Ensuring the Country’s Energy Security
By Mylene I. Samonte
In the recent Management Association of the Philippines (MAP) General Membership Meeting held last August 10, 2021, Sen. Sherwin T. Gatchalian, Senate Committee on Energy Chair, was invited to talk about energy security in the Philippines.
Before dwelling on the topic, the welcome address was delivered by Mr. Aurelio “Gigi” R. Montinola III, MAP President and Far Eastern University (FEU) Chair. After this, Atty. Francisco “Francis” Lim, MAP Membership Committee Chair and Senior Legal Counsel of ACCRALAW presented the new MAP members. The following members were inducted, which brought MAP’s membership to 1,062.
- Roderick “Rick” M. Danao, PwC Philippines
- Rafael “Rafa” Fernandez De Mesa, Aboitiz Infracapital
- Atty. Maria Lourdes “Malou” P. Lim, PwC Philippines
- Roberto Jose “Boj” R. Locsin, Manila Water Company, Inc.
- William Thomas “Thomas” F. Mirasol, Federal Land, Inc.
- Oliver Mark “Olly” Riches, Michael Page Indonesia & Philippines
- Elizabeth “Liza” C. Timbol, Guagua Rural Bank, Inc.
To kick-off the discussion on Ensuring the Country’s Energy Security, an illustration from the previously published article, “Rappler Animate: Why electricity rates in the Philippines are high” was shown. However, the panelists noticed that some of the data needed updating due to some development that transpired within the sector.
Senator Gatchalian’s talk, which was focused on assuring our country’s energy security, started with a presentation on the Philippines’ power demand and supply condition from 2010–2020. It showed the following average annual growth rates: Demand, 3.97%; Supply (Dependable Capacity), 3.42%. And to look beyond, Sen. Gatchalian presented the Power Demand and Supply for 2018–2040, with highlights on the following Average Annual Growth Rates: Peak Demand, 6.58%; Coal, 6.14%; Oil-based, -2.98%; Natural Gas, 8.10%; and Renewable Energy, 8.06%; with Total Capacity Addition of 16.52%.
Furthermore, Sen. Gatchalian discussed “Energy Security: 7 Ways”
1. Attract New Supply
- Removal of red tape and barriers to entry
- Transparent competitive selection process
- Create new markets (reserve market, forward market, others)
2. Diversification of Energy Supply
- Maximize renewable energy and indigenous energy to include biofuel
- Entry of new energy sources and technology (LNG, Hydrogen, EVs, Others)
3. Undertake Aggressive Oil and Gas Exploration
4. Accountability in Transmission Projects
- Synergy between power generation planning and transmission planning
- Integrate compliance with transmission development plan in rate setting
- Penalize delays
5. Efficiency and Accountability in Power Generation
6. Synergy and Accountability in Planning
- Philippine Energy Plan
- Transmission Development Plan
- Power Development Plan
- Distribution Development Plan
- Grid Operating Management Program
- Power and Demand and Supply Outlook
7. Maximize Energy Efficiency and Conservation
Given the energy supply problem and the choice on how to proceed in an orderly transition, all concerned sectors, public and private, are talking and helping each other. The Department of Energy is also focused on executing those seven ways to assure energy security in our country. As mentioned during the talk, it is very difficult to rev up the economy without a steady flow of energy. As such, it is comforting to know that our generation and the next generation’s energy security are in place.
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About the author:
Mylene Samonte is currently the Senior Supervising Implementation Consultant of John Clements Consultants Leadership Institute (JCLI). Mylene is a graduate of Bachelor of Arts in Management major in Human Resources Management, and has a post-graduate diploma in Human Resources Management from De La Salle — College of Saint Benilde.
