While most players in the energy sector are excited about the incursion of innovative technology solutions in the industry, Manila Electric Company (Meralco) Chairman Manuel V. Pangilinan cautioned against the trap of "quick fixes" that will not bring in realistic energy security for the country.

“We get excited about new technologies right, simply because it's new. Nuclear, hydrogen, ammonia - everything under the sun that scientists, or magicians can conjure up. But the reality is that: it’s not what this country needs and these are not quick fix solutions,” he stressed.

At this stage, Pangilinan opined, “what this country needs are very conventional meat-and-potato solutions,” with him citing his own experience that with solar deployment, this is not a dependable energy fix on cloudy days, hence, veritable technology coupling for reliability – like energy storage - shall be guaranteed first on a cost-competitive basis.

“What this country needs where there is a very thin margin of supply to demand are very conventional power plants - probably gas more than coal, so we have to approach it that on that basis, everybody wants a quick fix solution. There is none – unfortunately none,” he noted.

For the energy needs of data centers, in particular, he emphasized that one key requirement is the inclusion of renewables in their power supply contracting, so that has to be addressed by players wanting to meet their electricity requirements.

Nevertheless, Pangilinan highlighted that 100-percent renewables would not be a feasible solution yet that could be offered to them.

“Like when you talk about data centers. Sure, if you can provide renewables on a consistent basis because data centers are 24/7 operations. We cannot provide that on a continuing basis as solar plants or wind,” he conveyed.

In Pangilinan’s assessment, “we can only solve these issues by being conventional about it and you have to work hard on it.”

On the policy and regulatory frames of investments, he stated that “the government has got to cooperate by relaxing certain rules because at the end of the day, it is private sector money that will be put into these generation plants - whether it's coal, gas, solar or wind, whatever.”

Pangilinan added, “it will be the private sector, and quite rightly should take the risk alone - no government funding, no government guarantees, no government subsidies. If we fail, we fail.”

On power supply agreements (PSAs) or off-take of generated power capacity, he pointed out that the competitive selection process (CSPs) shall allow industry players to “build enough margins” and they must also be provided leeway to sell their capacities either in the spot market or the multiplicity of capacity buyers in the deregulated power sector.

“They should be let loose and build enough margins so that then the spot or even the auction market - if you want to create a new market - to allow those who lose the CSPs to turn into something that they can sell into - that they can build their plants but have a different kind of supply contract, so that should be thought about,” he said.