Efficiency and conservation crucial in attaining energy security, recent BusinessWorld Insights forum notes

By Bjorn Biel M. Beltran, Special Features and Content Assistant Editor

The energy industry is the core of civilization. Agriculture harnessed the power of the sun and gave the first people their roots. Fire brought warmth and community, then eventually, warfare and conquest. The industrial revolution, driven by coal and steam, redefined what humans could build, move, and imagine. Even language reflects this primacy: we call energy ‘fuel’, because energy quite literally fuels human progress.

Securing that energy, then, is tantamount to securing continued and sustained progress. For the Philippines, which continues to enjoy steady economic growth on the back of a young and talented workforce, keeping the energy supply stable and affordable is a critical goal for the government.

“The pace at which our economy grows demands responsiveness and forward thinking — qualities that we need to explore as we determine how to adapt to economic changes and strengthen our capacities,” Antonio Mariano C. Almeda, administrator from the National Electrification Administration, said in a video message at the recent BusinessWorld Insights forum themed “Energy Security: Powering the Philippines’ Economic Growth.”

Energy security is a whole-of-nation endeavor, and Mr. Almeda recognizes the power of unity and collaboration between different sectors in the country in the pursuit of ensuring that all Filipinos benefit from progress.

“While the objective of fully electrifying the nation is a challenging endeavor, we are fortunate to have found reliable partners from the public and private sectors to support us. Through collaboration, we can accelerate the expansion of rural electrification projects to reach more communities, especially those in underserved areas,” he said.

Engr. Ernesto O. Silvano, Jr., deputy administrator for technical services at NEA, followed up on this speech with a discussion on the “Challenges and Opportunities in Energy Supply Chain in 2025.”

“Today, as we navigate a rapidly changing energy industry — one shaped by climate change, technological disruption, global market volatility, and the rising needs of a growing population — our mission must evolve and respond with greater urgency and purpose,” Mr. Silvano said.

Optimizing the energy grid

Towards that mission, the Philippines is in a position better than many other countries in the world. Alexander D. Ablaza, president of the Philippine Energy Efficiency Alliance, said that the country has some of the most inclusive, comprehensive energy frameworks out there.

For instance, the Philippine Energy Plan, which is the comprehensive long-term energy blueprint of the current administration, includes, among others, aggressive Renewable Energy (RE) and Energy Efficiency and Conservation (EEC) institutionalization programs for the entire government; the moratorium on new coal power projects; a mechanism allowing foreign ownership on large-scale geothermal projects under financial and technical assistance agreement (FTAA); the resumption of indigenous oil and gas exploration; the introduction of liquefied natural gas (LNG) portfolio; establishment of strategic petroleum reserves; and exploration of new energy sources like green hydrogen.

To tackle energy security, Mr. Ablaza instead called for a “paradigm shift” with how the conversation around the topic should be approached.

“Every time we talk about clean energy and sustainable energy, we should keep that balance of keeping energy efficiency in renewable energy, because that will bring us to our 2050 pathway,” he said during the forum’s panel discussion.

Mr. Ablaza also cited the call from the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28) to double energy efficiency progress through 2030.

“Energy efficiency should be regarded as an infrastructural asset class, one that should be ready for public private partnership transactions,” he said, adding that optimizing the flow of capital from investors to energy service companies can be the next step towards an energy secure future.

Emmanuel “Manny” V. Rubio, president and CEO of Meralco PowerGen Corp. (MGen), agreed, saying that the country currently has enough supply to sustain its current progress, but highlighting that preparations should be made for further on.

“The Philippines is entering an era of growth with our population over 115 million people, with energy demands rising fueled by rapid urbanization, economic expansion, and an ever-increasing standard of living,” he said.

At the same time, he noted that the government is aiming for a 35% renewable energy share by 2030 and a 50% share by 2040 as part of the Philippine Energy Plan.

“Quite aggressive, but I think with what we’re doing now with what we’re seeing, I think it’s achievable,” he said. “And hopefully, we won’t use diesel anymore. In fact, we have de-commissioned a number of our diesel plants because we believe that we won’t be needing them.”

Currently, Mr. Rubio believes that it is prudent that the Philippines has not yet committed to a long-term net zero target, as the current energy transition from fossil fuels to renewable is a delicate balancing act. The high variability of renewable energy is an issue that is still being addressed; and as the country waits for better technologies to resolve it, he said that focus should be redirected towards easier targets.

“One of the lowest hanging fruits in the energy industry is energy conservation. It is always said that the cheapest plants are the plants that you don’t have to build. You don’t have to build something you don’t need,” he said.

Building power plants, renewable energy or otherwise, requires massive investment and time: in capital outlays, land use, regulatory hurdles, and long lead times. Energy conservation and efficiency, he noted, can optimize the country’s current supply so that more plants are not necessary.

“Ambition needs action, and it also needs, of course, a realistic plan aligning all the things that need to be considered. So, action needs alignment, and we make it our mission to power the future by growing and diversified energy portfolio, one that balances renewables, transitional fuels like LNG, and reliable sources like coal, while ensuring affordability and good stability,” Mr. Rubio said.

As the power generation arm of Meralco, MGen holds a portfolio with a combined gross capacity of 2,602 megawatts (MW) from both traditional and renewable energy sources. The company is currently developing a project, now known as MTerra Solar, which consists of a 3,500-MW solar power plant and a 4,500-megawatt-hour (MWh) battery energy storage system.

As the Philippines moves towards a new era of growth, it is clear that the path ahead is no longer just about finding more power but using it wisely. The country stands on the cusp of economic transformation, and now it must reevaluate how it approaches that which powers it. Energy conservation and efficiency, at this point, are critical pillars of national development.

“While the path to energy security is not without challenges, through forward-thinking solutions, collective effort, and an unwavering commitment to serve, we can build a resilient, inclusive, and future-ready energy sector,” Mr. Silvano concluded in his speech.

This BusinessWorld Insights forum was presented by BusinessWorld Publishing Corp. together with sponsors MGen and Semirara Mining and Power Corp.; partner organizations Asian Consulting Group, American Chamber of Commerce of the Philippines, British Chamber of Commerce of the Philippines, Bank Marketing Association of the Philippines, CCI France Philippines, Management Association of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Franchise Association, Philippine Retailers Association; and official media partner The Philippine STAR.