Press Release
March 25, 2011

GOV'T NEEDS TO SET COMPETITIVE FIT RATES
FOR RE DEVELOPERS - ANGARA

Senator Edgardo J. Angara reiterated his warning that the Philippines is failing to take advantage Renewable Energy (RE) with the lack of government support for the industry, adding that the Feed In Tariff (FIT) rates need to be set in order to promote the use of RE and for the country not to lag behind as neighboring countries make aggressive moves to integrate RE systems into the energy mix.

Angara, Chair of the Congressional Commission on Science Technology and Engineering (COMSTE), said that RE systems like biomass have the capability to create a new green industry, which will not only benefit the country by ending foreign oil dependence but by also creating new jobs.

Angara noted that some opponents of RE are calling for a move to increase energy efficiency instead of risking the deployment of RE systems, but he said that the smart move would be to develop energy efficiency and RE at the same time.

He added that Biomass has one of the lowest proposed FIT rates and consumer financial burden impact in the list of RE technologies submitted to the National Renewable Energy Board (NREB) at 8.22 per kilowatt hour (p/kwh) and yet, Biomass has a low installation target compared to the other RE technologies at 171 MW from 2011 to 2013.

Proponents for biomass also report that the potential sustainability for local communities are the use of a fuel source, including an abundance of field trash and agricultural waste, which will be produced and procured from host communities around the given biomass power plants.

Angara noted that biomass is sometimes overlooked as an alternative fuel source, and calls for a more detailed look into the swift development of this green industry, taking into account the potential social benefits of biomass.

COMSTE, a long time proponent for RE, has stated that the country can achieve 65 % of energy from RE in 10 years, with the right leadership, strategic investments by local and foreign parties, and a major focus on technology transfer to our local electronics and engineering companies.

According to COMSTE achieving the 65% mix is not farfetched since already the RE portion country's energy mix is at about 40%.

COMSTE is a non-voting member of National Renewable Energy Board (NREB), which is tasked to come up with Feed In Tariffs (FIT) rates for RE. FIT rates will help stimulate the industry by offering guaranteed payments per kilowatt-hour to renewable energy developers for the electricity they produce.

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