With limitless potential, solar power is expected to become the solution for Vietnam to ease reliance on fossil fuel. However, after four years of mass deployment, many problems have arisen, including environmental risks.
Vietnam has large multi-million dollar projects, including the 300 MW Tata Power in Ha Tinh, 100-200 MW Hanwha in Thua Thien-Hue, and GT & Accessories and 150 MW Mashalll & Street Ltd in Quang Nam province.
In the first half of 2018 alone, MOIT reported 272 solar power projects with total capacity of 17,500 MW, nine times higher than Hoa Binh and seven times that of Son La hydropower plants.
Experts have warned of technical and environmental problems when developing solar power plants.
Solar power is considered clean and friendly because it does not cause an impact on the climate. However, scientists warned that HF acid solution for surface cleaning of solar panels for better light reception is poisonous.
Solar power is considered clean and friendly because it does not cause an impact on the climate. However, scientists warned that HF acid solution for surface cleaning of solar panels for better light reception is poisonous.
The poison, when contacting people who do not wear protective equipment, can destroy tissues and reduce calcium in the bones.
The solution applied by many manufacturers is to replace HF Acid with NaOH. NaOH is a skin corrosion agent but is still easier to handle and waste than HF.
The input material for making solar panels is quartz (silica SiO2 silicon). Quartz is heat treated to refine pure silicon (this step emits CO2 and SO2). The silicon is then further refined with chemicals (hydrochloric acid HCl) to produce polycrystalline silicon blocks and highly toxic SiCl4 waste compounds.
It is more costly to collect silicon from SiCl4 than refining silicon from quartz, but it is not commonly used because the re-processing equipment is worth up to tens of millions of dollars.
Meanwhile, if it is released into the environment, it would cause soil and water source acidification.
Therefore, there must be strict regulations on the storage and treatment of SiCl4 waste.
The US National Renewable Energy Laboratory (NREL) has found methods to make polysilicon from ethanol instead of chlorine-containing chemicals, thus completely avoiding the creation of SiCl4.
Another problem that scientists have warned of is the slow development of infrastructure.
In the first half of 2019, the National Power System Coordination Center (A0) recorded the unprecedented number of 90 solar power plants becoming operational. Meanwhile, only 3 power plants successfully connected to the national grid in 2018.
The inconsistency between solar power development and supporting infrastructure has affected the solar power development plan as it has caused overloading to the national grid.
The Ministry of Economic and Finance on Tuesday announced it is looking at processes of turning waste into energy as a partial solution to the country’s alarming levels of waste production.
For in depth analysis of Cambodian Business, visit Capital Cambodia
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In a meeting Tuesday officials from the Ministry of Economy and Finance and the Ministry of Environment discussed solid waste management.
The officials agreed on several action plans, including drafting a strategy and a national policy to tackle waste management and doing more to enforce existing regulation.
The ministries also agreed to organise a campaign to raise public awareness on the issue, according to a statement issued after the meeting.
Exploring ways of turning trash into energy was one of the main discussion points, according to the statement.
“The country’s robust economic development coupled with a rapidly growing population means the amount of waste generated in urban centres, particularly Phnom Penh, is growing dramatically,” the ministry said.
Aun Pornmoniroth, the Minister of Economy and Finance, speaks at Digital Cambodia 2019. KT/Mai Vireak
Phnom Penh produces about 2,800 tonnes of garbage per day, with the amount of garbage generated every year growing at a rate of 10 to 13 percent, the ministry noted. “This figure is expected to continue growing unless effective measures are put in place.”
Prime Minister Hun Sen early this month encouraged citizens and private companies to use waste to generate electricity in a bid to protect the environment.
The premier suggested that companies be incentivised to turn waste into energy to avoid power shortages like the one Cambodia suffered earlier this year.
“But we will not import waste,” Mr Hun Sen said, noting that importing waste is illegal even if the aim is to turn it into energy.
The Ministry of Energy is organising “AMEM 2019” (ASEAN Ministers on Energy Meeting and Associated Meetings) on 2-6 September 2019 at The Athenee Hotel, A Luxury Collection Hotel, Bangkok.
The official opening ceremony will be held on 4 September by the Prime Minister. The event will involve discussions on effective energy management and energy stability for the ASEAN region under the concept of “Advancing Energy Transition Through Partnership and Innovation” in order to sustainably cultivate energy innovation, economy, and standard of living among ASEAN citizens.
