‘Demand-side management needed to address power shortage’

MANILA, Philippines — Demand side management will play a key role in addressing potential power shortages in the country, especially during the summer months, according to the Department of Energy.

DOE Secretary Raphael Lotilla said delays in some liquefied natural gas (LNG) projects, as well as the inability of Malampaya to produce more gas, would  have an impact on the country’s summer supply.

Lotilla had previously expressed concern over the country’s power outlook for the summer months next year, when temperatures begin to rise and demand goes up.

For the next six months, however, the country’s power reserves are deemed sufficient due to cool weather, assuming that there will be no major breakdowns of power plants.

“But what is more important is what we are going to do in order to address potential shortages,” he said.

“So one of the things that the President has emphasized is the importance of energy efficiency and conservation. In other words, demand-side management is very important in order for us to help manage or reduce the demand, especially during the peak hours,” the energy chief said.

Thin power reserves usually occur during the dry season or summer months when temperatures are higher and demand increases.

“So at this particular point, we will be emphasizing the subsequent steps and actions to be taken by the department. But as you know, we already have an energy efficiency and conservation law that was passed by Congress, and the Department of Energy has been taking steps in order to implement the provisions of that law,” Lotilla said.

“The rollout is very important, including educating the public on how they can help through their sustainable consumption patterns to reduce the amount of energy that is needed to carry out the same levels of activity or to produce the same amount or volume of goods,” he said.

Lotilla earlier said the agency would also do its best to address unutilized capacity or stranded power by fixing transmission constraints.

The Institute for Energy Economics and Financial Analysis (IEEFA) said the country has faced multi-year difficulties in getting new LNG projects built, with LNG terminal projects repeatedly delayed in the Philippines since 2003.

IEEFA said an inability to secure LNG volumes at competitive prices is likely to delay projects further.

A terminal project led by First Gen Corp. was targeted to come online in the third quarter of 2022, but has been pushed back until at least the third quarter of 2023 due to unspecified events and circumstances beyond its control.