BeBang's Journal

Solar Cost: How much will you pay?

2011-11-30T02:19:16Z

An interesting, informative article on Solar Energy and its entailing cost – How much will you really pay for SOLAR?. Written by Ramon C. Abaya who advocates renewal technologies specifically SOLAR Energy.

ONE MORE TIME: HOW MUCH WILL YOU REALLY PAY FOR SOLAR? 17.95 , 15, 2.28, 1.14 or even less? In pesos or in centavos? Fixed, fluctuating or declining? The answers will surprise you.

It’s been on full throttle: a massive concerted campaign to discredit renewal technologies, particularly solar; a clear demonizing effort at upending and pulling the rug under a Renewables law that took years in the making, and is yet to be carried out, after its passage of almost three years ago. The strategy is to fiercely latch on to feed in tariffs (FiTs), expressed in pesos per kwhr, while deliberately ignoring their retail impact, expressed in centavos. Then to stridently hammer at this thought to prove the technology is too expensive to adopt.

Feed-in Tariffs are cost-based, regulator-determined rates that each RE technology will charge each kwhr consumed for a specified period of time. Their aim is two-fold: to deploy clean energy while keeping their rate impact minimal; and to raise world demand higher, thereby forcing suppliers to further drop their costs, spawning a mutually reinforcing interaction between supply and demand.

Solar PVs are clean, embedded, scalable in size to meet rising demand, can displace oil fired units during the day; and are installable in months not years – a unique trait that will help relieve, the fastest, without harming the environment and public health, the worsening power crisis in Mindanao, where reserves range from very little to none at all. Inadequacy in reserves means that peak and intermediate plants are immediately required. (The grid has began to intermittently suffer blackouts and there is no improvement in sight).

The reader ought to know that some of the more determined critics are from companies that run coal fired plants with plans to do a lot more coal. Some economists, while essentially in agreement with the coal lobby’s arguments, are concerned over the size and purpose of the so-called “subsidies”.

Many refuse, for whatever reason, to make the imaginative leap from FiTs to their impact on customers, forcing the ordinary consumer to discover on his own what he will actually pay. He will pay not 17.95 pesos, but only a little above 2 centavos , or a little above 1 centavo, if the avoided cost of a competing technology is double the NREB’s figure. Yes, you heard right: in centavos!

I am an advocate of generation from renewable technologies, particularly from turning the sun’s irradiance into electricity. The reader ought to know where I am coming from - sort of which side of my bread is buttered. Others eager to weigh in are expected to bare any commercial connections, however tenuous.

One argument against renewables is that pollution is to large extent caused by the developed world and we as a developing country should not carry a disproportionate burden of cleaning our air and water. The solemn conclusion is that we have no moral duty to do so; surely, a sign of incredible hubris on the part of a poor country considered one of the most vulnerable to global warming – whose devastating effects are world-wide, mainly caused by fossil fuels burned for power and transportation. How do you stop these at the national border?

The debate on feed in tariffs foolishly ignores the insidious social costs of fossil fuels, dwelling narrowly on the upfront costs of renewables, and the subsidy that each kwhr must carry to promote the technology, under a FiT scheme. How much different are these from the subsidies the government will provide those who suffer from the weather anomalies caused by global warming?

One difference is that unlike a subsidy from each kwhr consumed, a direct government expense hinges on the state of the country’s fiscal position. FiTs, in contrast, are subsidies from every customer – who virtually invests his share in his and the next generation’s future. They are not a fiscal incentive, affecting the government’s budget.

FiTs are productivity based; each centavo raised hinges on each user’s consumption, thus incentivizing more production on the developer’s part; it is clearly the opposite of a take or pay scheme – whereby a minimum is paid regardless of consumption. Subsidies from the government hinge on tax rates and its collection performance. How stable and certain are those? How efficient has any government conducted its income transfers? Guess which system can potentially undermine the economy’s macro-economy, when deficits are exacerbated by imports with fluctuating prices outside of anyone’s control.

