Out with the old, but not quite in with the new. At least not yet for the Philippines’ energy sector.

While the country is making promising strides toward modernizing its energy infrastructure, a software provider says there is still room for improvement, particularly when it comes to metering issues.

In an exclusive interview, Geoff Childs, general manager for Asia at Gentrack, a software provider for energy and water utilities, shared that the integration of smart technology is crucial for creating a more accurate billing system and accelerating the adoption of renewable energy.

“The early progress that the Philippines is making is promising. It signals the market’s readiness for smarter energy systems,” Childs said. “But smart meters alone do not deliver a meaningful return on investment.”

According to Childs, while the Philippines is slowly embracing modern solutions, manual and meter-based billing systems are still the norm across many parts of the country. Traditional electric meters require manual reading, which can lead to errors and inaccurate billing. In contrast, smart meters are designed to record and transmit real-time energy data, addressing these long-standing issues.

Several power distributors, including the Manila Electric Company (Meralco) and MORE Power Electric and Power Corporation (MORE Power), are already pursuing smart metering initiatives. Meralco plans to deploy 3.27 million smart meters through its advanced metering infrastructure (AMI) project by 2029, while MORE Power is implementing a similar AMI system in Iloilo.

Childs explained that when paired with an analytics platform, an AMI can detect irregular consumption patterns, alert utilities to sudden drops or spikes in power usage, and even identify tampering or illegal connections. However, these programs require approval from the Energy Regulatory Commission (ERC), which has yet to issue a decision on smart metering regulations since its call for a more regulated approach in 2022.

“To unlock their full potential, utilities must be able to process and analyze the vast amount of real-time consumption data they’ve generated,” Childs said. “Embracing modern technology, from advanced metering infrastructure to cloud-native software platforms, is key to driving the Philippines’ transition to a smarter, more sustainable energy future.”

Childs believes that advancing meter-based billing is essential for keeping pace with an evolving energy landscape that is moving away from centralized generation toward distributed micro-generation.

The push for smarter energy utilization isn't unique to the Philippines. Members of the Asia-Pacific Economic Cooperation (APEC) recently met for an energy ministerial meeting where they emphasized the need for a diverse energy mix and innovations that can provide flexible, reliable power.

“We note the rising demand for electricity across the APEC region, particularly driven by increasing electrification of households, commercial buildings, transport and industry and growth of data centers to support the expansion of AI (artificial intelligence),” APEC stated.

“To meet this demand, we recognize the need to ensure a stable power supply in accordance with each economy’s domestic circumstances and priorities. In this regard, we encourage economies to diversify their power sources and technologies while supporting necessary investment, fostering technological innovation and enabling efficient market operation to enhance power system flexibility, resilience and stability.”