INSTITUTIONALIZING OF DEMOCRATIZED POINT-OF-USE ELECTRICITY

GENERATION AND UTILIZATION FOR NEW RESIDENTIAL HOUSES

By: Frederick Madrid
(Submitted as an assignment for EgyE 201)
September 2018

Rationale

Look at your mobile phone. That piece of technology is one of the basic technology that
every human-kind should have in order to facilitate easy communication. Imagine, what if mobile
phones were not invented? What if we still use centralized long distanced wired telephones or
telegraph to receive information from other places? Imagine if the idea of democratized point-of-use
communication was not realized? Now, imagine again what if electricity is available right in your own
home and you are the one generating it and it’s up to you on how you spend that. Just imagine
eliminating the long transmission lines like what happened when mobile phones got trendy and use
of long distance telephone lines are in decline.

We may be very far away into fully realizing that goal of independence from centralized
electricity generation. But with the rise of renewable energy technologies and continued decline on
its capital cost, thanks to continuous effort on research and development and cost effective
production strategies, setting target outcomes can be realized if collective effort of multi
stakeholders to institutionalize simple RE strategies, incentivize the individual generation of RE
technology, clever marketing strategies, financial and technical support for homeowners and
encourage healthy competition amongst RE technology service providers. Achieving this goal would
be to promote and develop primarily simple and low maintenance RE technologies available such as
solar and wind. Simple and low maintenance as for the primary reason that its point-of-use and
manage by individuals who might have little to no knowledge on RE technology.

Strategies
Target Outcome

Research and
Development

Financial Assistance

Business and market development

Policy

Image source:
http://windturbineshome.net/wp-
content/uploads/house-with-solar-and-wind-
energy.jpg
Policy
- Start with the residential sector especially those who still to be built
- Set policy that all new residential houses shall have at least X % of its computed electricity
consumption be generated through renewable energy with either Wind or Solar energy
sources
- Set favorable tariffs to promote healthy market for renewable energy technology service
providers
- Incentivize or provide of tax paybacks to Eco friendly houses
Business and market development
- Aggressive promotion of renewable energy technology to end users
- Promotion of electricity generation and utilization as an integral part of houses with
emphasis on “Electricity as a need not a luxury”
- Provide technical assistance on designing, installation and maintenance of installed RE
technology
- Set-up strategic service hubs to cater a general wider population
Financial Assistance
- The Home Development Mutual Fund should also cater and consider the cost for installation
of RE technology for new constructed residential units as part of the building it self
- Service providers should also provide installment plans for interested home owners
- Emphasis on Return of Investment (ROI) for interested home owners
Research and Development
- The government should allocate funding for universities, other government institutions and
grants to research and develop current RE technology
- Conduct area assessment and application of RE technology in underserved areas of the
Philippines
Framework

Democratized point-of-use electricity Generation and Utilization for New Residential units

Service Provider Government

- Promote RE services and products - Green energy campaign
Social
- Promotion of RE tech
-Develop simple mode of payment with - Set-up financial support systems to
balanced ROI homeowners like including it in loan
applications at Home Development Mutual
Economic
Fund.
- Incentivize the generation of energy
through RE technologies by individuals
- Accreditation from the government - Institutionalize that new residential units
- Help realize the target of the government should have an installed capacity from RE
Institutional
of x% from their electricity need
and Legal
- Administer accreditation of service
providers and monitor prices
Skill and - Technical support and warranty to home - Allocate technical capacities to oversee
technical owners service providers and market trends
Know How
- Implement new technologies in the field - Support research and development of
Technology of solar and wind to its users universities and partner government
Dev’t agencies to improve solar and wind RE
technologies