MW
from other renewable energy sources, which
comprise 34.01 percent RE power mix
nationwide.
The
challenge is to determine how much more of RE plants the country needs or
should install to
meet the goal of power security or self sufficiency and
competitiveness, said PCCI.

PCCI president Francis Chua said: “The technology for solar, wind and
ocean power and even

biomass are still in early development stages; the energy
produced from these will be a multiple of
the current average grid rate of
P4.50 kilowatt per hour.”
“What
we need now are base load plants and with some sense of urgency,” Chua
stressed.

The installation target sets the percentage generation from eligible RE sources
that shall be

injected into the country’s power mix.

PCCI says the 790 MW total should be sufficient enough to determine the
viability of the proposed

FiT ALL rates and to allow RE investors to recoup
their investments while maturing their technologies
and expanding their
operations.
PCCI energy chairman Jose Alejandro explained that progressively defining the
optimal and legal
requirement of installed generating capacity from RE
technologies, particularly as they are still in the
development stages, also
ensures that end-users are protected from undue costs once the FiT ALL kicks
in.

The PCCI is endorsing the locational approach which provides for the
identification of specific

strategic locations where RE sources can best be
used and developed.
The
minimum aggregate capacity per location is then determined and the required
technology
development and reporting requirements.

“This approach allows for better monitoring of the contribution and
progress of each RE source, which

in turn forms the basis for the rates that
warrant their contribution and benefit to the system,” said Chua.

The PCCI stressed that the locational approach be done in close coordination
with the National

Grid Corp. of the Philippines (NGCP), the operator of the
country’s transmission system.
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