The conflict in the Middle East has exposed the weakness of the power of the Philippines and it needs to use the chairmanship of the Association of Southeast Asian Nations (ASEAN) to guide the organization in increasing regional cooperation, said a sustainability expert.
“The role of the Philippines is to strengthen the foundations of its domestic energy system while (fighting for) a more integrated, robust, and investment-friendly ASEAN energy system,” said Angelo Kairos T. dela Cruz, executive director of the Institute for Climate and Sustainable Cities, at the BusinessWorld Economic Forum on Monday.
As this year’s chairmanship of ASEAN, the Philippines is expected to advance strong regional cooperation on energy security and supply stability as the Iran war shakes up energy markets around the world.
“As a net energy importing region, ASEAN continues to be exposed to the volatility of fossil fuels, making energy security and economic stability central to policy priorities among its members,” said Mr. dela Cruz.
He said the region is focusing on diversified and decentralized energy systems, as the deployment of renewable energy in various national markets is increasing.
Mr. dela Cruz said the transition to renewable energy is becoming “more urgent.”
“The conversation is now changing. The question is no longer whether the Philippines is ready for renewable energy investments, but how these investments can be structured to bring impact to the entire national infrastructure, local communities, and end-user systems,” he said.
Jonathan Back, chief financial officer and chief strategy officer of ACEN Corp., said the Philippines is not alone in facing challenges arising from the Middle East crisis.
“This is not unique to the Philippines. I think all over the world, every government and regulator is asking how can we be more self-sufficient, how can we be resilient?”
Currently, ACEN has about 7 gigawatts of renewable energy capacity, including operational, under construction, and committed projects. The company operates in the Philippines, Australia, Vietnam, India, Indonesia, Laos and the US.
Mr. Back said the Philippines has a developed energy market structure despite its archipelagic challenges.
Mr. Emu said increasing the share of renewable energy in the energy mix could be accompanied by building energy storage systems to improve integration and help stabilize the grid.
“We think that is the main way to really improve that 35% in 2030 and 50% in 2040, to make it even faster,” he said, referring to the government’s target for the share of renewables in the energy mix.
Sharon Ocampo-Montañer, director of the Energy Regulatory Commission’s market operations service, said the Iran war continues to expose weaknesses in global energy supply chains.
“In a country like ours, which relies heavily on imported fuel, this disruption leads to increased costs and uncertainty for households and businesses,” he said.
“But while these challenges are real and immediate, they don’t define us. What defines us is how we respond,” he added.
Ms. Ocampo-Montañer said the regulator has taken steps to stabilize the system and protect consumers, by ensuring the continued operation of the local market and reducing cost pressures by suspending certain cases.
“Under its ASEAN leadership, the Philippines is advancing plans to transition to a more interconnected and robust regional energy system,” he said.
“For an island nation like ours, this brings challenges but also opens up opportunities for greater cooperation, improved system reliability and access to competitive energy resources,” he added. – Sheldeen Joy Talavera
