Energy sector must boost supply ahead of demand

Danessa Rivera (The Philippine Star) - December 28, 2020 - 12:00am
https://www.philstar.com/business/2020/12/28/2066556/energy-sector-must-boost-supply-ahead-demand

MANILA, Philippines — As energy demand declined amid the COVID-19 pandemic, the country’s energy chief said the sector has the opportunity to catch up and boost supply prior to the resurgence of demand once the vaccine is rolled out and the economy fully reopens.

Energy Secretary Alfonso Cusi said the pandemic has stalled growth in the sector and has given the energy sector an opportunity to boost supply. “This pandemic, as far as energy supply is concerned, is both a problem and an opportunity. It’s an opportunity for us to do catch up work in really boosting our supply,” he said.

This is because demand for electricity and oil dropped drastically this year due to the pandemic-induced drop in economic activity.

“We really need to do our share of the work to help in the economic recovery. When it comes to power, we have to make sure that we are ready to build up the supply. We cannot have intermittent supply in our economic recovery. For oil, we’re pushing for exploration of our indigenous resources,” Cusi said.

For next year, Cusi expects a higher demand for oil, but it may still not reach the pre-pandemic level immediately.

“Demand for oil dropped because our people are not able to move. Whether it will go back to the 2019 level, it’s very difficult to say. But I think it will be not at that level, but it will be within the range, especially if our population will be vaccinated,” Cusi said.

“We’re also seeing the opening up of the transportation sector, where even the provincial buses are allowed to operate, so we expect an increase in demand in petroleum. But it may not go back immediately to the 2019 level,” he said.

For the power sector, electricity demand might match the 2019 numbers next year.

“As far as power demand is concerned, there will be a surge when we fully reopen the economy,” Cusi said.

For now, the DOE is confident that the country’s power and fuel supply remains stable and reliable.

“We have a healthy and robust supply mix in place, where energy players are well aware of the increasing demand during this season,” Cusi said.

At the same time, the Energy chief said the energy sector would continue to take an active role as the government gradually reopens the economy.

“We continue to review our policies to make sure they are responsive to our current needs as we strive to encourage foreign investors to consider the Philippines as their next destination,” he said.