Stakeholders–from consumers, energy producers, and government–are all on board in the push for renewable energy (RE). But experts warn that the transition from fossil fuels to RE is not as easy as flipping a switch.
Speaking at the Cebu Business Months Summit last June 14, 2024, Chief Operating Officer of the AboitizPower Thermal Business Group Ronaldo Ramos acknowledged that there are real challenges to transitioning to renewable energy. Citing the recently launched Mindanao-Visayas Interconnection Project, Ramos said that even the 200 Megawatt (MW) project could prove insufficient if the economies of the two regions would grow over 4% annually. For comparison, he stated that Cebu posted a 7.3% growth in 2023.
While the country generates more renewable energy, existing coal-fired power plants are aging, putting stress on the energy supply. As an example, the recent power outages in Cebu were due to the forced outages and derated capacities of power plants according to the National Grid Corp. of the Philippines.
In addition to the problem of aging power plants, the country lacks infrastructure to harness more energy from sustainable sources.
“We do have an abundance of natural resources but we don’t have the infrastructure yet to be able to harness it,” Ramos said.
In response to these challenges, power experts recommend managed transition.
“We are looking at where we can, we will build renewable energy (plants) but where it is needed, we will consider gas and coal,” Ramos said. “We cannot afford to switch on and switch off… We want to address the transition in a manner that benefits the Philippines not by the demands of the western countries.”
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