Diverse energy mix, expanded grid can weather 2024 headwinds, says AboitizPower CEO
MANILA, Philippines — Distribution utility company Aboitiz Power Corp. (AboitizPower) has encouraged running all available sources of power amid the expected challenges the energy sector will face in 2024.
AboitizPower cited that global supply chain uncertainties due to geopolitical events; the risk of unavailable and insufficient transmission infrastructure; and the anticipated effects of an El Niño on the production output of hydroelectric power plants are expected to tightness in the power supply.
Thus, AboitizPower President and CEO Emmanuel Rubio joined calls to run all available sources of power and be open to all technologies. This way, he said, there will be continuous provision of electricity.
“We continue to advocate for a just, timely, and well-managed energy transition that leaves all options on the table and prioritizes energy security and the alleviation of energy poverty,” said Rubio.
Energy consumption is projected to increase by 6.6% this year, requiring 600 to 700 megawatts of new or freed electricity stock.
“This substantial increase in electricity demand underscores the pivotal role of power generation, transmission, and distribution companies in meeting this need,” said Rubio.
“This requires significant infrastructure development, including constructing new power plants, expanding the grid to ensure that power reaches demand centers, and improving the services, reach, and efficiency of our electric cooperatives and distribution units throughout the country.”
Rubio said there should be sufficient transmission capacity that can support the influx of new generation capacity — mostly variable renewable energy — so that when it comes online it can immediately contribute much needed supply to the grid.
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“Finishing long-overdue transmission projects will also be very welcome as it can free stranded capacity like that in Mindanao and help support thin margins elsewhere in the country,” he added.
Currently, coal makes up about 60% of the Philippines’ generation mix.
AboitizPower reported that it has close to 1,000 megawatts (MW) of renewable energy projects in the pipeline en route to building at least 4,600 MW over the next 10 years.
AboitizPower is anticipating the launch of the 17-MW Tiwi Binary Geothermal Power Plant in Albay and the 159-MW peak (MWp) Laoag solar project in Pangasinan this year.
Also expected to come online by the end of 2024 to early 2025, are the 44-MWp Solar Plant in Armenia, Tarlac; the 85-MWp Solar Plant in San Manuel, Pangasinan; the 206-MW wind project in San Isidro, Northern Samar in partnership with Vena Energy and Vivant Energy; and the 173-MWp solar power project in Calatrava, Negros Occidental.
The utility company also expects to break ground on a number of renewable energy projects this year, namely, the 212-MWp Solar Plant in Olongapo, Zambales; the 50-MW Camarines Sur wind project which won the second round of the Green Energy Auction in July 2023; and the 102-MW Rizal-Laguna Wind Project in partnership with Vena Energy.
Rubio also said the implementation of the Ease of Doing Business Act and the Energy Virtual One-Stop Shop or EVOSS should be further improved to streamline the permitting processes for energy projects.
“Little to no red tape and a rationalized bureaucratic process is a plus for prospective investors. Attracting new investments, particularly in generation — which accounts for more than 50% of an electricity bill — increases the supply and can make electricity prices more competitive,” he said.
