Philippines' Power Gap: AboitizPower Calls for Long-Term Energy Plan
The Philippines is facing a significant power gap, requiring an additional 700 megawatts annually to maintain its reserve margin. Danel Aboitiz, CEO of AboitizPower, has called for a long-term energy plan to address this challenge and facilitate the transition to renewable energy.
AboitizPower, with 48 power generation facilities including the 173-megawatt Calatrava solar project and the 300-megawatt Therma South facility, is well-positioned to drive this change. The company owns the second- and third-largest power distributors in the country, Visayan Electric and Davao Light. AboitizPower aims to build around 3,600 megawatts of new renewable energy capacity by 2030.
The government's goal of sourcing 50% of its power from renewables by 2040 is considered feasible by Aboitiz. The Department of Energy's Green Energy Auction Program is set to catalyze this shift. However, the third energy auction, initially planned for December 2024, was postponed to 2025.
Aboitiz believes a stable energy plan would enable longer term investments and efficient capital allocation. The Philippine government's long-term initiative to promote renewable energy, by increasing the capacity and use of solar, wind, and hydropower, is expected to reduce dependency on fossil fuels and lower carbon emissions as part of their climate action and energy transition strategy.
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