Energy security needed to sustain growth

by Chino Leyco January 20, 2016
http://www.mb.com.ph/energy-security-needed-to-sustain-growth/

The Philippines must continuously invest in improving the country’s energy capacity to attain energy security that will allow the country to sustain its rapid growth and make it more inclusive, the National Economic and Development Authority (NEDA) said.

In a statement, Socioeconomic Planning Secretary Arsenio M. Balisacan, said that government initiatives aimed at improving competitiveness and productivity of local industries will not prosper without an efficient, secure and sustainable energy sector.

“We also have to carry out policies and programs that will improve the competitiveness and productivity of our industries,” Balisacan said. “This cannot be attained without an efficient, secure and sustainable energy sector.”

As government continues to strengthen and improve the nation’s institutions, develop the country’s infrastructure, promote technological innovation, and pursue regulatory and structural reforms, Balisacan said the government needs efficient energy supply.

He underscored that energy remains a crucial element in economic growth and development, stating the potential of the Philippines of reaching high income status by 2040 provided the economy grows consistently by seven percent annually.

“While there have been improvements in infrastructure, we still lag behind our neighbors. In particular, investments in energy capacity need to be sustained, where the desired outcome is energy security,” said Balisacan, who is also NEDA Director-General.

“This means ensuring the availability, quality, and affordability of electricity,” he added.

Balisacan cited the World Economic Forum report, which showed that the Philippines scored only 4.2 out of seven in terms of sufficiency and reliability of power supply.

Also, almost 20 percent of households in the Philippines do not have electricity, and those who do — households, commercial establishments and industries — have to pay a high price for electricity, which is almost twice the average price in Southeast Asia.

“This means that we are losing out in competitiveness, thereby limiting our export orientation. Additionally, our energy and electricity consumption per capita is the lowest among eight countries,” Balisacan said.

“If we equate convenience as having access to more automated gadgets, then this means that we are the most deprived in terms of convenience,” the Cabinet official said.