The call for the Philippines to achieve energy security and independence has been one of the national issues that has been pushed to the forefront. As the energy industry is faced with the challenge of supplying steady power to communities across the Philippines given the fact that the pandemic has been affecting all the industries everywhere.

Benchmarking from other environmentally-conscious nations, the Philippines is gearing up to the bandwagon as it sees the necessity and wisdom to adapt from fossil fuel to renewable energy (RE), by developing our own indigenous energy resources to create a more sustainable, independent industry that is not dependent on imports.

Realistically speaking, the challenge to achieve the transition to renewable energy is beyond reach if there would be no collaboration between the private and public sectors. This was the consensus reached during the virtual forum, “Philippine Energy Transition: A Race through Economic Disruption, Technology Shifts and Innovation,” held by the Philippine Energy Independence Council (PEIC) in partnership with the European Chamber of Commerce of the Philippines (ECCP) last January 21 with valuable input from various speakers to present the bigger picture of how the country can advance and achieve the indigenous energy and sustainability goal.

For Senator Sherwin Gatchalian, Chairperson of the Senate Energy Affairs Committee, he cited a Bloomberg report showing that from 2004-2020, industries around the world have invested US$4.569 trillion in investing in alternative sources of energy: hydrogen; carbon capture and storage (CCS); energy storage; electrified transport; electrified heat; and RE.

The Senator, who has authored such bills as the Murang Kuryente Act and the Electric Cooperatives Emergency and Resiliency Fund Act, affirmed that the Philippines can be successful in this endeavour through targeted regulations and the passing of related laws. The Philippine Congress has augmented the Department of Energy’s (DOE) budget by PHP40M to effect the change, and research into the kinds of policies that will manage the process without affecting the consumers negatively. In exploring other energy sources such as nuclear and geothermal, he said that the government “can assist the private sector in developing certain technologies. We can come up with different models where we can share the risks.”

Meanwhile, DOE Usec. Jesus Christino Posadas affirmed that his organization is “seeking development of all indigenous energy resources while working to increase the effectiveness of the country as an energy destination.” One of its priorities over the next two decades is to realize the target of 34,000MW by the year 2040. The opening of the geothermal sector to foreign investment is a step towards this direction. About 22 predetermined areas covering geothermal resources had been identified and presented to stakeholders. 

Sharing his thought was PEIC President Don Paulino, who pointed out that the campaign for a clean secure energy future should integrate the diverse aspects of the industry ecosystem to make them “more aligned, integrated, and complimentary to one another.” At the same time, the learning of the industry players will become broader, empowering them to adapt with greater agility. That integration can prove pivotal to the PEIC’s Philippine Energy Plan which is aiming for 44,671 MW of RE, or 42.9% of the industry production,  by 2040. 

PEIC Director Amor Maclang posed her challenge by venturing beyond industry alignment into engaging a wider audience, describing it as “the bridge between the industry, government, and the public. How do we make ideas of energy efficiency more snackable for a generation that is very detached? How do we engage the youth, academe, and millennials, because right now, discourse about this issue remains insular?”

For starters, PEIC Chairman Lt. Gen. Rozzano Briguez (Ret.) revealed that the organization is strengthening its links with the DOE and the University of the Philippines to come up with data that can build up public interest, and especially draw in more investors.  He stressed, “We must work hand in hand with decision-makers to find sources and to realize our goal of energy for all. A robust and resilient energy system will enable us to bounce back during unforeseen scenarios.”

Michael Velasco, Vice President of Business Development and Industry Affairs of Vivant Energy Corporation, said that his company is exploring the combination of  renewable and conventional energies with the overall objective “to improve livelihood, and the adaptation of RE in offgrid, poor, and remote communities.”

Jon Russell, Chief Commercial Officer and Executive Vice President of the First Gen Corporation, added that energy security can reduce the widening gap between the rich and the poor. He recommended studying natural gas as its development on a “flexible basis can help decarbonize the Philippines.  Gasoline has lower cost and can be implemented quicker. It can switch on and off quickly, and can support renewables. Gas is a transition fuel. Other technologies such as hydrogen will help to decarbonize gas.”

Industry leaders from Mindanao see energy independence as crucial to harnessing the potential of the region.  Romeo Montenegro, Asst. Sec. and Deputy Executive Director of the Mindanao Development Authority, said that the region’s 7.1% growth rate, which is higher than the national growth rate of 6.7%,  will require the electrification of all its towns and cities. He shared, “We are targeting 100% electrification all over Mindanao by 2030. Right now, there are only 12-18 hrs of power in the capital towns of Tawi-tawi, Jolo, Sulu, and Basilan. But some areas only enjoy 4-6 hours. Transition to cleaner energy will have to start in these very areas.”

