Makati Business Club pushes for EO to fast-track grid dev’t
The Makati Business Club (MBC) is calling on the government to issue an executive order that allows a build-operate-transfer scheme for the country’s power grid infrastructure, amid efforts to accelerate investments and address long-standing bottlenecks in the energy sector.
In a statement on Thursday, the influential business group said that opening the grid system to third-party investors–whether from the private sector or government-owned and controlled corporations—is key to achieving a more reliable, affordable, and renewable power supply.
“The Makati Business Club advocates reliable, affordable and renewable power. To achieve this, bottlenecks and challenges must be resolved through policy reform,” it said.
The MBC said the state of the grid infrastructure is one of the main issues in the country, adding that the country has yet to achieve full electrification.
Citing government statistics, the group said that household electrification levels stood at 91.1 percent as of June 2023, with the Department of Energy aiming to achieve a 100 percent rate by 2028.
Despite that, the MBC said that investment in renewable energy has been outpacing grid spending since 2018 by an average funding gap of $200 billion. In this respect, the group cites data from the International Energy Agency.
Additionally, it noted a study by BMI Research [which is part of the Fitch Group] that as of 2023, the funding gap has reached an average of $328 billion.
Increased investments in grid infrastructure improve the development of renewable energy and reduce long-term cost by improving transmission efficiency, the MBC said.
“These improvements need to happen at a faster pace given the growing interest of investors in the Philippine renewable energy industry,” it added.
