Clean energy

The high cost of energy is a perennial issue and development challenge for our country. But the cost of energy from using limited fossil fuel resources goes beyond the price paid by consumers. The environment pays a price too, and we are warned that if the global emission of greenhouse gases continues unchecked, the devastation from global warming could equal the loss of two World Wars and the Depression combined, or in financial terms about $7 trillion.

Through the Kyoto Protocol, more than 170 countries agreed on the carbon credit system, which assigned quotas on the maximum amount of greenhouse gases produced by both developed and developing countries.

Carbon credits provide a way to reduce greenhouse gases on an industrial scale by capping total annual emissions and letting the market assign a monetary value to any shortfall through trading. Essentially, it gives a monetary value to the cost of polluting the air.

The future is in clean, renewable energy, which is predicted to be one of the biggest industries by 2014. By then, it is expected that market demand for wind energy will be up to US$48 billion, followed by solar at US$40 billion, and fuel cells at US$ 15 billion.

Solar, geothermal, hyrdo and wind energy are proven clean and sustainable power technologies, for which we have great and untapped potential. According to our Energy Department, the country’s resource potential for geothermal energy is 4,531 MW (already, we are the world’s second largest GE producer); hydro at 13,097 MW; biomass at 277 MMBFOE; solar at 5.0–5.1 kWh/m2/day; wind at 76,600 MW; and ocean at 170,000 MW.

There is a need now more than ever to exploit our alternative sources of fuel and energy, and in the process participate in the global effort to stem climate change. The capital costs may be higher for renewable energy but the environmental health and carbon credit will more than repay the initial costs.

The proposed Renewable Energy Act of 2008 will encourage local entrepreneurs to go into the development of the country’s vast alternative energy resources and decrease our dependence on imported fossil fuel. It is a timely and strategic measure that will increase RE use and development through fiscal and non-fiscal incentives.

We have the resources, we have the manpower, and we have all the opportunities. What we need is a legislative measure that will provide the much needed incentives, and investment environment conducive for developers of renewable energy technologies.