Think tank seeks EO to expedite renewable energy dev’t

An environmental think tank is urging President Duterte to issue an executive order (EO) that will lay down the framework to fasttrack the country’s renewable energy development and to reduce dependence on coal.

Energy and environmental think tank Center for Energy, Ecology, and Development (CEED) cited the need to issue an EO since current energy policies largely favor coal, which is contrary to Duterte’s pronouncement in his State of the Nation Address (SONA).

“We urge the President to formalize in an EO the marching orders he gave during his speech to provide clear policy directions to the DOE and the Department of Environment and Natural Resources (DENR),” CEED executive director Gerry Arances said.

During his SONA, Duterte said the government recognizes the urgent need to ensure the sustainability and availability of resources and the development of alternative sources of power.

“In this regard, I trust that Secretary Cusi shall fasttrack also the development of renewable energy sources, and reduce dependence on the traditional energy sources such as coal,” Duterte said.

At present, the country’s power mix is dominated by the share of coal at 51 percent. This is set to continue to grow given the 30 coal-fired power plants still in the pipeline, CEED said.

The Department of Energy (DOE) also projects that coal will only increase for at least two decades more, according to the latest Philippine Energy Plan.

In the point of view of the private sector, Manila Electric Co. (Meralco) president and chief executive officer Ray Espinosa said there would come a time generating companies will start shifting away from coal development.

“But the grid has to be ready for this type of power,” he said.

Meralco – through subsidiary Meralco PowerGen Corp. (MGen) – has several coal-fired power projects. However, it’s 1,200-megawatt (MW) coalfired power plant in Atimonan, Quezon was stalled after the Supreme Court struck down its power supply agreement.

But last month, Meralco announced plans to build 1,000 MW of renewable energy projects in the next seven years in its bid for cleaner and more cost-competitive power supply in its franchise area.

Through subsidiary Meralco PowerGen Corp. Meralco formed MGen Renewable Energy Inc. to serve as the platform for the strategic push to develop renewable energy projects, primarily solar, wind and run-of-river hydro.