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.
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About AboitizPower
Aboitiz Power Corporation (AboitizPower) is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services. Guided by its vision and higher purpose, the company actively contributes toward uplifting the lives of the Filipino people and achieving a better world.
The company is one of the largest power producers in the Philippines, with a balanced portfolio of assets located across the country. It is a major producer of renewable energy, with several hydroelectric, geothermal, and solar power generation facilities. It also has thermal power plants in its generation portfolio to support the country’s baseload and peak energy demands.
AboitizPower also owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the country’s second and third-largest private utilities.
In step with the country’s ambitions for its energy mix, AboitizPower aims to grow its portfolio of generation assets with renewables and selected baseload builds. The Company seeks to increase its renewables group’s assets from indigenous energy sources such as solar, hydro, geothermal, and wind. To date, AboitizPower, together with its partners, offers the largest renewable energy portfolio in the Philippines based on installed capacity under its operational control.
About AboitizPower Transition Business Group
The AboitizPower Transition Business Group manages and operates the thermal power generation assets of Aboitiz Power Corporation. Our thermal assets provide much-needed, reliable power to the Philippine grid. Our mission is the same across all our facilities — to advance business and communities by providing reliable, reasonably-priced, and responsibly-produced power. Together with you as our partners, we can continue to Transform Energy for a Better World.
