Greater accessibility, energy efficiency, and prosperity

In 1990, power consumption for the entire Philippines stood at  26 terawatt-hours. Then 33 years later, as the population continued to increase, as prosperity rose, and as cities became more complex, total consumption hit 101 terawatt-hours.

Expectations are that it will continue to go up, with the Philippine Energy Plan projecting over 400 terawatt-hours in electricity sales by 2050. Imagine the constant work that needs to be done by the power generation, transmission, and distribution sectors!

But the job continues to be well worth it. Arguably, this rise can be attributed to increases in the quality of life of Filipinos. More and more sitios and barangays are being connected to electric grids.

For example, back in the summer of 1992, electricity in Boracay was only available from 6 p.m. to midnight. When ordering a mango shake from a restaurant back then, the restaurant would have to start a generator before they could run the blender. This is a far cry from the Boracay known and enjoyed today. It’s amazing what can happen in a span of three decades.

As electricity becomes more accessible, items like lightbulbs, TVs, air conditioners, and refrigerators — all have become within reach. In fact, according to a study by the Philippine Department of Energy, expanding the electricity access of low-income Filipino families leads to increased income and expenditure, with expanding access to 16 to 24 hours a day translating to a projected 49.4% increase in income and a 52.2% rise in expenditure.

As households scale their energy use, together with the commercial and industrial sectors, it is only right to put an emphasis on the efficient use of electricity. End-users shouldn’t be wasteful. For the household, upgrading appliances to more energy-efficient ones like LED lights and inverter motor-driven air conditioners and refrigerators should continuously be encouraged.

Not only does it produce better results with the same or even less amount of electricity input, but it can also lower energy costs. Collectively, these efforts will also put less pressure on the energy infrastructure and supply, helping increase energy savings and even decreasing some emissions.

​​Refrigerators, in particular, are used as prime examples to illustrate society’s energy efficiency transition journey. Its story has been defined by efficiency improvements, with manufacturers significantly enhancing its function and quality while reducing its energy consumption thanks to consensus efficiency standards and technological innovation.

By the mid-2010s, refrigerators already had 30% more storage volume relative to 40 years before. But from 1972 to 2016 (the latest data), the average price and average refrigerator energy use in the United States (in kilowatt hours per year) have consistently been on a downward trend.

Efficiency improvements of the modern refrigerator began in 1976 when the newly-formed California Energy Commission enacted the first-ever efficiency standards as a response to the 1970s energy crisis. Back then, the refrigerator figured as the most energy-consuming appliance in American households; a title now belonging to air conditioning and heating systems.

In a span of four decades, evolving energy standards and technological advances have produced refrigerators that, on average, are 30% larger yet consume around a quarter of the electricity, relative to their energy-thirsty predecessors. 

Advancements in technology, coupled with good policies like evolving efficiency standards and energy efficiency labeling, can do great things in shaping the energy landscape. Just think of how electric vehicles and solar panels are progressing in many parts of the world. As consumers transition to more efficient and cheaper devices, it helps the energy system, society, and the planet.

However, with greater efficiency and affordability, comes the prosperity paradox, wherein too much might mean canceling out the gains of efficiency.

For example, whereas before when people only had one type of appliance — say, only one air conditioner or only one refrigerator — since it is cheaper and consumes less electricity today, they might tend to get another one and then a few more.

Just look at the use of LED lights, which have gone from lighting homes and streets to lighting up huge billboards. No wonder the EDSA of years past — fewer billboards, more skyline — is vastly different from the EDSA of today.

Transitions in the energy system can certainly be enabled and sped up by mutually reinforcing policies and innovation. But changes also lead to unintended consequences like greater energy efficiency and affordability paradoxically leading to more consumption.

While the journey to greater accessibility to electricity is mostly led by industry players, end-users have a say in how they exercise energy efficiency. Hopefully, with the right choices, the whole of society will find a shared prosperity. 

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Suiee Suarez is the vice president for corporate affairs of AboitizPower.