A think tank on Thursday stated that the Philippines should make the most of its renewable energy resources rather than relying on more expensive imported liquefied natural gas (LNG), which could subject customers to higher electricity costs.
This opinion was expressed by the Center for Energy, Environment, and Development (CEED) after the nation received its first LNG cargo last week at the import terminal of Atlantic, Gulf, and Pacific Co. (AG&P) in Batangas.
According to CEED executive director Gerry Arances, renewable energy is more environmentally benign, economical, and widely accessible across the nation.
The government is relying on LNG to deal with the impending power crisis, but Arances warned that this resource would result in further issues with cost and security.
On the other hand, the power distributor Manila Electric Co. (Meralco) and the San Miguel subsidiaries South Premiere Power Corp. (SPPC) and Excellent Energy Resources Inc. were involved in a pricing and procurement dispute during the time of AG&P's LNG acquisition.
The Ilijan and Batangas gas-fired facilities of the San Miguel firms were supposed to be the main recipients of regasified fuel from the AG&P terminal.
The process of converting LNG back to natural gas is known as regasification.
Meralco, SPPC, and Eeri both entered into power supply contracts totaling 2,470 megawatts, a vital source.
The SPPC agreement, however, was put on hold indefinitely because of pending appeals court litigation, while San Miguel last month abandoned its agreement with Meralco as a result of ERC delays.
