Scottish experts on renewable energy (RE) said governments play a key role in pushing private sector investments in the green energy by establishing test centers for the applicable technologies and giving firms incentives to start up business.
Like the Philippines, Scotland is blessed with rich natural energy resources ideal for RE on the account of its geographical location.
Paul O’Brien, international business executive for RE of the Scottish Development International said Scotland has done three things to reach its goal of 100-percent RE consumption by 2020.
These include building test centers where private green energy players can try their technologies. He said the Scottish government also allocated £50 million as capital grants to help private firms start research and development on green energy.
The third component is the feed-in tariffs (FIT) scheme that guaranteed prices by the off taker for generated renewable power under a long-term contract.
O’Brien said Scotland began gearing up for a 100 per cent use of RE target since 2007, noting that the gas resources from the North Sea has been depleting in the last 30 years to 40 years.
He explained that tapping green energy sources such as wind, hydro, wave and tidal as well as heat extraction from the sea is also a political decision to ensure the energy security of Scotland and UK and will not rely on the oil imports from Russia and the Middle East.
“Scotland is aiming 100 percent use of RE so we can control [the costs of the UK power resources] and we will be less exposed to the volatile oil market,” O’Brien said in an interview at the Scottish Devevelopment International office.
He said Scotland have adopted a “carrot and stick” policy framework to encourage utility companies Scottish Power and SSE Renewables to increase investments in the green energy production and dramatically reduce dependence on fossil fuels.
Under this framework, utility companies will be penalized with fines if they fail to increase RE investments. At the same time, the FIT, as the “carrot,” has encouraged investments in the green energy.
The scheme seeks to help Scotland reach its 100-percent RE target by 100 percent as it started to decommission its two nuclear power plants that have been sources of energy for many years.
Scotland will also begin to decommission its three coal-fired power plants and one major gas power station as it gears towards relying on 100 percent RE by 2020.
O’Brien said there are 10 more nuclear power plants across United Kingdom that the government will soon decommission to pave the way for more green energy source.
He said Scottish energy utility companies have to increase investments in renewable energy to make up for the possible huge losses on energy produced by these nuclear power plants and other traditional sources of electricity.
One nuclear power plant produces 500 to 1,500 megawatts and the life use of these power plants will end between 2020-2030,thus the need for Scotland to increase its production of green energy sources.
He said Scotland will conduct a review in December 2012 to determine whether its 31-percent target set for 2011 was reached
O’Brien said the Philippines’s vast natural resources are also ideal for renewable energy. “The Philippines can produce renewable energy in the periphery [of the islands] and deliver that to the center of the demands.”
He said the role of the national government is crucial to encourage power utility firms to engage in renewable energy but in the case of the Philippines, local communities should also strengthen campaigns to increase investments in green energy.
The Philippines is one of the countries in Asia with rich potential for green energy along with China, India, Thailand and Indonesia.
The Department of Energy in the Philippines estimates that there is over a 150 gigawatt of renewable energy potential available in the country that can be source from a blend of wind, geothermal, hydro, biomass and solar energy resources.
