Hanoi (VNA) - The Philippines cansave up to 200 million USD per year and build a more reliable energy supply formillions of its residents by replacing diesel generators with renewablesources.

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

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

However, renewable energy has not become popularin the Philippines for many reasons, including outdated regulations, said thereport.

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

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

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

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