Because of the one-after-the-other series of strong typhoons that hit the Philippines in the last six months, electric cooperatives sustained at least PHP 3.16 billion or (USD 65 million) in infrastructure damages over the last six months. This is according to research by BusinessWorld and the National Electrification Agency (NEA). With their overall working capital funds amounting to P10.1 million (USD 206,000), it will not be easily possible for the electric cooperatives to immediately recover and address the P730 million in damages.
Based on a short report by the Institute for Energy Economics and Financial Analysis, “the increase in both intensity and frequency of climate-induced disasters further underscores the importance of decentralized modular renewable energy generation and the need for power sector resilience.”
Given the increasing availability of alternative, renewable energy sources, the country’s electric cooperatives would do well to engage in a transformational shift and improve their ways of serving their member-customers. Electric coops can work with solar power companies with a strong social good agenda like WeGen to build a solar program. They can start, for instance on rooftop solar installations because these are becoming more and more common as more Filipinos are becoming more interested and aware of the basics of solar generation.
Making the shift to solar energy is now easier given the declining costs of solar PV technology and other changes in the solar industry. These changes present challenges, but they also present new opportunities for electric cooperatives. They will have more options to offer their member-customers, and enable, facilitate, and engage them as the latter will have additional choices for energy supply and
delivery.
Electric cooperatives can offer valuable options for solar energy and provide cooperative-provided solutions. In offering new solutions, programs and policies should incentivize solar energy use reasonably and fairly. They should ensure that they will not shift costs to other member-customers.
The early development of residential solar programs can give electric cooperatives with new opportunities to engage with their member-customers as they all increase their knowledge and experience when it comes to utilizing solar PV technologies.
The following are suggested key considerations for cooperatives:
1. Put together rate structures that will equitably compensate solar member-customers for net excess generation.
2. Ensure that solar member-customers pay their share of system costs.
3. Implement standards for solar technologies to interconnect to the system safely and reliably.