Key insights into RP energy sector from industry leaders
- February 19, 2025
The energy sector powers homes and cities, industries and nations. It is vital to driving economic and social progress, and building a better quality of life for everyone. In this article, we gain insights into the current challenges, developments, and hopes of the Philippine energy sector from four industry leaders: Eric Francia, president and chief executive officer (CEO) of ACEN Corporation; MGen President and CEO Emmanuel V. Rubio; and First Gen President and Chief Operating Officer (COO) Francis Giles B. Puno.
Policies for more players
All three industry leaders acknowledged the various enabling mechanisms that the Department of Energy (DOE) has put into place to accelerate the development and use of renewable energy (RE) sources.
“We’re seeing this push [prioritizing the shift to renewables] coming from the DOE,” ACEN President and CEO Eric Francia shared on Insight with April Lee Tan.
Francia cited the Green Energy Auction Program (GEAP) and the government’s policy shift allowing 100% foreign ownership of RE projects as proof that the administration is “serious about scaling up renewables.”
One hundred percent foreign ownership is “a welcome development, definitely, for the industry as a whole,” Francia elaborated. “It should spur more renewable energy investments in the Philippines, which is very much needed, given our growing electricity demand. I think the market is big enough to really have space for everyone.”
“The optimized market that’s running at the moment is enticing for investments,” MGen President and CEO Emmanuel Rubio shared with Businessworld.
With nearly twenty years of experience in the energy sector under his belt, Rubio is hopeful that his industry background will enable MGen to make positive contributions to the nation’s energy policies.
“I have, of course, been exposed to the industry and been part of a number of associations within the industry. Hopefully, we will be able to contribute to some of the policies that are in place at the moment, being involved in the discussion to share insights on policies with the DOE and ERC (Energy Regulatory Commission),” Rubio continued.
(Also read: PH Power Transformation to be Driven by Key Stakeholder Priorities)
Pricing for profitability and security
“In fairness, the policies are there,” First Gen President and COO Francis Giles B. Puno shared with BusinessWorld. “We have to be more proactive in making sure those policies translate into investment [through a balance] of good policies and regulations [that] provide incentives for investors in the generation side of the power sector.”
“If they do it wrong, then it will reduce the attractiveness for us to make those investments,” he added.
When asked about how the Green Energy Auction Reserve Price (GEAR Price) within the Green Energy Auction Program (GEAP) could attract more players to participate, ACEN President and CEO Eric Francia discussed the reserve price of ground-mounted solar in the first Green Energy Auction (GEA-1) as an example.
“In the GEA-1, the reserve price was about P3.64 per kilowatt-hour (kWh). The subscription rate was okay, but the magnitude was just 900 megawatts, and there were only two or three players that participated. That signaled to you that there’s not enough market interest at that price,” Francia shared.
“[Giving] credit to ERC [Energy Regulatory Commission], they read that signal right. They listened to the market signaling that the price was not compelling enough, so they adjusted it. In GEAP-2, the initial pricing [for ground-mounted solar] was in the P4.20 [range], but this was later on adjusted to the P4.40 [range], which tells you that there is openness in terms of adjusting this price.”
(Also read: Renewable Energy Market begins full commercial operations)
A more diverse power mix driven by a robust RE market is key to ensuring energy security.
Through its RE subsidiary, Energy Development Corporation (EDC), First Gen is focusing heavily on geothermal power. In 2023, the company announced its three-year, forty-well drilling program, investing sixty billion pesos to drill geothermal wells in various sites across the country.
“We’ve been able to do twenty wells [in 2024],” First Gen President and Chief Operating Officer Francis Giles B. Puno shared. “Hopefully, all of that will start contributing to the electricity being produced from geothermal from [2025] onwards.”
“The next few years are very critical,” Puno continued. “How we address the feasibility of LNG will be super critical for the country’s energy security.”
(Also read: Three Tycoons Seal $3.3 Billion Deal for Philippines’ Largest LNG Facility)
Planning with a long view
To meet today’s growing energy needs while working towards tomorrow’s clean energy goals, we need a long-term roadmap that recognizes our present limitations as we steadily increase our renewable energy capacity.
For MGen President and CEO Emmanuel Rubio, there is no “one-size-fits-all solution” to achieving energy security in the Philippines, so the industry should not be “technology agnostic” in its approach.
Since renewable energy resources aren’t constantly available and predictable, Rubio explained that “we need a portfolio of a mix of technologies…to allow us to continue driving the economy forward, until the time we can fully transition to cleaner technologies.”
Sources:
https://www.youtube.com/watch?v=_O3cgNVgJj8
https://www.youtube.com/watch?v=rLcaVdj0Q6Q
https://www.manilatimes.net/2025/02/14/business/top-business/ph-shifting-to-clean-energy/2055501
