Expensive energy remains a quandary

Coal, a carbon-rich fossil fuel, is one of the primary sources of electricity in the Philippines, also, it is one of the main drivers of greenhouse gases.

A presentation that was shown during a recent briefing by Ian Rivera, the national coordinator of the Philippine Movement for Climate Justice (PMCJ), indicated coal comprises 31 percent of the energy sources in the Philippines, which is 1.2 percentage points behind the leading energy source, oil.

Oil and coal, which are both considered fossil fuel, hold more than half, or at least 63 percent of the country’s energy source.

Indigenous natural gas production is at 429 million standard cubic feet daily.

Before June 2022, the oil grid supplies at least 20 percent of the country’s total energy source.

With most of the fuel for electricity generation coming from imports, the nation ranks highest in Southeast Asia for electricity prices.

Astronomic power prices

World Bank data showed the price of electricity in the Philippines was around 17 to 20 US centavos per kilowatt hour between the years 2014 to 2019.

That is higher than other Asian countries like Hong Kong, Vietnam, and China whose electricity prices are around 12 to 16 US centavos per kilowatt hour during the same period.

“The reason behind this is that our electrical prices are not subsidized, that’s why it’s expensive.”

The national coordinator of PMCJ also noted Albay Electric Cooperative Inc. has a price per kilowatt hour that is “insanely high” despite the intermittent electrical connections.

Total approach for RE shift

Different government agencies must do their part once the country starts to shift to renewable energy sources.

Ryan Jay Roset, the senior legal fellow of Legal Rights and Natural Resource Center, said that the shift will have to be supported by policies on energy transition, and its possible social impact.

This is to ensure that affected residents can still earn and benefit as the project takes place, he explained.

Rivera shared that once the shift started, the country will still need to import some of the materials that will be used to produce renewable energy.

However, he also noted that it will not be shouldered completely by the locals, as it will depend on the agreement between the local government unit and the contractor that will provide the energy-providing pieces of machinery needed.

“We should do a renewable energy roadmap so that the potential will be developed into a plan, to identify what renewable energy is needed in a specific area,” the PMCJ coordinator said.

Last July 2022, Senate Bill 157, an act aiming for a just energy transition in the country, was filed.

The bill includes the scope, and the procedure guide as the country moves from a fossil-based energy consumption to a clean energy source.

Among the renewable energy sources in the Philippines are solar energy, wind energy, hydropower, geothermal energy, and biofuels.