2012-2030 - Phil Energy Plan

For inquiries, please contact:
Loreta G. Ayson, CESO I

Undersecretary
Jesus T. Tamang
Director, EPPB
Carmencita A. Bariso
Asst. Director, EPPB
Michael O. Sinocruz
Chief, Planning Division
Department of Energy
Energy Center, Rizal Drive corner 34th Street
Fort Bonifacio, Taguig City 1632
Tel. Nos: 840-2288: 840-1780: 479-2900 local. 223, 410, 288
Philippine Energy Plan
2012-2030
i
TABLE OF CONTENTS
Message from the Senator ii

Message from the Secretary iii
List of Tables and Figures iv
I OVERVIEW AND EXECUTIVE SUMMARY 1

II ENERGY SUPPLY AND DEMAND
A. Energy Situationer, 2011 13
B. Philippine Energy Outlook, 2012-2030 27
III ENERGY RESOURCE DEVELOPMENT
A. Fossil Fuels 40
B. Renewable Energy 49

IV DOWNSTREAM SECTOR DEVELOPMENT
A. Oil Industry Deregulation 67
B. Natural Gas Industry Development 79
V POWER SECTOR
A. Power Development Plan 86
B. Transmission Development Plan 101
C. Missionary Electrification 108
D. EPIRA Developments 118
VI SOCIALLY RESPONSIVE PROGRAMS
A. Expanded Rural Electrification 125
B. Benefits to Host Communities 130
C. Alternative Fuels 132
D. Energy Efficiency and Conservation 141
E. Energy and Climate Change 150
VII INTERNATIONAL ENERGY COOPERATION 155
VIII INVESTMENT PORTFOLIO 163

Department of Energy Officials 174
List of Acronyms 175
List of Units of Measurements 180
Conversion Table 181

ii i
MESSAGE FROM THE SENATOR MESSAGE FROM THE SECRETARY
In creating an enabling environment towards the countrys Addressing the conditions of high economic growth, volatile
viable and sustainable development, it is crucial that government energy prices and growing environment concerns, the the
improves the countrys access to energy. With the possibility of Department of Energy (DOE) is honored to be the vanguard in
energy shortages in the coming years, the consequences of not formulating policies and plans that will ensure adequate and
taking actions to address potential supply shortfalls would expose reliable supply of energy in all aspects of development. Toward
consumers and businesses to unacceptable risks, posing a big this end, the DOE envisions a scenario of energy diversification,
challenge to the countrys fragile economy. highlighting the deployment of clean energy and demand side
management leading to a low carbon future.
Thus, efforts are on-ground to provide a healthy mix of renewable
energy and conventional fuels in the countrys primary energy mix. The Department also looks after the continuity of energy
This will signal the countrys readiness to support its economic programs to sustain the progress of achieving its plans and
platform in the long-term. programs to complement the current energy situation, even
though institutional changes occur in the energy sector. Thus, at
Likewise, government is mandated to develop and establish the onset of the Aquino Administration in 2010, the DOE initially
ambitious long term energy goals that will ensure accessibility and crafted the Energy Reform Agenda (ERA) with the guiding vision
availability of energy supply over the next 20 years. Thus, the Philippine Energy Plan 2012-2030 of providing Energy access for more in an environment of transparency and good governance.
was launched to serve as the roadmap for a dramatic scaling up of countrys energy plans and The ERA is anchored on the overall goals of ensuring energy security, achieving optimal energy
programs to meet todays urgent energy challenges. The Plan ensures the optimum development pricing and developing a sustainable energy system. Beyond ERA, the Department formulated the
and use of the countrys clean and alternative fuels, alongside the conventional energy resources Philippine Energy Plan 2012-2030 to support the long-term transformation of the countrys energy
that remain indispensable in meeting the countrys energy independence goal. future towards sustainable development.
We in Congress believe that close collaboration between government and the private sector will The PEP 2012-2030 embodies the countrys major plans and programs, the prudent assessment
provide the necessary impetus in harnessing the countrys energy resources. Said partnership of energy trends and development, as well as the action agenda to respond to emerging and
should pursue innovations in energy technologies, diversification and expansion of energy foreseen energy challenges and issues within the planning period. Strategies are defined to address
production, promotion of environmental and safety consciousness, as well as promotion of social significant challenges such as continued vulnerability to energy supply disruptions, volatility of oil
welfare of the Filipinos. prices in the world market and mitigating environmental consequences. The Plan focuses on the
ramped-up development of renewable energy, accelerated indigenous energy resource exploration,
Despite the challenges ahead, through renewed zeal and dedication of everyone, we can propel our diversification of energy supply sources, promotion of energy efficiency and the full implementation
country to even greater heights. Mabuhay! of electricity market reforms that is expected to give millions of Filipinos the Power of Choice.
With the increasing concern on energy security attributed to the inevitably growing energy
appetite among nations, it is incumbent upon us to plan ahead with keen foresight taking into
account innovations in energy technologies, regional and international developments and
contingencies such as climate change impacts and disaster preparedness and management. Yet, we
emphasized that the energy challenge is not just for government alone to solve. We need enhanced
cooperation and coordinated efforts among private and public sectors, civil society, academe and
the international community. More than ever, the country is counting on every one to play an
Hon. SERGIO R. OSMEA III equally important role to pursue our strategic vision of providing a sustainable energy future for
Chairman, Committee on Energy the present and future generations of Filipinos to come.
Philippine Senate

CARLOS JERICHO L. PETILLA

Secretary
ii iii
LIST OF TABLES AND FIGURES Table 70
Table 71
Target Number of Sitios Based on NEAs Sitio Electrification
Projected Infrastructure Requirements, 2011-2020
Table 72 Approved E.R. 1-94 Projects, 1995 to July 2012
LIST OF TABLES Table 73 Summary of Approved Projects in E.R. 1-94
Table 74 Biodiesel Measurable Targets
Table 1 GHG Emission by Sector and Activity, 2010-2011 Table 75 Bioethanol Measurable Targets
Table 2 GHG Emission by Fuel, 2010-2011 Table 76 Bioethanol Plant Capacity Addition
Table 3 Targets of Low Carbon Scenario Table 77 NGVPPT (CNG Taxis) Measurable Targets
Table 4 Active Service Contracts Table 78 NGVPPT (CNG Buses) Measurable Targets
Table 5 Oil and Gas Measurable Targets Table 79 Auto-LPG Jeepney-Repowering Measurable Targets
Table 6 Coal Measurable Targets Table 80 E-Vehicle Measurable Targets
Table 7 ERC-Approved FIT Rates Table 81 National Energy Efficiency Program Actual Savings
Table 8 Renewable Energy Installed Capacity Table 82 Cumulative Potential Energy Savings by Sector
Table 9 Awarded RE Service Contracts Under R.A. 9513 Table 83 Initial Risk Assessment of the Energy Systems
Table 10 Summary of RE Resources, 2012-2030
Table 11 Geothermal Capacity Additions
Table 12 Geothermal Potential Resources LIST OF FIGURES
Table 13 Geothermal Measurable Targets
Table 14 Hydropower Capacity Addition Figure 1 Energy Intensities, 2000-2011
Table 15 Potential Hydropower Resource Figure 2 Energy Elasticities, 2000-2011
Table 16 On-Grid Installed and Dependable Biomass Energy, 2011 Figure 3 Energy Per Capita, 2000-2011
Table 17 Awarded Biomass Projects Under R.A. 9513 Figure 4 Total Primary Energy Supply Mix, 2011 and 2010
Table 18 Awarded Biomass Registration Certificate for Own Use, 2011 and First Semester 2012 Figure 5 Net Energy Products Importation, 2011
Table 19 Biomass Capacity Additions Figure 6 Refinery Production, 2011
Table 20 Biomass Potential Resource Figure 7 Electricity Generation by Fuel Type, 2010-2011
Table 21 Wind Power Capacity Addition Figure 8 Final Energy Consumption by Sector, 2010-2011
Table 22 Wind Power Potential Resources Figure 9 Total Final Energy Consumption by Sector, 2011
Table 23 Solar Power Potential Resource Figure 10 Total Final Energy Consumption of Fuel Type, 2011
Table 24 Ocean Power Potential Resource Figure 11 Energy Consumption of the Transport Sector by Sub-Sector, 2011
Table 25 Total Number of New Players Per Activity, 2011 Figure 12 Energy Consumption of the Transport Sector by Fuel Type, 2011
Table 26 Total Crude Oil Imports Figure 13 Energy Consumption of the Residential Sector by Fuel Type, 2011
Table 27 Total Petroleum Product Imports Figure 14 Energy Consumption of the Industry Sector by Sub-Sector, 2011
Table 28 Total Industry Petroleum Products Demand (Domestic and International Demand) Figure 15 Energy Consumption of the Industry Sector by Fuel Type, 2011
Table 29 Petroleum Product Exports Figure 16 Energy Consumption of the Commercial Sector by Fuel Type, 2011
Table 30 Number of Gasoline Stations, as of December 2011 Figure 17 Energy Consumption of the AFF Sector by Fuel Type, 2011
Table 31 Total Storage Capacity, 2011 Figure 18 GHG Emission by Sector and Activity
Table 32 Depot and Storage Capacity by Major Islands, 2011 Figure 19 GHG Emission by Fuel
Table 33 Comparative Prices, as of 26 September 2012 Figure 20 Socio-Economic Impact of GHG Emission Level, 2006-2011
Table 34 Technical Standards, 2010-2011 Figure 21 Total Primary Energy Supply by Fuel Type
Table 35 Critical Infrastructure Projects Figure 22 Total Oil Supply, Actual (LCS vs BAU)
Table 36 Installed and Dependable Capacity by Island Grid, 2011 Figure 23 Coal Supply, Actual (LCS and BAU)
Table 37 Installed and Dependable Capacity by Plant Type, 2011 Figure 24 Natural Gas Supply, Actual (LCS and BAU)
Table 38 Comparative Generation by Ownership/Utilities Figure 25 Total RE Supply, Actual (LCS and BAU)
Table 39 Electricity Sales and Consumption by Sector Figure 26 GHG Emission, 2011-2030
Table 40 Electricity Sales and Consumption by Grid Figure 27 Total Final Energy Consumption by Sector
Table 41 Comparative Demand by Grid Figure 28 Total Final Energy Consumption by Sectoral Share
Table 42 Luzon Energy Sales and Peak Demand, Average Annual Growth Rates, 2012-2030 Figure 29 Final Energy Consumption by Fuel, 2000-2030
Table 43 Visayas Energy Sales and Peak Demand, Average Annual Growth Rates, 2012-2030 Figure 30 Total Primary Electricity Consumption by Sector, 2000-2030
Table 44 Mindanao Energy Sales and Peak Demand, Average Annual Growth Rates, 2012-2030 Figure 31 Transport Energy Demand
Table 45 Committed Power Projects Figure 32 Industry Energy Demand
Table 46 Capacity Additions Figure 33 Residential Energy Demand
Table 47 Summary of Existing Facilities Figure 34 Commercial Energy Demand
Table 48 Status of First Wave PSP Areas, as of June 2012 Figure 35 AFF Energy Demand
Table 49 Number of Power Plants in SPUG Areas, as of June 2012 Figure 36 Sedimentary Basins in the Philippines
Table 50 Number of Power Plants in Existing Areas, as of June 2012 Figure 37 Coal Reserves of the Philippines
Table 51 Newly Commissioned SPUG Power Plants Figure 38 Coal Consumption, 2011
Table 52 SPUG Gross Power Generation Figure 39 Philippine Coal Operating Contractors
Table 53 SPUG Peak Demand Figure 40 Coal Areas for Offer
Table 54 Average Plant Operating Hours, January to June 2012 Figure 41 Geothermal Service Contract Areas
Table 55 Second Wave Areas for PSP Figure 42 Primary Energy Mix, 2011
Table 56 Peak Demand Forecast in SPUG Areas Figure 43 Oil Consumption by Region, 2011
Table 57 Percentage of Off-Grids by Planned Operating Hours Figure 44 Luzon Supply-Demand Outlook, 2012-2030
Table 58 Capacity Additions in SPUG Areas Figure 45 Visayas Supply-Demand Outlook, 2012-2030
Table 59 Small Island Grid Supply and Demand Forecast Figure 46 Mindanao Supply-Demand Outlook, 2012-2030
Table 60 WESM Registration Update, as of June 2012 Figure 47 Ideal Location of Power Plants in Luzon
Table 61 List of Privatized Generating Plants, as of June 2012 Figure 48 Ideal Location of Power Plants in Visayas
Table 62 Indicative Privatization Schedule for the Appointment of IPP Administrator Figure 49 Ideal Location of Power Plants in Mindanao
Table 63 Remaining Assets for Privatization, as of June 2012 Figure 50 Bohol Backbone Transmission
Table 64 Electrification Level by Island Grid, as of 31 August 2012 Figure 51 Proposed Leyte-Mindanao Interconnection Project (Phase 2)
Table 65 Electrification Level by Region, as of 31 August 2012 Figure 52 Coverage of SPUG Areas
Table 66 Electrification by Franchise Holder, as of 31 August 2012 Figure 53 PRES Mini-Grids in Masbate
Table 67 Household Electrification Level, as of December 2011
Table 68 Distribution of the Remaining Unenergized Barangays in ARMM
Table 69 Household Electrification Targets, 2012-2017
iv v
I. OVERVIEW AND EXECUTIVE SUMMARY
Guided by the overall vision of providing Energy Access for More, the 2012-2030 Philippine Energy
Plan (PEP) seeks to mainstream access of the larger populace to reliable and affordable energy
services to fuel, most importantly, local productivity and countryside development. The energy
sector, mindful of its role in promoting better quality of life for the Filipino people, will ensure
the delivery of secure, sustainable, sufficient, affordable and environment-friendly energy to all
economic sectors. In pursuit of this goal, the government will mobilize private sector participation
and involvement of other stakeholders to make power of choice a reality.
ENERGY REFORM AGENDA

The ERA has outlined the
following major pillars
as its overall guidepost
and direction: (a) Ensure
energy security through the
development of indigenous
energy such as renewable
energy and hydrocarbon
fuels (oil, gas, and coal);
(b) Achieve optimal energy
pricing in electricity and oil;
and, (c) Develop a sustainable
energy system through the
formulation and update of
national plans and programs
The 2012-2030 PEP is crafted with due on energy development, which are consistent
consideration and premium on the economic with the countrys economic development plans.
parameters sourced from the National
Economic and Development Authority (NEDA), The Presidents Social Contract
Development Budget Coordination Committee
(DBCC), National Statistics Office (NSO) and The PEP is guided by the Presidents
international references on energy such as Social Contract with the Filipinos. The
the World Energy Outlook of the International plans and programs of PEP are responsive
Energy Agency (IEA). For the medium-term, to the Social Contracts pillars: a) Anti-
the 2012-2030 PEP is basically anchored on corruption/ transparent, accountable and
the policy framework set in place with the participatory governance through our
formulation of the Energy Reform Agenda energy contracting rounds, Information,
(ERA). The ERA is consistent with national Education and Communication (IEC)
development directives such as the Presidents and public consultation activities; b)
Social Contract and the 2011-2016 Philippine Poverty reduction and empowerment of
Development Plan; and, responsive to long-term the poor through our programs on rural
(beyond 2016) global policy frameworks on electrification, energy efficiency and
energy such as the UN Sustainable Energy for conservation, and the provision of benefits
All Initiative and the APEC Green Growth Goals. to host communities; c) Rapid, inclusive
and sustained economic growth through
basically all our programs especially in
vi PHILIPPINE ENERGY PLAN 2012-2030 1

improving the supply of energy products as the International Year of Sustainable in 2030 and 45.0 percent in 2035 (based on C. Indigenous Energy Development Program
and services (both oil and electricity) Energy for all. This global initiative engages 2005 level) as aspirational goal; c) promote
nationwide to fuel the businesses and the support of all governments, the private energy efficiency; and, d) incorporate As energy demand is anticipated to grow
spur countryside development; d) Just and sector and civil society in ensuring universal low-emissions development strategies to significantly over the indicated planning period,
lasting peace and the rule of law starting access to modern energy services, double the economic development plans, among others. it is incumbent for the energy sector to pursue
with the efforts of the Department of Energy global rate of energy efficiency by reducing all means to develop the countrys indigenous
(DOE) in developing regional energy plans energy use (14.0 percent) in 2030, double To contribute to the attainment of these broad resources. In view of this, the Plan looks into a
such as the Mindanao Energy Plan (MEP) the share of and/or increase the share of policy and program frameworks, the DOE will highly diverse energy mix to fuel the Philippine
to serve as the regions energy roadmap; e) renewable energy in the global energy mix work on ensuring the implementation of the economy within the planning period. Even with
Integrity of the Environment and Climate from the current share of 15.0 percent. following plans and programs: the dawning of renewable energy development,
Change Mitigation and Adaptation with our the DOE recognizes the fact that the country
accelerated programs on energy efficiency, ASEAN Plan of Action for Energy A. Power Sector Development will remain dependent on conventional fuels
renewable energy and alternative fuels; and, Cooperation (APAEC) 2010-2015 for many years to come to address its growing
f) Gender Development, which is integrated The development plans on power systems, energy requirements. The Plan programs the
in relevant plans and programs. The PEP supports and contributes to transmission highways, distribution facilities conduct of energy contracting rounds as an
the regional action plans and targets as and missionary electrification provide the effective strategy to bring in critical investments
Philippine Development Plan (PDP) espoused in APAEC 2010-2015. APAEC platform to put in place long-term reliable power for the exploration, development and production
2011-2016 is the regional framework of energy supply, improve the countrys transmission and of local energy resources.
cooperation highlighting the role of energy distribution systems and attain nationwide
The energy sector contributes to the under the ASEAN Economic Community electrification. Specifically, the PEP highlights the D. National Renewable Energy Plan
PDPs goals of promoting inclusive Blueprint 2015. It aims to enhance regional implementation of critical power infrastructures
growth and poverty reduction. The PEP energy security and sustainability through to address possible power outages. Based on the With the global trend towards a clean energy
programs on ensuring energy supply aggressive implementation of action plans Plan, the government will concentrate its efforts future, the Renewable Energy Act was passed in
security and providing energization to the of the different program components on the completion of committed power projects, 2008 to fully harness the countrys renewable
countryside are integral components of (1) ASEAN Power Grid; (2) Trans-ASEAN as well as attract local and foreign investors energy potential such as geothermal, hydro,
the national infrastructure development Gas Pipeline; (3) Coal and Clean Coal to venture into indicative and potential power wind, solar, biomass and ocean. To guide the
agenda as contained in the PDP. These Technology; (4) Renewable Energy; (5) projects to include electrification projects. full implementation of the law, the National
energy commitments will support the Energy Efficiency and Conservation; (6) Renewable Energy Program (NREP) was
PDPs targeted outcomes of enhancing Regional Energy Policy and Planning; and, B. Fuelling Sustainable Transport Program launched on 14 June 2011 by President Aquino.
the countrys competitiveness, reducing (7) Civilian Nuclear Energy. The PEP includes the targets set under the NREP to
gaps in basic services, and improving As one of the biggest user of energy, the energy strengthen its energy security plan. Specifically,
environmental quality. Among the regional targets set in APAEC sector is mainly concerned on other alternative the NREP seeks to increase the countrys
to be achieved in 2015 are: (a) 8.0 percent options to fuel the transport sector. Thus, renewable energy-based capacity by 2030.
UN Sustainable Energy For All Initiative (aggregate) energy intensity reduction the PEP will pursue the implementation of the
Development based on 2005 level; and (b) increase share Fueling Sustainable Transport Program (FSTP) E. Energy Efficiency and Conservation Program
of renewable energy resources to total which seeks to convert public and private
Cognizant of the fact that the energy sector installed power generating capacity of the vehicles from diesel and gasoline to compressed With the escalating prices of imported fuels, the
is the biggest contributor of greenhouse gas region by 15.0 percent. natural gas (CNG), liquefied petroleum gas call for energy efficiency and conservation has
(GHG) emissions, accounting for about 49.0 (LPG) and electric power. Under the program, graduated from merely just a personal virtue to
percent of the worlds total, the PEP contains Asia-Pacific Economic Cooperation CNG buses are envisioned to ply throughout that of a national commitment. The PEP includes
the policies, plans and programs that will (APEC) Green Growth the country. It also includes the promotion of the National Energy Efficiency and Conservation
significantly contribute to the countrys electric vehicles for public transport and the Program (NEECP) as one of the centerpiece
transition towards a low carbon economy This Plan also adheres to the APEC Green increase in biofuels blends to 20.0 percent. strategies in pursuing energy security of the
an economy that generates minimal output Growth Goals which include the following: country and looks into it as a major solution to
of GHG emissions into the biosphere. a) rationalization/phase out of inefficient With the FSTP, the government hopes to reduce the energy challenges of the future. To lay the
fossil-fuel subsidies that encourage wasteful the carbon footprint from road transport in groundwork for a national energy efficiency
In December 2010, the United Nations consumption; b) reduction of aggregate the Philippines. It has been estimated that plan, the PEP recognizes the need for an energy
General Assembly declared the year 2012 (regional) energy intensity by 25.0 percent road transportation accounts for around 50.0 conservation law as a critical measure in
percent of the total air pollutants in the country. managing the countrys energy demand. The
2 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 3

proposed legislation aims to incorporate policies Crude oil importation dropped by 6.7 Power, the 21.3 MW CIP II diesel power plant, generator sets will be paid by the DU within
and measures to develop local energy auditors percent from 69.61 million barrels (MMB) and the 19.8 MW Green Future and 1.2 MW its franchise area. The reduction of the
and energy managers, establish the ESCO in 2011 to 64.94 MMB in 2012. Of the total Pangea biomass power plants. The uprating of power load requirements of the DUs with
industry, encourage the development of energy imports, around 79.4 percent was sourced Binga Hydro Electric Power Plant from 100 MW embedded generator will be transferred to
efficient technologies and provide incentives for from the Middle East, bulk of which or 45.9 to 125 MW also contributed to the increase. other DUs requiring additional supply.
the effective promotion of efficiency initiatives percent came from Saudi Arabia. On the
in the energy market sector. other hand, finished petroleum product In the Visayas, installed capacity stood at 2,448.0 Interim Mindanao Electricity Market
imports posted an increase of 18.9 percent MW, an increase of only 2.3 percent from 2011 (IMEM). The establishment of an electricity
F. Natural Gas Masterplan or 54.75 MMB from 46.06 MMB in 2011. level of 2,393.8 MW. Meanwhile, the dependable market in Mindanao is seen as a mechanism
Diesel fuel exhibited the largest growth at capacity went up by 3.3 percent from 2,036.8 to provide for a central dispatch and price
A complementary initiative to ensure the 35.7 percent. MW in 2011 to 2,103.3 MW in 2012. for available capacities. Transaction in the
countrys energy security is the review IMEM will only be undertaken during supply
and update of the Master Plan Study for the Local refinery production decreased by In Mindanao, ensuring enough power supply shortfall. Power generating companies with
Development of the Natural Gas Industry 10.5 percent from 67.37 MMB in 2011 to remained a major challenge with the island uncontracted capacities as well as DUs
in the Philippines. Said update includes an 60.29 MMB in 2012. This was due to the grids ever growing demand and with not and large users with available embedded
evaluation of the natural gas infrastructure maintenance shutdown of the two (2) much additional capacity coming in. In 2012, generating capacities may nominate/bid
requirements in the Visayas and Mindanao refineries. Average refining output in 2012 installed capacity was recorded at 2,049.3 MW to the IMEM their available capacities for
regions in view of the DOEs plan to implement stood at 164.7 thousand barrels (MB) per with minimal increase of 27 MW in capacity dispatch at approved bid price.
a Natural Gas Infrastructure Development day compared with 184.6 MB per day in the from previous year level of 2,022.0 MW. The
Plan in these regions. The Masterplan, with previous year. additional capacity was due to the commercial It is expected that starting second half
technical assistance from Japan International operations of 3.2 MW King Energy (oil-based of 2014 onwards to 2015 and 2016, new
Cooperation Agency (JICA) and World The countrys demand for petroleum power plant), the 9.2 MW Cabulig Hydro Electric capacities from committed power projects
Bank, evaluates the opportunities, critical products went up by 4.0 percent to 111.0 Power Plant, and the capacity expansion of will be on commercial operation to provide
infrastructures and required investments for MMB from 106.32 MMB in 2011. This Crystal Sugar (biomass) from 21 MW to 35.9 the needed power supply requirement of the
the development of the natural gas industry. could be translated to an average daily MW. grid.
requirement of 303.3 MB, higher than
ENERGY SECTORS PERFORMANCE previous years level of 291.3 MB. The government also came up with immediate Power Generation. Gross electricity
and short-term measures to address the generation in 2012 went up by 5.4 percent
The 2012-2030 PEP provides the big picture The power sector has always played a key capacity gap in Mindanao. One of the solutions from previous years level of 69,175.7
on how the energy sector will proceed towards role in driving the countrys economy. Its considered was the re-commissioning of the gigawatt-hours (GWh) to 72,299 GWh.
meeting its goals and mandate. The main stability and reliability are always of interest Iligan Diesel Power Plant which has a rated
chapters of the Plan highlights the 2011 vis-a- for a country that has an increasing trend capacity of 100 MW. Luzon grid generation posted an increase
vis 2010 accomplishments of the energy sector. with respect to its power demand. of 4.6 percent, while Visayas demonstrated
And to provide a more updated assessment, The other immediate measures that the a huge increase of almost 10.0 percent
specified below are major achievements for the Installed Capacity government considered to address the short- (15.0 percent in 2011) due to the 610 MW
period 2011 to 2012. term supply gap were: additional capacities from coal-fired power
Total installed capacity of the country increased plants to the grid. On the other hand,
There was an increase in primary energy by 6.0 percent in 2012 to 17,025.0 megawatts Interruptible Load Program (ILP). Designed despite experiencing suppressed demand
supply of 7.8 percent from 39.4 Million Ton (MW) from the 2011 level of 16,226.9 MW. to entice greater participation from the from capacity constraints, the Mindanao
of Oil Equivalent (MTOE) in 2011 to 42.9 different distribution utilities (DUs) with grid exhibited 4.9 percent improvement
MTOE in 2012. However, the countrys Among the major island grids, Luzon registered embedded generating capacities or those in generation which was attributed to the
energy self-sufficiency level in 2012 the biggest increase in installed capacity at 5.4 large users within their franchise areas relatively stable hydro facilities and from
declined to 56.3 percent from previous year percent from 11,811.1 MW in 2011 to 12,527.8 having backup generating capacities to contribution of biomass-based power plant.
level of 59.6 percent. Such reduction was MW in 2012. For the same periods, dependable utilize such capacities. Under this program, Generation from oil-based power plants also
attributed to a decreased share of natural capacity of the grid likewise increased by 4.8 the DUs with approved Energy Regulatory expanded on the same year.
gas and an increased importation of oil to percent from 10,824.4 MW to 11,348.7 MW. Commission (ERC) power rates will operate
meet the increasing domestic requirement Said increase was attributed to the commercial their embedded generating capacities, The countrys total generation from oil-
specifically for the transport sector. operations of 651.6 MW coal power plant of GN while the large users running their backup based power plants accelerated by 25.2

percent from 3,397.6 GWh in 2011 to 4,254.0 likewise rose by 26.8 contributing 250.5 21,010,890 households already provided been recommended for approval. Currently,
GWh in 2012. The increase in generation GWh. However, their combined share only with electricity. the DOE is monitoring and supervising 27
was evident in Luzon grid with 39.5 percent, stood at 0.36 percent to the total generation. Petroleum Service Contracts.
followed by Mindanao with 20.8 percent and The significant increase was driven by In the case of sitios, 87,474 out of the
Visayas with only 7.5 percent. Oil-based the biomass generation with additional 122,983 potential sitios had access to Considering that coal remains to be a leading
power plants were frequently dispatched in capacities from the commercial operation of electricity posting electrification level at contributor to the countrys energy supply,
Luzon to provide additional supply in view 19.8-MW Green Future, 1.2-MW Pangea in 71.13 percent. the government continues to optimize the
of the planned outage of the 612-MW (block Luzon and the capacity expansion of Crystal exploration, development, production and
A) Ilijan Natural Gas Plant for about a month Sugar in Mindanao. Missionary electrification is one of the utilization of indigenous coal reserves. In
and to meet supply requirement during major undertakings in the power sector. 2012, indigenous coal production (run-of-
summer months. On the other hand, to The overall barangay electrification level The Qualified Third Party (QTP) program mine) was recorded at 7.4 million metric
reduce supply constraints in the Mindanao in 2012 stood at 99.99 percent with only is implemented to open unviable areas tons (MMMT). Of the total coal production,
grid, generation from oil-based power plants six (6) remaining to be unenergized. These for private sector investment and provide Semirara Mining Corporation provided the
was expanded. barangays are located in the Autonomous integrated generation and distribution largest share of about 7.0 MMMT or 95.0
Region for Muslim Mindanao (ARMM), electric services to households without percent.
With additional generating capacity, specifically in the province of Maguindanao. access to power. In December 2012,
generation from coal increased by 11.5 Powersource Philippines, the first QTP Following the launching of PECR 4 for
percent from 25,342.2 GWh in 2011 Further to the goal of increasing electricity project in Barangay Rio Tuba, Bataraza coal in December 2011 which offered 38
to 28,264.9 GWh in 2012. Meanwhile, access, the government also focused its in Palawan installed and commissioned prospective coal areas, 57 out of 69 proposals
generation from natural gas dropped by electrification initiatives to cover households a biomass gasifier system and began were accepted. The Review and Evaluation
4.6 percent in 2012 from 20,591.3 GWh as well as sitios. It is envisioned that 90.0 operating eight (8) hours per day. Evaluation Committee has recommended the approval
in 2011 to 19,641.5 GWh. The decrease percent household electrification by 2017 of the second QTP application by the same of new coal operating contracts (COCs) for
was attributed to supply restriction from and 100.0 percent sitio electrification by energy company has been completed for 18 areas. As of 2012, the DOE monitors and
Malampaya as a result of maintenance 2015 will be achieved. the Malapascua Island, Daan Bantayan in supervises 68 COCs and issued a total of 84
shutdown in mid- July 2012, and the non- Cebu. The project will be providing 24/7 small-scale coal mining permits (SSCMPs).
operation of Ilijan Natural Gas Power Plant As of 2012, household electrification stood electricity services to about 800 households
due to scheduled outage on 18 November18 at 76.69 percent1 with 16,114,213 out of in the island. The NREP launched in June 2011 is the
December 2012. Contribution from energy sectors roadmap in the next 20
geothermal power plants improved by 3.1 Ongoing coordination has been conducted years to develop sustainable energy system
percent, providing 10,250 GWh in 2012 for the third QTP project under the Semirara and access to clean and green energy. It is
from previous years level of 9,942.3 GWh. Mining Corporation. The project is expected aimed at increasing the renewable energy
This was despite the decommissioning of to provide electricity to about 3,884 (RE) installed capacity to 9,525 MW (as
the 49-MW Northern Negros Geothermal households in three (3) barangays in the aspirational target), which is more than
Power Plant, On the other hand, generation island. double the 2010 level as base year.
from hydroelectric power plants registered
an increase of 5.7 percent from 9,697.5 GWh Crude oil production in 2012 stood at 1.64 In 2012, the DOE awarded 101 RE service
in 2011 to 10,252.1 GWh in 2012. Such MMB, 90.5 percent of which came from the contracts with total installed capacity
came from an increase in generation in the Galoc Field (producing about 1.48 MMB for of 2,565.94. Of the total, five (5) service
Luzon grid by 9.4 percent with the uprating the year). On the other hand, natural gas contracts are for conversion (with total
of Binga Hydroelectric Power Plant from production from Malampaya for the same installed capacity of 1,061 MW) to avail of
100 MW to 125 MW, and Mindanao grid year stood at 134.56 BCF with associated the incentives under the Renewable Energy
by 2.2 percent with the commissioning of condensate of about 4.75 MMB. Act. These RE Service Contracts are broken
Cabulig Hydroelectric Power Plant. Higher down as follows:
and relatively stable water level during rainy During the 4th Philippine Energy
Installation of PV systems at beneficiary areas
o Geothermal with eight (8);
months contributed to increased generation. Contracting Round (PECR) held in June
o Hydro with 53;
2011, the DOE received 20 bid proposals for
1 Household and sitio electrification level is based on NEAs o Biomass with seven (7);
Other renewable energy combined petroleum exploration from the 15 offered
December 2012 Energization Status. The figure for HH o Wind with six (6); and,
generation, such as wind, solar and biomass, only reflects those covered by electric cooperatives (ECs) areas. Of the 20 bid proposals, five (5) have
o Solar with 27.
and does not include those covered by private DUs.

For the period 2010-2012, service contracts in Batangas through a Memorandum of 2. With Xavier University in July 2012 A silver lining in energy management is
awarded already reached 258 comprising of Understanding (MOU) signed with DOE in on Bioethanol Production Potential of the promotion of energy efficiency and
215 new service contracts and the remaining June 2012. The viability of the proposed Different Cassava Varieties under conservation (EE&C) as a way of life for
were for conversion. FSRU is linked with the implementation of Northern Mindanao
Development Condition
of a Pilot-scale Cassava and Filipinos. Under
Filipinos. Under the the governments
governments NEECP,
NEECP, the
the Batangas-Manila (Batman 1) pipeline Bioethanol
Development Plan; of and,
a Pilot-scale Cassava country was able to save 4.79 MTOE in 2012.
the country was able to save 4.79 MTOE
As of 2012, after 14 years under a network. The results of the study will be Bioethanol Plan; and, This is about
in 2012. This14.6 is about percent
14.6higher
percentthan the
higher
deregulated downstream oil industry available in the first semester of 20132. 3. With the University of Philippines Visayas 2011 level
than the 2011 of 4.10
level of MTOE. Several Several
4.10 MTOE. sub-
environment, there is a total of 1,908 Foundation,
3. With the Inc. in August of2012
University on the
Philippines components of
sub-components of the program have the program have all
players engaged in various activities like On the other hand, the Philippine National project Visayas Foundation, Inc. in Augustfrom
Bioethanol Production 2012 contributed to the increase in energy savings,
all contributed to the increase in energy
Macro-algae and Socio-ecological such as the use of energy labelling and
marketing, distribution and storage Total Oil Company (PNOC) with assistance from on the project Bioethanol Production savings, such as the use of energy labelling
Implementations. efficiency standards, implementation of the
investment was estimated at PhP 42.60 JICA is conducting a feasibility study for from Macro-algae and Socio-ecological and efficiency standards, implementation
government energy management program,
billion. Batman 1 in 2013. Implementations. of the government energy management
There are 41 CNG public utility buses conduct of IEC activities and the calibrated
commercially operating along South Luzon program, of
phase-out conduct
inefficient of IEC activities
energy and the
technologies
The DOE has been continuously monitoring Meanwhile, the PNOCEnergy Corporation routes.
There To areenhance
41 CNG public for
incentives utility
CNG buses bus calibrated phase-out of inefficient
promoted by the Philippine Energy Efficiency energy
the activities of the sector to ensure (PNOC-EC) will replace the Mamplasan commercially operating
operators, the Department of Transportation along South Luzon technologies
Program (PEEP). promoted
by the Philippine
that there is adequate and stable supply CNG Refueling facility and put up a new routes.
and To enhance incentives
Communication for CNG its
(DOTC) signified bus Energy Efficiency Program (PEEP).
of petroleum products in the country. one in the Port Area of Batangas City under operators, the Department
preferential approval of franchise applications of Transportation As part of the PEEP, the DOE completed the
Information on the sectors activities such the Natural Gas Vehicle Program for Public and Communication (DOTC) signified its
for CNG-fed buses except for routes that pass As part of the
distribution of PEEP, 3.6 the DOE completed
million compact
as crude and product imports, exports and Transport (NGVPPT) pilot project. Said along
preferential Epifanio Delos Santos
approval of franchise Avenue (EDSA).
applications fluorescent
the distribution lamps of (CFLs)
3.6 through
million the compact188
costs, price movements, refinery production, CNG refueling stations are expected to be Likewise,
for CNG-fedthe busesMetropolitan
except for routes Manila that congressional
fluorescent lamps districts (CFLs) and 51 through
party list
the
industry demand, distribution and inventory operational by 1st quarter of 2014. Development (MMDA)
pass along Epifanio Delos Santos Avenue granted exemption to representatives.
188 congressional districts and 51 party Further, CFLs were also
levels have also been maintained to promote CNG buses under
(EDSA). Likewise, the Metropolitan Manila the the Unified Vehicle distributed to the disadvantaged
list representatives. Further, individuals,
CFLs were
fair and healthy competition in the sector. In the promotion of alternative fuels for Volume
Development Reduction Scheme. (MMDA) granted
Authority families and communities
also distributed to the disadvantaged under the
Department of Social Welfare and
the transport sector, total production of exemption to CNG buses under the the Unified individuals, families and communities
Meanwhile, the Auto-Liquefied Petroleum Developments (DSWD) National Poverty
An Independent Oil Price Review Committee biodiesel in 2012 reached 137.88 million Vehicle Volume Reduction Scheme. under the Department of Social Welfare
Gas (Auto-PLG) Repowering Program has Reduction Strategy and Countryside
(IOPRC) was formed in 2012 to study if there liters, while that of bioethanol was at 32.44 and Developments (DSWD) National
benefitted the public transport through lower Partnership.
is accumulation of excessive profits and million liters. The DOE issued a Certificate Meanwhile,
fuel the Auto-Liquefied
cost of about PhP15.00/liter (LPG Petroleum cost Poverty Reduction Strategy and Countryside
unfair pricing. The final report of the study of Registration to one (1) biodiesel plant Gas (Auto-LPG) Repowering
compared with conventional gasoline fuel). Program has Partnership.
As part of the Bright Now! Do Right! Be
was submitted to DOE in August 2012 with (Philippine Biochem Products, Inc.) in May benefitted the public transport
The program was able to facilitate the through Bright! Campaign, the DOE in partnership
the following major findings, among others: 2012 with total capacity of 12 million liters lower fuel costof of 321
establishment aboutaccredited
PhP15.00/liter auto-LPG (LPG As part
with ADB oflaunched
the Bright the Now!
Watts Do Out!
Right!TV
Be
per year. cost compared
conversion shops. with
conventional gasoline Bright! Campaign,
Olympics the DOE
in August 2012 in partnership
to demonstrate the
o Oil Deregulation Laws goals of fuel). The program was able to facilitate the most
with energy
ADB launchedefficient technologies
the Watts available Out! TV
increased competition and fair price In terms of utilization on the mandatory On the Electric Vehicle Program, there are 20
establishment of 321 accredited auto-LPG in the local in
Olympics television
August 2012 market. The Watts Out!
to demonstrate the
(lower than in an oligopoly) are being use of 2.0 percent biodiesel blend and 10.0 e-trike
conversion units shops.
in Mandaluyong City as pilot activity
most energy sought efficient
to demonstrate
technologies the impact
availableof
achieved; percent bioethanol blend, total actual sales project to assess the techno-economic the
in the appliances
local televisionpower market.
consumption The Watts to the
Out!
o Deregulation has resulted in increased in 2012 for biodiesel stood at 137.47 million viability
On theof electric-powered
Electric Vehicle Program, tricycles. there
Under are monthly electricity
activity sought to demonstrate the impact bill. Television
responsiveness of local pump prices liters, while for bioethanol about 38.89 the ADB Loan Assistance Program, 100,000 e-
20 e-trike units in Mandaluyong City as a manufacturers participated in
of the appliances power the activity and
consumption
trike units will be purchased to replace two- displayed their most efficient 32-inch CCFL-
(Metro Manila prices) to world oil million liters (including inventory). pilot project to assess the techno-economic to the monthly electricity bill. Television
stroke tricycle units thereby reducing and LED-backlit Liquid Crystal Display (LCD)
prices; viability of electric-powered tricycles. Under manufacturers participated in the activity
petroleum consumption and achievjng lower models. The power consumption of each of
o Pump price response to changes in the The DOE collaborated with the academe on the ADB Loan Assistance Program, 100,000
emission level. In November 2012, the loan
world oil prices have been symmetrical; several biofuels projects to wit: e-trike units
negotiation will bethe
between purchased to replace
government and
and, two-stroke tricycle units
ADB was concluded. Subsequently, the thereby reducing said
o Oil companies profits are reasonable. 1. With Mariano Marcos State University petroleum
loan consumption
was approved by the and achievjng
ADB Board on lower
11
(MMSU) in May 2012 on Village Scale emission level.
December 2012. In November 2012, the loan
To develop the downstream natural gas Production of MMSU Hydrous Ethanol as negotiation between the government and
industry, Pilipinas Shell conducted a Feedstock for R & D in Biofuel Trials and A ADB silver was concluded.
lining Subsequently,
in energy management said
is the
technical feasibility on the installation of a Anhydrous Ethanol Production; promotion
loan was approved of energy by the ADB efficiency
Board on and
11
Floating Storage Regasification Unit (FSRU) conservation
December 2012. (EE&C) as a way of lif e for
2 Completed in July 2013
PHILIPPINE ENERGY PLAN 2012-2030 9

and displayed their most efficient 32-inch The transport sector will account for the biggest Coal consumption will also continue to grow at the planning horizon. The share of natural gas
CCFL- and LED-backlit Liquid Crystal Display share at an annual average of 35.5 percent to an annual average rate of 7.8 percent. On the in LCS is about 10.3 percent with a projected
(LCD) models. The power consumption of the total energy consumption, and will post an other hand, biomass consumption is projected annual growth rate of 6.9 percent. Thus, it
each of the television model was monitored annual average growth rate of 2.9 percent. The to decrease over the planning period due to the is critical to put in place vital infrastructures
during the course of event. industry sector follows next with an average shift to more efficient fuel. such as gas pipelines and LNG terminals for the
share of 33.7 percent and will exhibit the fastest development of the natural gas industry.
In September 2012, a total of 223 households growth at 5.1 percent annual average rate. Total primary energy supply will grow at an
were energized in the provinces of Antique Commercial, agriculture and residential sectors annual average rate of 3.4 percent to reach 73.9 The updating of the Master Plan Study for
(61), Aklan (29), Palawan (57) and Davao will post average growth rates of 2.7, 0.8 and -0.6 MTOE in 2030 under the BAU. In comparison, the Development of the Natural Gas Industry
del Norte (76) through the free installation percent, respectively, for the planning horizon. the growth rate of total energy supply in LCS will in the country has been completed in March
of efficient technology demonstration be higher by 2.0 percentage points. Such is due 2012 through the technical assistance of
package. The package includes six (6) Oil will still be the major fuel accounting for to the utilization of more RE resources, such as JICA. Meanwhile, a complementary study was
pieces of LED lamps, lockable battery, an average share of 43.5 percent of the total hydro, geothermal, wind and solar, contributing conducted by World Bank on the feasibility of
mounting structure, charge controller energy demand. Such share of oil is lower about 37.3 percent average share to the total supplying natural gas in Mindanao, which was
with built-in AM/FM radio and outlets for than 2011 level of almost 50.0 percent share. energy supply. completed in June 2012. The WB study reviewed
mobile phone charger using photovoltaic This is attributed to target increase in biofuels the current and existing LNG transportation,
solar home systems in lieu of kerosene and blends (20.0 percent for biodiesel by 2025 and Oil and Oil Products receiving, storage and regasification approaches,
candles. bioethanol by 2020), the increase in the number including analysis of a suitable LNG terminal
of CNG buses and taxis, and the entry of electric For the planning period, oil will still be the site in the region. Further, the WB study also
The DOE, in partnership with JICA, conducted vehicles starting with e-trikes. primary fuel source with an average share of revisited the identified LNG sites in the Bataan
the Development Study on Energy Efficiency 28.2 percent to the total energy supply and with peninsula. Another WB complementary study
and Conservation for the Philippines. The For the transport sector, about 42.0 percent of an average growth rate of 2.1 percent in the BAU titled Mindanao Natural Gas Development
study provided a concept design for the the total energy demand of the sector is diesel scenario. However, under LCS, the share of oil Strategy was also conducted with the primary
proposed legislation on energy efficiency followed by gasoline with 28.4 percent average is expected to decline contributing an average goal of determining the regions possible access
and conservation share. With increased biofuels blends and the of 27 percent share at an annual moderate to the international gas market.
target increase in the number of CNG buses and growth rate of 1.9 percent on the average.
ENERGY OUTLOOK taxis to 15,000 and 16,000 units, respectively, This is attributed to increased penetration of A Downstream Natural Gas Industry Law will
and e-vehicles to 230,000 units nationwide alternative fuels and renewable energy. also be filed in the 16th Congress to provide
For this PEP Update, two (2) scenarios were by the end of the planning period, significant the regulatory framework and incentives
developed for the supply side the Business-as- amount of oil consumption (diesel and gasoline) The domestic upstream sector targets to harness to prospective investors. Infrastructure
Usual (BAU) and the Low Carbon Scenario (LCS). will be displaced. The LPG for transport is potential oil and gas fields through the awarding development is strategic to ensure the supply of
The BAU scenario simulates the future energy also seen to increase over the planning period of 61 Service Contracts from the conduct of the gas that will fuel prospective capacity additions
supply based on market forces interaction. On registering an annual average share of almost PECR during the planning period. from natural gas power plants, industry uses,
the other hand, LCS scenario considers the policy 1.0 percent. For the 16th Congress, an LPG and the CNG buses and taxis.
interventions and aggressive implementations of Industry Bill will be proposed to regulate the Natural Gas
plans and programs for clean and environment- utilization and safety requirement of the said Coal
friendly energy fuels and technologies. On the fuel for transport. Natural gas is seen to contribute an average
demand side, the LCS scenario serves as the share of 9.0 percent to the total primary supply Coal will contribute an average share of 30.1
reference case with inclusion of the sectors Electricity consumption comes next with 22.9 increasing at an annual average growth rate of percent to the countrys primary energy supply
goal of 10.0 percent energy savings on the total percent average share and growing annually of 4.9 percent under BAU. The supply of gas under the BAU and will increase at a rate
energy demand of all economic sectors by the at 3.8 percent. The growth in electricity will be basically sourced from Malampaya and of 7.2 percent annually during the planning
end of the planning period. consumption has also factored in the 10.0 additional gas (uncontracted gas) from other period. The government targets to increase
percent efficiency improvement with the potential fields. indigenous coal production by 100.0 percent.
Over the planning period, the total final energy aggressive implementation of the NEECP. The Increasing the contribution of indigenous coal
consumption (TFEC) will exhibit an annual average passage of an EE & C Law, which will likewise The liquefied natural gas (LNG) importation would reduce coal importation. Imported coal
growth rate of 2.8 percent. TFEC will reach 39.1 be filed in the 16th Congress, will further is seen to provide additional gas supply contributes around 70.0 percent average share
MTOE by the end of the planning period. strengthen the NEECP and vital to realizing the requirement for the country in the LCS especially to the countrys supply requirements.
target efficiency improvement. if no new gas fields will be discovered during

