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Showing posts from May, 2025

On GDP size, exports, FDI, and electricity generation

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On GDP size, exports, FDI, and electricity generation March 18, 2025 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2025/03/18/659818/on-gdp-size-exports-fdi-and-electricity-generation/   In comparing the GDP size of countries, I use the purchasing power parity (PPP) values, not current values for two reasons. One is that PPP adjusts prices of a comparable basket of commodities that reflect varying standards of living in various nations, each of which has its own currency. And two, PPP values are consistent with electricity generation numbers, and these are in terawatt-hours (TWh), not in currency values.   For this column I have compared the data of major economies in the world plus ASEAN-5 in 2008 and 2023, 15 years apart. I took GDP size — the values of the flow of goods and services in one year — at PPP values, and compared it with levels of power generation, merchandise (or goods) exports, and foreign direct investment (FDI) ...

Philippine nuclear energy, soon please

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Philippine nuclear energy, soon please March 11, 2025 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2025/03/11/658303/philippine-nuclear-energy-soon-please/   A year ago, in early March 2024, I joined the Philippine Nuclear Trade Mission to Canada that was organized by the Canadian Embassy in Manila. The delegation was headed by Department of Energy (DoE) Undersecretary Sharon Garin, plus Science and Technology Undersecretary Leah Buendia, Energy Regulatory Commission Chairperson Monalisa Dimalanta, and Philippine Nuclear Research Institute Deputy Director Vallerie Samson.   Private sector participants included Ronald “Suiee” Suarez, Vice-President for Corporate Communications of Aboitiz Power (AP) along with Lino Bernardo and Nicole Yazon, also of AP; Froilan Savet, Vice-President and Head of Networks of Meralco; and Sebastian Quinones, Jr. of Prime Energy. Guy Boileau, Senior Trade Commissioner of the Canadian Embassy in Manila...

On Meralco rates and NGCP’s cost of capital

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On Meralco rates and NGCP’s cost of capital March 6, 2025 | 12:01 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2025/03/06/657373/on-meralco-rates-and-ngcps-cost-of-capital/   Former Energy Undersecretary and now “consumer advocate” recently attacked the Manila Electric Co. (Meralco) as being “unjust and unfair… charging households more than businesses,” referring to the lower rates for commercial and industrial customers compared to those of residential customers.   Petronilo Ilagan alleged that residential customers are subsidizing businesses. He used old numbers to make his argument, saying that residential customers pay “P1.8082 per kilowatt-hour (kWh) for 1-200 kWh users, P2.1187 per kWh for 201-300 kWh, P2.4116 per kWh for 301-400 kWh, and P2.9220 per kWh for those consuming over 401 kWh.” These were June 2022 numbers.   The most recent numbers are: P1.29/kWh for those consuming 201-300 kWh per month, and P2.09/kWh for those c...

PDUs vs ECs

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PDUs vs ECs February 18, 2025 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2025/02/18/653701/pdus-vs-ecs/   Last week, on Feb. 11, the Independent Electricity Market Operator of the Philippines (IEMOP) released the report, “Market Operations Highlights January 2025,” in a media briefing. They also released the monthly prices of the Wholesale Electricity Spot Market (WESM) from June 2021 to January 2025. For the purposes of brevity, I have used the comparative prices in January and June over four years. The prices show a declining trend.   In the power generation mix, coal remains the backbone of electricity production in the Philippines. Solar plus wind contributed only 2.2% of total generation in June 2022, 3.5% in June 2024, and 5.5% in January 2025 (see Table 1).     The anti-coal, pro-wind/solar environmental and business lobbies are misguided if they genuinely want the country to industrialize and create more jobs...

On the ERC rates reset and nuclear energy

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On the ERC rates reset and nuclear energy February 11, 2025 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2025/02/11/652275/on-the-erc-rates-reset-and-nuclear-energy/   Last week, on Feb. 3, the House Committee on Energy held a public hearing about a Meralco refund and an investigation on the absence of a rate reset in the last decade for Meralco and the National Grid Corp. of the Philippines (NGCP).   The main issues were previously reported here: “ERC amends resolution to keep Meralco regulatory reset on track” (BusinessWorld, Dec. 29, 2024), “Senate bill extending Meralco franchise OK’d on 2nd reading” (BusinessWorld, Jan. 29), and “Meralco to refund P19 billion to consumers” (Philippine Star, Jan. 29).   This column and reactions in BusinessWorld also discussed the same topic two years ago: “Low power supply and Meralco distribution cost” (April 3, 2023), “Response to Bienvenido S. Oplas, Jr.’s April 3 piece, ‘Low power ...

