MANILA, Philippines — It was surprising to read that both the Board of Investments (BoI) and Meralco have called for a delay in the implementation of the Renewable Energy Act, one of the most promising pieces of legislation to meet the country’s energy needs which was enacted in 2008. The development of the Philippines’ renewable energy sources – such as solar, wind, and geothermal – will be a major source of foreign investment.

This move also contradicts a government policy. The Aquino administration has already announced that it would push the development of renewable energy sources, and invited foreign investors to enter the industry.

And the idea that renewable energy costs too much is short-sighted and does not take into account the actual record of renewable energy projects that have been developed in Europe, most notably in Germany. Besides initially creating jobs, and having a positive effect on climate change by reducing carbon emissions, renewable energy sources pay off, financially, in the long term.

The European Chamber of Commerce in the Philippines and the European National Chambers issued a joint statement to the effect that the request to delay implantation of the Renewable Energy Act would adversely affect future foreign investments, send the wrong signal to potential investors, and suggest that the government is not consistent and may approve a policy and then backtrack on it later.

The European Chamber of Commerce statement also warned the government that if it changes its policy, it loses the trust of foreign investors, not only those interested in the power sector, but also in other sectors, such as agri-businesses.

The focus should be on the long-term gains rather than short-term rates. Since the country has already announced that it is developing renewable energy projects, which provide higher efficiency as well as reduced carbon emissions, the focus should be on the jobs that will be created by renewable energy development and the increased efficiency which will, in the long term, bring down costs to the consumer.

As a final point, the European Chambers suggest that instead of delaying the implementation of the Renewable Energy Act, energy conservation and energy efficiency measures should be strictly practiced to reduce costs.