Press Release
November 24, 2009

ANGARA: SAVE RP FROM OIL DEPENDENCY

In light of last night's announcement by oil firms of increases in their pump prices, Senator Edgardo J. Angara who led the passage of the Renewable Energy Act of 2008, stressed that the Philippines should vigorously pursue RE to decrease dependence on imported fuel and encourage local entrepreneurs to go into the development of the country's vast alternative energy resources.

"We are at the mercy of constant world oil price fluctuations and consequently by the oil companies operating in the business. Each year, we import 94% of all our crude oil needs. Meanwhile, our oil consumption is projected to rise by more than 10% in the next decade," he said.

Oil companies Flying V, Eastern Petroleum Philippines, Pilipinas Shell Petroleum Corp., Petron Corp and Total Philippines announced an increase in the prices of gasoline, diesel and kerosene effective today.

Angara said that the country's 2006 net oil imports (crude and petroleum product imports less petroleum exports) went up to 20 percent to $6.8 billion funds which could otherwise have been spent on public services funds such as schools and hospitals. The high cost of imported fuel also translates to high power prices which are passed on to consumers.

According to the study made by the Renewable Energy Coalition, if the country saves even half of its net oil imports, it can use this amount for social and infrastructure programs such as: sending 17 million children to elementary school, building 250,000 classrooms, putting up 135,000 health centers, feeding 14 million families, and building 38,000 farm-to-market roads.

Another study by the University of the Philippines which was commissioned by World Wide Fund for Nature (WWF), by increasing the country's share of indigenous renewable energy in its power generation mix to 41% the country can save as much as US$2.9 Billion from avoided fossil fuel imports.

Angara said that solar, geothermal, hyrdo and wind energy are proven power technologies, for which we have great and untapped potential.

According to the Department of Energy (DOE), the country's resource potential for geothermal energy is 4,531 MW; hydro at 13,097 MW; biomass at 277 MMBFOE; solar at 5.0-5.1 kWh/m2/day; wind at 76,600 MW; and ocean at 170,000 MW.

"There is a need now more than ever to explore our alternative sources of fuel and energy. Our future is in renewable energy. Many countries have already begun the transition from total dependence on oil, and it would be to our great advantage to follow suit," he said.

He noted that at least 56 countries worldwide now have some type of renewable energy promotion policy and that several developing countries are actively engaged in enacting policies.

"At least 11 developing nations ranging from Cambodia to Turkey have some sort of national policies to promote, encourage or directly fund clean energy development. We should not allow ourselves to be left behind."

Angara said that developing the Philippine's RE potentials would wean the country from dependence on imported oil.

"I'm not saying that the Renewable Energy Bill will be the magic bullet that will solve all of our energy problems but I believe that it is a vital step we must take in order to harness and develop the abundant alternative energy resources that our country possesses, to benefit both present and future generations."

"We must act now to ensure that the Philippines become one of the most attractive investment destinations for major renewable energy players in the global market," he stressed.

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