Energy Minister Sontirat Sontijirawong revealed: “The meeting shows Thailand’s role on the international stage in driving energy stability and sustainable development with ASEAN countries. It will enhance Thailand’s image as an energy centre in ASEAN and help achieve national energy strategy, leading to investment and innovation development. This is in accordance with ASEAN Plan of Action on Energy Cooperation (APAEC) 2016-2025 Phase 1 (2016-2020), which includes important issues such as the multilateral electricity purchase between Thailand, Lao People’s Democratic Republic, and Malaysia, which will develop to other countries as well, and the mutual standardisation of ASEAN energy efficiency, including: lighting and air-conditioning system; energy reduction by 20 per cent by 2020; a shift to alternative energy by 23 per cent by 2020; ASEAN energy database improvement to global standard by 2020; clean coal technology promotion for good image, and; nuclear energy potential development in terms of technique control and safety.”
Participating in this meeting are ministers and high-ranking officials from 10 ASEAN countries, namely Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam, eight partner countries, namely China, Japan, Republic of Korea, Australia, India, New Zealand, the United States of America, and Russia, and six international energy organisations, namely IEA, IRENA, ASEC, ACE, HAPUA, and ASCOPE).
A senior official meeting to prepare ASEAN energy ministers will take place on 2-3 September 2019. The ASEAN energy ministers meeting will take place on 4-5 September 2019.
The ASEAN Energy Business Forum (AEBF) will take place on 2-5 September 2019 alongside the main meeting, featuring an exhibition on energy, technology and innovation by corporate and academic institutions, and a workshop on related topics. The Ministry of Energy has adopted the main theme of “Renewable Energy Innovation Week” and will host the ASEAN Energy Awards 2019.
Throughout 2-5 September 2019, bilateral discussions between ASEAN and partner countries will also be held in which the Ministry will facilitate negotiations between energy ministers and senior officials.
We stumbled across a rather interesting company profile shared by Panas Bumi News in Indonesia, that provides a good overview on PT PLN Gas & Geothermal (PLN GG). The company is relatively newly established and a subsidiary of national utility PT PLN (Persero).
Initially the company was only to focus on geothermal fields, and with the notarial deed of the establishment of Notary Lenny Janis Ishak SH Number 10 dated January 28, 2009 and Decree of the Minister of Law & Human Rights No. AHU-11269.AH.01.01.Tahun 2009 dated April 6, 2009, the company immediately moved developing several geothermal projects.
However, on July 10, 2017, the shareholders made the decision to add midstream gas business activities. Thus, the name of the company that was originally “PT PLN Geothermal” was changed to “PT PLN Gas & Geothermal” based on Notary Deed of Muhammad Hanafi SH number 73 dated 31 July 2017 & Decree of the Minister of Law & Human Rights Number AHU-0017016.AH.01.02. 2017. The addition of business activities and company name change are solely carried out to support the realization of the mission of PLN SOLID (Securing Business Defense, Optimizing Cost Efficiency, Leading Industry Capabilities, Increasing Profit Margin, Developing New Edge).
In the page plngg.com stated, PT PLN GG was established to guarantee the security of supply and cost efficiency for PLN. In the geothermal field, since its establishment, PLN GG has been developing the geothermal working area of Tulehu WKP, and the geothermal power plants at Lahendong PLTP, and Mataloko PLTP. And now, the company is working on eight Geothermal Working Areas (WKP) projects that the government has assigned to its parent company, PLN.
Director of PT PLN GG, Yudistian Yunis, said, to work on the 8 WKP, his party would cooperate with five companies that had been netted by PLN.
“The 8 WKPs are targeted to be operational in 2023 or 2024,” he told reporters some time ago.
On the other hand, PT PLN GG apparently immediately step on the gas. To streamline the implementation and development of its projects, the company collaborates with Universitas Padjadjaran (Unpad) in the fields of education, research, improvement of human resources, and community service.
Managing Director of PT. PLN GG, Mohamad Riza Affiandi, said that his party cooperated with Unpad in supporting the implementation of a number of strategic projects carried out by a subsidiary of PT. PLN (Persero). More than 50 strategic projects related to gas and geothermal that are being carried out by PT. PLN GG.