Jaime Jose Aboitiz, Executive Vice President and Chief Operations Officer of the Aboitiz Power Corporation, expressed his belief that technology over time will resolve these issues and effect the transition the country needs:  Rooftop solars can bring in more power stability. Digital simulation of a power plant is a tool both for monitoring efficiency as well as workforce training. Anton Perdices, COO of the Aboitiz Distribution Unit, added the need for a “self-healing network which basically takes care of itself. It automatically switches off and does reroutes.”

At the end of the forum, Aboitiz captured the sentiments of the speakers viewing both the potentials and challenges that will present themselves during transition:  “It’s really an all-nation, all-hands-on-deck type of deal. There’s so much that’s required from the private sector and academe. We have to work really hard to remove roadblocks so opportunities open up for us to go forward into a renewable and more sustainable energy.”

The Philippine Independence Energy Council (PEIC) is composed of business leaders and private individuals who share the vision of an energy-independent Philippines that is able to produce enough of its own energy to meet its own demands and substantially decrease dependence on other countries. It continuously initiates public discourses on what must be done to move government decision-makers to beef up our energy reserves and trigger discussions that can lead to concrete steps towards the goal of energy independence. For more information about PEIC – activities, membership — pls follow their facebook page or email at energyindependenceph@gmail.com

By Victoria “NIKE” De Dios

Realizing the growing demand and diminishing energy resources of the country, the Congressmen, belonging to the “power block” of the House of Representatives, urged for the extension of the Malampaya gas-to-power project, to prevent a looming energy crisis.

In yesterday’s virtual Kapihan ng Samahang Plaridel, entitled Energy Independence Crucial to National Security, several industry leaders and congress officials came together to discuss this looming energy crisis and possible solutions to address it. “We need to fast-track the development of our energy supply,” asserted Lt. Gen. (Ret.) Rozzano Briguez, President and CEO of The Philippine National Oil Company-Exploration Corporation (PNOC-EC). “We envision exploring new oil and gas sources to augment our Malampaya reserves.”

Members of the House of Representatives have filed for House Resolution No. 1063, which calls on the implementation of national defense and security policies to attain independent and sustainable energy supply, while also focusing on extending the life of the Malampaya plant.

“Malampaya plays a vital role in energy security,” affirmed PHILRECA party-list Rep. Presley C. De Jesus. At the same time, he challenged: “Is it enough? That’s the question. Natural gas is very affordable and dependable. Energy independence would help us sustain our rapid development.”

Indeed, the issue of energy security has long-term repercussions that go beyond the power industry. “Energy security is a crucial factor in protecting and upholding our national sovereignty, so we can keep domestic economies running at full power,” said APEC party-list Rep. Sergio C. Dagooc. He pointed out that, with COVID-19 causing a strain on the global supply chain, it is no longer sustainable to keep relying on foreign fuel sources.

Another congressman, Ako Padayon party-list Rep. Adriano A. Ebcas gave an urgent forewarning: “Unless the government quickly addresses all these energy issues and rising demands, the Philippines may face an acute power shortage. These power shortages can have far-reaching effects—from access to energy and high energy cost to livelihood, education, and of course, national security.”

At the same time, Philippine Energy Independence Council Director Don Paulino pointed out why the speedy acceleration of the development of more energy resources can become an investment in the country’s future. He said, “This country will have further growth, social mobility, and a deeper impact on society if we have energy security and independence. Energy demand will increase as the Philippines continues to grow. We need two to three times the supply we have right now.” He added: This brings opportunities—now have an opportunity to develop our indigenous, renewable, and clean energy and transition from coal. This will result in more efficient and affordable energy.”

The continuous operations of Malampaya is a critical one to ensuring a sustainable, uninterrupted supply of energy. Currently, it powers 30% of the country, especially Luzon, with natural, indigenous gas, and accounts for 98% of domestic oil and gas production. As one of the most successful Public-Private Partnership (PPP) arrangements in the Philippines, it proves the country’s potential for energy security and independence.

Close collaboration between the public and private sector is of prime importance, especially when it comes to effective energy exploration and development, emphasized Quezon City Rep. Godofredo N. Guya from Recoboda Partylist. He said, “Now is not the time to get carried away with legal battles. We must tap the private and public sector to improve capacity and supply, and attract more investors.”

Speaking on behalf of 121 electric cooperatives around the country, Atty. Janene Depay Colingan, General Manager of PhilReca, echoes the urgency of energy exploration efforts. “Electric cooperatives are exerting effort in energizing far-flung areas,” said Colingan. “But we can only achieve energy security with the partnership of all sectors in energy.”

The achievement of national system-wide resilience is a matter of national collaboration. All the major players involved can work together to ensure that no sector or area in the country is lagging when it comes to the supply of power and energy, but the pressure to act immediately is on.