Trump’s energy and climate policies, opportunities for the Philippines

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Trump’s energy and climate policies, opportunities for the Philippines January 23, 2025 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2025/01/23/648225/trumps-energy-and-climate-policies-opportunities-for-the-philippines/   US President Donald J. Trump issued many executive orders (EO) on the first day of his second term. Below are some of those EOs that are related to energy and climate.   1. Putting America First in International Environmental Agreements. Section 3-a provides that the US “shall immediately submit formal written notification of the United States’ withdrawal from the Paris Agreement under the United Nations Framework Convention on Climate Change… The US International Climate Finance Plan is revoked and rescinded immediately.”   2. Declaring a National Energy Emergency. It provides for emergency approvals of permits, expediting the delivery of energy infrastructure, coordinated infrastructure assistance, and ...

More coal, more growth, cheaper electricity

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More coal, more growth, cheaper electricity January 9, 2025 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2025/01/09/645399/more-coal-more-growth-cheaper-electricity/   Two Asian countries have released their fourth quarter (Q4) 2024 GDP performance data: Vietnam’s GDP grew 7.55% and Singapore’s 4.3%. Vietnam’s full year 2024 growth was 7% and Singapore’s was 3.9%. All other major economies have not reported their Q4 data yet.   This cements Vietnam as the fastest growing major economy (those in the list of the top 50 countries with the largest GDP size) in 2024. Trailing Vietnam as the fastest growing major economies in the world according to their average growth in Q1-Q3 were: India, 6.6%; the Philippines, 5.8%; Taiwan, 5.2%; Malaysia, 5.1%; Indonesia, 5%; and, China, 4.9%.   What is noticeable about these seven Asian economies is that all of them are consumers of a great deal of coal. For instance, the coal/total (electri...

On gas power, Pacific Light, and coal

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On gas power, Pacific Light, and coal November 28, 2024 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2024/11/28/637736/on-gas-power-pacific-light-and-coal/   SINGAPORE — This small but very rich country is known for its bright lights at night, and huge indoor gardens and tall waterfalls featuring 24/7 lights and aircon like those at the Gardens by the Bay and the Jewell Changi airport, among others. The city-state has huge power generation per capita, about 10 times that of the Philippines.   Singapore is the most natural gas-intensive country in the world, with about 90% of its total power generated in liquified natural gas (LNG) plants, and another 10% generated from diesel. It has no coal or nuclear plants, no solar or wind farms. It is pure 100% fossil fuel power generation with competitive prices. It does not suffer from blackouts or power fluctuations.   Some Middle East Asia and North Africa countries — like Iran, Eg...

On the nuclear forum, and the link between nuclear energy and inflation

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On the nuclear forum, and the link between nuclear energy and inflation November 19, 2024 | 12:02 am My Cup Of Liberty By Bienvenido S. Oplas, Jr. https://www.bworldonline.com/opinion/2024/11/19/635645/on-the-nuclear-forum-and-the-link-between-nuclear-energy-and-inflation/   Last week I attended the “Philippine International Nuclear Supply Chain Forum 2024” at Solaire Resort North in Quezon City. It was organized by the Department of Energy (DoE) and ran from Nov. 13-15, but I attended only the last two days.   Held on Nov. 13 was the Opening Ceremony with Keynote speeches from DoE Secretary Raphael P.M. Lotilla, US Ambassador to the Philippines MaryKay L. Carlson, and Special Assistant to the President on Investment and Economy Affairs Secretary Frederick D. Go (who was represented by his Assistant Secretary Marvin Jason Bayang). Then there were discussions on the US experience in nuclear energy development.   Nov. 14 focused on the nuclear energy experience of Canada in...