Measures
Pursuance of a high renewable power share through cost-effective pathways
The decarbonization of the power sector is generally regarded as the low-hanging fruit, as the cost of renewable power technologies decreased rapidly during the past decade. With electricity constituting around a quarter of the total fuel consumption and more than 40 per cent of GHG emissions in 2019, decarbonizing the electricity supply provides a quick decarbonization pathway to reaching a substantial GHG emissions reduction, while providing financial benefits. NEXSTEP proposes four different pathways that may be considered in decarbonizing the electricity supply.
Urban renewable electricity generation can also be promoted. The local stakeholders of Cauayan have a keen interest in utilizing their local agricultural waste for energy generation. A power purchase agreement can be set up with the respective suppliers, supplying the city with renewable electricity at an agreed price. On the other hand, citizen initiatives in setting up rooftop installations on both new and existing buildings should be promoted. For example, the city government is providing a tax incentive to small businesses that establish a minimum of 3 kW of RE systems, in the form of a 10 per cent discount from their gross sales for their corresponding business taxes in the city. The outcome of the initiative should be closely monitored to make sure that it aligns with the city’s aspirations.
Renewable energy auctions may, however, be the best and cheapest option, whereby contracts and agreements are awarded through competitive bidding. The Department of Energy of the Philippines was planning to launch a 2,000 MW renewable energy auction around mid-2021 (Rivera, 2020). While the renewable energy auction mechanism and its associated standards are set at the national level, the City of Cauayan can work with the central Government to implement RE auctions at the city level, Box 4 explains further the renewable energy auction in detail.
The decarbonization of the power sector is generally regarded as the low-hanging fruit, as the cost of renewable power technologies decreased rapidly during the past decade. With electricity constituting around a quarter of the total fuel consumption and more than 40 per cent of GHG emissions in 2019, decarbonizing the electricity supply provides a quick decarbonization pathway to reaching a substantial GHG emissions reduction, while providing financial benefits. NEXSTEP proposes four different pathways that may be considered in decarbonizing the electricity supply.
Urban renewable electricity generation can also be promoted. The local stakeholders of Cauayan have a keen interest in utilizing their local agricultural waste for energy generation. A power purchase agreement can be set up with the respective suppliers, supplying the city with renewable electricity at an agreed price. On the other hand, citizen initiatives in setting up rooftop installations on both new and existing buildings should be promoted. For example, the city government is providing a tax incentive to small businesses that establish a minimum of 3 kW of RE systems, in the form of a 10 per cent discount from their gross sales for their corresponding business taxes in the city. The outcome of the initiative should be closely monitored to make sure that it aligns with the city’s aspirations.
Renewable energy auctions may, however, be the best and cheapest option, whereby contracts and agreements are awarded through competitive bidding. The Department of Energy of the Philippines was planning to launch a 2,000 MW renewable energy auction around mid-2021 (Rivera, 2020). While the renewable energy auction mechanism and its associated standards are set at the national level, the City of Cauayan can work with the central Government to implement RE auctions at the city level, Box 4 explains further the renewable energy auction in detail.
Category
Group
Scenario