Press Release
September 8, 2010

SOLAR POWER EYED AS SOLUTION TO MINDANAO POWER CRISIS

Solar energy has been identified as a potential solution to the Mindanao power crisis by the Congressional Commission on Science, Technology and Engineering (COMSTE), chaired by Senator Edgardo J. Angara.

"Our COMSTE panel experts in Energy and Environment have targeted solar energy as a key factor in overcoming the power crisis in Mindanao. This source of Renewable Energy (RE) can complement existing coal-fired plants and is applicable even if off-grid areas," said Angara.

COMSTE Executive Director Dr. Gregory Tangonan noted that recent studies by the Manila Observatory (MO) have indicated that Mindanao will be drier in the years to come lessening the effectiveness of RE sources like Hydropower, which is a major RE source in the region.

Angara stated that the government should look into alternative ways to develop power sources, specifically through Public Private Partnerships (PPP's). He said that the Cagayan Electric Power and Light Co., Inc. (Cepalco), which already has a 1MW solar plant in Cagayan de Oro, is looking to expand their existing capacity to 4MW in two years.

"We should be able to take advantage of collaboration with the private sector and develop more energy projects that can take advantage of the Renewable Energy Act," added Angara.

The Renewable Energy Act of 2008 exempts renewable energy sources from Value Added Tax (VAT), grants a seven year income tax holiday, and prioritizes the purchase, grid connection and transmission of electricity generated by companies from renewable energy sources.

The Philippines, which is the world's second largest producer of Geothermal Energy behind the US, is considered to have huge potential in terms of supplying renewable energy. The Philippine Energy Security Plan states that the country has the potential to average 5.0 -5.1 kWh/M2/day.

"Mindanao has the highest percentage of un-electrified barangays in the country, if we are able to apply solar energy effectively, the potential for sustainable, clean energy is enormous," said Angara.

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