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) areas.

Gatchalian cited the case of Romblon Electric Cooperative (ROMELCO), which successfully generated savings for its consumers in Romblon by adopting a hybrid system for providing electricity.

With a grant from Germany aimed at developing hybrid systems for off-grid areas, ROMELCO expanded its hybrid system. Currently, it boasts an energy mix of 73% diesel and 27% solar. The cooperative has initiated a project to further increase the share of renewable energy (RE) to 90%, with diesel accounting for only 10%.

According to ROMELCO General Manager Rene Fajilagutan, the levelized cost of electricity (LCOE) in the case of solar in 2023 was P3.80/kWh, significantly lower than the true generation cost of up to P28/kWh for diesel on some of Romblon’s small islands. Fajilagutan also said the use of RE in Romblon has 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.

“We want to encourage small power utilities group areas to adopt the exemplary practices demonstrated by ROMELCO and pursue the use of renewable energy,” emphasized Gatchalian, who serves as vice-chair of the Senate Committee on Energy.

Beyond the goal of achieving 100% electrification in their service areas, cooperatives should strategize on lowering energy prices, according to Gatchalian. “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.

The senator made these remarks at a recent public hearing conducted by the Senate Committee on Public Services in relation to the granting of franchises to certain electric cooperatives.

AUTHOR PROFILE

Camille P. Balagtas