fef position on re
TRANSCRIPT
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8/4/2019 FEF Position on RE
1/21
OurPosition
on
RA 9513RA 9513
Foundation for Economic Freedom, Inc.
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8/4/2019 FEF Position on RE
2/21
What is renewable energy?What is renewable energy?
Energy from resources that do not have an upper limit on thetotal quantity to be used.
Such resources are renewable on a regular basis, and whose
renewal rate is relatively rapid to consider availability over anindefinite period of time.
These include, among others, biomass, solar,wind, geothermal, ocean energy, and hydropowerconforming with internationally accepted norms andstandards on dams, and other emerging renewableenergy technologies. (RA 9513)
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8/4/2019 FEF Position on RE
3/21
Fast Facts: the Philippine SituationFast Facts: the Philippine Situation
34%34% of the countrys energy mix is renewablerenewable oraround 5,300 MW out of the 15,000 MW installedcapacity
Contrast to the Global average: less than 10%
Philippines contributes only 0.48%0.48% to globalcarbon pollution (NREB)
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8/4/2019 FEF Position on RE
4/21
Fast Facts: the Philippine SituationFast Facts: the Philippine Situation
Transportation is the countrys top polluter
Power plants belong to thebottom ten polluters
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8/4/2019 FEF Position on RE
5/21
Renewable Energy Act of 2008Renewable Energy Act of 2008
Signed into law in December 2008, supposedly toprovide incentivesprovide incentives for investorsfor investors to engage in REprojects in the country
Department of EnergyDepartment of Energy (DOE)
- lead agency
Energy Regulatory CommissionEnergy Regulatory Commission (ERC) anindependent quasi-judicial regulatory agency
supposed to issue FIT (feedFIT (feed--inin--tariff) rulestariff) rules inconsultation with the National Renewable EnergyBoard (NREB) created under Sec.27
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8/4/2019 FEF Position on RE
6/21
What is FIT?What is FIT?
An RE policy that guarantees payments on afixed rate per kwh for emerging RE sources:solar, biomass, wind, solar, run-of-river hydro
A fancy term for the amount that thegovernment wants to add to our electricitybills to encourage more use of new RE
For all intents and purposes,
FITIS A TAXFITIS A TAX
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8/4/2019 FEF Position on RE
7/21
What is FIT?What is FIT?
A subsidy to make up for what the REtechnologies cost:
Solar PHP 17.95 kw/hr
Wind-PHP 10.37 kw/hrBiomass PHP 7.0 kw/hr
RoR-PHP 6.15/kwhr
vs conventional
(PHP 5.0 kw/hr)
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8/4/2019 FEF Position on RE
8/21
We do not oppose REWe do not oppose RE. We oppose the plan to makeFilipino consumers and industries pay PHP 8Bannually for the next 20 years to subsidize and
guarantee the profits of RE developers.
Our PositionOur Position
It is more prudent towaitwait, given advances intechnology, until theuntil the
cost of solar and windcost of solar and windpower drops to paritypower drops to paritywith conventionalsources which aremore efficient.
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8/4/2019 FEF Position on RE
9/21
Our PositionOur Position
We can increase our share of RE by
rehabilitating and improving existingrehabilitating and improving existing
hydro and geothermal sourceshydro and geothermal sources,
which produce energy far cheaper
than wind or solar.
We support solar for OFFsolar for OFF--Grid smallGrid small
island areasisland areas where the avoided costis much higher (PHP 11/kwhr) due to
the use of diesel
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8/4/2019 FEF Position on RE
10/21
Our Disagreements with NREBOur Disagreements with NREB
DOE recommended 20 MW for solar but NREBincreased it to 100 MW. This means anadditional surchargeadditional surcharge on consumers.
Why should FIT be imposed for 20 years20 years whenthe minimum proposed by law is only 12years?
No competitive biddingNo competitive bidding whether from amongthe different RE technologies or within aspecific technology.
