Legislation

Unity in Philippine Energy Sector is Essential to Retain Economic and Energy Security

The Philippines is at risk of losing the gains it worked so hard for in its energy sector. Allegations against Energy Secretary Raphael P.M. Lotilla could have a domino effect, warns the Philippine Chamber of Commerce and Industry (PCCI).

In a statement on August 5 2024, the PCCI stated, “We are competing against other countries in the region in enticing foreign direct investment (FDI) to come to our shores; let us not create an air of uncertainty that could dissuade these investments.”

“We recognize the excellent work that Mr. Lotilla is doing. We support the direction he is taking to achieve energy security and affordability for the country, the two key components to bring in investments, expand domestic enterprises, and enhance our productivity and competitiveness.”

Lotilla’s endorsement of the expansion of AboitizPower’s Therma Visayas, Inc. Unit 3 was met with controversy although it had already been confirmed that permits for this project were secured prior to the moratorium on the construction of new coal plants 

Moreover, existing coal-fired power generation facilities, committed coal-fired power projects, existing power plant complexes with firm expansion plans, and projects that are in advanced stages of completion are not under the scope of the moratorium, confirms the PCCI.

It declared, “We endorse the holistic energy solution as presented by the Department of Energy, where coal remains an important component for economic growth while waiting for clean, reliable, and affordable baseload technologies.”

“Given that the Philippines is not a major carbon emitter and that it is not a wealthy country, a more pragmatic approach towards climate change needs to be emphasized, focusing our limited resources towards climate adaptation. Let us avoid being distracted by Western policies that may be appropriate for their country contexts but not ours,” it added.

Furthermore, the PCCI notes that the recent red and yellow alerts during the dry season, Panay power outages, and damage of electricity poles in Typhoon Carina are key warning signs of energy instability that must be addressed urgently with the most available and steady power sources. It is of vital importance that the economy continues to run on existing sources while renewable energy sources are in their development stage.

“Insecurity of supply causes harm that can affect the lives of consumers and businesses and ultimately hinders our country’s resilience and march toward progress. In light of increasingly inclement weather, we must also be mindful to invest in the greater resilience of our energy systems, of which coal, gas, and other technologies can provide us greater security against high winds and strong rains.”

Source: Charges vs Lotilla have potential to drive investors away, PCCI says