WWF-Philippines

JBD Plaza
#65 Mindanao Avenue
Bagong Pag-asa
Quezon City, 1128
Philippines

Tel: +63 2 920 7923/26

Fax: +63 2 426 3927
kkp@wwf.org.ph
www.wwf.org.ph

For immediate release - 4 August 2011

Press
Release
Renewable Energy Cheaper Than Coal, Says
WWF
8

To free the country from recurring energy crises, the World Wide Fund for Nature
(WWF-Philippines) is pushing for a realistic, recurring and inclusive power planning
process based on a future defined by climate change.
Coal today is expensive, says WWF-Philippines Vice-Chair and CEO Jose Ma.
Lorenzo Tan. When acquisition, operation and fuel costs are taken into
consideration, coal will only get more expensive each year.
The weighted average Feed-in-Tariffs for all Renewable Energy options stands at
P7.44 / kwh. It will not come into force until 2014, at the earliest. In contrast, the
generation cost for the new Panay CBFC coal plant already stands at P7.60 / kwh
proving that coal power is indeed more expensive.
Explains Tan, As coal prices increase further, feed-in-tariffs for renewable energy
will decrease. Geothermal, hydro, solar, wind, biomass and other forms of
renewable energy technologies will not only become cheaper they will contribute
to the countrys increasing national competitiveness.
Coal plant dependence, on the other hand, will only increase the cost of doing
business in the Philippines. In 2009, 29% of the Philippines power came from coal.
According to the Department of Energy's latest forecast by 2012, a full 50% of
the countrys power will be taken from coal.
COAL HEAVIER BURDEN ON CONSUMERS
There are no caps on coal plant numbers, no installation targets and with the
pass through privilege practically no price limits, says WWF Asia Pacific Energy
Policy Coordinator Rafael Senga. Renewable energy projects, on the other hand,
WWF World Wide Fund For Nature (also known in the United States as the World Wildlife Fund)

emerge from a highly-calibrated and capped process specifically designed to

reduce the burden on the consumer and avoid problems experienced in other
countries.
International Energy Agency (IEA) forecasts show that coal prices will clearly
exhibit an increasing trend over the next 20 years. In 2010, the annual average

spot coal price in the EU was $90+ per ton. IEA expects this to increase to $130+
per ton by 2020 and $170+ per ton by 2030. At present, Asian coal prices are
higher than EU prices. The pass through privilege enjoyed by new coal plants
allows them to automatically pass these increasing fuel costs to consumers.
As world economy shifts toward green growth and sustainable consumption, fossilfuel dependent activities and sectors will experience increasing marginalization.
Although coal provides base-load options, it is largely imported, and relatively
more expensive to operate and maintain than renewable energy. In contrast,
renewable energy technologies provide the platform for national and local selfsufficiency, distributed risk and a more stable price. In short, says Tan,
Renewable Energy sources are much cheaper to operate and maintain than coal
plants.
WWF believes that the best way to deal with such problems of energy insecurity is
to diversify the countrys power mix as a buffer to climate change and to the
volatility of international fossil fuel prices. This insulates Filipino consumers from
the increasing prices of oil and coal while enhancing its energy independence and
dramatically reducing carbon emissions.
In 2008, the Philippines passed a groundbreaking law called the Renewable
Energy Act, one of the most comprehensive and forward-looking renewable energy
laws in the world. WWFs PowerSwitch study shows the country can further
develop 1200 MW of geothermal, 2308 MW of sustainable hydro, 235 MW of
biomass and 7404 MW of wind power capacities in the next 10 years, raising the
share of indigenous renewables in our power mix to 50%.
Concludes Tan, The Philippines is a fossil fuel-poor country investing in RE
shields us from the volatility of this market. If we truly want clean and sustainable
power, we should veer away from cut and paste solutions such as coal plants.
(30)
For further information:
Atty. Gia Ibay
Climate Change Programme Head, WWF-Philippines
gibay@wwf.org.ph
Gregg Yan
Communications & Media Manager, WWF-Philippines
920-7923/26/31
gyan@wwf.org.ph

On the Rise The chart above shows the average projected rise of coal and
oil prices over a 40-year period. Pricewise, power generated from renewable
energy sources will be more stable. (WWF-Philippines)

Get Wind of This Wind

turbines have an installed
capacity of 33MW enough
to power approximately
33,000 Filipino homes. (Ruel
Pine)

Starpower Solar panels

have an installed capacity of
1MW enough for about
1000 homes. (Gregg Yan)

From the Bowels of the

Earth The installed
capacity of geothermal power
is placed at 1953MW
enough to power over
1,950,000 homes. (EDC)