Sustainable energy seen to help in economic recovery

MANILA, Philippines — The pursuit of more sustainable energy solutions such as the transition to renewable energy and use of electric vehicles (EVs) is seen helping the country sustain its path towards economic recovery, according to experts.

Asian Development Bank chief of the energy sector group Priyantha Wijayatunga said the transition to green energy is an important step to move forward, noting that the energy sector is a cross-sectoral industry that affects many aspects of a country, particularly the economy.

“The energy sector should not be taken as a single sector to proceed with development. We must consider the energy sector part of an overall cross-sectoral intervention. If you take any project, it’s cross-sectoral, not just a single energy project,” he said during a webinar hosted by Meralco.

The multilateral lender sees decarbonization efforts such as using low-carbon or clean and renewable energy sources, decreasing energy intensity, digitalization, and decentralization as the way forward.

Wijayatunga said a shift away from traditional areas of investment and towards these decarbonization aspects could help increase the country’s GDP by lowering energy costs, among others.

Many countries are switching or transitioning to low-carbon energy sources not only to meet the demand, but also to minimize the effects of climate change.

Maria Fe Perez-Agudo, president of the Association of Vehicle Importers and Distributors, said the use of EVs to support decarbonization is viable in the country, especially with the enactment of the Electric Vehicle Industry Development Act (EVIDA).

Perez-Agudo, however, said this can only work if stakeholders work together to build the right ecosystem.

She said global EV sales reached a record high of 6.9 million in 2021, but sales are still emerging in countries, such as the Philippines because the mass market has yet to afford the available models.

The EVIDA provides for a national policy framework to develop the electric vehicle industry in the Philippines, particularly for the shift to electric vehicles and for further attracting investments and creating high-value jobs.

For its part, Meralco, which serves 7.6 million customers in Luzon, said it is hoping to empower and support the Philippine economy further in its economic growth.

“We know that for the economy to prosper, we need a reliable and sufficient supply of energy,” said Joebet Isaac Del Rosario, Meralco’s lead specialist for forecasting, utility economics.

“We have been investing heavily in our electric distribution network, and we stand ready to provide the kind of electric service needed by our local companies, partners, and customers to compete in the global market,” Del Rosario added.