Conventional energy provides needed stability in the Philippine energy mix, (L-R) AboitizPower Transition Business Group Chief Engineering & Projects Officer Rolando “Don” Paulino (2nd) tells fellow panelists Frank Thiel of AmCham, Joel Tarongoy of Shell Energy, Daniel Rodriguez of Reganosa, Noel Felicia of SKL Liguasan Oil and Gas, and Yatin Premchand of Black & Veatch during AmCham’s 8th Annual Energy Forum.
Conventional power plants continue to be important in supporting grid stability in the Philippines, especially as it integrates more variable renewable energy (RE) into its power mix, according to a senior executive from Aboitiz Power Corporation’s (AboitizPower) Transition Business Group.
During a panel discussion at the American Chamber of Commerce (AmCham) 8th Annual Energy Forum, Rolando "Don" Paulino, Chief Engineering & Projects Officer of AboitizPower, explained that conventional plants serving as baseload capacities are crucial for balancing the inherent intermittencies of clean technologies like solar and wind.
“Conventional power provides the stability, flexibility, and reliability that will allow emerging technologies and cleaner sources to scale,” he said. “Without it, the transition risks being unbalanced and unable to meet the country’s growing demand.”
In the Philippine Energy Plan 2023-2050, the Department of Energy projects total electricity sales in the Philippines to expand by more than four times its 2022 level of 91.3 terawatt-hours to over 400 terawatt-hours by 2050 at an average annual pace of 5.49%.
The view was echoed by his fellow panelists, who agreed that while the RE portfolio is growing, traditional power remains critical.
“Conventional energy still has a strong role to play. And it will continue to play a very strong role in the future,” stated AmCham Energy Chairman Frank Thiel.
Reinforcing the complexity of this goal, Yatin Premchand, Managing Director of engineering firm Black & Veatch, noted, “The actual situation we see with respect to energy transition is that it's a lot harder than any of us imagined. It's not easy to go from convention to net zero.”
In addition, Paulino stressed that the challenge is not just building new capacities, but optimizing the performance of existing assets. This ensures that the country maintains access to dependable electricity while the grid is prepared for the integration of new technologies.
AboitizPower Transition Business Group’s portfolio of baseload facilities includes GNPower Mariveles and GNPower Dinginin in Mariveles, Bataan, Therma Luzon, Inc. in Pagbilao, Quezon Province, Therma Visayas, Inc. in Toledo City, Cebu, and Therma South, Inc. in Davao City, Davao del Sur.
The annual conference, which included Department of Energy (DOE) Undersecretary Sharon Garin and Senate Energy Committee Vice Chair Sherwin Gatchalian, discussed the critical alignment of industry strategy with national policy in navigating a balanced and successful energy future for the Philippines.
