Dennis Gasgonia

Article (news)

Raine Musñgi

ABS-CBN News

MANILA — One year after President Ferdinand Marcos Jr. vowed in his State of the Nation Address (SONA) to strengthen the country&#x27;s energy security, Energy Secretary Sharon Garin says the Department of Energy (DOE) has already passed one of its biggest tests: keeping the Philippines supplied with fuel despite the recent conflict in the Middle East that rattled global oil markets.But for Garin, successfully navigating the crisis also exposed a critical weakness that the country can no longer afford to ignore.Speaking on DZMM&#x27;s Gising Pilipinas ahead of the President&#x27;s fourth SONA, Garin described the government&#x27;s response to the recent Iran-related oil crisis as among the DOE&#x27;s proudest accomplishments during her first year in office, while urging the administration to institutionalize a National Strategic Petroleum Reserve even as it accelerates renewable energy projects nationwide. &quot;I think one of the biggest I&#x27;m proud of is how we went through the oil crisis... our emergency response,&quot; Garin said, referring to the supply uncertainties triggered by the conflict in the Middle East. She also cited the department&#x27;s aggressive push to fast-track major energy projects as another milestone during her first year as Energy secretary.<div><a href="https://www.abs-cbn.com/news/business/2026/7/24/energy-solutions-for-remote-rural-areas-1213">Energy solutions for remote, rural areas</a></div>A REAL-WORLD STRESS TESTThe recent escalation between Israel and Iran renewed fears of supply disruptions in the Strait of Hormuz, a vital shipping lane through which roughly one-fifth of the world&#x27;s oil supply passes. The uncertainty sent global crude prices higher and prompted governments worldwide to monitor potential supply interruptions.For the Philippines, which imports more than 90% of its petroleum requirements, the episode served as a reminder of the country&#x27;s vulnerability to geopolitical events beyond its borders.While domestic fuel supplies remained stable, Garin said the experience underscored the need to prepare for the next crisis rather than simply respond to it. &quot;Parang imbes na mag-improve ang sitwasyon, parang lumalawak pa (Instead of the situation improving, it seems to be expanding),&quot; she said, referring to evolving global risks.<div>FROM CRISIS RESPONSE TO LONG-TERM PREPAREDNESS</div>That experience has strengthened the DOE&#x27;s push for what Garin considers one of the country&#x27;s most important unfinished energy reforms: creating a government-owned National Strategic Petroleum Reserve.The proposal, which she said has already been discussed with President Marcos, would allow the government to build emergency fuel inventories that could be tapped during global supply disruptions or periods of extreme price volatility. <div><a href="https://www.abs-cbn.com/news/business/2026/7/24/philippines-secures-coal-supply-assurances-from-indonesia-1452">Philippines secures coal supply assurances from Indonesia </a> </div>&quot;Kailangan talaga may sarili tayong stocks (We really need to have our own fuel stockpile). Magtago tayo ng sarili natin (We should maintain our own reserves),&quot; Garin said.Unlike the United States, Japan, South Korea, India and China, which maintain government strategic petroleum reserves, the Philippines relies primarily on mandatory inventories maintained by private oil companies under the Downstream Oil Industry Deregulation Act of 1998 (Republic Act No. 8479). For Garin, the difference is significant.&quot;In case of emergency, hindi lang sa sigurado na meron tayo (It&#x27;s not just about making sure supplies are available), kundi at least nabili mo yan sa mura (it&#x27;s also about buying fuel when prices are lower),&quot; she said.She acknowledged that establishing such a reserve would require substantial government investment but argued it could be built gradually over several years.&quot;Hindi naman kailangan buong amount agad (We don&#x27;t need the full amount immediately). I-scale mo lang paunti-unti (Build it gradually),&quot; she said.Garin noted that nearly every global oil crisis has revived discussions about creating a national reserve, yet successive administrations have stopped short of implementing one.&quot;Every crisis, pinag-uusapan yan (Every crisis, we talk about it)... pero wala pa ring nangyayari (but nothing has happened). Ngayon dapat meron na talaga (This time, we really should establish one). Anything can happen again.