Energy storage technologies like pumped storage hydro… stabilize supply fluctuations.
There’s nothing more renewable or reusable energy source than water. It is clean and does not harm the environment, unlike most fossil-based fuels used in firing power plants.
The Philippines has relied on hydro-electricity dams to provide electricity for decades. The government, aware of its strategic role in the power mix, has been pushing for this type of electricity-generating plant to boost our energy security.
The recent successful privatization of the Caliraya-Botocan-Kalayaan (CBK) hydroelectric facility in Laguna typifies government’s resolve to attract investments and expand the footprint of hydro as an energy source.
The privatization highlights the critical and strategic role of pumped storage hydroelectric technology in securing our nation’s energy independence and sustainability.
Pumped storage hydroelectricity functions like a giant rechargeable battery. It involves two water reservoirs situated at different elevations. During periods when electricity demand is low or renewable energy production―such as solar and wind―is abundant, excess electricity is utilized to pump water from the lower reservoir to the upper one.
When electricity demand surges or renewable energy production declines (during the night or cloudy, windless days), the stored water is released back downhill, powering turbines that generate electricity.
Department of Energy (DOE) Undersecretary Alessandro O. Sales recognized the unique strategic value of pumped storage hydro projects and provided targeted incentives to attract robust private-sector participation.
Pumped storage hydro can serve as an essential balancing mechanism, smoothing out fluctuations in demand and intermittent renewable energy generation, thereby ensuring grid stability and reliability. Energy storage technologies like pumped storage hydro, thus, stabilize supply fluctuations.
The DOE has incorporated pumped storage hydro into its national energy outlook, projecting new facilities to begin operations between 2028 and 2030, aligning seamlessly with the broader Philippine Energy Plan.
By storing energy generated from domestic renewable sources, we fortify our resilience against volatile international energy markets, geopolitical uncertainties and volatile fuel prices.
Pumped storage hydro has been around for 150 years―proving its long-term value and reliability in powering nations.
In this context, the DOE’s completion of its Third Green Energy Auction (GEA-3) deserves recognition. The landmark event marks a significant step toward achieving the ambitious goal of increasing the country’s renewable energy share to at least 30 percent―or potentially even higher―before the end of President Ferdinand Marcos Jr.’s term in 2028.
The results of GEA-3 signals the current administration’s unwavering commitment to advancing the nation’s green energy agenda.
Olympia Violago Water and Power Inc. secured the 600-MW Wawa Pumped-Storage Project in Rizal, while Ahunan Power Inc. was awarded the 1,400 MW Pakil Pumped-Storage Project in Laguna.
Pan Pacific Renewable Power Philippines Corp. accepted awards for three major hydroelectric projects in Apayao: the 150 MW Gened 1 and 150 MW Gened 2 impounding hydroelectric power plants and the 2,000 MW Maton-Pumped-Storage Hydropower Project. Additionally, Coheco Badeo Corp. confirmed its acceptance of the 500-MW Kibungan Pumped-Storage Hydropower Project in Benguet.
Pumped storage hydroelectric power plants are poised to become a central pillar of the Philippines’ energy landscape.
They represent a strategic enabler of a clean, flexible and resilient power system, capable of seamlessly integrating renewable energy sources and ensuring grid stability.
Recto’s tax role
Finance Secretary Ralph Recto is on the receiving end of unfair and irrational criticisms over the implementation of the Capital Markets Efficiency Promotion Act (CMEPA).
Mr. Recto, to be fair, did not author the law. He was not even Finance Secretary when it was passed. He is just guilty of doing his job―implementing a law that Congress passed in 2023.
CMEPA imposes a flat 20-percent final tax on interest income from long-term bank deposits that are pre-terminated before five years. It is not a new tax burden.
Before CMEPA, a 20-percent tax was already imposed on deposits of less than three years, with slightly lower rates for those held between three and five years. The law merely streamlined what was already in place. It simplified the system, plugged loopholes and aligned it with longstanding tax policy.
Yet, Recto is getting all the brickbats. We cannot and should not condemn public officials for carrying out what is mandated under the law.
It is Congress that passes laws and the executive department implements them. If the Department of Finance (DOF) had not enforced CMEPA, it could open it and its chief to legal liability.
The proper recourse for those displeased with CMEPA is to call up their representatives in Congress and push for amendments.That is how things are done in a democracy. It is absurd to demonize those who fulfill their constitutional mandate.
Aside from implementing the country’s tax laws, old and new, the DOF has maintained fiscal discipline, worked to reduce debt, avoided new burdensome taxes for the poor, boosted investor confidence and contributed to the country’s economic stability. Recto deserved those credits as one of the country’s chief economists.
E-mail: rayenano@yahoo.com or extrastory2000@gmail.com