II. ENERGY DEMAND AND SUPPLY
A much lower average growth rate of 4.8 percent Alternative Fuels (Biofuels) OUTLOOK
II. ENERGY DEMAND AND SUPPLY OUTLOOK
is seen in the LCS with equivalent contribution
of 25.2 percent average share to the primary Under both scenarios, the mandated 2.0 percent
energy supply. This is due to the utilization biodiesel blend (which started in 2009) will have 2011 Energy Situationer
2011 Energy Situationer
of more RE resources in the power generation, to increase to 20.0 percent by 2025, and the 10.0
which will displace some capacities from coal. percent bioethanol blend (started in 2011) will ENERGY-ECONOMY
ENERGY-ECONOMY INDICATORS
INDICATORS3
3one
(BBL/Php100,00 of GDP),
hundred thousand from
pesos of the GDP4
real previous
be accelerated to 20.0 percent by 2020. With the (BBL/Php100,00
years 1.8 BBL/Php100,00 of GDP), from ofthe GDP previous
as importation years
required mandated blends, biodiesel will grow at The Philippines The Philippines economic output economic output
in terms of in terms of was discouraged by political turmoil inwas
real 1.8 BBL/Php100,00 of GDP as importation the
Renewable Energy an annual average growth rate of 15.5 percent, Gross Domestic real Gross Domestic
Product (GDP), Productposted (GDP), feeble posteddiscouraged Middle East by political turmoil in the prices
drove international Middle higher.East
while bioethanol will increase by 9.5 percent. growth of feeble growth
3.7 percent in 2of 3.7compared
011 percent in to a2011 compareddrove international prices higher. The decline in oil
robust The decline in oil supply likewise contributed
Under the BAU, contribution from RE will grow 7.6 percent to in
a 2robust
010, as 7.6 government 2010, as governmentsupply
percent inunder-spending to the likewise
drop in contributed
energy intensity to the ofdrop
2.5in energy to
percent
at an annual average rate of 0.8 percent (and Power Sector on infrastructure
under-spending slowed ondown the domestic
infrastructure slowed downintensity 6.7 tonnes of 2.5 percent to 6.7 tonnes of oil
of oil equivalent per million pesos of
with average share of 32.6 percent) with only economy the in the second and third quarters of the equivalent per million pesos of real GDP
domestic economy in the second and third real GDP (TOE/MPhp) from last years 6.9 TOE/
year. (TOE/MPhp) from last years 6.9 TOE/MPhp, albeit
the committed RE power projects coming into The countrys peak demand for power will grow quarters of the year. MPhp, albeit indicating an improvement from
indicating an improvement from the previous years
the system. at an annual average rate of 4.3 percent over the previous years -5.7 percent that can be
The Services sector grew resiliently by 5.0 percent, -5.7 percent that can be attributed to the recovery
the planning period. The country will need The Services sector grew resiliently by 5.0of renewable attributed to the recovery of renewable energy,
contributing more than half of real GDP (56.5 energy, particularly hydropower, in
The passage of Renewable Energy Act of 2008 about 13,166.7 MW of new capacities to meet percent, contributing more than half of real2011. particularly
Relatedly, hydropower,
electricity in
intensity 2011. fell Relatedly,
by 1.7
percent share in 2011), as combined revenues from
strengthens the policy of the government to domestic power requirement energy demand
domestic GDP trade, (56.5 percent
finance and sharereal in 2011),
estate as combinedpercent,
sectors electricity intensity
from 11.9 fell by 1.7 percent, from
watt-hour per peso of real GDP
accelerate the exploration and development of and reserve margin. From the needed capacity, revenues from domestic trade, finance and real 11.9 watt-hour per
(Wh/Php) in 2010 to 11.7 Wh/Php peso of realin GDP (Wh/Php)
2011, as oil
helped sustain the economy. Meanwhile, the
RE resources in the country. With this, around 1,766.7 MW will be provided by committed estate sectors helped
lackluster performance of the construction sector, sustain the economy. supply in 2010
w oes to
t 11.7
rickled Wh/Php
d own t o ein 2011,
letricity g as oil
eneration. supply
9,300 MW from indicative and potential RE power projects, while the remaining 11,400 MW Meanwhile, the
beleaguered by government underspending, pulled lackluster performance of the woes trickled down to eletricity generation.
resources (geothermal, hydro, wind, solar, will be available for private sector investment. down the construction
Industry sectors sector, beleaguered
growth by government
to a measly 1.9 Meanwhile, the combined improvements in energy
biomass, and ocean) have been identified as Of the 11,400 MW, 8,400 MW will be baseload percent despite underspending, pulled down output.
favorable manufacturing the Industryefficiency Meanwhile, and structural
the combined changes improvements
in the economy in
aspirational target which could be harnessed plants, 2,100 MW mid-range plants, and 900 Meanwhile, sectorsthe Agriculture,
growth to aFishery measlyand percent despite energy efficiency and structuraldchanges
1.9 Forestry caused s ectoral e nergy i ntensities t o ecline further
in the
within the planning period. MW peaking plants. (AFF) sector rebounded to a 2.6 percent growth
favorable manufacturing output. Meanwhile, economy caused sectoral energy intensities in in 2011. Energy use per unit of industrial output
the Agriculture, Fishery and Forestry (AFF)dropped
2011, from the previous years contraction, as crop to 0.35 TOE/Php100,000 2.3 percent lower
to decline further in 2011. Energy use per
production recovered from El than l ast years 0.36 TOE/Php100,000 as production
For LCS, RE will grow at an annual average of The investment requirement to pursue and sector rebounded to Nio
a 2.6phenomenon
percent growth in unit of industrial output dropped to 0.35
that plagued the from country processes became more energy efficient and with
3.2 percent and will contribute an average undertake the sectoral targets for this plan 2011, thein previous
2010. On the
years demand
contraction, TOE/Php100,000 2.3 percent lower than last
share of 37.0 percent to the total energy supply. update is estimated at Php 2.80 trillion. As such, side, growth as in crop consumer
production spending doubled from
recovered to 6.1 El
Geothermal will grow at an average rate of 4.2 the government must intensify its initiatives percent, but was not enough to compensate for Figure 1. ENERGY INTENSITIES, 2000 2011
Nio phenomenon that plagued the
weakened investments and decline in international
percent contributing an average share of 64.0 to promote and showcase the various energy country in 2010. On the demand side,
trade.
percent of total RE. Meanwhile, hydro will exhibit investment opportunities with the private growth in consumer spending doubled

3.5 percent average growth rate and with an sector. to 6.1 percent, but was not enough to
ENERGY INTENSITY
average share of 15.0 percent (total RE) within compensate for weakened investments
the planning period. Biomass will demonstrate Considering the vulnerability of the energy The lackluster and decline in international
performance of the trade. domestic
11.2 percent average share of RE. However, sector to conditions like extreme weather economy in 2011 was mirrored in the countrys
biomass supply will be on a downward trend by patterns, an energy sector-wide climate change energy levels, ENERGY INTENSITY
as intensities registered negative
the end of the planning period. Combined share adaptation strategy is envisioned to be put growths for the current year. Oil intensity suffered
of solar and wind will be almost 1.0 percent and in place. Said framework aims to address the the biggest decline of 9.3 percent to 1.7 barrels per
The lackluster performance of the
will exhibit an annual average growth rate of climate change impacts in energy systems, such domestic economy in 2011 was mirrored
20.4 percent. as power transmission and distribution systems, 3 in the countrys energy levels, as
GDP figures are as of January 2011 National Accounts of the
fuel distribution and renewable energy systems. intensities
Philippines, registered
National Statistical Coordination negative growths for
Board (NSCB)
4
2000 prices
the current year. Oil intensity suffered the
biggest decline of 9.3 percent to 1.7 barrels
per one hundred thousand pesos of real GDP years 0.36 TOE/Php100,000 as production 4
processes became more energy efficient

3 GDP figures are as of January 2011 National Accounts of
and with production levels of non-energy
the Philippines, National Statistical Coordination Board
(NSCB) intensive industries increased more rapidly
4 2000 prices

energy production declined by 0.8 percent and 3.4
The countrys aggregate oil production (including
percent, respectively. Meanwhile, natural gas
condensate) dropped by 8.7 percent, from its year
production from the Malampaya well went up by
ago level of 0.92 MTOE (7,954. 3 MB) to 0.84 MTOE
production levels of non-energy intensive industries 8.0 percent in 2011. (7,397.6 MB) in 2011, as domestic crude oil
increased more rapidly than energy-intensive production plummeted by 24.0 percent due to the
sectors. The Services sector likewise experienced a suspension of the production of Galoc field since
than energy-intensive sectors. The Services ENERGY PER CAPITA INDIGENOUS ENERGY
reduction in energy intensity of 4.7 percent from ENERGY PER CAPITA Figure 4. TOTAL PRIMARY ENERGY SUPPLY MIX (in Percent),
November 2011 to give way for repairs and upgrade
production
sector likewise levels experienced
of non-energy aintensive reduction industries
in 2011 and 2010
0.37 TOE/Php100,000 in 2010 to 0.35 In 2011, the amount of energy consumed per being undertaken in the Floating Production
increased
energy in intensity more rapidly
of 4.7can percent than energy-intensive
from 0.37 TOE/ Total indigenous energy production grew vessel, as
TOE/Php100,000 2011, which be attributed In 2011, the amount of energy consumed per Storage and Offloading Rubicon Intrepid
sectors. The in
Php100,000 Services
2010 sector
to 0.35 likewise
TOE/Php100,000 experienced a person was reduced to 0.42 TOE/person, 1.0 2011 from 23.0 MTOE in 2010 to 23.6 MTOE in
to intensified energy conservation in most person was reduced to 0.42 TOE/person, 1.0 well as the looming depletion of most oil fields. On
inreduction
2011, in energy intensity of 4.7 percent from percent lowerPER
ENERGY than the previous years level,
CAPITA
establishments. On which canhand,
the other be attributed to intensified
the AFF sector percent lower than the previous years level, as 2011. The growth
the other hand, ina domestic supply increase
3.6 percent is in
0.37 conservation
TOE/Php100,000 in 2010 to On 0.35 as population
grew faster than that of total
registered energythe biggest decline in in mostuestablishments.
energy se per unit population grew faster than that of total energy attributed
condensate, to thewhich higher is production
derived from output,
the production
TOE/Php100,000
the other hand, percent, in 2011,
the AFF sector which can be attributed
theuse. Similarly, oil per the
energy In
use. 2011, amount of energy consumed per
of output at 15.2 from registered
0.05 capita fell by 7.9 percent to andof consequently
natural gas, was increased
posted from contribution,
0.51 MTOE (4,894.8
to intensified energy conservation in most person was reduced to 0.42 TOE/person, 1.0
TOE/Php100,000 biggestlast decline year in
to energy use per unit of output1.05 barrels per preson (BBL/person) from last
0.04 TOE/Php100,000 of coal,
MB) inatural
n 2010 to gas, geothermal,
0.53 MTOE (5,072.0 hydro and
MB) in 2011.
establishments. On the other hand, the AFF sector Similarly, percent
oil perlower
capita than
fellthe
by previous
7.9 percent years
to level, as
in 2011, as the production from fishery sub-sectors,
at 15.2 percent, from 0.05 TOE/Php100,000years 1.14 BBL/person, indicating a reduction in oil
biodiesel. On the other hand, output from
registered the biggest decline in energy use per unit 1.05 barrels population
per preson (BBL/person) from last energy
grew faster than that of total
which generally
last used tomore energy, were relatively consumption per person. Meanwhile, electricty per B. sources Coal for solar power, biomass and
of year
output 0.04 at TOE/Php100,000
15.2 percent, in from 2011, as 0.05 use. BBL/person,
Similarly, oil per capita fell by 7.9 percent to local
lower than the the production
previous year. from whichcapita years 1.14
remain unchanged from indicating a reduction
the previous years
TOE/Php100,000 last fishery
year to sub-sectors,
0.04 TOE/Php100,000 1.05 barrels per preson (BBL/person) from last bioethanol decreased by 3.4 percent, 0.8
generally used more energy, were relatively in
level oil
of consumption
0.73 mega-watt per person.
hour per Meanwhile,
person The and
percent countrys
71.0 percent, total respectively.
indigenous coal supply
in 2011, as the production from fishery sub-sectors, years 1.14 BBL/person, indicating a reduction in oil
ENERGY ELASTICITY (MWh/person),
electricty per attributed
capita to intensified
remain unchanged campaigns from accounted for 15.4 percent of the total indigenous
lower
which than the previous
generally used more year.energy, were relatively consumption per person. Meanwhile, electricty per
production (equivalent to 9.2 percent of the TPES).
lower than the previous year. capita remain 2000 unchanged from the previous years Fossil Fuels
The sluggish growth of both energy and economic Figure 3. ENERGY PER CAPITA, 2011 Local coal production reached 3.6 KTOE (6.9 MMT6),
ENERGY
ELASTICITY level of 0.73 mega-watt hour per person 3.5 percent higher as compared to the previous
output in 2011 put energy-to-GDP elasticity at 0.31,
ENERGY ELASTICITY (MWh/person), attributed to intensified campaigns A. years
Oil level of 3.5 KTOE (6.7 MMT). This can be
albeit slightly higher than its year-ago level of 0.19. 2010
sluggish growth of both energy and
The
Similarly, oils elasticity for 2011 was higher at 1.58 attributed to the gain in the production of Semirara
The sluggish
economic growth 2011 of both energy and economic Figure 3. ENERGY PER CAPITA, 2000 2011
vis--vis the previous output years in 0.62, while put energy-to-
electricity TheMining countrys aggregate
Corporation, oil continues
which productionto be the
output in 2011 put energy-to-GDP elasticity at 0.31,
GDP elasticity at 0.31,
elasticty dropped to 0.52, from albeit last slightly higher
years 1.23, (including
major coal condensate)
producer in dropped by 8.7 Semirara
the country.
albeit slightly higher than its year-ago level of 0.19.
than its year-ago level of 0.19. Similarly, percent, from its
These data further affirm that changes in economic contributed a byear
ulk sago
hare level
of 9of 0.92
4.0 MTOE
percent of the total
Similarly, oils elasticity for 2011 was higher at 1.58
output have oils elasticity for
relatively 2011 was
negligible higher
effect on atthe 1.58 local 3coal
(7,954. MB)production,
to 0.84 MTOE which is equivalent
(7,397.6 MB) to 3.4
vis--vis the previous years 0.62, while electricity
vis--vis the previous years 0.62, while
demand for energy and electricity (whose elasticity MTOE as
in 2011, (6.5 MMT). In
domestic addition,
crude private producers in
oil production
elasticty dropped to 0.52, from last years 1.23,
level is generally
electricity less elasticty
than 1.0) , while oil
dropped demand
to 0.52, from Zamboanga del Sur increased their total production
plummeted by 24.0 percent due to the
These data further affirm that changes in economic
responds last quicker
years to
1.23, changes
These in GDP
data further (whose
affirm suspension of the production of Galoc field
output have relatively negligible effect on the
elasticity is usually
that changes greater in than 1.0). output have
economic since
6
November 2011 to give wayat for repairs
BTU/lb
demand for energy and electricity (whose elasticity Million metric tons, Run-of-Mine (ROM) 10,000
relatively negligible
level is generally effect
less than on the, while
1.0) demand oil demand and upgrade being undertaken in the
Figure 2. ENERGY for energy and electricity (whose
responds quicker to changes in GDP (whose
ELASTICITIES, 2000 2011 elasticity Floating Production Storage and Offloading
level is generally
elasticity is usually less thanthan
greater 1.0),1.0). while
oil Rubicon Intrepid vessel, as well as the
Oil remained as the countrys major energy looming depletion of most oil fields. On the
for rural electrification for 2011.

Figure 2. ENERGY ELASTICITIES, 2000 2011 source, accounting for 31.4 percent of the primary other hand, a 3.6 percent increase in condensate,
the previous years level of 0.73 mega- energy supply mix, followed by geothermal with which is derived from the production of natural
watt hour per person (MWh/person), 21.7 and coal with 19.6 percent share. gas, was posted from 0.51 MTOE (4,894.8 MB) in
2011 Pattributed RIMARY
for rural to Eelectrification
NERGY
intensified SUPPLY
campaigns
for 2011. for rural 2010 to 0.53 MTOE (5,072.0 MB) in 2011.

electrification for 2011.
The countrys total primary energy supply (TPES) in Total primary oil supply dropped by 9.0 percent

2011 grew slowly at a rate of 0.3 percent reaching to 12.4 MTOE in 2011, from 13.6 MTOE in 2010, B. Coal
2011 2011 PRIMARY
PRIMARY ENERGY
ENERGY SUPPLY
SUPPLY while total primary coal supply increased by
39.4 MTOE compared to the 2010 level of 39.3
10.0 percent to reach 7.7 MTOE from 7.0 MTOE in The countrys total indigenous coal supply
MTOE5 (Figure 4). The sluggish movement in total
The countrys total primary energy supply (TPES) in
supply The was countrys due to the total 3.4 primary
percent energy drop in supply
net 2010. Major renewable energy sources likewise accounted for 15.4 percent of the total indigenous
2011 grew slowly at a rate of 0.3 percent reaching
imports, (TPES) from 16.3 in 2011 MTOE grew slowly
in 2010 at a MTOE
to 15.8 rate ofin 0.3 registered increases in production levels during production (equivalent to 9.2 percent of the
39.4 MTOE compared to the 2010 level of 39.3
percent reaching 39.4 MTOE compared to the year, led by wind energy with 42.9 percent, TPES). Local coal production reached 3.6 KTOE
MTOE5 (Figure 4). The sluggish movement in total
5 the supply
TPES for 2010
2010 level
was
is reflective
ofchanged
due
of the
39.3 MTOE
to the
5
(Figure
3.4 percent
of methodology
4). in net
drop
used in
followed by hydro and geothermal with 21.0 (6.9 MMT6), 3.5 percent higher as compared
accounting The sluggishCivil
International
imports, movement
from Aviation in was
16.3 which
MTOE total supply
in applied
2010 was MTOE in
starting
to 15.8 percent and 0.1 percent, respectively, while to the previous years level of 3.5 KTOE (6.7
2011.
due to the 3.4 percent drop in net imports, biomass and solar energy production declined MMT). This can be attributed to the gain in the
from 5
16.3 MTOE in 2010 to 15.8 MTOE in by 0.8 percent and 3.4 percent, respectively. production of Semirara Mining Corporation,
TPES for 2010 is reflective of the changed of methodology used in
PHILIPPINE ENERGY PLAN 2012-2030 2011, while domestic production went14
accounting International Civil Aviation which was
up
applied starting
Meanwhile, natural gas production from the which continues to be the major coal producer in
by 2.9 2011. percent.
Malampaya well went up by 8.0 percent in 2011. the country. Semirara contributed a bulk share
demand responds quicker to changes in GDP 5 TPES for 2010 is reflective of the changed of methodology of 94.0 percent of the total local coal production,
(whose elasticity is usually greater than 1.0). used in accounting International Civil Aviation which was
PHILIPPINE ENERGY PLAN 2012-2030 applied starting 2011.
14 6 Million metric tons, Run-of-Mine (ROM) at 10,000 BTU/lb

which is equivalent to 3.4 MTOE (6.5 MMT). to the total indigenous energy supply in 2011 level of 106.7 KTOE, triggered by the significant percent to the primary energy supply in 2011.
In addition, private producers in Zamboanga (corresponding to 21.7 percent share to TPES). reduction in local ethanol production of 71.0 This is expected to increase with the additional
del Sur increased their total production to percent, from 5.53 KTOE in 2010 to 1.6 KTOE in 747 MW aggregate capacity of wind contracts
88.2 KTOE (0.17 MMT) in 2011, almost double B. Hydro 2011. A significant number of biofuels producers awarded during the year.
its 2010 level of 42.7 KTOE (0.08 MMT). in the country resorted to cease production
Likewise, Cebu reported 44.0 KTOE (0.08 MMT) The countrys hydropower resources operations due to their inability to cope with NET IMPORTS7
production in 2011, from 35.5 KTOE (0.07 MMT) contributed a 9.9 percent share to the total the market price competition. Unresolved
in 2010. In contrast, small scale mines exhibited indigenous energy supply in 2011 (equivalent issues on tariff of imported ethanol are another Net energy imports in 2011 accounted for 40.0
7
a considerable cut in production of 21.0 percent, to 6.0 percent share to TPES). Hydropower their inability
culprit to tocope with the biofuel
the declining market production
price NET IMPORTS
that percent of the total energy supply, reaching 15.8
from 78.4 KTOE (0.15 MMT) in 2010 to 61.9 production took a significant increase of 21.7 competition. led producers
Unresolved to issues
divert their on tariff
products of to the
MTOE, albeit 3.4 percent lower than the 2010
KTOE (0.12 MMT) in 2011. percent, from 1.9 MTOE in 2010 to 2.4 MTOE due imported sugar ethanol are another culprit
industry which posed a higher market level to the Net energy
of 16.3imports
MTOE. in 2011 accounted for 40.0
to the additional 91.0 MW capacity during the declining biofuel production that led
value for their yield. For the year 2011, only San producers to percent of the total energy supply, reaching 15.8
C. Natural Gas year. The increase in hydro energy production divert their products to the sugar industry which MTOE, albeit 3.4 percent lower than the 2010 level
Carlos Bioenergy Incorporated and Leyte Agri Net imported energy in 2011 is comprised of
posed a higher market value for their yield. For the of 16.3 MTOE. Net imported energy in 2011 is
is also attributed to favorable weather condition Corporation continued to operate with a total 73.3 percent oil and oil products; 26.0 percent
year 2011, only San Carlos Bioenergy Incorporated comprised of 73.3 percent oil and oil products; 26.0
Aggregate domestic natural gas production during the year, a respite from the El Nio that
and Leyte aggregate capacitycontinued
Agri Corporation of 49 million liters. Thus, the
to operate coal;coal;
percent and,and,
0.8 0percent biofuels.
.8 percent biofuels.
during the year is 3.3 MTOE or 140,367.6 plagued the country last year, immensely helped unstable domestic production necessitated
with a total aggregate capacity of 49 million liters.
million standard cubic feet (MMSCF), reflecting hydropower plants maintain their required 122.3unstable
KTOE of imported
Thus, the domestic ethanol to sustain Figure 5. NET ENERGY PRODUCTS IMPORTATION (in Percent),
production
an increase by 8.0 percent compared to the water level in reservoir. necessitated the122.3
required kTOE supply, translating
of imported ethanol toto an
2011
previous years actual production of 3.0 MTOE sustain the increaserequired of 53.5
supply, percent in 2011to over
translating an its
(130,008.5 MMSCF). The increase in volume C. Biomass increase of year-ago level of
53.5 percent in 78.5
2011 KTOE.
over its year-ago
of production was due to high off-take of the level of 78.5 kTOE.
countrys three gas power plants, despite the Biomass remains a major part of the indigenous On the other hand, local production of
implementation of the seven day shutdown in energy supply mix despite a 0.8 percent decrease On the other
Coco hand,
Methyllocal pEster
roduction
(CME) of Coco Methyl to
continued
the Malampaya facilities and the Ilijan power in its 2011 level of 4.9 MTOE, which corresponds Ester (CME) grow continued
at a steady to grow
rateat ofa 0.9
steady
percentrate of
from
plant during the second half of 2011. to a share of 30.7 percent and 20.7 percent of the 0.9 percent from 2010 to 2011.
2010 to 2011. As of 2011, there were nine As of 2011, there
countrys total RE and total indigenous energy were nine (9) out of 12 CME production facilities in
(9) out of 12 CME production facilities
Gas consumption for power generation reached supply, respectively. More than 99.0 percent of operation which are duly accredited by the
in operation which are duly accredited
3.1 MTOE (133,226.5 MMSCF), a 9.3 percent biomass supply is being used for final energy Department of Energy. During the year the
by the Department of Energy. During the
aggregate production capacity for CME amounts to
increase compared to year 2010 level. In 2011, consumption, while the remaining 1.0 percent year the aggregate production capacity
364.6 million liters.
natural gas contributed around 41 percent in being utilized for power generation exhibited for CME amounts to 364.6 million liters.

the Luzon generation mix. an increase of more than 100 percent due to the
E. Solar
installation of additional 45 MW biomass plant E. Solar Net oil importation declined by 9.0 percent,
Renewable Energy in 2011, bringing biomass installed capacity to a
Solar energy production decreased to 0.1 kTOE from 12.7 MTOE or 96,078.4 thousand barrels
Net oil importation declined by 9.0 percent, from
total of 83 MW. Solar energy production decreased to 0.1 KTOE
which is 3.4 percent lower compared to 2010 level 12.7 (MB)
MTOE inor 2010 96,078.4 to 11.5 MTOE
thousand (87,885.4
barrels MB)
(MB) in
A. Geothermal which
of 0.11 kTOE. is 3.4
While percent
solar energy lower has the compared
smallest to 2010 2010 into 2011. Total
11.5 MTOE oil imports
(87,885.4 MB) in decreased byoil 7.1
2011. Total
Furthermore, a total of 16 biomass projects contribution level to the
of 0.11energy
KTOE. mix, While
it is expected
solar energy that has the percent from 15.8 MTOE in 2010
imports decreased by 7.1 percent from to 15.8 14.7 MTOE
MTOE
Geothermal production went up by 0.1 percent were awarded during the year with more or less its contribution
smallest will contribution
increase with to the the energy
growing mix, it is in 2011. Bulk of the total imports was credited
in 2010 to 14.7 MTOE in 2011. Bulk of the total
from its 2010 level of 8.5 MTOE to 8.6 MTOE in 150 MW aggregate biomass capacities which number of expected
awarded that solar its
projects
contribution during the
will year.
increase with to crude
imports oil, posting
was credited to 59.2
crude percent share,59.2
oil, posting while
2011 and is still expected to increase for the next is expected to be contributed for the year and The expected
theincrease
growingmnumber ay be further
of awarded strengthened solar projects the remaining 40.8 percent is from
percent share, while the remaining 40.8 percent is the finished
years that will be brought by the six Geothermal the next years. With the implementation of the by the implementation
during the year. of the
Thepolicy
expected mechanisms
increase may be from oil
the finished Middle oil products. Middle East crudes
products. East crudes remained as the
Service Contracts awarded within the year in RE Law, biomass is expected to continuously under RE Law. remained a s t he c ountrys m ajor s ource o f c rude o il,
further strengthened by the implementation of countrys major source of crude oil, supplying
addition to those awarded in 2010. supplying 76.4 percent or 51,039
increase its share in the energy supply mix with the policy mechanisms under RE Law. 76.4 percent or 51,039 MB MB of the of the
totaltotal
crude
F. Wind crude mix, while crude from Russia (14,318 MB)
the emergent number of existing and operational mix, while crude from Russia (14,318 MB)
distributed 21.4 percent of the total crude mix and
Since most of the countrys high enthalpy biomass power facilities. F. Wind distributed 21.4 percent of the total crude mix
In 2011, production of wind energy showed a the remaining 2.2 percent was sourced from
geothermal resources have already been and the remaining 2.2 percent was sourced from
notable increase of 42.9 percent from its 2010 level Malaysia (1,485 MB). The 2011 import volume of
developed into commercial operations, D. Biofuels In 2011, production of wind energy showed Malaysia (1,485 MB). The 2011 import volume
of 5.3 kTOE. During the year, wind energy has a finished petroleum products dropped by 15.6
thereby making the Philippines second in a notableof increase
minimal contribution of 42.9
0.02 percent to the percent
primary from its
geothermal installed capacity in the world, In 2011, biofuels production posted a negative percent from 54,607 MB of 2010 to 46,065 MB,
2010 level of 5.3 KTOE. During the year, wind 7 The sum of imports and stock change (+/-) less exports
energy supply in 2011. This is expected to increase which was partly due to high crude import volume
geothermal resources contributed 36.2 percent growth of 2.9 percent, from its previous years energy has
with the additional a minimal
747 MW aggregate contribution
capacity of of 0.02 and international bunkers (aviation and marine)
and increased refinery production output during the
wind contracts awarded during the year. period. Exports increased by 7.6 percent, with other

16 PHILIPPINE ENERGY PLAN 2012-2030 P H I L I P P I7 N E sum
The E Nof
ER G Y and
imports P L stock
A N change
2 0 1 2(+/-)
-20 30
less exports and 17
international bunkers (aviation and marine)
of finished petroleum products dropped by 15.6 losses8. Diesel accounted for the bulk of the Figure 7. ELECTRICITY GENERATION BY FUEL TYPE (in TWh),
industrial
demand apurposes t 34.7 percent, reached followed 5.9 bMTOE y the residential
percent from 54,607 MB of 2010 to 46,065 MB, refinery product output with 37.4 percent share, 2010-2011 which is slightly higher than
sector at 26.1 percent share, and industry with 25.9 its previous
which was partly due to high crude import followed by fuel oil and gasoline, with shares year level. sMajor
percent hare. services and commercial
volume and increased refinery production of 19.6 percent and 19.0 percent, respectively.
establishments, on the other hand,
output during the period. Exports increased Aviation turbo or Jet A-1 contributed 9.0 percent In t erms
registered a 2.9 percent o f f uel t ype, petroleum
increase in products
energycontinued
demand at 34.7 p ercent,
to dominate f ollowed b y t he r esidential
the countrys total final energy
by 7.6 percent, with other petroleum products share, while LPG and kerosene each put in 6.7 Figure 7. ELECTRICITY GENERATION BY FUEL TYPE (in TWh),
demand to 2.7 MTOE.
2010-2011 sector at 26.1 consumption,
percent share, accounting and industry with
for 25.9 share of 48.6
a bulk
taking the largest share. Oil products that were percent and 1.2 percent shares to total refinery percent share. percent, while biomass and electricity registered
exported to various countries such as Korea, output. Naphtha had the least share with 2.0 Transport maintained its top position in
petroleum products taking the largest share. Oil shares to total refinery output. Naphtha had the almost the same contribution of 21.1 and 21.0
Singapore and Taiwan include fuel oil, naphtha percent, while the remaining portion comprised In terms of fterms uel type, of phaving etroleum theplargest roducts share to total
products that were exported to various countries least share with 2.0 percent, while the remaining percent, respectively. continued
and other
such as Korea, petroleum
Singapore products.
and Taiwan include fuel othercomprised
portion non-energy products.
other non-energy products. to dominate final
the energy
countrys demand total atfinal 34.7energy percent,
oil, naphtha and other petroleum products. consumption, followed
accounting
Total by the
consumption for residential
a bulk
of oil share sector
and of at 26.1 dropped
oil 48.6
products
The countrys coal importation exhibited a Figure 6. REFINERY PRODUCTION (in Percent), 2011 percent, while percent biomass share, and
and electricity
by 1.4 percent reaching 11.2 MTOE, p25.9 industry registered
with ulled down by
minimal decline of 0.03 percent from 2010
The countrys coal importation exhibited a minimal almost the percent same contribution
share. in gasoline
the reduction of 21.1 and and fuel
21.0 oil usage of 1.4
decline of level
0.03 of 5.8 MTOE
percent from (10,962.5
2010 level MMT).
of 5.8 Indonesia
MTOE percent, respectively.
percent and 21.3 percent, respectively, considering

(10,962.5 was theIndonesia
MMT). countryswas mostthe significant trading
countrys most In that
terms the
of combined fuel type, demand petroleum levels
products for these fuels
Total consumption of oil for and 34.8
oil products dropped
significant partner
trading accounting
partner accounting for
for more than 98.0 percent m ore t han continued to dominate the countrys the
account percent of total total oil
98.0 percent of total
the coal
total importation
coal importation in Australia
2011. by 1.4 percent consumption.
reaching 11.2 MUtilization TOE, pulled of down b y
kerosene likewise
of the in 2011. final energy consumption, accounting
Australia supplied
supplied around around 1.2 percent of the the reduction contracted
in gasoline by and fuel percent
10.2 oil usage of 1.4 132.3 kTOE
reaching
1.2 percent of the countrys
utilization owns the largest contribution by 41.4 for a bulk share of 48.6 percent, while
percent and 21.3 percent, respectively, considering
countrys coal coal requirement, with
requirement, with the remaining the remaining 1.0 1.0 biomass from
and last electricity years 147.24 registered kTOE, almostwhile use theof aviation
percent sourced from Vietnam. On the other hand, TOTAL
percent with FINAL
8.6 MTOE. ENERGY ThisCisONSUMPTION
followed by coal that the combined demand
gasoline plunged levels for
by 30.4 21.0 these
percent fuels to 2.5 kTOE in
percent sourced from Vietnam. On the other with 28.0 percent (5.8 MTOE) while natural gas account samefor contribution
34.8 percent of 21.1 of and the total percent,
oil
coal exports fell by more than 33.0 percent, to 1.4 2011. Meanwhile, three petroleum products
hand, coal exports fell by more than 33.0 (3.1 Given MTOE) the and feeble hydro (2.4 MTOE)
economic comprised
state of respectively.
2011, consumption.
TFEC Utilization of kerosene likewise
MTOE (2,736.3 MMT). China is considerably the registered increases in demand for 2011 led by jet
percent, to 1.4 MTOE (2,736.3 MMT). China 15.0 percent andMTOE,
11.4 percent, respectively. The contracted by fuel
10.2 percent reaching growth 132.3 okTOE
biggest consumer of Philippine coal despite its reached 23.0 a 0.6 percent drop from the with a double-digit f 30.8 percent, LPG
is considerably
demand weakening thepercent
by 13.9 biggestto consumer
1.4 MTOE of rest comprised
previous wind,
years solarof
level and23.1
biomass. MTOE. This Total
from is consumption
last years 147.24
with a 0.6 kTOE, of
percent
oil
while and
use
growth,
oilaviation
of products
and diesel, which
Philippine coal despite its demand weakening TOTAL FINAL ENERGY CONSUMPTION
attributed to the decline in energy use for the gasoline dropped
two plunged by by
1.4 30.4 percent percent reachingto 2.5 kTOE
11.2 MTOE,in
(2,681.6 MMT) from 1.6 MTOE (3,115.5 MMT) in consistently remain as the most widely-consumed
biggest energy-consuming sector transport 2011.
and Meanwhile, bythree petroleum products
by 13.9 percent to 1.4 MTOE (2,681.6 MMT)
2010. On the other hand around 2.0 percent of the TOTAL
Given the feeble FINAL ENERGY
economic
residential.
CONSUMPTION
state of 2011, TFEC
pulled
registered
down
oil product
increases in
thewith
demand
reduction50.8 percent
for 2011
in gasoline
led
share of
by jet
andthe total oil
total coal from
exports 1.6wMTOE (3,115.5
ere shipped to TMMT)
hailand. in 2010. On fuel oil usage consumption, of 1.4 percent g rew b y 1 and .6 p 21.3 percent,
ercent.
reached 23.0 MTOE, a 0.6 percent drop from the fuel wrespectively,
ith a double-digit growth of 3that 0.8 percent, LPG
the other hand around 2.0 percent of the total considering the combined
previous years
Given level
the of
feeble 23.1
economic MTOE. state This
Energy consumption in the transport sector with of is
2011, TFEC a 0.6 percent growth, and diesel,
coal exports were shipped to Thailand.
Ethanol imports in 2011 increased by 10.9 percent, attributed to the decline
went
demand levels for these fuels accountwhich for 34.8
from 107.9 kTOE in 2010 to 119.3 kTOE. The
reached
down by in
23.0 MTOE,
0.7 energy
percent ause for the two
0.6reaching
percent dropMTOE,
8.0 from
consistently
as
percent remain
Figure
of the
8. as
FINAL
total the most
ENERGY
oil widely-consumed
consumption.
CONSUMPTION BY SECTOR (in MTOE)
Utilization
biggest energy-consuming
theuncertainties
previous years sector international
level
in the transport
of 23.1 MTOE. and market
Thisoil is product with 50.8 2010-2011
pulled percent share of the total oil
increase Ethanol
may be imports
attributed in 2011 to non-operation
increased by of 10.9 residential. attributed of kerosene likewise contracted by 10.2 percent
Power Generation to the decline in energy use for the
down oil consumption. Similarly, energy demand in consumption, grew by 1.6 percent.
bioethanol producers
percent, fromin 107.9the country
KTOE indue 2010 to to
higher
119.3 KTOE. reaching 132.3 KTOE from last years 147.24
production two biggest energy-consuming sector transport
the residential sector was cut by 2.0 percent to 6.0
Thecost
increase and may
consequently,
be attributed the
to markets
non-operation of Power Generation Energy consumption in the transport sector went
preference for lower-priced imported Total energy requirement from the production of and residential.
MTOE in 2011, from last years 6.1 MTOE, as all
bioethanol producers in the bcountry ioethanol. due to higherelectricity in 2011 accounted for 20.6 MTOE which down by 0.7 fuels
percent
utilized reaching 8.0 MTOE, registered
by households as Figure 8. FINAL ENERGY CONSUMPTION BY SECTOR (in MTOE),
lower 2010-2011
production cost and consequently, the marketstranslated Total energy requirement
to electricity output from thepercent
of 28.8 production or uncertainties consumption
in the international l evels f market
or 2 011. M pulled
eanwhile, d espite its
Energy consumption in the transport
TRANSFORMATION S ECTOR
preference for lower-priced imported bioethanol. 5.9 ofMTOE electricity in 2011 accounted for 20.6 MTOE
(69.1 TWh). This is slightly lower by 0.4 down oil consumption. Similarly, energy demand in
1.3 percent
sector went share downto TFEC,
by 0.7 energy
percent use in the AFF
which translated to electricity output of 28.8
percentage points from the 29.2 percent electricity the residential sector was cut by 2.0 percent to 6.0
sector
reaching plummeted
8.0 MTOE, by 13.0
as uncertainties percent to in302.3 kTOE,
Oil Refining TRANSFORMATION SECTOR percent
output or 5.9
in 2010 MTOE
with 5.8 (69.1
MTOE TWh). This
(67.7 TWh) is slightly
vis-a-vis MTOE in 2011, from last years 6.1 MTOE, as all
thefrom its year-ago level of 347.4 kTOE. On the other
fuels utilized international
by households market
registered pulled down
lower
20.0 MTOE
lower by of
0.4energy
percentage input. points
For 2011,
from electricity
the 29.2 hand, energy consumed for industrial purposes
The total marketable products accounted 96.8 oil
consumption levels consumption.
for 5.9
2011. Similarly,
Meanwhile, despite energyits
Oil Refining generated
percent electricity from fossil
output fuels
in 2010constituted
with 5.8 MTOE 71.6 reached MTOE which is slightly higher than its
percent (8.8 MTOE) of the refinery crude run (9.1 percent, equal to 4.3 MTOE, while renewable 1.3 percent demand
share to in theenergy
TFEC, residential use in sector
the AFF
previous year level. Major services and commercial
was
(67.7 TWh) vis-a-vis 20.0 MTOE of energy input.
MTOE) in 2011, resulting to increased refinery energy sources chipped in generated
28.4 percent or 1fossil
.7 MTOE cutestablishments, on the other hand, registered a 2.9
sector plummeted by 2.0 percent
by 13.0 to 6.0
percent to MTOE in 2011,
302.3 kTOE,
utilization The total65.0
from marketable
percent products
in 2010 accounted For 2011,
to 69.1 96.8(Figure electricity from fuels
7). In terms of fuel input to power from its year-ago level of 347.4 kTOE. On the other
from last years 6.1
percent increase in energy demand MTOE, as all tfuelso 2.7 MTOE.
percent (8.8 MTOE) of the refinery
percent in 2011. About 2.8 percent (0.26 MTOE) crude run constituted 71.6 percent, equal to 4.3 MTOE, hand, energy consumed for industrial purposes
utilized by households registered lower
comprised (9.1refinery
MTOE) fuel in 2011, and resulting to increasedgeneration,
losses8. Diesel while renewable geothermal energy steam utilization
sources chipped owns
in the
28.4
reached 5.9 consumption
MTOE which is slightly higher than its in terms of
largest contribution by 41.4 percent with 8.6 MTOE. Transport levels
maintained for 2011. Meanwhile,
its top position
refinery utilization from 65.0
accounted for the bulk of the refinery product percent in 2010 percent or 1.7 MTOE (Figure 7). In terms of fuel previous year level. Major services and commercial
This is followed by coal with 28.0 percent (5.8 despite
having itsthe 1.3largest
percent share
share to tototal
TFEC, final energy
to 69.1 percent in 2011. About 2.8 percent input to power generation, geothermal steam
output with 37.4 percent share, followed by fuel oil establishments, on the other hand, registered a 2.9
MTOE) while natural gas (3.1 MTOE) and hydro (2.4 energy use in the AFF sector plummeted
(0.26
and gasoline, MTOE)
with shares comprised
of 19.6 percent refinery fuel andMTOE) comprised 15.0 percent and 11.4 percent,
and 19.0 percent increase in energy demand to 2.7 M TOE. from
8 The total marketable products and refinery fuel and losses by 13.0 percent to 302.3 KTOE,
percent, respectively. Aviation turbo or Jet A-1 respectively.
may not The
equal rest
to 100comprised
percent due to wind,
variation solar and
of heating itsPHILIPPINE
year-ago level of 347.4 KTOE. On
contributed 9.0 percent share, while LPG and value of each petroleum products as against the crude oil Transport maintained ENERGY
its top position PLAN 2012-2030
in terms of 19
biomass. the other hand, energy consumed for
kerosene each put in 6.7 percent and 1.2 percent heating value. having the largest share to total final energy

