Lotilla is optimistic on power situation

MANILA, Philippines — Energy Secretary Raphael Lotilla is optimistic about having stable power in the country this year given recent positive developments in the energy sector.

“We share your optimism. We hope that this will remain stable not only this year, but with the incoming new power sources also in the next two to three years,” Lotilla said in interview on the sidelines of an energy forum yesterday.

Among recent positive developments in the energy sector are the resumption of the Ilijan natural gas power plant of San Miguel in Batangas in supplying power to the grid, the energization of the National Grid Corp. of the Philippines’ Hermosa-San Jose 500-kiloVolt transmission line, and the onset of the rainy season.

“We constantly have different scenarios.  But sometimes, things that you cannot predict and the scenarios don’t turn out as we had predicted. But still, we have some fallback scenarios,” Lotilla said.

With the completion of two liquefied natural gas (LNG) facilities from Linseed Field Corp. and FGEN LNG Corp., the DOE is also upbeat about the continuous fuel supply of gas-fired power plants in the country.

The facilities will enable the importation of LNG into the country to support the continuous fuel supply of gas-fired power plants.

The energy chief said the growth in demand would be replaced with renewable energy and more efficient power plants and cleaner sources of energy.

LNG, for one, is considered by the DOE as an important source for fuel diversification.

The entry of LNG as a new type of fuel into the energy mix is expected to increase diversity and security of the country’s energy needs.

Lotilla said LNG is going to make up for the needed volume until such time that the country will be able to develop and produce enough indigenous natural gas.

“It has come to my attention that a number of quarters are criticizing this as therefore a shift to further carbon intensive fuels. But to be realistic about it, what do we have that can replace LNG right now if that is needed in the Luzon grid in order particularly to stabilize the variable renewable energy that is coming in,” Lotilla said.

“So the more that we introduce variable renewable energy, the more that we will need balancing sources of power, and the more that we will need energy storage systems,” he said.

Meanwhile, Lotilla said President Marcos, during their meeting yesterday, reiterated the need of ensuring a stable investment climate and level playing field in the country.

“The President wants to ensure that we have a stable investment climate,” Lotilla said.