Groups gaslighting energy policy — Cusi

A former energy official said efforts are underway to blame the recent spate of electricity shortfalls that triggered the red and yellow alerts of the National Grid Corporation of the Philippines (NGCP) on reforms initiated in the previous regime.

The well-funded campaign which is being conducted through disinformation in key newspapers, not in Daily Tribune, has the objective of reversing the gains from the policy changes.

Central to the demolition job is the coal moratorium and the alleged absence of new energy projects during the term of former Energy Secretary Alfonso Cusi.

The moratorium which was implemented in 2020 stands as a well-considered policy move, far from being labeled a failure, Cusi said in a statement.

Belying the claim that no new power plants were activated during the term of former President Rodrigo Duterte due to the moratorium, Cusi explained the directive affected only the “applications for greenfield coal-fired power generation facility projects requesting for endorsements.”

Cusi issued a memo called “Advisory on the Moratorium of Endorsements for Greenfield Coal-fired Power Projects in Line with Improving the Sustainability of the Philippines’ Electric Power Industry” on 22 December 2020 regarding allowing construction for “existing and operational coal-fired power generation facilities... and committed power projects; existing power plant complexes which already have firm expansion plans and existing land provision; and indicative power projects.”

Cusi said limiting the coal buildup still marked achievements such as signed and notarized acquisition of land or lease agreements with approved permits or resolutions from local government units and the Regional Development Council (RDC) where the power plants will be located.”

Regarding the claimed absence of power projects, Cusi said there were 8,867 megawatts (MW) of committed power plant projects, 4,488 MW of which are coal power plants for targeted commercial operations until 2027 when he stepped down as DoE Secretary on 30 June 2022.

“From January 2017 to December 2021, a total of 77 power projects became fully operational bringing an additional 4,990.2 MW installed capacity and 4,396.3 MW dependable capacity to the electricity network. Coal plants accounted for 74.5 percent with 17 projects,” he said.

In off-grid islands and municipalities, 35 power projects became operational adding 151.2 MW of installed capacity and 130.8 MW of dependable capacity.

Existing projects not affected

“The moratorium was issued in 2020 and would not affect the current situation. As deliberated upon at that time, the impact of this policy directive should be regularly assessed, considering the electricity demand requirements and projected developments in the power industry,” according to the former energy chief.

“If the present administration acknowledges it is a wrong policy, they should have lifted it by now,” according to Cusi.

“At the time of (the coal moratorium’s) implementation, the grid boasted sufficient baseload capacities but required greater investments in mid-merit and flexible power generation capabilities,” he said.

Recognizing the imperative of moving towards renewable energy, he said the moratorium aimed to align with this transition while upholding the reliability and stability of the grid.

He added that encouraging inflexible power generation such as coal contradicts this strategic shift.

According to Cusi, the continued flow of investments in the energy sector underscores the tangible outcomes of policy adjustments in place.

During Cusi’s term, Executive Order 30 was issued to create the Energy Investment Coordinating Council (EICC).

EICC spearheaded national government efforts to harmonize and streamline regulatory requirements in the development of energy investments.

“There is a presumption of prior approvals and Energy Projects of National Significance should be processed within 30 days from submission of complete documentary requirements,” Cusi indicated.

Otherwise, permits are required to be issued within five working days after the lapse of the processing timeframe.

Per the DoE website, as of 14 December 2021, there were 400 applications received with 149 issued certifications with an estimated investment cost of P795.52 billion which includes some projects of the NGCP.

Moreover, in March 2019, “Republic Act 11234, or the Energy Virtual One-Stop Shop Act, was signed as part of President Duterte’s ease of doing business reforms wherein it seeks to rid the energy sector of red tape, and promote faster and simplified permitting processes, encouraging competent investors to enter the market and create more sustainable and flexible energy solutions,” Cusi underlined.