8 The total marketable products and refinery fuel and losses may not
equal to 100
18 percent due
PH to Ivariation
L I P P Iof
Nheating
E EN value
E Rof Y P L A N 2 0 1 2 - 2 0 3 0
Geach PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 19 19
petroleum products as against the crude oil heating value.
KTOE, while use of aviation gasoline plunged by from last years 69.7 KTOE due to the increased Despite sustaining its position as the countrys transport consumption by 2.0 percent in the
30.4 percent to 2.5 KTOE in 2011. Meanwhile, usage in the transport and industry sector. most energy-intensive sector in 2011, the same year, despite a measly contribution of 0.1
three petroleum products registered increases Industrial demand for natural gas is mainly from transport sectors aggregate energy consumption percent to the sectors over-all energy demand.
in demand for 2011 led by jet fuel with a double- Pilipinas Shell , which utilizes gas for refinery slightly declined by 0.7 percent compared to
On the other hand, the use of biomass as fuel TOTAL FINAL ENERGY CONSUMPTION BY
digit growth of 30.8 percent, LPG with a 0.6 as processing fuel for gas turbine engines and its year-ago level of 8.0 MTOE. Road transport Oil (petroleum) remained as the sectors
declined by 1.4 percent from 4.9 MTOE in 2010 to SECTOR
4.8 MTOE percent
in 2011 growth, and in
as changes diesel, which consistently supplemental fuel for 4.7 percent reaching merely 0.7 MTOE. In contrast,
the households
furnaces. Natural gas demand, accounted
On the other hand, for LPG more than 87.0in percent
consumption the sector primary fuel accounting for a hefty share of
remain as the most
fuel preference reflect a decrease in biomass widely-consumed oil consumption for transport reached
domestic aviation 1.1 posted
KTOE, a double-digit growth of ofsignificantly
the total transport, dropped down
decreased by 38.0 percent, as to 7.0 MTOEalmost 97.3 percent amidst the 0.9 percent reduction in
Transport Sector
demand of product with 50.8
2.6 percent. percent
However, share use
biomass of the for total oil as utilized by 41 CNG. Another 20 units
29.9 percent, of CNG
bringing demand level to 0.3 MTOE. which is 1.3 percent lower than its previous consumption. Among petroleum products, diesel
5,000 units of LPG-fed taxis was phased-out. Most
consumption, grew by 1.6 percent. This is mainly due to the booming domestic air 4.7 percent reaching merely 0.7 MTOE. In contrast,
Energy consumed for water transport also has theOn
of these taxi units are year 1996 models with 2011 the other
largest hand, LPG consumption
contribution of 53.8 percent in the sector
industrial and commercial purposes went up by 1.8 Despite sustaining its position as the countrys most as
buses is expected to come on stream as soon level.
domestic aviation posted a double-digit growth
percent and 1.7 percent, respectively. franchises were
energy-intensive released.
sector in travel
2011, industry of the country which grew by 11.6
the transport went last down
operation by 4.7 year which were
percent reaching already merely 0.7 in followed by gasoline with 36.0 percent, despiteas almost
included of significantly decreased by 38.0 percent,
29.9 percent, bringing demand level to 0.3 MTOE. 5,000 units of LPG-fed taxis was phased-out. Most
On the other hand, the use of biomass as fuelsectors aggregate energy consumption aslightly percent i n 2 011 s reported by the Civil Aeronautics MTOE. the two (2) - year domestic
In contrast, extension aviation for LPG posted conversion.
a both fuels exhibiting a decline in consumption
Board. Similarly, the BYpublics steady patronage of This
Thus, is these
mainly 1996 due to the
model booming
taxi units were domestic air
eventually of these taxi units are year 1996 models with 2011
Electricity consumption reached 4.8 MTOE in 2011,
declined by 1.4 percent from 4.9 MTOE indeclined TOTAL by FINAL ENERGY
0.7 percent CONSUMPTION
compared to its year-ago double-digit growth of 29.9 percent, bringing of 0.8 percent and 1.3 percent, respectively.
the transport
countrys demand, light rail systems boosted rail travel
dropped industry of
from tothe the country
auto-LPG which grew by 11.6 last operation year which were already included in
a 1.5 percent increase from last years level, due to
2010 to 4.8 MTOE in 2011 as changes in thelevel SECTOR
of 8.0 MTOE. Road demand level 0.3 MTOE. fThis leet. is
However,
mainly ddue espite
percent i n 2 011 a s r eported b y t he C ivil A eronautics to Biofuelsthe two (2) - year extension for LPG conversion.
the growth in consumption
households fuel preferenceof various reflect a decreaseaccounted for more than 87.0 percent of the total by 2.0 percent in the same
industrial transport consumption these
toBoard. the booming developments,
Similarly, domestic the airDOE
the publics travel
steady
continues
industry Thus, these to
continue figure prominently in the
processes indicated by the 4.1 percent uptick in the year, despite a measly contribution of 0.1 percent campaign for auto-LPG and to date, patronage of
31 auto-LPG 1996 model taxi units were eventually
Transport Sector
in biomass demand of 2.6 percent. However,transport, dropped down to 7.0 MTOE which is 1.3 ofthe thecountrys
country which light grew
rail by 11.6
systems percentrail transport
boosted sectors
dropped f energy
rom t he a demand,
uto-LPG f as Hethanol
leet. owever, despite
sectors electricity to the sectors over-all energy demand. conversion shops with PNS license are being
biomass demand. use for Meanwhile,
industrial electricity and commercialpercent lower than its previous level. Energy intransport
2011 asconsumption reported byby the 2.0 Civil
percent Aeronautics
in the same and biodiesel these recorded
developments, increasesthe in consumption
DOE continues to
owned more than half (52.2 percent) of the consumed for water transport also went down by monitored by the DOE to ensure safe operation and
purposes went up by 1.8 percent and 1.7 Board.
year, Similarly,
despite
standards the
compliant publics
a measly conversion steady patronage
contribution of of gasoline
0.1 percent of
fed 10.1 percent and 9.9 percent, respectively.
campaign for auto-LPG and to date, 31 auto-LPG
commercial sectors total energy demand. Figure 11. ENERGY CONSUMPTION OF THE TRANSPORT
percent, respectively. Figure 9. TOTAL FINAL ENERGY CONSUMPTIONSECTOR BY SECTOR ofto the
t countrys
he s ectors o light
ver-all
motor vehicles to auto-LPG. rail
e systems
nergy d emand. boosted rail This may be attributed
conversion shops with to PNS the continued
license are being
BY SUB-SECTOR (in MTOE), 2011
(in Percent), 2011
implementation,
monitored b y especially
t he D OE t o with
e nsure the higher
safe operation and
Coal consumption posted a paltry 0.4 percent
standards compliant conversion of gasoline fed
increase, Electricity
from its 2010 consumption reached
level of 1.8 MTOE. 4.8
This is The DOE
Figure 11. ENERGY has continued
CONSUMPTION with
OF THE campaign to target
its TRANSPORT blend of 10.0 percent for biodiesel
MTOE in 2011, a 1.5 percent increase promote the use of alternative fuels especially in and percent for ethanol as mandated by the
SECTOR BY SUB-SECTOR (in MTOE), 2011 motor v ehicles t o a uto-LPG.
attributed to minimal movement in coal demand of
from last years level, due
the cement manufacturing sector, as to the growth
construction public transport services. To date, there are 61 Biofuels Law.
registered CNG public utility buses (PUB) in the The DOE has continued with its campaign to
activities in(in consumption
which cement of is a various
primary industrial
building
country, of which 41 units are commercially On the other promote the hand, use of alternative fuels especially in
material) slowed down due to government percent
processes indicated by the 4.1 under LPG consumption in
spending ouptick in the sectors electricity demand.
n infrastructures. running. Likewise, the DOE also renewed the the public transport services. To date, there are 61
sector significantly decreased by 38.0
Certificate of Accreditation (CA) of four (4) CNG percent, as almost registered CNG public utility buses (PUB) in the
Meanwhile, electricity owned more than 5,000 units of LPG-fed taxis
Biofuels (CME
half a(52.2 nd ethanol)
percent) consumption
of the rcommercial eflected a transport players and the Certificate of Authority to was phased-out. which country, of 41 units are commercially
Most of these taxi units are
Import (CAI) was likewise issued to RRCG Transport running. Likewise, the DOE also renewed the
modest growth 6.6 percent reaching 221.6 kTOE in
sectors total energy demand. yearCertificate
1996 models with 2011 last operation
System and N. Dela Rosa Liner. As another feat in of Accreditation (CA) of four (4) CNG
2011 from 207.8 kTOE in 2010, as oil companies yeartransport players and the Certificate of Authority to
which were already included in the
consistently CNG infrastructure development, the DOE issued a
Coalcomply
consumption on the posted mandated a paltry biofuel
0.4 twoImport (CAI) was likewise issued to RRCG Transport
(2) - year extension for LPG conversion.
blends. Certificate of Accreditation to the PNOC-EC on 28
percent increase, from its 2010 level of June 2011 as a qualified participant to the NGVPPT Thus, theseand
System 1996 model
N. Dela Rosa taxi units
Liner. were feat in
As another

1.8 MTOE. This is attributed to minimal nd
for the putting up of the 2 daughter station in eventually
CNG dropped
infrastructure from the
development, auto-LPG the fleet.
DOE issued a
Demand for natural gas reached 77.7 kTOE in 2011,
movement in coal demand of the cement Oil (petroleum) remained as the sectors primary Batangas City. However, despite
Certificate these developments,
of Accreditation the on 28
to the PNOC-EC
an 11.5 percent upturn from last years 69.7 kTOE
manufacturing sector, as construction Figure 10. TOTAL FINAL ENERGY CONSUMPTION fuel accounting BY FUEL for a hefty share of 97.3 percent DOEJune 2011 as a qualified participant to the NGVPPT
continues to campaign for auto-LPG
due to the increased usage in the transport and
activities (in which cement is a primary
TYPE (in Percent), 2011 amidst the 0.9 percent reduction in consumption.
and for the putting
to date, 31 auto-LPG up of the 2nd daughter
conversion shopsstation in
industry sector. Industrial demand for natural gas is Oil (petroleum)
Figure 12. ENERGY remained as the sectors primary
CONSUMPTION OF THE TRANSPORT
building material) slowed down due Among petroleum products, diesel has the largest Batangas C ity.
with PNS license are being monitored by the
mainly from Pilipinas Shell , which utilizes gas for SECTOR BY FUEL TYPE (in Percent), 2011
fuel accounting for a hefty share of 97.3 percent
toprocessing
government under spending on contribution of 53.8 percent followed by gasoline DOE to ensure safe operation and standards
refinery as fuel for gas turbine engines amidst the 0.9 percent reduction in consumption.
with 36.0 percent, despite both fuels exhibiting a
infrastructures.
and supplemental fuel for furnaces. Natural gas Among petroleum products, diesel has the largest compliant conversion
Figure 12. ENERGY CONSUMPTION of gasolineOFfed THEmotor TRANSPORT
decline in consumption of 0.8 percent and 1.3 SECTOR BY FUEL TYPE (in Percent), 2011
consumption for transport reached 1.1 kTOE, as contribution of 53.8 percent followed by gasoline vehicles to auto-LPG.
percent, respectively.
utilized by 41 CNG. Another 20 units of CNG buses
Biofuels (CME and ethanol) consumption with 36.0 percent, despite both fuels exhibiting a

is expected to come aon modest
reflected stream agrowth s soon as 6.6
franchises
percent decline in consumption of 0.8 percent and 1.3 The DOE has continued with its campaign to
Biofuels continue to figure prominently in the
were released.
reaching 221.6 KTOE in 2011 from percent, respectively. promote the use of alternative fuels especially
transport sectors energy demand, as ethanol and
207.8 KTOE in 2010, as oil companies in public transport services. To date, there
biodiesel recorded increases in consumption of 10.1
consistently comply on the mandated Biofuels continue to figure prominently in the are 61 registered CNG public utility buses
percent and 9.9 percent, respectively. This may be
transport sectors energy demand, as ethanol and
biofuel blends. attributed to the continued implementation, (PUB) in the country, of which 41 units are
biodiesel recorded increases in consumption of 10.1
especially with the higher target blend of 10.0 commercially running. Likewise, the DOE
percent and 9.9 percent, respectively. This may be
Demand for natural gas reached 77.7 percent for biodiesel and percent for ethanol as also renewed the Certificate of Accreditation
attributed to the continued implementation,
KTOE in 2011, an 11.5 percent upturn mandated by the Biofuels Law. (CA) of four (4) CNG transport players and
especially with the higher target blend of 10.0
percent
for biodiesel and percent for ethanol as
mandated by the Biofuels Law.
20 PHILIPPINE ENERGY PLAN 2012-2030 G Y P L A N 2 0 1 2 - 2 0 3 0
PHILIPPINE ENER 21
abundance, availability and affordability. Likewise, growth in industrial output of 1.9 percent for the
of 29.2 percent to reach 226.1 kTOE in 2011 from
biomass remain to own a hefty share of 58.0 period necessitated 5.9 MTOE worth of energy,
last years 175.0 kTOE, notwithstanding its meager The commercial sector sustained the domestic
percent of the total residential demand. Fuelwood reflecting closely the sectors requirement in 2010.
share of 3.8 percent in the total industry demand. economy amidst the external shocks brought by the
was the major biomass used, contributing 45.0
The consecutive stream of double-digit growths10 slowdown in the Eurozone and in the US market
percent share to total consumption of the sector, Figure 14. ENERGY CONSUMPTION OF THE INDUSTRY SECTOR may be attributed to the constant inflow of that crippled commerce and trade. However, as the
followed by charcoal with 9.4 percent share, and BY SUB-SECTOR (in Percent), 2011
the Certificate of Authority to Import (CAI) Household electricity consumption, which investments in the with
demand mining 93.6sector percent which with was energy prevailing
households, trend in owning
other economic a 27.9 percent sectors, energy
share, as
agriwaste with 3.5 percent share.
was likewise issued to RRCG Transport System accounts for 26.8 percent share in the sectors liberalized intensive by virtue industriesof Republic 9 Act (R.A.) 7942 use in the commercial sector continues to increase
garnering 79.2 percent demand increased by 4.1 percent to 1.7 MTOE

otherwise known as the Philippine Mining Act of by 2.9 percent in 2011, although this is a significant
and N. Dela Rosa Liner. As another feat in CNG energy demand, dropped by 0.7 percent, from its
Household electricity consumption, which accounts share. However, total energy used for various from 1.6 MTOE in 2010. Food processing and
1995. Meanwhile, the energy consumed in the drop compared to its industries previous growth of 10.1
infrastructure
for 26.8 percent development,share in the the DOE issued
sectors a 2010 level of 1.62 MTOE to 1.61 MTOE in 2011.
energy manufacturing processes dropped by 0.8 sugar production needed biomass
construction The mining sub-sector posted a remarkable growth
sub-sector reached 152.0 kTOE, percent. This Commercial Sector can be attributed 11to the economic
demand, dropped
Certificate of Accreditation by 0.7 percent,
to the PNOC-EC from its 2010
on This may be attributed to increasing awareness percent due to sluggish production caused by levels of 1.0 MTOE, representing a share of 17.6
translating to aof m29.2
arginal s hare o f 2 .6 p ercent o ut o f
percent to reach 226.1 kTOE in 2011 from boom in the business process outsourcing (BPO)
level o f 1 .62 M TOE
28 June 2011 as a qualified participant to the t o 1 .61 M TOE i n 2 011. T his may in energy conservation and the use of more weaker demand for locally-made products in percent of the total industry demand,
total industry dlast emand.
years 175.0 kTOE, notwithstanding its meager industry, including customer services,
The commercial as well while
sector sustained as the domestic
be attributed to increasing awareness
NGVPPT for the putting up of the 2nd daughter energy efficient household appliances due to the in energy both domestic and international markets. the aggregate volume of petroleum products
share of 3.8 percent in the total industry demand. hotels, r etail s economy amidst the external shocks n
tores a nd m alls t hat a re e xpanding o brought by the
conservation
station in Batangas and the
City. use of more energy efficient IEC campaign under the Energy Efficiency and consumed dropped bythe
6.1 Eurozone
percent
Coal, as fuel The input for cement
consecutive and basic
stream metals
of double-digit growthsareas with growing
10
slowdown populations
in and to 1.3in
improving
and MTOE
the US market
household appliances due to the IEC campaign
Conservation Program of the Department. production, The may mining
contributed sub-sector
30.9
be attributed percent to posted
with a remarkable
the demand
constant from 1.4
disposable
inflow of MTOE
incomes 12in the previous year.
. Thus, energy consumption
that crippled commerce and trade. However, as the
under the Energy Efficiency and Conservation
Residential Sector levels reaching growth 1.8 of
MTOE 29.2
in percent
2011, a slight
investments in the mining sector which was to reach
increase 226.1 growth r eached prevailing TOE
2 .66 M in 2in
trend 010 to 2.74
other MTOE isectors,
economic n energy
Program of the Department.
Meanwhile, kerosene consumption of 0.4 percent KTOE from inits 2011
liberalized by from
previous last
level.
virtue of years 175.0
Electricity
Republic wAct KTOE,
as (R.A.) 2011. Commercial
7942 Sector 11
use in the commercial sector continues to increase
Figure 13. ENERGY CONSUMPTION OF THE RESIDENTIAL drastically went down by 12.1 percent to the second primary known
notwithstanding
otherwise fuel itsconsumed
meager
as by the
share
the Philippine of Mining
3.8 Act of by 2.9 percent in 2011, although this is a significant
SECTOR BY FUEL TYPE (in Percent), 2011
111.7 KTOE from its 2010 level of 127.2 households, owning
percent
1995. in a
Meanwhile, 27.9 percent
the total the industry share,
energy demand. as
consumed in Figure the 16. ENERGY drop compared OFto
CONSUMPTION THE its COMMERCIAL
previous growth of 10.1
KTOE, as more households prefer cleaner demand increased Theconstruction by 4.1 percent
consecutive to 1.7
sub-sector
stream ofMreached
TOE from 152.0 kTOE,
double-digit percent. This can be attributed to the economic
1.6 MTOE growths in translating
2010. 10 Food processing
and more convenient fuels. Thus, LPG has mayto bea attributed
marginal share toand sugar
theof 2.6 percent out of
constant boom in the business process outsourcing (BPO)
The manufacturing sub-sector continues to account production inflow industries
total iof needed
ndustry d biomass
emand. levels of 1.0 industry, including customer services, as well as
Residential Sector become a viable choice
for much of the total as fuel for
industry cooking
demand with 93.6 MTOE, representing
investments in the mining
a share of 17.6 percent of the
Meanwhile, kerosene consumption drastically went
and lightning purposes, as residential LPG
9
sector which was liberalized by virtue of hotels, retail stores and malls that are expanding on
percent with energy intensive industries garnering total industry demand, while the aggregate volume
Total energy consumption in the residential sector down by 12.1 percent to
demand in 2011111.7 kTOE from its 2010
stood at 804.5 KTOE, a Coal, as
Republic Actfuel (R.A.) input
7942 for cement and
otherwise known basic metals areas with growing populations and improving
79.2 percent share. However, total energy used for of petroleum production, products consumed dropped by 6.1 with demand
dropped by 2.0 percent from its 2010 level of 6.1 level of slight
127.2 increase kTOE, as of more contributed 30.9 percent disposable incomes12. Thus, energy consumption
various manufacturing 0.2households
percent
processes
prefer
from last by 0.8
dropped as the Philippine Mining Act of 1995.
MTOE to 6.0 MTOE for 2011, which may be cleaner and more convenient fuels. Thus, LPG has percent to 1.3 levels MTOE reaching
from 1.4 1.8 MTOE
MTOE in the previous
in 2011, a slight increase growth reached 2.66 MTOE in 2010 to 2.74 MTOE in
years
percent leveldue
of 803.1 KTOE. production caused by
to sluggish year. Meanwhile, the energy consumed in the
attributed to the decline in the consumption of its become a viable choice as fuel for cooking and of 0.4 percent from its previous level. Electricity was 2011.
weaker demand for locally-made products in both construction sub-sector reached 152.0
three (3) main fuels biomass, electricity and lightning purposes, as residential LPG demand in the second primary fuel consumed by the
kerosene. The measly 0.2 percent growth in Industry
domestic Sector
2011 stood at 804.5
and international markets.
kTOE, a slight increase of 0.2 Figure 15. ENERGY KTOE,
households, translating
CONSUMPTION OFtoTHE
owning a INDUSTRY
marginal
a 27.9 SECTOR share of share, as
percent Figure 16. ENERGY CONSUMPTION OF THE COMMERCIAL
household use of LPG was not enough to offset the percent from last years level of 803.1 kTOE.
BY FUEL 2.6demand
percentincreased
TYPE (in out of total
Percent), 2011 industry demand.
by 4.1 percent to 1.7 MTOE from SECTOR BY FUEL TYPE (in Percent), 2011
negative growth in the sectors total energy In 9 2011,

Includes the industry
Sugar, sector
Food Processing, wentCement,
Chemicals, down Basic Metals, 1.6 MTOE in 2010. Food processing and sugar
Pulp & Paper, Machinery & Equipment
demand. from second to third biggest energy
Industry Sector Coal, as fuel input
production for needed
industries cement biomass and basic levels of 1.0
consumer behind transport and residential metals
MTOE, production, representing a contributed share of 17.6 30.9 percent of the
Despite the TotalPHILIPPINE
2.6 energy
percent ENERGY
consumption
reduction PLAN in 2012-2030
in the residentialIn 2011,
biomass sectors,the with 26.0 percent
industry sharedown
sector went of the total
from 22 percent with demand levels reaching
total industry demand, while the aggregate volume
consumption sector level of 3.5 Mby
dropped TOE 2.0in percent
2011, it from
continues
its 2010 levelsecond energy to demand.
third biggest The modest energy growth
consumer behind
in industrial 1.8of MTOE petroleum in 2011, products a slight consumed
increase dropped
of 0.4 by 6.1
Consequently,
The commercial demand sector for each
sustained of the
thesectors
domestic
to be a popular
of 6.1 choice
MTOE as to primary
6.0 MTOE household
for 2011,fuel, which maytransport and residential sectors, with 26.0 percent
output of 1.9 percent for the period necessitated percent
percent to 1.3 its
from MTOE
previousfrom 1.4 level. MTOE Electricity
in the previous
major fuels went up in 2011. Electricity, the major
economy amidst the external shocks brought
particularly among rural
be attributed to theareas,
declinedue in the to consumption
its share
5.9of
MTOE the worth total energy
of energy, demand.
reflecting The closely
modest the wasyear. the second primary fuel consumed by the energy by uthe sed slowdown
in the sector inwith
the52.2
Eurozone percent and share
inin the
abundance, availability and affordability. Likewise,
of its three (3) main fuels biomass, electricity sectors requirement in 2010. growth in industrial output of 1.9 percent for the 2011, slightly US market increased that from 1.40 MTOE
crippled commerce to 1.43
and
biomass remain and kerosene. to own The a measly
hefty share
0.2 percent of 58.0 growth inperiod Thenecessitated
manufacturing 5.9 MTOE worth of continues
sub-sector energy, Figure 15. ENERGY CONSUMPTION OF THE INDUSTRY SECTOR MTOE in 2010 trade. and
However,2011, respectively.
as the prevailingWhile oil
trend
percent of the total residential demand. Fuelwood reflecting closely the sectors requirement in 2010. BY FUEL TYPE (in Percent), 2011 products, with a share of 35.8 percent, registered a
household use of LPG was not enough to offset to account for much of the total industry in other economic sectors, energy use
was the major biomass used, contributing 45.0 4.1 percent increase which resulted to 0.94 MTOE in
the negative growth in the sectors total in the commercial sector continues to
percent share to total consumption of the sector, Figure 14. ENERGY CONSUMPTION OF THE INDUSTRY SECTOR 2010 to 0.98 MTOE in 2011, as diesel, the most
energy demand. increase by 2.9 percent in 2011, although
followed by charcoal with 9.4 percent share, and BY SUB-SECTOR (in Percent), 2011 utilized oil product in the sector, registered higher
agriwaste with 3.5 percent share. this is a significant drop compared to its

Despite the 2.6 percent reduction in biomass previous growth of 10.1 percent. This can
11
Trade and services, Consequently,
excluding Transport demand for each of the sectors
consumption level of 3.5 MTOE in 2011, it
Household electricity consumption, which accounts 10
Double-digit growth rates for 2006-2011
12 be major fuels went up in 2011. Electricity, the major
www.colliers.com/Colliers
attributed to the economic boom in
Int'l Q4 2011.pdf
for 26.8 continues
percent share to be ain popular choice as
the sectors primary
energy theenergy business process
used in the sector outsourcing with 52.2 (BPO)
percent share in
household
demand, dropped by fuel, particularly
0.7 percent, from among
its 2010 rural industry, including customer services,
2011, slightly increased from 1.40 MTOE to 1.43
areas,
level of 1.62 MTOE due to 1to
.61 its abundance,
MTOE in 2011. Tavailability
his may PHILIPPINE ENERGY PLAN 2012-2030 as MTOE
well asin hotels, 2010 retail storesrespectively.
and 2011, and malls 23 While oil
be attributed to increasing Likewise,
and affordability. awareness in energy
biomass remain thatproducts, with a share of 35.8 percent, registered a
are expanding on areas with growing
conservation and the use of
to own a hefty share of 58.0 percent of the more energy efficient populations
4.1 percent and increase improving disposable
which resulted to 0.94 MTOE in
household total appliances
residential due to
demand.the IEC campaign was
Fuelwood incomes2010 12to . 0.98 Thus, MTOE
energy in 2011, as diesel, the most
consumption
under the Energy Efficiency
the major biomass used, contributing 45.0 and Conservation growth utilized reachedoil product
2.66 MTOE in the insector,
2010 to registered
2.74 higher
Program opercent f the Department.
share to total consumption of the MTOE in 2011.
Figure 13. ENERGY sector, CONSUMPTION
followed by charcoal OF THE RESIDENTIAL with 9.4 percent 9 Includes Sugar, Food Processing, Chemicals, Cement,
11
Trade and services, excluding Transport
10 12
share, and agriwaste with 3.5 percent share. Double-digit growth rates for 2006-2011 www.colliers.com/Colliers Int'l Q4 2011.pdf
Basic Metals, Pulp & Paper, Machinery & Equipment 11 Trade and services, excluding Transport
10 Double-digit growth rates for 2006-2011 12 www.colliers.com/Colliers Intl Q4 2011.pdf

The manufacturing sub-sector continues to account
for much of the total industry demand with 93.6
percent with energy intensive industries9 garnering
79.2 percent share. However, total energy used for

GHG emission from all sectors dropped except for
power generation which accounts for 44.1 percent
As production output from the fishery subsector of the total GHG emission (Figure 18) and at the
declined by 4.0 percent in 2011, its energy demand same time contributed the largest chunk equivalent
plunged by 16.3 percent to 177.7 kTOE from 212.2 to 32.3 MtCO2e (Table 1). It posted a significant
Consequently, demand for each of the sectors coupled with the rising cost kTOE of in
fuel2010.
and operatingThis was due to the effect of percent of the total GHG emission (Figure
major fuels went up in 2011. Electricity, the expenses resulting in lower successive
agricultural weather disturbances coupled with the
output
Figure 18. GHG EMISSION BY SECTOR AND ACTIVITY
(in MtCO2e) 18) and at the same time contributed the
major energy used in the sector with 52.2 percent from both commercial and municipal fisheries. rising cost of fuel and operating expenses resulting largest chunk equivalent to 32.3 MtCO2e
share in 2011, slightly increased from 1.40 MTOE The agri-industry subsector in lower
alsoagricultural
suffered aoutput 7.5 from both commercial (Table 1). It posted a significant increase
to 1.43 MTOE in 2010 and 2011, respectively. percent drop in its energy demand to 123.5 and municipal fisheries. The agri-industry subsector of 3.3 percent from its 2010 level of 31.3
also suffered a 7.5 percent drop in its energy
While oil products, with a share of 35.8 percent, KTOE in 2011 from the previous years 133.6 MtCO2e which was mainly driven by higher
demand to 123.5 kTOE in 2011 from the previous
registered a 4.1 percent increase which resulted KTOE as destructive storms that hit the grains- utilization of fossil fuels particularly coal
years 133.6 kTOE as destructive storms that hit the
to 0.94 MTOE in 2010 to 0.98 MTOE in 2011, as producing regions of the country in the second and natural gas.
grains-producing regions of the country in the
diesel, the most utilized oil product in the sector, half of 2011 resulted tosecond lower crop half production.
of 2011 resulted to lower crop
registered higher consumption of 0.63 MTOE Similarly, the forestry subsector production. registered
Similarly, thethe forestry subsector The GHG emission of the transport sector
in 201, from 0.55 MTOE in 2010. Meanwhile, biggest drop in energy consumption
registered of 27.9
the biggest drop in energy consumption slightly decreased by 0.9 percent from
biomass (including biofuels) with 12.1 percent percent to 1.2 KTOE from its year-ago level
of 27.9 percent to 1.2 kTOE of from its year-ago level 13
EO 23 series of 2011 Declaring A Moratorium On The Cutting And 23.0 MtCO2e in 2010 to 22.7 MtCO2e in
share had a significant increase of 2.2 percent, 1.6 KTOE. The stringentof process for approval
1.6 kTOE. of process for approval of
The stringent Harvesting Of Timber In The Natural And Residual Forests And 2011 which is attributed to the decrease in
Creating The Anti-Illegal Logging Task Force
reached 0.32 MTOE in 2011. environmental permits has led to the reduction petroleum demand, but still accounted for
consumption of 0.63 MTOE in 201, from 0.55 MTOE environmental permits has led to the reduction in
in forestry operations that was further supported a substantial share of 31.0 percent to the
in 2010. Meanwhile, biomass (including biofuels) forestry operations that was further supported
Agriculture, Fishery and Forestry (AFF) Executive Order (E.O.) PHILIPPINE 2313 which provided ENERGYforPLAN 2012-2030 GHG emission from all sectors dropped except 24 total GHG emission (Table 1).
with 12.1 percent share had a significant increase of Executive Order (E.O.) 2313 which provided for a
Sector
2.2 percent, reached 0.32 MTOE in 2011. a moratorium
moratorium on theon cutting and aharvesting
the cutting nd harvesting of of timber for power generation which accounts for 44.1
timber inin the
the country.
country.
The energy requirement of the AFF
Agriculture, Fishery and Forestry (AFF) Sector sector being Table 1. GHG EMISSION BY SECTOR AND ACTIVITY, 2010 2011
the least energy intensive among economic While petroleum productsproducts
While petroleum persists as the sectors
persists as the sectors Total Non Co2 Emission Total GHG Emission Total GHG Emission
sectors, was rconsiderably
The energy equirement of cut the by 13.0
AFF percent
sector primary primary energy source commanding a share of 61.6
being the energy source commanding a share of CO2 Emission (MtCO2e)
Sector (MtCO2e) (MtCO2e) (% Change)
from last
least years
energy level of
intensive 347.4
among KTOE to
economic 302.3was
sectors, 61.6 percent, it posted a decline of 13.6 percent
percent, it posted a decline of 13.6 percent from its
2010 2011 2010 2011 2010 2011 2010-2011
considerably
KTOE in 2011.cut by decline
The 13.0 percent from last by
was triggered years
from its year-ago
year-agolevel levelof of215.5
215.5 kTOE
KTOE to 1to86.1
186.1kTOE in 2011.
Electricity 31.16 32.20 0.12 0.13 31.28 32.32 3.34
thelevel of 347.4
reduction kTOE to
of energy 302.3 kTOE across
consumption in 2011.
allThe
KTOE in This is attributed to the drop in diesel consumption
2011. This is attributed to the drop in
decline was triggered by the reduction of energy of 12.5 percent due to the Transport 22.81 22.60 0.14 0.14 22.95 22.74 -0.91
subsectors for 2011. diesel consumption of 12.5 percent dueweakened
to the fishery
consumption across all subsectors for 2011. subsector. fishery Electricity was the Electricity
second major fuel Industry 11.58 11.32 0.06 0.06 11.64 11.38 -2.23
weakened subsector.
with a share of 38.0 percent, while demand levels Other 5.89 5.87 0.03 0.03 5.92 5.90 -0.30
was the second major fuel with a share of
Figure 17. ENERGY CONSUMPTION OF THE AFF SECTOR BY
stood at 114.8 kTOE, a drop of 10.2 percent from Energy 1.01 0.93 0.00 0.00 1.02 0.94 -7.70
FUEL TYPE (in Percent), 2011 38.0 percent, while demand levels stood Total 72.45 72.93 0.36 0.36 72.81 73.29 0.66
last years 127.9 kTOE.
at 114.8 KTOE, a drop of 10.2 percent % Distribution Change in Distribution

from last years 127.9 KTOE. Electricity 43.01 44.15 33.32 34.63 42.96 44.11 1.14
ENVIRONMENTAL IMPACT
Transport 31.49 31.00 38.30 37.72 31.52 31.03 -0.49
ENVIRONMENTAL
GHG Emission IMPACT Industry 15.98 15.52 17.73 17.30 15.99 15.53 -0.46
Other 8.13 8.05 9.72 9.55 8.13 8.06 -0.08
GHG
The Emission
total GHG emission from energy-related Energy 1.40 1.28 0.94 0.79 1.39 1.28 -0.12
activities reached 73.3 million tons of carbon Total 100.00 100.00 100.00 100.00 100.00 100.00
The totalequivalent
dioxide GHG emission (MtCO2e) from energy-
in 2011 from its 2010
related activities reached
level of 72.8 MtCO 73.3 million
e. The 0.7 percent increase was Table 2. GHG EMISSION BY FUEL, 2010 2011
2
attributed
tons of carbon to higher
dioxidedemand for fossil fuels in
equivalent Total Non Co2 Emission Total GHG Emission Total GHG Emission
power generation which offsets the GHG reduction CO2 Emission (MtCO2e)
(MtCO2e) in 2011 from its 2010 level of Sector (MtCO2e) (MtCO2e) (% Change)
from
72.8 other remaining
MtCO2e. The 0.7economic
percent sincrease ectors.
2010 2011 2010 2011 2010 2011 2010-2011
attributed to higher demand for
was Oil 38.51 35.69 0.20 0.19 38.71 35.88 -7.31
GHG fuels
fossil emission from all generation
in power sectors dropped
whichexcept for Coal 26.86 29.59 0.15 0.16 27.01 29.75 10.16
power generation which accounts for 44.1 percent
As production output from the fishery subsector offsets the GHG reduction from other Gas 7.08 7.65 0.01 0.01 7.09 7.65 7.97
of the total GHG emission (Figure 18) and at the
production output from the fishery subsector remaining economic sectors.
Asdeclined by 4.0 percent in 2011, its energy demand 72.45 72.93 0.36 0.36 72.81 73.29 0.66
same time contributed the largest chunk equivalent
declined
plunged by by 4.0
16.3 percent in 177.7
percent to 2011,kTOE
its from
energy 212.2 % Distribution 2008-2009 Difference
to 32.3 MtCO2e (Table 1). It posted a significant
demand plunged
kTOE in by 16.3
2010. This percent
was due to 177.7
to the effect of Oil 53.15 48.94 57.00 53.77 53.17 48.96 -4.21
13 EO 23 series18.
of GHG
2011 EMISSION
Declaring BY A Moratorium OnACTIVITY
The Coal 37.07 40.58 41.08 44.19 37.09 40.60 3.50
KTOE from 212.2
successive weather KTOE in 2010. This
disturbances waswith
coupled due the Figure
Cutting And Harvesting
SECTOR AND
(in MtCOOf 2e) Timber In The Natural And
to rising cost of fuel and operating expenses resulting
the effect of successive weather disturbances Gas 9.77 10.48 1.92 2.04 9.74 10.44 0.71
Residual Forests And Creating The Anti-Illegal Logging
in lower agricultural output from both commercial Task Force 100.00 100.00 100.00 100.00 100.00 100.00
and municipal fisheries. The agri-industry subsector
also suffered a 7.5 percent drop in its energy
demand to 123.5 kTOE in 2011 from the previous
years 133.6 kTOE as destructive storms that hit the
grains-producing regions of the country in the
The same decreasing trend was seen in the requirements, GHG emission intensity fell Philippine Energy Outlook 2012-2030
industry sector, which contributes 15.5 by 3.0 percent from 1.28 tCO2e/PhP100K at
percent to the total GHG emission, posted 11.4 2000 prices from its 2010 level of 1.24 tCO2e/
KEY ASSUMPTION, PARAMETERS target of energy intensity reduction of 8.0
MtCO2e or 2.2 percent lower from its 2010 PhP100K.14 The decrease is an impact of a higher percent by 2015 with 2005 as basis and Asia-
level of 11.6 MtCO2e (Table 1). This is mainly change in GDP (3.7 percent growth) rather than AND METHODOLOGIES
Pacific Economic Cooperations (APEC) target
due to the reduction of petroleum
utilization for power generation signifying possible The LCS of the PEP serves as the reference case in to reduce APECs aggregate energy intensity
improvements consumption in the thermal for industrial activities.
efficiency of fossil-
Figure 19. GHG EMISSION BY FUEL (in MtCO2e)
the demand projection of the Philippine Energy (energy demand per unit of gross domestic
Other
fuelled power sectors (commercial, residential
plants. Outlook 2012-2030. In building the LCS, impacts product - GDP) by 25 percent in 2030 and 45
and agricultural) registered the lowest of policy interventions and developments percent by 2035 with 2005 as the base year.
aggregate emission of 5.9 MtCO2e
Socio-economic Impact on the use of efficient and environmentally
showing a 0.3 percent decrease benign end-use technologies in the future are The base year used for the projections is 2011,
The CO2 emission
compared per TPES
to its increased,
2010 level posting
due1.86
to simulated (Table 3). It takes into account new and the targets of LCS are summarized in Table 3.
tCO2e/TOE the from lesser1.85 tCO 2e/TOE which
utilization of LPG translated
in the and existing policies, programs and measures of
to a minimal
commercial rate of 0.4 sector
percent. and The partly
increase
oncan
the the Philippine government relating to the energy The following are the general assumptions on
be attributed to a greater
decrease of diesel consumption in the consumption of
sector which are currently being implemented the trends of major factors affecting the demand
petroleum agricultural products sector. particularly for power
generation. Oil In terms of economic and will be pursued within the timeframe of the for various energy products:
consumption shared requirements,
almost half of Plan. As such, the virtue of this scenario rests
GHG emission intensity fell by 3.0 percent from 1.28
the GHG emissions corresponding to on assessing the effects of such measures which ECONOMIC GROWTH
tCO2e/PhP100K at 2000 prices from its 2010 level of
49.0 percent (Figure 19) posting a level may evolve either as a consequence of need
1.24 tCO2e/PhP100K.14 The decrease is an impact of
of 35.9 MtCO2e which is 7.3 percent Figure 20. SOCIO-ECONOMIC
a higher change in GDP (3.7 percent growth) rather 2006-2011
IMPACT OF GHG EMISSION LEVEL,
(energy security) or the commercialization of The average annual growth rate of the countrys
lower that
than the change in its 2010
GHG level. Coal
emission andpercent
(0.7 natural energy technologies (economics). On the supply real GDP from 2001 to 2011 is 4.8 percent, with
gas consumption, on the
growth). Likewise, GHG emission per capita other hand, 2.0 side, the PEP uses two (2) scenarios for its 2012- industry15 and services16, both energy-intensive
shared 40.6 percent (29.82e per person
reduced by 1.5 percent from 0.79 tCO MtCO2e) and 2030 outlooks. The first scenario simulates how sectors, as main drivers of economic growth. On
1.8
in 2010 to 10.4
0.78 percent (7.7person
tCO2e per MtCO2e), respectively
in 2011 (Figure the future energy supply will evolve given the the other hand, energy consumption in industry
20). (Table 2). 1.6
interaction of market forces under a BAU. The and services sectors increased, on the average,
1.4 second one considers the impact of aggressive by 2.8 percent and 1.1 percent, respectively, for
GHG Emission per Electricity implementation of the plans, programs and the past ten (10) years.
1.2
Generation policies of the government under the LCS of
1.0
supply outlook. As the countrys economy is expected to benefit
The electricity generation emission 0.8 from strong macro- and micro-
coefficient remained at a range of Table 3. TARGETS OF LOW CARBON SCENARIO economic fundamentals, official
0.6
0.4 to 0.5 since 2000. The coefficient government figures17 project real
continuously posted a modest increase 0.4 o Increase energy savings on all sectors for electricity and petroleum products
across the entire planning horizon GDP to increase by 7.5 percent
from 0.46 tCO2e/MWh in 2010 to 0.47 0.2 o Compressed Natural Gas (CNG)-fuelled buses to increase to 15,000 units by in 2012, 6.5 percent in 2013, 6.7
tCO2e/MWh in 2011 although there is 2030 percent in 2014, and 7.5 percent
0.0
an escalation in fossil fuel utilization for 2000 2001 2002 2003 2004 2005 2006 2007 2008 o CNG-fuelled taxis to reach 16,000 units in 2030
from 2015 to 2016. Meanwhile,
power generation signifying possible tCO2e per capita tCO2e/MWh tCO2e/100K, CY 2000 = 100 o Auto-LPG fed taxis to reach 23,000 units in 2030 the Philippines is projected to be
improvements in the thermal efficiency o E-vehicles to reach 230,000 units in 2030; the worlds top sixteenth (16th)
of fossil-fuelled power plants. o Biodiesel blend to reach 2% (2011-2014), 5% (2015-2019), 10% (2020-2024), economy by year 2050, with the
the change in GHG emission (0.7 percent growth). 20% (2025-2030)
countrys GDP growing by as
Socio-economic Impact Likewise, GHG emission per capita reduced by o Bioethanol blend to reach 10% (2011- 2019); 20% (2020-2030)
much 8.4 percent from 2017-
1.5 percent from 0.79 tCO2e per person in 2010 2020, and by 7.3 percent from
The CO2 emission per TPES increased, posting to 0.78 tCO2e per person in 2011 (Figure 20). Consistent with the global call to combat and/ 2021-2030 . 18
1.86 tCO2e/TOE from 1.85 tCO2e/TOE which or reduce the effects of climate change while
translated to a minimal rate of 0.4 percent. supporting economic growth and development, 15 Includes manufacturing, construction, mining and quarrying,
The increase can be attributed to a greater the Plan adheres to commitment of international 16 electricity & water
14 Note that GHG emission intensity is not comparable to Includes trade, transport, communication & storage, finance,
consumption of petroleum products particularly previous years published intensity level due to change in energy intensity reduction particularly, the real estate, private and government services
for power generation. In terms of economic GDP reference period from 1985 base year to 2000 base Association of Southeast Asian Nations (ASEAN) 17 NEDA and DBCC
14
Note that GHG emission intensity is not comparable to previous year. 18 The World in 2050, HSBC January 2012 report
years published intensity level due to change in GDP reference
period from 1985 base year to 2000 base year.

