Aboitiz Power Corporation Chief Corporate Services Officer, Carlos Aboitiz, says that renewable energy (RE) developers are selling the “cheap electricity narrative” while ignoring the hidden costs associated with the volatility of solar and wind power.
In a report by Manila Bulletin, Aboitiz said that while it is frequently stated that renewables are cheaper than fossil fuels, the cost calculations often rely on the levelized cost of electricity (LCOE), which does not account for intermittency issues with renewable sources, backup generation, grid stabilization, and storage solutions—all of which impact the total cost passed on to consumers.
Aboitiz urged that the true cost of producing reliable electricity should not be hidden, warning that without full transparency, consumers are being sold an incomplete vision of cheap, green energy.
The chief corporate services officer of AboitizPower added that renewables like solar and wind have relatively low capacity factors, with solar at 20% and onshore wind at 31%, in contrast to higher rates from conventional sources such as coal (57.5 to 68.5%) and nuclear (93.1%).
Furthermore, while global trends point towards the phasing out of coal, he argued that in developing economies like the Philippines, there remains a lack of economic alternatives to fossil fuels.
He emphasized that energy security remains the top priority, which complicates the transition to renewable sources. In the Philippines, electricity sales are projected to double within just 13 years, with a 5.19% to 5.49% annual growth forecast until 2050.
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