The Middle East crisis presents an opportunity for renewable energy and enhanced energy security, the Philippine Solar and Storage Energy Alliance (PSSEA) said Tuesday.
The PSSEA said the fourth contracting round under the Green Energy Auction Program (GEAP) is set to offer an additional six gigawatts of ground, rooftop and floating solar projects. These projects “will definitely mitigate rising electricity prices caused by the Middle East Conflict,” the alliance said.
“It will offer immediate relief as solar is fast to install,” said the PSSEA, an alliance of solar industry stakeholders including panel manufacturers, project developers, contractors, funders, rooftop installers and off-takers.
The industry expressed hope the Department of Energy (DOE) would continue reforms and remove financial barriers to GEAP registration, allowing for broader participation from the solar sector.
“It has been established by economists that imposing high financial requirements creates industry concentration and restricts more registrants, which may result in undersubscription,” the group said.
Tetchi Capellan, chief executive of SunAsia Energy and chair of the solar alliance, cited the need to learn from past experiences. “We have to learn from the FiT [feed-in-tariff] 1 and 2 experience. The 500-MW target was participated extensively,” she said.
“It was oversubscribed as no barriers were introduced. In fact, participants built first, risked funding their solar plants, and raced to FiT deadline in the hope to capture the contracts,” she said.
Capellan said solar provides an opportunity for the government and consumers to access a cheaper source of electricity.
Meanwhile, the PSSEA welcomed the appointment of Garin as officer-in-charge (OIC) of the DOE, noting that an internal appointment “ensures stability and predictability during these uncertain times.”
“Having an experienced officer like Garin – who is familiar with the rules, organization, and stakeholders – is very comforting to everyone, especially among investors who expect predictability in policies, processes, and people,” the group said.
“With an insider like OIC Garin, participants to the 4th contracting round under the Green Energy Auction Program will be more confident on its implementation and timeline,” the PSSEA said.
