Daily TribuneThe country’s energy sector stands at a critical crossroads, grappling with rising demand, aging infrastructure and a continued reliance on coal despite such reforms as the Electric Power Industry Reform Act and the Renewable Energy Act.
An official of the Lopez family-led First Gen Energy Solutions revealed that the rising coal share in the market has been detrimental to the Philippines‘ sustainability goals.
During the Strategic Energy Management Forum held on 2 April, co-hosted by SolX Technologies Inc. and the Asian Institute of Management in Makati City, First Gen president and COO Carlos Lorenzo Vega said the country’s energy sector stands at a critical crossroads, grappling with rising demand, aging infrastructure, and a continued reliance on coal despite reforms like the Electric Power Industry Reform Act (EPIRA) and the Renewable Energy (RE) Act.
In his talk on the topic “Strategic Energy Management: Unlocking Savings & Sustainability for Industries” Masterclass, Vega addressed the ongoing Energy Trilemma — balancing security, affordability, and sustainability — 24 years after EPIRA and 17 years after the Renewable Energy Act.
Vega also highlighted the troubling rise in coal’s share of electricity generation — from 7 to 62 percent — which signals the sector’s struggle to meet sustainability goals.
“The RE Act was meant to accelerate renewable energy adoption, yet our grid remains vulnerable and reliance on fossil fuels continues to rise,” he stated.
While the number of Retail Electricity Suppliers has grown from 18 in 2013 to 55 today, Vega pointed out that capacity expansion has not kept pace with rising demand. “The prices we see today reflect the delay in regulatory execution and market competitiveness,” he added.
He urged immediate investment in renewable energy and grid modernization, warning that without these actions, the country risks supply shortages that could stifle industrial growth and economic stability.
Vega called for cost-reflective pricing mechanisms, stronger regulatory execution, and incentives for renewable projects to ensure a more resilient energy market.
The experts’ presentation on EPIRA set the stage for a pivotal panel on the Retail Competition and Open Access Act (RCOA), a key reform provision.
Thought leaders from the Energy Regulatory Commission, Retail Electricity Suppliers, consumers and SolX Technologies joined in the discussion.
The panel explored the latest developments in the RCOA framework and its far-reaching impact, as highlighted in the 2024 Retail Market Assessment Report.
The report noted a 14 percent difference between retail generation rates and distribution utility rates, resulting in P16.76 billion in savings.
Additionally, a 12 percent increase in eligible contestable customers — now 59 percent registered — and an 80 percent surge in participation in the Green Energy Option Program (GEOP) point to a growing demand for competitive, sustainable energy choices.
Matt Levin Tan, COO of SolX Technologies, emphasized, “RCOA is a game-changer — it empowers businesses to control energy sourcing, cut costs and enhance market competition.”
