The Department of Energy (DOE) said Monday that together with the National Grid Corp. of the Philippines (NGCP), it is completing the smart and green grid plan aimed at ensuring the seamless integration of additional renewable energy (RE) capacity to the grid in the coming years.
“The smart and green grid plan would serve as the basis for the transmission development plan of the NGCP,” Energy Secretary Raphael Lotilla said during the Giga Summit on Sustainable Energy, Energy Efficiency and Future Grid 2023 at the The Fifth of Rockwell in Makati City.
Lotilla said President Ferdinand Marcos Jr.’s directive in his second State of the Nation Address in July is “loud and clear” that “RE is the way forward.”
The energy secretary said the private sector would play a crucial role in boosting RE as the central pillars in achieving sustainable energy.
He said the DOE was in the process of conducting public consultations on the draft 2023-2050 Philippine Energy Plan (PEP) which aligns with the objectives outlined in the Philippine Development Plan (PDP) 2023-2028, setting the stage for the country’s strong economic recovery and social transformation.
“The cornerstone of the draft PEP hinges on the increased utilization and accelerated RE development. Recognizing the need to reinforce our climate actions and improve energy self-sufficiency, the Plan boldly sets forth an aggressive target of RE integration. Our desired goal is to attain a minimum of 35 percent RE share in the power generation mix by 2030, and 50 percent by 2040,” Lotilla said.
He said the PEP update aspires for “a holistic transformation of the energy sector, transcending its current state to attain unparalleled heights of sustainability and resilience.”
“This accentuates our unwavering commitment to evolve and adapt in the face of emerging global energy challenges,” he said.
Lotilla said crucial to reaching DOE goals are investments, and government will create an investment-friendly environment by leveling the playing field, offering incentives, simplifying processes and providing policy support mechanisms.
Lotilla said the DOE was also studying innovative programs for alternative fuels and emerging technologies such as hydrogen and ammonia and even tidal energy.
He said DOE was working on expanded solar rooftop program and improvement of solid waste management, while enhancing on the policies on the development of offshore-wind (OSW), taking into account the streamlining and stricter timeframe set forth in the Energy Virtual One-Stop Shop (EVOSS) law on the processing and issuance of licenses and permits by the concerned national and local government entities.
Lotilla said the PEP also encourages the adoption of modern technologies, smart grid systems, and demand-side management to bring down overall energy consumption, lower greenhouse gas (GHG) emissions in various sectors and reduce energy intensity in the production of goods and services.
“This is not just part of our Plan as a direct reaction to the volatility of fuel prices, but it is the direction we must take as a society,” he said.
Lotilla said DOE was also setting its sights on the integration of progressive technologies that are reshaping the global energy landscape such as the energy storage systems (ESS) that hold the ability to optimize variable RE integration.
Meanwhile, Lotilla lauded Meralco for surpassing its 1,500 megawatts (MW) commitment under the Renewable Portfolio Standards (RPS) with 1,880 MW of contracted RE secured in its supply portfolio.
“I hope more power utilities and other mandated participants will do the same and abide by the mandate of the RPS. Similarly, your move to reinforce the sourcing of RE-generated supply through your retail electricity supplier and the revving up of solar power developments of your power generation subsidiary is highly commendable,” Lotilla said.