Climate-proofing energy infra: Unfinished business for PH

By Myrna M. Velasco – December 31, 2021, 5:10 PM
from Manila Bulletin

Looking through the lens of scientific literature, energy infrastructure facilities are seen most vulnerable with the impacts of death-dealing disasters – and this is a gospel truth that even climate change skeptics cannot rebuff.

From extreme human stress and suffering to the canary of economic paralysis wrought on the areas affected by super typhoon Yolanda in 2013, the recurring earthquakes and flooding up to the recent devastation wrought by typhoon Odette, the indicators are clear on the need for the country to seriously focus attention on climate-proofing most, if not all of its energy facilities.

In typhoon Odette’s battering before the Christmas holidays alone, the National Electrification Administration (NEA) already estimated roughly P19 billion worth of damage to the infrastructure assets of the electric cooperatives – and that figure does not include yet the wreckage on the facilities of the private distribution utilities (DUs) and even the crippling ravages on the transmission lines, substations and other facilities of system operator National Grid Corporation of the Philippines (NGCP).

Given the country’s fragility to bear up against hostile and extreme weather swings, “climate justice” has always been the battle cry of the Department of Energy (DOE) – primarily on the rostrum of global climate change diplomacy.

In the run-up to this year’s 26th Conference of the Parties (COP26) Climate Change Summit in Glasgow, Energy Secretary Alfonso G. Cusi renewed that call for the country to be afforded ‘fair play’ on compensation as well as on international climate finance packages, as he emphasized that “the Philippines is not a major emitter of greenhouse gases but bears the worsening impacts of climate change.”

For doing its share in improving planetary health, the Philippines is committing an ‘energy transition pathway’ that will fundamentally lean on renewables and other clean energy technologies (to include energy efficiency tech deployments), but the energy chief highlighted that ‘energy security’ will remain to be the country’s priority.

Whether or not that bellowing plea for ‘climate justice’ by disaster-risk vulnerable countries, like the Philippines, would just end up as another surfeit of bland statements, what the domestic energy leaders and planners ought to realize is – there is an urgent need to finally get these climate-proofing strategies, policies and regulations out from the darkness.

Solutions may not fit in consumers’ pockets

Back in 2018, the DOE issued a Circular requiring all energy sector players “to adopt resiliency compliance plans” that the department has targeted to integrate in the updating of the Philippine Energy Plan. To this date, however, it is manifest that the ‘enthusiasm for investments’ in energy infrastructure reinforcements and climate-proof upgrades had been anemic – primarily due to higher cost impacts; and consumers undoubtedly have little appetite to shoulder them in electric bills.

Within the core of the private distribution utilities (DUs), one solution they’re exploring would be to install underground power distribution systems, so perils of these facilities getting hit by storm-tossed tree branches or collapsing buildings during calamities could be avoided. But there’s a caveat: the cost could be four to five times more expensive than the conventional overhead lines that are now dominating the infrastructure build-up of the power utilities.

And on the industry players’ bid for investment perks to infrastructure upgrade or overhaul: government policymakers and regulators are still in that wavering line of balancing these solutions when it comes to affordability on the pockets of consumers.

At this stage, Atty Floresinda Baldo-Digal, commissioner of the Energy Regulatory Commission (ERC), noted that what power firms can count on is the regulator’s mandate that: “we need to allow recovery of their capex (capital expenditures). They will just need to file for approval.”

Moving forward, she divulged that the ERC will already give go-signal to “the capex of NGCP with design to withstand stronger wind velocity,” and on the part of the DUs and electric cooperatives, they are “allowed to design typhoon-resilient facilities.”

Congress also passed a law (Republic Act 11361) propounding subsidy system to bolster up the resiliency of DUs and ECs for them to thwart the devastating blow of natural calamities – but realistically, policy implementations are still on that ‘work in progress’ mode.

Need for policy prescriptive lever

Joe Zaldarriaga, vice president and head of Corporate Communications of power utility giant Manila Electric Company (Meralco), acknowledged that in terms of climate-proofing, “much has to be done in the power and energy industry, such as allowing DUs to invest more on modern technologies like the smart grid, development and implementation of new designs and standards that can withstand threats of high-speed winds and earthquakes.”

At the same time, he sounded off that there shall be “strengthening of business continuity management plans,” and that shall include building of redundant control centers and provision for additional inventories of materials and equipment.”

Fundamentally, according to the Meralco executive, “development and implementation of laws on power line corridor and allowing of distribution utilities to use undergrounding as a standard distribution facility will need strong policy and regulatory supports,” although he cautioned that such “may increase the cost of electricity.”

Zaldarriaga similarly zeroed in on the relentless predicament of power utilities when it comes to right-of-way (ROW) acquisitions, with him noting that this “contributes to potential challenges due to changes in design – such as in instituting new foundation and bigger sizes of poles; less spacing in between poles as well as on the procurement of new materials for electric poles.”

For Aboitiz Power, it stated that its DU-subsidiary Davao Light and Power Company is now “proactively exploring new and innovative technologies to better serve its customers.” The proof-of-concept that the Aboitiz utility firm had pioneered so far was the installation of its first underground power distribution system in May 2016.

“These are live case studies that can help guide policymakers on future regulations for improved resilience of our power distribution systems,” Aboitiz Power President and CEO Emmanuel V. Rubio said.

Across its facilities through the power supply chain, Rubio indicated “we began increasing wind resistance rating at our facilities,” particularly citing that in the cooling towers of its geothermal plants — while these were initially built by former owner National Power Corporation to just ride out 180 kilometers per hour (kph) wind speed, “AP now builds them to withstand 300 kph winds.”

The Aboitiz Power chief executive stressed “these are the types of standards and specifications that the DOE might want to consider, working with the private sector and climate scientists – to create data based on policy directions.”

On the whole, Rubio highlighted “these climate-proofing investments must be well-planned and executed,” and it shall integrate many present and future factors into consideration – chiefly but not exclusively, the creation of regulation, incentives and commercial stimulus to make these power system enhancements feasible and replicable.