Energy independence is the new independence – DOE exec

By Rjay Zuriaga Castor

A Department of Energy (DOE) official warned that the Philippines’ heavy reliance on imported fuel and electricity inputs runs counter to the country’s pursuit of true independence and national security.

DOE Undersecretary Giovanni Carlo Bacordo said energy security should now be treated as a core component of national security, describing every locally produced megawatt and every reduced barrel of imported oil as part of a “modern declaration of independence.”

“Every megawatt of indigenous power we harness, every barrel of foreign oil we displace, and every local energy source we develop is a modern declaration of independence,” he said Friday.

“This is why energy security is no longer merely an economic concern. It is now a matter of national security. A country that cannot secure its energy future remains vulnerable to external shocks beyond its control,” he added.

Bacordo was the guest speaker at the Iloilo City government’s commemoration of the 128th Philippine Independence Day, marking the 1898 declaration of independence from Spain.

He said true independence extends beyond political freedom and must also include economic, food, and energy security — areas where the Philippines remains heavily import-reliant.

Bacordo pointed out that the country’s transportation sector remains almost entirely dependent on imported petroleum products such as gasoline, diesel, jet fuel, and lubricants, with only a small share of refined products processed locally.

He cited the country’s limited refining capacity, noting that the Philippines has only one major refinery, the Petron Bataan facility, which contributes around 30% of domestic petroleum product supply but relies entirely on imported crude oil.

He also compared refining capacities in the region, saying Singapore processes about 1.8 million barrels per day, Vietnam processes around 372,000 barrels per day, and other neighboring countries have significantly higher refining capacities than the Philippines.

The DOE official also raised concerns over electricity generation, saying a large portion of the country’s power supply is still sourced from imported coal and natural gas.

He said coal-fired power plants account for nearly 60% of the country’s electricity generation, while about 90% of coal supply is imported, with 97% of that sourced from Indonesia.

Bacordo warned that this level of dependence exposes the country to risks from diplomatic tensions and global supply disruptions, which could directly affect energy availability and pricing.

He also noted that natural gas supply is expected to tighten in the coming years, as output from the Malampaya gas field — once supplying a significant share of Luzon’s power needs — continues to decline and may no longer meet demand beyond 2027 or 2028.

Bacordo said the effects of global energy volatility are already being felt across sectors, including agriculture, transport, and basic services.

He noted that irrigation systems, farm machinery, food transport, hospitals, schools, banks, telecommunications, and government services all depend on a stable and affordable energy supply.

“When conflict broke out in the Middle East, the Filipinos felt it. The Ilonggos felt it. And we continue to feel it. We feel it at the gas pumps, in our monthly electric bills, in the rising cost of goods at the public market. This is not true sovereignty,” he said.

He said the DOE’s Philippine Energy Plan (PEP) 2023-2050 aims for the Philippines to achieve an over 40% renewable energy (RE) share in the total energy mix by 2030 and surpass 50% by 2040.

The PEP 2023-2050, the government’s long-term energy blueprint, also incorporates nuclear power and a gradual reduction of reliance on fossil fuels.

RE now accounts for 25% of the power generation mix, up from 22.3% in 2022, Bacordo said.

As of December 2025, the country has a total of 1,366 active RE projects, with 7.8 gigawatts (GW) of installed capacity and 139.4 GW of potential capacity, he noted.

The country’s peak demand during summer is close to 20 GW, while total installed capacity across all power plants stands at 32 GW, he said.

With the country’s RE potential of 139.4 GW — roughly four times its current installed capacity — Bacordo said the Philippines could move beyond meeting domestic demand.

“If we realize this potential, we will even be able to sell power to our neighboring countries. We should support our renewable energy projects,” he said.