FPI lauds DOE move toward flexible fuel mix

MANILA, Philippines - The Federation of Philippine Industries (FPI), a group composed of industry associations and manufacturing companies, has welcomed the Department of Energy (DOE)’s pronouncement toward a flexible energy mix.

Mandating a cap on certain technologies would only reduce market competition, hike further power rates in the country, the FPI said.

While the group recognizes that the country needs diversified energy sources, FPI said such could be achieved even without mandating a strict power generation mix that will limit technologies to be developed by the private sector.

FPI is against the call of several groups for an energy mix with caps of 30 percent each for natural gas, coal, and renewable energy and 10 percent for other fuels.

By allowing all kinds of fuels to compete in the market, power rates could end up going lower because the least costly capacity will be dispatched first, the FPI said.

At the same time, the group sees the flexible power generation mix encouraging more players to continue developing projects they deem to be the most competitive.

“Mandating an energy mix policy that caps the technologies will not only cut out flexibility but will also go against the idea of having a competitive market, where all suppliers can make offers,” FPI chair Jess Arranza said.