Rooftops, Not Rigs: Palawan Explores a People-Powered Energy Future

Highlights from the Skill Share on Advancing Transformative Energy for Palawan

Puerto Princesa City, Palawan — Civil society groups gathered this week for the Skill Share on Advancing Transformative Energy for Palawan, a timely conversation on how the province can move toward a just, community-centered energy transition.

Organized with partners including the Center for Energy, Ecology, and Development (CEED), the skill share created space to examine fossil fuel expansion, renewable alternatives, biodiversity protection, and the future of energy governance in Palawan.

At the heart of the discussions was a powerful vision: community-owned rooftop solar power grids.

 Rooftop Solar: Energy in the Hands of Communities

Unlike large solar farms that require vast tracts of land, the proposed model focuses on rooftop solar panels installed on the homes, schools, barangay halls, and small businesses of community residents.

This decentralized, community-managed system means:

• No land conversion
• No displacement of farmers or Indigenous Peoples
• No corporate monopoly over generation
• Reduced transmission losses
• Direct economic benefit to households

Participants emphasized that rooftop solar microgrids can be interconnected within barangays, creating shared battery storage and local distribution systems. This keeps ownership and decision-making at the community level.

For island and rural communities in Palawan that currently rely on diesel — often transported by barge at high cost — rooftop solar provides resilience during typhoons, fuel shortages, and price volatility.

As one participant shared:

“Energy security is strongest when power is literally on our own roofs.”

 LNG and Natural Gas: A False “Transition Fuel.”

The skill share also examined the Philippine government’s push for natural gas development under the Philippine Natural Gas Industry Development Act (Republic Act No. 12120). The law promotes natural gas — including Liquefied Natural Gas (LNG) imports — as a “transition fuel” to ensure energy security.

However, energy justice advocates strongly challenged this narrative.

Country’s Policy on Natural Gas: “Domestic Over Import”

Under Republic Act No. 12120, the State promotes natural gas as a transition fuel and prioritizes the development of local gas resources before relying on LNG imports. The policy frames gas as necessary for energy security and grid stability.

However, it was noted that “domestic over import” does not automatically mean “safe” or “sustainable.” Even locally extracted gas remains a fossil fuel. It carries climate, ecological, and health risks — especially for coastal provinces like Palawan, which host offshore service areas.

Other Service Contracts in the West Philippine Sea

Other exploration blocks have been awarded in areas offshore Palawan, including SC 72 and SC 75 (the Recto Bank/Reed Bank areas), though some projects have been suspended due to geopolitical tensions.

Participants emphasized that even when exploration zones are offshore, operational risks — such as spills, leaks, and shipping accidents — can directly impact Palawan’s marine ecosystems.

Protected Areas Near Service Areas

Palawan is not just another coastal province. It is home to globally significant ecosystems protected under the Strategic Environmental Plan (SEP) Law and the ECAN zoning framework.

Marine protected areas and ecologically sensitive zones potentially affected by offshore fossil fuel operations include:

• Tubbataha Reefs Natural Park (a UNESCO World Heritage Site)
• The Kalayaan Island Group marine ecosystems
• Coastal coral reefs and fisheries along northern and western Palawan
• Mangrove systems are critical for storm protection and fisheries breeding grounds

The discussion stressed that oil spills do not recognize political boundaries. Even if drilling occurs outside municipal waters, ocean currents can carry contaminants toward Palawan’s coastlines.

The 2023 oil spill in Oriental Mindoro — which affected parts of Palawan’s waters — was cited as a reminder that offshore incidents can devastate fisheries, tourism, and marine biodiversity far from the spill’s origin.

Malampaya Revenue Sharing: Who Benefits?

Malampaya has historically been one of the Philippine government’s largest sources of non-tax revenue.

Under the service contract structure:

• The government receives a 60% share of net proceeds.
• Contractors receive the remaining share to recover costs and earn profit.

A portion of the government’s share is allocated to the Energy Resource Development Fund (ERDF) and other national energy programs.

However, discussions highlighted ongoing questions about transparency and local benefit:

• How much revenue directly supports Palawan communities?
• Does extraction translate to improved local energy access?
• Why do many off-grid communities in Palawan still rely on expensive diesel despite decades of gas production nearby?

Discussions pointed out that while Malampaya gas supplies around 20% of Luzon’s electricity needs, many Palawan communities remain energy-insecure.