Solar hardly competes with base load plants running on coal ; it competes with technologies that are available during the day, over and above base loads. For instance, compare solar’s impact on retail rates with those of WESM. Are you concerned over the extraordinarily high prices of WESM at times and suspect that its skewed market structure and pricing mode may be a cause? You may be right.

Many small and widely distributed and embedded renewables, with priority dispatch under the Law, will help mitigate the inordinate abuse of that market power. Subsidies, in the form of a charge on every kwhr used everywhere, will dampen and help stabilize WESM rates, for the benefit of those in Luzon and Visayas. The logic is that REs, since they are must-run, will raise the supply offered in the spot market, bringing its clearing prices down, regardless of their original levels at every hour.

In Mindanao, where supply is tight, solar will displace oil fired units forced to run even at the start of day, turning what are otherwise suppliers of energy at high costs into replenishing reserves. Compare solar’s rate impact of only 2.28 centavos to the variable costs of running an oil fired plant, now hitting more than 9 pesos per kwhr. Solar’s addition to blended rates are 2.28 centavos, while that of oil is estimated to be about 3x higher. In either case, solar wins hands down.

The coal lobby are in mortal fear of a technology that is not base-loaded and whose initial target of about 100 or so MW is puny compared to coal plants, rated in thousands of MW, that are now in operations, plus many more under consideration.

Talk about barking at the wrong tree; talk about basing one’s argument on the wrong premise, so one can, in one’s own inestimable self-regard, score points; talk about creating your own monster or bogeyman so you can knock it down. You get the drift.

Under a feed-in tariff scheme, the subsidies are the difference between FiTs and the costs of units displaced (at 4.50 according to NREB). They are multiplied by solar’s generation, before they are spread over the country’s total consumption, resulting in what are known as retail impacts – the increase per kwhr that each customer pays.

The volume produced (139 284 MWH) by solar – less than half a percent of total demand – is so small that when you blend it with nationwide consumption (67,743,000 MWH), you turn the wholesale costs of 17.95 pesos to a mere 2.28 centavos at retail.

FiTs are not the same as FiT impacts; FiTs are what developers get paid with, earning a return on investment of less than 10%, while impacts are what customers pay. FiTs are wholesale rates, while impacts are at retail. FiTs are in terms of kwhr produced; while impacts in kwhr consumed. FiTs are the cost of production while impacts are the price of consumption. The contrasts are stark.

And yet almost every sweeping, agonizing, hand-waving, sound bite you hear these days is focused on the 17.95; with the rate impact cavalierly set aside. Mark Twain wrote, “…..it ain’t what you don’t know that gets you into trouble, it is what you think you know for sure but just ain’t so that does.”

The rate impacts are like universal charges, which the EPIRA law, since its birth in 2001, has been imposing on every kwhr used for a wide variety of reasons: for missionary extensions, for covering NAPOCOR’s humongous stranded debt, for stranded contract costs, etc.

Universal charges for missionary extensions have varied from 2 to 9 centavos. There is no telling how these numbers will fluctuate in the future and at what level, but they will not remain fixed. On the other hand, you can be sure the rate impacts will go down as avoided costs go up due to fuel costs’ secular rise and as total consumption rises; and FiTs for new projects will be brought down by technological advances.

Our experience in running oil fired units as standby in the past 16 years show that oil prices are on a marked upward trend of about 9 % to 12% a year; but who is to say what they will be next year, or 4 years from now. You can be sure they will go up in the long term. And yet one of the complaints against renewables is that their rates are fixed for 20 years! They will decline in real terms, in fact. Why is that a problem?

About 39 centavos per kwhr have been applied for by PSALM at ERC to cover the stranded debts of the government; and these, if approved, are expected to run for some years.; down to a little above 3 centavos if spread over fifteen years. Again, there is no telling that these will be the last of its kind, but you can be sure they will not be fixed. We have not heard much complaint against these charges.

These subsidies pay for sunk costs, for the outrageous profligacies of the past; while in return for rate impacts, you get an increase in much- needed generating capacity!

