Priority on power grid modernization pushed

MANILA, Philippines — Infrastructure and governance experts urge the government to prioritize the upgrading of the country’s transmission grid to achieve national energy security.

InfraWatch PH convenor Terry Ridon, in a forum organized by the Stratbase ADR Institute, said the Energy Regulatory Commission should tighten oversight on the completion of these critical infrastructure projects, which would hopefully strengthen the electricity value chain and prevent higher electricity cost for consumers.

He cited various ways to address the critical issues surrounding the Philippine energy grid, which include ensuring the independence of regulatory agencies, developing clear and specific standards and performance metrics for energy companies to follow, and harsher penalties for non-compliance to these standards.

“This will serve as a strong deterrent for companies considering cutting corners or violating regulations. To further promote accountability, compliance data should be publicly accessible to promote transparency. This will allow the public to be informed about the operations of energy companies and their adherence to regulations,” Ridon said.

For Stratbase ADR Institute president Dindo Manhit, the government should work hand-in-hand with the private sector in pursuing a long-term energy exploration and transition objective, and open itself to domestic and foreign investments in infrastructure.

“This includes building more power plants, modernizing the electricity distribution system, expanding transmission networks, and enhancing energy storage. Energy cost and stability are a significant determinant of the level of interest of businesses to set up shop in the country. Investments mean jobs, income, spending power, technology transfer, and, ultimately, economic activity and growth,” he said.

Manhit emphasized that investment-driven growth will minimize the country’s vulnerability to external developments and enable itself to better assure Filipinos of a better quality of life.

“But this type of growth can only take place with energy security already in place. Thus, it is important that we address costs, stability, accessibility, and reliability of power anywhere in the Philippines at the soonest possible time,” Manhit said.