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Monday, December 16, 2024

PH-Canada partnership for a just, sustainable energy transition

“Canadian knowledge in nuclear energy, grid modernization, and renewable integration could be the boost we need”

Electricity costs in the Philippines have always been a thorn in the side of consumers.

Our reliance on imported fossil fuels has made power expensive and unpredictable, a struggle that hits low-income households the hardest.

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A 2023 study by International Energy Consultants found that electricity markets burdened by high prices are typically reliant on fossil fuel imports. In contrast, countries with affordable electricity often benefit from nuclear power or renewable energy sources​.

The conversation around this persistent issue was front and center at the recent Philippine-Canada Forum on Energy Transition, hosted by the Stratbase Institute and the Canadian Embassy.

At the event, experts and stakeholders made it clear that integrating renewable energy and nuclear power is not just a lofty goal but a necessary step toward easing the financial strain on ordinary Filipinos​.

During the forum, Department of Energy Undersecretary Rowena Cristina Guevara spoke candidly about the programs designed to empower consumers.

The Green Energy Option Program allows end-users to choose renewable sources, enabling greater consumer participation in the energy transition​. Then there’s Net Metering, which lets small-scale users install solar panels and sell excess power back to the grid, effectively cutting down their electricity bills.

These initiatives pave the way for a cleaner, more decentralized energy system, making sustainable power more accessible to all consumers.

Yet, transitioning to renewables is not without its challenges.

As Prime Infrastructure’s Janssen Dela Cruz noted, the current grid needs to evolve. The Philippine Energy Plan calls for connecting 4,000 to 5,000 megawatts of renewable capacity annually—a massive leap from the current 400 to 500 megawatts.

Without substantial investment in grid flexibility and battery storage, integrating renewables will remain an uphill battle. Jonathan Back from ACEN rightly emphasized that storage solutions are essential not just for energy reliability but also to make better use of our existing transmission lines​.

Jimmy Villaroman, President of Aboitiz Renewables, highlighted another significant hurdle: integrating renewable energy into the grid demands massive investments in transmission and distribution infrastructure, as well as advanced storage solutions.

These investments are critical to ensuring a resilient and reliable energy system. Without them, the transition to clean energy remains a half-measure, unable to fully deliver the promised benefits to Filipino households.

The stakes are high for low-income families who stand to gain the most from affordable electricity. DOE Undersecretary Guevara highlighted how expanding electrification for underserved households can drastically improve lives.

Access to electricity for 16 to 24 hours a day can increase average household incomes by up to 56.3 percent and expenditures by 59.4 percent​.

The evidence is clear: when villages gain electricity, incomes and expenditures rise between 38 percent and 42 percent, driving economic growth and improving quality of life​.

Canada, with its expertise in energy transition, offers a valuable partnership. Paul Thoppil, Canada’s Indo-Pacific Trade Representative, reiterated his country’s commitment to helping the Philippines navigate this transition.

Canadian knowledge in nuclear energy, grid modernization, and renewable integration could be the boost we need. As Jean-Sébastien Fabry from Natural Resources Canada mentioned, collaboration is key to solving these complex challenges.

This pursuit of a balanced energy mix that leverages renewable energy and nuclear power is a critical step toward achieving affordability, reliability, and energy security for the entire country.

While the transition poses significant challenges, the collaborative efforts of the government, private sector, and like-minded partners such as Canada provide a strong foundation for success.

With the right investments and policies, the Philippines can chart a future where reliable and affordable electricity is no longer a dream but a standard utility for all consumers.

But collaboration must translate into action. Investments in grid infrastructure, storage solutions, and decentralized energy sources need to happen now, not later.

The Philippine government’s target of 35 percent renewable energy by 2030, 50 percent by 2040, and beyond 50 percent by 2050 is ambitious but achievable if backed by strong policy and international cooperation.

Plans to add 1,200 MW of nuclear capacity by 2032 must also stay on track to diversify our energy mix.

Ultimately, this transition is not just about cleaner energy or international commitments. It’s about making life easier for the millions of Filipino families who, month after month, must allocate a bulk of their income for expensive electricity and live with what’s left for basic needs.

Expanding access to affordable electricity will uplift entire communities, reduce inequality, and create a fairer society where no Filipino is left in the dark.

As hard working, tax paying, consumers, we deserve no less.

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