Osmena says solar power subsidies an ‘unnecessary’ burden

By Jonathan de Santos
Saturday, June 11, 2011

A PLAN BY the National Renewable Energy Board (NREB) to prioritize solar energy will burden consumers by around P1.7 billion a year, the Senate chairman of the Joint Congressional Power Commission warned Friday.
Senator Sergio Osmena III said the NREB’s allocation of 100MW of the country’s renewable energy mix is too expensive and should be deferred until the cost of solar panels goes down. Osmena said the cost of solar panels is expected to be halved in the next five years.
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“That would be the proper time to consider using solar energy, a P9/kWh rate for 20 years would certainly be more tolerable,” he said.
The senator said the current feed-in tariff (FIT) for solar energy, at P17.95 kWh, is too expensive considering there are cheaper alternative sources of energy.
The FIT is an extra charge that consumers will have to pay to encourage power producers to invest in renewable energy. This will cost consumers around P1.7 billion a year for the first three years. The subsidy will be lower, at P1.4 billion, in the last 17 years of FITs, the senator said.
For mini-hydro power, the FIT, is P6.15/kWh. Biomass energy, meanwhile, will have an FIT of P7.00/kWh while wind power will have an FIT of P7.00/kWh.
“The NREB proposal for on-grid solar energy is like buying a Mercedes Benz when there are still Hyundais, Nissans, and Toyotas available at less than half the price,” Osmeña explained.
Only energy from the ocean is as expensive, but Osmena said the NREB only allocated 10MW for it since it is an experimental technology.
“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?” the senator also said.
He said solar power will be good for off-grid users and that he supported the construction of a 20MW solar plant in Mindanao but that the rest of the allocation should instead be given to biomass and mini-hydro power.
He explained that biomass power, from waste or from ethanol, can provide farmers with extra income while mini-hydro power plants can also be used for irrigation.
“The DOE 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 added.
But according to Tetchie Capellan, president of the Philippine Solar Power Alliance, the feed-in tariffs will actually only cost consumers an extra P0.12/kWH.
She said paying the small extra charge is like paying monthly payments on a house, except that with just an extra P0.12/kWH, consumers get a power plant.
Capellan added the FIT will be subject to review on the third year, and will already be six percent lower after the first year.
She added the Renewable Energy law requires support for developing technologies from solar but does not specify which technologies will
be given priority.
She said waiting until solar panels are cheaper will mean the Philippine solar power industry will not be able to grow.
“If you wait until it’s cheaper, then we’ll just be importers. There will be no reason for us to make our own solar panels,” she said. (Jonathan de Santos/Sunnex)

Source: http://www.sunstar.com.ph/manila/local-news/2011/06/11/osmena-says-solar-power-subsidies-unnecessary-burden-160529

Residents or Manila travel out of town to head north to Pampanga to relax, unwind and spend a few nights in the new hotel rooms situated right on the lake of Clearwater Resort in Clark Airbase. Many visitors and tourists enjoy the feeling of waking up by the lake. The sunrise produces a spectacular sight with the sunlight reflection on the calm surface of the three-hectare fresh water lake of this famous resort in Clark.

The safest getaway destination vacation spot near Manila convenient safe and accessible is Clearwater Beach Resort in Clark Pampanga, great for family bonding, hang out to unwind and relax near lake and trees, camping too.

When in Clark, make plans to relax and enjoy an evening at The London Pub located in Mimosa Leisure Estate of Clark Freeport Zone. This is where all the local executives, local and foreign tourists gather after a full day of fun or work.

http://www.LondonPubClark.com

This web site contains articles and information that will be helpful to visitors, residents and tourists traveling out of town from Manila on a short getaway to Subic, Angeles City, Pampanga and Clark Philippines. There are several web sites that contain information that might also be pertinent to what is happening in North Luzon.

For assistance with organizing and planning weddings and garden receptions, log on to http://www.PhilippinesWeddingVenue.com

For assistance with lodgings, accommodations, hotels and resorts near Manila in Subic, Pampanga, Angels City and Clark Philippines log on to http://www.HotelClarkPhilippines.com

While in Clark, one might as well add to the itinerary a visit to the famous Clark Wine Center, the largest wine shop in Philippines which offers over 2000 selections of fine vintage wine from all wine regions, vintages spanning over 50 years covering all price ranges.
http://www.ClarkWineCenter.com

Residents of Manila and Angeles City Pampanga are looking for a safe and convenient place to celebrate special occasions or take a shot vacation in the Philippines. Many travel north to Clark to swim at Clearwater Beach Resort which also has lake and picnic grounds to unwind and relax, a very good way to spend quality time with the family and children. Fine dining Yats Restaurant offers sumptuous cozy Christmas dinner, for wine lovers, Clark Wine Center provides exciting shopping options.

Clark Philippines also known as Clark Freeport Zone is now the preferred destination for foreign and local investments because it offers many attractive advantages including tax, safety and its own international airport

The advantages for making the move from a country like UK, USA, Japan, Korea, Hong Kong, Singapore and Australia for example, to a country like Philippines are enormous. Heavily in your favor are factors like asset values differentials and substantial reduction in cost of living. Selling off your home probably gives you enough capital to not only live comfortably in a bigger property in Philippines but also to re-establish yourself in the business community by starting a business here too.

This web site contains articles and information that will be helpful to visitors, residents and tourists traveling out of town from Manila on a short getaway to Subic, Angeles City, Pampanga and Clark Philippines. There are several web sites that contain information that might also be pertinent to what is happening in North Luzon.

For assistance with organizing and planning weddings and garden receptions, log on to http://www.PhilippinesWeddingVenue.com

For assistance with lodgings, accommodations, hotels and resorts near Manila in Subic, Pampanga, Angels City and Clark Philippines log on to http://www.HotelClarkPhilippines.com

While in Clark, one might as well add to the itinerary a visit to the famous Clark Wine Center, the largest wine shop in Philippines which offers over 2000 selections of fine vintage wine from all wine regions, vintages spanning over 50 years covering all price ranges.

http://www.ClarkWineCenter.com