PNoy presses for more investments in RE beyond 2015

President Benigno Aquino III on Monday urged more investor to go green in power investments, not just to avert the projected power crisis in summer 2015, but to prevent any future crisis in the energy sector.

 

The Luzon grid is facing the challenge of a possible power crisis in summer 2015, Aquino noted in his inaugural speech for the launch of SM City North EDSA's Solar Rooftop in Quezon City. 

 

"If we do not adjust accordingly, Luzon might experience shortage of a minimum of 300 (megawatts) to a max of 1,000 MW," he said.

 

"This is not a challenge that the national government can overcome alone. That's why we are working with all sectors in this issue," he added.

 

The President, however, noted the national government is doing all it can to overcome the hurdle.

 

Aquino's remarks came after the both the Senate and House of Representatives approved a joint resolution authorizing the national government to contract additional generating capacity to prevent the looming shortage.

 

The House Energy committee on Nov. 18 approved House Joint Resolution 21 authorizing the executive branch to establish additional generating capacity for the Luzon grid through the Interruptible Load Program (ILP) with a maximum projected supply shortfall of 1,004 MW for certain weeks during the summer months of 2015.

 

Under the joint resolution, 600 megawatts (MW) is needed to meet the immediate reserve and 404 MW to cover the contingency reserve. 

 

Both resolutions are now up for plenary debates.

 

"We are hopeful that both House and Senate will approve the JR we requested sooner than later in order to give national government to contract the necessary reserves," Aquino said.

 

On Sunday, Presidential Communications Secretary Herminio Coloma Jr. said Malacañang expects lawmakers to expedite the approval of the measure giving the President emergency powers to avert a looming shortage during the summer months next year.

 

Moving forward, the President said the goal is to have a right balance between renewable energy (RE) and traditional sources for a diversified energy supply.

 

"We encourage all investors to study their options carefully and act before the cap of RE has been met..." he said.

'Long-term investment'

 

"The use of renewable energy sources represents a long-term investment. It plays to our country’s strengths, provides insulation from fluctuations in the international oil market, and thus allow us to be more self-sufficient, generate savings in terms of electricity costs, and also contribute to the preservation of the environment and mitigate the effects of climate change," he added.

 

On Monday, SM Prime Holdings Inc. and partner Solar Philippines switched on a 1.5-MW solar-powered rooftop with key government officials, led by President Aquino, gracing the launch.

 

"The President is here also. Kasi ang main reason, best advertiser is the President. So it is to advertise to all if you can put solar on your rooftop, do it now. It's not for 2015, it's for long-term benefit," Department of Energy (DOE) Secretary Carlos Jericho Petilla told reporters after the inauguration.

 

From 2014 to 2018, government projects an additional 5,098 MW to go online from traditional sources.

 

Aquino said the government is pushing investors into RE, which is challenged by the low capacity of RE power plants and the cost of putting up these kind of projects.

 

"By providing incentives such as tax holidays and duty-free importations on materials and equipment, government seeks to incentivize investments into renewable energy," the President noted.

 

Last May, the President turned on the first 22-MW, $45-million San Carlos Solar Energy Inc. (SACASOL) solar power plant.

 

The DOE has also undertaken steps to promote use of RE through Solar PV Project for Private Academic Institutions (PAI), linking private schools to suppliers and installers of solar panels.

 

Last November 19, Manuel L. Quezon University unveiled its newly-installed 96-kilowatt peak solar panel system, making it the first solar-powered university in Manila.

 

What's next for the DOE project is St. Scholastica's College, Petilla noted.

 

"Indeed: whether initiated by government or by businesses like SM, these kinds of projects drive home the point that renewable energy can be a competitive choice for power," Aquino said. – VS, GMA News