The trade-off for the steady growth that the country has been posting, which for the first quarter was a respectable 5.7 percent, is the need to provide for the increasing electricity demand to keep industries humming.
In June last year, the Department of Energy (DoE) indicated the Philippines needs an additional 8,000 megawatts (MW) of energy capacity by the end of President Ferdinand “Bongbong” Marcos Jr.’s term to meet the projected 25,000-MW peak demand in 2028.
The situation is far from dire despite the daunting numbers. At least 4,000 MW of power projects will come online or about half of the projected cited requirement this year.
Unlike other commodities, electricity cannot be stored unless high-capacity batteries are available such as those built for renewable energy projects. At least 590 MW of battery energy storage system will come online this year, with 32.42 MW already operational.
The number of power plants and their capacities would have to approximate the projected demand.
The surging growth of the country, thus, makes it harder for the DoE to track the expected power needs.
Some 835.888 MW are in the testing and commissioning stage and would be a welcome addition to the grid this year.
DoE figures show the power projects represent a mix of renewable and conventional sources.
Of the additional capacity this year, baseload plants comprise around 678.06 MW while mid-merit plants will total 1,320 MW and the rest are peaking plants of 2,164.92 MW.
Peaking plants are those that can be deployed only during periods when the demand exceeds the grid’s capacity. However, the take-or-pay provisions in the power contracts require these generating companies to be paid even if their operations are idle.
Of the expected capacities, 4,030 MW are in Luzon, 80.25 MW are in the Visayas and 52.50 MW are in Mindanao.
Based on DoE’s timeline, 1,224.655 MW will operate anytime until June, 1,352.167 MW in the third quarter and 1,571.154 MW in the fourth quarter.
The completion and commercial operation of 1,984.775 MW of electricity from solar farms is expected within the year.
About 966.294 MW are expected to come online by June 2024, while 494.888 MW are under testing and commissioning but the DoE said this can already be tapped to augment supply.
Potential hurdles to meeting the projected additional supply will have little to do with technology as it will be mostly about securing permits and addressing right-of-way issues.
It is unfortunate that such avoidable issues impede the progress of energy projects and become the cause of additional costs for proponents which, in turn, undermine investor confidence.
Expediting these processes is the burden of local government units which need to put in their share in enhancing the investment climate and fostering economic growth and well-being of constituents in their areas.
“Timely development of energy projects is vital to meeting our nation’s energy needs,” Energy Secretary Raphael P.M. Lotilla said. “We call upon the LGUs and other government agencies concerned to proactively engage with energy project developers, prioritize the issuance of permits, and address right-of-way issues promptly to facilitate the seamless implementation of energy projects.”
The challenge to keep the energy supply stable has become more daunting with the dry spell that has affected the output of hydroelectric plants that are considered among the baseload energy providers.
Watching from a distance, Filipinos should not be experiencing an energy problem if each official in government puts the public welfare above all selfish or parochial considerations.