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KEY

MESSAGE

The current policy approach for energy in the Philippines is geared solely towards

available, reliable, and affordable supply rather than genuine energy security consistent with sustainable development—in spite of the fact that our body of energy laws are among the most progressive in the developing world. 

Philippine law and policy describes “development” as a delicate balance between equitable distribution of wealth, competitiveness, a healthful ecology and optimum opportunities to develop. 

 

The Philippine Constitution identifies development as a more equitable distribution of opportunities, income and wealth, through the promotion of industrialization and full employment.    It means being competitive in both domestic and foreign markets, making full and efficient use of human and natural resources, and giving all sectors of the economy optimum opportunity to develop.

 

Development, however, is qualified insofar as basic ideologies upon which the Constitution is built are respected. Among these are a person’s rights to health and to a balanced ecology, where the State must “protect and promote the right to health of the people,”     as well as their right to “a balanced and healthful ecology in accord with the rhythm and harmony of nature.”

 

These two aspects put together reflect an idea of development that is holistic, and not limited solely to that of economic development. While These two aspects put together reflect an idea of development that is holistic, and not limited solely to that of economic development. While economic development is indeed a goal as reflected in the Constitution, it must be done within a framework that reflects a more robust understanding of optimum development.

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There is a clear gap and inconsistency between the state’s aspiration towards “sustainable development” and “energy security” that creates “externalities”.

 

Economic development is inextricably linked to energy; the latter is deemed a necessary ingredient for the accomplishment of the former. Without energy – or electric power in particular – economic development remains limited. Policymaking in terms of energy in the Philippines tends to be focused primarily on energy supply and distribution, and has been more about meeting the demand for electricity than anything else. 

 

Energy security under Philippine policy highlights five components, namely widespread electrification, an adequate and continuous supply of energy, affordability, self-reliance and social and environmental compatibility. However, health and environmental concerns that arise from the sector – which may be considered to fall under the social and environmental compatibility component – are often referred to as externalities, and fall under the mandate of other government agencies, such as the Department of Health and the Department of Environment and Natural Resources, respectively. In practice, therefore, energy security is often perceived to pertain only to continuous and affordable power for all.

 

There likewise seems to be limited interagency cooperation in terms of decision-making on energy planning, which lies primarily with the Department of Energy. Input from the National Economic and Development Authority only comes in when government funds and exposure are involved. Private ventures solely fall under the jurisdiction of the DOE with very minimal to no intra-government involvement towards approval, with the exception of DENR. 

 

With regard to non-government actors, communities and other local stakeholders maintain that they have very little – if any – input in energy planning. This could be linked to the general exclusion of “externalities” in the planning process, given that such externalities are more immediately felt by these stakeholders.

Furthermore, there are very few integrated plans, studies or reports produced by government that comprehensively take into consideration such environmental, health, and social externalities of energy, so much more, coal.

 

Ultimately, there is still no single oversight body that ensures the integrity and coherence of coal-fired power plant development in the Philippines vis-à-vis broader economic and public concerns. There is, therefore, what seems to be a gap in the State’s definition of optimum development and development in the context of energy security.

Despite recent innovations, stakeholders feel that Philippine energy policy is still currently skewed in favor of coal-fired power plants.

Likely due to its longstanding status as a primary source of energy in the country, coal as a source of energy is perceived to have more mature and well-entrenched institutional arrangements to suit its needs. A strong lobby for coal is likewise said to further support its continued existence. 

 

In line with the perception of energy security as essentially enough power to meet usage demands, the EPIRA law may have inadvertently lent support to the predilection for coal by indicating a preference for “environment-friendly, indigenous, and low-cost sources of energy.”

The exclusion of comprehensive social and environmental aspects in the planning process then allows “low-cost” to take precedence as the primary criterion.

 

Despite references to self-reliance, there are no concrete policies that promote or incentivize the deeper exploration of other sources of energy, save for that of the Renewable Energy Act of 2008. Implementation of the RE Act, however, remains fairly limited.

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Other considerations must be taken into account in the planning process of energy development, given recent global developments.

The Philippines as a country has become more active in the international energy policy arena, indicating acceptance of and signing on to agreements or declarations that reflect a shift towards sustainable low carbon development.  Among these are its submission of Intended Nationally Determined Contributions (INDCs) to the United Nations Framework Convention on Climate Change (UNFCCC), its signing on to the most recent Asia-Pacific Economic Forum Ministerial Declaration on Energy and the United Nations’ 2030 Sustainable Development Goals.

 

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Art. XII, Sec. 1, 1987 Constitution

Art. XII, Sec. 1, 1987 Constitution

Art. II, Sec. 15, 1987 Constitution

Art. II, Sec. 16, 1987 Constitution

Sec. 37(b), Republic Act no. 9136

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