Sen. Sergio R. Osmeña III, chairman of the Senate energy committee and co-chairman of the Joint Congressional Power Commission (JCPC), expressed Monday concern over the proposal of the National Renewable Energy Board (NREB) to allocate 100 megawatts (MWs) to solar energy at P17.95 per kilowatt hour (KWH).
Osmeña pointed out that the Renewable Energy Act does not mandate the allocation of the 100mw to solar energy.
Osmeña warned that the NREB proposal would result in additional charges to the consumers over a period of 10 years.
“In the first three years alone, the additional costs subsidize solar energy would be around P1.7 billion a year. In the remaining 17 years, additional charges can be as high as P1.4 billion a year,’’ he said.
Osmeña pointed out that the tariff for mini-hydro would only be P6.15 kWh, P7 kWh for biomass, and P10.37 kWh for wind power.
Ocean energy would have a tariff of P17.95 kWh but only 10 mw is allocated because it is an experimental technology, he said.
“The NREB proposal for on-grid solar energy is like buying a Mercedes Benz when there are still Hyundai, Nissans and Toyotas available at less than half the price,’’ he said.
Moreover, energy experts indicate that the cost of solar panels could drop by 50 percent within five years, he said.
“That would be the proper time to consider using solar energy, a P9 kwh rate for 20 years would certainly be more tolerable,’’ he added.
In addition, if a large allocation were given to biomass plants, Filipino farmers would earn additional income from selling their rice husk, biogases, wood chips and other products as fuel.
While he supported the installation of a 20-mw solar plant in Mindanao, Osmeña proposed that the remaining 80 percent solar energy allocation be split between biomass energy which would augment the income of farmers and mini-hydro which could be harnessed for small irrigation projects.
Osmeña said solar energy could be most effective in off-grid areas, and as much as 200 MW could be awarded to it for these places.
“The DoE (Department of Energy) should exercise extreme caution in the implementation of the FIT system considering that it imposes additional costs on the consumers particularly in the early years. Solar energy, if introduced in haste, will unnecessarily burden the consumer,’’ Osmeña said.
“Spain and Germany have suddenly cut their solar programs, finding them horrendously expensive. If those rich nations cannot afford solar, how much more a country like the Philippines,’’ he said.
He said it is the JCPC’s responsibility to ensure that the Renewable Energy law would not bring about unnecessary sacrifices on the Filipino.
