Senator Sherwin Gatchalian urged electric cooperatives (ECs) to find ways to lower power costs for the benefit of consumers as he pushed for the development of renewable energy (RE) in Small Power Utilities Group (SPUG) or far-flung areas.
Gatchalian, in a statement, cited the case of Romblon Electric Cooperative (Romelco) which successfully generated savings for its consumers by adopting a hybrid system for providing electricity.
Romelco expanded its hybrid system with a grant from Germany aimed at developing hybrid systems for off-grid areas.
Romelco’s energy mix is comprised of 73-percent diesel and 27-percent solar. The cooperative initiated a project to further increase the share of renewable energy (RE) to 90 percent, with diesel accounting for only 10 percent.
“We want to encourage small power utilities group areas to adopt the exemplary practices demonstrated by Romelco and pursue the use of renewable energy,” said Gatchalian, who serves as vice-chair of the Senate Committee on Energy.
The senator made these remarks in a recent public hearing conducted by the Senate Committee on Public Services in relation to the granting of franchises to certain electric cooperatives.
Gatchalian said beyond the goal of achieving 100-percent electrification in their service areas, cooperatives should strategize on lowering energy prices.
“I know it’s very challenging to reduce electricity rates in our country because we practice true cost, but cooperatives should continue to work on bringing down the cost of electricity,” Gatchalian said.
Romelco general manager Rene Fajilagutan said the levelized cost of electricity (LCOE) in the case of solar in 2023 was P3.80 per kilowatt-hour, lower than the true generation cost of up to P28 per kWh for diesel on some of Romblon’s small islands.
Fajilagutan also said the use of RE in Romblon generated savings of about P150 a month for households consuming about 50 kWh, contributing to a system-wide savings of about P100 million in 2023.