Rep. Dagooc also reminded everyone of one reason why the House of Congressmen filed the Bill on Renewable Energy:  “The purpose why we filed this bill is for the House of Representatives to review our energy policies so we can transition to energy independence.”

It is imperative for the Philippines to achieve energy security and independence is one of the national issues that COVID-19 has pushed to the forefront. The energy industry is faced with the challenge of supplying steady power to communities across the Philippines as the pandemic continues to impact industries everywhere. Critical to fulfilling this objective is the collaboration between the private and public sectors.

Their joint plans were unveiled in the online forum, Innovations in Energy: An Energy Secure, Energy Independent Philippines, organized by the Philippine Energy Independence Council (PEIC) last July 10. Leading the discussion were Department of Energy (DOE) Secretary Alfonso Cusi; The Philippine National Oil Company-Exploration Corporation (PNOC-EC) President, Lt. Gen. (Ret.) Rozzano Briguez; AC Energy President and CEO Eric Francia; PEIC Director Don Paulino and PEIC founding member and Director Amor Maclang.

One conclusion that the forum reached was that tapping indigenous sources can support the development of renewable energy and decrease the Philippines’ need to depend on other oil-producing nations. During the talk, Briguez expressed his commitment to utilizing indigenous energy sources. “Indigenous resource development and coal exploration can contribute to energy security,” he said.

“For decades, the Philippines has relied on global markets to meet the energy demands of the country,” emphasized Maclang. “But if there’s one industry that could really benefit from innovation, it’s our energy industry.” By tapping indigenous sources, the country can support the development of renewable energy and decrease the need to depend on other oil-producing nations. Not only will the Philippines be able to achieve sustainable and more accessible power, it can also better withstand trials that are thrown its way—whether it’s a pandemic or geopolitical movements affecting the global supply chain.

The PNOC-EC’s rigorous experience in oil exploration has positioned it strongly to lead the nation into energy sufficiency. They have conducted explorations on-shore, such as in Cagayan, Central Luzon, and Cotabato, as well as off-shore in Northwest and Southwest Palawan. From 1976 to 2015, PNOC-EC has also drilled 28 onshore wells all over the country. “We want to be a leading exploration company by 2030, have a global reach, and contribute to the country’s growth,” shared Briguez. “The presidential mandate is to focus on exploration, mainly upstream.”

As further pointed out by Cusi, “The Philippines has the highest renewable energy mix in Southeast Asia.” At present, 30 percent of the country’s power needs are already supplied by natural gas from the Malampaya Deep Water Gas-to-Power project, which has been drawing natural gas from beneath the seafloor of the West Philippine Sea since 2001.

Its benefits have since extended beyond drawing natural gas — from helping to supply a stable supply of power in the country, to assisting several communities in environmental programs. As one of the most successful Public-Private Partnerships (PPP) to date, the Malampaya project presents a viable model for the industry to innovate as the search for more indigenous sources continues.

Close collaboration between the public and private sectors is an essential component in this quest for effective exploration and energy security. Over the years, the government has made various strides towards this goal, such as the DOE’s commitment to the Renewable Energy Act and increasing renewable energy service contracts and capacity.

Francia explained how the market framework in the Philippines works to the industry’s advantage. “We have an open, competitive market,” he elaborated. “There’s no need to rely on the government. Other markets like Vietnam and Indonesia need to depend on government-controlled corporations before the private sector can invest.”

Recently, the DOE has also been aggressively pushing strategies to attract investors, including the major possibility of allowing 100% full foreign ownership for renewable energy. “For years, investors have been shying away from the Philippines due to issues such as our electricity capacity, but our renewable resources are reliable and flexible sources have yet to be maximized,” revealed Cusi. “Gamitin po natin ang sariling atin.”

On that note, PNOC-EC is positioning itself to be a partner of choice for investors. Envisioning the Philippines’ energy future, Briguez detailed other significant steps that the PNOC-EC is preparing for, such as: increased production in at least two underground mines, the resolution of maritime disputes between China and the Philippines, and new oil and gas discoveries to augment the Malampaya reserves.

“There are more opportunities than challenges,” clarified Briguez. “[Soon], we can get more data from sedimentary basins to make them more marketable for prospective investors to enter the market. But for now, we focus on upstream exploration of petroleum and coal. This is our way of serving our country well.”

Although most of the future seems uncertain because of the pandemic, what remains true is that we need to ensure an energy-secure Philippines. “We should not relax, we should continue to build supply,” stated Cusi. COVID-19 has brought to light the vulnerabilities of our current energy systems, but it is also an opportunity for the industry to spark hope among communities, with indigenous resources like solar, natural gas, and geothermal at the core. But as iterated by Paulino, “We can only do this if we do it together and try to advocate and follow what a carbon economy could look like for the Philippines in the future.”