FPI warns against RE integration into WESM

MANILA, Philippines - The Federation of Philippine Industries (FPI) has warned against the country’s move towards the development and mainstreaming of electricity generated from renewable energy especially its integration into the Wholesale Electricity Spot Market (WESM) of the Philippine Electricity Market Corp. (PEMC).

Emmanuel Go, chairman of the FPI’s power and energy committee, said the group is wary of the negative impact of RE sourced- electricity on the country’s notoriously high power rates that are already the highest in Asia.

“It is the view of the industry that Philippine policy should pursue a moderate and tempered transition from traditional to indigenous renewables,” Go said in a roundtable discussion on elecricity pricing through the WESM organised by the National Academy of Science and Technology (NAST) yesterday.

“New technologies of the future will mass – produce cheaper generations of renewables, and the country will ride into such new developments. Meanwhile, our work must focus on alternative measures to reduce GHG (green house gases) through forestation, investing in energy efficiency, conservation, and others,” Go said.

The NAST roundtable discussion was attended by PEMC officers and officials led by its president, Melinda Ocampo, and other officials from the Energy Regulatory Commission led by Commissioner Gloria Victoria Yap-Taruc, as well as other energy stakeholders groups and businessmen.

The PEMC is set to integrate RE-sourced electricity reserves into the WESM which will have a feed-in tariff (FIT) rate, as well as be given preference in the dispatch scheduling of power in the spot market.

“Electricity is a major and common cost input item and Philippine electricity has the highest cost in Asia,” Go said.

Go said any further hike in the country’s power rates would further affect the country’s attractiveness to foreign investors.

“Industry competitiveness is a must to be abreast and to fight in the global market place,” he said.