Generating and distributing power and energy in an archipelago that’s situated in one of the most tectonically active and climate-volatile regions in the world is one tricky business. That’s why power producers and distributors in the Philippines maintain large fleets of personnel who are tasked to maintain and develop their production and distribution networks, as well as be on call 24/7 to respond to any contingencies brought on by numerous forces, whether natural or man-made.
As such, one would imagine that a power company’s roster of vehicles would consist of durable, do-it-all diesel- or gasoline-powered LCV workhorses such as pick-ups, vans, and SUVs to complement the specialized trucks designed for the sector.
Aboitiz Power Corp, however, just recently added electric vehicles (EVs) to its fleet roster. And with that comes the company’s strong statement of faith in the future of EVs in the country.
Last Aug. 31, AboitizPower launched its corporate EV fleet transformation program with the presentation of its newly acquired plug-in EVs in an event held in Quezon City. The launch kickstarted the power company’s support of Republic Act 11697 (the Electric Vehicle Industry Development Act, or Evida).
In my subsequent queries, I found out that these EVs were the fully electric BYD T3 4-wheeler vans. AboitizPower had initially purchased four of them, with two units to be deployed to its Davao Light, and one each to Visayan Electric in Cebu and to Cotabato Light. The vans will be used for substation management, meter department operations and other light operational duties.
Four EVs operating in a power company that’s nationwide in scale hardly make a dent, but AboitizPower is quick to clarify that this is merely the beginning. AboitizPower said that its roadmap outlines that 40 percent of its fleet will consist of EVs by the end of this decade, and 100 percent by the end of the next.
Evida requires industrial and commercial companies to maintain at least 5% of their fleets as EVs to help the local transport sector reduce its dependence on imported fossil fuels.
I asked AboitizPower about the usage life of the BYD vans. It replied that it “expects the service life of the vehicle and the battery to be approximately 20 years.” That would mean, by the time AboitizPower transforms its entire fleet into EVs by the early 2040s, these vans would still be in operation. Imagine that.
Given its long-term plan to convert its entire fleet to EVs, I asked AboitizPower about the bigger picture: Can the country’s energy sector supply clean (or renewable) power to all EVs when these vehicles become mainstream in both public and private use?
AboitizPower responded that it would be possible for EVs to be powered exclusively by renewable energy (RE) through the power purchasing choices made by vehicle owners. The company cited that if the EV is owned by a company that is considered “contestable,” they can purchase their electricity directly from retail electricity suppliers, and opt to purchase 100% RE. Thus, the company, including the EVs that charge through the power system of this company, would be powered by RE.
AboitizPower added, “Outside of this, the Philippine electricity system will remain a mix of thermal and RE sources for decades to come, and while society wants to have cleaner power, the transition to zero emissions electricity will take time—mainly because RE alone cannot yet provide sufficient, continuous and dispatchable electricity to power the whole country. In either situation there will still be benefits to cities and its residents on improved air quality. Case in point: Over 80 percent of air pollution in Metro Manila comes from motor vehicles with petrol and diesel internal combustion engines. Since EVs have zero tailpipe emissions, (this) will help reduce air pollution in cities.”
That statement also seems to address EV critics’ issue that using EVs would merely transfer the carbon footprint from tailpipes to power plants, since our power suppliers are still heavily dependent on fossil fuel sources of energy (e.g. coal, which still comprises 58 percent of the power generation mix as of 2021, per Department of Energy).
The fact remains that decarbonizing the transport sector, which is a major contributor of greenhouse gas (GHG) emissions, is part of the country’s climate commitments. Road transportation is estimated to account for 80 percent of the sector’s emissions, according to ADB’s Southeast Asia Development Solutions. Last year, the energy department estimated that there were about 9,000 EVs and 300 charging stations in the Philippines. Electric tricycles and motorcycles comprise the majority of EVs currently on the road, while electric cars, which are much more expensive than conventional vehicles, make up only 1 percent of the market.
AboitizPower also explained why it chose EVs over hybrids. “The choice of using plug-in EVs for the distribution units is in compliance with the Evida. Hybrid vans that meet our specifications are not yet commercially available.”
I asked, too, if AboitizPower intended to make the charging infrastructure of its EVs available to the public. “The EV ecosystem is large and there may be opportunities for companies like AboitizPower to participate such as EV charging, and perhaps even a future system wherein EV owners can become prosumers, where they buy and sell power to the power grid. However, these segments of the chain will require regulations and implementing rules, which do not yet exist, and thus we are studying these opportunities carefully.”
Finally, I asked them if the parent company Aboitiz Group was also addressing the issue of climate change from the perspective of the food sector, since the Group also owned Pilmico and Gold Coin, among Asia’s largest privately owned agribusinesses and involved in the development and manufacture of animal feeds. The AboitizPower team said that it wasn’t knowledgeable about this topic and unable to comment.
The ClimateLinks fact sheet showed that in the Philippines, 54 percent of GHG emissions come from the energy sector, with the rest attributable to agriculture, industrial processes, waste, and land-use change and forestry sectors. For the agriculture sector, specifically, GHG emissions have been attributable to the breeding, slaughter, and consumption of animal products such as cattle, buffalo, sheep, goats, camels, pigs and poultry. The “Livestock and Climate Change” published in one of the issues of World Watch magazine reported that livestock and their byproducts actually account for at least 32.6 billion tons of carbon dioxide (CO2) per year, or 51 percent of annual worldwide GHG emissions.
