Monsada: Harmonizing energy sources a challenge to successor
ZENAIDA Y. MONSADA, who marks her last day as Energy secretary today, will be turning over to the incoming administration the decision whether to approve a new solar energy installation target and its corresponding feedin-tariff (Fit) rate.
She will also hand over to Alfonso G. Cusi, the new secretary, the task of harmonizing government policy between coal power and renewable energy.
“I think he is aware that renewable energy is expensive compared with conventional sources,” Ms. Monsada told reporters. “There’s a price for quality and good health.”
She said the National Renewable Energy Board (NREB) had submitted, as required by industry rules, its recommendation calling for another 500 megawatts (MW) allocation for solar energy.
She added that Mr. Cusi had given his assurance that the decision would be his on the expanded solar targets, the Fit rate, the “when and how.”
But this early, Ms. Monsada said a new round of Fit could result in additional cost for consumers, who shoulder the payment to solar developers through a Fit allowance added in their monthly electric bill.
“It will result in an increase because the Fit rate is generally higher than the average market [prices],” she said, adding that the subsidized rate for solar and wind remain higher than the average generation cost.
She also said Mr. Cusi will have to make a stand on coal- fired power plants.
This comes after the Climate Change Commission said on June 16 that it had started reviewing the government’s energy policy. It said it had six months or until the end of the year to complete the review and craft a framework development plan on energy.
Aside from the commission, other agencies called to participate in the energy policy review are the Department of Environment and Natural Resources, the Department of Energy and the National Economic and Development Authority.
“The study hopefully would help in crafting a mechanism to push for more R. E. [ renewable energy],” Ms. Monsada said.
“But can you impose stricter standards on existing plants,” she added.
“Maybe the thrust is, if you need to stop issuing permits to new coal plants, when should you start doing that so by 2030 you have more R. E. installed capacity.”
The commission said the policy review was crucial in fulfilling the country’s commitments under the Paris climate accord in December 2015 to keep global temperature rise below 1.5 degrees Celsius and avoid the worst impacts of climate change.