The Department of Energy (DOE) is reinvigorating the investment landscape so it can entice massive capital flow for P10 trillion worth of energy projects that had been cast under the updated Philippine Energy Plan (PEP).
According to Michael Sinocruz, chief of the Planning Division of the Department of Energy (DOE), the targeted investments will also provide more than 600,000 jobs if the proposed and blueprinted ventures are concretized until the year 2040 timeframe.
The array of investments to be cornered are greenfield and expansion power projects for both thermal and renewable energy (RE) capacities; power transmission and distribution facilities; oil and gas exploration and development ventures as well as investments in the downstream oil sector, biofuels and innovative technologies that will become part of the country’s energy future.
As anchored on the “Clean Energy Scenario” planning of the DOE, the scale of investments for new generation capacities will reach as high as P6.448 trillion, including 2.062 trillion worth of RE investments.
The other big-ticket items will cover investments in the power distribution segment of the industry that may lure capital influx of P852.80 billion; and then for transmission facilities at P364.52 billion.
In the downstream oil industry, stream of investments within the next 20 years could top P190 billion;
while downstream gas ventures such as liquefied natural gas (LNG) import terminals and ancillary facilities could fetch as much as P64.63 billion.
The upstream investments or those for exploration and development of indigenous resources like gas will reach P4.80 billion; and then coal may yield P4.14 billion.
Ventures in energy efficiency and conservation (EEC) will also turn in P1.60 billion in fresh capital; while other alternative fuels and technologies could mobilize investments hovering at P560 million.
On job generation, the lion’s share will still be coming from the conventional project installations in power generation, transmission and distribution at 626,073 Filipino workers likely to be employed.
For the targeted RE developments, these could provide employment opportunities to 10,616 Filipino workers; and the other bulk of job generation would be in downstream natural gas for 4,325; then downstream oil industry for 1,452; and then alternative fuels and technologies could contribute 1,050 jobs.
For resource exploration on coal and petroleum, the calculated extent of job generation could reach 1,000; while energy efficiency and conservation can chip in 390 jobs.
The Duterte administration is ushering the country into its “clean energy transition”; wherein it is eyeing to shift gigantic project developments into RE from the fossil fuels that had been the dominant technology installation in so many years.
Apart from RE, the government is also pursuing innovative technology installations, such as battery energy storage (BES) systems; hydrogen, electric vehicles and it is even opting for nuclear renaissance for its longer term energy future.