The Philippines must rethink electricity distribution as a critical piece of national infrastructure as rooftop solar, battery storage, electric vehicles and other distributed energy resources reshape the power sector, a Meralco executive said.
Meralco Executive Vice President and Chief Operating Officer Engr. Ronnie L. Aperocho said distribution utilities can no longer operate primarily as providers of wires and metering services, stressing the need for a more modern, digital and responsive grid.
“We need to prepare for the transition from the traditional utility model into the distribution system operator model,” Aperocho said during The Manila Times Editorial Boardroom Roundtable, “EPIRA at 25: What needs to change to secure the Philippines’ energy future?” held on September 11.
“It is therefore incumbent upon us in the distribution sector to modernize and digitalize the grid and make it smarter through the implementation of cutting-edge smart grid programs,” he added.
Aperocho said the rapid growth of distributed energy resources, including rooftop solar installations, batteries and electric vehicles, is changing how electricity is generated, consumed and managed.
The shift, he said, requires distribution utilities to play a broader role in balancing supply and demand while ensuring that the grid can accommodate increasingly decentralized sources of power.
He also called for energy policies to move beyond the traditional focus on securing the lowest possible electricity cost.
Instead, reforms should pursue what he described as “least cost, reliable, resilient and sustainable energy,” noting that affordability must be balanced with the need to maintain a dependable power system.
“Affordability cannot come at the expense of reliability,” Aperocho said.
The roundtable was held as the country marked the 25th anniversary of the Electric Power Industry Reform Act of 2001, or EPIRA, which restructured the Philippine electricity industry.
Discussions centered on how the power sector has evolved over the past quarter-century and what reforms may be needed to strengthen energy security, improve reliability and keep electricity costs manageable amid changing technologies and consumer demands.
Joining Aperocho were Energy Regulatory Commission Chairperson and CEO Atty. Francis Saturnino Juan, Philippine Rural Electric Cooperatives Association Executive Director and General Manager Janeene Depay-Colingan, Philippine Electricity Market Corp. President and WESM Governance Officer Atty. Elvin Hayes Nidea, Partners for Affordable and Reliable Energy Chief Advocate Officer Nicolas Satur Jr., and other private-sector representatives.