“In carrying out this project, we experienced obstacles related to the environment, environmental impact analysis, environmental feasibility, and other obstacles from the regulatory and social aspects. So far, Unpad is leading in Amdal studies. Unpad studies of various projects in PLN are held by Unpad, “he said during the signing of the MOU with Unpad in May 2019.
He added, PT. PLN GG plans to build a study with Unpad on environmental impact analysis.
President Director: Mohamad Riza Affiandi
Director: Yudistian Yunis
Comment: With that move PLN seems to have moved the development activities into a subsidiary, while negotiations on power purchase agreements (PPAs) continues to be directly dealt with at the mother company, with all the challenges this has been entailing.
Jakarta (ANTARA) – Transportation Minister Budi Karya Sumadi has stated that he will encourage the use of electric buses as a mode of public transport particularly in urban areas.
The operator of TransJakarta plans to utilize electric buses which are environmentally friendly, he said during a discussion in Jakarta on Friday. However, the operator did not elaborate on when and how he intended to do so, he added.
Besides buses, other public transportation modes such as taxis are also exploring the use of electric vehicles, he said without elaborating on which operator was likely to implement the electric car program.
Meanwhile, Chief of the Indonesian Motor Vehicle Producers Association (Gaikindo) Johannes Nangoi revealed a number of bottlenecks that prevented the development of electric cars in Indonesia.
“The development of pure electric cars other than hybrid cars still has many problems in Indonesia. Therefore, it will take more time to develop them,” he said.
One of the main obstacles is the distance that electric cars will have to travel within a certain period of time on one battery charge. It takes more time to travel from one city to another in Indonesia.
“If the car runs out of power it needs time to recharge the battery. The number of charging stations is very limited,” he said.
The availability of charging stations remains the main stumbling block in the development of electric cars capable of travelling from one city to another, he said.
Also, since the production cost of an electric car in Indonesia is still high, its selling price will also be high, he said.
Earlier, President Joko Widodo had said he wanted to build the electric car industry as a leap of progress along with the development of non-fossil fuels.
The electric car industry is one form of the leap of progress that the country must pursue from now on, he said.
The leap of progress starts from the use of a 20 percent biodiesel blend (B20) which will be raised to 30 percent biodiesel blend (B3), the President added.
Precautionary measures to deal with severe drought and its impacts may have become routine for Indonesia, but the practice has not yet been made perfect.
With climate change continuing to show its ill effects, Indonesia needs extra efforts to mitigate environmental disasters.
The wildfires that are now raging in Brazil’s Amazon at a record rate serve as a fresh warning, if not a lesson, for Indonesia, which along with Brazil possesses the largest rainforests in the world. The governments of the two countries have come under criticism for not doing enough to stop deforestation, which results from, among other factors, forest fires.
Forest and land fires remain unabated in Indonesia, especially now that the country is experiencing a long drought. This, however, is not to say that the dry season is to blame for the fire disaster because in many cases, it is humans who started the flames.
The Environment and Forestry Ministry announced recently that wildfires had burned 135,747 hectares of land between January and July. East Nusa Tenggara topped the list with 71,712 ha, followed by Riau, South Kalimantan and East Kalimantan, where the new capital will be located.
The Meteorology, Climatology and Geophysics Agency (BMKG) has predicted that the dry season will continue until October because of “a negative anomaly of the country’s sea surface temperature”. The agency has detected a weak El Niño weather phenomenon, but with more hotspots dotting Sumatra and Kalimantan’s forests this month, it seems the worst has yet to come.
Coordinating Political, Legal and Security Affairs Minister Wiranto said Wednesday the government was focusing on efforts to prevent forest and land fires. Anticipatory measures will include community education in areas near forests, considering a report from the National Disaster Mitigation Agency that found humans were responsible for 90 percent of forest fires.
However, only a few people or corporations have so far stood trial for causing forest fires, which may indicate a lack of commitment and capacity to punish forest burners.
During the prolonged dry season, fire disasters always come with a water crisis. Draining sources of water pose a threat not only to food security as a result of crop failure, but also industries that rely on electricity generated from hydropower plants. For ordinary people, the depleting supply of clean water will easily trigger a number of diseases.
