In a recent event hosted by the Stratbase ADR Institute and CitizenWatch Philippines at the Asian Institute of Management, the spotlight was on advancing energy security through a balanced and sustainable approach.
Variable renewable energy: Solar power plants, such as AboitizPower's 159-MWp Laoag Solar Power Plant in Aguilar, Pangasinan (pictured), are often paired with flexible sources like natural gas power plants to ensure a continuous and reliable power supply. | Photos: AboitizPower
The conference, titled "Advancing Energy Security: Fueling Sustainable Progress with Liquefied Natural Gas," saw key industry figures, including AboitizPower Chief Corporate Services Officer Carlos Aboitiz, advocating for an "all-options-on-the-table" strategy to address the Philippines' pressing energy needs.
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Carlos Aboitiz emphasized the importance of a comprehensive strategy that balances traditional energy capacities, emerging technologies, and renewable energy sources to ensure grid stability and meet the growing electricity demand.
"In the energy sector, we provide value to society by providing energy when it’s needed at a reasonable cost and with the least adverse environmental impact," Aboitiz stated.
He acknowledged the inherent challenges in this balancing act, where prioritizing one objective often means compromising another.
The Philippines' energy scenario, marked by erratic power supply, unsubsidized rates, and the aspiration to become an upper middle-income economy, was contextualized by Aboitiz.
"We’re experiencing energy insecurity as evidenced by the many red and yellow alerts. This is the result of demand growing faster than expected, constrained supply growth, and an inadequate transmission and distribution infrastructure," he outlined.
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Highlighting liquefied natural gas (LNG) as a crucial bridge fuel in the energy transition, Aboitiz explained its role in integrating more renewable energy sources into the grid and supporting the country's economic progress.
"Gas is flexible, able to easily ramp up or down as needed, and therefore is a more cost-efficient alternative for mid-merit energy needs and some ancillary services," he noted, further emphasizing that LNG helps diversify the fuel supply, reducing dependence on coal and managing associated risks.
AboitizPower's recent acquisition of a stake in Chromite Gas Holdings, which includes plans to purchase a majority interest in two gas power plants with a combined capacity of over 2,500 MW, underscores its commitment to LNG.
The company also invests in renewable energy, aiming to build 3,700 MW of new capacity by 2030, aligning with the Philippine government's target of a 35% renewable energy share by that year.
Aboitiz underscored the necessity of a diverse energy mix to achieve the goals of energy security, affordability, and sustainability.
"Not one technology is going to solve all these problems to achieve all those objectives. So, we have to look at it within the context of a larger energy mix and specific country context," he added.
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AboitizPower, now the leading power producer in the Philippines, continues to invest in both renewable and traditional energy sources.
With close to 1,000 MW of disclosed projects in solar, wind, geothermal, hydro, and battery energy storage systems, the company is well-positioned to support the country's energy transition.
"Everything we do must first be with the consumer in mind — the Filipino in mind, fundamentally — and with that I think we will be successful in both advancing the human transition and the energy transition," Aboitiz concluded.
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