You cannot repeat it often enough: solar’s impact on retail when 100mw shall have been reached within 3 years, is 2.28 centavos per kwhr. These are figures of NREB, the agency tasked by Law to determine and recommend them to ERC: solar’s retail impact is lower than those for wind (3.74), biomass (4.12) even if its FiTs are the highest. So, doesn’t that make solar among the cheapest? It sure looks that way to me.

But it is unfair that solar’s rate impact is lower than the others, reflecting a smaller allocation than is warranted, if a kwhr from wind or hydro or biomass is not any different from that of solar. Is solar’s energy any less green than the others? A better allocation is to have all technologies impose the same impact, and then arrive at their targets. A spread sheet model will show that solar will still have the smallest allotment.

This is what “technological neutrality” exemplifies– the intent and spirit of the RE Law that wants emerging technologies to be “accelerated” in development. The Law does not prioritize technologies on the basis of first costs; so the near felicitous phrase of “ plucking the low hanging fruit first” simply doesn’t apply and is arguably illegal.

The impacts are due to on an assumed avoided cost of 4.50 pesos per kwhr, the weighted costs of WESM. They should really be the marginal cost of units replaced by each technology. If you think 4.50 is too low with regard to solar, you are quite right.

If the total cost of running an oil fired unit in today’s prices is about P10.50 per kwhr, that brings the impact down to about 1 centavo per Kwhr, and the subsidy to less than 1.2 billion pesos initially for a 100 MW target – subsidies which are expected to come down as the rise in prices of fuels outstrip 50% of the country’s yearly CPI.

But there are benefits: the taxes and fees that 400 million US dollar investments will add to the national treasury; and the number of new jobs generated. What about the benefits of clean air and a pristine environment, the dampening of extreme weather patterns, and the reduction in public health hazards? While these are hard to value, they are known to economists as positive externalities; they are anything but trivial, and you ignore them at your and the future generation’s peril.

Future projects will carry lower FiTs due to what is known as “degression”, reflecting the steady drop in costs caused by the fierce competition among suppliers to meet rising demand; while prices of oil and coal will continue to shoot up. The cost curves are expected to cross one another but it’s anyone’s guess when that will happen. You can make this happen sooner by adding to worldwide demand for solar now, however small your contribution. When that happens, solar shall have started to subsidize oil fired units, every time oil is used to meet daytime demand.

What about the suggestion that these subsidies are better spent on education, public health, or poverty alleviation? It is completely beside the point. The subsidy is taken from an industry, which just about touches every pocket in the economy, so each centavo collected must go to the development of renewables. That is what the Law says. If you can’t get these subsidies from some other means, why should you worry about their alternative uses?

The time to debate over the wisdom of subsidies from every kwhr consumed is long over; a feed in tariff scheme is prescribed in the Law, in case you haven’t read it. The interminable, festering discussion over renewables cannot go on because the debate was settled by the passage of the Law 3 years ago.

Energy independence, the use of inexhaustible resources, economic growth without harming the environment: these are some of the Law’s policy declarations. Are these goals still debatable? We have listened long enough to the vast opinionated erudition of many from all sides. Isn’t it time to get past the nasty habit of shoot-from-the-hip, plucked-from-the-air, top-of-the-head theorizing or conjecturing unsupported by any evidence or the RE Law; past the expensive biases of motor-mouthed media reps masquerading as news reporters? Isn’t it time to get on with the Law?

RAMON C ABAYA

CEPALCO

Coffee Dream, Cagayan de Oro’s gourmet coffee shop

2011-11-15T03:08:26Z

Coffee Dream is one of CDO`s gourmet coffee shops. They offer homegrown coffee, at affordable prices, on relaxing afternoon after work or hang out with family or friends over your favorite cup of coffee – chilled blends, cold coffee and freshly roasted coffee. Try their strawberry chill for non-caffeine lovers and frothy caramel their best seller. -foodandrecipes.tumblr.com-

Just recently, I have tried Coffee Dream’s frothy caramel, one of their bestsellers, along with deliciously mouth watering pastries like their berries (Strawberry cheesecake and Blueberry cheesecake, I prefer the blueberry over strawberry!) and the choco muffins (with a taste of rum and chocolate chips, a blend of sweet and bitter taste). A perfect match on my afternoon delight while waiting for SM’s Christmas Centerpiece Light Up Ceremony with Sitti.