A number of local governments have reported water scarcity. The BMKG has warned a water crisis is looming in Greater Jakarta and Banten, apart from increasing air pollution levels.
Many decades ago, Indonesia was described as fertile land, where rivers flowed and enlivened people lived. Water was abundant for everyone to consume. Development, however, has moved forward as an antithesis of nature conservation as seen in rampant environmental degradation.
The Earth is now seeking revenge. We run out of water when we need it the most to douse the fires.
A Singapore government official has criticized Tesla and its chief executive Elon Musk for offering a lifestyle choice rather than a solution to the challenges climate change presents, Bloomberg reports.
In an interview with the new agency, the city state’s minister for the environment and water resources, Masagos Zulkifli, said “What Elon Musk wants to produce is a lifestyle. We are not interested in a lifestyle. We are interested in proper solutions that will address climate problems.”
Singapore, which is particularly vulnerable to rising sea levels resulting from the melting of the ice caps, has prioritized its fight with climate change but it has bet mostly on promoting public transport over personal vehicles, including, apparently, EVs.
Yet EVs are not out of the question as a means of reducing the city state’s carbon footprint, according to Masagos. They would just be a difficult solution to implement as the vast majority of Singaporeans live in densely populated urban areas. This, according to the minister, poses a serious challenge for developing a charging network for EVs.
“Just choosing a parking spot is already problematic,” Masagos told Bloomberg. “And now you want to say who gets the charging point. We do not have the solution yet.”
Even so, Shell recently opened its first EV charging point at a fuel station in Singapore. Fuel stations are the obvious choice for charging points, at least initially. The supermajor plans to add another nine charging points at its fuel station locations across Singapore.
The lack of enthusiasm about Tesla in Singapore was duly noted by Elon Musk earlier this year. The company’s CEO said in January, in response to a tweet, that Singapore had been “unwelcoming” on the topic of electric vehicles.
Singapore has a strict vehicle policy due to its small size and emissions. Car ownership permits are a limited number and are won through a bidding process. This means they could end up costing tens of thousands of dollars. In this environment, mass transit is naturally the preferred alternative to personal vehicles.
Transitioning to a mix of distributed solar, wind and other renewable energy resources suits island nations, such as the Philippines, hand in glove. Doing so now not only makes sound economic and financial sense, it would yield deep, long-lasting social and environmental benefits that economic models just don’t account for, solar and renewable energy advocates and proponents say. A lot in the way of political and regulatory obstacles and barriers need to be overcome for genuine, consistent progress to be made, however.
At Philippine peso (PhP) 2.50–5.30 (USD0.05–0.10) per kilowatt-hour (kWh) excluding financing costs, rooftop solar can deliver lower-cost energy than conventional coal-fired power plants and unlock as much as PhP1.5 trillion (US$2.8 billion) in new investment by 2030, according to a 2019 study from the Institute for Energy Economics and Financial Analysis (IEEFA). Larger scale commercial-industrial and utility-scale solar power plants can produce electricity even more cheaply.
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Solar costs lower than coal, fossil-fuel generation without subsidies
Electricity costs in the Philippines are the highest among the Association of Southeast Asian Nations’ (ASEAN) 10 member countries at around 10 PhP/kWh (USD0.20/kWh). Much of that has to do with longstanding government fossil-fuel industry subsidies that transfer the fuel, currency and other socioeconomic and environmental risks and burdens of electricity generation, transmission and distribution from utilities and large independent power producers that have the ability to manage them to everyday Filipinos, many of whom live at marginal, subsistence levels, IEEFA highlights in a March 2019 research report.
Sharply falling costs and improving performance of digitally networked solar, wind power and battery energy storage pose challenges to the status quo, but they are making believers of even the largest Filipino utilities and corporations, as well as politicians. Manila Electric Company (Meralco) in March of this year received the country’s lowest wind electricity generation bid ever on a new 150-megawatt (MW) project in the Rizal province, for PhP3.50 (USD0.068)/kWh, for example.
Solar costs have been declining sharply, as well. Meralco has contracted to buy electrical energy produced by a 50-megawatt (MW) solar power plant for PhP2.99 (USD0.058) per kWh.
Coal-fired power generation, by comparison, costs upwards of PhP3.80–5.50 (USD0.074–0.11) per kWh, and the true cost of imported diesel-fired power ranges from PhP15–PhP28 per kWh, according to IEEFA.
