At the Stratbase ADR Institute’s Pilipinas Conference 2024 held in Manila Polo Club in

Makati City energy stakeholders discussed the issues and opportunities regarding the country’s transition to clean energy. 

Noting that the transition requires a complete transformation of the energy sector, Department of Energy Secretary Raphael Lotilla stressed that the change needs to be done gradually to ensure uninterrupted power. “Right now, the concern for the economy would be energy security to sustain that economic growth and to reduce poverty, which is the number one goal among the sustainable development goals,” Lotilla added.

While shifting to clean energy addresses sustainability, “the journey is not going to be linear”, according to AboitizPower Chief Finance Officer Sandro Aboitiz. According to the executive, “the  supply side, the networks, and the demand side” require transformation. 

Maximizing different energy sources

The Philippines aims to increase renewable energy use to 35% by 2030 and 50% by 2040. But while renewable energy capacities are being developed, the Department of Energy (DOE) is pushing for diversification of the country’s energy portfolio to support economic growth, reduce poverty, and ensure energy security. 

The strategic framework of the DOE also requires increasing port infrastructures for the development of offshore wind projects and the integration of nuclear sources.

Currently, the country relies heavily on coal, most of which is imported from Indonesia.

A holistic approach

Aboitiz emphasized the need for solutions from all angles. “Part of our focus,” he said, “is ensuring that we can help the demand side — through rooftop solar, for example — to help consumers be part of the solution as well.”

According to Aboitiz, as much as 13 gigawatts of renewable energy can be sourced from solar rooftops.

The importance of conventional sources of energy

Lotilla stressed the role of coal and natural gas as a complement to renewable sources such as solar and wind.

“Part of the transition is our coal power plants…Co-firing with other fuels is an important element in the transition and the early decommissioning or repurposing is encouraged as a voluntary exercise on the part of the existing coal-fired power plants,” he said. 

Increasing the baseload addresses the country’s rising energy needs while enabling the seamless transition to clean energy.

The country’s 6% economic growth translates to 600-700 megawatts of baseload demand in Luzon alone, according to Aboitiz. “We have an opportunity and the responsibility to continue building baseload projects where it makes sense to support the economic growth of the country, whether that means expanding some of our coal facilities in places like the Visayas and investing in LNG platforms,” he added. 

The Philippines’ transition to clean energy is designed using a multifaceted approach. By involving various sectors–from policy, supply, distribution, and demand–the industry can ensure energy security, cost-effectiveness, and sustainability for all. Through the integration of renewable energy sources and the strategic use of conventional energy, the Philippines is poised to make significant strides towards a sustainable and resilient energy future.