DOE: Power rates steady; fuel supply under close watch

Energy Secretary Sharon Garin said Monday that ongoing renewable energy projects are expected to generate 1,471 megawatts of power across 21 developments, a move aimed at stabilizing electricity prices by boosting supply and reducing reliance on fuel.

Speaking at a Senate hearing, Garin said the Philippines remains minimally dependent on diesel for electricity, accounting for only 3% of the energy mix. However, she noted increases in other fuel sources, particularly coal, which saw a 20% to 30% rise, described as a reported tripling.

Garin also said the Department of Energy (DOE) has designed a system to limit the use of expensive fuels such as diesel while maximizing sustainable energy sources, including the Malampaya gas field.

The Deep-Water Gas-to-Power project is a joint undertaking between the Philippine government and private sector partners. It is led by the DOE and developed and operated by Prime Energy on behalf of joint venture partners Udenna Corporation and the Philippine National Oil Company-Exploration Corporation.

Malampaya plays a key role in reducing oil imports, providing a stable supply of cleaner energy from a domestic resource and supplying up to 20% of the country’s energy needs.

In a previous Senate hearing, Acting Budget Secretary Rolando Toledo said the government has consolidated about 210 billion pesos in continuing appropriations, including around 10 billion pesos from the 2025 budget and roughly 200 billion pesos under this year’s General Appropriations Act.

Meanwhile, some oil suppliers were reportedly unable to confirm supply commitments, but officials said government-to-government transactions provided greater assurance, helping stabilize fuel supply.

“So far, it has been effective, with a smooth flow and only minimal quantities experiencing issues,” Garin said.

The DOE said it is closely monitoring updates on fuel price rollbacks and watching for potential supply issues to identify alternative source countries early.