A variety of coffee chilled blends, cold coffee and freshly roasted coffee to choose from. I will try their green tea chill, a healthier option, on my next visit to SM Cagayan de Oro City.

Gondola Lift (better known as cable car) at Dahilayan Adventure

2011-11-14T05:04:11Z

Dahilayan Adventure will soon have a gondola lift (better known as cable car) as one of their tourist attractions.

A gondola lift is a type of aerial lift, normally called a cable car, which is supported and propelled by cables from above. It consists of a loop of steel cable that is strung between two stations, sometimes over intermediate supporting towers. The cable is driven by a bullwheel in a terminal, which is typically connected to an engine or electric motor. They are often consideredcontinuous systems since they feature a haul rope which continuously moves and circulates around two terminal stations.^[1]Depending on the combination of cables used for support and/or haulage and the type of grip (detachable grip vs. fixed grip), the capacity, cost, and functionality of a gondola lift will differ dramatically. – Wikipedia

Interior of a gondola lift station

The gondolas are made by CWA, an Austrian carriage company and the hardware was made by Doppelmayr, a world renowned builder of ropeways, lifts and funiculars. The gondolas are six place and equipped with auto door closers. – Elpidio Paras

This is the Gondola lift that will soon be installed at Dahilayan Adventure

Huge bullwheel drive for the Doppelmayr chairlift that will transport zipliners to our new jump off points and attractions. – Elpidio Paras

A bullwheel is a large wheel on which a rope turns, such as in a chairlift. In that application, the bullwheel that is attached to theprime mover is called the drive bullwheel, with the other known as the return bullwheel. – wikipedia

With all these technologies, I can’t wait to go back to Dahilyan Adventure for more more fun and adventure. Indeed an adventure! Soon, Kagay-anons won’t be going abroad to experience such because we all have it here in Mindanao.

Iligan Bloggers Society 5th MBS 2011

2011-10-27T02:08:24Z

Along with CDOBloggers, I will be joining the 5th Mindanao Bloggers Summit in Iligan City because I believe in their advocacy that is to promote sustainable lifestyle. Mindanao Bloggers Summit will poster the theme “One Green Mindanao: Mobilizing Bloggers to Promote Sustainable Lifestyle” which they will be discussing the issues on environment and to help formulate a better Mindanao through the promotion and the adaptation of a sustainable lifestyle. The theme is also in line of what CDOBloggers have been supporting, the Solar Energy for Mindanao.

Mindanao is in crisis for power energy. Power shortages is predicted to be due next year due to the increase demand of power. Though we have hydro power plants in Mindanao, we are in dire need of an “alternator”. This has been proven by one of Mindanao’s distribution utility, CEPALCO. CEPALCO has both hydro and solar on which they alternate both sources. When there’s greater volume of water due to constant rain, they will be using the energy coming from hydro and if there’s a lot of light, they will be using the energy from solar. The issues on Solar Energy is that it’s costly. But actually it is not! A fellow blogger, ladysoda, explains the concept of FIT-ALL:

FiT-All (Feed in Tariff Allowance) – The FIT-All is considered most relevant among the calculations because this manifests the pass-on effect on the consumers’ electricity bills. ALL electricity end users are required to pay a uniform Peso/kWh charge as a feed-in tariff allowance (FIT-All), which will be placed in a fund from which the payments to renewable energy developers will be paid. This FIT-All, which will be determined annually, will appear as a separate line item on customers’ bills.

It simply means, even if the people of Mindanao chose to do NOTHING, Mindanao consumers will still end up paying for those Renewable Energies already established as it is a SHARED cost. So why are we all just sit around opposing the generation of a Solar Energy in Mindanao while other consumers from Luzon and Visayas are enjoying their own Renewable Energy with us here in Mindanao paying at the same time?

Come to think of it, the cost of Mindanao electricity usage through Solar Energydivided by the whole Electricity consuming population of the entire Philippines? Do you still think it’s expensive? We are just talking about the cost issue here. How about its effect to our failing environment? That’s a HUGE bonus! So why say no to Solar Energy in Mindanao? I am a definite YES!

