Global Green Power PLC Corporation published full page advertisments in National and Regional newspapers on the 10th and 11th August outlining the lower cost of GGPC Thermal Biomass power when compared to New Coal or Oil fired power generation as well as the positive Socio-economic benefits Biomass power.
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An Open Letter to His Excellency Benigno S. Aquino III President of the Philippines
From Global Green Power PLC Corporation
Regarding: Grid Connected, Base Load Renewable Energy from Biomass Power,
Renewable Energy that is Less Expensive than Current New Coal or Oil based Power
Your Excellency,
After a long wait of over 16 years, the Renewable Energy Act (RE Act) was finally passed by Congress and signed into Law in 2008. This very significant breakthrough was in recognition that Renewable Energy plays a vital role in the economic development of the country, by way of ensuring energy security, clean sources of power and the ability to reach areas that otherwise cannot be reached by the National Grid. Some sectors, however, perceive Renewable Energy as expensive. This perception is unfortunately short-sighted, given our circumstances as a Nation, which is highly dependent on imported coal and oil, the price of which are highly volatile and also increasingly becoming more expensive.
New technology today provides us the ability to generate and deliver Base Load power from Renewable Energy sources cheaper than newly built Coal or Oil-based Power Generation Facilities, when developed within the framework of the Renewable Energy Act. It would be a National disgrace therefore not to encourage, support and maximize the deployment of this technology with all possible haste.
Global Green Power PLC Corporation’s (GGPC) Thermal Biomass Grid Connected (TBGC) power plants can deliver this cheaper and reliable Renewable Energy.
Today’s new Philippine Coal Power Plants are delivering energy at prices in excess of Php 8 Pesos per Kilowatt-Hour to Electric Cooperatives and Distribution Utilities. This is clearly evidenced by the most recent Energy Regulatory Commission (ERC) approved Electricity Supply Agreements (ESA)[1]. These Coal Plant ESA’s embody the latest capital cost of equipment, development cost, construction cost, fuel cost on a “pass through” basis, as well as operations and maintenance for a newly built Coal Power Plant. They also receive Board of Investments (BoI) incentives similar to the RE Act[2]. As such the Php 8 cost represents a clear picture of power prices Philippine consumers may expect from new and future Coal Power plants.
GGPC-TBGC Power Plants will deliver power at Php 7 Pesos per Kilowatt-Hour through the RE Act’s Feed in Tariff (FiT) rate should the National Renewable Energy Board’s (NREB) proposed FiT rate be approved by the ERC. An important additional point is that the Biomass FiT rate of Php 7 is subject only to the Philippines Consumer Price Index (CPI) price increases, minimal Foreign Exchange Rate (FX) fluctuations and has no fuel cost “pass through” burden to the Philippine Consumer for the 20-year FiT duration. This is unlike Coal and Oil power plants that are subject to an upward Fossil Fuel pricing trend, price volatility and fuel pass through.
As stated above, the RE Act FiT rate pricing structure for Biomass will deliver Philippine Consumers a less expensive and stable power price based on basic cost of living (CPI) increases within the Philippines for 20-years. Clearly, it is time to set the record straight regarding GGPC-TBGC power plants as they are poised to appreciably reduce the cost of new and future power supply within Luzon, the Visayas and Mindanao whilst delivering extraordinary socio-economic benefits.
GGPC biomass power plants are smaller-scale power plants (being 17.5 to 35 Megawatt (MW) each) that use agricultural and food processing waste as an alternative fuel to Fossil Fuel. They are dedicated, power-only plants embedded into the franchise area of local electric cooperatives delivering distributed power generation that will help stabilize and improve efficiency of the local and national grid system.
Each 35 MW GGPC-TBGC displaces an estimated Php 138 Billion of imported Oil based Diesel Fuel and provides direct income of an estimated Php 33 Billion to our Host Community over 25-years of operation. All this whilst each GGPC-TBGC provides 3,400 jobs in each rural location supporting Clean, Renewable Energy Generation through the collection, transportation, and processing of agricultural wastes that are currently either burned in the fields causing carbon dioxide, or left to rot causing methane; both Green House Gasses (GHG) that significantly contribute towards Climate Change and Global Warming.
The Philippines still needs significant supplies of electricity from Fossil Fuels to enable the Nation’s growth. This, however, should not be at the expense of our environment and total disregard of latest technologies that can provide power at prices cheaper than newly built Coal and Oil based power plants. There is a necessity for all power generation in our Country’s bid to become competitive on the World stage and more Energy Efficient as a Nation. We must however remain diligent regarding the Philippines’ ever increasing reliance and exposure to imported foreign fossil fuels as these limited resources become scarcer and the world becomes more susceptible to increasing Fossil Fuel pricing, hostile commodity price increases and manipulation.
