Senator Sherwin Gatchalian goaded power distribution facilities Friday to contract more renewable energy (RE) sources, stressing this will benefit electricity consumers amid global energy risks.
This, he noted, is “a significant increase in utilization” that the senator stressed should “prompt distribution utilities to consider contracting more renewable energy to deter fuel pass-through amid wild fluctuations” in fuel prices, as the “fuel cost pass-through mechanism allows recovery of fuel cost for power generation through electricity tariffs.”
The senator aired the call in the wake of the recent move of the Department of Energy (DOE) to increase the percentage of the utilization of RE for on-grid areas from 1 percent to 2.52 percent set to take effect in 2023.
“This is a significant increase in utilization and should prompt distribution utilities to consider contracting more renewable energy to deter fuel pass-through amid wild fluctuations in fuel prices,” Gatchalian added, noting that the fuel cost pass-through mechanism allows recovery of fuel cost for power generation through electricity tariffs.
The development of RE resources, he noted, is central to the energy department’s sustainable energy agenda. In 2021, as RE accounted for 22.40 percent of the country’s energy mix, with coal-based power plants accounting for 58.48 percent, while oil-based and natural gas power plants contributed 1.52 percent and 17.60 percent, respectively.
“The time is ripe for us to accelerate the development of renewable energy in the country,” Gatchalian noted, citing record prices of fossil fuel, as well as continuing concerns on the impact of climate change, “leave us with no other viable option but to vigorously pursue the development of green energy.”
Gatchalian pointed out that today, a total of 998 RE contracts, generating around P270 billion of investments have been approved by DOE, noting, “Such contracts have an aggregate installed capacity of 5,460 megawatts (MW) and a potential capacity of 61,613.81 MW. He added that the increase is also a mechanism designed to provide a guaranteed market for RE.
“Patuloy ang pag-angat ng renewable energy dahil na rin sa paggamit ng mga bagong teknolohiya. Ang pagtutulak ng DOE na taasan pa ang utilization percentage para sa renewable energy ay dapat makahikayat sa ating mga distribution utilities sa pagkontrata ng ganitong enerhiya para na rin sa energy security ng bansa,” Gatchalian added.