ACEN Corp., the renewable energy arm of the Ayala group, warned that a strategy relying exclusively on green energy may be insufficient to safeguard the country against surging summer demand and volatile electricity prices.

Speaking at a media briefing, Eric Francia, ACEN president, said that while the company remains committed to its aggressive transition, a “renewables-only” approach is likely unsustainable.

Francia noted that while doubling down on renewables and energy storage is a core pillar of ACEN’s strategy, focusing on those technologies alone is not the optimal solution for the country’s broader energy security.

He cited significant hurdles in developing clean energy at the necessary scale, specifically pointing to persistent grid congestion and the slow pace of infrastructure development as issues that neither the public nor the private sector has fully resolved.

ACEN currently aims to expand its operational capacity to seven gigawatts by 2027, with the Philippine market expected to comprise a substantial portion of that portfolio. Despite this ambitious internal target, the national outlook remains complicated. 
The Department of Energy (DOE) earlier said that it was reviewing potential exemptions to the coal ban to bolster supply and mitigate the impact of global price shocks.

Francia expressed skepticism regarding a renewed reliance on coal, noting that the fossil fuel faces mounting difficulties including restricted access to financing and thinning social acceptance.

He noted that the country cannot depend on coal to “save the day” for energy security. Instead, he urged the DOE to re-evaluate its Power Development Plan, which currently envisions a flat growth rate for coal while shifting the baseload burden toward natural gas.

The executive questioned the realism of relying heavily on gas to fill the gap left by coal, noting the inherent risks in the gas supply chain.

He pointed to geopolitical instability and extreme price volatility in imported liquefied natural gas as factors that could threaten the DOE’s target of achieving a 35 percent renewable energy share in the generation mix by 2030.

For a market where consumers already face some of the highest power rates in Southeast Asia, Francia suggested that a more nuanced, and diversified approach is required to ensure the lights stay on without further inflating costs.