Energy Secretary Raphael Lotilla called for “innovative financial solutions” to address the cost of the country’s energy transition journey, which is “not going to be cheap and neither is it going to be achievable overnight.”
“This is a transition that requires adjustment on the part not only of the government, but particularly of the private sector who have to be nimble in adjusting to the different developments, whether they are technological, financial or regulatory in nature,” Lotilla said at the EJAP-Aboitiz Power Renewable Energy Forum on Friday.
He said the burden of high cost of energy transition should not be transferred to the Filipino people who are already paying among the highest power rates in Association of South East Asian Nations (ASEAN).
“At the same time, we also cannot ignore the efforts of other developing countries, particularly ASEAN neighbor economies which are strategically placing themselves in a position to cater to the global economy with a growing demand for clean energy,” he said.
“And so, our energy transformation journey involves the availability of innovative financial solutions and access to transition finance,” the energy chief said.
Lotilla thanked the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission who are on the sustainable finance taxonomy body for the Philippines for collaborating with the agency on informing the banking and financial sector of the opportunities for renewable energy investments.
He said energy transition is filled with uncertainty, and it is the Department of Energy’s duty to lay the groundwork for preparedness for adjustment.
Lotilla said the long-term Philippine Energy Plan takes note of global changes and adjustments in the overall global and local environment.
“Technological changes, financial innovation and behavioral adaptation will be taking place and diversifying our energy sources provide us with flexibility and agility to choose the most advantageous technologies that will enable our country’s continued and resilient economic development,” he said.
