The Department of Energy is looking at a flexible energy mix based on the country’s energy needs to stimulate competition and to maintain reliable and adequate power supply.
Energy Secretary Alfonso Cusi said that the department has formulated an energy mix with 70 percent baseload, 20 percent mid-merit and 10 percent peaking, instead of establishing a cap per technology.
“What we see is we want it to be competitive so we’re not putting a quota per technology,” Cusi said.
Under this scenario, technologies will compete with one another and may bring down electricity costs, Cusi said. The choice of technology to invest on will depend on the power developers as long as it meets the country’s power requirements.
“We want an energy mix where there will be competition so coal, gas, geothermal, hydropower or nuclear can compete in that 70 percent baseload. They are going to compete with each other and then you will really experience the CSP (competitive selection process) aimed to lower power rates,” Cusi added.
The secretary added that this will assure ample power supply for the country in preparation for industrialization.
The energy mix is not permanent and may change depending on the country’s need.
“But of course, along the way, that could change depending on technology development so they just have to adjust,” Cusi said.
Under the Philippine Energy Plan for 2016 to 2030, the country is seen to have a demand and reserve requirement of 30,189 MW by 2030. 17,925 MW is already installed while about 12, 000 is still needed.