SPEED UP TRANSITION TO RENEWABLE ENERGY - ANGARA

Senator Edgardo J. Angara reiterated his call for the Aquino administration to hasten efforts to shift to the use of renewable energy (RE) sources like solar, wind, hydro, biofuels and biomass.

Angara, author of the RE Act of 2008, made the statement citing a recent publication from the International Energy Agency (IEA) showing RE technologies already supply roughly 20 percent of the world's energy needs and are fast becoming cost competitive.

The veteran lawmaker also noted calculations from Bloomberg New Energy Finance showing that RE has already surpassed fossil fuels in terms of new power-plant investments, drawing US$187 billion in 2010--around US$30 billion more than funds poured into conventional energy sources.

"The report from Bloomberg also predicts that by 2020, the annual value of renewable energy capacity installed will amount to US$395 billion in real terms," said Angara. "Pair this up with the findings from the IEA, and it is becoming clearer that the world's future energy needs will be fulfilled by renewables."

He continued, "We need to fast-track our own efforts in scaling up RE or else we will be left behind by this global transition."

Through the RE Act of 2008, the Department of Energy (DoE) opened up consultations with industry stakeholders on the formulation of renewable portfolio standards (RPS), which will ensure that RE sources will be blended into the country's energy mix.

The Energy Department has also made pronouncements that regulations for the creation of a Renewable Energy Market (REM) will be issued and promulgated by the first quarter of 2012.

"We welcome these developments and laud the DOE for taking clear steps toward solidifying RE in our country's future," Angara explained. "Yet, the government can still do more to spur investments and build homegrown capacities in RE, such as quickly passing the FIT rates."

Feed-in Tariffs or FIT rates are said to help develop an RE industry, as they represent guaranteed payments to RE developers for every kilowatt-hour they produce over a certain period of time.

Earlier this year, the National Renewable Energy Board (NREB) submitted a schedule of FIT rates for the approval of the Energy Regulatory Commission (ERC), which is still deliberating on the matter.

"Establishing a FIT system is just one among a list of things that needs to be done toward growing an RE industry in the country. But passing the FIT rates as soon as possible means we get to enhance our capabilities in RE early in the game, which is essential if we want to play a lead role in this growing industry," explained Angara.