Manila Standard Today reported that a government official wants the feed in tariff, or power charges, on renewable energy projects deferred, a move that could further derail the development of the emerging industry.
Mr Cristino Panlilio MD of Board of Investments told reporters at the sidelines of The Philippines Power & Infrastructure Funding Roundtable Forum 2011 that the feed in tariff, which provides incentives to renewable energy developers, would push up power rates.
He said that "Renewable, it's a very exotic idea, but for now, the Philippines cannot afford it. Because we are coming from a really high electric cost."
He said if the tariff increased power rates by just PHP 0.12 per kilowatt hour or less, the Philippines' energy cost would still be very high and make it difficult for the agency to attract investors. He added that "It's still an additional cost. We already have high power rates not only that it will also have an impact on transmission cost. And here I am trying to invite investors, manufacturers especially those who use a lot of energy, I think it is understandable for me to say to postpone that."
The official said it would be best to wait until the cost of renewable energy technology came down. He added that "The technology is getting cheaper and cheaper and cheaper. In the long run, we may see it getting more affordable and closer to the current cost of other more traditional sources of fuel. Every year, the cost of solar farming facilities is going down."
Mr Panlilio conceded the development of the country's indigenous resources was included in the Renewable Energy Law of 2008 but said it might be prudent to postpone their development for the meantime.
