Gatchalian targets abolition of PNOC Renewables

MANILA, Philippines - The PNOC-Renewables Corp., the renewable energy arm of state-run Philippine National Oil Co. (PNOC), could be abolished as the renewables sector is already flourishing without its intervention, a lawmaker said.

In an interview with reporters last week, Sen. Sherwin Gatchalian said he sees the possibility of recommending the closure of PNOC-RC since the sector is already moving forward even without government entering the picture.

“I think as a policy, I don’t see the rationale why PNOC-RC should continue going into the renewable. I see it as another layer of inefficiency,” he said.

This conclusion was based on a series of hearings on the power sector conducted by the Senate committee chaired by Gatchalian.

“I was questioning the intention of PNOC-RC to go into renewables because without them, the renewable sector is already flourishing. So why are we competing with the private sector?” Gatchalian said.

In 2015, PNOC-Renewables defended its mandate to engage in electricity generation after the Department of Justice said PNOC and its subsidiaries could not engage in power generation.

In particular, the state-owned firm said its mandate to generate power by harnessing various renewable energy sources focused on off-grid areas is is in line with the policy of the government to reduce the country’s dependence on fossil fuels and achieve energy independence.

However, Gatchalian pointed out PNOC-Renewables has not really gotten into the off-grid areas—also called missionary areas—since then. 

“The private sector is not going to missionary development because it’s not yet practical. So if government goes in, it could mean more losses,” the senator said.