New study shows how an immediate shift to RE is technically feasible
Quezon City—Greenpeace today challenged Meralco, one of the country’s biggest energy companies[1], to abandon fossil fuels and re-orient their business towards renewable energy.
The challenge came at the launch of a new Greenpeace report[2] titled Decarbonizing Meralco, and co-written by the Center for Renewable Energy and Technology (CREST). The report shows how Meralco can refocus its business to renewable energy (RE) while ensuring a reliable, affordable and secure supply of clean electricity. It outlines a 6-point energy transition plan[3] showing how the shift is not only urgently needed but also technically feasible and good for business.
“There is no excuse for companies like Meralco to cling to outdated fossil fuel-centric business models that are destructive to the environment and people’s health and livelihoods,” said Greenpeace Campaigner Khevin Yu. “This report shows Meralco can very easily shift their focus to clean, renewable energy starting now. All that is needed is the willingness to change and do the right thing–and a clear plan that shows how they will follow through with that commitment.”
According to the report, Meralco relies heavily on dirty power sources, with 97% fossil fuels in its energy mix. The latest data on the company’s current and future power supply agreements (PSAs) shows that fossil fuels will remain dominant at 94%, with RE shares at only 6%[4]. Recent pronouncements from the company also stated a target of 1000-1500 MW of RE generation in 5 years[5], which Greenpeace has criticized as glaringly unambitious, particularly since coal and other fossil fuels remain the centerpiece business strategy. The low penetration of renewables in Meralco’s energy mix prevents the company and its end-users from reaping the benefits of rapid cost reductions in solar and wind energy technologies.
Greenpeace believes that energy companies such as Meralco are poised to reap benefits should they transition to RE now. Decarbonizing Meralco is a win-win solution for both the company and its shareholders as well as electricity consumers as it will lower costs, increase potential profit, and address the climate emergency and related harms coal and fossil fuel use inflict on communities.
“The report shows how Meralco stands to benefit from shifting to RE, as it would drive down their generation costs by 17.58 percent,” said CREST President Rei Panaligan. “There are no more reasons for Meralco to continue its pursuit of coal; now is the time for the company to transition to renewable energy.”
“Coal poisons our air and water,” said Alvin Pura of the Coal-Free Bataan Movement (CFBM)[6]. “The worst part is that these energy companies are profiting from our suffering. This is why our communities have been working together for years to stop these destructive operations from continuing.”
According to Greenpeace, the imperative for power companies like Meralco to transition to RE is now more pronounced with the onset of the COVID pandemic crisis. The need for a green and just recovery to ensure that society is able to cope with ongoing and future crises, including the much bigger climate crisis, is pushing the agenda for rapid decarbonization.
“Meralco is at a critical juncture in defining what kind of company it wants to be,” said Yu. “It can become a beacon for clean energy transition, or drop the ball completely and continue to pursue its huge appetite for dirty and expensive fossil fuels at the expense of its customers, public health, the climate, and the environment. Greenpeace is calling on Meralco, its executives and shareholders, to heed the call of the times, respond to the climate crisis, and put people and planet before profit.”
Notes to editors:
[1] Meralco is the country’s the largest private sector electric distribution utility company, which additionally has a subsidiary company in power generation, Meralco Powergen Corporation (MGen).
[2] Decarbonizing Meralco: The imperatives to prioritize pro-people, pro-climate models in the power business. The report is attached on the e-mail.
[3] The report issues the following concrete demands to Meralco:
- Source all of their new future power supply agreements (PSAs) and other future energy demands from renewable energy.
- Lessen reliance on inflexible baseload and invest more in hybrid RE plants.
- Mandate straight energy pricing for future power contracts.
- Include carve-out clauses for any future baseload PSAs.
- Rationalize requirements for net metering.
- Pursue investments in energy storage and smart grids.
[4] RE only comprises 325 MW of current and pending capacity, while fossil fuels make up 5400 MW of which 2135 MW is coal.
[5] Source: Media interview with MGen President and CEO
[6] CFBM is a people’s movement in Bataan province that seeks to expose the climate, health and environmental impacts of coal fired power plants, particularly the Limay Coal Fired Powerplant from which Meralco sources electricity.
Media contact:
Maverick Flores
Communications Campaigner
[email protected] |+63 917 621 1552
Renewable energy is the key to our country’s energy independence. But coal companies and politicians are holding us back.