Energy: The fuel for economic growth

Reliable energy supply, the quality of power and the price of power are key concerns on the agenda for both private and public sector stakeholders, from Mindanao (where business is experiencing undersupply) to Luzon (where the quality sometimes suffers) to Luzon.

Meralco issued a statement that the power crisis will last until 2018, given the state and age of many power generation plants. If effective solutions are not found as soon as possible to ensure that the gap between projected consumption and production of power is met, both economic growth and social welfare will be affected.

Getting close to the end of the Aquino Administration, we strongly believe that a National Energy Council, similar to the National Competitiveness Council, will allow for a public-private partnership focusing on developing streamlined policies for all energy segments in all areas of the Philippines. The National Energy Council would ensure a comprehensive approach to the energy sector. More importantly, the National Energy Council would provide an excellent platform to lead the energy sector from this Administration to the next Administration to be elected in 2016 and which will become effective early 2017.

The tasks to be undertaken: Energy  Efficiency  as  a Priority

The benefits of efficient energy use expand beyond the measures of reduced energy demand and cheaper consumption costs. In general, energy efficiency can act as a potent tool for economic and social development in ensuring energy-system security, supporting economic growth through improved industry competitiveness, and advancing environmental sustainability through lower greenhouse gas emissions as put forward by a recent International Energy Agency study titled Capturing the Multiple Benefits of Energy Efficiency and released on 9 September 2014.

National and local governments have a critical role to play in unlocking the energy efficiency opportunity by implementing public policies and programs that encourage private sector participation and investment.

It should become a requirement for building owners to provide direct meters for individual tenants as part of their accreditation for permit application and renewal to operate in PEZA vertical and horizontal zones. This will benefit BPM / KPM companies as they can get power net of VAT if they have a direct meter with the generating or distribution company.

Optimization  of  the  Energy  Mix

An energy mix which continuously meets demand, while keeping the cost of electricity low for end consumers and being environmentally sustainable is key if the country is to continue as a competitive market for foreign investment, without the threat of energy shortfalls.

To achieve such a mix, a carefully designed energy roadmap is needed, to ensure the development of the necessary plants to meet the needs of an ideal energy mix.

Supporting  RE  utilities and technologies

Due to initial concerns on the impact of FIT-All on universal charges, the DOE set initially very low targets. The installation targets set by DOE are 500MW for solar, 200MW for wind, 250MW for hydropower, 250 MW for biomass, 10MW for ocean. Luckily, the DOE has meanwhile raised the ceilings for wind and solar but will have to raise it further. The targets should definitely exceed 1,000MW.