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8/4/2019 FEF Position on RE
11/21
Our Disagreements with NREBOur Disagreements with NREB
No biddingNo bidding for terms of less than 20 years. Nobidding, period. All contracts are negotiated.
FIT Rate determined by a risk-adjusted rate
of return. = guaranteed superguaranteed super--profitsprofits Subsidy will not go to cheapest first but all
RE developers are guaranteed subsidy, evenhigh costing wind and solar.
RE Developers are guaranteed cash flow,RE Developers are guaranteed cash flow,profits, collection and against technologicalprofits, collection and against technologicalobsolescence for 20 years.obsolescence for 20 years.
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8/4/2019 FEF Position on RE
12/21
Our Disagreements with NREBOur Disagreements with NREB
NREB hiding onerous charge againstconsumers by submitting FIT Rate under therule-making power of ERC.
Ergo, no public hearing, no publicationno publication, justpublic consultation EVEN IF THE FIT RATEWILLINCREASE CHARGES FOR ALLINCREASE CHARGES FOR ALLCONSUMERSCONSUMERS. This is a clear violation of theletter and spirit of EPIRA and the mandate ofERC.
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8/4/2019 FEF Position on RE
13/21
They say; we sayThey say; we say
They say
We have to diversify.
We say
Solar and wind are unreliableSolar and wind are unreliable and cant bebasis for energy diversification.
We need around 5,000 MW in the next few
years to supply growing energy demandOld RE is stillavailable that is yet to beOld RE is stillavailable that is yet to beuntappeduntapped -15,000 MW (hydro and geothermal)
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8/4/2019 FEF Position on RE
14/21
They say
It is good for the environment.
We say
The Philippines has no obligationno obligation to reduce its carbonemissions. Our contribution to global pollution is almostnegligiblenegligible.
Transportation is the top pollutant; power plants rank in thebottom ten.
We are already producing more than 30% of our power fromRenewables, more than the US at 10 %.
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8/4/2019 FEF Position on RE
15/21
They say
Energy independence and security
We say
Better results; cheapercheaperalternativealternative.
Solar and wind are ratherinefficient and unsteady sincethey are dependent on weatherand other climatic conditions.Conventional sources are moreConventional sources are morereliablereliable and cost only PHP 5 perkilowatt hour
We stillhave 15,000 MW of15,000 MW ofuntapped hydro and geothermaluntapped hydro and geothermal
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8/4/2019 FEF Position on RE
16/21
They say
Solar energy is good.
We say
We dont oppose solar energy per se, but
they should go to off-grid small island areas
where the avoided cost (about PHP11/kwhr) is high due to the use of diesel.
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8/4/2019 FEF Position on RE
17/21
They say
What is PHP 12 centavos per kilowatt hour?We say
It only covers the generation charge.
There are hidden costshidden costs.
NGCP willalso need to
install new
tra
nsmissionlines
andit may require further
rate hikes for
distribution utilities.
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8/4/2019 FEF Position on RE
18/21
Why does it concern you?
Businesses, whichalready suffer from the
highest power cost in Asia, willhave to suffer
more unnecessarily. This will make them less
competitive.
Investors will not come to the country if power
cost willbecome higher still.
No investments, no job
s.No investments, no job
s.Consumers are being taxed without them
knowing it just to subsidize the profits of these
wealthy RE developers.
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8/4/2019 FEF Position on RE
19/21
What can you do?What can you do?
File a comment using the official comment format the ERC
File a petition for intervention/relief
Make noise in social media.
Like our page: NO to Electricity HIKE forNO to Electricity HIKE for
FilipinosFilipinos
PROTEST, PROTEST, PROTEST!PROTEST, PROTEST, PROTEST!
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8/4/2019 FEF Position on RE
20/21
Annex A
P1.6 billion - Daang Hari-South Luzon
Expressway link
P10.59 billion - NAIA expresswayP21 billion - North Luzon-South Luzon
expressway link
P10.5-billion - Cavite-Lagunaexpressway
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8/4/2019 FEF Position on RE
21/21
Annex B