Transcript of Sen. Pia Cayetano's statements
October 9, 2024
Transcript of Sen. Pia Cayetano's statements
DOE Budget Hearing
October 9, 2024
Thank you, Mr. Chairman. Thank you, Senator Risa. Good morning, everyone. Senate President Pro Tempore, good morning. Welcome, Atty Jesse Andres to the world of energy. Like me, you are new to this. I at least will be listening more than talking. I was listening online before arriving here.
I'll just go straight to some of my questions. Good morning, Secretary. Good morning, everyone. I'll go straight to some of my questions, many of which are statements that come from the energy sector directly, and just confirmatory so that we can show our support.
But I'll jump into the last versus first, because I was just listening to the NEA presentation online and I told the Chairman, did I hear it correctly, because I was mobile, that the word you used was, we would be hard-pressed to reach the targets by 2028. And I recall that we did have a short discussion, was it barely a month ago? What were the figures? Is it 16 billion [69B], that you are targeting for full electrification? Tama ba?
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I remember, we said if we had been able to allocate 10B a year, then we would have covered it, right? And it's exactly the same proposal, the Chairman will recall, in DepEd, we gave the same similar proposal in the last administration. Over 6 years, we can make this happen, like really being disciplined to set aside this amount. Sadly, when you compress that to 3 years, then to 2 years, it doesn't seem feasible anymore. But if you could have really done that over the span of 6 years. I will do my best, with the support of course of the Subcommittee Vice Chair, to push for whatever we can in the remaining time.
But again, I come from my experience more in the education sector, which both of us do. It's a very similar problem kasi yung mga naiiwan is yung mga outliers, diba? Yun ang naiiwan. And to share a strange experience by analogy, when I went to Spain for a totally different topic, this was federalism, it was shown to us that they were very aggressive, I am not sure if it was funding from EU, on building roads, transportation, all over Spain. So it's achieved. But then, what happens is, you look back and they realized halos walang gumagamit kasi they are all outliers. How do you balance? It's really a question of balancing. If you have all the resources, then even one home in the hinterlands, you have to target them. But that is a question of balance.
Having said that, like I said, I'll run through this quickly so I don't waste everybody's time. Just nod and I'll ask that the record show that you nodded. You shook your head, disagreed. I think it's clear to us, it's in the PEP that our target is a shift to renewable energy, no?
I am gonna mention Sen. Risa's name because during her interpellation on the Natural Gas Bill, a big focus of her interpellation was to ensure that any plans we have on transition fuel or anything else does not derail our goal of going towards renewable energy. Let the records show that the Secretary is nodding his head. Feel free to add, but in the interest of time, if it's non-controversial, I'll just say you all agreed. Okay.
That being the case, and the other principle is we are promoting indigenous energy source. And I have to say this because for the last 5 years, I chaired the Senate Committee on Sustainable Development Goals, Innovation, and Futures Thinking. And my training requires that I look to the future and energy security is synonymous with indigenous. There is just no way that we can hope to achieve security when we're importing.
And the example I gave on the floor is agriculture. Who will say that the number one priority is to import rice? Who will say that? It happens because of a lack of supply or whatever. But at the end of the day, the goal is to strengthen our indigenous sources, whether it's agriculture, whether it's water, it's energy. I think that's a given, so I am just relaying the predicate for my statements moving forward.
And this is where my questions are about to come in, Secretary. This is the part where I may have missed it, so if I missed it, there's no need to repeat it. In your presentation, did you give an update on renewable energy projects? Was it given in the presentation? Because if it was, then it was. So we have a thousand plus pending renewable energy projects? That is correct? Okay a thousand plus. That's not bad at all.
And in order to promote the development of renewable energy, the DOE actually conducts green energy auctions, right? And you've done a couple of rounds? That is correct also? And this is something that I came across, I would say 10 years ago, because I actually had a personal friend who was trying to get into the energy sector. And I think this is a fact. Based on Department Circular 2024-06-0018, the DOE allows RE developers to commence permit processing, conduct surveys, and other feasible activities before the 25-year term begins, right? But a developer can actually secure their service contract and not do anything. That is correct, right? So parang they are parking it. Because as I said, this is something that was brought to my attention 10 years ago. They park it, they secure it, and then nobody else can develop. So what can we do about that? I mean, that's a problem, no?
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Okay. So it can be done through AI, then? Because another thing that I wanted to bring into the discussion, because my experience is more on health and education, I actually am more familiar with the technologies available, and obviously, we should. And if you need a budget for that, please present it so we can assist.
