Metro Manila (CNN Philippines, August 9) — Energy Secretary Raphael Lotilla bared his plans to address the looming power crisis, vowing to develop indigenous energy sources amid the country’s dependence on imported fuel supply.
Data from the Department of Energy (DOE) showed 56.8% of the country’s primary energy supply in 2021 was mostly imported coal and oil, while 43.2% are locally sourced.
“The longer term solution, however, is to move from over-dependence on imported sources and to go for more indigenous sources. This is not going to happen overnight. But we have to start working on it,” he said in a virtual press briefing Tuesday.
Lotilla admitted the country is “insecure” in terms of supply and must work on self-sufficiency.
Several senators earlier said they want to reexamine power outages and high electricity rates in the provinces, seeking an immediate solution to what Sen. Raffy Tulfo described as an impending crisis.
Lotilla underscored the need for long-term solutions, including tapping into the country’s “rich potential” in renewable energy sources and pushing for missionary electrification in off grid areas.
“The amount of subsidy has been inadequate and therefore the National Power Corporation has run out of funds. We have to admit that, there is such a problem. Therefore, the Energy Regulatory Commission for its part, is running at full speed to help alleviate that,” he said.
Senators also called for a review of the Electric Power Industry Reform Act (EPIRA) to lower rates in the provinces.
Lotilla believes the senators are looking at reforming electric cooperatives, which is included in the agenda of President Ferdinand Marcos Jr.
Nuclear power regulatory framework
The Energy chief said he is open and will review nuclear power options, which the President mentioned during his first State of the Nation Address in July.
However, Lotilla emphasized the need for a regulatory framework and discussion with communities before tackling the construction of new plants.
“One of the most important points is to address the concerns of the host communities. We would have to strengthen the trust and confidence of our people in the ability to regulate safely and to put up necessary standards,” he said.
The Energy chief reiterated the President’s call for the country to abide by the revised policies and standards of the International Atomic Energy Agency, citing the Fukushima nuclear disaster in 2011.
He also questioned why the Philippine Nuclear Research Institute under the Department of Science and Technology promotes and regulates nuclear power.
Coal moratorium
Lotilla said a moratorium on building new coal-fired plants will stay under his leadership. The Duterte administration imposed the unprecedented ban in October 2020.
“The moratorium on the building of more coal fired power plants has been set. I don’t believe in completely changing policies and therefore sending mixed signals to investors,” he said.
Coal dominates the country’s energy mix, accounting for 37.1% of the primary supply in 2021, most of which are imported.
Lotilla said market behavior shows that investors and insurers do not want to support new coal plants, given the rising prices of fuel in the global market.
RELATED: Environment advocate: Definite policy needed against coal power
https://www.cnnphilippines.com/news/2021/4/22/coal-power-policy-needed.html
Malampaya deal
On concerns surrounding negotiations regarding the Malampaya Gas Field project, Lotilla said it’s premature to make any comments until all the legal and policy issues are resolved.
The secretary said he had directed the state-run Philippine National Oil Company-Exploration Corporation (PNOC-EC) to tackle these matters in order to meet with their timelines.
“While I am the chairman of PNOC-EC, it would not be good for me to be participating in the deliberations on this and then reviewing myself later on. I would have to get PNOC-EC to address these issues and President (Franz) Alvarez is heading this effort,” he said.
With the Malampaya service contract set to end in 2024, Lotilla said they are looking into other oil and gas exploration investments in fields nearby.
RELATED: Enrique Razon buys Malampaya operator from Dennis Uy’s Udenna
https://www.cnnphilippines.com/business/2022/7/29/Enrique-Razon-Prime-Infra-Malampaya-Udenna.html