Ownership Transition and Accountability

The ownership of the Malampaya gas project has undergone significant changes in recent years. Originally operated by Shell Philippines Exploration B.V., Chevron Malampaya LLC, and PNOC Exploration Corporation, the project’s majority stake was acquired in 2021–2022 by Udenna Corporation through its subsidiary Prime Energy Resources Development B.V., led by businessman Dennis Uy. In 2023, however, control shifted following a major capital infusion by Enrique Razon Jr. through Prime Infrastructure Capital Inc., which now holds a controlling interest in Prime Energy.

This transition highlights broader governance questions surrounding transparency, financial capacity, and long-term accountability in managing one of the country’s most strategic energy assets. For communities in Palawan, changes in ownership do not alter the environmental risks associated with offshore extraction. What remains essential is clear public oversight, environmental safeguards, and equitable benefit-sharing — especially for a province that bears ecological exposure while much of the gas supply serves Luzon’s power grid.

The Risk Beyond Jurisdiction

One of the strongest messages during the session was this:

“Just because extraction is outside municipal waters does not mean Palawan is safe.”

Offshore drilling involves:

• Subsea pipelines
• Tanker traffic
• Platform operations
• Storage and processing facilities

Each stage carries spill and leak risks. In a province whose economy depends on fisheries, tourism, and biodiversity, even a single major spill could cause long-term ecological and economic damage.

Palawan’s identity as the country’s last ecological frontier makes the stakes even higher.

 LNG Is Still a Fossil Fuel

Liquefied Natural Gas is methane cooled into liquid form for transport. When burned, LNG emits carbon dioxide. But even more concerning:

• Methane leaks occur during extraction, liquefaction, transport, and regasification. Methane is over 80 times more potent than CO₂ in trapping heat over a 20-year period.
• LNG infrastructure locks the country into decades-long fossil fuel contracts.
• Expansion of LNG terminals increases shipping traffic and industrial activity in ecologically sensitive areas.

 Health Risks and Toxic Exposure

LNG facilities and natural gas operations have been linked to harmful emissions, including:

• Benzene and other volatile organic compounds (VOCs)
• Formaldehyde
• Nitrogen oxides
• Particulate matter
• Hazardous air pollutants known to increase cancer risk

Studies from communities near gas infrastructure globally show elevated risks of respiratory illnesses, cardiovascular problems, and potential carcinogenic exposure due to benzene and other toxic byproducts associated with gas processing and combustion.

Participants stressed that labeling LNG as “clean energy” obscures these health impacts — particularly for coastal and Indigenous communities living near proposed infrastructure.

 Lessons from Biodiversity Defense Campaigns

The second day of the skill share drew insights from campaigns protecting critical marine ecosystems:

• The Protect the Verde Island Passage campaign, supported by the Center for Energy, Ecology, and Development and allied groups
• Advocacy to defend the Tañon Strait from fossil fuel exploration

The Verde Island Passage is considered the “center of the center” of global marine biodiversity. Increased LNG shipping routes and fossil infrastructure threaten fisheries, coral reefs, and coastal livelihoods.

Participants reflected on how energy planning cannot be separated from biodiversity protection. Palawan, known as the country’s “last ecological frontier,” cannot afford development pathways that compromise its forests, seas, and protected areas.

 Critical Minerals and the Question of Mining

A vital question emerged: How do we address critical mineral demand in a just energy transition?

Solar panels, batteries, and renewable technologies require minerals such as nickel and copper — resources that the Philippines possesses.

The consensus was clear:

Mining should be limited strictly to what is necessary to meet domestic renewable energy production needs, particularly for building solar systems within the country.

It must not be driven by corporate profit targets.

When mining is guided by corporate income goals, extraction inevitably expands beyond societal need — leading to deforestation, water contamination, and displacement. A just transition cannot replicate extractive patterns under the guise of a “green” label.

Instead, participants called for:

• Strong environmental safeguards
• Free, Prior, and Informed Consent (FPIC) of Indigenous Peoples
• Transparent mineral accounting tied to national renewable targets
• Circular economy approaches (recycling and recovery)

 A Transformative Path Forward

The Skill Share concluded with a shared vision:

Palawan’s energy future must be people-owned, biodiversity-safe, and climate-responsible.

That means:

Rooftop community solar — not centralized fossil expansion
Energy planning rooted in ecological limits
Mining governed by public need, not corporate greed
Strong protection of marine and forest ecosystems

Palawan has long been called the Philippines’ last ecological frontier. The challenge now is ensuring its energy transition strengthens — not weakens — that identity.

The message was clear:

The cleanest energy is the one we own, manage, and protect together.