0 Comments
The Shift to Clean Energy
It’s about a transformative shift to cleaner energy technologies in the Philippines to make our electricity supply more reliable, create jobs, and reduce poverty. At the 2024 Pilipinas Conference in Makati, Energy Secretary Raphael Lotilla shared valuable insights saying, “We have to go through a transformation of the energy sector and this is going to take time, definitely not overnight.” Slow and steady efforts—these are what we need to exert to help secure the country’s energy future.
Energy diversification is a central element for economic growth in pursuit of sustainable development goals. Lotilla explained, “There are, of course, uncertainties, and in order to address these uncertainties — as well as which technologies would be available and whether financing would be available for them — is to diversify our sources of energy.” This entails balancing a mix of renewable sources like solar and wind alongside things like coal and natural gas while exploring new ways of generating energy.
A Holistic Approach to Energy Transformation
AboitizPower Chief Finance Officer Sandro Aboitiz said there is a need to develop a complete strategy in terms of supply, networks, and demand. “The journey is not going to be linear. It’s extremely complex, and it ultimately requires transforming the entire energy system,” he explained. The heart of this strategy involves getting consumers involved in sustainable solutions through things like rooftop solar systems. “Part of our focus is ensuring that we can help the demand side — through rooftop solar, for example—to help consumers be part of the solution as well,” he added.
The Department of Energy’s strategic roadmap has included ambitious goals. The country wants to generate more than 50% of its power from renewable sources by 2050, expand port infrastructure for offshore wind projects, and add 4,800 megawatts of nuclear capacity to its energy mix by 2020. Currently, achieving these targets requires policy, regulatory, and financial challenges to be addressed in a coordinated manner across the public, private, and other stakeholder domains.
Overcoming Reliance on Coal
The Philippines’ dependence on coal, 80% of which is sourced from Indonesia, is a vulnerability. Lotilla said that clean alternatives to fossil fuels need to be adopted, along with carbon capture and storage technology that minimizes the environmental burden of fossil fuels. “We should have an eye on carbon capture utilization and storage, as well as coal-firing technologies that would be coming online in the future,” Lotilla noted. As we continue to maintain the stability of the energy grid, this approach aids in a slow and steady shift from traditional energy sources.
In addition to transitioning from coal, the country is utilizing its untapped mineral reserves. Department of Environment and Natural Resources Secretary Maria Antonia Yulo Loyzaga highlighted the critical role of resources like copper, gold, and chromite in manufacturing renewable technologies, including solar panels, wind turbines, and storage batteries. These resources are essential for supporting the global shift to low-carbon energy solutions.
Solar power offers a large potential for development in the Philippines. Aboitiz noted that while the country has a total installed rooftop solar capacity of about 13 gigawatts, adoption is low. He asked, “Do net metering rules have to be improved? Do we need to further incentivize people to put panels on their roofs?” Overcoming these challenges will be key to realizing the full potential in renewable energy in the country.
AboitizPower leads the charge in renewable energy development and plans to add 3,600 megawatts of new capacity by 2030. Solar, hydro, wind, and energy storage systems form the company’s portfolio, indicating its capability to provide energy solutions that are renewable. Just early this year, AboitizPower purchased a share in Chromite Gas Holdings, putting it in line to provide over 2,500 megawatts of gas-powered energy to the grid.
Balancing Growth with Energy Demand
Aboitiz also shares, “The economy continues to grow at 6% a year, [translating] to about 600-700 megawatts of new baseload demand that is needed just in Luzon alone.” As the economy expands, a stable energy supply required to shoulder baseload requirements in Luzon areas is also in demand. The Philippines is ready for an energy future of balance and sustainability by fostering innovation, expanding baseload capacity, and improving regulations.
A Vision for Sustainable Progress
The Philippines’ energy transition is about more than a technological shift; it is about a pledge to sustainable progress that considers the environmental need without impeding the country’s progress toward economic development. The country is positioning itself as a leader in the global transition to renewable energy by embracing various energy sources, empowering consumers, and manufacturing even from untapped energy.
A clear plan and teamwork have made the Philippines on the way to secure a clean, more resilient energy in the future. AboitizPower’s efforts, combined with government initiatives, reflect the nation’s determination to build a sustainable energy system that benefits all Filipinos.