Press Release
June 2, 2011


On the Renewable Energy sources for power

Q: Can you expound on your proposal for a technology neutral bidding for the Renewable Energy sources?

Serge: Kalimutan nating kung anong klaseng technology kayo, mag-bid lang kayo. We will choose you on the basis of price. Ang pinaka-mababa diyan, iyong mini-hydro atsaka iyong biomass. Ubusin muna natin kung anong available sa mini-hydro atsaka sa biomass. Bakit tayo mag-a-allocate ng quota para sa solar na P17, iyong mini-hydro P6, iyong biomass P7. I will not allow the Filipino people to start paying P17 when you still have renewable energy at P6 or P7 level.

Q: The DOE said they cannot yet implement that. They can only implement it 3 to 5 years from now when the 2nd project is implemented.

Serge: No. They can implement it right away, now.

Q: They filed already their proposal so they have to wait 3 to 5 years from now?

Serge: We'll see. Hindi pa tayo nag-uumpisa, hindi pa nade-declare ito eh. As a matter of fact, on June 14, PNOY will declare the Renewable Energy program is in place and adjustments can still be made kung paanong gagawin iyan. So if they don't do it now, I am going to put their feet into the fire. I am not going to pay P17.

Q: Paano iyong technology neutral, ano iyon? Uniform rate?

Serge: Ang ginawa nila, nag-allocate sila. Iyong 5 technology, binanggit sa loob - ocean, solar, wind, biomass and mini-hydro. Ang sinabi nila, 'We have 100 MW for solar, 100 MW for wind, ganun...ang total niyan 800 MW. Eh teka muna, kung marami naman ang power supply ng mini-hydro and biomass, bilhin muna natin iyan sapagkat iyan ang pinakamura, P6 or P7. And the Filipino consumer does not have to subsidize the P17 solar. Maglagay tayo ng solar dun sa mga isla, dun sa mga off grid areas sapagka't mahal talaga ang cost of power dun. Iyong diesel plant, that thing can cost as much as P15 per kilowatt hour. So, it's okay there to pay for solar energy.

Q: Tama ba iyon, iyong 800 MW na Renewable Energy sources will cost an additional P8 billion a year?

Serge: Yes. I want to bring it down to P3 billion nga eh. See, that's why I am saying that it must be technology neutral because if that happens, then they will have to pick the lowest price. So kung magbibigay sila, solar meron kayong 100 MW dito, eh alam ko P18 nga eh, P17.95.

Q: So, from P8 billion, ang gusto mo maging P3 billion?

Serge: Yeah. The proposal now, more or less, is that the Filipino consumer will be subsidizing to the tune of P8 billion in three years' time. Kasi magbi-bid pa sila eh. Kasi, they will bid it out now, so the project will be finished on the third year.

Q: Kelan mag-uumpisang magbayad ng additional P8 billion?

Serge: It will be in your bill, parang universal charge iyan. You will be paying 12 centavos more per kilowatt hour.

Q: Starting when?

Serge: Starting whenever the power is delivered, between now and three years. And if they add another 800 MW, titirahin ka na naman ng another 12 centavos.

Q: Parang ang takbo, consumers will start paying again an additional P8 billion a year starting???

Serge: It's staggard. Whenever it's finished. Ang pinaka-mabilis, solar. In one year, matatapos na ang solar. Papasok na iyan. I am not talking of technology here. I am talking about how it was originally proposed to be done. Magbibigay sila ng 100 MW sa solar, and that will be the first one to finish because it only takes 1 year for that to finish. It only takes 1 year to set up solar facilities to finish. So those are the first ones to be added to the billing of the consumers. And when the others come in - the wind, biomass, 2 or 3 years down, then they will be included in your bill.

Q: Ang assurance nila, there will be hearings before these new rates are implemented?

Serge: Yes.

Q: Paano ba ang computation, ang distribution ng P8 billion?

Serge: It's in the presentation of the NREB (National Renewal Energy Board).

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