EDITORIAL - Investing in renewable energy

In the Ilocos Region, giant windmills are not only providing clean energy but also serving as popular tourist attractions. Now in Metro Manila, SM Supermalls is leading the way in the use of solar panels, with its branch at North EDSA the other day becoming the world’s largest shopping mall to use solar energy.

With increasing awareness of global warming, people around the world have expressed readiness to embrace renewable energy. Filipino consumers have also shown willingness to spend more for energy-saving products such as LED lights and inverter air conditioners.

Renewable energy technology, however, generally remains expensive. If prices of solar panels can be brought down, they can be expected to sell briskly even for residential use in this country, where the panels are currently seen only on the rooftops of a few houses in exclusive villages.

Even big industries hesitate to make the large initial investments required for clean energy, despite being told that such investments prove to be cost-effective in the long term. Fossil fuels remain the most affordable sources of energy especially for developing countries.

There are several groups, however, that are interested in developing or expanding their investments in renewable energy sources. The country has rich reserves of natural gas, geothermal and hydropower resources, but tapping these reserves requires massive investments. The government can do its part by offering incentives for renewable energy development. Incentives can also be given for the sale of hybrid vehicles and those that run on biofuels.

In a country that is visited regularly by natural disasters, people are aware of the impact of climate change and are willing to adopt measures that will reduce their carbon footprint. Such measures can be nudged along by the government.