Each Global Green Power PLC Corporation 35 MW TBGC Power Plant:
- Delivers “INCOME TO OUR HOST COMMUNITY” of an estimated Php 817 Million ($US 19 Million) within the first year of operation and an estimated Php 33 Billion ($US 798 Million) over 25-years. This income is injected directly into the host community through the purchase of biomass, biomass transportation, operations and ancillary services.
- Delivers “AFFORDABLE CLEAN POWER” under the RE Act at Php 7 per kilowatt hour FiT rate, which is significantly less expensive than newly approved ERC ESA’s for Coal or Oil power plants.
- Delivers “EMPLOYMENT IN RURAL AREAS” of an estimated 3,400 jobs within our host community through the collection of biomass waste, transportation and operations. GGPC biomass power plants are located in the center of agricultural production areas ensuring an optimized, sustainable collection of biomass whilst delivering jobs to rural communities where additional employment is desperately needed.
- Delivers “POVERTY ALLEVIATION” to an estimated 14,000 people based on employment generation of 3,400 Filipinos in the collection, transportation and preparation of biomass waste as an alternative fuel.
- Delivers “NATIONAL & LOCAL ENERGY SECURITY” through the utilization of local biomass waste as an alternative fuel that displaces imported Fossil Fuels. Fossil Fuels are a dwindling, finite resource subject to price volatility and are under increasing upward price pressures due to unrest in the Middle East. Fossil Fuel usage is now also under even more upward price pressure as nuclear power generation is reduced due to security concerns subsequent to the Fukushima Japan nuclear power plant tragedy.
- Delivers “FOREIGN EXCHANGE SAVINGS” to the Nation obviating the necessity of purchasing Oil based Diesel Fuel saving a projected Php 3.3 Billion ($US 80 Million) in the first year and Php 138 Billion ($US 3.3 Billion) over the 25-years operation of just one 35 MW plant.
- Delivers “CLIMATE CHANGE MITIGATION” by using only biomass wastes for fuel such as: rice straw and husks, corn straw and cobs, sugar cane tops and leaves, coconut wastes and other biomass residues that are currently either burnt openly in the fields producing Carbon Dioxide or left to rot causing Methane. Both Green House Gasses that contribute significantly towards Global Warming, potentially one of the greatest threats to the Philippine’s sustainable economic growth.
- Delivers “DECENTRALIZED BASE-LOAD POWER” to the distribution Grid with the same delivery profile as a Coal Power Plant. GGPC-TBGC small, decentralized power plants actually stabilize the grid and reduce distribution system losses.
- Delivers “CLEAN RENEWABLE ENERGY” to an estimated 140,000 households from each 35 MW plant in the form of Base-Load, Carbon Neutral, Renewable Energy generated from within rural locations. “Clean Energy for every Juan”.
- Delivers “SOCIO-ECONOMIC DEVELOPMENT” and Social Integration through the provision of sustainable employment and stable Base Load power supply that stimulates economic development in areas where disaffected and marginalized communities have little to no opportunity to improve their livelihood.
- Delivers “AGRICULTURAL DEVELOPMENT” as the farming community derive additional income from their crops through biomass waste sales and best practices are implemented through the non-burning or dumping of wastes.
GGPC-TBGC power plants use agricultural and food processing wastes as an alternative, sustainable and carbon neutral fuel to Fossil Fuels. The use of these wastes as fuel does not compete with the human food chain or National Organic Fertilizer Programs. In line with GGPC objective of minimizing our TBGC power plant’s Carbon Footprint, transportation of our biomass fuel is minimal with 75% of our primary fuel collected within a 25-kilometers and the remaining 25% collected within a 50-kilometers radius. In addition, our TBGC power plants exceed Philippine Emission Standards as well as those of the International Finance Corporation and the World Bank consistent with Global Green Power PLC’s commitment to provide the cleanest possible biomass energy globally.
GGPC-TBGC power plants are Carbon Neutral assisting your Administration meet it’s commitment to Climate Change mitigation by reducing Carbon Emissions. Climate Change remains a clear threat to the Philippines Gross Domestic Production (GDP) and especially the agricultural sector, which is highly vulnerable to severe weather patterns and rising sea levels. To quote the Philippines Department of Energy website[3] “The Philippines has experienced temperature spikes brought about by climate change. It has been observed that warming is experienced most in the northern and southern regions of the country, while Metro Manila has warmed less than most parts. In addition, the regions that have warmed the most (northern Luzon, Mindanao) have also dried the most. Largest precipitation trends are about 10 percent during the 20th century. Hot days and hot nights have become more frequent. Extreme weather events have also occurred more frequently since 1980. These include deadly and damaging typhoons, floods, landslides, severe El Niño and La Niña events, drought, and forest fires. Adversely affected sectors include agriculture, fresh water, coastal and marine resources and health.”
