QUEZON CITY, (PIA) –Department of Energy Secretary Raphael Lotilla outlined the Department’s priorities under the Marcos administration to include developing indigenous sources and possibly adopting nuclear energy as the country needs to diversify its sources of energy for the security of supply.
In his second State of the Nation Address (SONA), President Ferdinand Marcos Jr. said it is time to re-examine nuclear energy to attract more investors and ensure enough power supply. He said that cheap and reliable energy is a requirement for economic growth as it is related to the ease of doing business.
“There is some room to expand our present power supply through existing power sources, but this is only to a very limited extent. We must build new power plants. We must take advantage of all the best technology that is now available, especially in the areas of renewable energy,” President Marcos said in his SONA.
During the Post-SONA briefing at the Hilton Manila in Pasay City on Tuesday, Secretary Lotilla said the call for greater renewable energy use is being intensified with policies geared towards achieving the government’s target of increasing 35 percent of RE in the power generation mix by 2030 and 50 percent by 2040.
With an array of permits and licenses needed for RE projects, the DOE is now in the process of integrating the remaining relevant agencies and entities into the Energy Virtual One-Stop (EVOSS) System platform such as the Department of Environment and Natural Resources (DENR), National Grid Corporation of the Philippines (NGCP), Energy Regulatory Commission (ERC), Department of Agrarian Reform (DAR) and National Water Resources Board (NWRB). Additional agencies will also be included as identified under Executive Order No. 21 such as the Philippine Ports Authority (PPA), Civil Aviation Authority of the Philippines (CAAP),Maritime Industry Authorities(MARINA), and Philippine Coast Guard (PCG).
One hundred twenty-six (126) RE contracts, with potential capacity of 31,131.74 MW were also awarded by the DOE from July 2022 to June 2023. Of these, 72 contracts cover solar projects, 30 are wind, 20 are hydro, 2 are biomass, 1 ocean and 1 geothermal.
“We have also adopted a game-changing reform by opening the RE sector to full 100 percent foreign ownership. As a result, three offshore wind contracts with a combined capacity of two gigawatts were awarded to Copenhagen Infrastructure New Markets Fund, a wholly owned foreign company,” Lotilla said.
The Energy Chief said a massive power failure in the missionary areas due to higher diesel prices was avoided with the President’s approval of budgetary support and credit lines to make up temporarily for the shortfall in the Universal Charge for Missionary Electrification (UCME).
“The strict compliance of the private power generators with their maintenance schedule made our supply manageable”, the Energy Chief said.
Eight new generation facilities also became operational from July 2022 to June 2023, increasing the country’s installed capacity by 930.8 megawatt (MW) and dependable capacity by 801.6 MW. Additional capacities from the uprating of existing power plants also contributed to the increase in installed capacity totaling 1,174 MW. On the other hand, the dependable capacity increased by 1,764 MW due to the return of the service of the Ilijan Power Plant, which dependable capacity was considered zero since June 2022.
The Administration has also progressed in developing the country’s natural gas industry. With the expected decline in Malampaya production, Service Contract (SC) 38 has been renewed to ensure the field’s full production and to kickstart the timely drilling of the nearby fields.
“To make up for the shortfall in Malampaya gas, we now have two (2) reception and regasification facilities for imported liquefied natural gas (LNG),” Lotilla said.
“These facilities will support the gas-powered plants needed to stabilize the increasing volumes of variable renewable energy (RE),” Lotilla added.
“Notwithstanding all these accomplishments, there is much more to be done and the energy sector is ready to take on the challenges cited by the President in his second State of the Nation Address (SONA)”, the Secretary said.
The energy section of the Philippine Development Plan (PDP) 2023 – 2028 likewise outlines the general directions for the sector during his term and the DOE is making sure that all its planning and policies for the long term period will be embodied in our updated Philippine Energy Plan (PEP) for 2023 – 2050.
“We will continue to work on long-term solutions in accordance with the clear goals set by the President to develop indigenous sources of energy, particularly renewable,” Lotilla said.
“We commit to pursue our mission and respond to emerging energy challenges and issues to ensure sustainable, stable, secure, accessible, and reasonably priced energy,” Lotilla added. (doe/pia-ncr)
