Energy Secretary Raphael Lotilla’s exit may be drawing cheers from the camp he’s headed to, but back in the energy sector, the real prayer is this: bring in a new Secretary who comprehensively knows the policy playbook—and one who isn’t afraid to run it fairly and objectively across every chain of the industry.

The industry players are already getting apprised of a shortlist, but their silence at this point is more deafening and louder than the unspoken words, and that really says everything!

For now, the industry’s only real wish is simple: that the next Energy Secretary shows up ready to lead; and not treat the position as part of a learning curve—because the highly technical and complex power sector in particular, has tangled problems; hence, the industry shall not be taken as a classroom, and there’s no time for training wheels.

They’re also laying down their respective policy wish list on the table – hoping that what they deem essential will likewise be given sharp focus by the incoming leader at the energy department. So far, the guessing game in the industry is that Energy Undersecretary Sharon Garin will eventually secure the top seat at the DOE.

Meanwhile, at the Energy Regulatory Commission (ERC), the industry rumor mill is also continuously churning out information, with some quarters suggesting that current DOJ Undersecretary Jesse Andres might stage a comeback as Commission Chairman. However, it’s still early to tell, because some groups are reportedly also expressing a preference for leadership at the regulatory body.

The ERC will also have two vacancies because two of its Commissioners – Alexis Lumbatan and Catherine Maceda – will be retiring in July; and there are already talks on potential candidates, including speculated transfer of Energy Undersecretary Rowena Guevara to the Commission; but if the industry players will be given their way, they would prefer Guevara to stay put at the DOE because she is considered as the ‘policy force’ in the concretization of the green energy auction program (GEAP) for the influx of renewable energy (RE) investments in the country.

Similarly, there are industry whispers that Atty Lew Carlo Lopez, who is currently Group Head for Government Relations at Terra Solar of the Pangilinan-led Meralco PowerGen, is being eyed for Commissioner post at the ERC; with some industry circles noting that his resume will not just fuel this; but also by strategic family ties that has links to the seat of power in the Palace.

No letup on RE capacity tendering

The investors are already on board, but the next fourth to sixth rounds of green energy auctions (GEAs 4-6) will be a task to be delivered by the incoming Energy Secretary, as they will solidify the energy transition agenda that the Marcos administration has been advancing.

For GEA-4, the target is to add 9,378 megawatts (MW) of new capacity from ground-mounted solar, rooftop solar, floating solar, and onshore wind projects; and the unique feature of that tender process will be the 1,100MW integrated renewable energy and energy storage system (IRESS) package; which has been intended to “enhance grid reliability and flexibility while supporting the country’s growing electricity demand.” 

GEA 5, on the other, will chase capital injection from offshore wind projects although the terms of reference (TOR) for this wave of capacity offer has yet to be firmed up; and it will be up to the next DOE leadership to do the heavy lifting on crafting a package that could actually lure investors’ appetite; while GEA-6 will hunt for investments on waste-to-energy (WTE) and biomass facilities.

Nuclear power: Proceed with caution

Certainly, nuclear shall be continuously studied and weighed as part of the country’s future energy mix; but the next Energy Secretary better move with caution. Primarily, no fast-tracking any safety bill without a thorough study, because rushing the rollout of this technology could blow up more than just the grid, but the entire future of the Philippine energy sector.

The industry players are raising red flags over the mad rush to ram through the PhilAtom Bill before the Senate closes its 19th Congress sessions; warning that half-baked laws won’t cut it when it comes to nuclear, and that every angle of the regulatory agency must be hammered out with deep scrutiny before such legislative measure would be enacted into law.

Additionally, the successor-Energy Secretary is being reminded that instead of giving more focus to foreign technology suppliers at this stage, the DOE’s real job now is education – primarily arming the future domestic nuclear workforce with know-how and expertise; and more importantly, reading the room and actually getting people’s pulse to win over communities where these plants are set to be sited.

More than anything, the DOE must also draw a hard line: the country’s nuclear policy will cover every detail from ‘cradle to grave’; and the Philippines shall not serve as a testing ground or guinea pig for the small and micro-modular reactors being advanced by foreign interests.

Take it easy on priority dispatch for gas 

Republic Act 12120, which was enacted early this year, has two key provisions: a) to grant priority dispatch to power generated from indigenous gas; and b) to set a mandated minimum share of electricity using indigenous natural gas.

But here’s the catch: the priority dispatch and mandated gas quotas incorporated in the law threaten to distort the free-market rulebook of the deregulated power sector; and that will risk higher power bills for consumers and directly clashing with Electric Power Industry Reform Act’s (EPIRA’s) core promise of ‘least cost’ and competitive electricity dispatch in the Wholesale Electricity Spot Market. Sources emphasized that “while the new gas mandate is well-intentioned, it departs from the principle of least cost generation, potentially forcing higher-cost power into the system.”

Beyond these concerns, it is also the wish of the industry that the next Energy Secretary will focus on solving the problems at home, because most of the dilemmas wanting immediate attention are domestic, and most foreign investors already have their in-country representation. After all, most of the Cabinet secretaries that had been terminated from service were the ‘frequent fliers’.

Then within the ranks of the DOE personnel, they’re hoping their next boss respects them as professionals committed to serve the country; and not be treated as easy mark to be thrown things at, shouted at or humiliated in public; and they’re holding out for a leader who actually walks the talk on moral integrity.

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