UMVA has learned that Philippine energy companies are bracing for a strong demand for electricity and fuel in the second half of the year, even as rising oil prices and supply risks tied to the Iran war threaten to keep pressure on costs and project execution.
Energy companies are prioritizing stable operations and careful fuel sourcing as volatility in global energy markets persists, with Meralco PowerGen Corp. President and Chief Executive Officer Emmanuel “Manny” B. Rubio emphasizing the need for a cautious approach. The company is focused on executing its strategy to navigate the challenges ahead.
Rising tensions involving Iran and the US have already created long-term effects that the energy sector will continue to manage in the coming years, with power companies facing higher fuel and shipping costs, as well as supply-chain risks for critical energy infrastructure. This uncertainty is expected to have a lasting impact on the industry.
Meralco PowerGen Corp. remains financially stable, having posted P5.1 billion in net income in the first quarter, and is prioritizing projects, particularly the MTerra Solar project, which is touted as the world’s largest integrated solar-and-battery facility. The company aims to keep projects on schedule despite the challenges.
The company, with a combined net salable capacity of 5,069.7 megawatts (MW) from conventional and renewable sources, aims to expand capacity to more than 10,000 MW by 2030. This ambitious goal is part of its strategy to meet the growing demand for electricity.
Regulatory changes have also opened up new opportunities for energy companies, with the retail electricity market now open to electricity users with demand of at least 100 kilowatts (kW), down from the previous 500-kW threshold. This change is expected to benefit companies like Meralco PowerGen Corp.
ACEN Corp. President and Chief Executive Officer Eric T. Francia says that uncertainty in global energy markets highlights the need to strengthen domestic energy infrastructure, particularly in the area of renewable energy. The company has about 7 gigawatts (GW) of attributable renewable energy capacity from operational, under-construction and committed projects.
ACEN Corp. remains on track to deliver about 1 GW of solar, wind and battery-storage projects under construction, with more projects expected to move into construction in the second half. The company is well-positioned to benefit from the growing demand for renewable energy.
Outside the power sector, fuel distributors and retailers are preparing for continued swings in oil prices and supply conditions, with Top Line Business Development Corp. Senior Vice-President and Chief Operating Officer Brigitte Carmel C. Lim citing increased uncertainty across the energy industry. The company is strengthening its depot capacity, importation capabilities and retail network to meet the challenges.
Despite the uncertainty, demand in the Visayas is expected to remain steady due to transport activity, tourism, trade and local commerce. Companies are adapting to the changing market environment, with a focus on resilience and flexibility.
