Conventional power plants remain crucial for grid stability in the Philippines as it integrates more variable renewable energy (RE) into its power mix, according to a senior executive from Aboitiz Power Corporation’s (AboitizPower) Transition Business Group.
During a panel discussion at the American Chamber of Commerce (AmCham) 8th Annual Energy Forum, Rolando “Don” Paulino, Chief Engineering & Projects Officer of AboitizPower, explained that conventional plants serving as baseload capacities are essential for balancing the inherent intermittencies of clean technologies like solar and wind.
“Conventional power provides the stability, flexibility, and reliability that will allow emerging technologies and cleaner sources to scale,” he said. “Without it, the transition risks being unbalanced and unable to meet the country’s growing demand.”
The Philippine Energy Plan 2023-2050 projects total electricity sales to expand more than four times from 2022’s 91.3 terawatt-hours to over 400 terawatt-hours by 2050 at an average annual pace of 5.49%.
Fellow panelists echoed this view. “Conventional energy still has a strong role to play. And it will continue to play a very strong role in the future,” stated AmCham Energy Chairman Frank Thiel.
Yatin Premchand, Managing Director of engineering firm Black & Veatch, noted the complexity: “The actual situation we see with respect to energy transition is that it’s a lot harder than any of us imagined. It’s not easy to go from convention to net zero.”
Paulino stressed that the challenge involves not just building new capacities, but optimizing existing assets to maintain dependable electricity while preparing the grid for new technologies.
AboitizPower Transition Business Group’s baseload portfolio includes facilities in Bataan, Quezon Province, Cebu, and Davao del Sur.
The conference, featuring DOE Undersecretary Sharon Garin and Senate Energy Committee Vice Chair Sherwin Gatchalian, discussed aligning industry strategy with national policy for the Philippines’ energy future.