Press Release
April 13, 2011

AFTER ANOTHER OIL PRICE HIKE, PHL MUST
PURSUE RE MORE SERIOUSLY -- ANGARA

Senator Edgardo J. Angara said that the development of the Renewable Energy (RE) industry in the Philippines needs increased government and private support in order to take off and eventually end the era of oil dependency.

This week saw yet another oil price hike, the biggest in recent weeks. Pilipinas Shell, Chevron Philippines, Petron Corp., PTT, City Oil Philippines, and Total will raise their diesel price by P1.50 per liter, gasoline by P1.50, regular gas by P1.25, and kerosene by P1.40.

Angara, Chair of the Congressional Commission of Science, Technology and Engineering (COMSTE), noticed an increased presence in the media from both sides of the RE fence, stating that, "it is good that both sides are presenting their views so that the public can see the benefits of RE supplementing existing energy sources, and eventually becoming the mainstay energy source of the country."

Angara, author of the Renewable Energy Act of 2008, which encourages local entrepreneurs to go into the development of the country's vast renewable energy resources, noted news that the State of California has recently mandated that 33 percent of the state's energy must be sourced from RE by 2020.

He added that this legislation recognizes the benefits of using RE and at the same time the creation of new 'green' jobs from the industry. He said that COMSTE has been urging the government to make more aggressive moves in support of the RE industry as well as supporting local manufacturers of electric and hybrid vehicles.

"The cost of generating electricity from solar, hydro, biomass and wind will rival the generation price of power plants using fossil fuel in the next three years." says Peregrino Fernandez, President of Montalban Methane and Convenor of the Renewable Energy Developers Caucus (REDC).

COMSTE, a non-voting member of the National Renewable Energy Board (NREB), which is tasked with drafting recommendations for controversial Feed in Tariff (FIT) rates to the Energy Regulatory Commission (ERC), said that the FIT rates are important driving factors for the development of RE in the country.

Cagayan Electric Power and Light Company, Inc (CEPALCO) chair Ramon Abaya said that solar power plants are generated and distributed close to the consumers, thus avoiding the fixed transmission cost that the Department of Energy (DOE) is concerned about. According to Abaya, "people have the wrong impression that solar carries a transmission charge. On the contrary, said Abaya, solar energy skips the transmission cost as it is embedded at the utility level.

Angara said that the government should move swiftly and aggressively to support the move towards RE, like most of the developing world, in order to free the country from relying on imported oil and fossil fuels.

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