A NUMBER of business groups have backed the Department of Energy's (DoE) balanced energy policy, noting the need to balance energy security and affordability with climate change concerns to foster economic growth.

In a joint statement on Tuesday, the business groups led by the Management Association of the Philippines said the DoE's approach to fostering a balanced energy mix was vital given increasing energy demand.

"We, the undersigned business groups, applaud how the Department of Energy, under the leadership of Secretary Raphael P.M. Lotilla, has pursued an energy policy appropriate to the country's particular context, recognizing the importance of pursuing a balanced energy mix," they said.

"As an emerging market, the country must balance energy security and affordability with climate change concerns to support its economic progress."

The Philippines was said to have the third-lowest energy supply per capita in Southeast Asia, which highlights the urgent need to enhance power capacity.

Despite a government target to achieve a 50-percent renewable energy share by 2040, the group said a significant portion of the energy generation would still come from fossil-based sources.

"Energy insecurity is expensive. The power outage in Panay Island in January this year was estimated to have led to about P3.8 billion in economic losses for the province of Iloilo alone," it added.

The statement also cited a DoE advisory on coal-fired power plants that specifically targets new greenfield projects.

To recall, cause-oriented groups, including Sanlakas and Power for People Coalition, among others, filed a complaint against Lotilla for alleged violations of a coal moratorium policy.

The DoE, however, said the policy issued in December 2020 was not a total ban.

"The policy does not cover existing and operational coal-fired power generation facilities as well as any coal-fired power projects considered committed power projects," it said.

The department added that existing power plant complexes that already had firm expansion plans and existing land site provisions with signed and notarized land acquisition or lease agreement for the projects were also exempted.

The Philippine Chamber of Commerce and Industry earlier said that allegations from cause-oriented groups on violating a coal power project moratorium were unfounded.

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