A sure way to bring down prices in any market is to replace monopoly with open competition. And if that market supplies a good that almost everyone relies on, then the cascading impact of lower prices will surely pull the inflation rate down.
A previous piece showed that our greenhouse gas reduction commitment to the Paris climate treaty meant a gradual 2.02% annual reduction in fossil-based electricity generation, for a total reduction of 23.3% by 2030 compared to 2017 levels. The annual reduction required by this low-carbon path is only half the 4% natural attrition rate of coal plants, if they are retired at the end of their 25-year useful life. This provides the country with some flexibility.
My two previous pieces (BW, July 16 and July 23, 2018) discussed four flaws in the DoE’s current power development plan that led it to overestimate the country’s 2040 baseload requirements by more than 100%.
A previous piece identified one serious flaw in the DoE’s Philippine Energy Plan (PEP) 2016-2040: the DoE still assumes that baseload plants will retain their 70% share in the electricity mix until 2040.
Over the past four decades, solar photovoltaic (PV) prices have been dropping by an average of 9% per year. As a result, rooftop solar is the cheapest daytime source of electricity today in many countries.