Last November 29, the Philippine Daily Inquirer gathered different individuals with distinct and worthwhile perspectives to discuss the significance of a hybrid energy system, especially as the Philippines navigates its energy transition.
Discussing how best to affordably bridge the existing energy system with a future of better and cleaner sources were Atty. Pedro “Pete” H. Maniego Jr. of the Institute of Corporate Directors, John Charles Altomonte of the Ateneo School of Government, Joey Ocon of Nascent Batteries, Engineer Rene Fajilagutan of electric cooperative ROMELCO, and yours truly.
I was most impressed by the presentation of Engineer Fajilagutan, wherein he outlined the efforts of ROMELCO in an off-grid area in Romblon to develop a cheaper power supply for their consumer members. By adding embedded renewable energy power generation, they hybridized the power supply, thereby diluting the cost of dispatchable but expensive diesel generation (around P30/kWh) with cheaper renewable power generation like mini hydro (around P7/kWh). What they did should be a case study and it must be considered for other off-grid areas. Hybrid systems allow for the benefits of each technology to cover for the disadvantages of the other.
I agree with Atty. Pete Maniego’s argument that there needs to be more focus on the low-hanging fruits, much like what ROMELCO did. For one, strengthening distributed power systems and transitioning them to be more hybrid (e.g. less reliant on expensive diesel generators) will expand access and provide flexibility for different segments of the country, especially those in off-grid areas. With solar and other distributed forms of energy, supply can be brought near demand.
For an archipelagic country with over 7,000 islands, embedding hybrid power generation for island systems is a sensible approach. One of the most expensive types of transmission lines are those underwater, so embedded hybrid power generation can help decongest the transmission network (or even minimize the need for inter-island connections) and lead to more reliable and secure power supplies within each respective island.
In AboitizPower, we have started to capitalize on some low-hanging fruits. Through AboitizPower Distributed Renewables, Inc. (APX), AboitizPower develops and operates distributed solar systems catered to the large commercial and industrial business market, done together with solar developer Upgrade Energy Philippines, Inc. (UGEP). Another example is maximizing the output of existing generation capacities. Recently, AboitizPower, through AP Renewables Inc. (APRI), energized a binary power plant to tap the residual heat from the Tiwi Power Plant and generate an additional 17 megawatts of clean electricity.
I also agree with John Altomonte’s suggestion to adopt scenario-based planning for the Philippine energy system by grounding our models in future scenarios rather than past assumptions. The Philippine Energy Plan should be tested over a range of different futures so
that it becomes even more proactive. We need to explore more plausible futures and go beyond just planning the future based on the past. This makes sense, especially as we anticipate more intense weather events, more hybrid and distributed power systems, and new technologies like nuclear and energy storage systems moving forward.
The work done by Joey Ocon and his startup company Nascent Batteries on developing sodium ion battery technology in the Philippines is impressive. It is good to know that there are local energy experts — in this case, young scientists and engineers — who are also looking at microgrids and the role of batteries in the future energy system. New chemistries are needed to drive innovation in batteries, while economies of scale drive the costs of current battery chemistries to lower levels. It is best to start on its research and development now. Microgrids and BESS are not fully understood by many. We should encourage more efforts to communicate and engage with experts like them.
Overall, I think that different places should progress with their own energy transitions at their own pace. In the case of the Philippines, we don’t need to rush transitioning the energy system. For energy security and equity, we must have a good combination of a hybrid system to supply baseload, mid-merit, and peaking power demands; one that evolves as better technologies become more economical (like ROMELCO transitioning away from diesel to more renewables).
In that regard, the Philippine Energy Plan certainly presents a balanced and pragmatic strategy because it provides flexibility and it gives us time. There are a lot of technologies that are becoming more affordable and more scalable, while others may take longer than anticipated. But the question is at which point do we get in? We let innovation and competition take its course.
I want to thank the Philippine Daily Inquirer for hosting a very fruitful discussion. I hope we have more avenues to discuss the energy sector next year and in the many more years to come. The energy transition will be a multi-generational endeavor and we’ll need more of these events to bridge the knowledge gaps between the government, the industry, the academe, and the general public.
Suiee Suarez, AboitizPower vice president for corporate affairs