WITH the recent oil price shock, where we saw the price of oil going up to around $140 a barrel, the question is whether that is enough political impetus for us to go into renewable energy in a big way.
By a big way, we mean that we make the investments now in “renewables.” The problem is that renewable energy, technology-wise, is still being perfected, so that means it is not yet cheap. But if nobody invests, it will never become cheap because industry holds back on R&D, because there is no demand. So it becomes a chicken and egg situation. Given that the so-called carbon credits from developed countries can pay for up to 10 percent of the cost of the project upfront, it is still not attractive for some.
Enter the Philippine Renewable Energy bill. When passed, it will actually give a lot of incentives to investors to go into renewable energy (RE). Aside from the fact that RE is a good way to contribute to the climate change effort, if the RE bill is passed, it may actually make good financial sense to go into RE. Because right now, the climate change advocates root for the use of renewables but when you talk to the financial folks, they’ll tell you now is not yet the time.
But what is the right time? After the oil crunch of the 70s, we should have gone big time with renewables. But naysayers said at that time, “Now is not the time.” So now the world is slowly realizing that, now is the time. Because if not now, when? When the oil runs out? That will be too late.
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