The Philippine government relaunched it’s National Renewal Energy Program – to solve the power shortage, supposedly. Philstar reported that:
MANILA, Philippines (Xinhua) – President Benigno S. Aquino III formally launched today the National Renewable Energy Program (NREP) that is expected to solve power shortage especially in rural areas.
The NREP contains a framework for action, existing and future measures, instruments and policies to promote the use of renewable energy. It will also serve as a roadmap to make renewable energy more viable.
In his speech keynoting the event, the President underscored the importance of renewable energy saying it not only empowers cities, machines and entire industries but also “fuels our movement towards the rebuilding of this nation.”
“Renewable energy will fuel our future,” Aquino said.
The Aquino Myth: Lower Cost of Electricity
Aquino added that through renewable energy, the government can supply the electricity needs of the people at a lower cost and not at the expense of the environment. Really?
The Reality: Continuing High Cost of Electricity
There will not be enough electricity from renewables; Cost of Renewables electricity will remain high
Prices from renewables will remain high. In a previous blog titled “Electric Rates: Another Shocker of a Hike“, it was pointed out during a hearing of the House Committee on Energy that “Present and new players in the power sector are lobbying for higher renewable energy rates so they could earn billions in net profits.”
Snap Out of the Delusion
Given the 60/40 restrictions, the renewables will follow the way of the traditional fossil-based and hydro-based energy sectors – consolidation into business interests owned by the big players – Lopez, Aboitiz, Ayala, Pangilinan, and Cojuangco.
Expecting new results from the same old protectionist policy? Don’t bet on it.