AboitizPower President and CEO Manny Rubio Is Ready For the Next Phase of Our Energy Transition Journey

While the ambitions seem lofty at the moment, the Philippines' energy transition journey is progressing nicely. There's a greater awareness of a more sustainable future among companies, citizens, and even our leaders in government. The state has quietly made great strides, championing a future where renewable energy shares a bigger piece of the energy mix.

In the Department of Energy's Philippine Energy Plan 2020-2040, the country hopes to see renewable energy provide 35 percent of the power generation mix by 2030 and 50 percent by 2040. Policies like the Renewable Energy Act of 2008, the Feed-in Tariff mechanism, Retail Competition and Open Access, and the Green Energy Option Program have empowered RE. These also promote greater investments and better choices among consumers for all their energy needs.

Companies, too, have had a greater interest in RE investments as of late. And right there in the middle is AboitizPower. Its president and CEO Manny Rubio understands that it's going to take so much more.

"When taken individually, these efforts can only do so much," Rubio says. "There needs to be sustainable collaboration between the public and private sectors and all facets of society to realize our RE aspirations." Providing more incentives for renewable projects is key, too, as the AboitizPower chief points out.

Photo by Cyrus Panganiban.

Nevertheless, we’re in the long view here, considering that RE sources take time to build. Likewise, different forms of energy storage and the grid need to grow in size and scale, as well. This is why at the moment, the sector accommodates old and new forms of technology. The challenge now and in the future is for the energy system, with its ever-changing mix of components, to function flawlessly throughout the energy transition. This should only deliver benefits to the growing economy.

Of course, the acceleration of RE programs and facilities can also lead to unintended consequences, some of which AboitizPower has long been preparing for. One of the most glaring is space. To put things into perspective, one MW of solar PV installed capacity typically requires 1.2 hectares of land. The average farmer owns 1.29 hectares.

At last year's GIGA Summit, Rubio mentioned, "Embracing solar energy may inadvertently encroach upon the limited space available to small-scale family farmers, creating potential social issues and competing priorities between clean energy and food security."

In terms of transmission facility challenges, mismanaging the energy transition could mean transmission lags. Lags can especially be concerning, really. 

Lags lead to intermittent connection or spotty service, much like the gaps we experience with our cell phones or internet providers. In the industry, this situation is called "stranded assets." The lag happens when the growth, change, or development of the supply chain isn't coordinated or doesn't occur at the same time.

The problem occurs when the transmission system doesn't grow at a desirable pace expected in the supply and demand chain. "Rapid development in renewable energy may outpace the growth of transmission facilities, leading to bottlenecks and inefficiencies in delivering energy from generation points to end-users."

Beyond electricity generation, there is a need for more refined approaches to current limitations. AboitizPower, for its part, understands that a gradual and well-managed energy transition journey requires, of all things, better community-centered engagement and infrastructure development.

Photo by ABOITIZPOWER.

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The company plans to install more renewables in different parts of the country, as well as more battery storage capacities. The new binary geothermal plant in Tiwi, Albay, for instance, is part of AboitizPower's latest push for modern renewable power generation plants.

"This, in part, signals the growth of the country's RE capacity and the adoption of new and diverse energy generation technologies," adds Rubio. "We also look forward to more battery storage capacities coming on stream, which will work collaboratively with the greater penetration of variable RE in the country's energy mix."

A few more initiatives to watch more closely are the hydroelectric plants at Magat and Ambuklao and the geothermal plants at Tiwi and Makban. AboitizPower acquired these from the Philippine government under the EPIRA Law. Through privatization, the infusion of new capital, asset modernization, and professional management, these aging plants went from underperforming to productive clean power-generating assets for a new age.

Photo by ABOITIZPOWER.

Two years ago, its subsidiary, Aboitiz Renewables, also entered into a joint venture with global renewable energy company Mainstream Renewable Power to build a 90-MW onshore wind power project in Libmanan, Camarines Sur. The wind project marks a new chapter for AboitizPower, one that should help the company achieve a renewable portfolio of 4,600 MW by the end of the decade.

Other examples of the innovative features of AboitizPower's Distribution Utilities (DUs) include underground cabling, digital substations, EV transformation program, and smart meter installation. Mobile AP, meanwhile, is an app where DU customers can track their power consumption and even pay their electricity bills. These are all part of a renewed push for DU infrastructure modernization.

"Our dedication to clean energy extends beyond a singular focus," Rubio says. "We leverage a broad spectrum of renewable energy technologies strategically distributed across diverse locations. This drive for innovation fuels our exploration of novel solutions, including cutting-edge advancements like nuclear energy."

Photo by Cyrus Panganiban.

It takes a multi-faceted strategy for AboitizPower to move toward a sustainable future powered by clean energy. Complementing these efforts, as Rubio notes, are the company's community engagement and support arm, livelihood and education programs, as well as Disaster resilience initiatives.

He continues: "Collaborations with industry experts, engagement with local communities, and a forward-thinking leadership team ensure we are agile and responsive to the dynamic RE landscape."

AboitizPower is planning to build up more of its RE sources, like wind, solar, and generation technologies like liquified natural gas-to-power, to coincide with the country's overall transformation.

Among its latest major generation assets are facilities like the 1,338-MW GNPower Dinginin plant in Mariveles, Bataan. The said plant comes during a time when the grid was threatened by thinning power supply margins. This should only bolster economic prosperity. Through other thermal and RE assets, AboitizPower is dedicated to empowering the transition, as well as uplifting the lives of Filipinos around the country.

The Philippines needs reliable power to fuel the everyday lives of Filipinos today and in the future. This energy transition will take time and AboitizPower is, of course, an active contributor to growing more RE generation. In the meantime, the company looks to keep existing power systems, with both old and new tech, alive and well; this, all while investing in energy storage, modern distribution utilities infrastructure, and other new initiatives. 

"It is not a matter of doing one thing or the other—it's an and-and-and proposition, not either-or," Rubio concludes. "Our country needs all the energy it can get."