The extended energy emergency has forced the country to shift quickly to renewable and indigenous energy, which requires more investment. An investment Ombudsman may be needed to fast-track the entry of new capital.
Today, diesel prices increased by as much as P8.82 per liter and gasoline by as much as P4.88 per liter. This is driven by tightening global crude oil supply with the re-escalation of conflict in the Persian Gulf, especially in the Strait of Hormuz. As global crude oil prices hit $114 a barrel, coal prices are certain to rise.
This is certainly not good for the Philippines, which is dependent on imported fossil fuels – diesel and coal -- for electricity. Yesterday, the Cagayan de Oro Electricity Power and Light Company announced a new round of price hikes because of generation rate hikes as Mindanao gets more power from diesel-powered plants. The Mindanao Grid is 50% dependent on coal and 18% dependent on diesel.
Ironically, Mindanao is abundant in renewable energy sources. Historically, the island has been dependent on hydroelectric power. Its potential for other renewable energy sources, particularly solar, is enormous.
According to the climate and energy think tank Institute for Climate and Sustainable Cities, the solar power potential of Mindanao is staggering at more than 5 gigawatts from rooftops alone. The current installed solar power in rooftops is at 0.3%.
According to the Board of Investment, in 2025, pipeline investments for renewable energy were P5.2 trillion. There are, however, certain barriers to having these investments flow to build more clean, affordable, and secure power plants.
If the flow of investments goes unhampered, Mindanao should at least have 50% dependence on renewable energy in 2030. At present, renewable energy only accounts for 35% of the island’s electricity. We computed the needed new renewable energy generation to achieve parity between renewable energy and fossil fuels in 2030 to be around 1,400 megawatts.
The committed and indicative renewable energy projects in Mindanao are around 3,000 megawatts. Committed projects are those with financial closure; indicative projects are in the various stages of pre-development and financial negotiations.
In the 3rd Mindanao Clean Energy Forum in November last year, one of the calls to action from stakeholders is to hasten the process of approval of energy projects.
One of the things that could hasten this is the establishment of the office of the Investment Ombudsman. This would create clear and effective mechanisms to address problems encountered by investors in bringing in much-needed capital for energy projects.
The Investment Ombudsman is needed to address investment-related concerns and grievances – issues like delays, red tape, and other problems in transacting with government.
In simple terms: The Investment Ombudsman helps address investment-related problems and ensures that investor concerns are heard and acted upon.
Investors should feel that the government makes the process of bringing in investments fast.
The bottom line of having an investment ombudsman is the entry of more investments that create more jobs, increase domestic consumption of goods, and, in the field of energy – affordable, clean, and secure electricity.
- The writer is the Project Director of the Consumers for Renewable Energy Action in Mindanao and President of the Pinoy Aksyon for Governance and the Environment Inc.