So there's a cleansing process. That's a clear issue that you are trying to solve. Because it will bog down our progress.
My next point is again, this is something that Sen. Risa brought up, but it's something that I also bring up all the time. It's also something that I learned when I became Chairman. We are all pro-solar, pro-renewable, and then you learn that, well, how do you store? How do you store these things? I think, Sen. Risa, I mentioned that during the hearing because that's the biggest issue. And so, speaking of storage, I understand, and again, to keep it short, one of the solutions is to upgrade the Philippine grid to a smart grid, so that it allows the installation of sensors and technology to manage the increased injection of renewables to the grid. Okay. So that can be done. How much does that cost, roughly? I just like to understand the magnitude of these expenses. Just a ballpark figure.
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Ten billion US dollars. Okay. Yun na nga. Because I like the public, I like the younger generation to understand. Because, renewable, sino bang may ayaw? But then, wow, 10 billion. I was gonna say, 10 billion, kaya natin yun. But dollars. Si Sen. Pro Tempore na lang ang maghahanap ng 10 billion dollars. But we have to find a way. And so then, the other available option is to strengthen the grid through the energy storage systems. To me, a layman, just like in the Committee on Health, I am not a doctor, I am not a health professional, I am also not an energy expert, so I am learning these terms along the way. The energy storage systems, one would be like a traditional battery. I was given a picture, mukha pala siyang 20-footer. Yung battery parang pinalaki mo lang. That's the storage facilities. That's one.
Apparently, in our PEP, it says that the capacity has to increase by more than 150 times in the next 25 years. That's quite an ambitious goal. Is that something that we can actually achieve? Yes, we can? Okay. Great. Okay.
Now the other is the pump storage hydropower or the PSH, right? And that is also doable? And tama ba na I understand that you've conducted green energy auction to get this done? But we're not done yet? What is the status? Ongoing? Do we have a timeline? Because I understand that there are just investors who are ready to get it done. And we need it because this will address Sen. Risa's and my concern, and all the other renewable energy advocates' concerns. Because we'll have the storage, which we keep on saying that is the problem why we cannot fully embrace renewables as fast as we want to.
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That's always the thing. This process, which takes long as it is, tapos ang tagal pa once you give, once it's awarded, once all the permits are cleared, it still takes a number of years. So, we have your commitment that we'll fast-track this, no? Okay. Thank you.
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That is where I'm about to look at Atty Jesse Andres and tell him that is one of the priorities I think we need to do. Because in everything, the goal is to make that shift to renewables and this is directly related to that. I hope we can get that done. I understand that there are things that have to be done on the side of ERC as well. Thank you.
My next line of questioning is on total electrification, which we have discussed and let's just see how we can move that forward. I reserve my questions for ERC because I'm about to schedule a hearing for EPIRA. So I do not take the time now of the budget hearing, most of my questions will just be posed there. Hopefully next week. Are you in town? Okay, perfect. Are you in town? You have to be there also. Okay, good.
I didn't think I'd have to ask this question but Sen. Risa and I are both advocates. We understand that sa DOE Secretary, we can still improve our compliance with GAD requirements. If we can be of any assistance. And I was trying to think, because you have to be very creative in using this fund. You can be very creative in using it. It's not just a matter of providing support for your female employees. I think, but we just have to get clearances. Years ago when I attended annually Women Parliamentarian Conference, we would have topics like women and technology, women and electrification. And I'm like, may ganun? They dissect it so specifically. And I'm listening to the experts and I'm like, wow, these different sectors affect women in different ways.
I'm thinking now when I saw this, that there might really be ways that we can improve the lives of women who basically run their homes, which need electricity, and use GAD funds somewhere there. Sen. Risa, we can probably put our heads together and help them come up with creative ways to make best use of this Gender and Development Fund. Nandyan na rin lang naman yun.
Actually, I do have one question for ERC pala. Apparently, there was a COA report that says that ERC was not able to prepare its plans, programs, and projects for senior citizens and persons with disabilities on time due to the delayed reconstitution of the new adhoc team. Tama ba? Only because, you know, these are the sectors that get left behind. It may seem like a minor concern.
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All right. Okay. And just as a standard procedure for me, if I can just get a copy of all your responses [audio cut] all the agencies, [we] have always been prepared to support your budgetary needs. But since I now chair it, kindly give me your wish list, all of you, as well, so I can work with the Chairman to try to find funding.
I think I'm okay for now, Mr. Chairman. I'll be listening and maybe add something towards the end. Thank you so much.
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