Illustrative image (Source: Rappler)
 
Hanoi (VNA) - The Philippines can save up to 200 million USD per year and build a more reliable energy supply for millions of its residents by replacing diesel generators with renewable sources.

Modernising small island power systems with renewable enegry will supply cheaper, efficient, secure, cleaner power, according to a report released by the US-based Institute for Energy Economics and Financial Analysis and Manila-based Institute for Climate and Sustainable Cities (ICSC) on May 8.

The report revealed that since 2009, solar power costs have reduced by 90 percent while wind power costs fell 50 percent.

However, renewable energy has not become popular in the Philippines for many reasons, including outdated regulations, said the report.

Many small islands in the Southeast Asian country are not connected to the national electric grid.

About 800,000 households live on mini-grids powered by generators using diesel and oil. 

Less than 10 percent of 233 Philippine small islands have electricity 24-hours a day, while more than 70 percent have less than eight hours of electricity per day. 

According to experts, the switch to renewable energy will require at least 1 billion USD in private investment in the short-term, but it will be offset in the long term.-VNA