Stakeholders called for increased investments in the Philippines’ energy sector, saying it stands at a critical crossroads as it grapples with rising demand, aging infrastructure and a continued reliance on coal despite reforms such as the Electric Power Industry Reform Act (EPIRA) and the Renewable Energy (RE) Act.
Speaking at the “Strategic Energy Management: Unlocking Savings & Sustainability for Industries” Masterclass, Carlos Lorenzo Vega, president and chief operating officer of First Gen Energy Solutions, addressed the ongoing Energy Trilemma—balancing security, affordability and sustainability—24 years after EPIRA and 17 years after the RE Act.
Vega noted the troubling rise in coal’s share of electricity generation—from 7 percent to 62 percent—which he said signaled the sector’s struggle to meet sustainability goals.
“The RE Act was meant to accelerate renewable energy adoption, yet our grid remains vulnerable and reliance on fossil fuels continues to rise,” he said.
While the number of Retail Electricity Suppliers (RES) has grown from 18 in 2013 to 55 today, Vega said capacity expansion has not kept pace with rising demand.
“The prices we see today reflect the delay in regulatory execution and market competitiveness,” he said.
He urged immediate investment in renewable energy and grid modernization, warning that without these actions, the country risks supply shortages that could stifle industrial growth and economic stability.
Vega called for cost-reflective pricing mechanisms, stronger regulatory execution, and incentives for renewable projects to ensure a more resilient energy market.
The expert presentation on EPIRA set the stage for a pivotal panel on the Retail Competition and Open Access Act (RCOA), a key reform provision. The discussion brought together thought leaders from the Energy Regulatory Commission (ERC), retail electricity suppliers, consumers and SolX Technologies.
The panel explored the latest developments in the RCOA framework and its far-reaching impact, highlighted in the 2024 Retail Market Assessment Report.
The report noted a 14-percent difference between retail generation rates and distribution utility rates, resulting in P16.76 billion in savings.
A 12-percent increase in eligible contestable customers—now 59 percent registered—and an 80-percent surge in participation in the Green Energy Option Program (GEOP) point to a growing demand for competitive, sustainable energy choices.
“RCOA is a game-changer—it empowers businesses to control energy sourcing, cutting costs and enhancing market competition,” said Matt Levin Tan, chief operating officer of SolX Technologies.
Emmanuel Sator said FAITH Colleges’ experience transitioning from the captive market to the contestable market.
“As an educational institution, energy is not our core expertise. SolX Technologies was instrumental in supporting our shift to a new energy supplier, even post-pandemic. Their guidance gave us confidence to transition to the GEOP,” Sator said.