IN what appears to be an admission of an imminent power crisis, the Department of Energy (DOE) urges local government units to reduce electricity usage by 10 percent to save costs and lessen the demand for power supply in the country.
During a forum organized by DOE and the United States Agency for International Development (USAID) in Taguig, an Energy official cited the urgent need for the LGUs to implement energy-efficient measures in an effort to make a significant impact on energy demand nationwide.
DOE Senior Science Research Analyst Anabel Elmaga said there are thousands of LGUs, with some also operating hospitals and schools, and that a 10 percent drop in electricity consumption will have a huge effect on the country.
“Itong mga LGU ang dami nila minamanage na mga buildings and facilities, so the impact is big,” Elmaga said.
She added lessening demand for power will also help the country’s power sector and the savings raised can be used for other projects.
Consider Solar Energy
At the forum, representatives from various LGUs shared their existing energy-saving practices consistent with locally crafted and adopted energy plans.
Iloilo Provincial Board Member Rolando Distura mentioned that about 13 LGU-operated hospitals in the province have solar rooftops and that they are also pushing for the usage of renewable energy and implementing energy-efficient measures in local government offices and other buildings owned by the LGUs in the province.
Angono LGU for its part said that the municipal government’s electricity bill has been slashed by as much as 20% since they adopted the use of solar panels to power up the municipal hall.
Municipal administrator Alan Maniaol said that the LGU had been spending an average of P200,000 to P240,000 a month on electricity bills prior to using solar energy.
Daylight-Saving Time
Sometime in March this year, President Ferdinand Marcos Jr’s economic managers urged various government agencies to adopt work hours from 7 am to 4 pm and to limit air conditioning temperature in offices to 25 degrees Celsius in what appears to be an earnest effort to conserve energy amid the rising cost of power.
No less than Finance Secretary Benjamin Diokno admitted that the energy cost in the country is deemed the most expensive in Southeast Asia. Hence, the need to adopt what appears to be the same measure that was used by four previous Presidents – including the late strongman, father, and namesake of the current President.
Referred to as daylight-saving time (DST), the scheme was adopted during the presidency of Manuel L. Quezon in 1936-1937, Ramon Magsaysay in 1954, Ferdinand Marcos in 1978, and Corazon Aquino in 1990.
Local Conservation Office
Local officials in attendance likewise urged DOE to formally include an energy efficiency and conservation (EEC) office in every LGU so that they can institutionalize the office and provide regular positions as well.
Interestingly, the government doesn’t have an EEC office.
In response to the proposal, Elmaga said discussions are underway with the DOE, the Department of Budget and Management (DBM), the Civil Service Commission (CSC), and the Department of the Interior and Local Government (DILG).
“We see the need to have an EEC office sa lahat ng mga LGUs. With that office, makakapag-focus sila sa function nila and ma strengthen ang implementation ng Energy Efficiency and Conservation office sa LGU sector,” said Elmaga adding that such measures will help reach the goal of reducing 10 percent electricity consumption compared to the baseline year of 2015.
Tax Perks for Using RE
The Board of Investments (BOI) for its part said that they are willing to provide more incentives to registered projects that will be supplying their own electricity by putting up their own RE facility.
Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said that Memorandum Circular (MC) 2023-006 updated the guidelines on giving incentives for energy efficiency and conservation (EE&C) projects under the special laws listing of the 2022 Strategic Investment Priority Plan (SIPP).
Rodolfo noted that self-financed energy efficiency projects (EEP) are entitled to the income tax holiday (ITH) incentive and duty exemption on the importation of capital equipment, raw materials, and spare parts or accessories.
“The ITH incentive shall be limited to the prescribed ITH entitlement period under the CREATE (Corporate Recovery and Tax Incentives for Enterprises) Act or until the recovery of 50 percent of its capital investment, excluding the cost of land and working capital of the registered EEP, whichever comes first,” the MC reads.
Clean Energy Transition
The climate advocacy group Climate Analytics believes that the Philippines can eliminate coal-fired power by 2035 and significantly reduce gas-generated power by 2040.
In a report, the Berlin-based organization said the Philippines should swiftly phase out coal-fired power and almost entirely phase out gas-fired generation within the next two decades, a move it deems both feasible and beneficial for the economy, potentially creating over a million jobs by 2050.
Additionally, the report recommends that the Philippines surpass its current plans and prioritize achieving a higher share of renewable electricity generation by 2030.
Currently at 22%, the government aims to increase the share of renewable energy (RE) in the power mix to 35% by 2030 and 50% by 2040.
Climate Analytics also emphasized the feasibility of aligning the power industry with Paris Agreement goals, calling for an expedited coal phase-out and a significant expansion of renewable energy coverage by 2050.
100% Renewable Energy
The advocacy group likewise sought the government’s transition of its power sector to near-100% renewable energy with international funding and supportive policies, reducing dependence on expensive coal and gas imports while potentially creating a million jobs by 2050.
The report also underscored the need for a well-defined plan for the expedited coal phase-out and an extensive expansion of renewable energy to cover 99% by 2050.
As of July 2023, the Philippines has an installed coal-fired capacity of 12,472 megawatts (MW), with abundant renewables potential estimated at around 1,200 gigawatts (GW).
According to them, the Philippines will need an additional 152 terawatt-hours by 2050 to meet future electricity demand, assuming the successful phaseout of fossil fuels.
The analysis added that the country’s substantial renewable energy potential, particularly in rooftop and open-field solar photovoltaics, with estimated solar energy resources reaching 58,110 MW.
To date, the DOE has already awarded an estimated 350 solar service contracts with a potential capacity of 14,786 MW peaking this June. In total, 1,087 RE contracts have been rewarded with an equivalent total potential capacity of 113.5 GW.
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