Industry players and government regulators should harness cost-effective liquefied natural gas or LNG as the so-called "transition fuel" in the near term to gradually displace coal and complement the variability of renewable energy.

Speaking at a recent energy forum, Aboitiz Power Corp. Chief Finance Officer Liza Montelibano reiterated that the transition to clean energy should be gradual and well thought out. Otherwise, it will result in higher power prices.

Montelibano pointed out that utilizing the present supply of natural gas, which is relatively cleaner than burning coal, to buy time and keep the grid stable while renewable and low-carbon technologies are being developed.

"The realistic pace to do transition is underscored by the available technology that allows you to do it reliably and affordably. Given what is available today, we believe what is realistic is a practical and gradual approach that will allow for technology development," Montelibano said.

Locally, the Malampaya project is the only local facility that uses indigenous natural gas to reduce the country's oil imports. It has been powering up to 20 percent of Luzon's total electricity requirements. It supplies natural gas to power four power generation plants in Batangas with a combined capacity of 2,011 megawatts or MW.

Meanwhile, several projects, including First Gen Corp.'s integrated LNG and regasification terminal in Batangas province, are underway to easily bring in low-cost LNG from abroad into the country.

The LNG facilities are a significant source of fuel diversification to complement the efforts of the Malampaya consortium to optimize the sustainability of the remaining indigenous gas in the Malampaya-Camago reservoir.

The government set the target of a 35 percent share of renewable energy in the country's energy mix by 2035 and increased it further to 50 percent by 2040.

However, it is still notable that despite an aggressive stance on clean energy utilization, the Philippines still heavily relies on coal.

AboitizPower, which presently has the largest and most diversified local renewable energy platform in terms of installed capacity under its operational control, aims to support the government's goal by investing P190 billion until 2030 to have a portfolio of 9,200 MW evenly split between renewable energy and thermal sources.

Close to 1,000 MW of renewable energy projects — including wind and solar farms and more geothermal capacities — are currently in the company's pipeline.