The publicly released, contracted cost of coal and natural gas power generation is inaccurate and misrepresented as being significantly lower than it actually is due to the legally permitted ability of power producers to pass hidden costs on to consumers, IEEFA Energy Finance Analyst Sara Jane Ahmed explained in an interview.
Regulators and the DOE (Department of Energy) assumed the growth and electrification agenda requires, and is premised on, cheap coal. That’s clearly not happening. Coal is extremely expensive
—Ahmed told Solar Magazine.
“The government is in a position to change the longstanding status quo, which disproportionately puts fuel-price and foreign-exchange risk on consumers, while utilities and power generators remain insulated from market changes,” Ahmed wrote in IEEFA’s Unlocking Rooftop Solar in the Philippines. “As a result, power suppliers have no incentive to transition away from coal and diesel or to hedge against price-change and currency risks.”
Philippines falling far short in terms of realizing its solar, renewable energy potential
In 2008, the Philippines government passed a renewable energy law with goals of doubling renewable power capacity by 2030 and reducing the nation’s dependence on coal-fired power in order to achieve energy independence, enhance energy access, reliability and resilience, lower energy costs, boost all islands’ economies and improve lives, livelihoods and the environment.
Meanwhile, the Philippines’ coal imports increased an average of 12.8% annually from 1989–2015. The combined capacity of coal-fired power plants nationwide surged higher, rising 87% from 3,967 MW in 2005 to 7,419 MW in 2016, Legarda continued. Another 10,423 MW worth of coal-fired power generation capacity was in the development pipeline at the time, locking in environmental degradation and rising greenhouse gas emissions (GHG) for decades to come.
“The low uptake of renewables is surprising given that solar, wind, run-of-river hydro, geothermal and biogas are viable domestic generation options. This is especially true when paired with storage for ancillary services such as frequency regulation providing both enhanced and firm frequency responses, spinning reserves and voltage support. These can be combined to create the type of cost-effective and secure energy system that an island nation like the Philippines needs,” IEEFA’s Ahmed wrote in The Philippine Energy Transition: Building a Robust Power Market to Attract Investment, Reduce Prices, Improve Efficiency and Reliability.
Table 1: True Cost of Diesel and Subsidy (Snapshot)9
NPC SPUG Area
Plant/Power Barge
True Cost of Diesel (PhP per kWh)
Existing Subsidized Approved Generation Rate (SAGR) (PhP per kWh)
Difference (PhP per kWh) paid for by Subsidies from Consumers
Operating Hours
Masbate
Burias Mini Grid
103.09
5.12
97.97
8
Masbate
Masbate Pres Mini Grid
165.52
5.12
160.40
6-8
Romblon
Sibuyan DPP
25.56
5.64
19.92
24
Bantayan
Doong DPP
30.46
6.26
24.20
24
Tawi-Tawi
Tandubanak DPP
25.53
5.12
20.41
12
Other Visayas
Panay Mini Grid
127.37
5.64
121.73
8
Other Visayas
Almagro DPP,
Western Samar
38.28
5.64
32.64
8
Other Visayas
San Vicente DPP,
Northern Samar
44.09
5.64
38.45
16
Other Mindanao
Sacol DPP,
Zamboanga
36.71
4.80
31.91
16
Other Mindanao
Hikdop DPP, Surigao del Norte
32.81
4.80
28.01
16
Data source: [Report] Philippine Energy Transition: Building a Robust Power Market to Attract Investment, Reduce Prices, Improve Efficiency and Reliability
In short, Filipinos and the environment are paying the price and subsidizing incumbent utilities and large private corporations that own, operate and continue to invest in new coal, natural gas, diesel and other and fossil fuel-fired power generation, critics say.
This coal-dependent strategy creates stranded assets, and consequently, stranded costs that our consumers will ultimately have to bear…The most intriguing aspect of [the] RE (Renewable Energy) Law implementation in our country is arguably the absence of a clear and strong political commitment to develop and stimulate a healthy market for renewable energy development.
Handing over new markets to a politically connected, family-owned solar corporation
Another example of political, government capture by powerful, family-owned corporations emerged recently when Pres. Duterte signed a new bill into law. The law grants Solar Para sa Bayan, a company run by the son of a former senior senator, now congressional representative and Duterte ally, a non-exclusive, 25-year franchise to develop distributed clean energy systems in unviable, under- and unserved areas spanning 15 provinces.
