THE Federation of Philippine Industries (FPI) has backed the Department of Energy’s (DoE) move to do away with a policy that sets a cap or a quota on the kind of technology to be used in building a power plant.

“[DoE] Secretary [Alfonso G.] Cusi’s pronouncements are consistent with FPI’s stand on certain issues, especially on supporting industrial growth by ensuring stable baseload power supply,” said Jesus L. Aranza, chairman of the federation.

Based on the DoE’s assessment, the Philippines requires 70% baseload power, which is provided by plants running on coal, natural gas and geothermal power on a 24-hour basis.

Around 20% will be needed from mid-merit plants, mostly running on natural gas that quick to switch on but costlier to operate than baseload plants.

Only 10% will come from peaking plants or mainly oil-based facilities and renewable energy resources such as wind and solar, whose output peaks at around the same time that the demand reaches its highest level.

The DoE under the previous leadership followed a 30% coal, 30% natural gas and 10% renewable energy as the fuel mix that the industry should aspire for.

Read more here.