POPULATION number of vehicles per type of fuel use, PRIMARY SUPPLY OUTLOOK in 2030. The increase is also attributed to the
fuel efficiency and mileage, fuel conversion, growth in natural gas production of 6.9 percent
The Outlook assumes that population shall and GVA. Energy demand projection for rail
2012-2030
This is due to the significant share of coal
across as fuel Fossil Fuels
the entire planning period under LCS.
increase from 94.01 million persons in 2010 to transport used number of passengers for requirement in power generation and industrial
102.97 million persons in 2015, translating to the Philippine National Railways (PNR) and
The countrys total primary
processing, which energy supply (TPES)
is anticipated Fossil
for the Fuels A.
entire Oil
under theplanning BAU scenario period. will
Oil grow
will at
be an annual
the second major fuel
an average annual growth rate of 1.8 percent. Metro Rail Transit/Light Rail Transit (MRT/
average rate with
of28.2 percent to
3.4 percent average
reach share 73.9 MTOE after reflecting A. Oil the Total primary oil supply is projected to grow b
Population growth rate is expected to slow down LRT) lines and population. On the other
in 2030, from requirements
39.4 million of tons oil ofintensive
oil equivalent transport sector. percent per year under the BAU scenario, from
for the succeeding five-year calendar interval to hand, for water and air transport, indicators
(MTOE) in Likewise,
2011. By end geothermal
of 2030, ecoal nergy
willconsidered
be biggest as Total one oprimary
f the MTOE
oil supply in 2011 to 18.3
is projected to MTOE
grow by in 2030. Du
1.6 percent (2016-2020), 1.5 percent (2020- such as number of passengers, kilometer/
fuel in the major fuel inputs for
TPES accounting in pan ower
average generation
share of will b2.1 e having
percent a per
transport
year under sectors theheavy
BAU requirements
scenario, for oil,
2025), and 1.3 percent (2025-2030)19. ton-kilometer flown, cargo throughput significant s hare o f 1 8.8 p ercent o n t he a verage. remain a mong t he m ajor f uels i n t he T PES for the
This is due to the significant share of
30.1 percent in the energy mix (Figure 21). Fossil Fuels coal as fuel from 12.4 MTOE in 2011 to 18.3 MTOE in
and sub-sectoral value-added were used in requirement in power generation and industrial 20 years. to transport sectors
2030. Due
OIL PRICES energy demand projection. In general, the processing, which is anticipated for the entire A. Oil
heavy requirements for oil, it will
Outlook also incorporates future plans and Figure 21. TOTAL PRIMARY ENERGY SUPPLY BY FUEL TYPE (LCS VS BAU)
planning period. Oil will be the second major fuel For the period 2016 to 2030 under LCS, grow
remain among the major fuels in
Crude oil price assumptions in the Outlook programs of the DOTC, with the foreseen with 28.2 percent average share after reflecting the Total primary oil supply total oil supply is projected to slow down due t
is projected to grow by 2.1
the TPES for the next 20 years.
are based on the Organization of Petroleum development in other related sectors, requirements of oil intensive transport sector. percent per year under penetration of alternative fuels for transport su the BAU scenario, from 12.4
Exporting Countries (OPEC) average crude notably local tourism. Likewise, geothermal energy considered as one of the MTOE in 2011 to 18.3 electric
MTOE vehicles, CNG
in 2030. (both to
Due for taxis and buses
major fuel inputs in power generation will be having a transport sectors heavy For the
auto-LPG. period
requirements 2016 to
Implementation 2030 under
of
for oil, it will higher biofuel b
import price, a proxy for international oil prices,
significant share of 18.8 percent on the average. remain among the major LCS,
for growth
both
fuels in tdiesel in
he TPES total
and oil supply
for gasoline,
the next which is are target
in its World Oil Outlook (WOO) 2011-2035. It is The Industry sectors aggregate demand
20 years. projected
reach the m toaximum
slow down level dueof 2to
0 pthe ercent by 2025
assumed to increase from US$109.9/barrel in was divided into energy intensive and less-
penetration
likewise contribute of alternative
to the sfuels
lothful forrequirement
201120 to around US$146/barrel to US$189/ energy intensive industries. Included under Figure 21. TOTAL PRIMARY ENERGY SUPPLY BY FUEL TYPE (LCS VS BAU)
For the period 2016 to (Figure
transport 2030 2under 2).
suchLCS, as electric
growth vehicles,
in
barrel for the next 20 years. the energy intensive industries are food
CNG (both for taxis and buses)
total oil supply is projected to slow down due to the
processing, sugar, paper and pulp industries,
penetration of alternative fuels for transport such as
and auto-LPG. Implementation
SECTORAL ENERGY DEMAND cement manufacturing, chemicals, basic
electric vehicles, CNG (both
Figure 22. TOTAL OIL SUPPLY, ACTUAL (LCS VS BAU)
for taxis and blends
buses) and
of higher biofuel for both
METHODOLOGIES metal and machinery and equipment. auto-LPG. Implementation of higher biofuel blends
diesel and gasoline, which are
Meanwhile, other manufacturing activity, for both diesel and gasoline, which are targeted to
targeted to reach the maximum
The energy demand outlook for this planning mining and construction fall under less- reach the maximum level of 2of0 p ercent by 2by
025, shall shall
level 20 percent 2025,
period considers a wide range of issues and energy intensive industries. Variables such as likewise contribute to the slothful requirement for oil
This is due to the significant share of coal as fuel likewise contribute to the slothful requirement
trends that could have major implications in GVA, commodity prices, production targets Meanwhile, TPES under the LCS will 2reach
(Figure 2). 77.5
requirement in power generation and industrial for oil (Figure 22).
the countrys energy consumption patterns. and population were used as indicators for MTOE, 5.0 percent higher as compared to the BAU,
processing, which is anticipated
which will grow at an for the
average annual of 3.6 percent.
The readily observable factors include, among energy demand model of these sub-sectors.
entire planning The difference is due be
period. Oil will to the
the Figure 22. TOTAL OIL SUPPLY, ACTUAL (LCS VS BAU)
increase in the
others: GDP, sectoral gross value-added (GVA)
second major fuel with 28.2 percent
production of RE for power generation, particularly
and price indices, particularly in industry, For the Residential sector, socio-economic
average geothermal share afterenergy reflecting growing the by around 4.2 percent
commercial and agriculture sectors. Relevant indicators such as household final
requirements across ofthe
oilpintensive
lanning horizon transport from 8.6 MTOE in 2011 to
factors and information that impact on the consumption expenditure (HFCE) and
sector. Likewise, around 18.8 geothermal
MTOE in 2030. energy The increase is also
energy consumption for each sector were household population were considered in
Meanwhile, considered attributed to the growth in natural gas production of
TPES under as the
oneLCS of will
the reach major77.5 fuel
considered in the simulation, specifically: calculating energy consumption. Both data
MTOE, 5.0 percent
inputs higher in6.9 percent across
as compared
power generation to the
the entire
BAU, be
will planning period under
were sourced from the National Statistics
which will grow at an
having a significantLCS. annual
average shareof of3.6 percent.
18.8 percent
Demand levels for Transport, which is Office (NSO).
The difference is
on the average. due to the increase in the The total oil supply under LCS will grow at a s
the most energy-intensive sector, demand
production of RE for power generation, particularly annual average rate of 1.9 percent compared to
levels were derived separately for each For Commercial and Agriculture sectors, geothermal energy
growing by around 4.2 percent
Meanwhile, TPES under the LCS will
of the four (4) modes of transportation GVA for trade and services, and agriculture, across the planning horizon from 8.6 MTOE in 2011 to
reach 77.5 MTOE, 5.0 percent higher as
road, rail, air and water. For road transport, fishery and forestry were used, respectively. around 18.8 MTOE in 2030. The increase is also
compared to the BAU, which will grow
related indicators used as independent
attributed to the growth in natural gas production of
at an average annual of 3.6 percent. The
variables to project the demand include 6.9 percent across the entire planning period under
LCS. difference is due to the increase in the

production of RE for power generation, The total oil supply under LCS will grow at a slower
particularly geothermal energy growing by The total oil supply under LCS will grow at
annual average rate of 1.9 percent compared to BAU.
19 Population Projections (Medium Assumptions), National around 4.2 percent across the planning horizon a slower annual average rate of 1.9 percent
Statistics Office
20 Actual 2011 FY price, DOE-Oil Industry Management Bureau from 8.6 MTOE PHILIPPINE in 2011 ENERGY to around PLAN 18.82012-2030MTOE
compared to BAU.


governments efforts in promoting the
utilization of renewable energy and cleaner
fuels in power generation for environmental
considerations.
B. Coal Figure 23. COAL SUPPLY, ACTUAL (LCS AND BAU) Figure 25. TOTAL RE SUPPLY, ACTUAL (LCS AND BAU)
will be sourced from hydropower while its fuel
additional installed capacity of 3,535
Meanwhile, natural gas supply will grow faster under MW. input uFor nder the
the Lperiod
CS will be around 4.6 MTOE.
2012-2030,
Under the BAU, total coal supply will LCS growing at an annual average rate of 6.9 percent
hydropower will constitute an annual
increase at a faster rate of 7.2 percent to reach 11.5 MTOE in 2030. Assuming realization of Combined supply level of solar and wind under
average share of around 4.8 percent to
production targets, the growth will also be largely the BAU is projected to increase at an average
annually, from 7.7 MTOE in 2011 the total primary energy supply, while
due to the governments effort to promote the rate of 5.9 percent per year, from 7.7 kTOE in
to 28.7 MTOE in 2030 bringing its under the LCS its share will reach up
utilization of green fuel for power generation (green 2011 to almost 22.9 kTOE in 2030. The level of
share in the TPES to 38.9 percent in to 5.7 percent, where its supply will
fuel means RE plus natural gas). supply of these sources of energy under the
2030, from 19.6 percent in 2011. The grow to 4.6
LCS will be MTOE in 2030,
remarkably forto
high yearly
increase at an
increase in coal supply is due to the Renewable Energy average rate of 3.5 percent. By
average growth rate of 20.4 percent end of annually
significant contribution of coal as fuel 2030 bringing the BAU, itsolar
undercombined will be expected
and wind supply to
input for power generation. Estimated RE will account for an annual average share of 32.6 that around
around 2.9 MTOE
263.7 kTOE ofin
fuel2030.
input for The policy
aggregated capacities of 9,700MW percent across the planning period (Figure 21). The power generation will be sourced from
mechanisms set under the RE law to include
of new coal generating plants will be supply of RE will grow slightly at an average rate of hydropower
the Feed-in-Tariff while its(FIT) fuel input and under
the Renewable
considered within the planning period 0.8 percent per year under the BAU, from 16.0 MTOE the Portfolio
LCS willStandards be around(RPS), 4.6 MTOE. among others, will
increasing its installed capacity to in 2011 to 18.7 MTOE in 2030 (Figure 25). On the serve as a catalyst to the rapid increase on the
14,600 MW. Further, the upward trend other hand, under the LCS, its contribution to TPES level of supply
Combined supply of tlevel
hese sof ources
solarof andenergy.
in coal supply is also attributed to C. Sampaguita
Natural Gas will improve to 3.2 percent average growth rate, wind under the BAU is projected to
by 2023, Sulu Sea by 2025, among
increasing requirements of industry, specifically others. reaching 29.3 MTOE in 2030. 21). The supply of RE will grow slightly at an increase Biomass 21
at an averagein rate
share the RE
of 5.9 supply
percent mix under
per the BAU
Geothermal energy will continue to be the countrys scenario will remain to be the second highest to
B. for cement and basic metals production (Figure
Coal Under the BAU, natural gas is projected to increase by
horizon, from 3.3 MTOE in 2011 to 8.2 MTOE in 2030 average rate of 0.8 percent perfor year under theof tyear, from 7.7 KTOE in 2011 to almost 22.9 KTOE
major R E resource, accounting 58.5 percent he account for an annual average contribution of 20.3
23). 4.9 Meanwhile,
percent annually naturalacross the entire
gas supply will grow planning
faster BAU, from in 2030. The level of supply of these sources of
(Figure 24). The countrys gas supply outlook will still total RE 16.0 MTOE
supply in 2011
in the BAU. to 18.7
Geothermal MTOE inenergy
percent , albeit its declining supply levels, from 4.9
Under the BAU, total coal supply will increase at a be largely under hinged
LCS growing at an
on the annual average
production rate
of the 2030 (Figure 25). On
production will reach the10.9
other hand,
MTOE under
in 2030 the
from energy under the LCS will be remarkably high to
8.6
PHILIPPINE ENERGY PLAN 2012-2030 30 MTOE in 2011 to 2.7 MTOE in 2030 or a negative
faster rate of 7.2 percent annually, from 7.7 MTOE in
However, coal supply under the LCS will increase Malampaya
of 6.9 percent field, to including
reach 11.5 additional
MTOE in gas 2030. LCS, its contribution to TPES will improve to 3.2 increase
MTOE in 2011, which translates to an average annual at an average growthper rateyear
of 20.4 percent
growth of 3.1 percent (Figure 5). It can be
2011 to 28.7 MTOE in 2030 bringing its share in the (uncontracted
at a slower rate of 4.8 percent, reaching 18.9 Assuming realization of production targets, gas) until 2025. Aside from the percent
growth average growth
of 1.3 percent rate, reaching
across the 29.3 MTOE
entire annually
planning bringing combined solar and wind
noted that the drop in biomass supply stems from the
TPES to 38.9
MTOE percent
level,in with
2030, from 19.6
a lower average percent
sharein to TPES Libertad
thegas
growthfield in will
Cebu also
which
bestarted
largelycommercial
due to the in period. A total of 220 MW of additional geothermal
2030. supply residential sectors decreasing demand for this fuel at
to around 263.7 KTOE in 2030. The policy
2011. The ofincrease in coal supply is due to the production
25.2 percent compared to that of BAU. This governments effort to promote the utilization in 2010, potential gas fields foreseen to power capacities will be online within the next mechanisms 20 around set10.3 underpercent
the RE law to include the
annually, particularly fuel
significant contribution of coal as fuel input for power produce commercially within the next 20 years years thus, expanding its total installed capacity to
is due to the governments efforts in promoting of green fuel for power generation (green fuel Geothermal energy will continue to be the Feed-in-Tariff demand (FIT) for and the Renewable
household cooking Portfolio and heating.
generation. Estimated aggregated capacities of include San Martin by 2015, Sultan sa Barongis and 2,003 MW. On the other hand, supply of geothermal
the utilization of renewable energy and cleaner means RE plus natural gas). countrys major RE resource, accounting for Standards However, (RPS),biomass among supply
others,in will serve
power as
generation will
9,700MW of new coal generating plants will be Sampaguita by 2023, Sulu Sea by 2025, among others. energy in LCS will reach to around 18.8 MTOE, more
fuels in power generation for environmental 58.5 percent of the total RE supply in the BAU. a catalyst grow toconsiderably
the rapid increase at an annual
on theaverage
level ofrate of 6.4
considered within the planning period than doubling its production
2011 level will of reach
8.6 MTOE,
considerations.
increasing its installed capacity to 14,600 MW. Figure 24. NATURAL GAS SUPPLY, ACTUAL (LCS AND BAU) Geothermal energy 10.9 and supply percent of these due sources to additional
of energy. capacities of biomass-fed
garnering 64.0 percent of total RE. Under the NREP, power plants that will be put up within the planning
Further, the upward trend in coal supply is also MTOE in 2030 from 8.6 MTOE in 2011, which
geothermal energy capacity in power generation shall period.
attributed to increasing requirements of translates to an average annual growth of 1.3 Biomass21 share in the RE supply mix under the
increase by 75.0 percent at the end of 2030.
C. Naturalfor
industry, specifically Gascement and basic percent across the entire planning period. A BAU scenario will remain to be the second highest
Meanwhile under the LCS, biomass supply will take as
metals production (Figure 23). total of 220 MW of additional geothermal power to account for an annual average contribution of
Within the next 20 years under the BAU, hydropower much as 7.1 percent by of the total primary energy
Under the BAU, natural gas is capacities
supply will will be online
register within
a modest growth the of next0.6 20 20.3 percent , albeit its declining supply levels,
percent supply end of 2030 compared to the 6.8 percent
However, projected
coal supply under the
to increase by 4.9LCS percent will yearsper thus,
year, fexpanding its total
rom 2.4 MTOE installed
in 2011 to 2.6 M capacity from
TOE in 2030. 4.9 MTOE in 2011 to 2.7 MTOE in 2030 or
share under the BAU. Correspondingly, the negative
increase at annually
a slower rate of
across the entire planning4.8 percent, a negative growth of 3.1 percent
to The 2,003 MW. On the
commissioning of other
hydro hand,
power supply projects ofwithin growth of biomass supply per will year (Figure
slightly improve to a
reaching 18.9
horizon, MTOE from level,
3.3 MTOE with a inlower
2011 geothermal energy in LCS will reach to around 25). It can be noted that
the planning period will be bringing an additional negative 2.1 percent due to its utilization for power the drop in biomass
average share to TPES
to 8.2 MTOE in 2030 (Figure 24). of 25.2 percent 18.8 MTOE, more than doubling its 2011 level of supply generation.
installed capacity of 3,535 MW. For the period 2012- stems from the residential sectors

compared to Thethat of BAU. gas
countrys This is due outlook
supply to the 8.62030,
MTOE, hydropower
and garnering will 64.0
constitute
percent an ofannual
total RE. average
decreasing demand for this fuel at around 10.3

governments efforts in promoting the share the of NREP,
around 4.8 percent to the total primary
will still be largely hinged on the Under geothermal energy capacity in percent annually, particularly fuel demand
utilization of renewable energy and cleaner
production of the Malampaya power generation shall increase by 75.0 percent reach
energy s upply, w hile u nder t he L CS i ts s hare w ill for household cooking and heating. However,
fuels in power generation for environmental
considerations.
field, including additional gas at up
theto end 5.7
ofpercent,
2030. where its supply will grow to 4.6 biomass supply in power generation will grow
(uncontracted gas) until 2025. MTOE in 2030, for yearly average rate of 3.5 percent.
considerably at an annual average rate of 6.4
By end of 2030 under the BAU, it will be expected that
Aside from the Libertad gas field Within the next 20 years under the BAU, hydropower percent due to additional capacities of biomass-
23. COAL SUPPLY, ACTUAL (LCS AND BAU) around 2.9 MTOE of fuel input for power generation 21
in Cebu which started commercial production Renewable
Meanwhile, natural Energy
gas supply will grow faster under supply will register a modest growth of 0.6 percent fed power does plants that
not include will be put up within the
biofuels
in 2010, potential gas fields foreseen to produce LCS growing at an annual average rate of 6.9 percent per year, from 2.4 MTOE in 2011 to 2.6 MTOE in planning period.
to reach 11.5 MTOE in 2030. Assuming realization of
commercially within the next 20 years include RE will account for an annual average share of 2030. The commissioning of hydro power projects
San Martin by 2015, Sultan sa Barongis and 32.6 percent production targets, acrossthe growth will also period
the planning be largely
(Figure within the planning period will be bringing an
due to the governments effort to promote the 21 does not include biofuels
utilization of green fuel for power generation (green
fuel means RE plus natural gas).

Renewable Energy

Meanwhile under the LCS, biomass supply will (oil, coal and natural gas) is foreseen to increase FINAL ENERGY DEMAND and 2030. It will surpass the residential sectors
take as much as 7.1 percent by of the total primary at 4.5 percent per year across the planning energy demand to become the second largest
energy supply end of 2030 compared to the 6.8 period, from 72.9 MtCO2e in 2011 to 168.2
OUTLOOK 2012 - 2030 energy consumer, with an average share of 33.7
percent share under the BAU. Correspondingly, MtCO2 in 2030. Emission from the consumption percent from 2012 to 2030. This consumption
the negative growth of biomass supply will of coal fuels shall account for an annual average
TOTAL FINAL ENERGY CONSUMPTION (TFEC) pattern will bring the household sectors energy
slightly improve to a negative 2.1 percent due to rate of 54.5 percent of the total GHG emission, demand to reduced share of 17.9 percent share
its utilization for power generation. while those from oil-based fuels will account for Under the LCS, the countrys TFEC is expected during the planning period. Meanwhile, the
an annual average share of 35.9 percent, with to increase at an average rate of 2.8 percent commercial sector which is considered to be the
Alternative Fuels natural gas contributing 9.6 percent.. annually from 2011 to 2030. The total energy major driver of the countrys economic growth
demand level is expected grow steadily from in the next
39.1 MTOE in 2030 at an annual average growth rate 20 28.
Figure years, TOTAL willFINAL
holdENERGY
an average share BY SECTOR
CONSUMPTION
A. Biodiesel Over the planning period, half or around 23.0 of
MTOE in 2011 Energy
2.8 percent. to 39.1consumption
MTOE in 2030 at of 11.9
is projected to percent. While the agriculture (including
SHARE (ACTUAL 2000-2011, LCS 2012-2030)
Alternative Fuels Over 52.0 percentperiod,

the planning of thehalf totalor aemission will
round 52.0 come
percent an annual
increase average growth
at a slower pace rate
of 1of
.4 p2.8 percent.
ercent fishery
from 2011 to and forestry - AFF) sector will remain to
Biodiesel supply under both scenarios is expected from total
of the the transformationemission will sector come orfrom
electricity the Energy2016, picking up fis
consumption rom 2016-2020
projected at an average
to increase at obe f 3the
.4 least energy user with 0.9 percent average
A. to reach
Biodiesel 1.8 MTOE in 2030 from its 2011 level generation. Meanwhile, from
transformation sector or electricity generation. among the energy percent,
a slower pacedof own
1.4to 3.2 percent
percent fromp2011 er year
to f2016,
or 2020-2025,
share of the total energy demand (Figure 28).
of 115.5 KTOE growing at an annual average end-use sectors, transport will
Meanwhile, from among the energy end-use sectors, account for the and
picking up up from
by 3.5 percent for at2025-2030
2016-2020 an average (Figure
of 3.427).
Biodiesel rate of under
supply 15.5 percent. Biodiesels
both scenarios contribution
is expected to transport biggest will share
account to the for total
the GHG emission
biggest around
share to the Energy use in the industry sector
Figure 27. TOTAL FINAL ENERGY CONSUMPTION BY SECTOR
reach 1.8 to the in
MTOE TPES is from
2030 also its
expected
2011 level to increase
of 115.5 from total translating
GHG emission to an annual
around average to
translating share of 24.7
an annual will grow most rapidly at 5.1 percent
kTOE growing
0.3 percent at an share
annual inaverage
2011 torate 2.4 percentof 15.5 share average percent,share followed
of 24.7 percent,
by industry followed
comprisingby industry
more annually, spurred by the foreseen
percent. in Biodiesels
2030. The contribution
target biodiesel to the blend,
TPES is which
also will
comprising
than 16.4 more than 16.4
percent, while percent,
around while
6.8 apercent
round 6will .8 increase in the activities of the
expected increaseto increase from 0.3 percent share in 2011
over the planning period under the come from other sectors such as commercial, percent will come from other sectors such as manufacturing sector. The energy
to 2.4 percent
biomass roadmapshare in 2030.
22
of The
the NREP,target requiresbiodiesel a total commercial,
residential residential and agriculture
and agriculture (Figure (Figure
26). 26). requirements of the commercial sector
blend, which will increase
biodiesel supply of 0.4 MTOE in over the planning period combined with trade and services will
under the biomass roadmap22 of the NREP, Figure 26. GHG EMISSION, 2011-2030 (LCS)
2016, 0.8 MTOE in 2020, and 1.7 expand by 2.7 percent on the average.
requires a total biodiesel supply of 0.4 MTOE
MTOE in 2025. Meanwhile, the increased utilization
in 2016, 0.8 MTOE in 2020, and 1.7 MTOE in
of alternative fuels will result to a
2025.
B. Bioethanol Energy
2.9 percent use increase
in the industry
in the sector
transport will grow mos

rapidly at
sectors energy5.1 percent
use. Onannually,
the other spurred by the
B. Bioethanol
While the move to increase utilization foreseen increase
hand, the residential and AFF sectors in the activities of th

of move
environment-friendly fuels of is manufacturing sector.
levels of demand will exhibit an annual The energy requirements o
While the to increase utilization
the commercial sector combined with trade and
further strengthened,
environment-friendly fuels is bioethanol further average contraction of 0.6 percent and
services will expand by 2.7 percent on the average
strengthened, blendbioethanol
is projected to is
blend increase
projected toto
a 0.8 percent, respectively.
Meanwhile, the increased utilization of alternativ
increase to a maximum blend of 20 percent in
maximum blend of 20 percent in
fuels will result to a 2.9 percent increase in the
2025. Over
2025. the planning
Over thehorizon, planning bioethanol
horizon,
transport sectors energy use. On the other hand, the
production under both
bioethanol scenarios under
production is projected
both 39.1 MTOE in 2030 at an annual average growth rate
percent, down to 3.2 percent per Figure 28. TOTAL FINAL ENERGY CONSUMPTION BY SECTORAL
Although the transport sectors energy demand SHARE residential
will (ACTUAL 2000-2011, and
LCSAFF sectors levels of demand wi
2012-2030)
to grow at an average
scenarios is projected to grow at anrate of 9.5 percent, of 2.8 percent. Energy
year for consumption and
2020-2025, is projected
up by 3.5 to
be tapered down with the penetration of more exhibit an annual average contraction of 0.6 percen
reflected faverage rom its lrate
evel of of 9.5
107.5kTOE
percent,ireflected n 2011to increase at a spercent
lower pace
foro2025-2030
f 1.4 percent from 2011
(Figure 27).to
efficient fuels, it will remain to be the biggest energy and 0.8 percent, respectively.
597.9 kTOE in 2030. Meanwhile, the energy 2016, picking up from 2016-2020 at an average of 3.4
from its level of 107.5KTOE in 2011to consumer in terms of average share across the entire
sectors aggressive target of up to 85 percent percent, down to 3.2 percent per year for 2020-2025,
597.9 KTOE in 2030. Meanwhile, the Although the transport sectors
planning horizon at 35.5 percent share. On the other Oil will remain as the countrys major fuel, with an
bioethanol blend is still under research and and up by 3.5 percent for 2025-2030 (Figure 27).
energy sectors aggressive target of energy demand will be tapered
hand, the industry sector is seen to account for much average share of 43.5 percent of the total energ
development stage.
up to 85 percent bioethanol blend is still under Meanwhile,
Meanwhile, under under the the
the LCS, LCS, the total
total GHG GHGdrop drop to Figure 27. TOTAL FINAL down of with
ENERGY
the increase
CONSUMPTION the in the
penetration countrys TFEC between 2011 demand (Figure 29). The countrys dependence on
BY SECTOR of
research and development stage. 137.1 to
M 137.1
tCO e iMtCO2e
n 2 030, w in 2030,
hile g rowth while
s growth
lows d own a slows
t a n moreand 2030. fuels,
efficient It will
it willsurpass
remain the residential sectors petroleum, in spite of foreseen increases of oil price
GHG EMISSION 2
down at an annual average rate of 3.4 percent to beenergy demand to become the second largest energy
the biggest energy consumer in the international market, will continue as demand
annual average rate of 3.4 percent over the planning
GHG EMISSION over Although
the planning bulk horizon. Although will bulk
come of consumer,
in terms of average with an
share average
across share of 33.7 percent increases by an average of 1.4 percent per year, from
Given the dynamics of energy demand under the BAU horizon. of the emission
the emission will come from
from the electricity generation sector, its share to the the electricity from 2012
the entire planning horizon at to 2030. This consumption pattern will 2011 to 2030. Among petroleum products, aviation
scenario, total GHG emission from fossil fuels (oil, coal
total generation
GHG shall be lower itsat share
48.6 percent only, GHG
vis--vis bring the household sectors energy demand to gasoline consumption will grow the fastest, at 8.9
and natural Given gas) the dynamics
is foreseen to of energyademand
increase under the
t 4.5 percent sector, to the total shall 35.5 percent share. On the other
its 5 2.5 p ercent s hare u nder t he B AU. reduced share of 17.9 percent share during the percent per year, with the heightened interest in loca
per year BAU scenario,
across total GHG period,
the planning emissionfrom from fossil 72.9 fuels be lower at 48.6 percent only, vis--vis its 52.5 hand, the industry sector is seen to
planning period. Meanwhile, the commercial sector tourism. Meanwhile, diesel and gasoline will continu
MtCO2e in 2011 to 168.2 MtCO2 in 2030. Emission percent share under the BAU. account for much of the increase in
which is considered to be the major driver of the to be the most widely-used petroleum products, with
from the 22 From the existing mandated 2.0% blend , biodiesel blend will
consumption of coal fuels shall account for FINAL ENERGY DEMAND OUTLOOK 2012 - the countrys TFEC between
increase to 5.0% starting 2015; 10% starting 2020; and, 20% countrys economic growth 2011 in the next 20 years, will average shares of 20.1 percent and 10.1 percent in
an annual average
starting 2025 rate onwards.
of 54.5 percent of the total 2030
GHG emission, while those from oil-based fuels will
hold an average share of 11.9 percent. While
Energy in the the
use the total sector
industry oil demand, respectively.
will grow most Transport wi
agriculture (including fishery and forestry - AFF)
rapidly at remain as the major petroleum
5.1 percent annually, spurred by the consuming secto
account for an annual average share of 35.9 percent,
TOTAL FINAL ENERGY CONSUMPTION sector will remain to be the least energy 0.9 with an average share of 67.9 percent in the total o
user with increase
foreseen in the activities of the
with natural gas contributing 9.6 percent.. demand
32 P H I L I P P I N E E N E R G Y P L A N 2 0 1 2 - 2 0 3 0 percent average share of the Ptotal energy demand
H I L Imanufacturing
PPINE ENE RG P L fA
Y The
sector. or Nthe
energy 20 entire
12-2 planning
0 3 0 pof
requirements eriod. 33

Under the LCS, the countrys TFEC is expected to (Figure 28). the commercial sector combined with trade and

percent average share, followed closely by the
residential sector with 32.0 percent (Figure 30).
Figure 29. FINAL ENERGY CONSUMPTION BY FUEL, 2000-2030 the volume of demand for petroleum Its consumption will increase more than four times annual average share of 35.5 percent in the

products by as much as 6.0 percent for its 2011 level of 1.8 MTOE, to 7.6 MTOE in 2030. TFEC. Its energy requirement is projected to
End-use demand (non-power application) for
thecoal nextis 20 years. to increase by 7.8 percent on
expected The rise in coal consumption can be attributed grow at an annual average of 2.9 percent, from
the average, owning a 13.5 percent share to the to the projected increase in the production of its demand level of 8.0 MTOE in 2011 to 13.6
percent average Electricity share, willfollowed
contribute closely
an average by the
of planning cement and basic metals which are used as MTOE in 2030. The bulk of the sectors energy
final energy demand across the entire
residential 22.9 s ector
percent w ith 3 2.0 p ercent
share to the will ( Figure
finalincrease 3 0).
energy more than construction materials for public and private demand will be used for land transport, where
Figure 29. FINAL ENERGY CONSUMPTION BY FUEL, 2000-2030 period. Its consumption
demand across the entire
four times its 2011 level of planning
1.8 MTOE, to 7.6 sector infrastructures. about 80.0 percent of domestic traffic and 60.0
End-use demand (non-power application) for
horizon, making it the second-most
MTOE in 2030. The rise in coal consumption can percent of freight traffic is by land24.
coal is expected to increase
be attributed by projected
7.8 percent on in the
consumed fuel to after the oil. Electricity increase Availability of efficient technologies, particularly
the average, owning a 13.5 percent share to the
production is of projected
cement and
consumption to basic
grow metals by which end-use equipment for household cooking using With the projected annual increase in vehicle
final energy are demand
u sed a s across
c the entire
onstruction m planning
aterials f or p ublic and
period. an average
Its private
consumption
s
of 3.8will
ector i
percent annually
increase
nfrastructures. more

over
than LPG and electricity will pave the way for reduction registration of 4.4 percent25, where 40.0 percent
the entire
four times planning
its 2011 level of horizon. Its use
1.8 MTOE, in
to 7.6 in the use of traditional fuels, and as such, end-use of the national total is registered vehicles in

the transport sector is seen to expand biomass consumption is projected to post a constant Metro Manila26, oil will remain as the sectors
MTOE in 2030. The rise in coal consumption can
Availability of efficient technologies, particularly
remarkably,
be attributed from
to the its 2011
projected level of
increase in 10
the decline in the next 20 years. Its consumption will major fuel, constituting the bulk (83.3 percent)
end-use equipment for household cooking using
production KTOEof tocement as much as basic
and 1.1 MTOE metals in 2030 which fall from its 2011 level of 4.8 MTOE to 2.6 MTOE in of the sectors total energy requirement for the
LPG and electricity will pave the way for
are used dueas to expected governments
construction materials for extension
public and 2030, translating to an average yearly decline of 3.3 next 20 years. Diesel will account for nearly half
reduction in the use of traditional fuels, and as
private and sector infrastructures.
expansion plans for the light rail percent. The residential sector, as the major user of of oil demand at 42.0 percent share . However,
such, end-use biomass consumption is projected
Oil The
will remainNREPs as targets on increasing
the countrys major mandated
fuel, with an biofuels system (MRT and LRT), possible addition biomass, is seen to significantly contribute to the a significant volume of its consumption will
blend for gasoline and diesel products will of Availability
other massof efficient
transit technologies,
systems, theparticularly
andCONSUMPTION entry ofBY reduction in biomass demand. Household usage be displaced due to the projected entry of
average share of 43.5 percent of the total energy Figure 30. TOTAL PRIMARY ELECTRICITY
increase total biofuel demand from 0.2 MTOE end-use equipment for household cooking using
demand (Figure 29). The countrys dependence electric vehicles. The industry sector will constitute SECTOR, 2000-2030 (ACTUAL VS LCS) of biomass will drop by as much as 50.6 in terms additional CNG-fueled buses and significant
in 2011 to 2.0 MTOE in 2030. Increasing the
on petroleum, in spite of foreseen increases of oil theLPG largest and portionelectricity will pave
of electricity demandthe way at 32.4 for of levels from 3.5 MTOE in 2011 to 0.4 MTOE increase in biodiesel blend, causing an annual
ethanol and biodiesel blend of gasoline and reduction in the use of traditional fuels, and as
prices in the
diesel, international
respectively, by 20 market,
percent will continue
in 2030 will percent average share, followed closely by the in 2030 or at an average rate of 10.3 percent per average reduction in the diesel demand of 0.4
such, end-use biomass consumption is projected
The NREPs
as demand targets on increasing
increases an mandated
by biofuels average biofuels residential sector with 32.0 percent (Figure 30). year. 1.7 However, there will beaand
noticeable increase percent (Figure 31).
expand demand for by ofas 1.4 percent
much as percent and percent for industrial commercial reduction in the diesel demand of 0.4 percent (Figure
blend for gasoline
per12.4 year, percent
from and
2011 diesel to products
per 2030.
year. Among will
The Figure
higher 30. TOTAL PRIMARY ELECTRICITY CONSUMPTION BY of 2.5 percent and 1.7 percent for industrial
biomass usage, respectively, during the planning 31). and
increase total biofuel demand from
petroleum products, aviation 0 .2 MTOE
gasoline
consumption of biofuels is projected to SECTOR, 2000-2030 (ACTUAL VS LCS) period. commercial biomass usage, respectively, during Gasoline is the second major fuel of the
in 2011 to
consumption2.0 MTOE
consequently willin lessen
2030. the
grow Increasing
fastest,
the volume atthe
8.9
of demand the planning period. sector. Due to increased penetration of auto-
Gasoline is the second major fuel of the sector. Due
ethanol and
percent biodiesel blend
per year, products
for petroleum of gasoline
with the heightened by as and
much as 6.0 Lastly, end-use demand for natural gas will expand by to increased LPG, electricpenetration of auto-LPG,
vehicles (including electric
e-trikesvehicles and
diesel, respectively,
percent by 20 npext
ercent
20 yiears.
n 2030 will 19.6 percent per year due to increased requirements (including e-trikes and hybrid vehicles) and significant
interest in for
localthe tourism. Meanwhile, Lastly, end-use demand for natural gas will expand hybrid vehicles) and significant increase in
expand demand for biofuels by as much as from the bytransport, industry