Solar Para sa Bayan’s sponsors in the legislature had to make concessions and amend the original bill to satisfy opponents and assure its passage. The government issued a statement upon Pres. Duterte signing the bill into law highlighting certain of its aspects intended to assuage public concerns and those of all the other solar project developers active in the Philippines’ nascent distributed solar and microgrid market.
Solar Para sa Bayan’s franchise does not alter or affect the Philippines Dept. of Energy’s (DOE) responsibility to promote private sector participation in “the electrification of remote, unviable, unserved and underserved areas,” for instance, according to one local news report.
Furthermore, the government highlights that “other qualified third parties will be able to continue to participate in any competitive selection to operate in these areas as determined by DOE, in accordance with some provisions of the Act, even without a similar franchise from Congress.”
Philippine Rural Electric Cooperatives Association (PHILRECA) President Presley De Jesus was quoted in a news report. | Image: IKOT.PH
Foreign solar microgrid developers introduced the concept and were the first to roll out community solar-storage microgrid systems in the Philippines, Ramsundersingh pointed out, planting the seeds of a trend that has continued growing and has become a key facet of the government’s goal to electrify all Filipino households by 2022. WEnergy Global began working closely with a community and local electricity cooperative on the island of Paluan to develop a community solar-storage microgrid some seven years ago, Ramsundersingh told Solar Magazine.
Earlier in July, before Solar Para sa Bayan was granted its franchise, a bill was introduced in the Philippines Senate that aims to accelerate rural electrification by allowing solar and other renewable energy project developers to develop projects in off-grid areas without having to obtain waivers from electric cooperatives that hold franchises to deliver electricity services to communities in these areas. The bill would also impose sanctions on authorities that delay permit and license processing.
The government has stated that total electrification in unserved areas cannot be done by traditional grid extension alone and that non-traditional means—such as microgrid systems—are needed. The problem of energy access is also a concern even in ‘electrified’ areas with limited electricity service, or what we call underserved areas.
—Senator Sherwin T. Gatchalian, the bill’s sponsor and chairman of the Senate Committee on Energy, was quoted in a news report.
Duterte reinforced his commitment to reduce the Philippines dependence on coal-fired power generation in his annual address to Congress in July by directing the DOE to fast track implementation of two renewable energy policies. The first is a Renewable Portfolio Standard (RPS) that will require power distribution utilities to source a minimum proportion of energy from renewable energy resources. Dubbed the Green Energy Option, the second gives consumers the right to demand the energy they buy comes from renewable energy sources.
Energy Secretary Alfonso Cusi explained that a Green Energy Rate will be established for 2 gigawatts (GW) of renewable energy capacity. He didn’t specify a time frame.
Cusi emphasized that the Green Energy Rate will not be a feed-in-tariff or other form of government subsidy. He also emphasized the achieving national energy security requires a diversity of fuels and that liquefied natural gas and coal-fired power plants will continue to be considered fuels that bridge the way towards a renewable energy transition.
The market for utility-scale solar in the Philippines has become increasingly difficult due to market regulatory changes and in terms of price competition that only the largest, highest capitalized developers, such as utilities and other large corporations that have independent power producer subsidiaries, can compete. A huge opportunity exists in the nascent market for smaller-scale, distributed solar and microgrid systems , however, Ramsundersingh said in an interview.
As a nation, the Philippines, like Indonesia, is scattered over a vast expanse of ocean. Roughly 4.5 million to 4.6 million households, 15 million people, don’t have access to electricity. That makes the Philippines an ideal country for decentralized solar microgrids and presents a huge opportunity.
There are some 119 electric cooperatives charged with providing reliable, affordable electricity 24×7 in the Philippines, Ramsundersingh pointed out. “That just isn’t happening…The are many dedicated, intelligent and well-trained engineers and others working in electric cooperatives, but they just don’t have the capacity,” he said.
Ramsundersingh and WEnergy Global see lots in the way of latent, untapped energy demand, along with sustainable development potential, in developing solar-storage microgrids to serve these off-grid and poorly served areas. “That’s where the big opportunity is: electrifying 4.6 million households with solar, and that’s not counting small commercial and industrial (C&I) businesses—in tourism, agriculture, fisheries, etc.—that could use that clean energy to improve and grow their businesses,” Ramsundersingh said.
