Investment potential of energy industry explored

CEBU CITY – The Department of Energy (DOE) is exploring the potential the energy/power industry sector for long-term business investments.

DOE Assistant Secretary Redentor Delola said more investments in the energy sector are needed to speed up the energy projects not only in the Visayas but in the entire country.

Delola presented the Philippine energy situation, Visayas power situation and where to invest in the energy/power sector during the 2018 Visayas Energy Investment Forum here over the weekend.

The forum aims to update stakeholders on the investment opportunities in the energy sector, financing facility available for energy projects, the government’s role in facilitating the implementation of energy projects and private sector experience in the development and implementation of an energy project, Delola added.

In his presentation, Delola based on 2017 primary energy supply the Philippines imports 49- percent of its oil while 51-percent comes from indigenous sources that include natural gas at 5.6 percent, RE at 33.8 percent, clean energy at 39.4 percent and coal at 26.8 percent.

Delola added that by 2040 total energy supply is expected to be at 137.8 millions of tons of oil equivalent (MTOE) as compared to in 2017 which is only at 57.7 MTOE, with oil as the highest supply at 33.8 percent in 2017 and is expected to increase to 35.4 percent in the coming years.

“Geothermal supply is only at 15.3 percent in 2017 and will be depleted to 8.5 percent by 2040. Coal and oil will be the country’s main source of primary energy supply by 2040 as it was in 2017,” Delola bared.

According to Delola the transport sector consumes the most fuel at 35.5 percent of the total energy demand at 34.03 MTOE, followed by the residential/household sector at 26.7 percent and industries at 23.3 percent.

The agri-fishery/forestry sector consumes the least energy at 1.5 percent.

By 2040, the Philippines needs 43,765 MW additional capacity. The Visayas Grid power system generates 47 percent coal; 49 percent RE, 4 percent oil based and none from natural gas, Delola explained.

“Total energy/power generation is at 14.05 TWh with a peak demand at 1.98GW,” he added.