ADB: Clean energy use to cut power bills
The energy sector should not be taken as a single sector to proceed with development. We must consider the energy sector part of an overall crosssectoral intervention. If you take any project, it’s cross-sectoral, not just a single energy project
The Asian Development Bank said the Philippine government needs to ramp up investments in the decarbonization of energy sources to lower power costs in the long run. Soon, the move will also help push up the growth of the country’s gross domestic products.
In a recent forum, Dr. Prinyantha Wijayatunga, Chief of the Energy Sector Group of ADB, said prioritizing decarbonization — through reduction of carbon dioxide using low-carbon or clean and renewable energy sources, easing energy intensity, digitalization, and decentralization — is the way forward for the sector.
Wijayatunga said a shift away from traditional areas of investment and towards these four aspects can help increase the country’s GDP by lowering energy costs, among others.
Likewise, he pointed out that the energy sector is a cross-sectoral industry that affects many aspects of a country — particularly the economy.
“The energy sector should not be taken as a single sector to proceed with development. We must consider the energy sector part of an overall cross-sectoral intervention. If you take any project, it’s cross-sectoral, not just a single energy project,” he said.
With roughly 350 million people across the globe, still without adequate energy supply, and 250 million with no electricity access, Wijayatunga noted that many countries see the power industry as a sector with profound opportunities.
The same is true in the ASEAN region, as the International Energy Agency believes electricity demand in the area will double by the year 2040.
Hence, many countries are switching or transitioning to low-carbon energy sources not only to meet the demand but also to minimize the effects of climate change.
Industries up for challenge
Locally, many industries have signified readiness to embrace sustainable energy.
According to Maria Fe Perez-Agudo, President of the Association of Vehicle Importers and Distributors, the use of Electric Vehicles or EVs to support decarbonization is viable in the country, especially with the enactment of the Electric Vehicle Industry Development Act.
She noted that global EV sales reached a record high of 6.9 million in 2021. But sales are still emerging in countries such as the Philippines because the mass market has yet to afford the available models.
Meanwhile, the real estate industry was among the first to utilize sustainable energy, said Jose Carmelo Porciuncula, Executive Director for Investor Services of KMC Savills, thanks to the Philippine Green Building Code of 2016.
With the Green Building Code, local real estate companies and conglomerates have been pushing for green-certified spaces for their buildings to promote sustainability while minimizing the adverse effects of buildings on health and the environment.
Meanwhile, Meralco, which serves 7.5M customers in Luzon said it will continue supporting the economy through investments in sustainable energy projects.
“We know that for the economy to prosper, we need a reliable and sufficient supply of energy. We have been investing heavily in our electric distribution network, and we stand ready to provide the kind of electric service needed by our local companies, partners, and customers to compete in the global market,” Joebet Isaac Del Rosario, Meralco’s Lead Specialist for Forecasting, Utility Economics said.