The oil crisis crippling the world’s major economies has prompted the Department of Energy (DOE) to re-assess the country’s transition to a low-carbon future anchored on renewable energy (RE).
Based on a Manila Bulletin report, Asec. Redentor Delola of the Department of Energy (DOE) said they have been monitoring the blackouts in China since this could trigger a rise in the cost of solar panels and other equipment for various RE installations.
Other major developments include those in India and Europe, which are experiencing unusual spikes in coal, gas, and oil prices.
Natural gas prices are now priced at $230 per barrel, which is unfavorable for markets that are shifting to liquefied natural gas (LNG). These prices are expected to increase next year.
The DOE has issued notices-to-proceed to several companies for the development of LNG terminals and has also issued permits-to-consturct to Atlantic Gulf & Pacific’s and First Gen Corporation’s projects. The LNG terminals are being developed given the dwindling supply of the Malampaya gas field.
It is worth noting, though, that power plant installations in the Philippines usually depend on technologies sourced from China.
Delola, nonetheless, said the DOE’s commitment to implementing its energy transition agenda remains.
