The Philippine Renewable Energy Law, which was signed last Tuesday, was hailed as a big boost to the country’s program for energy self-sufficiency by the Philippine Independent Power Producers Association (PIPPA).
The PIPPA are a private group of power generators who supply energy to the national grid. Most of them operate diesel fuel based power plants. Some sectors credit the PIPPA for the reason why energy prices are high in the Philippines, mostly because of clauses in their contracts that guarantee for their electricity to be bought even when there was no demand.
This was done during the Ramos administration when the country was experiencing sweeping blackouts due to demand outstripping supply. It was an incentive or deal sweetener so that private groups would fast track investing in the energy sector.
Blame was placed on the Aquino administration for not building more power plants that would have met the demand.
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Category: Law, Clean Energy