&quot;Renewables continue to gather pace While strengthening fuel security has become more urgent, Garin said the administration is also making measurable progress in reducing the country&#x27;s long-term dependence on imported fossil fuels.During his 2025 SONA, President Marcos announced that nearly 200 power generation projects were under development and projected to provide electricity to about 4 million households and 200,000 commercial and industrial establishments.A year later, Garin said approximately half of those projects are expected to be completed by the end of 2026. <div><a href="https://www.abs-cbn.com/news/business/2026/7/24/diesel-gasoline-prices-seen-rising-steeply-as-july-ends-1147">Diesel, gasoline prices seen rising steeply as July ends</a></div>&quot;Within the year... aabot kami ng kalahati (We expect to complete around half of them) by the end of this year,&quot; she said.Among the flagship developments is Terra Solar, one of the world&#x27;s largest integrated solar-and-battery projects, expected to provide up to 3,500 megawatts of solar generation supported by around 4,500 megawatt-hours of battery storage. The DOE has attributed the accelerated timeline to closer coordination among national agencies, local government units and the National Grid Corporation of the Philippines (NGCP).&quot;We&#x27;ve been very aggressive... pina-fast-track lahat (We&#x27;re fast-tracking everything),&quot; Garin said.According to the DOE&#x27;s Philippine Energy Plan 2023-2050, the government aims to increase renewable energy&#x27;s share of the country&#x27;s electricity generation to 35% by 2030 and 50% by 2040, part of a broader strategy to improve energy security while reducing greenhouse gas emissions. Cleaner power, lower costs Garin said expanding renewable energy is also central to making electricity more affordable for Filipino consumers.&quot;One main factor talaga is generation (Generation is one of the main factors). Paano natin mapababa yung generation? (How do we reduce generation costs?) Kailangan yung mura, which is renewable... and some cheap baseload,&quot; she said. Still, she cautioned against expecting a single solution.&quot;Electricity kasi parang web... parang puzzle na different pieces (Electricity is like a web, a puzzle with many different pieces). Generation, transmission and distribution (You have to fix generation, transmission and distribution together),&quot; she said. The DOE has been working with the Energy Regulatory Commission (ERC) to review electricity supply contracts and policies as consumers continue to complain about high power rates.The next phase of the energy transition Beyond renewable energy expansion, Garin said improving electrification remains a priority, particularly in Mindanao, where household electrification is around 87%, compared with more than 90% in Luzon and the Visayas. The DOE is also prioritizing additional investments in the Visayas, Mindoro and Palawan to improve generation capacity and strengthen transmission infrastructure. <div><a href="https://www.abs-cbn.com/news/business/2026/7/22/ph-power-rates-seen-as-more-expensive-than-singapore-s-this-month-1846">PH power rates seen as more expensive than Singapore&#x27;s this month</a></div>&quot;If you want progress to come to Mindanao, kailangan more generation and better energization (we need more power generation and broader electricity access),&quot; she said.For Garin, the lesson from the past year is that renewable energy expansion and petroleum security are not competing priorities but complementary ones.The administration&#x27;s progress in fast-tracking renewable energy projects may reduce the country&#x27;s dependence on imported fossil fuels over time. But as the recent Middle East crisis demonstrated, the Philippines remains exposed to global oil market shocks -- a vulnerability the DOE believes can only be addressed by building a strategic petroleum reserve before the next crisis arrives.

A year after President Ferdinand Marcos Jr. vowed to strengthen the country's energy security, Energy Secretary Sharon Garin says the Department of Energy has already passed one of its biggest tests: keeping the Philippines supplied with fuel despite the recent conflict in the Middle East.

A year after President Ferdinand Marcos Jr. vowed to strengthen the country's energy security, Energy Secretary Sharon Garin says the Department of Energy has already passed one of its biggest tests: keeping the Philippines supplied with fuel despite the recent conflict in the Middle East.

SONA 2026: DOE cites Iran crisis response as key first-year achievement

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SONA 2026: DOE cites Iran crisis response as key first-year achievement

Raine Musñgi,

ABS-CBN News

Published July 25, 2026 08:42 PM PHT

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Sharon Garin

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