Solar energy usage in PHL still on experimental stage

CEBU, Philippines - Energy Smart Program chairman Al Santos said the establishment of more solar energy source in the Philippines is still on the experimental stage, and the availability of land remains an issue because of cost concerns.

Santos, who is also the vice president for First Gen Corporation, said that there are now some commercial buildings, and households that have installed solar energy facilities on their rooftops, this is one of the models that should be followed by some companies, and even by residential users.

Energy Smart Program aims at encouraging the greater application of resources for energy efficiency among business enterprises and to maximize the full potential of energy efficiency for business.

Meanwhile, the Department of Energy (DOE) announced that there are now investors who are constantly assessing the possibility of establishing both solar and wind energy plants in the Visayas.

DOE undersecretary Antonio Labios said that although power from solar energy generation is four times expensive than the traditional sources, demand is significantly growing, as consumers from both residential and corporate/industries are now more aware of implementing energy efficiency.

In Cebu, Labios said there are applicants (investors) who are exploring for an establishment of wind-power plants such as in Carmen and Oslob towns.

On the other hand, Aboitiz Power Corporation president Erramon Aboitiz earlier said that unless the Philippine government will strongly implement effective incentive strategies to power producers in setting up plants for renewable energy (RE), it is still unrealistic to do so by this time.

Although, there is a strong pressure to adopt RE at the onset of global warming, Aboitiz said that “the real important thing about renewable is the company should know how much it will cost them.”

At present, it is still expensive to source energy from renewable sources in the Philippines, thus, Aboitiz said utilizing imported fuel and coal are still some of the practical choices.

Renewable Energy is energy generated from natural resources, such as sunlight (Solar), wind, rain, tides, and geothermal heat, which are renewable or naturally replenished.

Record shows, that in 2006 about 18 percent of global final energy consumption came from renewable, with 13 percent coming from traditional biomass, like wood-burning.

In December of 2008, former President Gloria Arroyo signed into law the much anticipated RE Bill. Dubbed as the Renewable Energy Act of 2008, it gives incentives to investors and energy producers to build renewable energy power plants instead of fossil fuel based ones.

The RE Act promises several benefits to renewable energy investors, these are; seven year income tax holiday, carbon credits generated from RE source will be free from taxes; a 10 percent corporate income tax, as against the regular 30 percent, among other perks.

Power generated from RE sources will be value added tax-exempt and a net metering scheme will give capable consumers the option to generate their own power. (FREEMAN)