A rooftop solar PV station mounted on the campus of St. Mary’s University located at Bayombong, Philippines
Image: WEnergy Global
Aggressively deployment of solar-storage microgrids would also go a long way towards improving human and environmental health and quality of life, as well as helping the Philippines achieve its national and international renewable energy, greenhouse gas (GHG) emissions reduction and climate change goals. Not doing so, on the other hand, would come at a great cost, Ramsundersingh continued. “Connecting households is one thing, but along with that is the economic development opportunity, not only from the commercial, but from a climate perspective,” he said.
“This is a tremendous reason for us to be there. Imagine if all those households and businesses were energized with diesel or another polluting, fossil fuel energy resource. “We believe [a transition to low-carbon energy] is viable and can be carried out in an equitable way,” Ramsundersingh said.
Ramsundersingh believes that Filipinos at the local levels will rally and continue to support greater competition and a more open energy market centered on the use of local solar and other renewable energy resources. He pointed out that a variety of agencies involved in approving off-grid, distributed energy project proposals have the authority to impose additional conditions on developers and awards. “There are lots of good people in the Philippines that do want to promote innovation and attract international capital and technology transfer…Local communities and government councils will ultimately decide on who they want on their islands and to energize their communities,” he said.
Tropical seaside resort, Boracay, Philippines.
Furthermore, the political tide may turn again. “Two, three or four years down the road political leadership could change, a new government come into power and Solar Para sa Bayan may have a tough life. The law could be reversed and they would be back to square one—a market based on competition and local and international cooperation for the benefit of rural communities instead of a lazy monopolist without any pressure from competition.”
WEnergy Global has a project pipeline totaling some 20 off-grid, solar-storage microgrids and has been planning to invest over USD100 million in the Philippines to develop them over the next three years, according to Ramsundersingh. “If life becomes too tough, there are other places we are investing in, Myanmar and Indonesia, for example, but we believe innovation and market-based competition will win out. Filipinos are very commonsense people,” he said.
Ramsundersingh and WEnergy also see a large new business opportunity emerging for C&I solar in the Philippines. Project internal rates of return can run between 14–16% over 20–25-year production terms, which is attractive, he said.
“The C&I sector is growing. C&I business leaders in the Philippines aren’t as skeptical when it comes to considering and investing in solar energy as they are in other ASEAN countries,” Ramsundersingh said. “They can see the cost advantage, and the value of increased reliability. WEnergy Global is focusing on that. We’re preparing a facility to accelerate the installation of C&I solar rooftops. That business is picking up, and I think we’ll see opportunities to establish joint ventures with Filipino companies.”
Looking ahead towards Filipinos’ energy future
Looking to the future, Ahmed said she is “quite optimistic about what could happen, assuming the energy regulatory acts in public’s best interests, especially reforming fixed-price procurement so that there’s no [costs] pass-through of fuel or foreign currency risks. The actual landed price at the end of the day should be the price originally contracted for,” she said.
“Moving forward should not be monopolistic,” Ahmed commented in light of Solar Para sa Bayan being granted a non-exclusive franchise.
It should be transparent and competitive. Transparency and competition should be at the forefront so consumers and industry are delivered lower electricity prices. All future power generation should be procured through auctions that take into account resource efficiency by being technology-specific and location-specific, in coordination with the transmission operator.
Ahmed pointed out that government energy authorities are developing a reverse auction framework “that should allow for price transparency and competition on the basis of least cost and resource efficiency. We should see greater price stability and more secure pricing for consumers in the industry as a result,” she added.
Assuming this proceeds, “there will likely be a lag,” Ahmed continued. “We’re already seeing that the coal power plant pipeline has effectively stalled because prices will not guarantee capital recovery.” Furthermore, fossil fuel power producers “will finally have to absorb the fuel and currency risks rather than passing them on to consumers and industry. I think we’ll see a greater understanding of renewables versus fossil fuels and that renewables don’t require subsidies. I think we’ll see a larger commitment to renewables from 2020 onward as a result,” Ahmed concluded.
explained in an interview.
told Solar Magazine.
