Fitch Solutions BMI said that gas-fired power generation remains to be a vital part of Philippine energy security even with the efforts of the government to expand the share of renewable energy on the grid.
Fitch Solutions BMI Country Risk & Industry Research’s study reveals that gas-fired power generation will maintain its role in the Philippines’ power mix. Projections indicate that it will contribute around 19% over the next ten years, ranking below coal at 58% and slightly above non-hydropower renewables at 15%.
The research group added that efforts are being made in the energy market to enhance energy security, particularly in supplying the electricity sector. This is demonstrated by the recent extension of the operating license for the Malampaya gas field.
Under the renewal agreement, the consortium will conduct drilling for two additional wells at the gas field, with new wells expected to be operational and contribute to commercial use by 2026.
The company is also anticipating an increase in offshore wind development but acknowledges that the sector is still in its early stages, posing potential risks.
Fitch Solutions BMI added that the continuously growing power consumption requires additional capacity, and transmission networks need to be expanded to allow the entry of new power plants into the grid.