Gatchalian urges distribution utilities to contract more renewable energy

Senator Win Gatchalian urged distribution facilities to contract more renewable energy (RE) as such a move will benefit consumers amid prevailing global energy risks.

Gatchalian's call follows a decision made by the Department of Energy (DOE) to increase the percentage of the utilization of RE for on-grid areas from 1% to 2.52%, which will 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 said, adding that the fuel cost pass-through mechanism allows recovery of fuel cost for power generation through electricity tariffs.

The development of RE resources is central to the energy department's sustainable energy agenda. In 2021, RE accounted for 22.40% of the country's energy mix, with coal-based power plants accounting for 58.48%, while oil-based and natural gas power plants contributed 1.52% and 17.60%, respectively.

"The time is ripe for us to accelerate the development of renewable energy in the country. 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 said.

To date, a total of 998 RE contracts, generating around Php270 billion of investments have been approved by DOE. Such contracts have an aggregate installed capacity of 5,460 megawatts and a potential capacity of 61,613.81 megawatts (MW). The increase is also a mechanism designed to provide a guaranteed market for renewable energy.

"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.

Gatchalian hinimok ang distribution utilities na mangontrata ng mas maraming renewable energy

Hinimok ni Senator Win Gatchalian ang mga distribution facility na kumontrata ng mas maraming renewable energy o RE dahil ang naturang hakbang ay pakikinabangan ng mga consumers sa gitna ng umiiral na global energy risks.

Ang panawagan ni Gatchalian ay kasunod ng naging desisyon ng Department of Energy o DOE na taasan ang porsyento ng paggamit ng RE para sa on-grid areas mula 1% hanggang 2.52%, na magiging epektibo pagdating ng 2023.

"Makabuluhan ang mas mataas na porsyento ng paggamit ng renewable energy. Ito ay dapat mag-udyok sa mga distribution utilities na isaalang-alang ang pagkontrata ng mas maraming renewable energy upang hadlangan ang fuel pass-through sa gitna ng pabago-bagong presyo ng gasolina," sabi ni Gatchalian.

Mahalaga ang RE sa sustainable energy agenda ng pamahalaan. Noong 2021, umabot na sa 22.40% ang ambag ng RE sa kabuuang energy mix sa bansa, 58.48% ang coal-based power plants, samantalang nasa 1.52% at 17.60% naman ang oil-based power plants at natural gas power plants.

"Napapanahon na para lalo nating pabilisin ang paggamit ng renewable energy sa bansa. Dahil sa mataas na presyo ng fossil fuel, gayundin ang climate change, wala tayong ibang solusyon kundi ang pagpapaunlad ng green energy," ayon kay Gatchalian.

Sa ngayon, may kabuuang 998 RE contracts na may katumbas na humigit-kumulang Php270 bilyon na investments na inaprubahan ng DOE. Ang mga naturang kontrata ay may pinagsama-samang kapasidad na 5,460 megawatts at potensyal na kapasidad na 61,613.81 megawatts (MW).

"Patuloy ang pag-angat ng renewable energy dahil na rin sa paggamit ng bagong teknolohiya. Ang pagtutulak ng DOE na taasan pa ang utilization percentage para sa renewable energy ay maaaring makahikayat sa ating distribution utilities sa pagkontrata ng ganitong enerhiya para na rin sa energy security ng bansa," dagdag ni Gatchalian.