Energy sector in a better situation now – Lotilla

Energy Secretary Raphael PM Lotilla claimed energy sector has seen remarkable improvements in stability and capacity under the Marcos administration.

In a comprehensive update on the Philippine energy sector earlier this month, Lotilla marked  the start of 2025 with optimism and highlighted  significant milestones achieved since the administration began in July 2022.

Lotilla said 1,400 megawatts of baseload capacity became commercially operational, with additional capacity undergoing testing and commissioning i n 2024

He also noted the resolution of major transmission delays, with projects like the Mindanao-Visayas interconnection, Cebu-Negros-Panay transmission, Hermosa-San Jose (Bataan) transmission, and Cebu-Bohol interconnection becoming fully operational last year.

While addressing the upstream energy sector, the Energy Secretary highlighted the stabilization of supply from the Malampaya natural gas field, despite reduced production volumes. The Philippine Conventional Energy Contracting Program (PCECP) has endorsed the awarding of two native hydrogen petroleum service contracts to the Office of the President, in addition to four other service contracts currently pending Presidential approval. 

The first energy bid round in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) was also conducted, marking another milestone.

To support natural gas needs, the completion of liquefied natural gas (LNG) facilities and the enactment of the Philippine Natural Gas Bill were acknowledged as critical steps forward. In the renewable energy (RE) space, 92 offshore wind contracts have been awarded, including 21 involving foreign-owned companies, thanks to cooperation from multiple government agencies and local governments.

Lotilla expressed pride in the country attracting over ?4 trillion in energy investments, earning the second spot in Bloomberg’s ranking of attractive emerging markets for RE investments. 

However, he emphasized the need to translate these approvals into operational projects, citing ongoing auctions for pump storage, hydro, and offshore wind energy.

Progress in nuclear energy was another focal point, with the International Atomic Energy Agency (IAEA) successfully concluding the Integrated Nuclear Infrastructure Review (INIR) mission.

Lotilla also addressed challenges such as global oil price fluctuations and their impact on downstream oil and off-grid power costs. He shared that the Government Procurement and Policy Board (GPPB) approved the National Power Corporation’s (NPC) hybridization proposal, which will help reduce diesel costs for small islands and missionary areas.

“DOE reiterates our commitment to President Marcos’  forward-looking approach on energy security, resiliency, and sustainability,” he said.