Virus pandemic sees need for RE pivot
By Jordeene B. Lagare – July 4, 2020
from The Manila Times
THE coronavirus disease 2019 (Covid-19) pandemic that struck the Philippines early this year has highlighted the need to pivot to renewables, the Energy Development Corp. (EDC) said on Thursday.
“Covid-19 makes us realize that the world can turn on us at any time. While it is a health crisis that we are addressing right now, we should not forget to intensify efforts in averting an impending environmental crisis. We need to do this now for the benefit of future generations,” Marvin Bailon, EDC head of business development, trading and marketing, said in a statement.
“Prioritizing RE (renewable energy) will not only help the country become more resilient to energy challenges, as it is indigenous, but will also help the economy attract more companies and investors who are making the pivot toward sustainable and ‘green’ practices in their business operations,” he added.
The Lopez-led company lauded the Department of Energy’s (DoE) recent pronouncements to beef up the development of geothermal energy in the country as part of its thrust toward promoting RE and attaining the targeted 35-percent mix in the country’s energy portfolio.
Energy Secretary Alfonso Cusi has directed his team to draft a formal directive that would contain initiatives and guidelines on how to promote geothermal energy development and increase its utilization, as the said resource is indigenous to the country.
The move, said Cusi, was also intended to reclaim the country’s global standing as one of the top producers of geothermal energy.
“This has been the position of EDC ever since and the driving force behind our faith in geothermal as the most reliable and clean baseload power that can provide energy 24/7, with little to no adverse impact on the environment at that,” Bailon said.
“We affirm the secretary’s strategy of utilizing readily available and abundant clean, renewable resources that our country has in addressing our energy situation,” he added.
Cusi reported on Thursday that renewables accounted for 33 percent of the Philippines’ total primary energy supply, which, according to him, is 10-percent ahead vis-a-vis the regional target set forth in the Asean Plan of Action on Energy Cooperation. Asean is the Association of Southeast Asian Nations.
“We need to maximize geothermal and hydro energy utilization, as they have proven their reliability as baseload power sources, crucial for our commercial and industrial needs,” he said during Energy and Sustainable Development Webinar, Responding to the Challenges of the Covid-19 Pandemic: Views from the Energy Sector held virtually.
The National Geothermal Association of the Philippines had cited that while numerous underdeveloped geothermal energy sources have been identified, the group stated the high risk and capital-intensive nature of exploring and developing these areas, along with the lack of a guaranteed rate under the feed-in-tariff system, make it more challenging for private developers to pursue them.
Hence, the group had proposed of a risk sharing between developers and the agency, especially during the “very costly” exploration stage, by coming up with a mechanism to tap the Malampaya Funds to provide financial support in the form of a loan with lower rates or a grant.
Another option was outright spending of the government for exploration drilling using the fund and then, after acquiring the necessary resource data, the DoE can bid out the concessions to the private sector.