Respectfully, quoting excerpts from your motivating and enlightened speech during the Grand Launch of the Department of Energy’s National Renewable Energy Program (NREP) on 14th June 2011, we believe Your Excellency has succinctly painted the vital role of Renewable Energy in our Country’s Future:
“In a mountain in a far-flung province, there is a child now in a school without electricity. A few hours from now, he will go home, tired from the long day, to a house without electricity. When the clock strikes 6:00 pm, he will have to light a candle just to do his homework.”,………..
“I have said many times before that Renewable Energy is vital in moving this country forward. It empowers more than our cities, more than our machines, and more than just entire industries. Renewable Energy fuels our movement towards the rebuilding of this nation. Renewable Energy will fuel our future.”,……………..
“Through this program, Renewable Energy will be able to give that child in the mountain a light through which he can learn his lessons at home. More than that, fifth class municipalities in Lanao del Norte, Bukidnon, Kalinga and Antique, among others, will soon be able to send their children to schools powered by Renewable Energy, through the hard work of those present here today and all those who are working for this cause.”,………….
“But more than lighting up these barrios, the National Renewable Energy Program today points us in the right direction in terms of finding long-term and sustainable energy sources. Our launch today is a symbolic first step in our journey towards fulfilling our vision of a Philippines unbound from the vagaries of the world oil market; a Philippines where we can choose not to sacrifice the environment, particularly the air we breathe, just to power our industries”,…………..
“We need real solutions; economic development should not come at the cost of our environment. And with this program we are doing everything possible to pursue the twin goals of harnessing our Renewable Energy potential while ensuring that our people’s energy needs are met. With this in mind, the plan is to nearly triple our Renewable Energy-based capacity from around 5,400 megawatts in 2010 to 15,300 megawatts in 2030.”,……….
“The bottom line is that we were put into office because we want to make life better for our countrymen. We want to free Filipino consumers from the punishment and the instability that staggering world oil prices have been wont to bring about. I want to make this possible not only now, or until the end of my term. I want future Filipinos to reap the fruits of the efforts we have sown today.”,………….
“What we need to do is to fulfill our roles in the collective task of rebuilding this country. The daylight has finally dawned, and it is our duty as Filipinos to make certain we walk under its guidance”,……..
“I especially invite the youth, who are the future of the Philippines, to join this government and their elders, as we all help make this daylight a continuing reality, so that no smog, no darkness will ever enshroud us again’……...
Thank you and Good day!
Your Excellency, this wonderful speech, the diligent hard work of the Energy Team led by Secretary Almendras, the efforts of the National Renewable Energy Board led by Atty. Pete Maniego along with all those who have strived so hard to deliver affordable Renewable Energy to the Philippines appear to have been negated by the recent Board of Investments statement that they wish to “delay the implementation of the RE Act”. This is something we cannot understand as the nation faces yet another impending power crisis. What will be our alternative? Continued unabated expansion and use of imported Coal and Oil and no employment in rural areas whilst we waste our natural resources?
Sir, with your commitment and leadership in the areas of Transparency and Good Governance, the Country is looking forward to a higher growth rate as international investor confidence in the Philippines is renewed. The Energy Sector must be ready to support this surge in the economy with sufficient and reasonably priced electricity. Your Excellency has clearly and resoundingly made a commitment to pursue Renewable Energy as this can free the Filipino from the impact of staggering world oil and coal prices. Our Country therefore needs to embrace cost competitive Renewable Energy without delay and without Fear or Favor to those who seek the deferral of Clean, Cost Effective Renewable Energy for reasons of either being mis-informed or vested interests.
My name is Maribeth de Montaigne, born in Valencia Bukidnon, grown in Cebu and schooled in Manila. I am the President of Global Green Power PLC Corporation and a Filipina patriot dedicated to the alleviation of the terrible poverty many of my Kababayan’s (Countrymen) are suffering within our Rural Communities, the deployment of Clean Renewable Energy and the furtherment of the Philippines as a powerhouse of prosperity within ASEAN.
Sir, Global Green Power PLC Corporation intends to put that light in the room of the Child you spoke to during the NREP launch.
Maribeth (Bunny) de Montaigne
President
Global Green Power PLC Corporation
Additional information regarding recent ERC approvals and GGPC TBGC power plants are available through our website at www.global-green-power.com and under the heading “GGPC TBGC Situation Paper”.
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[1] ERC evidentiary documentation is available for download at Global Green Power PLC Corporation website: www.global-green-power.com and ERC website: www.erc.gov.ph
[2] A comparison between the BoI incentives for Coal Power Developers and RE Act Developers is available via www.global-green-power.com and the BoI website: www.boi.gov.ph
[3] Philippine Department of Energy: http://www.doe.gov.ph/cc/ccp.htm
