DOE raises geopolitical concerns, says conflicts in Indonesia, Iraq may affect fuel supply

MANILA, Philippines - The Department of Energy (DOE) has raised concerns over the recent geopolitical issues in Indonesia and the armed conflict in Iraq as these affect the country’s fuel requirements.

Energy Secretary Carlos Jericho Petilla said these developments serve as reminders that the Philippines, which imports 90 percent of its fuel requirements, is highly susceptible to fluctuating global prices and the looming threats to energy crisis.

As such, the Energy department is pushing for the use of renewable energy (RE) with traditional sources, such as coal and diesel.

“At present, the Philippines is harnessing 30 percent of RE in our energy mix. If we keep it at that level, we will have a secure energy source, even if oil prices go up or if there is a shortage in supply in the international market,” Petilla said.

He said that because renewable energy is indigenous or locally available, the country could depend on these sources more and cushion consumers from political issues such as war in other countries.

“This benefit alone should outweigh the cost implications associated with RE,” he said.

Petilla said the cost of electricity from a coal plant can run up to P5.50 per kilowatt hour, plus P6.50 for distribution and transmission, which amounts to P12.

 “If you install solar panels on your rooftop, you will only spend P9 per kilowatt hour for generation and no cost for distribution or transmission. This already saves you up to P3 per kilowatt hour,” Petilla said.

Under the Renewable Energy Act of 2008, net metering is allowed. Under this scheme, qualified residential and commercial consumers are allowed to install an on-site RE facility – such as solar panels installed on roofs – not exceeding 100 kilowatts (kW) in capacity to generate electricity.

 “Any electricity generated that is not consumed by the RE user will automatically be exported to the distribution utility’s ystem,” Petilla said. 

The distribution utility then gives a peso credit for the excess electricity received, equivalent to the DU’s blended generation cost, and deducts the credits earned to the customer’s electric bill.

 “This translates to a lower monthly bill,” he said.

The Energy chief urged homeowners to use solar energy.