diesel and gasoline will continue to 19.6 percent per yearand due commercial
to increased
12.4 percent per year. The higher sectors. The
be Electricity
consumption the of most will contribute an
widely-used
biofuels petroleum
is projected
average of 22.9
to 23
requirements from the transport, total
CNG-fueled vehicles would industry to Figure 31. TRANSPORT ENERGY DEMAND
percent with
products, share
averageto the shares
final energy
of 20.1 demand 31,000 and units commercial
by 2030. sectors.
Natural
Thegas is also
CNG-fueled
consequently lessen the volume of demand expected to figure prominently as a fuel 23 it shall
across
percent products the entire
and 10.1 by planning
percent horizon,
in the making it vehicles would total to 31,000 units by
for petroleum as much as total
6.0 be used in several industrial parks, particularly in
the second-most consumed fuel after oil.
percent oil
for demand,
the next 20 respectively.
years. Transport 2030. Natural gas is also expected to figure
Electricity consumption is projected to grow South Luzon, as well as in other emerging industrial
will remain as the major petroleum prominently as a fuel it shall be used in
parks. Aside from this, natural gas technology is
by an average of 3.8 percent annually over
consuming
Electricity sector with
will contribute an average
an average of share
22.9 several
also expected industrial
to be parks,
used for particularly
cooling commercial in
the entire planning horizon. Its use in the
percent of share
67.9 to the in
percent final
the energy
total demand South as Luzon, as well as in other emerging
transport sector is oil demand
seen to expand centers, such large shopping malls.
across forthe the entire
entire planning
planning horizon,
period. making it industrial parks. Aside from this, natural
remarkably, from its 2011 level of 10 kTOE to
the second-most consumed fuel after oil. gas technology
TOTAL FINAL ENERGY is also expected to be used
CONSUMPTION, BY
as much as 1.1 MTOE in 2030 due to expected
Electricity consumption
Thegovernments
NREPs targets is projected
on and to grow
increasing for cooling commercial centers, such as
extension expansion plans to post a constant decline in the next 20 years. Its SECTOR
by an mandated
average of biofuels 3.8 percent annually over large shopping malls.
for the light rail blend system for (MRT
gasoline and LRT), possible consumption will fall from its 2011 level of 4.8 MTOE
the entire planning horizon. Its use in the
andaddition of other mass transit systems, and the entry
diesel products will increase total to 2.6 MTOE in 2030, translating to an average yearly Transport Sector
transport sector is seen to expand
of electric vehicles. The industry sector will constitute
biofuel demand from 0.2 MTOE in 2011 decline of 3.3 percent. The residential sector, as the TOTAL FINAL ENERGY
remarkably, from its 2011 level of 10 kTOE to
the largest portion
to 2.0 MTOE in 2030. Increasing the of electricity demand at 32.4 major user of biomass, is seen to significantly CONSUMPTION, BY SECTOR
The transport sector will continue to dominate the
as much as 1.1 MTOE in 2030 due to expected
ethanol and biodiesel blend of gasoline countrys total energy demand, with an annual
governments extension and expansion plans to post a constant decline in the next 20 years. Its Transport Sector
in 2030 End-use demand (non-power application) for average share of 35.5 percent in the TFEC. Its
for the and diesel,
PHILIPPINE
light respectively,
ENERGY
rail system (MRT byand
PLAN20 LRT),
percent
2012-2030
possible consumption will fall from its 2011 level of 4.8 MTOE 34
coal is expected to increase by 7.8 percent on the
will expand demand for biofuels by as much as to 2.6 MTOE in 2030, translating to an average yearly energy requirement is projected to grow at an increase in the bioethanol blend, gasoline
addition of other mass transit systems, and the entry The transport sector will continue to dominate 24 ADB-ASEAN Regional Road Safety Program Country
12.4 percent per year. The higher consumption decline average, owning a 13.5 percent sharesector,
to theas final annual average of 2.9 percent, from its demand level consumption is expected to post a sluggish growth of
of electric vehicles. The industry sector will constitute of 3.3 percent. The residential the Report: Philippines (CR7 PHL) p.5
the countrys total energy demand, with an
of 8.0 MTOE in 2011 to 13.6 MTOE in 2030. The bulk
of biofuels
the largest portion is of
projected
electricity to demand
consequently lessen major
at 32.4 energy demand across the entire planning
user of biomass, is seen to significantly period. 0.7 25
percent
Ibid, p.9 annually during the entire planning
of the sectors energy demand will be used for land period,
23 15,000 CNG bus and 16,000 CNG taxi by 2030 26 to Ibid,
reach
p.73.3 MTOE in 2030.
transport, where about 80.0 percent of domestic
PHILIPPINE ENERGY PLAN 2012-2030 34 traffic and 60.0 percent of freight traffic is by land24. Given the vulnerability of global oil prices to
geopolitical tensions and the growing concern on
34 PHILIPPINE ENERGY PLAN 2012-2030 With the projected annual increase in P HILIPPINE ENERGY PLAN 2012-2030
vehicle 35
25 sustainable development, the DOE will continue to
registration of 4.4 percent , where 40.0 percent of intensify its campaign for the utilization of cleaner
the transport sector will grow substantially to reach industries to meet the increasing demand for building
1.2 MTOE in 2030, from a mere 1 kTOE in 2011. materials in the construction sector. Likewise, coal
demand in paper production, beverages and other
Industrial Sector food production is also projected to increase during
the 20-year planning horizon. Coal consumption in
Following the development
the bioethanol blend, gasoline consumption Consequently, the industrial sectors energy trajectory of similarly- industry is projected to expand by an average rate of
demand. Machinery/equipment and basic metal With the projected household growth rate of
is expected to post a sluggish growthsituated of 0.7 economies,
requirementthe willPhilippine
intensify than government
expected. 7.8 percent per year, to reach 7.6 MTOE production in 2030 farerom the top industrial electricity 2.04 percent31 per year, the total number of
percent annually during the entire planning likewise announced its thrust to inject timely 1.8 MTOE in 2011. consumers, followed by textile/apparel and households is expected to reach 28.7 million
period, to reach 3.3 MTOE in 2030. economic stimulus As an packages
engine to ensure
of growth the incountrys
the countrys other food production. Total electricity demand in 2030. Notwithstanding, the energy demand
full economic recovery28. Consequently, the industrial Electricity will remain as the second major energy
economy, the industry sector is projected to of the sector is projected to grow by an average level of households will decline by 0.6 percent
sectors energy requirement will intensify than source in industry, taking up an average share of 22.1
Given the vulnerability of global oil prices to expand the fastest in terms of its energy demand of 3.4 percent, reaching 3.2 MTOE in 2030 from between 2011 and 2030 (Figure 33). This may
expected. percent of the sectors total energy demand.
geopolitical tensions and the growing concern at an annual average rate of 5.1 percent and an 1.7 MTOE in 2011. be attributed to foreseen reduction in biomass
Machinery/equipment and basic metal production are
on sustainable development, the DOE As an will
engine average share
of growth of c33.7
in the percent
ountrys economy, in thethe
countrys
the top industrial electricity consumers, followed by consumption of households, coupled with
continue to intensify its campaign industry for thesector totalis final energy demand for the next 20 years
projected to expand the fastest in textile/apparel and other food production. Total Notwithstanding its price volatility and the increased energy saving measures promoted in
utilization of cleaner alternative fuelsterms in the of its (Figure
energy d32). Thisat will
emand an atranslate to a demand
nnual average rate level
electricity demand of the sector is projected projectedto energy grow savings, oil will continue to the sector. However, the reduction will be slightly
transport sector. Demand for bioethanol of 5.1 will
percent going
and up an from
average 5.9share
MTOE of in
33.7 2011 to 15.3
percent in MTOE
by an average of 3.4 percent, reaching play 3.2 an MTOE
important in role in fueling the activities offset by the expected increase in the utilization
expand by 9.1 percent per year on the the average, in 2030.
countrys total final energy demand for the next 2030 from 1.7 MTOE in 2011. of the industry sector, accounting for an average more efficient fuels for cooking, such as LPG vis-
reaching 0.5 MTOE, by the end of the planning 20 years (Figure 32). This will translate to a demand of 14.9 percent share of the sectors total energy -vis traditional fuels, thus, reducing the sectors
period. Meanwhile, demand for Figure 32. INDUSTRY ENERGY DEMAND Notwithstanding its price volatility demand and overthe the planning period. It will biomass demand especially among the middle
biodiesel is seen to increase by 13.7 projected energy savings, oil increase will continue at anto average rate of 0.9 percent per and upper income families.
percent per year for the next two play an important role in fueling the activities
expected year, to ito reacht1.6
ncrease MTOE
o 1.7 MTOE inin 20302030, from 1.3 MTOEbiomass declined from 29.2 percent in 1995 to 18.7
accounting
decades. of the industry sector, accounting
for an average
in 2011. share for an
Bulk ofof this
17.3 demand
percent will of the total ofpercent
comprise or an demand
Electricity annual average negative growth of 4.8
in the sector will increase its
average of 14.9 percent share
industry fuel of the
energy
oil and sectors
demand
diesel, over the planning
registering period. sharespercent.
an average average Particularly,
share by 58.5 it was noted in
percent that
2030the p roportion
from 26.8
total energy demand over the planning of percent
household using replacing
fuelwood (63.5 percent to 55.1
Largely due to further developments of 7.4 percent and 6.4 percent, respectively. in 2011, biomass as the primary
period. It will increase at an average rate of percent)
in the countrys light railway Residential Sector fuel ofand thecharcoal
sector, as (38.5
thepercent
former to is 34.2
expected percent)
to
0.9 percent per year, to reach 1.6 MTOE in went d own c ompared t o t he 1 995 H ECS. A ccordingly,
systems, specifically: the capacity The incessant increase in the price of oil products contract at an annual average rate of 10.3 percent
2030 from 1.3 MTOE in residential
The 2011. Bulk sector of this
is the industry
third largest consuming
expansion and modernization of demand will comprise of willoil likewise
fuel and prompt
diesel, players to pursueelectricity over thedemand
planningis expected
period, fromto 3.5increase
MTOE inby 2011 3.6
sector, with an average share of 17.5 percent in the percent per year, while use of LPG will post an annual
Line 1; Line 2 East and West route registering an average shares intensely
of total the utilization of other energy sources to 442 KTOE in 2030, with a reduced share to
7.4 percent
countrys energy consumption during the average growth rate of 4.1 percent, with substantial
expansion; NAIA rail link and North and 6.4 percent, respectively. to cope up
period. As with increasing production volume. household energy demand of only 8.3 percent.
planning of 201029, the total number of share of 25.0 percent to the sectors total energy
& Cavite route expansion projects 27
households Thus,across biomass the will still be
country has anreached
important 18.5 fuel demand.
This decline
is seen to be caused by the changing
and the expected entry of e-trikes The incessant increase in source
million, the
with foraverage
price
an theoil
of sector, particularly
of about 5 (4.8)
and other e-vehicles, electricity family members per household30. food
in
products will likewise prompt industry players sugar production, With and the Figure 33. RESIDENTIAL ENERGY DEMAND
demand will expand to reach 1.1 to pursue intensely projected the utilization
other of other
manufacturing
household growth rate industries.
of 2.04
MTOE by 2030, at an average energy sources to cope up 31with increasing
Total biomass consumption
percent per year, the total number of of
growth rate of 28.1 percent per production volume. Thus, biomass will still be
households industry is expectedto to reach
is expected increase to
28.7
year across the planning horizon. Industry will remain as the major end-use an i mportant f uel s ource f or t he s ector,
million 1.7 p articularly
in MTOE i n
2030. in Notwithstanding,
2030, accounting the for
28 consumer of coal, owning an average sharesugar
of production, food and other
energy an manufacturing
demand
average level
share of ofhouseholds
17.3 percent will
of
Global Agricultural Information Network, USDA Foreign Agricultural
industries. Total biomass consumption decline by of industry
0.6 percent is between 2011 and
With the targeted commercialization of a total 39.3 percent of the sectors energy requirement
Services the total industry energy demand
of 15,000 CNG-buses and 16,000 CNG-taxis over the entire planning horizon. This is largely 2030 (Figure 33). This may be attributed to
over the planning period.
PHILIPPINE ENERGY PLAN 2012-2030 foreseen reduction 36 in biomass
plying the major routes nationwide by 2030, due to the projected increase in coal utilization
natural gas use in the transport sector will grow of cement and basic metals industries to meet consumption Residential Sectorof households, coupled with
increased energy saving measures
substantially to reach 1.2 MTOE in 2030, from a the increasing demand for building materials in
promoted in the sector. However, the
mere 1 KTOE in 2011. the construction sector. Likewise, coal demand The residential sector is the third
reduction will be slightly offset by the
in paper production, beverages and other food expected largest increase consuming sector, more
in the utilization with
Industrial Sector production is also projected to increase during an average share of 17.5 percent
efficient fuels for cooking, such as LPG vis-
the 20-year planning horizon. Coal consumption in the countrys
-vis traditional fuels, thus, total reducing energy the
Following the development trajectory of in industry is projected to expand by an average consumption during
sectors biomass demand especially among the planning
similarly-situated economies, the Philippine rate of 7.8 percent per year, to reach 7.6 MTOE the middle period. and uAs pper ofincome
201029 , the total
families.
government likewise announced its thrust to in 2030 from 1.8 MTOE in 2011. number of households across the
inject timely economic stimulus packages to Electricity country demand
has reached in the 18.5 sector
million, will with
increase its Commercial Sector
an average patterns of fuel preference among consumers for
ensure the countrys full economic recovery . Electricity will remain as the second major
28 average share by 58.5 percent in 2030 from
of about 5 (4.8) family members per household . household activities such as cooking and heating, 26.8 30
energy source in industry, taking up an average percent in 2011, replacing biomass as the primary fuel With local and foreign investors boost in confidence
27 LRTA Website (@lrta.gov.ph) 29 National Statistics Office (NSO) 2010 Census of Population and
of the sector, as the former is expected to contract at
28 Global Agricultural Information Network, USDA Foreign share of 22.1 percent of the sectors total energy Housing and optimism attributed to increasing political
Agricultural Services an annual 30 National average rate Office
Statistics of (NSO)
10.3 Special
percent Releaseover the stability
No. 2011-005 31 Ibid in the country, the outlook for the
planning period, from 3.5 MTOE in 2011 to 442 kTOE commercial sector remains promising. The
in 2030, with a reduced share to household energy continuous upsurge in the number of business
demand of only 8.3 percent. This decline is seen to be process outsourcing companies (BPOs), establishing
36 PHILIPPINE ENERGY PLAN 2012-2030 caused by the changing patterns of fuel preference PHILIPPINE ENERGY PLAN 2012-2030 37
their headquarters in the country, and major
among consumers for household activities such as investment properties such as office, retail and hotel
and the shifting to more efficient and convenient Total petroleum demand will generally have continue to be the least energy-intensive among on other hand, will post a moderate increase of 0.8
fuels and energy sources such as LPG and a steady average annual growth of 2.0 percent the economic sectors accounting for a meager percent on the average, from its 2011 level of 115
electricity. Based on the 2004 Household Energy during the entire planning period. LPG and fuel share of 1.0 percent in the total energy demand. In KTOE to 134 KTOE by 2030. The increasing growth
Consumption Survey (HECS), household demand. users oil Thus,
demand, the sectors
owing energy to the rise requirement
in the output will of grow by 1.7 percent per annum spite within
of the planning growth, energy demand levels in the demand for electricity is due to the planned
the sectors
increase b y a
of biomass declined from 29.2 percent in 1995 establishments engaged in food and other related s taggering 6 9.9 p ercent, f rom 2 .6 M TOE period f rom 3 18 k TOE i n 2 011. will drop, from 302 KTOE in 2011 to 260 KTOE, or major construction and restoration of national
in 2011 to 4.6
to 18.7 percent or an annual average negative services, is projected to increase annually by 1.6 MTOE in 2030, growing at an annual an average yearly decline of 0.8 percent irrigation systems and improvement of rural
growth of 4.8 percent. Particularly, it was noted average rand ate o1.5 f 2.7 percent. respectively. Diesel demand
percent, Agriculture, Fishery and Forestry (AFF) Sector infrastructure facilities in the sector. Meanwhile,
that the proportion of household using fuelwood will still post a substantial growth rate of 2.3 Energy demand in the AFF sector is comprised biodiesel demand will grow fastest at an average
Electricity will remain as the major energy source in The 2.3 percent growth33 of the AFF sector in 2011
(63.5 percent to 55.1 percent) and charcoal (38.5 percent. Expectedly, commercial sector will of: (1) petroleum products, used mainly for farm rate of 16.0 percent across the planning period,
the sector constituting more than half (51.9 percent was largely contributed by crops, livestock and
percent to 34.2 percent) went down compared to experience growth in biodiesel demand from equipment, crop production and fishery; (2) increasing to 23 KTOE by 2030, almost 10 times its
on the average) of the total commercial demand. The poultry sub-sectors despite the decline in fisheries
the 1995 HECS. Accordingly, electricity demand demand 13 for KTOE in 2011,
electricity to 232
services KTOE
will in 2030,
increase as the
at an electricity, largely used in the livestock and poultry 2011 level of 1 KTOE (Figure 25).
production. However, the AFF sector will continue to
is expected to increase by 3.6 percent perannual year, rate mandatory blend escalates from 2 percent in
of 2.8 percent throughout the planning be the least energy-intensive among sub-sector; and, (3) biodiesel which is a
the economic
while use of LPG will post an annual average 2011 to
period (Figure 20 percent from 2025 to 2030.
24). mandatory input to diesel categorized Figure 25. AFF ENERGY DEMAND
sectors accounting for a meager share of 1.0 percent
growth rate of 4.1 percent, with in the total energy demand. under In petroleum products used for
spite of the
Figure 24. COMMERCIAL ENERGY DEMAND
substantial share of 25.0 percent to the sectors growth, energy demand farm levels
machineries
will drop, and implements.
sectors total energy demand. from 302 kTOE in 2011 to Petroleum
260 kTOE, products
or an will account for
average yearly decline of 0.8 apercent commanding 47.6 percent average
Commercial Sector share; followed closely by electricity,
Energy demand in the AFF which sector will is comprised
take up as much as 47.5
With local and foreign investors of: ( 1) p etroleum p roducts, u sed m
percent share, ainly for fand
arm biodiesel with 4.8
boost in confidence and optimism equipment, crop production and share.
percent fishery; (2)
electricity, largely used in the livestock and
attributed to increasing political
poultry sub-sector; and, (3) biodiesel which is a
stability in the country, the outlook Over the planning period, the sector
mandatory input to diesel categorized under
for the commercial sector remains will remain to be heavily dependent on
petroleum products used for farm machineries
promising. The continuous upsurge and implements. Petroleum petroleum products products, will despite demand
in the number of business process account for a commanding 4levels declining
7.6 percent at an average rate of
average
outsourcing companies (BPOs), 3.1 percent,
share; followed closely by electricity, which will from 186 KTOE in 2011 to
establishing their headquarters in take up as much as 47.5 102 KTOEshare,
percent in 2030. and Electricity demand,
the country, and major investment biodiesel with 4.8 percent share.
properties such as office, retail and
hotel as well as residential property 32 Over the planning period, the sector will remain
are foreseen as major contributors forTotal petroleum demand will generally have a steady
the Meanwhile, the consumption of biomass in the to be heavily dependent on petroleum products,
average annual
sectors increasing energy demand. Thus, the commercial sector, particularly fuel wood and growth of 2.0 percent during the despite demand levels declining at an average rate of
sectors energy requirement will increase entire
by planning
charcoal,period. will still LPG be and fuel oil demand,
prominent among food 3.1 percent, from 186 kTOE in 2011 to 102 kTOE in
owing to
a staggering 69.9 percent, from 2.6 MTOE in establishments and restaurants mainly forthe rise in the output of establishments 2030. Electricity demand, on other hand, will post a
engaged in food and other related services, is moderate increase of 0.8 percent on the average,
2011 to 4.6 MTOE in 2030, growing at an annual commercial cooking and heating. Its levels will
projected to increase annually by 1.6 and 1.5 percent, from its 2011 level of 115 kTOE to 134 kTOE by 2030.
average rate of 2.7 percent. fairly grow by 1.7 percent per annum within the
respectively. Diesel demand will still post a The increasing growth in the demand for electricity is
planning period from 318 KTOE in 2011.
substantial growth rate of 2.3 percent. Expectedly, due to the planned major construction and
Electricity will remain as the major energy source commercial sector will experience growth in biodiesel restoration of national irrigation systems and
(51.9 Agriculture, Fishery and Forestry (AFF) Sector
in the sector constituting more than half demand from 13 kTOE in 2011, to 232 kTOE in 2030, improvement of rural infrastructure facilities in the
percent on the average) of the total commercial as the mandatory blend escalates from 2 percent in sector. Meanwhile, biodiesel demand will grow
demand. The demand for electricity services willto 2The
2011 2.3 percent
0 percent from growth
2025 to 2of
33
the AFF sector in 2011
030. fastest at an average rate of 16.0 percent across the
increase at an annual rate of 2.8 percent throughout was largely contributed by crops, livestock and planning period, increasing to 23 KTOE by 2030,
the planning period (Figure 24). poultry sub-sectors despite the decline in fisheries
Meanwhile, the consumption of biomass in the almost 10 times its 2011 level of 1 kTOE (Figure 25).
commercial production. sector, However, particularly the AFF fuel sectorwood will and
32 2011 Philippine Real Estate Industry Perspective Sunday, charcoal, will still be prominent among food
Marianne T. Escanilla, 29 January 2012, Special Featuresestablishments
Writer, and restaurants mainly for
BusinessMirror.com.ph, Retrieved on 13 February 2012 http://
commercial 33 Bureau of and
cooking Agricultureheating. Its levels
Statistics, Performance will fairly 33
of Philippine Bureau of Agriculture Statistics, Performance of Philippine Agriculture
businessmirror.com.ph/home/properties/22551-a-2011-
philippine-real-estate-industry-perspective) Agriculture

Fossil Fuels

Fossil fuels (oil, gas and coal) will still remain as dominant sources of energy to meet the growing global energy conducted four (4) investment roadshows in On the other hand, the SC 56 operator, Exxon Mobil
III. ENERGY RESOURCE DEVELOPMENT
demand. The 2011 World Energy Outlook of the International Energy Agency (IEA) shows that over the next 20 2011 in Singapore, Australia, Italy and the USA Exploration and Production Philippines (EMEPP)
years, fossil fuels will continue to see strong growth particularly in the electric power sector. In the ASEAN
Fossil Fuels prior to the official launching of the PECR-4 held over the Sulu Sea basin drilled Banduria-1 well
region, fossil fuels will exhibit the same share to the primary energy requirements by 2030 as noted in the 3rd on 30 June 2011 in Manila. The aim of the PECR in 2010 with a total depth of 4,370 meters. The
ASEAN EFossilnergy fuels
Demand
(oil,Ogas utlook
and(2010).
coal) will still remain as dominant sources of energy to meet the growing is to provide transparent and competitive system company likewise drilled Palendag-1 well with a
global energy demand. The 2011 World Energy Outlook of the International Energy Agency (IEA) of tendering onshore and offshore oil and gas total depth of 4,756 meters. EMEPP, the largest
showslong-term
Given these that over energy
the nextsupply
20 years, fossil fuels
projection, the will continue will
government to see strong growth
continue its efforts particularly in the
to harness the blocks for exploration to both local and foreign oil and gas explorer, developer and producer in
countrys electric power
indigenous sector.
oil, Incoal
gas and theresources
ASEAN region, fossil
to ensure fuelsewill
greater exhibit
nergy supply the same share
security. to the primary investors. A total of 15 prospective areas were the world, started its drilling operations in the
energy requirements by 2030 as noted in the 3rd ASEAN Energy Demand Outlook (2010). identified and offered to interested and qualified country in October 2009. In 2011, two (2) wells
petroleum exploration companies. were spudded and drilled by Nido Petroleum
A. OIL AND
Given theseGAS long-term energy supply Philippines Pty. Ltd in offshore Northwest Palawan
Figure 36. SEDIMENTARY BASINS IN THE PHILIPPINES
projection, the government will continue Exploration and Production and NorAsian Energy Ltd in Northwest Leyte,
In view of the volatility of oil prices in the world
its efforts to harness the countrys namely Gindara-1 and Duhat-1/1A, respectively.
market brought about by a confluence of factors,
indigenous
obtaining oil, and
more oil gas and gas coal resources
resources to
from Under SC 38, an additional 150 billion cubic feet
ensure
domestic greater
sources energy supply
is essential security.the
in reducing (BCF) of gas has been recovered from the seventh Oil production in the country, which comes
countrys oil import bill. This has been a challenge (7th) well of the Malampaya, which could fuel a mostly from the two (2) production wells in Galoc
affecting the economy and as such, the 300-MW natural gas power plant for a period Field, reached 2.3 million barrels (MMB) in 2011
A. OIL AND GAS
government puts premium in facilitating of 12 years. The SC-38 under Shell Philippines as compared to 3.1 MMB in 2010. The decrease
investments to explore new sources of oil and gas. Exploration (SPEX) B.V. likewise drilled the in oil production was mainly due to the conduct
In view of the volatility of oil prices in the Camago-2 appraisal well in offshore NW Palawan of preventive maintenance in the Shallow Water
Performance Assessment
world market brought about by a confluence with a total depth of 4,111 meters in water depth Platform. On the other hand, gas production
of 709 meters. The purpose is to determine the from Malampaya field increased to 140 billion
of factors, obtaining more oil and gas
The country has 16 sedimentary basins with connectivity of the Camago and Malampaya standard cubic feet (BSCF) in 2011 from 130
resources from domestic sources is essential
combined potential of 4,777 million barrels of fuel
in reducing the countrys structures. BSCF in 2010. The increase was also reflected
oil equivalent (MMBFOE) (689.8 oil import
MTOE) of bill.
oil This
and
has been a challenge affecting the economy on associated condensate with production of 5.1
gas reserves. These basins, which have an
aggregate andarea
as such, the government
of 14,000 puts premium
square kilometers (sq. Table 4. ACTIVE SERVICE CONTRACTS
in shown
kms.) as facilitating investments
in Figure 36, are to as explore
follows: new (1)
sources of oil and gas.
Northwest Palawan; (2) Southwest Palawan; (3) SC Number Company Location Area (has.)
Mindoro-Cuyo; (4) Recto (Reed) Bank; (5) Visayan; 06
06 A
Blade Petroleum
Pitkin Petroleum Plc.
Northwest Palawan
Northwest Palawan
3,397.19
108,146.59
(6) Southeast Luzon; (7) Cagayan; (8) Cotabato; (9) 06 B The Philodrill Corporation Northwest Palawan 53,293.94
Sulu Sea; (10) Ilocos Trough; (11) West Luzon; (12) 14 The Philodrill Corporation/Galoc Prod. Co. Northwest Palawan 70,887.52
37 PNOC Exploration Corporation Cagayan Basin 36,000.00
Central TheLuzon; (13) Bicol
country hasShelf; (14) West Masbate-
16 sedimentary basins 38 Shell Philippines Exploration B.V. Northwest Palawan 83,000.00
Iloilo; (15) E ast P alawan; a nd
with combined potential of 4,777 million ( 16) A gusan-Davao. 40 Forum Exploration, Inc. Northern Cebu 458,000.00
44 Gas2Grid Pte Limited Central Cebu 75,000.00
barrels of fuel oil equivalent (MMBFOE) 47 PNOC Exploration Corporation Offshore Mindoro 1,048,000.00
The energy
(689.8 sector
MTOE) has of
aggressively
oil and gas pursued
reserves. the 49 China International Mining Petroleum Co. Ltd. Southern Cebu 265,000.00
exploration a nd d evelopment
These basins, which have an aggregate o f i ndigenous o il a nd 50
51
Frigstad Energy Limited
NorAsian Energy Limited
Calauit, Northwest Palawan
East Visayan Basin
128,000.00
332,000.00
gas resources
area of 14,000 through square the conduct kilometers of (sq. the 52 EF Durkee & Associates, Inc. Cagayan 96,000.00
53 Pitkin Petroleum Ltd. Onshore Mindoro 660,000.00
kms.) as shown in Figure 36, are as follows: 54 (A & B) Nido Petroleum Philippines, Pty. Ltd. Northwest Palawan 401,616.15
312,000.00
(1) Northwest Palawan; (2) Southwest 55 NorAsian Energy Limited West Palawan Ultra-Deepwater 900,000.00
Palawan; (3) Mindoro-Cuyo; (4) Recto (Reed) and gas resources through the conduct of the 56* Mitra Energy Ltd. Sulu Sea 684,000.00
57 PNOC-EC North Calamian, Northwest Palawan 712,000.00
PHILIPPINE Bank;ENERGY (5) Visayan; PLAN 2012-2030 (6) Southeast Luzon; (7) PECR34. To date, 27 SCs are being supervised 40 58 Nido Petroleum Phil. Pty Ltd. West Calamian Block, Nothwest Palawan 1,344,000.00
Cagayan; (8) Cotabato; (9) Sulu Sea; (10) Ilocos and monitored by the DOE (Table 4). Some of 59 BHP Bilton Pet. (Phil.) Corp. West Balabac, Southwest Palawan 1,476,000.00
60 Shell Philippines Exploration BV Northeast Palawan 1,008,000.00
Trough; (11) West Luzon; (12) Central Luzon; these SCs contribute investments amounting 62** Palawan Sulu Sea Gas, Inc. East Palawan 1,302,000.00
(13) Bicol Shelf; (14) West Masbate-Iloilo; (15) to nearly US$ 80 million in their first seven (7) 63** PNOC-EC/Nido Petroleum Philippines Southwest Palawan 1,056,000.00
64** Ranhill Energy SDN. BHD. Sulu Sea 1,264,940.00
East Palawan; and (16) Agusan-Davao. years of exploration activities in their respective 69*** NorAsian Energy Philippines, Inc. Visayan Basin 528,000.00
areas. To attract potential investors, the DOE 70*** Polyard Petroleum International Company Ltd. Central Luzon Basin 684,000.00
The energy sector has aggressively pursued the 72 Forum (GSEC 101) Ltd. Recto (Reed) Bank 1,063,000.00
34 PECR is a mechanism whereby the government bids out areas
exploration and development of indigenous oil with potential indigenous energy reserves (e.g .coal, oil and gas) * Resulting from PECR 2003
for exploration and possible development and production. ** Resulting from PECR 2005
*** Resulting from PECR 2006

MMB in 2011 from 4.9 MMB in 2010. In the first target of up to 25 wells every five years starting Plans and Programs timelines of the contractor. A Memorandum of
half of 2012, oil production already stood at 6.1 2016. Agreement (MOA) will be pursued with concerned
MMB of oil, gas at 72.6 BSCF, and condensate at In potential areas for petroleum exploration and agencies to improve the process and devise a
2.5 MMB. In 2011, a total of about 7,458 line- Production targets for the oil and gas fields are development, the DOE will closely coordinate with system of procedures to accelerate documentation
kms. of two-dimensional (2D) seismic data were expected to yield about 78.0 MMB of oil, 3.3 TCF concerned government agencies and undertake requirements of potential investors.
acquired in offshore Reed Bank, Northwest and of gas and 70.8 MMB of condensate. Malampaya is consultations with the local communities to ensure
Southwest Palawan and onshore Cebu. This is still expected to produce the biggest contribution public support and acceptability of the projects. In response to the optimal energy pricing pillar
in addition to the 1,074.3 line kms. acquired by with 23.1 MMB of oil, 2.0 TCF of gas and 62.6 MMB of the Energy Reform Agenda (ERA), the DOE
three (3) SC operators in 2010, Gas2Grid Limited of condensate. Additional gas production from The DOE will work with Department of will explore the development of a framework/
(SC 44), Pitkin Petroleum Limited (SC 53), and Sampaguita gas field is anticipated to generate a Environment and Natural Resources (DENR)- methodology in the near term for the pricing of
NorAsian Energy Limited (SC 69). total of 1.2 TCF starting 2023. Environmental Management Bureau (EMB) to indigenous energy like natural gas whose price
establish the national environmental standards is linked with international price of oil.
Meanwhile, BHP Billiton Petroleum Philippines On the other hand, the DOE aims to acquire new for petroleum exploration that will be consistent
(SC 59) and NorAsian Energy Limited (SC 55) geophysical data that will cover 32,500 line kms. with internationally-accepted standards. B. COAL
acquired a total of 5,498.7 sq. kms. of three- and 3,600 sq. kms. of 2D and 3D seismic data,
dimensional (3D) seismic data in West Palawan in respectively, until 2030. Under the PECR, the awarding of exploration Coal will continue to be a major fuel for the
2010. An additional 889.5 sq. kms of 3D seismic Service Contracts will be done in a transparent ASEAN, specifically for power generation. Based
data located in offshore Northwest Palawan, Reed Development Challenges and timely manner. on the 3rd ASEAN Energy Demand Outlook (2011)
Bank and East Visayan Basins were also acquired coal share to the regions power generation mix
in 2011 from Galoc (SC 14), Forum Ltd. (SC 79) Following are the challenges in the upstream oil To improve the prospectivity of underexplored is expected to reach around 40.0 percent in 2030.
and NorAsian Energy Ltd (SC 69). and gas sector: sedimentary basins of the country, the following
actions will be undertaken: With abundant coal resource, which could
Measurable Sectoral Targets Need for a continuing IEC campaign that will be tapped for exploration, development and
educate the public on the importance and Upgrade the quality of information and utilization, the government targets a 100.0
The heightened promotion of these indigenous long-term benefits of petroleum exploration data relative to petroleum exploration such percent increase in indigenous coal production
resources through the PECR is expected to yield a and development projects, which is beneficial as geological, geophysical (seismic) and for the planning horizon. In maximizing the
total of 66 SCs to be awarded during the planning to the countrys economy. engineering data; potential domestic coal reserves, the DOE will
horizon (Table 5). The DOE is also gearing up for strongly collaborate with concerned stakeholders
the drilling of a total of 95 wells until 2030 or a Need to establish national environmental Encourage international service companies to address social acceptability issues on coal use.
standards for petroleum operations to acquire geophysical/seismic data of These include health and environmental effects
Table 5. OIL AND GAS MEASURABLE TARGETS that will be compliant to international the countrys underexplored sedimentary that may result during coal mining, preparation,
benchmarks. basins through the conduct of multi-client combustion, waste storage and transport. The
Field 2012-2015 2016-2020 2021-2025 2026-2030
surveys. Such vital information and data can DOE will ensure that said related processes
Awarding of Service Contracts 10 23 19 14
Acquisition of 2D Data (line-kms.) 7,000 9,500 7,000 9,000 Need for more extensive study and serve as reference to guide the international strictly comply with environmental standards.
Acquisition of 3D Data (line-kms.) 800 950 700 1,150 evaluation of the available geological, petroleum exploration companies in their
Exploration Well Drilling
Production
20 25 25 25
geophysical and engineering data investment decisions; and, Performance Assessment
Oil (MMB) 27.73 19.53 14.77 15.94 to improve the prospectivity of
- Galoc 9.13 - - - the countrys sedimentary basins. Amend Presidential Decree (P.D.) 87 to The government is bent on exploring the
- Malampaya 17.30 5.80 - -
Service contractors will also be provide additional incentives for exploration countrys coal resources to likewise temper
- West Linapacan A - 10.49 8.64 3.83
- Cadlao 1.30 2.41 1.53 -
encouraged to acquire, process, activities in underexplored basins. P.D. 87 is impacts of soaring oil prices.
- Octon - 0.84 1.00 0.46 and interpret geophysical data the legal framework governing petroleum
- Linapacan - - 3.60 11.64
for a better understanding of the exploration in the country. Currently, the Philippines has 13 coal basins with
Gas (BCF) 585.29 747.87 1,190.85 751.73
- Malampaya 584.00 730.00 730.00 - countrys unexplored sedimentary total resource potential35 of 2.4 billion metric
- San Martin - 12.69 18.69 17.94 basins. The dwindling worldwide Also part of the plan for the sector is the tons (BMT). The largest resource potential is
- Sultan sa Barongis - 3.33 3.79 3.79 petroleum reserves necessitate the institutionalization of a one-stop shop that will in Semirara, Antique with 570 million metric
- Sampaguita - - 438.00 730.00
- Libertad 1.29 1.84 0.37 - conduct of petroleum exploration not only expedite the acquisition of permits, tons (MMMT), while the smallest is in Quezon
Condensate (MMB) 20.99 25.61 21.44 2.75 into deepwater and frontier areas all certificates, endorsement, etc., but likewise assure with 2.0 MMMT. Other coal basins are located
- Malampaya 20.99 22.86 18.69 - over the world and in the country. the smooth flow of work to meet the submitted 35 Resource potential is a geological concept quantified based on
- Sultan sa Barongis - 2.75 2.75 2.75 geoscientific and sampling data.

fuel for On the other hand, coal importation in 2011 slightly canning, and the remaining 1.3 percent for non-
On the other hand, coal importation the commissioning of the first two (2) units of 2011, the DOE awarded nine (9) exploration
power
Figure 37. COAL RESERVES OF THE PHILIPPINES reduced from the previous years level of 11.0 MMMT energy use as shown in Figure 38.
in 2011 slightly reduced from the 246-MW coal-fired power plant in Toledo contracts in frontier areas located in Albay, Cebu,
ASEAN (@ 10,000 BTU/lb) (5.8 MTOE), exhibiting 0.03
the previous years level of 11.0 City indecrease.
percent April (82Of MW Unit
the I) and
total, 98.2 June 2010came
percent (82 Davao Oriental, Surigao del Sur, Surigao del Norte,
1) coal
MMMT (@ 10,000 BTU/lb) (5.8 MW Unit II), respectively.
from Indonesia, 1.2 percent from Australia and 0.6 Zamboanga del Norte and Zamboanga Sibugay.
neration Figure 38. COAL CONSUMPTION, 2011
MTOE), exhibiting 0.03 percent percent from Vietnam. In the same year, coal These additions have brought the countrys total
nd 40.0
decrease. Of the total, 98.2 percent On PHILIPPINE
the other
exportation was ENERGY
hand,
recorded CONTRACTING
coal importation
at 2.7 MMMT ROUND
in 2011
(1.4 slightly COCs
MTOE), to 60 as
canning, of June
and 2012 (Figure
the remaining 39).
1.3 percent for non-
came from Indonesia, 1.2 percent reduced
49.8 from dtecrease
percent he previous
from y2ears
010 level of 41.10 1.0 MMMT energy use as shown in Figure 38.
which from Australia and 0.6 percent (@ Through
(2.2 10,000 the
MTOE). regular
BTU/lb)
China conduct
(5.8
is the MTOE),
leading ofconsumer
the PECR,of
exhibiting which
0.03 To strengthen the competitive process in
local
oration, from Vietnam. In the same year, percent
coal
started decrease.
with in98.0 Of DOE
2006,percent
the the of
total,
promotes the 98.2
total
local percent
coal came indigenous
export
and foreign energy development, the DOE
n, the coal exportation was recorded followed
from
investment b y T hailand
Indonesia, in1.2 w
the ith
percent 2 .0
exploration p ercent.
from Australia
37
, development and 0.6 issued D.C.
Figure 38. 2009-04-0004
COAL CONSUMPTION, 38
. 2011 Consequently,
percent at 2.7 MMMT (1.4 MTOE), 49.8 Meanwhile,
percent from t otal c oal
Vietnam. c onsumption
In the i n 2
same 011
and production of the countrys indigenous coal another PECR for coal was launched on 01 r egistered
year, coal
oduction percent decrease from 2010 level at 14.6 MMMT (@ 10,000 BTU/lb.) (7.7 MTOE) or an
exportation
resources.was Therecorded
2009 PECR at resulted
2.7 MMMT in the (1.4 MTOE), December 2011 offering 38 prospective coal
awarding
ximizing of 4.10 MMMT (2.2 MTOE). China increase
49.8
of ptwo o(2)
f 10.0
ercent dnew percent
ecrease from
coal foperating
rom the contracts
2010 lpevel
revious y(COCs)
ears
of 4.10 13.3
MMMT
on areas (Figure 40). Specifically, these areas are
ves, the MMMT (7.0 China
(2.2 MTOE). MTOE). is The power consumer
the leading generation of sector
local
is the leading consumer of local 24 March 2010 to Cedaphil Mining Corporation located in: a) Luzon: Quezon, Catanduanes, Albay,
e with accounted for 74.9
coal with 98.0 percent percent
of the of total
the coal
total export
coal
coal with 98.0 percent of the total (COC-171) and Core 8 Mining Corporation (COC- Sorsogon, Masbate, Occidental Mindoro and
ss social followed by Thailand
consumption followed with
by 2the
.0 pcement-manufacturing
ercent.
coal export followed by Thailand 172) to
Meanwhile,
industry
explore
with total
coal
coal
21.4
resources
consumption
percent,
in2011
while in 2.4
the areas for
of Oriental Mindoro; b) Visayas: Negros Occidental,
registered
percent
. These with 2.0 percent. Toledo
l effects industries, such as meat processing and Cebu, Bohol; and c) Mindanao: Agusan del Norte,
City, Cebu. Similarly, on
at 14.6 MMMT (@ 10,000 BTU/lb.) (7.7 MTOE) or an
other 14 December
mining, increase of 10.0 percent from the previous years 13.3
Meanwhile, total coal Figure 39. PHILIPPINE COAL OPERATING CONTRACTORS
MMMT (7.0 MTOE). The power generation sector
storage
ure that consumption in 2011 registered accounted for 74.9 percent of the total coal
comply at 14.6 MMMT (@ 10,000 BTU/ consumption followed by the cement-manufacturing
the countrys in-situ35 coal reserves are estimated at
in Cagayan Valley, Polillo-Batan-Catanduanes, lb.) (7.7 MTOE) or an increase of 10.0 percent industry with 21.4 percent, while 2.4 percent for
438.8 MMMT.
Mindoro, Masbate, Samar-Leyte, Cebu, Negros, from the previous years 13.3 MMMT (7.0 MTOE). other industries, such as meat processing and
Surigao, Zamboanga, Indigenous coal Davao and has
production Cotabato
steadily The powerto
increased generation sector accounted for 74.9 Figure 39. PHILIPPINE COAL OPERATING CONTRACTORS
Sarangani as6.9 MMMT (@ 10,000 BTU/lb) (3.6 MTOE) in 2011, a
shown in Figure 37. percent of the total coal consumption followed
loring the countrys 3.5 percent higher from 2010 production by theof cement-manufacturing
6.7 industry with 21.4
r impacts of On soaring
the other MMMT hand, (3.5 the countrys
MTOE). Such in-situ 36
could coal percent, while
be attributed to 2.4 percent for other industries,
On the other hand,
reserves aresustained coal importation
estimated at 438.8in MMMT.
production 2011 slightly
output canning,
of Semirara such as and
meatthe
Mining remaining
processing and 1.3 canning,
percent and
for the
non-
reduced from the pCorporation,
revious years l evel o f 1 1.0 M MMT
the countrys largest open energy u se a
pit mine,
remaining s s hown i n F igure
1.3 percent for non-energy use as 3 8.
(@ w
coal basins 10,000
ith t BTU/lb)
otal which (5.8 MTOE),
contributed
Indigenous coal production has steadily shown in Figure 38. exhibiting
6.5 MMMT 0.03
(3.4
MTOE) or 94.0
percent
n metric tons decrease. percent
(BMT). Of the of total,
the 98.2 coal
percent came The

increased to 6.9 MMMT (@total
10,000 BTU/lb) production. (3.6 remaining
from Indonesia, 1.2
in Semirara, Antique 6.0 percent
percent from
came Australia
from and
other 0.6
coal contractors and
MTOE) in 2011, a 3.5 percent higher from 2010 Figure 38. COAL CONSUMPTION, 2011
MMMT), percent while from
the Vietnam.
small-scale In coal
the same
mining year, coal Domestic coal
permittees.
production of 6.7 MMMT (3.5 MTOE). Such could
MMMT. exportation was recorded
Other coal production at 2.7 MMMT
in 2011 was (1.4 the hMTOE),
ighest ever in the history
Valley, 49.8 pbe
Polillo-Batan- attributed
ercent decrease to f sustained
rom 2 010
of local coal mining and l production
evel o f 4 output
.10 represented
MMMT around 47.0
of Cebu,
Semirara
(2.2 MTOE). China Mining Corporation, the of
is the leading countrys
Samar-Leyte, percent of the consumer
countrys total local coal requirement.
largest
coal Cotabato
with open
98.0 percent pit mine, which
of first
the total contributed 6.5
avao and During the half of coal
2012, export
coal production already
followed
On the MMMT
other hand, (3.4stood
by Thailand MTOE) with or.7 p94.0
at 23.0 M percent of the total
ercent.
MMT.
Meanwhile, total coal c onsumption in 26.0
coal production. The remaining 011 percent
registered came
from other coal contractors and small-scale coal
at 14.6 MMMT (@ 10,000 BTU/lb.) (7.7 MTOE) or an
increase of 10.0
mining percent
permittees.
35 from
Domestic the previous
coal production years 13.3 in
In-situ reserves are the tonnages of in-placed coal contained in seams
MMMT 2011 (7.0 wasMTOE).
the or highestThe power
section ever
of ingeneration
seams the
for history
which sector
of information
sufficient local (data gathered
accounted
ncept quantified for
based on
coal mining and 74.9 from percent
drilling) is of the
available
represented around 47.0 percent to total coal
enable detailed or conceptual mine
planning.
consumption
of the countrysfollowed by
total the
coal cement-manufacturing
requirement. During
industry with 21.4 percent,
the first half of 2012, coal production while 2.4 percent for
already
other industries, such as meat processing and
AN 2012-2030 stood at 3.7 MMMT. Coal-fired44 plants share to the total power
Figure 39. PHILIPPINE COAL OPERATING CONTRACTORS generation mix increased by 9.8 percent, from
36 In-situ reserves are the tonnages of in-placed coal contained 23,301 GWh (2.0 MTOE) in 2010 to 25,577 GWh 37 Exploration
PHILIPPINE is the examination,
ENERGY PLANinvestigation
2012-2030 and/or exploration of lands 38 DC 2009-04-0004 reiterating a transparent and competitive
45
in seams or section of seams for which sufficient information supposed to contain coal by detailed surface geologic mapping, core system of awarding service/operating contracts for coal,
(data gathered from drilling) is available to enable detailed or (2.2 MTOE) in 2011. This could be attributed to drilling, trenching, test pitting and other appropriate means for probing geothermal and petroleum prospective areas, repealing for this
conceptual mine planning. the presence of coal deposits and extent thereof. purpose D.C No. 2006-12-0014.

mix increased by 9.8 percent, from 23,301 GWh (2.0 areas located in Albay, Cebu, Davao Oriental, Surigao
MTOE)
MTOE) in
in 2010
2010 to
to 25,577 GWh (2.2
25,577 GWh (2.2 MTOE)
MTOE) in
in 2011.
2011. del Sur, Surigao del Norte, Zamboanga del Norte and
del Sur, Surigao del Norte, Zamboanga del Norte and
This could be attributed to the commissioning of
This could be attributed to the commissioning of the the Zamboanga Sibugay.
Zamboanga Sibugay. These These additions
additions have
have brought
brought
first
first two
two (2)
(2) units
units of
of the 246-MW coal-fired
the 246-MW coal-fired power
power the countrys
the countrys total
total COCs
COCs to to
52 52
as aos f oJf une
June 2012
2012 (Figure
(Figure
plant in Toledo City in April (82 MW Unit I) and June
plant in Toledo City in April (82 MW Unit I) and June 39).
39).
2010
2010 ((82
82 M
MW
W UUnit II), respectively.
espectively.
country.To strengthen
To strengthen
Likewise, the
the competitive
competitive
diamond process
process
drilling 39 in in indigenous
is indigenous
being could be the basis of the development and Table 6. COAL MEASURABLE TARGETS
Figure
Figure 40. 40. COALCOAL AREAS FOR OFFER OFFER
energy
energy
undertaken development,
development, the
the
in the coal areas of Sultan Kudarat- DOE
DOE issued
issued D.C.
D.C. 2009-04-
2009-04- utilization of CBM resources in the country.
3737
0004
South 0004 . . Consequently,
Cotabato-Saranggani, Consequently, another another
Cebu,PECR PECR
Catanduanes for
for coal
coal was
was 2012 2015 2020 2025 2030
launched on
launched on 01 01 December
December 2011 2011 offering offering 38 38 Measurable Sectoral Targets
In-Situ Reserves (MMMT) 418.80 432.42 459.19 484.06 509.96
and Batan Island for detailed evaluation and Luzon 54.15 53.65 53.20 53.09 53.02
prospective coal
prospective coal areas
areas (Figure
(Figure 40). 40). Specifically,
Specifically, these
these
assessment of potential coal resources.
areas are located in: a) Luzon: Quezon, Catanduanes,
II 47.81 47.81 47.81 47.81 47.81
areas are located in: a) Luzon: Quezon, Catanduanes,
As in other indigenous energy resources, IV 0.44 0.29 0.21 0.47 0.74
Albay,
Albay, Sorsogon,
Sorsogon, Masbate, Masbate, Occidental Occidental Mindoro
Mindoro and
and V 5.89 5.54 5.18 4.81 4.47
POLICY INITIATIVES the government will promote the entry
Oriental
Oriental Mindoro; Mindoro; b) b) Visayas: Visayas: Negros Negros Occidental,
Occidental, Visayas 164.61 173.97 192.89 209.99 227.89
of private sector participation in the coal VI 2.93 3.16 3.62 4.03 4.48
Cebu,
Cebu, Bohol; Bohol; and and c) c) Mindanao:
Mindanao: Agusan Agusan del
del Norte,
Norte,
ToMisamis addressOriental, illegalAgusan coal mining del Sur, and
Surigao trading del Sur, industry to attain the 100 percent target VII 161.68 170.81 189.28 205.96 223.41
Misamis Oriental, Agusan del Sur, Surigao del Sur, Mindanao 200.04 204.81 213.10 220.99 229.05
activities
Compostela in various parts of the country, the increase in indigenous coal production, and
Compostela Valley, Valley, Davao
Davao Oriental, Oriental, Lanao
Lanao del Sur,
del Sur, IX 46.18 46.65 47.53 48.42 49.23
DOELanao issued
Lanao del
del Norte, DC No.
Norte, South
South 2012-05-0006
Cotabato,
Cotabato, Sultan
40
which
Sultan Kudarat,
Kudarat, consequently reduce coal importation. The XII 82.54 82.54 82.54 82.54 82.54
mandates
Saranggani, that no
Zamboanga person
Saranggani, Zamboanga del Norte and Zamboanga or
del entity
Norte is
and allowed
Zamboanga country has been importing an average of CARAGA 71.32 75.62 83.03 90.03 97.28
to Sibugay.
trade
Sibugay. orDuring utilizethe
During coal
the opening
unlessof
opening of bids
duly on on
accredited
bids 30 30 March
March 71.0 percent of its coal requirements for
Production
(@10,000 BTU/lb MMMT)
8.33 11.12 12.59 13.03 13.31
or2012,
registered the DOE
with accepted
DOE. 57
The
2012, the DOE accepted 57 proposals out of the proposals
Circular out
aims of the
to 69 69 the last 20 years. Local coal production Luzon 0.12 0.30 0.47 0.49 0.50
submitted
prevent submitted the proliferation offerings. The
offerings. The ofproposals proposals
illegal coal were
were deemed
miningdeemed to to
could further increase with the conversion II 0.04 0.18 0.31 0.33 0.33
have
andhave tradingcomplied with
activities, the required
irresponsible financial coal and and IV 0.01 0.03 0.05 0.05 0.05
complied with the required financial of currently issued COCs for exploration V 0.07 0.10 0.11 0.12 0.13
technical documentation. The DOE is set to award
technical
handling, stockpiling, documentation. and transporting The DOE resulting is set to award to development and production stage. To Visayas 7.48 8.85 9.13 9.27 9.28
the new set of COCs by the first quarter of 2013. VI 7.22 8.14 0.98 8.16 8.16
the n ew s et
in environmental impacts and substantial o f C OCs b y t he f irst q uarter of 2loss
013. ensure timely completion of the contract VII 0.26 0.71 0.00 1.11 1.11

of On the other hand, in terms of small-scale coal areas,
government revenues from unreported coal commitments and facilitate the conversion, Mindanao 0.73 1.96 3.00 3.27 3.53
sales. On the other hand, in terms of small-scale coal areas, IX 0.43 0.74 0.96 1.08 1.08
25 SSCMPs were issued in 2010 in the areas of Albay, the DOE will strictly monitor the work X - 0.02 0.02 0.02 0.02
25 SSCMPs were issued in 2010 in the areas of Albay,
Cebu, Negros Occidental and Zamboanga Sibugay and program of project proponents. Likewise, XII 0.13 0.68 1.28 1.41 1.62
Cebu, Negros Occidental and Zamboanga Sibugay and
ALTERNATIVE
another 19 SSCMPs USES in OF2011 COALfor areas located in Cebu, CARAGA 0.17 0.53 0.75 0.76 0.82
with due diligence and in coordination with Fuel Oil Displacement
Misamis Oriental, Agusan del Sur, Surigao del Sur, another 19 Sibugay,
Zamboanga SSCMPs iSurigao n 2011 fand or areas
Samar. located
Moreover, in Cebu, 4.40 5.87 6.65 6.88 7.02
PHILIPPINE
CompostelaENERGY Valley, CDavao ONTRACTING Oriental,ROUND Lanao del Sur, The DOE
Zamboanga implements
Sibugay, Surigao coal and development
Samar. Moreover, concerned government agencies, such as (KTOE)
PHILIPPINE during the first semester of 2012, 21 SSCMPs were
Lanao del ENorte, NERGY CONTRACTING ROUND
South Cotabato, Sultan Kudarat, projects during in
issued tothe first semester
address
Zamboanga theSibugay,
social of acceptability
2012,
two (2) 21
in SSCMPs
and del
Surigao were DENR and local government units (LGUs),

Through the regular conduct of the PECR, which issued in Zamboanga small-scale coal mining permits will still be issued 246-MW Toledo Expansion Project in Barangay
Saranggani, Zamboanga del Norte and Zamboanga environmental issues on the use of coal. The del
Sibugay, two (2) in Surigao
Through
started the
in regular
2006, the conduct
DOE promotes of the
local PECR,
and which Sur and one (1) in Albay bringing the total number of
foreign Sur and one (1) in Albay bringing the total number of during the planning period. The COC holders, Daanlungsod, Toledo City, Cebu (Table 6).
Sibugay. During the opening of bids on 30 March Coalbed SSCMPs Methane to 100 as (CBM) of June 412012. Resource of Selected
started
investment in 2006, the exploration
in the DOE promotes 36 local and foreign
, development and SSCMPs to 100 as of June 2012. including those awarded with SSCMPs, must
2012, the DOE accepted
investment 57 proposals 36 out of the 69 and Philippine Coalfields: A New Alternative Clean
production in of the exploration
the countrys , development
indigenous coal
Meanwhile, existing COC holders for exploration have conform with environmental concerns relating to On the other hand, six (6) mine-mouth power
submitted
production offerings. The proposals were deemed Burning Fossil
of the countrys indigenous coal Meanwhile, existing COC holders for exploration have Fuel Project aims to provide an
resources. The 2009 PECR resulted in the awarding of been conducting mining activities as stipulated in their respective projects with total potential generation capacity
to have complied with the required contracts financial
resources. The 2009 PECR resulted in the awarding of
two (2) new coal operating and
(COCs) on 24 inventory of CBM geological resources mapping, in the country boundary in and
been conducting
topographic surveys, geological
and sub-surface mapping, investigations boundary and Environmental Compliance Certificate (ECC). A of 500.0 MW are open for investments. These
two technical
March documentation.
(2) 2010
new coal operating
to Cedaphil The DOE
contracts
Mining is set to award
(COCs)
Corporation on 24 view
(COC- of the demand for cleaner and alternative
topographic surveys, and sub-surface investigations
such as trenching and test pitting in various coalfields complementary initiative is to improve the quality are located in the areas of Isabela, Cagayan,
March the new set
2010 of COCs
to by
Cedaphil the first
Mining quarter of
Corporation
171) and Core 8 Mining Corporation (COC-172) to in 2013. (COC- indigenous fuel. The project will also update
the country. Likewise, diamond drilling38 is being
such as trenching and test pitting in various coalfields of local coal, which will be a continuing effort Sultan Kudarat, South Cotabato and Surigao.
171)
explore and coal
Core 8 Mining
resources in Corporation
the areas of (COC-172) to resource
Toledo City, in the estimates
country. Likewise, of coalfields to fullydrilling
diamond assess38the is being
explore
Cebu. coal
On theSimilarly, other resources inin
on 14
hand, the areas
December
terms of Toledo
2011,
of small-scale City, CBM resource potential in the country. As part of
the coal
DOE between the government and industry players.
Cebu. areas,Similarly,
25 SSCMPs on were
14 December
issued in2011, 2010 the
in the DOE the37 project,
DC 2009-04-0004 activities,
reiterating such as diamond
a transparent and competitive drilling system of
Development Challenges
areas of is Albay, Cebu,investigation
Negrosand/or Occidental
37awarding service/operating contracts for coal, geothermal and By 2030, in-situ reserves will reach 510.0 MMMT.
exploration oand
f lands and petroleum prospective areas, repealing for this purpose D.C No. 2006-
gas sampling, reiterating
were conducted inand
Zamboanga
36 DC 2009-04-0004 a transparent competitive system of
Exploration the examination,
36 Zamboanga
awarding service/operating contracts for coal, geothermal and Around 44.9 percent of these reserves are found Need for a continuing multi-stakeholder
Exploration is the eSibugay
xamination, iand another and/or e19 SSCMPs of lands coalfield,
supposed to contain coal by detailed surface geologic mapping, core 12-0014. followed by similar activities in Batan
nvestigation xploration petroleum prospective areas, repealing for this purpose D.C No. 2006-
drilling, trenching, test pitting and other appropriate means for probing
38
Diamond Drilling is a method of drilling to explore coal and minerals in Mindanao (specifically Region XII). Meanwhile, dialogue and IEC to address environmental
inthe 2011
supposed
presence for
to areas
contain
of coal
coal located
by
deposits inthereof.
detailed
and extent Cebu, Zamboanga Island,
surface geologic mapping, core Cebua drill mand
12-0014.
using Semirara
achine Island
with a diamond bit. in 2010.
drilling, trenching, test pitting and other appropriate means for probing
38
Diamond Drilling is a method of drilling to explore coal and minerals about 44.7 percent will be sourced from the and social acceptability issues related to
Sibugay, Surigao and Samar. Moreover,
the presence of coal deposits and extent thereof. during the using a drill machine with a diamond bit.
Visayas, and the remaining from North Luzon. In coal mining and utilization projects. The IEC
first semester of 2012, 21 SSCMPs were issued in Analyses of the gas content, gas storage capacity
PHILIPPINE ENERGY PLAN 2012-2030 46 the near term, coal production (@ 10,000 BTU/lb) campaign also aims to enlist the support of
Zamboanga Sibugay, two (2) in Surigao del Sur and coal quality indicated that the Malangas
host communities to coal projects.
PHILIPPINE
and one (1)ENERGY in Albay PLAN bringing the total number of coalfield in Zamboanga exhibits high potential 46
2012-2030 is expected to reach 8.33 MMMT by 2012 with an
SSCMPs to 100 as of June 2012. for CBM. The CBM project will have its final uptick target of 12.59 MMMT by 2020. At the end
evaluation completed by end of 2012. This of the planning period, this is projected to reach its Need to develop a program that would
100 percent target with an estimated production harness and improve the quality of the
Meanwhile, existing COC holders for exploration
39 Diamond Drilling is a method of drilling to explore coal and of 13.3 MMMT (@10,000 BTU/lb). Bulk of the countrys vast low-rank coal to create
have been conducting geological mapping, minerals using a drill machine with a diamond bit.
production will come from the large-scale coal higher demand for such and reduce coal
boundary and topographic surveys, and sub- 40 DC No. 2012-05-0006 Guidelines on the Accreditation of Coal
Traders and Registration of Coal End-Users mines in the Visayas, specifically in Region VI, and importation. There is also a need to intensify
surface investigations such as trenching
41 Process by which methane gas is extracted from coal bed using the small-scale coal mines in the Mindanao region. studies on other alternative uses of local
and test pitting in various coalfields in the drill holes that siphon or drain the gas that can be used for power
generation and other energy applications. The target production will likewise fuel the coal to promote its utilization.

