Q&A: Interview with Johnson Luu of CHINT: Smart energy solutions for the Philippines

Sustainability with smart energy solutions and next-generation innovations to empower the Philippines

CHINT is a leading global green energy company dedicated to driving innovation and sustainability in Asia. With more than 35 years of experience and a team of top engineers and research scientists, the company collaborates with businesses, governments, and communities to deliver smart energy solutions and next-generation innovations that empower the world.

As an end-to-end solutions provider, CHINT offers comprehensive Power-to-Plug assistance, delivering customizable, high-quality products and services to support organizations in Asia on their path to success.

CHINT’s deep industrial expertise enables them to design tailored solutions that meet local regulations and help customers achieve their business and environmental goals while maintaining efficient lead times.

In the Philippines, CHINT has partnered with the Philippines Electric Cooperative to bring electricity to rural areas, remote regions, and off-grid islands. Through these collaborations, CHINT has supplied transformers and other HV electrical equipment for notable projects such as the Sta. Barbara Substation and Mabiga Substation of Pampanga II Electric Cooperative (PELCO II). Additionally, CHINT will provide 10MVA HV Substation equipment for Oriental Mindoro Electric Cooperative, Inc. (ORMECO).

Malaya Business Insight interviewed Johnson Luu, Marketing Director APAC at CHINT to get his insights on specific issues and solutions CHINT does has, as well as execution of its projects.

Luu has close to 20 years of experience in the Engineering industry.

At CHINT Global, he strategizes the company’s medium to long-term business goals in the Asia Pacific region to deliver value to customers and collaborators. As Marketing Director of Asia Pacific at CHINT Global, he and his team supports the functions of offices from over 20 countries in the region.

Over the course of his career, he took on several regional leadership roles in ABB, including Head of Business Development, and Head of Marketing. Johnson’s key successes as a leader include successfully leading his team to establish a Technical Competency Centre in India, which helped set the growth directions of a major economy. Johnson was also involved in the planning and delivery of major electrification projects for Hospitals, Data Centres, Sea Ports, Large Scale Buildings, and Rail Infrastructures in the region.

1. How advanced is rural electrification now compared to the period before 2010?
   Before 2010, the Philippines generated electricity primarily through a mix of fossil fuels (37 percent), hydroelectric power (19 percent), and geothermal energy (14 percent). Such traditional methods of electrification rely on the use of finite natural resources and are harmful to the environment and people. It is also difficult, or in some cases, impossible to install in remote areas. For this reason, rural electrification has been a problem that governments around the world have been wanting to solve for over decades.Prior to 2010, the Philippines government also found that about 30 percent of the households living in the remote areas of the country had little or no access to electricity. Those who live in areas with electricity access faced the issues of regular power outages and intermittency issues, highlighting the need for safe and reliable electricity. At the same time, renewable sources such as wind and solar power were only just starting to gain traction.Thanks to the constant innovations in renewable energy — culminating in more efficient designs, lower costs, and increased reliability — the Philippines has made significant progress in rural electrification.

   The Sitio Electrification Program (SEP), launched by the National Electrification Administration in 2011, paved the way for the Philippines to electrify the underserved and unserved areas of the country, tapping on the technological advancements of renewable energy sources including solar panels, wind turbines, and micro-hydroelectric generators.

   Overall, the SEP has achieved a high rate of success. While the country has reached a near 100 percent rural electrification with the use of renewables, there is still room for private and government partnerships to consistently improve the electrification processes such as through the use of high-quality products like switchgears that play a crucial role in ensuring that power is transmitted to the grid effectively and safely. It also ensures that the electricity being generated from renewable sources is stable and meets the needs of the users.

2. Are renewable energy sources more targeted solutions for rural electrification now? Compared to traditional modes of electrification which are of a centralized nature, renewable energy sources enable the decentralized generation, distribution and storage of electricity. This omits the need for complex infrastructure such as large-scale power plants, transmission lines and distribution systems.

   

   The abundance of sunlight and wind in rural areas also makes the installation of renewable energy systems easier and cost-effective. Any excess energy can also be stored in energy storage systems.

   Renewable energy sources have become more targeted solutions for rural electrification in the Philippines, particularly in the last few years, given the involvement of various stakeholders — including the government, private companies, as well as non-government organizations. Initiatives such as the Rural Electrification Programme, and the installation of solar-powered water pumps, streetlights, and charging stations among others do not only bring more awareness and attention to the use of renewable energy sources.

   Their widespread implementation and installation also help make renewable energy-powered equipment and infrastructure more accessible through affordable costs and widespread availability. They are also easier to install compared to traditional electrification methods, thus speeding up the implementation process.

