26 July 2022article published in Manillastandard.net
Lotilla, a freshstart for the Energy Sector
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“It has beenestablished that the road to stabilize climate change is a dramatic reductionin global greenhouse gas emissions.”
Thisearly, President Ferdinand Marcos Jr. is showing how transparent hisadministration is. I can’t help but give him some credit for how he handlesappointments to his Cabinet.
Takethe case of Raphael P.M. Lotilla who has been appointed as Energy Secretary,although his official appointment has been temporarily withheld pending athorough vetting.
Ibelieve Marcos Jr. is consulting with his legal team on whether there is legaland ethical basis in appointing Lotilla to the position.
PressSecretary Trixie Cruz-Angeles in a recent press briefing said Lotilla was stillconsidered a nominee pending the clarification of his employment status.Lotilla is an independent director of Aboitiz Power Corp., and of oil and gasexploration and production firm ACE Enexor.
MarcosJr. wants to know if there is legal basis for Lotilla’s appointment since thereseems to be a conflict of interest.
UnderRepublic Act 7638 or the law creating the Department of Energy, “no officer,external auditor, accountant, or legal counsel of any private company orenterprise primarily engaged in the energy industry shall be eligible forappointment as Secretary within two years from his retirement, resignation, orseparation therefrom.”
Ilaud the president for his making sure all his appointees to his Cabinet willpass both legal and ethical yardstick.
TheDOJ, however, sees no legal obstacle to the Lotilla’s appointment, believinghis nomination “valid and lawful” even as Lotilla served as an independentdirector of Aboitiz Power Corporation and Ace Enexor.
“Theposition of the department is that the appointment should be valid given thatan independent director does not fall within those prohibited by the DOE Act of1992,” according to Mico Clavano, a lawyer with the DOJ Secretary Jesus Crispin“Boying” Remulla.
Thiscould be Lotilla’s second tour of duty at the DOE. He served as its chief from2005 to 2007 during the administration of former president GloriaMacapagal-Arroyo. He also served as president of the Power Sector Assets andLiabilities Management Corp. and deputy director-general of the NationalEconomic Development Authority.
I’mconfident that Lotilla is up to the task. He’s facing problems in the sectorwhich a person of his stature can find a solution to.
Isee the depletion of the Malampaya gas reserves and the country’s commitment tofinally rid its energy mix of coal as the two most pressing issues which heshould address with dispatch.
ThePhilippines vowed to lower greenhouse gas emissions in the county by 75 percentby 2030 . Of the 75 percent commitment, around 72 percent will be contingent onthe support of developed countries, and the rest will be executed usingnational resources.
InOctober 2020, the Department of Energy called for a moratorium on endorsing newcoal-fired power projects in a bid to shift to a more “flexible” powergeneration.
SantaBanana, I have pointed out time and again in this column that the best bridgeto a carbon-free future is Natural Gas, which the country has, but has nevertapped.
Inthe past, I found the lack of foresight and poor planning of the people taskedto ensure power stability in the country’s energy sector.
Thereis absolutely no plan B when Malampaya runs out of gas. This is certainly anemergency that needs to be addressed. Where on earth do we now source theamount of power the country would miss in the face of this dire situation?
Ithas been established that the road to stabilize climate change is a dramaticreduction in global greenhouse gas emissions.
Foryears, the accepted target has been the lessening of gas emission to 80 percentbelow 1990 levels by the year 2050. My gulay, to do this, we must eliminatealmost all use of fossil fuels.
Isee and agree that natural gas is an excellent bridge fuel.
Theinference is that we will harness it now, to realize short-term greenhouse gasreductions by replacing coal-fired power, then reduce or end reliance onnatural gas over some time to lock in long-term greenhouse gas reductions.
Letme just cite the reasons:
We would not have to face such an emergencyhad the Department of Energy assisted Energy World Corp. in having itsLiquefied Natural Gas hooked up with the existing transmission grid.
Yes, you read me right. EWC could haveprovided instant power to the Luzon grid had its appeal to piggyback on existingtransmission lines got all the government’s support.
Despite the technical and financialfeasibility of such an arrangement, the appeal was successfully opposed by TeamEnergy which ironically processes coal for power generation.
Santa Banana, his EWC project has had tohurdle protracted bureaucratic red tape and cold-shoulder support fromgovernment agencies tasked to ensure stability in the country’s energy mix.
The company is now building its owntransmission line and switching station to connect the plant to the main grid.
Once operational, EWC intends to install a 200megawatt steam turbine. Similarly, the final stages of development of its2-MTPA LNG facility are on track.
26 July 2022article published in Manillastandard.net Lotilla, a...
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