Need to develop a framework/methodology parallel initiative, the DOE will formulate and Renewable Energy In the finalization stage is the set of rules on
for the pricing of indigenous energy. The implement a policy on the use of indigenous Renewable Portfolio Standard (RPS) which
upstream coal sector recognizes the need to low-rank coal including a corresponding The concern on energy supply security, volatility sets the minimum percentage of generation
establish a benchmark for local coal pricing. program to enhance its quality and of oil prices, as well as the adverse effects of energy from eligible RE resources, provided by the
compliance with environmental standards. uses to the environment are primary reasons why generators, distribution utilities and electric
Need to review tax issues affecting energy there is a need to strengthen the development suppliers. Initially, an installation target of 760
prices. Attendant to the exploration and Undertake studies on environment- and utilization of RE sources. The passage of the MW from RE is set for the first three (3) years
development of indigenous energy resources friendly alternative uses of coal such as coal RE Law of 2008 and the adoption of the NREP from 2013 to 2015 broken down as follows:
are various local taxes that make the cost of liquefaction43, coal gasification44 and CBM for 2012-2030 are among the governments
producing and utilizing local energy expensive. technology. response to these growing concerns. The NREP 1) 250 MW - biomass
was formulated and officially launched on 14 June 2) 250 MW - run-of-river hydro
Plans and Programs With the improvement of local coal quality and 2011. It contains the renewed commitment of 3) 50 MW - solar
adoption of clean coal technologies, the DOE the government to promote utilization of RE and 4) 200 MW - wind
Within the planning horizon, the DOE in will continue to work on the development of aspiration to increase its contribution to power 5) 10 MW - ocean
collaboration with the private sector, will a sustainable market for the industry to make generation from its 2010 level and harness its
undertake the following initiatives to increase local coal competitive with imported coal potential for non-power application. Specifically, On the other hand, the FiT provides guaranteed
production and meet domestic requirements for from Indonesia, China, Vietnam and other the NREP objectives are as follows: payments on a fixed rate per kWh for RE
coal in power generation and industries: coal exporting countries. generation excluding generation for own
Increase the utilization of indigenous RE use. On 27 July 2012, the Energy Regulatory
Formulate and implement, in the immediate Similar with natural gas resource, a resources to help ensure the countrys Commission (ERC) approved the initial Feed-in
term, policy reforms on the following: (a) framework/methodology for pricing of local energy security and independence as well Tariffs (FITs) rates (Table 7) which will apply to
Revised Coal Mine Safety and Regulation; (b) coal resource will be developed to maximize as minimize the adverse impact of modern generation from renewable energy (RE) sources,
Revised Small-scale Coal Mining Guidelines; the benefits that will accrue to government in energy use; particularly, run-of-river hydro, biomass, wind,
(c) Guidelines on coal traders accreditation terms of collecting appropriate government and solar. There is no FiT rate initially approved
and coal transport permit; and (d) CBM. royalties, determination of the true cost of Institutionalize a comprehensive approach for Ocean Thermal Energy Conversion (OTEC)
production, and the formulation of realistic to address the challenges and gaps hindering resource as further study and more data analysis
Continue the regular conduct of PECR to offer price projections. the wider application of RE technologies in a must be first undertaken.
prospective coal areas for exploration and sustainable manner;
development covering the countrys 13 coal Harmonize national and local taxes imposed Table 7. ERC-APPROVED FIT RATES
basins and those to be determined as new on energy development activities. Assist the stakeholders including donor Resource FiT Rate (PhP/kWh)
potential sites. institutions to maximize market penetration Hydropower 5.90
Continue international undertakings such as of RE resources in the energy sector; and, Biomass 6.63
Pursue R&D activities to improve existing participation in the ASEAN Forum on Coal Wind 8.53
technologies for pollution control in the (AFOC) to advance domestic initiatives on the Outline the action plan necessary to facilitate Solar 9.68
use of coal, particularly in coal-fired power promotion of clean coal technology (CCT), and encourage greater participation of
plants. As a corollary effort, the DOE will enhancement of low quality coal, building up private sector. The approved FiTs shall be subject to review and
institutionalize the application of clean coal of coal image to promote social acceptability, readjustment by the ERC after three (3) years of
technologies such as fluidized bed combustion, and determining the applicability of other Underpinning the NREP are the policy initial implementation or when the installation
flue gas desulfurization and electrostatic potential technologies like carbon capture and mechanisms under the RE Law of 2008. targets for each technology as set by the DOE
precipitation to address concerns on storage. The development of ASEAN regional The DOE and other concerned government have been met.
marketability and environmental issues. policy on coal trade would likewise facilitate institutions are mandated to formulate the
supply arrangements among member states. policy mechanisms to fully implement the RE Meanwhile, the total installed capacity from
Promote adoption of local coal quality Law that include the following: RE as of 2011 stood at 5,486.8 MW with a
upgrading technologies such as coal slight increase of 0.88 percent from 2010
washing 42/preparation and blending. As a Renewable Portfolio Standards (RPS) level (Table 8). Hydropower contributed the
43 Process by which solid coal is converted into liquid fuel by Feed-in Tariff (FiT) biggest share with 3,491.0 MW followed by
42 Wet method of cleaning low-rank coal by separating coal from blending coal with a catalyst and a hydrogen-donor solvent.
Green Energy Option Program geothermal with 1,847.7 MW installed capacity.
the wastes using the specific gravity differences. This method 44 Process of converting solid coal into fuel gas through coal contact
The decommissioning of the Northern Negros
reduces ash and sulfur contents of coal and increases its heating with steam and oxygen that causes thermal reaction to produce Net-Metering for Renewable Energy
value. gas, which in turn, can power gas turbines. Geothermal Plant (NNGP) and the Bac-Man

A. GEOTHERMAL

Geothermal Plant (BMGP) Unit 2 (Botong) Table 8. RENEWABLE ENERGY INSTALLED A. GEOTHERMAL
With total installed capacity Figure 41. GEOTHERMAL SERVICE CONTRACT AREAS
contributed to the decrease of geothermal total CAPACITY (in MW) of 1,847.7 MW as of
installed capacity of about 6.0 percent from its December 2011, the installed country
Capacity MW Percent Change
A. With GEOTHERMAL
remains
total
2010 level. Grid-connected biomass installed capacity of 1,847.7largest one of the
Resource (Increase/
MW
capacity reached 82.8 MW in 2011. However,
2010 2011 (Decrease)

producers of geothermal
as of December 2011, the
there are other existing plants for self-generation Hydropower 3,400.00 3,491.00 2.68 energy
With in the
total world capacity
installed next to
country remains one of Figure 41. GEOTHERMAL SERVICE CONTRACT AREAS
and possible grid connection installed and Geothermal 1,966.00 1,847.69 (6.02) the
of United
1,847.7 MW States as of of
the largest 44
America . Among the major producers of
operating in 2011 with a total capacity of 31.4 Wind 33.00 33.00 - December
geothermal 2011,
energy the country
in the the
islands,
remains Visayas
one of the has largest
MW. This brings the total installed capacity Biomass 39.00 114.15 192.69
world next to thecapacity United
highest
producers installed
of geothermal
from biomass to 114.2 MW (grid and own- Solar 1.00 1.00
States of America 45
. Among
with 915.2
energy in the MW,
world Luzon next has to
use). Meanwhile, solar power installed capacity Total 5,439.00 5,486.84 0.88 the major islands, Visayas
remained at one 1.0 MW. the United States hof
824.0 M W a nd M indanao as
has
108.5 the 44 highest
MW
America . Among the major of installed
geothermal
stages of development. The target dates of energy.
capacity Visayas with 915.2
islands, has MW, the
As of first semester 2012, there are 215 RE commercial operation are expected to sustain or Luzon has 824.0 MW and
highest installed capacity
service contracts and registration certificates even increase the contribution of RE to power Currently, the country has 35
Mindanao has 108.5 MW of
with 915.2 MW, Luzon has
awarded broken down as follows: (i) hydropower generation mix. Geothermal
geothermal energy. Service
824.0 MW and Mindanao has
with 109; (ii) geothermal with 26; (iii) Wind Contracts.
108.5 MW of Of geothermal these
with 22; (iv) biomass with 39; (v) solar with 18, Table 10 summarizes the target of the government contracts,
energy.
Currently, 25
theare country under pre- has
and (vi) ocean with one (1) (Table 9). These RE on renewable energy over the planning period. development stage (Figure
35 Geothermal Service
contracts and registration certificates awarded The total target capacity is estimated at 9,525 41), five (5) are producing
Currently, the country has 35
Contracts. Of these
had an aggregate estimated capacity of 5,848.8 MW from committed and indicative projects, fields, while the remaining
Geothermal Service 5
contracts,
are Geothermal 25 are under Operating pre-
MW. To date, these projects are under different including potential resources. Contracts.
development Of
stage (Figurethese
Contracts for are
power The geothermal resources are being used to
contracts, 25 under plant pre- operators. The
41),
Tongonan Field five (5) are producing
in Leyte fields, while the and
operate operated power byplants,
Greencore
namely: Geothermal
Tongonan I Inc., and
development stage (Figure hosts the largest 45
remaining 5resource
geothermal are Geothermal in the Operating
Philippines Contracts with while
Unified theLeyte.
Energy The Development
Tongonan I is Corporation now owned
Table 9. AWARDED RE SERVICE CONTRACTS UNDER R.A. 9513 41), five (5) are producing
for power
total while generating plant operators. The Tongonan
capacity 5 of 722.7 MW, Field and
(EDC) operated
manages by
the Greencore
development Geothermal
of the steam Inc.,
fields, the remaining
2010 2011 2012 in Leyte
followed hosts the458.5-MW
by the largest geothermal Makiling-Banahaw while the
resource in field and operates the Unified Leyte geothermal Energy Development Corporation
are Geothermal Operating
(MakBan) in Calauan, Laguna. Other producing
the Philippines with total generating capacity (EDC) manages the development of the steam
The of power plants. Since the project commenced
Resource No. of
Contracts
Estimated
Capacity (MW)
No. of
Contracts
Estimated
Capacity (MW)
No. of
Contracts
Estimated Capacity
(MW) Contracts for power plant operators. The geothermal resources are being used to
fields
722.7 are
MW, the 234-MW
followed
Tongonan Field in Leyte hosts the largest by Tiwi
the in Albay,
458.5-MW Bicol,
Makiling- the operation
operate in 1977,
power 193
plants, wells
namely: have
been
Tongonan drilled
I and
Geothermal 12 615.0 6* 40.00 8 1,176.68
192.5-MW
Banahaw (MakBan)
geothermal Palinpinon
resource in in
the Valencia,
in Calauan, Laguna.
Philippines Negros Other and
with Unified Leyte. The Tongonan
have accumulated total electricity I45 is now owned
generation
Hydropower 63 385.20 9 963.06 37 899.50
Oriental,
producing
total the
generating fields131.5-MW are capacity theBacman
234-MW in Tiwi
of 722.7 Sorsogon,
in Albay, ofand
MW, 71,993 operated
GWh which by Greencore
is supplied Geothermal
to the Leyte- Inc.,
Biomass 23 251.42 16 162.05 2 19.56
Bicol,
followed
Bicol, the a nd t he 1 08.5-MW
by 192.5-MW
the 458.5-MW M indanao I
Makiling-Banahaw
Palinpinon a nd I I ( Mt. while the
in Valencia, Samar Grid. For the first half of 2012, electricity Energy Development Corporation
Wind 11 213.00 8 747.00 3* 70.00
Apo) in Kidapawan, North Cotabato. (EDC) manages
Solar 1 1.00 7 225.08 10 80.22 (MakBan) in Calauan, Laguna. Other producing
Negros Oriental, the 131.5-MW Bacman in generated alreadythe development
reached 3,296 GWh. of the steam
fields are the 234-MW Tiwi in Albay, Bicol, the
Ocean 1* - - - - - Sorsogon, Bicol, and the 108.5-MW Mindanao I
Producing Fields
192.5-MW
Palinpinon in Valencia, Negros
Total 111 1,465.62 46 2,137.19 60 2,245.96 and II (Mt. Apo) in Kidapawan, North Cotabato.

Oriental, the 131.5-MW Bacman in Sorsogon,
*Includes sites with undetermined potential capacity Tongonan, Leyte. The Tongonan producing field
Bicol, and the Fields 108.5-MW Mindanao I and II (Mt.
Producing
utilizes geothermal source from Tongonan,
Apo) in Kidapawan, North Cotabato.
Table 10. SUMMARY OF RE RESOURCES, 2012-2030 Mahanagdong, Mahiao and Sambaloran sectors.
Tongonan, Leyte. The Tongonan producing
Producing Fields
Estimated Capacity (MW) field utilizes geothermal source from Tongonan, Geothermal plant in Tongonan, Leyte
Type of Technology
Mahanagdong, Mahiao andcapacity
Sambaloran sectors.
44
USA has an installed generating of 3,048 MW as
Committed Indicative Potential Total Tongonan, Leyte. The Tongonan producing field
reported during the World Geothermal Congress held in
45
The privatization of Tongonan I was successfully conducted in
Hydropower 26.10 182.00 4,752.94 4,961.04 The geothermal
utilizes geothermal source from Tongonan,
Bali, I ndonesia l ast 2 5 resources
2 9 A pril 2 010. are being used to October 2009 with Greencore Geothermal Inc. as the winning
operate power plants, namely: Tongonan I and bidder.
Geothermal 90.00 200.00 1,165.00 1,455.00 Mahanagdong, Mahiao and Sambaloran sectors.
Wind 67.50 517.00 1,915.00 2,499.50 Unified Leyte. The Tongonan I is now owned 46
Biomass 35.20 132.30 52.40 219.90

PHILIPPINE ENERGY PLAN 2012-2030 Geothermal plant in Tongonan, Leyte 52
44
Solar - 35.00 284.05 319.05 45 USA
USA has has an installed
an installed generating
generating capacity
capacity of 3,048
of 3,048 MW MWas as Makban, Laguna. The MakBan Geothermal Field
45
reported
reported during the the
during World
World Geothermal
Geothermal Congress
Congress held held
in in The privatization of Tongonan I was successfully conducted in
Ocean - - 70.50 70.50 Bali,
Bali, Indonesia
Indonesia last 2last
5 225
9 April
292April010. 2010. traverses October the provinces
2009 ofGLaguna,
with Greencore eothermal IBatangas, and
nc. as the winning
218.80 1,066.30 8,239.89 9,524.99 46 The privatization of Tongonan I was successfully conducted Quezon. bidder. The field was developed by Chevron
in October 2009 with Greencore Geothermal Inc. as the Geothermal Philippines Holdings, Inc. under a
Note: Except for geothermal, variable RE committed projects are subject to FiT eligibility PHILIPPINE winning bidder. ENERGY PLAN 2012-2030 52

132 wells operated by EDC. The buyer of electricity is developments have brought the countrys total
have been drilled. Cumulative Bacman,
Greencore Sorsogon.
Geothermal The
Inc.46geothermal field
Since its operation
electricity generated Iloilo Electric Cooperative (ILECO). From 2007 to installed capacity to 1,847.7 MW as of
Makban, Laguna. The from the Geothermal
MakBan Makban servicing Bacman I - II and
in 1980, 82 wells have been drilled which has Manito Lowland
Geothermal Power Plant from 1979 to 2011 power plants harnesses its steam from Palayan, 2011, about 241 GWh of electricity was December 2011.
Field traverses the provinces of Laguna, produced 27,142 GWh of electricity as of end
stood at 68,646 GWh, while a total of 1,177 Cawayan and generated from 18 wells that were drilled in the
Batangas, and Quezon. The field was developed 2011, and for tBotong
he first hsectors of Albay
alf of 2012, and
it generated
GWh was already produced during the first half Sorsogon provinces. These power plants are is area. Despite the decline in generating capacity from
by Chevron Geothermal Philippines Holdings, a total of 1,174 GWh. The power produced
of Inc. under a contract with the National Power
2012. The MakBan Geothermal Complex now
supplied owned to the and
Visayas operated
grid. by Bacman geothermal power plants, gross electricity
contract
(power with the
plants) is National Power Corporation
now operated by AP Bacman,
Geothermal Sorsogon.
Inc. Since The
its initial geothermal
production field
in Performance Assessment
Performance Assessment synchronization
generated from to the grid of Unit
geothermal 1 of Bacman
increased by 0.13
Corporation (NPC). From its inception in 1979,
(NPC).
Renewables, From its inception
Inc. in
following 1979,
its 132 wells have
successful servicing
1993, the Bacman
number I
of - II
wells and
drilled Manito has Lowland
reached geothermal plant in December
percent from 9,929 GWh (8.6 MTOE) in 2010 to 2011 after
132 wells have been drilled. Cumulative Bacman, Sorsogon. The geothermal field
been drilled.August
privatization Cumulative electricity generated power plants harnesses its steam from Palayan, Among
Among the the renewable energy sources,
renewable energy sources, undergoing
9,942 GWh rehabilitation
(8.6 MTOE) in in
2009. With
2011. The theslight
electricity in generated 2008.
from the Makban 60. Total
servicing electricity
Bacman I - generation
II and Manito from Lowland
these
Geothermal Power Plant from Power
from the Makban Geothermal Plant
1979 to from
2011 Cawayan and Botong sectors
power plants for the period 1993 to 2011 stood
power plants harnesses its steam from Palayan, of Albay and geothermal energy provided
geothermal energy provided the biggest the biggest aggregate generation from geothermal
increase in generation was attributed to the in 2011,
1979 to
stood at 2011 stood
68,646 at 68,646
GWh, while a GWh,
total while a total
of 1,177 Sorsogon
at Cawayan
7,176 MW provinces. which
and These
is funneled
Botong power
sectors plants
into
of the
Albay are now
Luzon
and contribution in the
contribution in the 2011
2011 total
total primary energy
primary energy a total of 17.1 MMBFOE was displaced. This
synchronization to the grid of Unit 1 of Bacman
of 1,177 GWh was already produced during
GWh was already produced during the first half owned
grid. andthe
For
Sorsogon operated byThese
first half
provinces. Bacman
of 2012, Geothermal
power 118 plants Inc.
GWh of
are accounting for 21.7 percent, as shown in
accounting for 21.7 percent, as shown in Figure couldgeothermal
be translated to foreign
plant exchange2011
in December savings after
the2012.
of first half The ofMakBan
2012. The MakBan Geothermal
Geothermal Complex electricity
Since its w
initial as a lready
production
now owned and operated by Bacman p roduced.
in 1993, the number Figure
42. 42. undergoing
of around US$ 1.88 rehabilitation
billion basedin on2009. the averageWith the
Complexplants)
(power (poweris plants)now is now operated
operated by AP by
ofGeothermal
wells drilledInc. hasSince reached 60. Total
its initial electricity
production in crude aggregate generation from geothermal in 2011,
price of US$ 109.9 per barrel during that
AP Renewables,
Renewables, Inc. Inc. following
following its itssuccessful
successful Mindanao,
1993, the North
generation from Cotabato.
number these of wells power The
drilled geothermal
plants for the
has reached Figure 42. PRIMARY ENERGY MIX, 2011
year a
(2011). total of 17.1 MMBFOE was displaced. This
privatization
privatizationin in August
August 2008.
2008. production
60. Total
period tofield
1993 electricity 2011 stood provides
generation
at 7,176 the
from
MW steam
these
which could be translated to foreign exchange savings
requirement for the Mindanao
power plants for the period 1993 to 2011 stood
is funneled into the Luzon grid. For the first I and II power Duringof athe round
firstUS$
half 1.88
of 2012, billion power
based ogeneration
n the average
plants.
at of
7,176 A total
MW owhich
f 33 wells were drilled sthe
ince Luzon
the
half 2012, 118 GWhis offunneled electricity into
was already fromcrude price of US$ 109.9 per barrel during that
geothermal already reached 5,261 GWh,
time of its operation in 1997.
grid. For the first half of 2012, 118 GWh of EDC developed year (2011). 14.6 percent share to the
produced. contributing about
the steam field
electricity was aand
lready operated produced. the power plant
The Makban Geothermal Field in Laguna / Quezon total generation mix.
During the first half of 2012, power generation

Mindanao, North Cotabato. The geothermal OPEN from AND geothermal
COMPETITIVE already SELECTION
reached 5,261 GWh,
Tiwi, Albay. Tiwi in the Albay province is the
production field provides the steam contributing about 14.6 percent share to the
third (3rd) largest geothermal facility in the PROCESS (OCSP) 48
requirement for the Mindanao I and II power total generation mix.
country which started commercial operation in
plants. A total of 33 wells were drilled since the
1979. From the 158 wells drilled in the area, The effectivity of Renewable Energy Act of 2008
time of its operation in 1997. EDC developed
Tiwi already produced a total of 47,971 GWh of (R.A.OPEN
9513)AImplementing ND COMPETITIVE Rules SELECTION
and Regulations
the steam field and operated the power plant PROCESS ( OCSP) 47

electricity
The Makban as Geothermal
of end-2011,
Field inwhile
Laguna588
/ Quezon GWh of (IRR) in May 2009 and the issuance of D.C. No.
electricity was generated during the first half of
2009-07-0011 49 in July 2009 led to the launching
Tiwi, Albay. Tiwi in the Albay province is the
2012.
Tiwi, A s
Albay. in Makban, Tiwi in Cthe
hevron likewise
Albay operates
province The effectivity of Renewable Energy Act of 2008
third largest geothermal facility in theis country
the of OCSP in October of the same year where
the steam field under a contract with NPC until
third rd Mindanao I and II power plants in Mt. Apo, North Cotabato (R.A. 9513) Implementing Rules and Regulations
which started commercial operation in the
(3 ) largest geothermal facility in 1979.
Geothermal power plants contributed 11.4 the following geothermal potential areas were
(IRR) in May 2009 and the issuance of D.C. No.
its privatization in August 2008. AP Renewables
country which started commercial operation in
From Mindanao,
46
North Cotabato. percent to the total installed generating capacity offered: (1) Cagua/Baua, Cagayan; (2) Daklan,
now the 158 he Twells drilled inComplex.
the area, Tiwi The geothermal
The Palinpinon power plants were privatized in October
Inc.
1979. o
From wns tthe iwi Gwells
158 eothermal
drilled in the area, 2009 with Greencore Geothermal Inc. as the winning bidder.
already produced a total of 47,971 GWh of production field provides the steam requirement Geothermal
of 16,226.9 MW power
in the plants
same contributed
year. However, 11.4
in Benguet; (3) Acupan-Itogon, Benguet; (4) Natib,
Tiwi already produced a total of 47,971 GWh of percent to the total installed generating Bataan; (5) Montelago, Oriental Mindoro; (6)
electricity as of end-2011, while 588 GWh of for the Mindanao I and II power plants. A total 2011, the Northern Negros Geothermal Project
PHILIPPINE
electricity as ENERGY PLAN 2012-2030
of end-2011, while 588 GWh of 53 capacity of 16,226.9 MW
electricity was generated during the first half of
electricity was generated during the first half of of 33 wells were drilled since the time of its was decommissioned with in
thethe same year.
completion of Labo,47 Camarines
An investment Norte; promotion (7)campaign
Isarog,in Camarines
which renewable
energy sites such as geothermal are offered and bid out to
2012. AAs
2012. s in inMMakban, Chevron
akban, Chevron likewise
likewise operates
operates operation in 1997. EDC developed the steam the testing of geothermal wells in the Negros
However, in 2011, the Northern Pataan Sur; (8)private Sta. Lourdes-Tagburos, Puerto Princesa
investors for their development.
the steam field under a contract with NPC until
the steam field under a contract with NPC until field and operated
Mindanao I and II powerthe power
plants in Mt. Apo, plant Northsince Cotabatothe production sector. Similarly, the critical City, Palawan; (9) Mainit, Surigao del Norte; and,
its privatization in August 2008. AP Renewables
its privatization in August 2008. AP Renewables expiration of the Build-Operate-Transfer (BOT) equipment
PHILIPPINEfrom ENERGYthe 20-MW PLANBotong2012-2030 power plant (10) Maibarara, Batangas/Laguna. 54
46
The Palinpinon power plants were privatized in October
Inc.nnow
Inc. ow oowns wns the theTiwi
Tiwi Geothermal
Geothermal Complex.
Complex. contract between EDC
2009 with Greencore and Inc.
Geothermal Marubeni Energy
as the winning bidder.
(Bacman II Unit 2) will be moved and utilized as
Services Corp. in July 2009. Electricity generated replacement for Cawayan power plant (Bacman In 2010, eight (8) Geothermal Renewable
Palinpinon,ENERGY
PHILIPPINE NegrosPLAN
Oriental. The Southern
2012-2030 for the Mindanao grid from 1997 to 2011 53 II Unit 1). The Botong power plant based Service Contracts (GRESCs) were awarded, four
Negros geothermal production field sources reached 11,287 GWh. As of first half of 2012, on the independent geohazard studies has (4) of which are under direct negotiation for
its steam from Puhagan, Balas-balas, Nasuji electricity generated was recorded at 560 GWh. indicated high risk of landslides. Likewise, Unit frontier areas, and two (2) were conversions of
and Sogongon sectors to supply the steam 3 of the 55-MW Tiwi geothermal power plant Geothermal Service Contracts (GSCs) under PD
requirements of Palinpinon I and II power plants. Northern Negros. The 49.4-MW geothermal field has undergone deactivated shutdown since 1442 into GRESCs. Further, in December 2011,
These power plants were formerly operated located near Mt. Kanlaon in Negros Occidental December 2006. These developments have six (6) (GSCs)50 were signed through direct
by NPC and currently owned by Greencore started its commercial operation in February brought the countrys total installed capacity to negotiation. The newly signed service contracts
Geothermal Inc.47 Since its operation in 1980, 2007. The field was developed and operated by 1,847.7 MW as of December 2011. are located in the areas of Abra, Benguet, Nueva
82 wells have been drilled which has produced EDC. The buyer of electricity is Iloilo Electric Ecija, Kalinga, Mountain Province, Ilocos Sur,
27,142 GWh of electricity as of end 2011, and Cooperative (ILECO). From 2007 to 2011, about Despite the decline in generating capacity from Cagayan, Bataan, Batangas, Laguna, Palawan,
for the first half of 2012, it generated a total of 241 GWh of electricity was generated from 18 geothermal power plants, gross electricity 48 An investment promotion campaign in which renewable energy
generated from geothermal increased by 0.13 sites such as geothermal are offered and bid out to private
1,174 GWh. The power produced is supplied to wells that were drilled in the area. investors for their development.
the Visayas grid. percent from 9,929 GWh (8.6 MTOE) in 2010 49 Guidelines Governing a Transparent and Competitive System of
to 9,942 GWh (8.6 MTOE) in 2011. The slight Awarding RE Service/Operating Contracts and Providing for the
47 The Palinpinon power plants were privatized in October Registration Process of RE Developers.
2009 with Greencore Geothermal Inc. as the winning increase in generation was attributed to the 50 The name of RE service contract for geothermal was changed
bidder. from GRESC to GSC in 2011.

Quezon, Oriental Mindoro, Camarines Norte, of these potential capacity additions are already Table 12. GEOTHERMAL POTENTIAL RESOURCES Optimization of geothermal
Camarines Sur, Sorsogon, Biliran and Surigao classified as committed projects the 20-MW utilization through
Region Project/Sector Location Potential Capacity (MW)
del Norte. Commissioning of these projects Maibarara Geothermal Power Project in Laguna, the cascading use and
Kalinga Kalinga 120
is expected to contribute a total of 785 MW the 20-MW Nasulo Geothermal Power Project Daklan Benguet 60 development of low
potential capacity additions for the entire grid. in Palinpinon, Negros Oriental, and the 50- CAR Buguis-Tinoc Ifugao 60 enthalpy system.
Another major milestone in the geothermal MW Mindanao III Geothermal Project in North Acupan-Itogon Benguet 20
Mainit-Sadanga Mt. Province 80
industry was the signing of five (5) GSCs on Cotabato which are expected to come on stream II Cagua-Baua Cagayan 45 Development of technology
9 March 2012 for the pre-development of between 2013 and 2014. The commissioning III Natib Natib, Bataan 40 that can tap acidic or young
areas in Misamis Oriental, Misamis Occidental, of the said projects represents 6.2 percent IV-A
Mabini Mabini, Batangas 20 geothermal systems. The
Zamboanga del Sur, Negros Occidental and North of the total potential capacity additions from San Juan Batangas 20
exploration and development
IV-B Montelago Oriental Mindoro 40
Cotabato with total potential capacity of 130 MW. geothermal available in the country. In terms of Del Gallego (Mt. Labo) Camarines Sur 65 of various promising areas
Likewise, three (3) new geothermal operating indicative projects, a total of 200 MW is expected V
Camarines Sur
Camarines Sur 70 have been temporarily
contracts (GOCs) were awarded on 8 May 2012 to be commissioned starting 2015 (Table 11). Geothermal Project
deferred pending the onset of
Southern Bicol Sorsogon 40
for the operation of Palinpinon Geothermal VI Mandalagan Negros Occidental 20 technological breakthroughs
Power Plant, Tongonan Geothermal Power Plant To further realize the target of increasing the VII Lagunao Negros, Oriental 60 in handling acidic wells.
and Bacman Geothermal Power Plant. contribution of renewable energy-based capacity VIII
Biliran Biliran 50
Bato-Lunas Leyte 65
to power generation, 26 geothermal projects with IX Lakewood Zamboanga del Sur 40 Need to institute policies
Measurable Sectoral Targets total estimated capacity of 1,165 MW (Table 12) Ampiro Misamis Occidental 30 that would manage energy
will be made available for potential investments X Balingasag Misamis Oriental 20
price risks, specifically price
The implementation of RE Act and the regular within the planning period. A total of 680 MW Sapad-Salvador Lanao del Norte 30
of geothermal steam which
Amacan Compostela Valley 40
conduct of OCSP is expected to spur investments is envisioned to come from Luzon, 195 MW from Mt. Zion North Cotabato 20 is currently benchmarked
in geothermal energy production. Visayas, and 290 MW from Mindanao. XI
Mt. Matutum General Santos 20 with the international price
Mt. Parker South Cotabato 60
XIII Mainit Surigao del Norte 30
of coal.
Aiming to outrank the countrys current global On the other hand, starting 2012, around 172
Total 1,165
standing in geothermal energy production, the wells are to be drilled for the next 20 years (Table
government targets the installation of additional 13). With the privatization of the PNOC- EDC (now Table 13. GEOTHERMAL MEASURABLE TARGETS Plans and Programs
1,455 MW geothermal capacity to contribute known as EDC), the private sector will take the 2012 2015 2020 2025 2030
Energy diversification
to the goal of tripling the share of renewable lead in the pursuit of developing new geothermal No. of wells to be drilled 10 11 9 5 8
will be a continuing
energy for power generation by 2030. Three areas, as well as expansion and optimization of Luzon 4 5 3 3 4
Visayas 3 5 4 2 4 priority of the
existing steam fields. By 2030, total geothermal Mindanao 3 1 2 - - government to boost the
Table 11. GEOTHERMAL CAPACITY ADDITIONS installed capacity will reach 1,808.9 MW, which Installed Generating Capacity
1,388.87 1,688.87 1,808.87 1,808.87 1,808.87 countrys energy supply
could generate 14,021 GWh of electricity. This will (MW)*
Potential and meet the growing
Region Project/Sector Location Capacity
Year
correspond to an equivalent fuel oil displacement Steam Availability (Cum. MW) 1,851.57 2,004.72 1,998.96 1,989.56 2,007.22
Available
Gross Generation (GWh) ** 10,212.82 12,415.29 13,522.67 13,756.84 14,020.57 domestic requirements
(MW)
of 3.4 MTOE by the end of the planning period.
IV-A Maibarara
Mt. Makiling,
20 2013 Fuel Oil Displacement for energy. To attain this
Laguna
In MMBFOE 17.02 20.69 22.54 22.93 23.37 development goal, the
VII Nasulo
Negros
20 2013 Development Challenges
Oriental In MTOE 2.46 2.99 3.25 3.31 3.37
DOE shall continue to
Mt. Apo, North
XII Mindanao III 50 2014 *Includes committed and indicative projects actively promote the use
Cotabato There is a need to harmonize provisions of **Equivalent power generation at 75 percent average capacity factor
of geothermal resources
Subtotal (Committed) 90 R.A. 7586 or the National Integrated Protected
relevant energy policies and programs through the OCSP. Continued exploration in
Tanawon
Albay and
40 2015 Areas System (NIPAS) of 199251 and R.A.
Sorsogon for a more comprehensive response to identified prospective areas both underexplored
Albay and 8371, otherwise known as Indigenous
V Rangas 40 2015 environmental and socio-cultural concerns. and unexplored specifically in the area of Mt.
Sorsogon Peoples Rights Act (IPRA)52 of 1997, with
Manito
Manito, Albay 40 2017 Balatukan in Balingasag, Misamis Occidental will
Kayabon
Negros 51 NIPAS is the classification and administration of all designated Said harmonization is a critical factor in be aggressively pursued for the next 20 years.
VII Dauin 40 2017 protected areas to maintain essential ecological processes and
Oriental life-support systems, to preserve genetic diversity, to ensure exploring and developing geothermal
Southern Leyte sustainable use of resources found therein and to maintain their
VIII Geothermal
Southern
2019 natural conditions to the greatest extent possible. resource especially those located in the Meanwhile, the current service contractors will
Leyte 40
Project 52 Section 7.a. of IPRA states the right to negotiate the terms and protected areas. be encouraged to undertake expansion and full
conditions for the exploration of natural resources in the areas
Subtotal (Indicative) 200
for the purpose of ensuring ecological, environmental protection
utilization or optimization of their respective
Total 290 and the conservation measures, pursuant to national and projects during the planning horizon. The
customary laws.

service contractors in the areas of Rangas and initiative would determine true cost of steam Further, 109 Hydro Service Contracts (HSCs) hydro resources, while Visayas and Mindanao
Tanawon in Bacman as well as Nasulo and Dauin production, as well as to facilitate formulation of have been awarded for exploration and have potential hydro resources of 250.7 MW and
in Palinpinon are set to undertake exploration of realistic price projections. development with equivalent potential capacity 1,412.5 MW, respectively.
geothermal reservoir to increase the potential of 2,247.8 MW. Of this, 37 HSCs were awarded in
B. capacity
HYDROPOWER
of these steam fields. 2012 with total capacity of 899.5 MW. CAR has the biggest hydro potential with a total
estimated capacity of 1,355 MW attributed to the
On the other hand, under the Detailed Resource Measurable Sectoral Targets mix of small and large potential sites, to include

The Assessment
passage of ofRE Low-Enthalpy
Act boosted Geothermal Resources
the development the 600-MW Apayao-Abulog. Region III has
in the Philippines Project, the activities
of hydro resources in the country and increased to be carried The overall thrust for hydro is to develop small- also huge potential hydropower resource due
out include detailed geo-scientific investigations
the contribution of renewable energy to the total and large-scale hydropower capacities and to Angat and Pantabangan hydro. It has a total
covering
energy geophysical
requirement. survey, geological mapping, explore further on ocean technology. During potential resource of 784.9 MW. It is interesting
geochemical survey, socio-economic, and the planning period, the target is to achieve an to note that hydro may be contributing to the
The environmental
total installed cbaselineapacity of h ydropower i
studies particularly in then 2 011 additional 4,961 MW of installed capacity from power requirement of the NCR. By 2015-2016,
was recorded at 3,490.7 MW, while total power
areas of Balut Island in Davao del Sur, Banton Island Micro hydro can be an excellent method of harnessing hydropower. This is equivalent to 142.0 percent hydropower development is expected with
generation during the same year was 9,698 GWh. renewable energy from small water system.
in Romblon and Maricaban Island in Batangas. increase from the 2011 installed capacity. The potential resource of 12.1 MW coming from the
The increase in installed capacity from 2010 level
(3,400 MW) was attributed to recent B. HYDROPOWER
technology. During the planning period, the target target installed capacity will be coming from rivers of Marikina, Pasig and San Juan.
Aside from in
developments large-scale
the sector geothermal
particularly development,
to the is to achieve an additional 4,961 MW of installed 26.1 MW committed and 182 MW indicative
the government
uprating of San Roque aisnd also taking
Buhi-Barit plants. to Performance
initiatives
hydro capacity from Assessment
hydropower. This is equivalent to projects, and 4,752.9 MW potential resources. Visayas may not be bountiful in hydro resources
develop non-power geothermal
After turning over these plants to their GenCo applications. The 142.0 percent increase from the 2011 installed similar to geothermal and biomass, yet an
conduct of various studies in collaboration
successors, the contract rating of 345 MW of San with The passage
capacity. of RE
The Act boosted
target installed the development
capacity will be Table 14 provides the list of hydro capacity estimated 250.7 MW hydro potential is present
Roque concernedand 1.8 agencies,
MW of as well as the
Buhi-Barit formulation
hydro plants of of hydro resources in the country and increased
coming from 26.1 MW committed and 182 MW additions from committed and indicative hydro in this region.
were guidelines
adjusted for non-power
to their use, ratings
nameplate are only 411 of the
of some indicative
contribution projects, and 4,752.9
of renewable energy MW
to the potential
total projects totaling to 208.1 MW. Committed
MW and 2.0 MW, respectively, thereby increasing
the programs being considered. resources.
energy requirement. projects having a total of 26.1 MW include both With hydro as its major source of power,
the total capacity of hydro by 66.2 MW. Other grid and off-grid connections. It is expected that Mindanao is gifted with about 1,412.5 MW of
contributory Table 14 provides the list of hydro capacity
To addressfactor environmental was the and rehabilitation
socio-cultural The total installed capacity of hydropower in by 2014, all committed projects are in place and this resource potential distributed all over the
conducted by successor additions from committed and indicative hydro
issues arising from GenCos of Ambuklao, of 2011
the implementation was recorded at 3,490.7 MW, while total contributing to the energy mix; and by mid of region. Of the total potential, 904.8 MW could
Magat and Binga Hydro Electric Plants yielding projects totaling to 208.1 MW. Committed
energy projects, closer coordination efforts power generation during the same year was the planning period, an aggregate of 182 MW be found in Region X, 114.1 MW in Region XI,
total increase in nameplate ratings of 215 MW. projects having a total of 26.1 MW include both
with concerned agencies such as the DENR, 9,698 GWh. The increase in installed capacity
grid and off-grid connections. It is expected that of indicative hydro capacities will be available and 285 MW in Region XII.