3. Are smart metering technologies, and other HV electrical equipment in rural electrification in the solutions mix? High voltage (HV) electrical equipment in particular is an irreplaceable component in today’s power systems. They allow for the transmission of large amounts of power over long distances with minimal energy loss, translating into greater efficiency and lower energy costs.HV equipment is also designed to be robust and reliable, reducing the frequency of equipment failure and maintenance. And it is designed to be safe, with features such as circuit breakers and insulation, to prevent electrical accidents and minimize the risk of electric shock.Smart metering technologies are also critical to the solutions mix for rural electrification.The key benefit this technology offers is the ability to monitor power usage and detect anomalies in real time, allowing operators to get ahead of problems. There is another reason smart metering technologies are better-suited to rural electrification. With this technology installed, operators no longer need to send employees far out of the way into rural areas just to read the meter — smart meters will simply transmit data to the operators on their own, at regular intervals.Ultimately, smart metering technologies and other HV electrical equipment being in the solutions mix for rural electrification help provide a seamless, safe, and more efficient way of powering these communities.
4. How does a sustainable rural electrification look like, how can businesses drive it in the Philippines? According to data from the National Electrification Administration (NEA), as of December 2020, the electrification rate in the country stood at 96.39 percent, up from just 53 percent in 1991. However, with a population of around 113,000,000 in 2023, this means that some 4 million Filipinos — largely living in rural areas — still do not have access to electricity.Meanwhile, those that do have access to electricity often suffer from a low quality of electricity — and experience frequent power outages, voltage fluctuations, and poor power quality, negatively impacting their daily lives and economic activities.Sustainable rural electrification would entail providing these communities with reliable and affordable electricity, without compromising on environmental friendliness.This can be achieved through the deployment of renewable energy technologies such as solar, hydro and wind. To ensure these technologies are cutting-edge, efficient, and tailored to the needs of rural communities, smart energy solutions providers need to continuously push the boundaries of science and technology through relentless R&D and boundless innovation.Apart from environmental sustainability, rural electrification is also about ease of installation and maintenance. Companies providing these solutions should have local presence, the necessary inventory and the right personnel to meet the maintenance and servicing demands of the communities, even if it is within short notice. For instance, should a component need to be replaced, these companies should deploy engineers who can communicate with the locals and head to site to provide technical counsel, or, directly rectify the issue on hand.

   While the government has been collaborating with smart energy companies and investing in renewable energy projects over the past few years, through initiatives such as the Philippine Rural Electrification Program (REP), there is still a lot of work to be done. Around half of the Philippines’ population lives in rural areas — so rural electrification in the Philippines is by no means a small undertaking.

   To this end, businesses can help drive rural electrification in the Philippines through various means. Businesses, with their intimate knowledge of the communities they serve, are likely to understand what communities need to successfully electrify. They can thus support rural electrification projects either through financing in the form of grants, loans, or equity investments, or through technology transfer as well as education and training, particularly if they are in the business of smart energy.

   Lastly, as key pillars in the community, businesses can partner with local communities, governments, and NGOs to further rural electrification projects and use their voice to advocate for policies that support sustainable rural electrification in the Philippines.

5. CHINT’s contributions to the electricity market in the Philippines and, on extension, the Asia Pacific region. At CHINT, we believe in the importance of access to safe and reliable electricity — and we are constantly innovating our solutions to make this a reality across Asia Pacific.
   In the last decade, CHINT has solidified our presence in the Philippines. We have also made significant contributions to the country’s electricity market.Till date, CHINT has completed a slew of transmission and transformation turnkey projects for the National Grid Corporation of the Philippines in Metro Manila, North Luzon, Visayas and Mindanao.We have also worked with more than 20 Distribution Utilities and Electric Cooperatives on the electrification of the countryside, remote areas, and off-grid islands. In these projects, we supplied transformers, electricity meter and other HV electrical equipment.In addition, we continually invest in the training and development of local engineers and technicians, to help build a strong pipeline of skilled workers for jobs related to the installation, maintenance, and operation of electrical equipment and products.Through these strategic partnerships and projects, we hope to increase the country’s renewable energy capacity, improve the efficiency and reliability of the electricity grid, and build local capacity in the electrical sector – in developing geographical areas with limited infrastructure. It is in our interest to ensure that electricity is being supplied to these remote areas in a safe and reliable manner, to prevent outcomes like fires caused by poor electricity infrastructure or power outages that will interrupt daily activities of the locals.
6. How CHINT, as advocate for climate positive actions, is helping to reduce the Philippines and, on extension, Asia Pacific’s greenhouse gas emissions? We innovate our products with lowering emissions for a greener earth in mind. Testament to this is three of our production facilities receiving the Carbon Footprint Certification from DEKRA, the world’s leading third-party inspection and testing certification organization.We invest relentlessly to develop environmentally friendly technologies to empower the world, and have been committed to the UN Global Compact (UNGC) corporate responsibility initiative — which outlines principles in the areas of human rights, labor, the environment, and anti-corruption — since 2012.Rural electrification of the Philippines is just one of our priorities. Since the launch of our CHINT Innovation Lab and APAC Headquarters in Singapore, we have also been working with customers throughout the Asia Pacific region to customize solutions that will solve their unique business and environment problems, ultimately building a more intelligent and greener Asia Pacific.This lab is now the go-to platform for businesses, governments, academics, and communities in the region to experience live demonstrations and simulations of proof-of-concept. Through this lab, customers can explore and experience CHINT’s leading-edge solutions — such as EV charging stations, intelligent water systems, photovoltaics, and more.These smart energy technologies are relevant for all functions including the built environment, data centres, the industrial sector, and smart cities.Apart from providing innovative and customizable solutions that customers can test out at our lab, we are also constantly thinking about holistic ways to further the environmental cause in APAC. We tirelessly advocate for the environment and nurture healthy talent pipelines in the markets we operate in, in the hopes of better serving the communities we operate out of.
   As a smart energy solutions provider, we aren’t just committed to sustainability, it is simply in our DNA.