Globe also supported the MBS event. Globe has also launch m.globe, your one-stop portal to the ultimate mobile web experience. M.globe provides real-time update on your browsing experience. Accessing m.globe is free

subscribers can also register to mobile internet promos to enhance their surfing experience. Globe has a variety of mobile browsing plans for every user, from Prepaid PowerSurf 15 which is available at P0.25 per minute, Postpaid PowerSurf 99 which gives users 50MB of mobile data for only P99 or the surf-all-you want plan SuperSurf 999 good for a month’s use. Text SURF to 8888 to knowmore about the different browsing plans from Globe.

Start enjoying m.globe on your phone now by textingM.GLOBE to 2910 or visiting http://m.globe.com.ph on your mobilephone.

Alcohol Free Facial Products

2011-10-13T14:47:22Z

Are you looking for an alcohol free facial products? Well, me too. I’ve stumble upon Celeteque while having my groceries at Robinsons where I was looking for a facial wash to replace my empty tube of facial wash. What catches my attention was the facial moisturizer. I have been looking for a facial moisturizer since my skin has been dull and dry lately. Then at the label of this product it says it’s best to use with the facial wash and the toner. So there I’ve bought the products without doubt.

Celeteque Hydration Facial Wash – Gentle exfoliating facial wash with Dual Vitamin Nourishing beads. Non-comedogenic which means it does not clog your pores, hypo-allergenic which suits sensitive skins and fragrance free

Reasons to love this facial wash by Issay Tabisaura:

it is an effective facial wash that promises in giving you a clean, smooth and softer skin.
It removes deep-seated dirt on your face ( which is proven by whenever I use toner right after using Celeteque facial wash, I don’t see any dirt on the cotton anymore.)
It also has Natural Moisturizing Factor that seals in moisture to our face so that our skin will not look dull and dry.

Celeteque Hydration Alcohol-Free Toner with Witch Hazel Extract for sensitive to dry skin

Celeteque Facial Moisturizer with triple moisturizing systems – water-based and oil-free

I’ve tried it today and well the facial wash was not foamy like the products I’ve tried on. Indeed its with beads and smells like chamomile. The alcohol free toner is just right not a strong scent while the facial moisturizer was water-based with soothing and refreshing effect.

As to the effects, I’ll have my feedback after a week. If there are no changes or effects, without doubt I’ll quit using it. This product has a lot to prove to me as I have faith on what it says on its label and reviews I’ve read.

Holding Grudges

2011-10-12T05:18:30Z

Have you experienced imagining killing a person? Well, yeah killing like stabbing with a scissor on his back. I’ve had that same thinking in High School when I get pissed of by her. Good thing though my imagination has not turned into a reality. I’ve kept holding myself actually restraining would be the right word. From that experience, I’ve met ‘holding grudges‘. Instead of taking a life in my bear hands I would have rather hold on to the grudges. But still it ain’t healthy. Years passed, I’ve still remember that feeling. It was scary ‘coz I could imagine something that heinous.

To actually overcome it, one must accept that there really is a person that gets into your nerves. The way they talk, how tactless they may be, how ironic that person can be. I’ve read from a saying that says “When you don’t like about something, change it. If you can’t change it, change the way you think about it.”. Yeah like I could really change a person. However the best option would be to change the way I think about the person. Hmmm, sounds easy but really can you instantly change the way you think about them when in fact it was implanted in my hypothalamus, a rock of my limbic system that this person annoys me.

There are lots of ways to channel your anger, resentments and all. But I believe the safest way to do is to write about it, divert your thoughts, listen to music and shout it out. It would be much helpful to lend some ears, just ears not mouth. Oh well, people have different ways to cope with it. It is just a matter of acceptance.

Hopefully you enjoyed reading my sentiments and one way or the other learned from it. Have you met hypothalamus and the limbic system? Take time to learn it, you’ll understand yourself much better.

CDOBloggers Blogging Workshop 2011

2011-10-08T13:21:28Z

CDOBloggers will again hold another blogging workshop. Come and join us now! Amazing prizes awaits you from our different sponsors. Please see details below.