National Commission on Indigenous People from 2010 level
by 2014, all (3,400 MW)
committed wasare
projects attributed to
in place and for private investments. Upon
On the other hand, during the first half of 2012,
(NCIP), and Local Government Units (LGUs), recent developments in the sector particularly
contributing to the energy mix; and by mid of the successful installation of the Table 14. HYDROPOWER CAPACITY ADDITION
power grid generation from hydro resources
among others, and GWh host communities will have to the
planning uprating
period, ofan
San Roque and
aggregate Buhi-Barit
of 182 MW of 208.1 MW total committed and
already stood at 4,481 contributing about Capacity Target
to be strengthened.
12.4 percent share to the total IEC campaign also needs to hydro plants. After turning over these plants to indicative capacity additions, Region Project Name Location
(MW) Year
mix. to increase level of awareness of their GenCo successors, the contract rating of
Table 14. HYDROPOWER CAPACITY ADDITION
be intensified
generation it is estimated that by 2020 a IV-B
Linao-Cawayan Upper Baco, Oriental
2.10 2013
Cascade* Mindoro
stakeholders on the nature of the project. The joint 345 MW of San Roque and 1.8 MW of Buhi-Barit
Capacity Target cumulative gross generation of
Region Project Name Location VI Villasiga HEP Sibalom, Antique 8.00 2012
DENR-DOE
Further, 109 Technical
Hydro Service Working Group (TWG) and hydro plants were adjusted to their nameplate (MW) Year 11,273 GWh (including existing
Cantakoy Hydroelectric
Contracts
Secretariat (HSCs) created have bybeen virtue of Joint Linao-Cawayanratings of Baco,
411 Oriental
MW and 2.0 MW,2.10 respectively,
IV-B DENR-DOE capacity) could be added to the
Upper VII Danao, Bohol 8.00 2014
Mindoro 2013 Power Project
Cascade*
awarded
Specialfor Order exploration
Nos. 2011-12-0001 and and 2012-12- thereby increasing the total capacity of hydro generation mix. Such generation Jasaan, Misamis
VI Villasiga HEP Sibalom, Antique 8.00 2012 Cabulig Power Plant 1 4.00
development
0001, werewith issuedequivalent in 2011 and 2012, respectively. by 66.2 MW. Other contributory factor was the
Cantakoy Hydroelectric from hydro could be translated Oriental
X 2012
potential
Amongcapacity the functions of 2,247.8
and responsibilities
VII
Powerof Project
Danao, Bohol
the rehabilitation conducted by successor GenCos
8.00 2014
into an equivalent 2.7 MTOE of Cabulig Power Plant 2
Jasaan , Misamis
4.00
Oriental
MW. TWG Of isth is, harmonize
to 37 HSCs were policies andX guidelines Cabulig on Power of Plant Ambuklao,
1 Jasaan, MagatMisamisand Binga Hydro
Oriental 4.00 Electric fuel oil displacement.
2012 Total Committed 26.10
awarded in 2012 with
the exploration, development, utilization, and total Plants yielding total increase in nameplate
Cabulig Power Plant 2 Jasaan , Misamis Oriental 4.00 General Nakar,
capacity of 899.5 MW. IV-A Kanan Hydro Power 150.00 2020
conservation of natural resources for energy ratings of 215 MW.
Total Committed 26.10
The potential hydro resources Quezon
IV-A Kanan Hydro Power General Nakar, Quezon 150.00 2020 Impasugong,
projects especially in protected areas. as of the first semester of 2012 X Tagoloan HEP 20.00 2016
Measurable Sectoral Targets X Tagoloan HEP Impasugong, Bukidnon 20.00 2016 Bukidnon
On the other hand, during the first half of 2012, totaling to about 4,752.9 MW Baguio District,
XI Tamugan HEP
Baguio District, Davao
12.00 2018 XI Tamugan HEP 12.00 2018
The With thethrust
overall samefor issue onis high energy price of power grid
hydro
Citygeneration from hydro resources (Table 15) is expected to be Davao City
Total Indicative 182.00
indigenous
to develop energy
small- and resources,
large- Total the development already stood at 4,481 GWh contributing 208.10
about developed during the planning
Total Indicative 182.00
scale of ahydropower
framework/methodology capacities for the pricing of 12.4 percent share to the total generation mix. horizon. By major islands, Luzon Total 208.10
* off-grid hydropower projects
and geothermal
explore further resource is also seen
on ocean Note: necessary.
Hydro committed Suchprojects are subject to FiT eligibility has around 3,089.7 MW potential * off-grid hydropower projects
Note: Hydro committed projects are subject to FiT eligibility

As mandated in Section 6 of the RE Act and Sec. Table 15. POTENTIAL HYDROPOWER RESOURCE (in MW) C. BIOMASS energy were installed in 2010, 78.6 MW in 2011
4 Rule 2 of its IRR, all stakeholders are obliged Region Estimated Capacity
and 0.6 MW during the first semester of 2012 or
to contribute to the growth of the RE industry. NCR 12.10 Performance Assessment a total of 283.5 MW. Of these capacities, biomass
The same rule also mandates the DOE to set the CAR 1,355.00 projects with total of 78.8 MW are connected
annual minimum RPS requirements from eligible I 115.00
The governments program to develop biomass and exporting power to the grid. On the other
II 608.40
RE sources. Related to this, hydropower resources III 784.90 energy resources resulted in the substantial hand, biomass projects with total of 31.4 MW
listed in Table 15 are potential sources of annual RPS IV-A 96.80 increase in its capacity. The total installed as enumerated below are generating power
requirement once these are tapped and developed. IV-B 100.40
capacity of biomass facilities in 2010 reached to for own-use while waiting for FiT eligibility to
V 17.10
about 39 MW, while on-grid and self-generation connect to the grid:
Total Luzon 3,089.70
In remote areas, micro hydro could be utilized installations as of 2011 stood at 114.2 MW. Table
VI 163.50
as stand alone source of power. The micro hydro VII 84.20 16 shows the grid connected biomass facilities 12.5-MW Bataan 2020 Inc. in Samal
development program of the DOE will prioritize VIII 3.00 totaling to about 83.0 MW installed and 46.0 Bataan;
the inventory of the resources to optimize their Total Visayas 250.70
MW dependable capacities, respectively. Crystal
IX 5.70
uses and study the possibility of interconnection Sugar has started exporting power to the grid in 0.9-MW Hacienda Bio-Energy, Inc. in San
X 904.84
via mini-grid systems. The development of RE XI 114.10 February 2012, while Laguna Land Fill Gas and Miguel, Bulacan; and
in off-grid and SPUG or missionary areas shall XII 285.00 Casa Bioenergy have started exporting power
be aligned with the Missionary Electrification XIII 79.60
to the grid in March 2011. These generation 18-MW Victorias Milling Company in
Development Plan to ensure compliance with ARMM 23.30
facilities provided capacity additions to the Victorias City, Negros Occidental.
Total Mindanao 1,412.54
the procedures and guidelines set for the QTPs Total Philippines 4,752.94 Luzon Grid by 17.5 MW, Visayas Grid by 44.3
or New Power Providers (NPPs). MW and Mindanao by 21 MW. In 2011, total This brings the total installed capacity to 114.2-
need augmentation and requires future generation from biomass stood at 115.3 GWh, MW from biomass power.
Moreover, a demonstration facility of sea water development of ocean or sea waters. while generation in the first half of 2012 already
pump storage is targeted by 2030. This ambitious reached 85.3 GWh.
target provides the challenge to push more on Plans and Programs
the research, development and deployment Table 16. ON-GRID INSTALLED AND DEPENDABLE BIOMASS ENERGY, 2011
(RD&D) programs of the government coupled The following initiatives are targeted in the Capacity (MW)
Project Name Project Location
with the successful implementation of NREP medium- and long-term planning of government Installed Dependable
and policy mechanisms of the RE Law. to address the major challenges deemed as Montalban Landfill Methane Recovery and Electricity
Rodriguez, Rizal 9.25 5.40
barriers to optimal hydro resource development: Generation
Development Challenges Laguna Land Fill Gas San Pedro, Laguna 4.20 4.20
Ensure effective and timely implementation Lucky PPH* Alicia, Isabela 4.00 3.60
The development of large hydropower plants of fiscal and non-fiscal incentives provided
is capital intensive with an estimated cost of under the RE Act; 8 MW Bagasse Cogeneration Plant San Carlos City, Negros Occidental 8.30 4.00
21 MW Bagasse Cogeneration System Talisay City, Negros Occidental 21.00 10.00

PhP105 million per MW of installed capacity. Intensify efforts to develop untapped hydro
Other attendant challenges are as follows: resource potential; 15 MW Casa Bioenergy Passi City, Iloilo 15.00 12.00
Optimize the mini-hydro-potential in Crystal Sugar Maramag, Bukidnon 21.00 7.00

Government needs to put in place policy validated sites; Total 82.75 46.20
interventions that will bring profitable
return of investment from large hydropower Provide technology/technical support to *Contract awarded in 2009
development which has a longer gestation boost local manufacturing capability;
period. Establish standards and best practices and Table 17 summarizes biomass Table 17. AWARDED BIOMASS PROJECTS UNDER R.A. 9513
technology mentoring; registration certificates awarded
(in MW), as of June 2012
Hydro resources are located in by the DOE under the RE Law 2010 2011 2012
underdeveloped or undeveloped areas Establish and operate hydro research Region
totaling to 39 projects as of Potential Installed Potential Installed Potential Installed
which may require construction of roads. center; and, Capacity Capacity Capacity Capacity Capacity Capacity
first semester of 2012. Out of Luzon - 74.52 31.50 13.55 19.00 -
Develop and install demonstration facility of these certificates issued for Visayas 47.00 89.00 52.00 44.00 - 0.56
Present technologies on hydropower being sea water pump storage. commercial operation, projects Mindanao - 40.90 - 21.00 - -
applied and used on river systems may with total 204.4 MW of biomass TOTAL 47.00 204.42 83.50 78.55 19.00 0.56

by the proponents are mostly direct combustion
of agricultural residues or bagasse. Other biomass Addre
technologies that can be tapped are as follows: bioma
DOE,
Rice Hull Gasification agenc
Biogas Power Generation action
Table 18. AWARDED BIOMASS REGISTRATION CERTIFICATE FOR OWN USE, 2011 & FIRST SEMESTER 2012 Table 19. BIOMASS CAPACITY ADDITION
Re
Bagasse Cogeneration System
Year Project name Project Location Application Capacity (MW) Rated Target es
Region Project Name Waste-to-Energy
Location CCapacity
onversion Commissioning go
11 MW HISUMCO Bagasse Cogeneration
Kananga, Leyte Power 11.00 Multi-Fuel Biomass P(MW)ower Plant Year pr
Facility
2011
1 MW Cavite Pig City Biogas Waste to
Committed Projects Waste-to-Energy Project using Catalytic Co
Bataan Gen. Trias, Cavite Power 1.00
Energy Facility
NCR
Payatas Landfill Methane Recovery & Power Generation Hydrothermal
Payatas, Quezon CityGasification
1.20** 2012 de
Facility
18 TPH Reciprocating Grate Steam
Mariveles, Bataan Heating 12.00 Landfill Methane Recovery Ad
Boiler
2012 II Green Future Biomass Project San Mariano, Isabela 19.00* 2013 te
0.56 MW Marcela Farm Biogas Power
Generation Project
Cortez, Bohol Power 0.56
San Jose City, Nueva 11.00 Co
III San Jose City I Power Corporations Biomass Project 2014
2.4 MW Bayanihan Feed Products Multi- Km. 102 National Highway
Power 2.40 Ecija co
Fuel Biomass Power Plant San Leonardo, Nueva Ecija
VII
Consolacion Landfill Methane Recovery and ElectricityWhile biomass consumption has been recorded
Consolacion, Cebu 4.00 2015 Co
Total Generation
26.96
high, its use for power application remains low. th
Table 18 shows biomass energy registration expanding the share of biomass to the energy Subtotal (Committed)
Some of the challenges that 35.20
the government
certificates issued by the DOE in 2011 and mix. With the installation of these committed needs to address to be able to maximize the use
Indicative Projects
D. W
during the first semester of 2012 for own-use. and indicative biomass projects, the estimated II Lucky PPH Biomass Power
of b iomass a re
Alicia, Isabela
a s f ollows: 3.60 2013
These projects have total capacity of about 27.0 cumulative gross generation from biomass by Need to harmonize the DOE related programs Perfor
MW intended for power and direct heating until 2016 is estimated at 662.4 GWh (includes III Nueva Ecija Biomass Power Project with
Ecija
agro-forestry policies
San Leonardo, Nueva
17.50 for an integrated
2014

applications. existing capacity). This is equivalent to 0.16 use of biomass for other applications; The co
IV-A Unisan Biogas Project Unisan, Quezon 11.20 2013/2015
MTOE of fuel oil displacement. Need to upgrade existing transmission numb
Asea One Power Corp. Banga, Aklan 12.00 2014
Measurable Sectoral Targets infrastructure to support additional grid Asia.
17.50 2014
On the other hand, potential biomass projects Green Power Panay (17.5 x 2) connection
Mina, Iloilo of biomass power; Servic
To sustain the target growth of biomass in the are expected to provide an aggregate capacity VI Need for standards and best practices sharing
17.50 2015 under
energy mix, it is incumbent upon the government of about 52.4 MW within the planning period for
Sansustainable
Carlos City, biomass supply to 2014
further from
San Carlos Bagasse-Fired Power Generation 18.00
to pursue continuing resource development (Table 20).
Negros Occidental projec
encourage investments in biomass power;
coupled with the conduct of research and X Bukidnon Biomass Power Project Maramag, Bukidnon 35.00 2013 non-fi
and, govern
development. Priority programs will address Biomass technologies in the country are Subtotal (Indicative) 132.30
Need to improve separation technologies at the la
gaps that hinder the spur of biomass power mature and available. To date, the DOE is Total 167.50
the Municipal Recovery Facilities to maximize comm
development and utilization. Likewise, strong accepting applications for accreditation of
Note: Biomass committed projects are subject to FiT eligibility the benefits from the technology.
partnership and collaboration with the private local manufacturers and fabricators of parts * Includes 6 MW for own use The ad
sector would remain an essential component in and equipment for biomass facility. Currently ** 0.20 MW is already operational since 2011
Phase
the government programs. It is expected that the biomass technology being applied for install
Biomass Renewable Energy Operating Contracts registrations by the proponents are mostly Table 20. BIOMASS POTENTIAL RESOURCE (in MW) 2011,
(BREOCs) and Certificates of Registrations direct combustion of agricultural residues or Region Capacity stood
issued by the DOE on various biomass projects bagasse. Other biomass technologies that can III 2.00 half of
would continue to expand the contribution of be tapped are as follows: IV A 44.00

biomass to the countrys primary energy mix Measu
IV B 0.40
both for power and non-power applications. Rice Hull Gasification
Total Luzon 46.40
Until 2015, it is targeted that about 167.5 MW Biogas Power Generation Fuel wood is a source of biomass energy in rural areas for non-
The g
VIII 6.00
from biomass committed and indicative projects power application energy
Bagasse Cogeneration System Total Visayas 6.00
will become commercially operational and are Waste-to-Energy Conversion Total Philippines 52.40
expected to export power to the grid. Table 19 Multi-Fuel Biomass Power Plant Need to upgrade existing transmission
enumerates the list of committed and indicative Waste-to-Energy Project using Catalytic Some of the challenges that the government PHILIPPINE ENERGY PLAN 2012-2030
infrastructure to support additional grid
biomass projects intended for grid connection. Hydrothermal Gasification needs to address to be able to maximize the use connection of biomass power.
Biomass committed projects with estimated Landfill Methane Recovery of biomass are as follows:
installed capacity of 35.2 MW are expected Need for standards and best practices
within short- to medium-term subject to FiT Development Challenges Need to harmonize the DOE related programs sharing for sustainable biomass supply to
eligibility. Indicative projects with total capacity with agro-forestry policies for an integrated further encourage investments in biomass
of 132.3 MW are likewise expected within short- While biomass consumption has been recorded use of biomass for other applications. power.
to medium- term to support a sustained plan of high, its use for power application remains low.

Need to improve separation technologies wind power stood at 88.2 GWh, while generation Table 21. WIND POWER CAPACITY ADDITION
at the Municipal Recovery Facilities to in the first half of 2012 already reached 38.7
maximize the benefits from the technology. GWh. Region Project Name Capacity (MW) Location Target Year
IV-A Pililla Wind Power Project 67.50 Pililla, Rizal 2013
Plans and Programs Measurable Sectoral Targets Subtotal (Committed) 67.50

Pasuquin East Wind Energy Project Phase I 48.00 Pasuquin, Ilocos Norte 2013
Addressing challenges in the development of The government program to accelerate wind Burgos Wind Power Project 86.00 Burgos, Ilocos Norte 2013
biomass power is not a sole responsibility of the energy development during the planning horizon Caparispisan Wind Energy Project 50.00 Pagudpud, Ilocos Norte 2014
DOE, rather a concerted effort of relevant line is geared towards mainstreaming wind power I
Balaoi Wind Energy Project 30.00 Pagudpud, Ilocos Norte 2014
agencies and industry stakeholders. The following into grid. However, there are preconditions that Pasuquin East Wind Energy Project Phase II 72.00 Pasuquin, Ilocos Norte 2014
action plans are deemed important, to wit: require government interventions to achieve Mabitac Wind Power Project 56.00 Mabitac, Rizal 2015
IV-A
its goal of maintaining the lead wind energy Cavinti Wind Farm Project 50.00 Cavinti, Laguna 2016
Review of existing policies as well as producer in Southeast Asia. First, there must IV-B Puerto Galera Wind Power Project 16.00 Puerto Galera, Oriental Mindoro 2015
establishment of linkage with other be innovative financial programs available San Lorenzo Wind Power Project 54.00 San Lorenzo, Guimaras Island 2014
government agencies to harmonize plans from both the government and private financial VI Nabas Wind Power Project 50.00 Nabas, Aklan 2013
and programs; institutions; and second, there is a need to develop X Camiguin Island Wind Power 5.00 Camiguin Island 2015
infrastructure support for streaming wind power. Subtotal (Indicative) 517.00
Continuing conduct of research and Wind power grid parity is expected by 2025 Total 584.50
development in biomass technology; upon the installation of 2,499.5 MW committed, Note: Wind power committed project is subject to FiT eligibility
indicative and potential wind projects.
Adopt appropriate Waste-to-Energy
FiT rate is Ph8.53 per kWh. However, this does not
technology; As shown in Table 21, the committed and Table 22. WIND POWER POTENTIAL RESOURCE
apply on generation for own use.
indicative wind power projects have a total Region Capacity (MW)
Conduct IEC activities and public capacity of 584.5 MW. Of the total, 67.5 MW I 572.00
consultations; and, is a committed project from Pililia Wind Power, II 240.00
which is expected to be available by 2013. On the III 282.00
Concerns over the expanded development of
Conduct study to assess biomass utilization other hand, the development of indicative wind IV A 50.00
wind energy involve not only the government
in the country. projects would provide 517 MW of additional IV B 42.00
but also the potential investors. Policy and
capacity, most of which is located in Region I. V 586.00
program mechanisms need to be put in place to
D. WIND Cumulative gross generation from these capacity Total Luzon 1,772.00
achieve the objective of harnessing the countrys
additions by 2016 is equivalent to 1,577.1 GWh VI 103.00
natural resources. The following are challenges
Performance Assessment providing 0.4 MTOE of fuel oil displacement. VII 40.00
on wind power development:
Total Visayas 143.00
The country is set to maintain its position as the The country could also harness the potential Total Philippines 1,915.00
High cost of development to include limited
number one wind energy producer in Southeast wind resources during the planning period
inches diameter each) installed by the DOE will local manufacturers, fabricators and
Asia. As of mid-2012, there were 22 Wind with total estimated capacity of about 1,915.0
determine the certainty of wind power that suppliers of RE equipment and components.
Energy Service Contracts (WESCs) awarded MW (Table 22). Most of the wind potentials
can be generated in the following wind farm Limited options to optimize the development
by the DOE under the RE Law. The estimated are found in Luzon, which has 1,772 MW for
sites: i) Malasin, San Jose City, Nueva Ecija; ii) of resources due to lack of updated database.
installed capacity from these contracts totals to possible grid and off-grid connections. The
Fatima, Pantabangan, Nuevas Ecija; and, iii) East
1,030 MW. These projects shall be entitled to all resource-dominant provinces in Luzon are
Poblacion, Pantabangan, Nueva Ecija. Like any Need to enhance local technical capability.
the financial and non-financial benefits provided Ilocos Norte, Pangasinan and Cagayan. In the
other RE resource, the advancement of wind
under the governing policy mechanisms and Visayas there is an estimated 143 MW potential
energy depends on the continuing conduct of Limited information and education campaign
regulations of the law upon their successful capacity addition from wind energy.
RD&D and application of modern technology. activities on RE to include advocacy on its
development and commercial operation.
benefits.
Further, the conduct of detailed resource
Along with the lined-up programs and activities,
The additional 8-MW Bangui Wind Power assessment has been a continuing activity of the
government policy and interventions are necessary Limited information on the financial and
Project Phase-II in Ilocos Norte brought the total DOE to update the countrys inventory of wind
to boost the development and generation of wind technical access to new and emerging
existing installed capacity from wind power to resource. Related to this, the three (3) wind
power. For wind generation, the ERC approved technologies.
33 MW. In 2011, gross power generation from meteorological masts (50 meters height and 8

about 20,305 units PV installed under the RPP. It
Plans and Programs capacity addition, cumulative gross generation Conduct of detailed resource assessment

is broken down to 15,289 solar home systems, from solar is estimated at 108.6 GWh with and establishment of national database for
The following
2,302 solar PV-supported measures public are expected
facilitiesto and address equivalent 0.03 MTOE of fuel oil displacement. solar resource data;
the solar
2,714 challenges on wind
lanterns. Inpower
termsdevelopment:
of the RPPs

contribution to the electrification goals, the Table 23 shows the list of potential solar power Implementation of policy mechanisms and
Update
estimated number the Nofational
householdsWind Database;
served using resources with a total capacity of about 284.1 benefits stipulated under the RE Law; and,
Develop/upgrade
decentralized systems by capacity
the end for wind
of the project resource MW. The detailed list of potential solar power Conduct of IEC to promote awareness on
was 19,453. analysis;
Said figures included both the resource appears as Annex H. The large portion the benefits of solar power.
current 18,003
Continue HH the
with conduct
solar PV systems andresource
of wind the of potential solar power resource, about 81.0
1,450HHassessment
connections served by
(on-shore and mini-grid system
off-shore); percent, is found in Luzon.
Wind turbines take up less space than the average power
in Rio-Tuba QTPtechnical
Project.services
With the
E. OCEAN THERMAL ENERGY
station. Provide to dinclusion
evelopers; of
public facilities, the projects cumulative
Conduct RD&D on Smart Grid technology; total Development Challenges CONVERSION (OTEC)
PlansRE
other andresource,
Programs the advancement of wind connections by the end of 2011 is 21,755. 53
Conduct market study on the local The following challenges are deemed barrier to
energy depends on the continuing conduct of manufacturing of Balance-of System of Wind Performance Assessment
The following
RD&D measures
and application of mare expected
odern to address
technology. On the other hand, the DOE conducted Rapid the development of solar power:
the challenges on wind power development: Turbine Systems; and
Rural Appraisal (RRA) activity under the OTEC is an energy technology that uses
Along with the lined-up programs and activities, Conduct
Household IEC activities
Electrification Project for the
(HEP). development
This Availability of solar energy depends on the
weather condition as such, solar energy is the oceans natural thermal gradient to
government
Update thepolicy National and
Windinterventions
Database; are and i mplementation
resulted in the identification of 6,460 householdso f w ind e nergy.
an intermittent source of power. drive a power-producing cycle (www.nrel.
necessary to boost the development and qualified as beneficiaries of photovoltaic solar
home gov). Although this technology may not be
generation of wind power.
Develop/upgrade capacity For for
wind
wind generation,
resource E. systems
SOLAR installations.
Solar power system usually uses PV commercially and immediately available as
the analysis;
ERC approved FiT rate is Ph8.53 per kWh.
However, this does not apply on generation for
Meanwhile, the 1-MW power plant in Northern technology, which has high upfront cost. the source of energy in the country, still the
own use. Performance Assessment
Mindanao continued to provide power to the government has taken initial steps for its long-
Continue the conduct of wind resource
consumers of the Cagayan de Oro Electric Power Large land area requirement.
term development and use.
assessment (on-shore and off-shore); The DOE in collaboration with the DBP Table 23. SOLAR POWER POTENTIAL RESOURCE
Development Challenges and Light Company (CEPALCO) in the region.
On implemented
the other hand, the DOE
the Rural Power conducted
Project (RPP) Rapid with
Need for additional RD&D as well as capacity Preliminary study showed that the country
Provide technical services to developers; Rural A ppraisal ( RRA) a ctivity u nder t
funding support from the World Bank and Global he H ousehold Region Capacity (MW)
Concerns over the expanded development of wind Measurable Sectoral Targets building on other technologies such as the has a good potential of ocean energy resource.
Electrification
Environment Program (HEP).
Facility (GEF). This
The resulted
project in the
promoted I 50.00
energy involve not only the government but also Concentrating Solar Thermal Power and solar However, it would require a detailed assessment
Conduct identification
the use of of 6,460 households
sustainable and least-cost qualified as
decentralized
potential RD&D on Smart Grid technology; III 63.00
the investors. Policy and program An indicative thermal
115.05cooling/heating technology. to determine the potential capacity that could
beneficiaries
electrification of capacity
photovoltaic addition
solutions solar of
using 35 systems
home
renewable MW energy is IV A
mechanisms need to be put in place to achieve the be generated from OTEC. To date, there are
expected
installations.
through from solar power partnerships.
public-private by 2015. The Darong As of the IV B 2.00
Conduct
objective market study
of harnessing on thenatural
the countrys local
Solar
end Photovoltaic
of 2011, there Power Project
were about in20,305 Sta. Cruz, units PV Luzon Plans and
230.05 Programs three (3) OTEC pre-development contracts
manufacturing of Balance-of System of
resources. The following are challenges on wind Wind
Meanwhile,
Davao del Sur
installed the
was 1-MW
under the power
awarded plant
RPP. with in Northern
It is Solar
broken Energy down to VI 30.00 covering 36 areas signed and awarded by the
power Turbine Systems; and
development:
Mindanao
Service 15,289 Contract continued
solar (SESC) to byprovide
home the DOEpower
systems, in December
2,302 to the PV-
solar VII The government is optimistic that the following DOE. The government is optimistic of installing
2.00

consumers
supported of the
2011 and already submitted the Declaration Cagayan
public de
facilities Oro Electric
and Power
2,714 solar Visayas
measures32.00 will address the challenges: and demonstrating ocean facility within the
High
Conduct cost IEC
of development
activities forto the include limited
development and L ight C ompany
lanterns. In terms
of Commerciality. ( CEPALCO)
With of tthe i n t
he Rinstallationhe r egion.
PPs contribution
of said to the X 20.00
planning period.
local manufacturers,
and implementation of wind energy. fabricators and suppliers
electrification goals, the estimated number of XIII
Conduct
2.00
continuing RD&D for viable
of RE equipment and components; Mindanao 22.00
households served using decentralized systems by solar energy systems to be commercially Measurable Sectoral Targets
Limited options to optimize the development
E. of SOLAR
resources due to lack of updated database; the end of the project was 19,453. Said figures
Total Philippines 284.05
competitive with conventional energy system;
included both the current 18,003 HH with solar PV Development Challenges For the planning period, the government has
Need to enhance local technical capability; Table 23. SOLAR POWER POTENTIAL RESOURCE
Performance Assessment systems and the 1,450HH connections served by identified potential sites for ocean energy
Limited information and education campaign mini-grid system in Rio-Tuba QTP Project. With The following challenges are deemed Region Capacity (MW)
barrier to development. It consists of 910 blocks
activities on RE to include advocacy on its the inclusion of public facilities, the projects the development of solar power: IIII 50.00
The DOE in collaboration with the DBP 63.00 equivalent to 73,710 hectares. Table 24 shows
benefits; and,
implemented the Rural Power Project (RPP) cumulative total connections by the end of 2011 is IV A 115.05 the list of potential ocean energy projects with
withFinancial
fundingand technical
support from access
the to new Bank
World and 21,755.52 IV B 2.00
Availability of solar energy depends on the total estimated capacity of 70.5 MW. The
Luzon 230.05
andemerging echnologies. Facility (GEF). The
Global tEnvironment weather condition as such, solar energy is an
VI 30.00 detailed list of ocean potential resource is
project promoted the use of sustainable and 52
Source RPP Progress Report 4Q 2011 intermittent s ource o f p ower; VII 2.00 shown as Annex I. These long-term projects
least-cost decentralized electrification solutions Solar power system Visayas
usually
X
uses PV 32.00
20.00 would require exploration studies with support
Owners of solar home system in urban areas can register for technology, which has high upfront
using renewable energy through public-private XIII cost; 2.00 from foreign and local stakeholders. Initially, a
PHILIPPINE ENERGY PLAN 2012-2030 net metering 66 Large land area requirement;
Mindanao and, 22.00
partnerships. As of the end of 2011, there were 10-MW ocean energy demonstration project in
Source RPP Progress Report 4Q 2011
53 Need for additional RD&D as well as capacity
Total Philippines 284.05
Measurable Sectoral Targets building on other technologies such as the
Concentrating Solar Thermal Power and solar
An indicative capacity addition of 35 MW is thermal cooling/heating technology.
expected from solar power by 2015. The Darong
Solar Photovoltaic Power Project in Sta. Cruz, Plans and Programs
Pangasinan, which will be initiated by a private Establish cooperation with local and IV. DOWNSTREAM SECTOR DEVELOPMENT
company, is envisioned by the DOE in 2015. international institutions for the
development and commercialization of
Development Challenges ocean technology. Oil Industry Deregulation
OTEC is at an early stage but the government The DOE, by virtue of R.A. 8479 or Downstream the operations of Pilipinas Shell and Chevron.
has to start somewhere and hurdle the following Table 24. OCEAN POWER POTENTIAL RESOURCE Oil Industry Deregulation Act of 1998 is Both Shell and Chevron use the FPIC pipeline to
challenges to realize its objectives: mandated to ensure adequate, stable supply, and replenish stocks from their Batangas refinery/
Region Capacity (MW)
II 5.00
fair price of oil products in the country. Being terminal to Pandacan depots. Temporary shortage
Need for infrastructure support such as III 10.00 largely dependent on imported oil particularly of petroleum products was felt in some gasoline
transmission line and submarine cable IV A 2.00 for transport sector use, the country is affected stations in Metro Manila and nearby provinces.
IV B 3.50
V 15.00
by any supply disruption and oil price movement.
Need to engage local and international Luzon 35.50 The Supreme Court likewise issued a Writ of
institutions for the development of OTEC VI 3.50 Performance Assessment Kalikasan in November 2010, ordering the
VIII 7.50
Visayas 11.00
closure of the pipeline because of its potential
Need to intensify RD&D on ocean technology XII 1.00 The downstream oil industry has steadily hazard to the environment.
XIII 15.00 grown with the continuous entry of investors
ARMM 8.00
Need to establish database on ocean energy Mindanao 24.00
in the country. The total industry players as of To address and monitor the situation, the
resources Total 70.50 2011 reached 1,186. This resulted in additional DOE Command Center was activated to direct
investments of about PhP 300.00 million and coordinate operations, provide advisories
Need to develop local capabilities bringing total capital infusion of PhP 38.05 to media and the general public on oil supply
billion since the start of deregulation (Table 25). status and oversee the implementation of the oil
Need to conduct IEC campaing activities on industry business continuity plan.
Table 25. TOTAL NO. OF NEW PLAYERS PER
OTEC ACTIVITY, 2011
To help affected oil companies, the DOE
Activity No. of New Players
High cost for exploration and development requested the MMDA to lift the truck ban in
Liquid Fuel Bulk and Marketing 126
LPG Bulk Marketing 12 areas under its jurisdiction in Metro Manila,
Plans and Programs Liquid Fuel Retail Marketing* 1,019 specifically for petroleum tank trucks, to
Bunkering 20
Terminalling 9 increase the turnaround of existing fleets
The following initiatives are seen as take off Total 1,186
delivering petroleum products.
points for ocean energy development: **Includes 261 independent gas stations
The DOE also intensified its monitoring activities
Conduct RD&D activities for OTEC; SUPPLY to ensure availability of supply of petroleum
products by requiring oil companies to submit
Encourage private sector participation Inventory. Actual crudes and petroleum daily inventory reports, as well as the inspection
through effective implementation of the products as of 2011 was recorded at 13.2 MMB of several gasoline stations, particularly in the
RE Law, specifically on the benefits of the or 42-days supply equivalent (34 days for crude Metro Manila area.
proponents; oil and products in stock and nine (9) days for
crude in-transit to the country). This was 4.7 To date, FPIC continues to conduct remediation
Pursue capacity development of local percent lower than the previous years level operations in Barangay Bangkal, West
expertise; of 13.8 MMB. On the other hand, 2011 average Tower rehabilitation, health and community
inventory was reported at 50 days, 39 days in engagements, and regularly submits progress
Inclusion of infrastructure support stock and 11 days in-transit. For the first half of report to the DOE.
(transmission line and submarine cable) 2012, the average inventory was equivalent to
in TDP; 49 days, 39 days in stock and 10 days in transit. With strong collaboration and the foregoing
measures adopted by both the oil companies
Promote the use and commercialization Meanwhile, the shutdown of the First Philippine and the government, oil supply in Metro Manila
of ocean energy projects, e.g. OTEC, wave, Industrial Corporations (FPIC) White Oil and nearby provinces has been adequately
marine and tidal; and, Pipeline (WOPL) in late October 2010 affected addressed.

In cases where domestic and international 2011 represented 76.1 percent of the overall import rose by 36.4 percent. The major players Refinery Production. The countrys maximum
events threaten or restrict the countrys supply crude mix. Meanwhile, crude from the ASEAN (Petron, Chevron and Shell) accounted for 41.0 working crude distillation capacity is 275
of petroleum, D.C. 2011-03-0002 was issued region, such as Malaysia, Indonesia, Brunei and percent of the total import volume but with a thousand barrels per stream day (MBSD).
to ensure continuous supply of petroleum. Singapore, with a volume of 2.2 MMB supplied 3.1 decrease of 29.5 percent from 2010 level of 26.8
The Circular specifically requires: a) all oil percent of the mix. The remaining 20.8 percent MMB to 18.9 MMB. The other industry players Total crude oil processed in 2011 increased
companies, except refiners, operating in the was sourced from Other Asia, specifically from import volume, accounted for the remaining by 5.1 percent from 65.9 MMB in 2010 to 69.3
country and bulk suppliers to maintain a Russia. 59.0 percent. MMB. Vis--vis last year, the reported refinery
minimum inventory equivalent to 15 days supply utilization also improved from 65.0 percent
Table 27. TOTAL PETROLEUM PRODUCTS IMPORTS (in MMB)
of petroleum products, except LPG which shall Saudi Arabia remained the top exporter of crude to 69.1 percent in 2011.
Fuel 2010 2011 % Change
be maintained at seven (7) days supply; and b) into the country supplying about 44.2 percent of
refiners shall maintain a minimum inventory the total crude requirements in 2011, followed Diesel 22.37 18.37 (17.88) Consequently, local petroleum refinery
IFO/Fuel Oil 5.66 2.29 (59.54)
equivalent to 30 days supply consisting of crude by UAE and Iran with 21.2 and 8.4 percent share, Avturbo 3.52 4.80 36.36 production output also grew by 5.9 percent
oil and refined petroleum products. respectively. Malaysia contributed 3.0 percent Gasoline 12.58 11.15 (11.37) from 2010 level of 63.6 MMB to 67.4 MMB.
Kerosene 0.29 0.25 (13.79)
share while Other Asia (Russia) with about 20.8 LPG 8.76 8.39 (4.22) Average refining output in 2011 was at
Meanwhile, to promote efficiency in supply percent share (Table 26). Others* 1.44 0.82 43.06) 184.6 MB per day.
and distribution chain, Section 9 of the IRR of Total 54.61 46.07 (15.65)
R.A. 8479 mandates that the DOE shall **Includes alkalyte, asphalts, condensate
Diesel oil and fuel oil continued to dominate
Table 26. TOTAL CRUDE OIL IMPORTS (in MB)
continue to encourage joint industry the production mix with shares of 37.4 and
activities to include: Country of
2010
%
2011
% % Meanwhile, local refineries (Petron and 19.6 percent, respectively. Unleaded gasoline
Origin share share change
Pilipinas Shell) accounted for 18.5 percent of followed next at 19.0 percent share, kerosene/
Borrow-and-loan agreements,
Middle East 54,232.60 81.22 52,955.09 76.07 (2.36) the total product imports, while 81.5 percent avturbo and LPG got 10.2 and 6.7 percent share,
Saudi Arabia 30,358.85 45.46 30,794.80 44.24 1.44
Rationalized depots and was attributed to direct importers. respectively.
Iran 819.00 1.23 5,873.97 8.44 617.21
manufacturing operations, Iraq - - - -
Hospitality agreements, UAE 18,087.88 27.09 14,729.51 21.16 (18.57) Product import mix was comprised mostly of Production of all petroleum products posted
Qatar 4,273.23 6.40 1,550.62 2.23 (63.71)
Joint tanker and pipeline diesel oil at 39.9 percent, unleaded gasoline at increases vis--vis refinery output in 2011
Oman 692.65 1.04 6.19 0.01 (99.11)
utilization, and 24.2 percent, LPG at 18.2 percent, kerosene/ except keresone/avturbo which recorded a
ASEAN Region 7,159.96 10.72 2,182.68 3.14 (69.52)
Joint actions on oil spill control avturbo at 11.0 percent, fuel oil at 5.0 percent, decrease of 4.5 percent. Unleaded gasoline
Malaysia 6,864.38 10.28 2,101.84 3.02 (69.38)
and fire prevention. Indonesia - - - - and other products at 1.8 percent. refinery output recorded the largest increase
-
Brunei 295.58 0.44 -
0.12
of 12.2 percent, followed by diesel oil with a
Singapore - - 80.83
In this light, the DOE continuously Other Asia 5,382.59 8.06 14,476.86 20.80 168.96 Total gasoline import reached 45.7 percent of 9.8 percent growth. Likewise, LPG and fuel oil
monitors the existing joint and Grand Total 66,774.15 100 69,614.62 100
gasoline demand, while diesel oil import was refinery output also rose by 6.8 and 2.3 percent,
rationalized operation of depots of Shell, 41.2 percent of diesel demand. On the other respectively.
*Total Crude Imports do not include local crude oil (Matinloc and Nido) being
Caltex and Petron. Since construction utilized by the local refiners. hand, LPG import was 66.5 percent of LPG
and operation of oil depots incur demand. Overall, total product import was 43.3 As of the first half of 2012, local petroleum
huge amount of investments, the government During the first half of 2012, total crude oil percent of total products demand. refinery production output fell by 16.3 percent
encourages oil players to practice the joint importation already reached 36.5 MMB. from 33.8 MMB (first half 2011) to 28.2 MMB
industry activity to remain competitive in terms The Biofuels Act of 2006 mandated the use with an average refinery output of 155.4 MB per
of fuel pricing. Relatedly, the DOE issued D.C. No Petroleum Product Importation. Full year 2011 of bioethanol blend for gasoline. However, day.
2011-03-0003 on 02 March 2011 enjoining oil import volume of finished products was down considering that the current local ethanol
companies to engage in mutual product supply by 15.7 percent from 54.6 MMB of previous production is not sufficient, a total of 877 MB PETROLEUM PRODUCT DEMAND
accommodations and similar industry practices years level to 46.1 MMB, which was partly due and 711 MB of bioethanol were imported in
to stabilize oil supply. to increased local refinery production output. 2010 and 2011, respectively. Currently, the The countrys total demand of petroleum
Philippine National Standards (PNS/DOE) QS products for 2011 registered a decrease of 4.9
Crude Oil Importation. The countrys crude Fuel oil import recorded the biggest drop of 008:2009 for e-Gasoline specified 10.0 percent percent from 111.8 MMB a year ago to 106.3
imports grew by 69.6 MMB in 2011 from 2010 59.5 percent compared to 2010 level. Diesel ethanol content as the existing standard for fuel. MMB. This can be translated to an average
level of 66.8 MMB despite the maintenance oil, unleaded gasoline, kerosene and LPG fell by As of first half of 2012, total petroleum product daily requirement of 291.3 MB. Compared with
shutdown conducted by the local refineries. 17.9 percent, 11.4 percent, 13.8 percent and 4.2 importation already stood at 28.8 MMB. On the 2010 demand, fuel oil recorded the largest
Total Middle East crudes of 53.0 MMB in percent, respectively. On the other hand, avturbo other hand, ethanol importation was recorded decrease of 29.8 percent in the total demand
at 0.7 MMB for the same period. and almost 33.0 percent drop in the industrial

