Power prices in the Philippines constantly fluctuate because of market volatility due to import dependence and heavy reliance on conventional fuel.
Thus, ramping up the development of our indigenous resources and aggressively shifting to renewable energy may provide answers to the perennial problem of unreliable and high electricity costs.
A global technology group Wärtsilä Energy study showed that the Philippines can transition to net zero by 2050 through renewable energy-based systems. The transition can effectively cut power costs and greenhouse emissions simultaneously.
There is consensus in the international scientific community that to prevent extreme climate damages, global net human-caused emissions of carbon dioxide need to fall by some 45 percent from 2010 levels by 2030, reaching net zero by around 2050
According to a study published in the Rethinking Energy in Southeast Asia report, the country can reach net zero by 2050 using renewable-based power systems supported by grid-balancing engines and energy storage.
Wärtsilä used Luzon, the country’s largest island, as the model under two scenarios — the “Business As Usual” scenario without an emissions limit and a “Net Zero” scenario, where emissions were halved by 2040, before reaching net zero by 2050.
Factoring in the International Energy Agency’s ‘supper forecasted carbon prices, the study found out that the Levelized cost of electricity in the “Net Zero” scenario is 23 percent lower than in the “Business As Usual” scenario. The reduction could translate to a whopping $6.5 billion in annual savings.
“The study results clearly showed that a generation’s opportunity is within reach for the Philippines’ energy leaders. In the Philippines, renewables can be leveled up using flexible capacity to serve the current load while comfortably meeting rising power demand and decarbonizing at the lowest cost,” Wärtsilä Financial & Market Analyst David Kayanan said.