- Know more about Blogging
- Market your blogs/online businesses
- Have the weapon to work conveniently from Home

Blogging Workshop Topics:
- Public Relations & Blogging by Maria Irene Aserios
- Web/Internet Marketing by Al Jedidiah Aquino
- Social Media, SEO by Venus Mabale & Eldie Aban
Ticket cost: Php 300.00 (price includes a meal for one)

Limited seats. We can only accommodate 75 heads. Grab your tickets now!

SPONSORS:

- Google Swags from Aileen -

CAKES and PASTRIES in Cagayan de Oro City

2011-10-07T15:37:02Z

Are you looking for birthday cakes, wedding cakes, cupcakes, any special cakes and cakes for all season in Cagayan de Oro City? D’Cakes, delightfully sweet creations, offers you a cake which they do what you want. D’Cakes Cafe is opening tomorrow at Tiano Dolores Street, Cagayan de Oro City.

I have befriended the owner of D’Cakes a few months ago when I saw a friend tag on the pictures of the cake she made. It was a wedding cake I inquired about. Though my wedding will be a few more months from now I was hunting for a best wedding cake yet within my budget.

For ORDERS just CALL and TEXT US at these numbers:+639057559783 and (088)3232009

Email address: dcakes2011@yahoo.com

Here are some photos downloaded from FB Fan Page.

A Date with Chef Hasset Go

2011-10-05T22:37:11Z

Chef Hasset Go is the youngest Pastry Chef in the Philippines and one of the Chef Instructor at Culinary Institute of Cagayan de Oro. He also owns MedChef, homemade pastries and sweet desserts.

It was not exactly a date date but was able to meet and shake hands with him last Sunday, October 2, 2011 at Culinary Institute of Cagayan de Oro, 3rd Floor, Legacy Building, Antonio Luna St., Cagayan de Oro City. An ”ALL YOU WANT BARS” workshop by Chef Hasset Go himself. He shared his famous recipes like Chocolate Revel Bars, Macapuno Graham Bars, Butterscotch Bars, White and Dark Chocolate Loaded Brownies and Food for the Gods.

Culinary Institute of Cagayan de Oro is the first culinary school in Northern Mindanao and is committed to offer a comprehensive Culinary Arts Program of international standards in Mindanao with Manila based Chefs to conduct special sessions; geared to provide education to those seeking advancement in their professional and personal lives.

“ALL YOU WANT BARS” workshop by Chef Hasset Go. My favorite among his famous recipes is the Chocolate revel bars, the yummiest, mouth watering bar ever. The next was the Food for the Gods, I can taste the rum in it a blend of sweetness and bitterness.

Chef Hasset Go is holding an event in Cagayan de Oro City, a bizarre to showcase a Chef’s Specialty. So calling chef’s in Cagayan de Oro you may wanna join the first bizarre for an All Chef’s Gourmet Food Market.

What: All Chef’s Gourmet Food Market

When: Will kick off end of the Month of October 2011 and end until December 2011

Where: City Ampitheater, western tip of Divisoria along Burgos Street

Cebupacific Seat Sale Alert

2011-10-07T15:27:12Z

Seat Sale Alert!!!

Be the first Juan to book! Log-on to Cebupacific at 12:45am. October 8, 2011.

—————— CEBUPACIFIC AIRLINE TICKET SEAT SALE ———————

Another seat sale alert as of October 5, 2011

Fly domestic for as low as P88 for Cagayan de Oro to Iloilo etc (Travel: Nov. 1, 2011 to February 29, 2012).

Fly International for as low as P1,288 for Manila to Kota Kinabalu (Travel: Nov. 1 to Dec. 31, 2011).

Book Now!

Check out their website for more info.

Have you been planning to have a vacation, visit a relatives, unwind? Cebupacific offers a seat sale now.

Fly for as low as P 488 from Cebu to Davao, etc.

P 688 from Clark to Hongkong, etc.

Travel Period: November 1, 2011 to January 31, 2012. Book now at CEBUPACIFIC AIRLINES.