The Foundation for Economic Freedom (FEF) held the 6th Paderanga-Varela Memorial Lecture (PVML) on October 24, 2024, at Discovery Primea in Makati. This year’s lecture, with the theme “Striking a Balance: Energy Security in a Low-Carbon World,” focused on the critical challenge of balancing energy security with decarbonization in the Philippines—a country that continues to face rapid economic growth while navigating the transition to a cleaner, more sustainable energy future.
PEP targets and RE
Atty. Romell Cuenca, Deputy Executive Director of the Climate Change Commission (CCC), delivered a comprehensive overview of the Philippine government’s initiatives to boost energy efficiency and transition to clean energy.
Cuenca outlined the 2020-2040 Philippine Energy Plan (PEP), which aims to increase the share of renewable energy (RE) in the country’s power generation mix to 35% by 2030 and 50% by 2050. These ambitious targets, he emphasized, are central to the country’s strategy for energy security and sustainability.
Building on this, Dr. Eduardo Araral of the National University of Singapore’s Lee Kuan Yew School of Public Policy discussed the economics of the country’s energy transition. He concluded that PEP targets are realistic and achievable, assuming there will be no significant regulatory burdens and that energy financing should be flexible.
He expressed optimism regarding the Philippines’ clean energy market, noting that the country is ranked as one of the top four most attractive developing economies for clean energy investment, following India, China, and Chile. He attributed this growing interest to the country’s recent policy reforms that have opened the door for international investment in clean energy projects.
RE and electrification
Department of Energy (DOE) Undersecretary Dr. Rowena Guevara highlighted key strategies in the DOE’s energy transition roadmap, particularly the acceleration of offshore wind energy development and the decommissioning of coal-fired power plants. She emphasized the importance of incorporating renewable energy into the national grid to ensure widespread access to electricity, particularly for low-income communities.
She also pointed to the economic benefits of electrification, with projections indicating that 100% household electrification could generate up to P315 billion in economic value, or approximately 1.8% of the Philippines’ GDP.
A holistic approach
Joseph Lacson, Chief Investment Officer of Aboitiz Power Corporation, supported DOE’s efforts and stressed the need for a holistic approach to energy transition, one that integrates land use, reforestation, and agriculture as key components of a sustainable energy strategy. He noted that energy transition cannot be achieved in isolation but must be part of a broader plan for environmental and economic resilience.
Atty. Jonas Leones, Undersecretary of the Department of Environment and Natural Resources (DENR), provided insights into the potential for hydropower and geothermal energy development, particularly in Mindanao, as well as the opportunities in biomass energy. He also raised important policy considerations regarding the siting of offshore wind farms (OSW), many of which are located in protected areas, which presents a unique challenge to the Philippines’ energy development.
About PVML
The PVML is an annual event organized by the Foundation for Economic Freedom (FEF), created in 2016 to commemorate the 20th anniversary of FEF and honor the legacies of its late co-founders, Cayetano Paderanga, Jr. and Francisco Varela. The lecture serves as a platform for thought leadership on key national issues, bringing together policymakers, business leaders, and experts to discuss solutions for the country’s most pressing challenges.
You may access the lecture and presentations here.
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