First, there is a notion that a renewable energy system is costly to build. In the Philippines, the development of a 15-tower wind farm in Bangui, Ilocos Norte, required roughly US $48 million in investment, according to the July 31, 2008 Business World article of Judy Gulane, “Bangui Wind Farm: Green and Profiting.”
However, one of the primary reasons for the high cost can be partially explained by the simple dynamics of demand and pricing: the use of renewable energy has yet to reach a large enough scale to become price-competitive, particularly in the Philippines.
Thus, the business sector seems to be taking a wait-and-see attitude, particularly given that the economic viability of renewable energy is also dependent on the price of fossil fuels. The more expensive fossil fuels are, the easier it may be for renewable energy to compete. In countries that have no or only a few domestic fossil fuel resources, renewable energy becomes an attractive alternative even in commercial terms.
Environmental Damages Have Huge Costs, Too
Environmental advocates in the Philippines, therefore, staunchly believe that since the Philippines does not really have huge oil deposits, renewable energy projects in the Philippines may have a good chance at economic viability. They also highlight that renewable energy appears to be expensive because the pricing of fossil fuels does not include other costs, such as the cost of environmental damage. Oil price tags do not include the cost of the recurring pollutants and the contribution of fossil fuel use to global warming.
If additional cash from carbon credits is also accounted for, renewable energy seems to be a much wiser economic choice. Thus, it would seem that the use of renewable energy appears relatively cheaper in the long-run if fossil energy source and environmental costs are also factored in.
The private sector needs enough incentive in terms of profitability and while green accounting makes good business sense, the power industry should also remain economically viable.
The Need for Continuous Technology Enhancement
Apart from the costs, renewable energy technology still needs continuous enhancement. While technology these days has never been better, experts say more can still be done. Ocean thermal energy conversion technology (OTEC), for instance, is still being debated upon by experts.
According to the US Department of Energy'sonline article "Ocean Thermal Energy Conversion?", last updated December 30, 2008, the systems "use the ocean's natural thermal gradient – the fact that the ocean's layers of water have different temperatures – to drive a power-producing cycle. As long as the temperature between the warm surface water and the cold deep water differs by about 20°C (36°F), an OTEC system can produce a significant amount of power."
However, this poses as a challenge for tropical countries where oceans have patterns of unpredictability particularly those often visited by typhoons. This was raised by Robert Cohen in his 4 May 2009 paper “An Overview of Ocean Thermal Technology, Potential Market Applications, and Technical Challenges” (Paper OTC 20176, Ocean Technology Conference, Houston, Texas, USA, May 4–7, 2009). According to Cohen, “The tropical and subtropical oceans can be a hostile environment in which to operate. Notably the warm surface waters also fuel severe storms and hurricanes.”
Finally, there are concerns about aesthetics and cultural adaptability. Wind farms, for instance, may be “eyesores” to some, and alter the natural beauty of landscapes and shorelines. The Philippines, with its more than 7,000 islands, is proud of its long shorelines and pristine beaches. Nature lovers fear that with the advent of Bangui wind farms, more and more islands may host similar facilities and ultimately, change the face of its beaches.
However, RE advocates say this issue can be addressed by promoting such infrastructures as distinct examples of ecotourism destinations. Maybe some day the modern wind towers will eventually be accepted as interesting features of the Philippines’ most famous beach destinations. After all, the small-scale wind farms in the Netherlands, dating back to the 1700s, are a much-loved part of the landscape of Netherlands, along with its colorful tulips. Only history can tell.
Attaining a higher share of renewable energy in the Philippines' energy mix will definitely result in economic and ecological benefits. However, the issues of cost, technology and social/cultural acceptance should be faced squarely so that renewable energy becomes the mainstream rather than merely the alternative.
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