TAGUIG CITY – Department of Energy (DOE) Secretary Alfonso G. Cusi yesterday (24 February) participated in the third Virtual Economic Briefing (VEB) hosted by the Philippine Embassy in Washington, D.C., United States of America. 

Entitled “Towards a Resilient Post-Pandemic Economy”, the VEB seeks to boost economic relations between the Philippines and the United States by providing an avenue for key members of the public and private sectors to discuss potential cooperation areas. 

In his introductory remarks, Secretary Cusi invited US investors to invest in the Philippine energy industry, particularly in the renewable energy (RE) sector. 

According to the Energy chief, the Philippine Energy Plan 2020-4040, which outlines the country’s clean energy transition strategy, “opens up vibrant investment prospects” that have been further enhanced by “bold policies to increase the interest and participation of domestic and international investors”. 

He highlighted some of the Department’s RE initiatives, including, among others, the Green Energy Option Program, Green Energy Auction Program, Renewable Market, and the policy allowing for full foreign participation in large-scale geothermal projects under Financial and Technical Assistance Agreements. 

Secretary Cusi also talked about the opportunities in the energy efficiency and conservation space, where qualified energy efficiency projects have been incentivized in accordance with the Philippine Energy Efficiency and Conservation Act. 

He also mentioned the Department’s keen interest in alternative and emerging energy sources and technologies, such as small modular reactors, potential hydrogen utilization, and the entry of more e-vehicles in the Philippine transport sector. 

Joining Secretary Cusi in the government panel were Philippine Finance Secretary Carlos G. Dominguez III, Philippine Trade Secretary Ramon Lopez, US Trade and Development Agency Acting Director Ambassador Vinai Thummalapally, USAID Acting Assistant Administrator for Asia Ms. Karen Freeman, US International Development Finance Corporation Senior Advisor to the CEO Mr. Kyle Murphy, and US Department of State Deputy Assistant Secretary for Energy Transformation Ms. Anna Shpitsberg. 

###

I have been informed about, and have read, Senate Resolution No. 137 released this afternoon by the Senate based on the hearings conducted by the Senate Energy.

Once again, for the record, I assure everyone that I am ready to face any and all charges brought against me in the proper forum. I am prepared to explain and prove that all of the actions of the Department of Energy (DOE) regarding the sale and transfer of shares of Malampaya are legal, aboveboard and in accordance with the powers and mandate of the Department.

I am elated that this matter may now be brought before the proper legal forum where evidence, logic and reason are used as bases for determining whether or not an irregularity has been committed. That had not been the case at the Committee hearing where innuendoes, speculation and hearsay propagated by certain business interests dictated the course of the so-called “investigation”.

I find it unfortunate that the Malampaya issue has been politicized by those whose business interests must have been put in jeopardy as I stayed on course and performed my duties as Energy Secretary.

I call on the public to see beyond the politicization of the issue. I trust that, in time, I will be vindicated before the proper court of the malicious and baseless accusations heaped against my person and the DOE.

It is unfortunate that, in the course of the Committee hearings, Senator Gatchalian had chosen to lend his ear to those adversarial business interests. It was obvious in these hearings that Senator Gatchalian has sought to undermine the DOE’s ability to conduct a comprehensive evaluation of the proposal covering the said sale of shares.

It is even more unfortunate that the senator should persist in fueling a gross misunderstanding of the issues on the part of the public by unfairly labelling the recent developments on Malampaya as, quote-unquote, “defective, lutong macau and graft-ridden” which is an insult to the DOE officials and employees.

It is evident that the hearings were merely intended to force me out of office in order to frustrate and invalidate what are legally binding transactions involving ownership of shares of Malampaya contractors. 

At the end of the day, it is undisputed that SC38 or the Malampaya Deep Water Gas to Power Project continues to operate seamlessly and optimally despite the sale of shares.

I am elated that I now have the chance to be given my day in court.

Meanwhile, I would like to assure the public that I remain committed to discharging my duties as Secretary of Energy to the best of my abilities.

###

So, what is NGCP doing about it?

Increased demand for power during our hotter months, and reduced supply during these same dry months is an annual occurrence, and as System Operator and Grid Operator, the NGCP is very much aware of this  cycle. 

The DOE is spearheading efforts to bring the power industry together to work toward a wholistic solution. The NGCP is expected to perform their responsibilities that contribute to the  adequacy of supply, and more so this year as we will be holding national elections this summer. 

Hence, in addition to their public advisory, the  DOE is very interested to hear from them about the steps they have taken, or are taking, to address the situation, particularly in preventing the occurrence of a power interruption.   As SO and GO, have they ensured the following?

a.  That all capacities at all power stations are available;
b.  That all available capacities are connected;
c.  That all congestion issues are addressed;
d.  That the Grid Operating Maintenance Program (GOMP) was thoroughly planned;
e.  That  reserves are contracted from a separate pool of capacity for ancillary services which we can tap in cases of emergency.

I have already instructed our Power Bureau to look into these matters.

###

TAGUIG CITY—Department of Energy (DOE) Secretary Alfonso G. Cusi, last Thursday (6 January), appealed to His Excellency Arifin Tasrif, Minister of Energy & Mineral Resources of the Republic of Indonesia, to lift the country’s coal export ban, specifically to the Philippines. 

On 31 December 2021, the Indonesian Directorate-General of Mineral & Coal announced the ban for the entire month of January 2022 to avert a looming power crisis in Indonesia.  

In his letter, Secretary Cusi stressed the healthy economic cooperation between the Philippines and Indonesia and that Indonesia’s recent policy will be “detrimental to economies that (currently) rely on coal-fired power generation systems like the Philippines.”

According to the Energy chief, last year alone, the Philippines sourced 2.3 million metric tons monthly from Indonesia to fuel the country’s coal-fired power plants. “Power generated from coal comprises about 60% of the country’s power demand,” Secretary Cusi stated in his letter.

Secretary Cusi furnished Department of Foreign Affairs (DFA) Secretary Teodoro L. Locsin Jr. a copy of the letter, and requested the DFA to intercede and appeal on behalf of the Philippines, through the Association of Southeast Asian Nations (ASEAN) Cooperation mechanism. 

The DOE’s Electric Power Industry Management and Energy Resource Development Bureaus are scheduled to meet with the country’s coal power plant generators tomorrow (11 January) to discuss potential strategies and the way forward. 

###