The Makati Business Club (MBC) proposed on Thursday that the executive department issue an order allowing a build-operate-transfer (BOT) scheme for the power grids.
MBC said this would allow third-party investors, whether private sector or government-owned and controlled corporations, to build needed transmission infrastructure and accelerate grid development, both of which are critical to achieving reliable, affordable renewable energy.
The organization said bottlenecks and challenges should be resolved through policy reform to ensure reliable, affordable and renewable power. It said one of the main issues is grid infrastructure as the Philippines has yet to achieve full electrification.
It said household electrification levels stood at 91.1 percent as of June 2023, and the Department of Energy (DOE) was seeking to achieve 100 percent electrification by 2028.
“Increased investments in grid infrastructure improve the development of renewable energy, and reduce long-term cost, by improving transmission efficiency,” MBC said.
Department of Energy Undersecretary Rowena Guevara said the MBC may be referring to the Office of the President to issue an EO that the agency proposed.
“Not BOT but advanced construction of transmission assets by RE developers and third party. These assets will be turned over to NGCP. System operation and transmission network operator is still NGCP,” Guevara said.
NGCP operates the power grid under its franchise and concession agreement with the government.
MBC said these improvements needed to happen at a faster pace given the growing interest of investors in the renewable energy industry.
It cited the 2024 Climatescope report by BloombergNEF which ranked the Philippines as the second-most attractive emerging market for renewable energy investment.
“MBC also advocates increased public-private partnerships in off-grid solutions to help the country finally achieve 100 percent electrification,” the group said.
