PH to use more renewable energy – DOE USec

MAKATI CITY (Bukidnon News Dispatch/ 28 Sept) — “The Philippines is indeed
abundant with renewable energy resources.”

This was stressed by Energy Undersecretary Jose Layug Jr to regional
reporters during the Media Training Program on Energy held at Asian
Institute of Management (AIM) Conference Center in Makati City, Sept.

Layug added that expanding the use of renewable energy resources (RE)
is a key thrust of the Energy Reform Agenda (ERA) of the Department of
Energy (DOE).Layug cited data provided by National Renewable Laboratory of the
United States which showed the Philippines has approximately 170,000
MW potential installed capacities in terms of ocean resources,
10,000MW for hydro, and 76,000 MW for wind.

Layug presented the DOE Optimization which included final installation
targets of cheaper technologies particularly run-of-river hydro and
biomass, and management of more expensive energy resources such as
wind, solar and ocean

He said that there are 236 awarded projects under R.A. 9513 or the
Renewable Energy Law of 2008. Under this law,124 projects were granted
for the generation of hydro power, 46 for wind, 40 for biomass, 21 in
geothermal, 3 for ocean energy and 2 for solar. Seventy-two of these
projects are already developed, producing installed capacity of
2,377.59 MW.

As people cannot forever rely on conventional fossil fuels which will
eventually deplete in the future, Layug said there are fiscal and
non-fiscal incentives provided for by the RE Law that would help
ensure utilization of RE resources.

The fiscal incentives include Seven-Year Income Tax Holiday, 10%
Corporate Tax Rate after ITH, and VAT-free Importation, among others,
for RE developers and suppliers

Data on country’s current energy situation from DOE show that out of
67,743 gigawatt hour (GWh) gross generations, only 26.31 percent is RE
share. Most of which still come from non-RE: coal (34.4%), natural gas
(28.81%) and oil-based (10.48%).

In his presentation on energy future scenarios called “The 9 Billion
Challenge,” Warren Fernandez, Global Manager of Shell’s Future Energy
Project, emphasized that the current world population of 7 billion
with five new babies born every second, will eventually lead to 9
billion by 2050. This is like having one more China and India, he

Fernandez said that in the face of increasing population, a third of
the global energy mix would come from renewables and with fossil fuels
and nuclear power likely to make up the rest. The challenge he said is
to have greater energy efficiency and lower CO2 options.
According to Fernandez, their aim at Shell is to “help the world meet
its growing future energy needs in a responsible way.”

The other key thrusts of the ERA, according to Layug, are accelerating
petroleum and coal exploration, enhancing efficiency of energy usage,
strict monitoring of oil price and supply, promoting the use of clean
alternative fuels and technologies, and improving transport sector

These, among others, were tackled at the two-day Media Training
Program on Energy. Other topics were “Helping Meet the World’s Energy
Challenge through Clean Natural Gas” by Martin Bates (Commercial Lead
Philippines of Shell Philippines Exploration B.V.), “Challenges and
Opportunities for the Philippines towards Future of Energy” by Roberto
Kanapi (vice president for Communications of Pilipinas Shell Petroleum

Topics also included “Solving the Power Supply Dilemma” discussed by
Sebastian Lacson (first vice president of Aboitiz Equity Ventures),
“Industry’s Viewpoint on the Energy Sector’s Future” by Ernesto B.
Pantangco (president of Philippine Independent Power Producers
Association), “Reinforcing the Power Grid” by Randy A. Galang
(transmission planning head of National Grid Corporation of the
Philippines), and “Demystifying PSALM’s Universal Charges” by
Ferdinand Florendo (manager for Liabilities Management Department of
Power Sector Assets and Liabilities Management Corporation). (Hazel A.


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