Gov’t drafts fuel policy mix

MANILA, Philippines -  The Department of Energy (DOE) has already drafted a fuel policy mix that incorporates the use of liquefied natural gas (LNG), which is expected to be finalized by the end of the year, Energy Secretary Carlos Jericho Petilla said. 

“We already have a draft. It will be non-firm for now but at the same time it will be long term up to 2050,” he said. 

LNG is natural gas that has been converted into liquid for ease of storage or transport.

Petilla said the DOE is considering all aspects of the local fuel industry before issuing the final draft. 

“We are still finalizing it, looking at what we can incorporate into it,” he said. 

The DOE is taking into consideration the entry of a number of coal-fired power plants by 2020, Petilla said.

In finalizing the LNG mix, the Energy department is looking at the experience of other countries including the Consultation Document published by Hong Kong’s Environment Bureau. Hong Kong, which relies heavily on coal, is changing its fuel mix to create a cleaner environment, the document said.

In the document, a copy of which was furnished The STAR, Hong Kong’s Secretary for the Environment KS Wong said that whatever its fuel mix would be, electricity rates would likely increase. 

“Regardless of the fuel mix that we would collectively decided upon for Hong Kong, our electrify tariff will likely increase due to wider use of cleaner but more expensive fuel and as existing electricity generation facilities are to be retired. Nevertheless, we believe Hong Kong can afford to pay more for cleaner electricity in order to further improve our environment,” Wong said. 

One option Hong Kong is proposing is to increase the share of natural gas to 60 percent from 22 percent in 2012 and reduce the share of coal to 20 percent from 55 percent at present. 

The country’s power industry players are keenly awaiting the government’s policy on energy mix as they consider getting into the LNG business.