products for 2011 registered a decrease of 4.9
percent from 111.8 MMB a year ago to 106.3 consumption reached 17.0 MMB or 16.0 percent,
MMB. This can be translated to an average daily while Mindanao had 13.7 MMB or 13.8 percent.
requirement of 291.3 MB. Compared with 2010 Visayas was the least consuming region with a
demand, fuel oil recorded the largest decrease of total consumption of 13.5 MMB or 12.6 percent.
29.8 percent in the total demand and almost 33.0
trade demand. The decline can be attributed
percent drop in the industrial trade demand. The Figure 43. OIL CONSUMPTION BY REGION, 2011 As of first half of 2012, petroleum exports fell players. Luzon has the most number of gasoline
Figure 26. OIL CONSUMPTION BY REGION, 2011
todecline can be attributed to the shutdown of the
the shutdown of the Manila-Batangas by 41.6 percent from 7.7 MMB (first half of stations among the major islands (Table 30).
Manila-Batangas
Black Oil PipelineBlack in theOil last Pipeline
quarter in ofthe
2010 last Mindanao
2011) to 4.5 MMB. This may be attributed to the
13.72%
quarter
which of 2010
resulted which resulted
in difficulty transporting in difficulty
black Visayas
NCR refiners shutdown of refineries for turnaround As of 2011, the country has a total of 144 depots
39.92%
transporting black product
product to industrial trade clients. Demand of to industrial trade 12.64% schedule. with a total storage capacity of 30.5 MMB
clients.
diesel oil and
Demand
unleaded of gasoline
diesel oil wasand
also unleaded
down (Table 31). Of the total capacity, 15.2 MMB or
gasoline was also down
a bit by 1.1 and 1.0 percent, respectively. a bit by 1.1 and On1.0 Table 29. PETROLEUM PRODUCT EXPORTS (in MMB)
49.8 percent is the combined refinery capacity
percent, respectively. On the other hand,
the other hand, demand of kerosene decreased of Petron and Pilipinas Shell located in Bataan
demand of kerosene decreased by 10.2 percent, South Luzon
Products 2010 2011
by 10.2 percent, while LPG slightly increased 17.73% Kerosene 0.10 0.05 and Batangas, respectively.
while LPG slightly increased by 0.6 percent.
by 0.6 percent. Gasoil/Diesel 0.13 0.26
North Luzon
15.98% IFO/Fuel Oil 1.59 3.52 The remaining 14.1 percent or 4.3 MMB
Table ___ Table 28. TOTAL INDUSTRY PETROLEUM PRODUCTS
DEMAND, DOMESTIC AND INTERNATIONAL* LPG 0.02 0.07 capacity of total depot is comprised of storage
DEMAND
Table 28 Table (in MMB)
28. TOTAL INDUSTRY PETROLEUM PRODUCTS
percent. Visayas was the least consuming
Naptha 2.21 1.76 facilities of Petron, Shell and Chevron (with
Products DEMAND,
2010 DOMESTIC 2011 AND%INTERNATIONAL*
Change
Gasoline DEMAND 24.64 (in MMB) 24.40 (0.99)
For the first
region withhalf
a totalof 2012, total demand
consumption of 13.5of
Reformate 0.19 0.27
aggregate capacity of 2.4 MMB) and other oil
Kerosene 1.16 1.04 (10.18) petroleum
MMB orproducts
12.6 percent. already reached 58.5 MMB, Mixed Xylene 0.96 0.90
players (1.9 MMB). Meanwhile, import/export
Toluene 0.63 0.50
Avturbo*
Products
Diesel Oil
2010 9.62
45.05
10.28
2011
44.55
6.94
% Change
(1.12)
translating to an average daily requirement of terminals for the whole country have a total
Benzene 0.23 0.21
IFO/Fuel Oil 17.90 12.57 (29.79) (0.99) 321.7 M B. capacity of 10.9 MMB or 35.7 percent of the
Gasoline
LPG
24.64
12.55
24.40
12.62 0.62 (10.18)
For the first half of 2012, total demand Condensate 4.90 5.24
Kerosene 1.16 1.04
Others**
Avturbo* 0.89
9.62 0.85
10.28 (4.15) 6.94 of petroleum products already reached Propylene 1.09 0.71
total countrys storage capacity.
Diesel Total 111.81 106.32 (4.91) (1.12)PETROLEUM PRODUCT EXPORTS
Oil
Note: * Refers
45.05 44.55 58.5 MMB, translating to an average daily Total 12.05 13.49
IFO/Fuel Oil to jet fuel used17.90
for international
12.57transport (29.79)
LPG **Include asphalts, solvents,
12.55avgas and toluene requirement of 321.7 MB.
Others** 0.89
12.62
0.85
0.62
(4.15)
Total petroleum products exported increased by
Table 30. NUMBER OF GASOLINE STATIONS, as of December 2011
12.0 percent in 2011 from 12.1 MMB in 2010 to
PETROLEUM PRODUCT COMPETITION
Diesel
Total oil obtained the largest
111.81 106.32 share of 41.9 (4.91)13.5 MMB. On a per product EXPORTS
basis, fuel oil Region Majors New Players Independent Total industry
percent in the total sales mix, trailed by unleaded recorded the largest growth of 121.4 percent vis-
gasoline,
Note: * Refersfuel oil, used
to jet fuel LPG and kerosene/avturbo
for international transport Total petroleum products exported
at -vis 2010 level. Condensate exports also rose by The major oil companies (Petron Luzon 1,874 526 245 2,645
**Include asphalts, solvents, avgas and toluene
23.0, 11.8, 11.9 and 10.7 percent, respectively. 6.9 increased
percent. by 12.0
On the percent in 2011
other hand, fromof
export Corp., Chevron Phils. and Pilipinas Visayas 624 36 9 669
Diesel oil obtained the largest share of 41.9 12.1 MMB in 2010
propylene, naptha to and
13.5toluene
MMB. On a per product
declined by 34.9, Shell Petroleum Corporation) Mindanao 597 196 7 800
As of in
percent first
thesemester
total salesof mix,2012,
trailed total petroleum basis,
by unleaded fuel oil recorded the largest growth
20.4 and 20.6 respectively. A total of 0.3 MMB ofof captured 68.1 percent market Total 3,095 758 261 4,114
demand already reached
gasoline, fuel oil, LPG and kerosene/avturbo at 121.4 58.5 MMB. Compared percent
Diesel, vis--vis
0.1 MMB 2010 level.
of kerosene Condensate
and 0.1 MMB LPG share. On the other hand, market
with 11.8,
23.0, first 11.9half and
of 10.7
2011, percent,
all products recorded exports
respectively. were aalso rose by d6.9
lso exported percent.
uring On the
the period. other share of the other players which Table 31. TOTAL STORAGE CAPACITY, 2011
hand, export of propylene, naptha and toluene include Petroleum Authority of Thailand Depots Number Capacity (MMB)
As of first semester of 2012, total petroleum declined by 34.9, 20.4 and 20.6 respectively. A Philippine Corp. (PTTPC), Total Phils., Seaoil Storage Facilities
PHILIPPINE
demand already ENERGYreached PLAN 58.52012-2030
MMB. Compared total of 0.3 MMB of Diesel, 0.1 MMB of kerosene 73 Corp., TWA, Inc, Filpride Resources, Phoenix Majors 39 2.41
with first half of 2011, all products recorded and 0.1 MMB LPG were also exported during the Petroleum Liquigaz, Petronas, Prycegas, Micro Others 59 1.93
increases except fuel oil and LPG which dropped period. Dragon, Unioil, Isla LPG Corp. and Jetti, as well Total 98 4.34
by 36.5 and 0.5 percent, respectively. On the as the end users who directly import part of Import/Export Terminals
other hand, demand of kerosene/avturbo rose The total export mix comprised of condensate their requirements, acquired 31.9 percent of the Majors 15 4.30
by 15.4 percent, while unleaded gasoline and (38.8 percent); fuel oil (26.1 percent); naphtha market. Others 29 6.64
diesel oil increased by 2.6 and 2.1 percent, (13.0 percent); mixed xylene (6.7 percent); Total 44 10.94
Refinery (Crudes & Product)
respectively. propylene (5.3 percent); toluene (3.7 percent); Meanwhile, the local refiners (Petron Corp.
reformate (2.0 percent); diesel oil (1.9 percent); and Pilipinas Shell) captured 58.4 percent of Petron-Limay, Bataan 1 10.01
Figure 43 shows the demand for oil per major and benzene (1.6 percent). the total market demand, while the remaining Shell-Tabangao, Batangas 1 5.22
Total 2 15.23
regional distribution in 2011. The National 41.6 percent was credited to direct importers/
Total Storage 144* 30.52
Capital Region was the largest consumer with a The oil majors accounted for 61.0 percent of the distributors.
total consumption of 42.7 MMB or 39.9 percent total export mix while the condensate exports *Previously a total of 160 but non-operational depots and
import/export terminals were excluded
share followed by South Luzon with 18.9 MMB of SPEX accounted for the remaining 39.0 In terms of dealership, the oil majors accounted
or 17.7 percent share. Meanwhile, North percent. Meanwhile, a total of 2,447.0 MB crude for 75.2 percent of the total number of gasoline Luzon has the most number of depots (including
Luzons consumption reached 17.0 MMB or 16.0 oil (Palawan Light) was exported to various stations in the country in 2011, while the import/export terminals) with 73 facilities
percent, while Mindanao had 13.7 MMB or 13.7 countries during the period. remaining was provided by new and independent equivalent to 11.5 MMB followed by Visayas

with 36 depots or a total of 1.9 MMB and LPP and several proposed policy guidelines that stable supply of petroleum and other energy addresses unreasonable rise in prices pursuant
Mindanao with 33 depots or equivalent to 1.9 intend to improve and further strengthen the sources in the country; to paragraph (d) of Section 14 of R.A. 8479. Any
MMB (Table 32). monitoring capability of the DOE. report of an unreasonable rise in the prices
D.C. 2011-03-0004 signed on 15 March of petroleum products shall be immediately
Table 32. DEPOT AND STORAGE CAPACITY BY MAJOR
ISLANDS (in MMB), 2011
In order to harmonize the various laws, existing 2011 enjoining strict compliance of the acted upon. For this purpose, the Task Force
Capacity rules and regulations and issuances governing downstream oil industry participants to is mandated to determine within 30 days the
Number of Depots
the LPG industry, a D.C. was drafted for the reportorial requirements of RA No. merits of the report and initiate the necessary
Luzon 73 11.48 household LPG titled LPG Retail Rules. The 8479 and other related issuances. It further actions warranted under the circumstance.
Visayas 36 1.88
circular would serve as the framework for the requires all oil companies to submit a weekly
Mindanao 33 1.92
Total 142 15.28
LPG sector that further encourages the industry inventory of their supply; and, Following the signing of E.O. 850 in compliance
players to observe and implement good business to the ASEAN Free Trade Area (AFTA)/ASEAN
To promote retail competition, the DOE has practices. Similar with other laws and circulars, E.O. No. 32 signed on 01 April, 2011 Trade in Goods Agreement (ATIGA), the DOE
amended the guidelines to improve the program violations that are detrimental to the interest of instituting the Public Transport Assistance pursued the elimination of tariff rates for crude
and enhance availment facility of the Gasoline both players and consumers would be penalized Program (PTAP) or Pantawid Pasada and petroleum products regardless of source.
Station Lending and Financial Assistance accordingly. Program to provide assistance to the public This is to eliminate negative tariff differential
Program (GSLFAP) of the DOE. The GSLFAP transport sector and to cushion the impact for crude oil and finished products with the
extends financial assistance in the form of PRICE of high fuel prices and the resulting effects implementation of E.O. 850, whereby the raw
medium- to long-term loans with low interest on the public transport sector, the riding material would have a higher tariff of 3.0 percent,
rates to prospective industry participants. Political unrest in the Middle East and North public and consuming public. since crude oil is sourced mostly from the Middle
Africa since late part of 2010 contributed to East, than the finished products, which are
LPG higher oil prices and added instability to energy Per E.O. 32, the PTAP shall partially subsidize usually sourced from the ASEAN region. This
markets. Supply disruptions and early fears on the average consumption of the identified has resulted in the signing and implementation
In 2011, Petron and Pilipinas Shell captured the possible spread of unrest to major exporters public transport group. The program was of E.O. 890 (Modifying the nomenclature and
combined LPG market shares of about 56.0 have pushed prices higher, consequently implemented in close coordination with Land the rates of import duty on crude oil, petroleum
percent, while the other players obtained 44.0 resulting to negative impacts on the economies Transportation Franchising and Regulatory products and asphalt under Section 104 of the
percent. Among the other LPG players, Liquigaz of oil importing countries like the Philippines. Board and Land Transportation Office Tariff and Customs Code of 1978 (P.D. 1464),
got the biggest market share with a 26.4 percent As safety nets, the government issued the through the Department of Transportation which took effect in July 2010.
share, followed by Total Petroleum with 6.7 following policy directives: and Communication, Armed Forces of the
percent share. Philippines, and the local government units In the absence of a pricing formula, the DOE
D.C. 2011-03-0002 issued on 28 February through the Department of Interior and continued with the use of the Automatic Pricing
For the first half of 2012, Petrons market share 2011 requiring all oil companies and bulk Local Government. Mechanism (APM) of then Energy Regulatory
was 40.0 percent, while other players obtained suppliers operating in the country to increase Board (ERB) as a guide in its assessment. With
60.0 percent with Liquigaz having the highest their Minimum Inventory Requirement Further, the oil companies, in collaboration with this, the peso landed cost of bringing in the
share of 25.0 percent, Isla Gas with 18.0 percent (MIR) from seven (7) days inventory the DOE, continued to offer price discounts on finished oil products to the domestic market is
and Total Petroleum with 5.0 percent. In January equivalent to 15 days for all oil companies diesel fuel being sold in participating gasoline compared on a week-on-week basis using the
2012, Pilipinas Shell sold its LPG ownership except refiners. On the other hand, refiners stations. The number of participating outlets price build-up.
to Isla Gas who is now distributing LPG in the in-country inventory equivalent of crude in 2011 already reached 608 from only 239
industry under the brand name Solane. and finished products has likewise been outlets in 2004, the first year of the projects While the original ERB formula was applied
increased from 15 days to 30 days. This is implementation. For the first half of 2012, there on a monthly basis, the present weekly timing
To empower consumers in making informed- to ensure continuous supply of oil in cases are about 779 participating gasoline stations was adopted starting 2009 upon consultation
choice on their purchase of petroleum products, where domestic and international events nationwide. by the DOE with both the oil industry players
the DOE embarked on an aggressive and strategic threaten or restrict the supply of the same and the consumers, including the transport
IEC campaign. Seminars/ briefings on LPG Safety in the country; In case of violations or abuse in the price of and industrial sectors. The objective of such
Practices and Liquid Petroleum Products (LPP) petroleum products, adequate safeguards application is to implement a more transparent
Retail Rules were likewise conducted in selected Administrative Order (A.O.) No. 6 issued on are provided under the law to ensure healthy and timely adjustment. Moreover, the weekly
areas nationwide. Discussions during the IECs 03 March 2011 organizing the Inter-agency competition and non-proliferation of cartels and timing considers the fact that products bought
were comprised of the industrys regulatory Energy Contingency Committee (IECC) monopolies in the industry. Among this is the last week from Singapore are likely the ones
framework, safety practices in handling LPG and to ensure the continuous, adequate and enhancement of the DOE-DOJ Task Force that being sold in the Philippine market this week.

It may be noted further that this formula The prevailing retail prices, as well as the levels of Table 34. TECHNICAL STANDARDS, 2010- 2011
does not consider costs beyond importation, adjustments effected by the oil players, are also
e.g. storage, handling, distribution/retailing, posted and updated every time the adjustments Title Highlights/Notes
logistics, as well as costs associated with the are implemented. The per company-based retail PNS/DOE ASTM D 910:2010
This standard is derived from ASTM D 910-07A Standard Specification for
biofuels program such as the cost of the biofuels prices in Metro Manila, Visayas and Mindanao Aviation Gasoline Grade 100LL
Aviation Gasoline and is limited only for Grade 100LL all other grades are
- bioethanol and biodiesel. are also presented in the DOE website. Formulated/Completed: 2010
excluded for the purpose of complying with the Clean Air Act of the Phils.
In January 2011, responding to public call for STANDARDS FORMULATION DPNS/DOE FS 6:2010 This standard describes good engineering practices, as well as safety
Storing and Handling of E-gasoline in Retail environment and fire protection requirements for storing and handling of
more transparency, the ERB formula was posted E-gasoline in retail outlet. This standard is an additional requirement that
in the DOE website along with other alternative The DOE, in coordination and consultation complements the PNS/FS 1 1-4:2005 (Retail Outlet Health, Safety and
Environment, Underground Storage Tank, Piping System and Dispensing
formulas suggested by different groups and with the oil companies, vehicle manufacturing Completed/Promulgated: 31 August 2010 Pump)
individuals considering the limitations on Mean industries and other government agencies,
PNS/DOE EF S 5:2010
of Platts Singapore (MOPS) data sharing. continuously undertakes standard-setting Storing and Handling of Coco-methyl ester This standard describes practices and requirements for the storing, handling
activities guided by international/regional (CME) and CME Blends in LPP Depot and fire protection of CME and CME diesel blends at Liquid Petroleum
Product Depots.
Meanwhile the DOE continuously monitors the standards and trends on fuel and fuel-related Completed/Promulgated: 14 March 2011
daily international prices such as Dubai, Brent products. Consultations are ongoing to establish
and West Texas Intermediate (WTI) for crude timelines by which the DOE, through the PNS/DOE FS 7:2011
This standard is a review and updating of PNS/DOE FS 1:2005 to allow
Storing and Handling of B5 in Retail Outlet
oil, and MOPS for petroleum products. For products standards-development process, can the transition from only conventional fuel petroleum products dispensed
in retail outlets. Said PNS provides the technical design and operational
monitoring purposes, adjustments in domestic start the introduction of EURO IV fuels into paramaters to be observed by oil companies to allow the introduction and
prices are estimated using two (2) reference the country from the current EURO II level. Completed/Promulgated: August 2011
use of up to B5.
benchmarks, i.e. Dubai for crude and MOPS for The agreed timelines would correspondingly
petroleum products incorporating the impact of trigger assessments in the type and scope of standards and regulations have been developed need to further strengthen, clarify, amend
foreign exchange adjustments. investments to be financed by the private sector and improved to complement current thrust on and/or repeal existing rules and regulations
in the petroleum industry and in the vehicle alternative fuels, as well as conventional fuels. governing the importation and exportation of
Based on available data, the Philippines enjoys manufacturing sector. EURO IV will be introduced As such, a fuel quality standards roadmap is petroleum products. With the issuance of the
the second to the lowest fuel prices among in 2016. This continuing development towards being proposed to be formulated to cover higher guidelines, only the DOE-accredited importers
non-oil exporting countries in the region, next cleaner fuels is given more impetus with the biofuels blends and other alternative fuels to be and exporters shall be allowed to engage in
to Thailand. Table 33 provides for comparative greater awareness on the cause and effect of introduced in the market within the planning such downstream oil activities. Likewise, only
prices showing Philippines highlighted Diesel climate change brought about by burning fossil period. accredited import terminals shall be allowed to
and Unleaded Gasoline prices per liter at PhP fuels. receive and store imported petroleum products.
44.90 and PhP 54.50, respectively. MONITORING AND ENFORCEMENT
In 2010 and 2011, the DOE in collaboration with Moreover, discussions with the oil companies
relevant government agencies established/ In line with the effective monitoring and have been initiated on the use of market dyes
Table 33. COMPARATIVE PRICES (in Peso/liter), updated several technical standards for enforcement of the rules on the LPP and LPG for tagging of petroleum sources and revenues.
as of 26 September 2012
products (QS) and facilities (FS) in support of industries, and in the spirit of transparency Discussions have also been led by the DOE on
Pump Price the downstream oil industry sector (Table 34). and good governance, the DOE prepared an how to curb smuggling at various points in the
Country
Diesel Unleaded Gasoline The existing standards in place include those Inspectors Manual in collaboration with the supply chain, including resource requirements.
Hongkong 66.55 93.14 for Coconut Methyl Ester-B100 (PNS/DOE QS Philippine Information Agency (PIA) with the The DOE is also actively participating in the
Australia 66.33 65.11 002:2007), Anhydrous Bioethanol Fuel-E100 objective of enhancing its inspection procedure. Inter-Agency Working Group on Oil Smuggling.
Singapore
New Zealand
54.74
53.09
72.08
76.39 (PNS/DOE QS 007:2005), Liquefied Petroleum Meanwhile, to address the increasing complaints
US (California) 48.29 45.71 Gases- LPG, (PNS/DOE QS 005:2005), Fuel Oils- on proliferation of unsafe and unlawful practices Development Challenges
Indonesia
China
47.96
55.08
43.78
58.84 Bunker (PNS/DOE QS 006:2005), Kerosene including smuggling of petroleum products, the
Philippines* 44.90 54.50 (PNS/DOE QS 09:2007), and Two-stroke (2T) DOE is closely working with other government As a result of nationwide consultations, the
Thailand 40.49 49.15
lubricating oil (PNS/DOE QS 003:2003). agencies such as the Bureau of Customs (BOC) following are the challenges identified by the
Malaysia 24.46 25.82
to put an end to the revenue losses due to DOE for the downstream oil industry sector:
* Philippines ranks third to the lowest next to Thailand and Further, with the inclusion of biofuels and other oil smuggling. In this context, Department
Malaysia for diesel oil price. Besides being oil producers,
clean fuels in the market as envisioned in the Circular on the Guidelines for Petroleum Need to ensure oil supply security through
these countries subsidize the prices of gasoline and diesel
thus with lower retail prices. Clean Air Act and the Biofuels Act, technical Products Importations and Exportations. Is the formulation of the oil contingency plan to
being proposed to specifically address the cushion impact of soaring price of petroleum

products, establishment of strategic oil over the country. The long distance and variety of said Program. With this, the DOE has amended the foreign countries, freeports, and economic
stockpile, provision of additional oil transportation modes used can pose challenges guidelines providing wider coverage on eligible zones, whether for trade or for his own use or
distribution infrastructure and expansion of for the refiners that must maintain strict product loan purposes, lowering of equity requirement requirement are required to file a notice with the
oil refineries. specifications. Degradation or contamination of and increase in loanable amount, among others. DOE prior to actual loading of every importation
the products in transit can result in costly re- indicating details and accompanying documents.
Need to promote transparency in oil processing at the delivery point. Thus, adequate Meanwhile, the DOE will continue to monitor Failure to comply with this rule, the industry
prices and review of oil price formulas and distribution infrastructures must be put in place the activities of industry players as part of its player will be penalized in accordance with the
methodologies to create public awareness to enable refiners to comply with environmental regulatory vigilance functions and ensure that provision of Section 26 of the IRR.
on oil pricing. regulations, which will result in cleaner and unscrupulous business practices are deterred. To
more stringent product characteristics. enhance consumer safety and welfare, monitoring H. Promote Transparency of Oil Prices
Need to strengthen public-private activities in the quantity and quality of LPP and
partnership and ensure industry players D. Expand / Upgrade Oil Refineries LPG being dispensed in the retail stations will be The promotion of transparency of oil prices in
adherence to standards, rules and heightened. a deregulated environment is crucial. The DOE
regulations. The country has limited refinery base and having no control over oil price movement shall
existing capacity making it highly susceptible F. Taxation Issues (Duty, Excise, VAT, Real monitor the prices in the market and determine
Plans and Programs to shortages in the supply of petroleum products. Estate Tax) its reasonableness. Likewise, the review and
Its susceptibility is further heigthened by the transparency of oil price methodologies is
A. Update Oil Supply Contingency Plan stringent fuel quality specifications required Issues on taxation particularly on imported raw imperative. Oil companies are requested to
by the Clean Air Act which make it difficult and locally refined petroleum products will be submit sample price build-up beyond the
The DOE shall update the oil supply contingency for refiners to meet the petroleum products clarified and resolved with the DOE and the landed cost of imports plus taxes and duties.
plan to incorporate some related emergency demand of the country. Thus, the government Department of Finance (DOF) working together These calculations are used to assess their price
preparedness mechanisms adopted by the IEA encourages investors to expand/upgrade new towards this end. components and bases of price adjustments.
member countries in the context of Philippine storage facilities and construct new refineries
situation. Among the strategies include to address this concern. Related concerns such as the growing clamor for To further promote transparency, it shall be
constant monitoring and forecasting of market the removal of 12.0 percent VAT on petroleum proposed that an Audit Committee be created to
developments together with regular reviews as Improve
E. Guidelines to Encourage products is seen to help lower the domestic inspect and audit the books of the members of
well as preparation and testing of emergency Competition prices. However, this translates to a billion peso the Petroleum Institute of the Philippines (PIP).
policies and procedures. It would also look at the loss of government revenues, which would in
short- and medium-term developments in the The government will continue to improve turn impact on vital projects and programs of I. Mitigate Impact of High Oil Prices
international oil market, world oil supply and the business climate through improvement the government. As such, the DOF position is
demand, refinery facilities, biofuels, inventory, of guidelines and the institution of sufficient to use/allocate the oil tax collection to specific The DOE will continue to find ways to mitigate
and price developments. regulatory safeguards, complemented and direct pro-poor programs. Coordination the impact of high oil prices to the general public.
by strong government monitoring and activities are being conducted by the DOE It shall continue to encourage oil companies to
B. Develop/Establish Strategic Oil Stockpile enforcement capability. These mechanisms together with DOF, Tariff Commission, BOC, and sustain the granting of discount on diesel to the
will be strengthened to ensure a fair return the NEDA on this initiative. public transport sector, as well as increase the
The DOE will take the lead in developing policies on investments and weed out unscrupulous number of participating retail stations. Priority
for the establishment of oil stockpiling program business practices. G. Strict Enforcement of Importation Rules measures seen to mitigate the impact of oil price
to protect the country from the economic hikes may include the following:
impacts of oil supply disruptions and sharp Pursuant to the provisions of R.A. 8479 and in Importation rules under the downstream oil
increases in oil prices. order to promote active and direct participation deregulation shall be strictly enforced. The law Provision of fuel discounts to transport
of the private sector in the retailing of petroleum requires any company or individual who wants workers and direct subsidy to vulnerable
C. Provide Additional Oil Distribution products, the GSLFAP has been established to engage in any activity in the downstream sectors;
infrastructure to provide credit assistance to new industry oil industry, to include importation of crude
participants who successfully completed the two- or petroleum products, to comply with the Deregulation of public land transport fares;
The need for additional oil distribution fold training program on skills and management requirements as stipulated in the IRR of the Oil and
infrastructure is crucial in transporting for the establishment and operation of a gasoline Deregulation Law, particularly the reportorial
petroleum products from the refineries, ports station. However, stringent loan qualifications and requirement. Players who shall import Institutionalization of the two-tier pricing
and large terminals to dispersing markets all conditions limit new entrants availment of the crude oil and/or petroleum products from system for diesel to provide a lower pump

price for the public transport sector. This requirements and other documents as embodied Natural Gas Industry The Asia-Pacific Economic Cooperation
approach would require the support from in the implementing rules and regulations of (APEC) Energy Policy Roundtable54 and the
the oil companies as well as clear guidelines R.A. 8479 shall be submitted online by the Development Joint Transportation and Energy Ministerial
from the DOE-DOF as to how to integrate industry players. Said proposal is intended to Conference55 in California, USA on 12-13
cross-product subsidies in their pump be linked in due time to DOFs Single Window Natural gas is an important component of the September 2011 provided an opportunity for
pricing. Program of the government. On the other hand, governments fuel diversification program the DOE to share the countrys plan to develop
the proposed creation of the anti-smuggling and considered as one of the most viable the required infrastructure to expand the
J. Minimize Economic Oil Leakage and task force intends to minimize, if not eradicate, alternatives to oil-based energy, particularly in utilization of natural gas or liquefied natural
Operationalize Marker Technology to smuggling activities in the country. To date, the the power generation, industrial processes and gas (LNG), which is globally known as a
Address Smuggling creation is still underway and the constitution transportation. strategic alternative clean fuel option. Given the
of the task force, as well as the scope of work, is important role of natural gas in attaining energy
The local cost of petroleum crude and still being worked on, among others. The launching of the Malampaya Gas-to-Power security as well as providing a clean alternative
products is affected by illegal activities like Project (MGPP) in 2001 catalyzed the birth of fuel for transport the government has all the
smuggling, pilferage and adulteration. Rampant K. Promoting Awareness on the Downstream the gas industry in the Philippines. Since then, reasons to fast track the establishment of a more
pilferage of fuels is caused by inefficiencies in Oil Industry Initiatives and Development natural gas has contributed significantly in the competitive and investor-friendly downstream
distribution chains both by sea-going and land- countrys primary energy supply and power natural gas industry in the country.
based tankers. This will likewise lead to fuel The DOE will continuously undertake IEC generation. The biggest challenge confronting
adulteration if the distribution is not properly campaign to empower consumers by providing the sector is the necessary infrastructure Performance Assessment
monitored. The priority actions proposed them with basic and necessary information on development that needs to be put in place
are: strict enforcement of rules on petroleum downstream oil industry activities, specifically to further promote and intensify the use of POLICY INITIATIVE
product distribution and use; installing of Global at the grassroots level or in the barangays. natural gas not only for power but also in non-
Positioning System trackers on sea-going and power applications. A number of concerns had To accelerate the development of the downstream
land-based oil tankers; and, institutionalizing Similarly, the DOE will continue its regular caused delay in infrastructure development natural gas industry, the government recognizes
a monitoring mechanism and product tracking meetings and consultations with the industry such as uncertainties in supply availability and the urgency to have a clear and comprehensive
system. players or stakeholders and jointly agree on sustainability, as well as the assurance of an policy regulatory framework as a requisite for
possible measures to address emerging oil- anchor market that would justify the required its development.
The DOE and the BOC are continuously related issues. investments.
coordinating in comparing the data/reports The proposed Natural Gas Bill aims to provide
submitted by oil companies. Accreditation of To address these challenges, the government a platform that would encourage investments
import terminals has also been proposed to has initiated various options and strategies for the required infrastructure, as well as in
curb oil smuggling. for the industrys expansion.. The declared the expansion of the countrys natural gas
additional supply of natural gas from supply base. In support of this objective, five
Meanwhile, the operationalization of the new Malampaya sparked renewed interest from (5) versions of the bill (pending from both the
marker technology is another scheme that will industry players and potential stakeholders. Senate and House of Representatives) titled
be implemented to curb rampant smuggling Further, the governments energy development Downstream Natural Gas Industry Development
in the oil industry. The current marker dye investment arm, the PNOC, has revived its effort Act were filed under the 15th Congress.
system can only detect adulteration. But the to pursue the implementation of the much
new marking technology is so efficient that awaited Batangas-to-Manila pipeline (BatMan Currently, the activities covering the
the source of the fuel product can be traced or 1). Several proposals from private companies implementation of downstream natural gas
detected, making it useful for the DOE in its anti- signifying interest to venture into business in industry are governed by DOE Circular No.
smuggling drive. different aspects of the gas value chain have also
54 The APEC Energy Policy Roundtable is a high-level policy
been received by the government. Meanwhile, discussion on energy security, structured to engage senior APEC
Another strategy to address concerns on unless new resources are discovered, natural officials and private sector executives on current pressing policy
concerns in the region.
smuggling is the proposed establishment of gas imports will be necessary to supplement 55 The APEC Transportation and Energy Ministerial Conference
online database by the DOE. All documents the production limits of the Malampaya gas field is a public-private dialogue that included leaders from the
private sector which focused on four (4) themes, (1) Vision for
necessary prior to the engagement in any in order to meet the projected demand coming Strengthening Transportations Role in Clean Energy Future; (2)
activity or business in the downstream industry from various potential markets of natural gas. Developing Energy Efficient Transportation Systems for Livable
Low-Carbon Communities; (3) Powering Low-Carbon Transport
such as application for importation, reportorial Electricity, Biofuels, and Natural Gas; and (4) Greening the Supply
Chain Energy Efficient Freight Transportation.

95-06-006 Policy Guidelines on the Overall As an industry development option, the DOE Apart from the power and transport sectors, the preferred option, as well as infrastructure
Development and Utilization of Natural Gas granted a Provisional Permit to Energy World natural gas is also being used by Pilipinas Shell development plan for natural gas distribution in
in the Philippines issued in 1995; and DOE Corporation Ltd. (EWCL) in January 2011. For Petroleum Corporations (PSPC) refinery for its Mindanao.
Circular Nos. 2002-07-004 Rules of Practice the construction of an LNG storage facility in on-site process energy requirements. In 2011,
and Procedure
House Before the DOE
of Representatives) titled 2002-08- Pagbilao,
andDownstream Purchase Quezon. Agreement (GSPA) between Forum the refinery consumed a total of 3.3 BSCF of Meanwhile, in June 2012, the DOE entered into
005 Interim
Natural Gas IRules
ndustry and Regulations
Development Governing
Act were filed Exploration, Inc. and DESCO, Inc. was signed natural gas and 1.2 BSCF for the first half of an agreement with PSPC for the conduct of a
theunder
Transmission,
the 15th Congress. Distribution and Supply of Earlier, an MOU
(January 2009) extension was the
to provide granted by thegas
necessary 2012. technical feasibility study on a Floating Storage
Natural Gas, both issued in 2002. DOE to a Korean
supply Consortium
for a 1.0 MW power composed plant in the ofarea. SouthSaid Regasification Unit (FSRU), to be placed in the
Currently, the activities covering the Korea power plant was commissioned
Engineering & Construction in February Company 2012. INFRASTRUCTURE DEVELOPMENT province of Batangas.
PRODUCTION
implementation AND of SUPPLY
downstream SECURITY natural gas Limited, Korea Western Power Company, and
industry are governed by DOE Circular No. 95-06- Archinet As an International
industry development Incorporated option, the DOE
in February The Terms of Reference (TOR) for the update of CAPACITY DEVELOPMENT
Policy Guidelines on the Overall
Gas production exhibited a 7.7 percent increase 2010 for the conduct of a feasibility study ofWorld
006 granted a Provisional Permit to Energy an the 2002 Master Plan Study for the Development
Development a nd U tilization o f N atural
from 130 BSCF of gas in 2010 to 140 BSCF in LNG underground storage and regasification G as i n t he Corporation Ltd. (EWCL) in January 2011. For the of the Natural Gas Industry in the country56 To create a sustainable development for
Philippines issued in 1995; and DOE Circular Nos. construction of an LNG storage facility in Pagbilao,
2011. Similarly, the gas condensate displayed a facility in Mariveles, Bataan. The pre-feasibility was signed on 30 March 2011 by the Japan the industry, particularly on providing the
2002-07-004 Rules of Practice and Procedure Quezon.
4.1 percent increase from 4.9 MMB in 2010 to study report for the LNG terminal and power International Cooperation Agency (JICA) and necessary technical skills and manpower in
Before the DOE and 2002-08-005 Interim Rules
5.1 MMB in 2011. The climb in production for project was submitted to the DOE in October the DOE. Likewise, as a complementary effort, the downstream natural gas industry, a joint
and Regulations Governing the Transmission, Earlier, an MOU extension was granted by the
both gas and condensate
Distribution and Supply was of dependent
Natural Gas, on the both 2010. DOE to a Korean Consortium composed of South World Bank (WB) also conducted a study on the undertaking with the Polytechnic University of
nominated volumes
issued in 2002. of gas needed by the three Korea Engineering & Construction Company feasibility of supplying natural gas in Mindanao. the Philippines (PUP) was initiated to establish
(3) natural gas-fired power plants in Luzon and MARKET Limited, DEVELOPMENT
Korea Western Power Company, and The study involved a review of current and the first Natural Gas Institute (NGI) in the
thePRODUCTION
refinery. ALikewise, the
ND SUPPLY SECURITY implementation Archinet International Incorporated in February existing LNG transportation, receiving, storage country. Said Institute is envisioned not only
of the scheduled preventive maintenance Currently, the conduct
2010 for the three of (3)a feasibility
natural study gas-fired of an and regasification approaches, and the analysis to provide the necessary capacity building
shutdown of theexhibited
Gas production Malampaya a 7.7 shallow water power
percent increase LNG plants
underground in Luzonstorage (1,200-MW Ilijan Gas-
and regasification of a suitable LNG terminal site in the region. requirement of the industry but also to make
from 130 had
platform BSCF alsoof gas affected
in 2010 to the 140 production.
BSCF in 2011. Fired facility
Power in Mariveles,
Plant, 1,000-MW Bataan. The Sta. pre-feasibility
Rita Gas- The WB study also revisited the identified LNG our local expertise globally competitive.
Similarly, production
Aggregate the gas condensate
from Malampaya displayed
gas fielda 4.1 Fired study Powerreport Plant,for the and LNG 500-MW terminal San and Lorenzo power sites in the Bataan peninsula. The final reports
percent increase from 4.9 MMB in 2010
already reached 1.1 trillion cubic feet (TCF), and Gas-Fired Power Plant) are the main market to 5.1 project was submitted to the DOE in October of the JICA and WB studies were completed Measurable Sectoral Targets
forMMB in 2011. The climb in production for both
the first semester of 2012, gas production of 2010. natural gas in the country. As of 2011, the and presented to DOE in March and June 2012,
gas
registered and atcondensate
72.6 BSCF, while was dependent
condensateon yield the power plants consumed a total of 133.22 BSCF respectively. The key to a successful establishment of
nominated volumes of gas needed by the three MARKET DEVELOPMENT
stood at 2.5 MMB. to generate 20,591 GWh of electric power. This the downstream natural gas industry is the
(3) natural gas-fired power plants in Luzon and
accounted for a 29.8 percent share to total gross Another complimentary study was conducted by development of the necessary infrastructure that
the refinery. Likewise, the implementation of the Currently, the three (3) natural gas-fired power
On the other hand, the Libertad Gas Field in generation nationwide. WB, titled Mindanao Natural Gas Development will facilitate the delivery of gas to the end-users
scheduled preventive maintenance shutdown of plants in Luzon (1,200-MW Ilijan Gas-Fired Power
Bogo,
the Libertad,
Malampaya Cebu, withwater
shallow an estimated platform reserve
had also Plant, 1,000-MW Sta. Rita Gas-Fired Power Plant, Strategy with the primary goal of determining as well as the availability of a sustainable supply of
of affected
about 0.6 the production. Aggregate available
BCF, has been made production Theand 500-MW San Lorenzo Gas-Fired Power Plant)
alternative application of natural gas in the the regions possible access to the international natural gas. Currently, the Malampaya gas field is
to from
potential stakeholders.
Malampaya gas field The Gas reached
already Sales and 1.1 transport
are the m sector is also
ain market of npursued
atural gas through the
in the country. gas market so that a competitive, clean fuel is the countrys only source of natural gas. Although
Purchase Agreement (GSPA) between Forum Natural Gas Vehicle
trillion cubic feet (TCF), and for the first semester As of 2011, the power plants consumed a total of Program for Public Transport available for use in power generation. However, the government is pushing on the development of
Exploration, Inc.
of 2012, gas and DESCO,
production registered Inc. was signed
at 72.6 BSCF, (NGVPPT). 133.22 BSCF From a minimal
to generate 20,591 volume GWh of CNG
of electric Mindanao could only provide an anchor market indigenous gas resources through the conduct of
(January 2009) toyield
while condensate providestood the at 2.5 MMB. gas utilization
necessary in 2008
power. This accounted following for a 2the
9.8 pinauguration
ercent share to for an LNG facility that is modest in size, and PECR, ensuring supply security also necessitates
supply for a 1.0 MW power plant in the area. of total the gpilot
ross generation
mother and nationwide.
daughter refueling its economics will improve if there is a good looking into the economics of importing natural
On power
Said the other
plant hand,
wastcommissioned
he Libertad Gas in Field in Bogo, system
February in October 2007, the total consumption plan for parallel development of other natural gas in the form of LNG.
Libertad, Cebu, with an estimated reserve of of The
2012. natural alternative
gas for application the transport of natural
sector gas alreadyin the gas markets proximate to where the terminal
about 0.6 BCF, has been made available to reached transport sector
46.5 MMSCF in 2011 and 23.0 MMSCF is also pursued through the could be established. Thus, demand assessment Luzon
potential stakeholders. The Gas Sales and for Natural Gas Vehicle Program for Public Transport
the first semester of 2012. A total of 61 was conducted in Davao, General Santos, Iligan,
(NGVPPT). From a minimal volume of CNG
CNG-fed buses are in country, of which 41 are Cagayan de Oro and PHIVIDEC Ecozone in Critical infrastructure projects initially
utilization in 2008 following the inauguration of
already plying along the routes of Batangas- Misamis Oriental. The study would likewise identified in Luzon will be pursued during
the pilot mother and daughter refueling system in
Laguna-Manila. These buses are operated cover some issues and options for distribution the planning period as shown in (Table 35).
October 2007, the total consumption of natural
by KL Transport, RRCG, HM Transport, BBL,
gas for the transport sector already reached 46.5 of natural gas, policy and regulatory analysis for Nine (9) transmission pipeline networks are
Greenstar
MMSCF in and N. De
2011 and la Rosa.
23.0 MMSCF for the 1st proposed to be developed in Luzon, namely: the
56 Master Plan study on the Development of Natural Gas in the BatMan 1, BatMan 2, BatCave, Subic Pipeline,
semester of 2012. A total of 61 CNG-fed buses Philippines was completed in January 2002 with support from
Natural Gas Field in Libertad, Bogo, Cebu City (Well L95-1, are in country, of which 41 are already plying JICA. Clark Pipeline, Sucat-Fort Bonifacio Pipeline,
Well L-11, Well L-13)

Sucat-Malaya, Sucat-Quirino and a city gas Table 35. CRITICAL INFRASTRUCTURE PROJECTS pipeline which will be linked with the proposed Terminal is seen to be a source of natural gas
distribution network the EDSA-Taft Gas BatMan2; the 25-km. Clark pipeline to also supply for BatMan 2 by 2025.
Project Target Year
Pipeline (ET Loop). start from BatMan2 going to Clark; the 35-km.
Luzon
Pipeline Projects
Sucat-Malaya (Su-Ma) pipeline, which is To provide the CNG supply requirement for
The BatMan 1 Project is considered the 105-k.m. Batangas-Manila (BatMan 1) Pipeline 2015-2017 an underwater high pressure gas transmission the 200 CNG buses under the pilot phase
backbone infrastructure with an estimated 15-k.m. Sucat-Fort Bonifacio Pipeline 2017 pipeline from Sucat, Paraaque to service the implementation of NGVPPT, the DOE directed
distance of 105-km. high-pressure gas 35-k.m.Sucat-Malaya (Su-Ma) Pipeline 2017 proposed converted Malaya Natural Gas Plant PNOC-EC to put up CNG refueling stations by
transmission pipeline from Batangas to 38-k.m. Sucat-Quirino Pipeline 2020 in Pillilia, Rizal; and, the shortest is the 15- 2013-2015.
Sucat. It is expected to operate commercially 140-k.m. Bataan-Manila (BatMan2) Pipeline 2020 km. Sucat-Fort Bonifacio pipeline that will
by 2017. It will deliver the necessary gas 40-k.m. Metro Manila / EDSA-Taft Gas Pipeline ET Loop 2020 service the requirement of the industries and Mindanao
requirements for the economic zones 40-k.m. Subic Pipeline commercial establishments in Fort Bonifacio,
2021
located along the route from Tabangao, (from proposed BatMan2 to Subic) Global City in Taguig City. The proposed entry of natural gas in Mindanao
Batangas to Sucat, Paraaque, and the 25-k.m. Clark Pipeline
(from proposed BatMan2 to Clark)
2022 is expected to kick-off the development of
transport sector for the CNG-fuelled buses Similarly, the BatCave is a 40-km. undersea high infrastructure in the region that would possibly
40-k.m. Bataan-Cavite (BatCave) Pipieline 2022
and taxis. By 2020, said pipeline will be pressure gas transmission pipeline designed spur to the Visayas area. Its entry to the region
Refilling Stations
extended to Quirino highway going to the to transmit gas from Bataan province passing will be a two-phased approach which will cover
CNG Refilling Stations in Metro Manila 2013-2015
Mall of Asia in Pasay City. On the other hand, through Cavite province to Metro Manila via five (5) years (2014-2018). The first phase will
Liquefied Natural Gas (LNG) Terminals
the supply of natural gas for the Batman Batman 1. Another pipeline project will also be be in the areas of PHIVIDEC Industrial Park,
LNG Hub Terminal in Pagbilao, Quezon 2013-2014
1 pipeline will come initially from the available the 40 km. gas pipeline along EDSA- Cagayan de Oro and Iligan, while the second
LNG Terminal in Batangas 2021-2030
production of the Malampaya gas field and Taft Avenue or the ET Loop. It is expected to phase will expand in the areas of Davao and
LNG Terminal in Bataan 2025
will be supplemented by LNG importation Mindanao supply gas to large commercial establishments, General Santos. These infrastructure projects
in 2020. Phase I as well as for transport vehicles that ply around are necessary to expand the applications of
Floating Storage and Regasification Unit the Metro Manila area. natural gas in industries and commercial sectors
On the other hand, the BatMan 2 Project is FSRU Facility in Macajalar Bay, Misamis Oriental 2014-2016 in Mindanao including the possible utilization
a 140-km. high pressure pipeline that will Pipeline Projects Another critical infrastructure project is the in the transport and agricultural sectors (Table
serve possible markets such as the Limay 27.4-k.m. Pipeline System for Cagayan de Oro and LNG Terminal. The entry of LNG terminals in the 35).
2014-2016
combined- cycle power plant, which can PHIVIDEC Area country will augment the current natural gas
be converted to natural gas-fired plant, 2x2 k.m. Distribution Pipeline in Iligan City 2014-2016 supply coming from the Malampaya gas field to During the planning period, the country is eyeing
and economic zones notably Subic and Storage Facility meet the projected demand of gas in the country. to put up the first FSRU in Mindanao to meet
Clark including industries located along the Satellite Supply Terminal (2 Storage Tanks each with 120
cu.m.) in South Iligan
2014-2016 the rising energy demand in the region. With a
route. Central Luzon and even the National There are three (3) LNG Import Terminal projects requirement of 500 MW of anchor load, the said
Satellite Supply Terminal (1 Storage Tanks with 120 cu.m.)
Capital Region (NCR) will also be served in North Iligan
2014-2016 being lined up in Luzon the Pagbilao LNG Hub FSRU will be placed in Macajalar Bay, Misamis
with supply coming from the proposed LNG Refilling Stations Terminal in Quezon, and the LNG Terminals in Oriental and is targeted to be operational in
import terminals located either in Mariveles Liquefied Compressed Natural Gas (LCNG) Refueling Batangas and Bataan. The Pagbilao LNG Hub 2016. Aside from its anchor load, the FSRU will
2016-2017
or Limay in the province of Bataan. As Stations in Iligan City, CDO and PHIVIDEC Areas Terminal has two (2) storage tanks each has a also be supplying gas to potential demand areas
a network, Batman 2 will connect with Phase II capacity of 130,000 cubic meter (cu.m.). As an in PHIVIDEC Ecozone, Cagayan de Oro, Iligan
Liquefied Natural Gas (LNG) Terminals
Batman 1 via the 40-km undersea Bataan- initial anchor market to the LNG terminal, 300- City, General Santos and Davao.
Cavite (BatCave) and through the 35-km. 3 Satellite LNG Terminals in Davao via General Santos TBD
MW combined-cycle gas turbine (CCGT) power
Rosario, Cavite to Bian, Laguna (RoBin) Pipeline Project plants (2 x 150-MW) will be constructed in two By 2014, two (2) Satellite Supply Terminals will
spurline. Likewise, it can also be connected 53-k.m. Pipeline in General Santos 2016-2018
(2) phases. It is expected to start operating in be constructed in conjunction with the FSRU. The
Refilling Stations
to the Manila area via the ET Loop. The 2014. However, the expected LNG supply that first Supply Terminal will have a two (2) storage
target year of completion for the BatMan 1 Liquefied Compressed Natural Gas (LCNG) Refueling will come from the terminal hub is assumed tanks with a capacity of 120 cu.m. each, which
2016-2018
Stations in General Santos and Davao
Project would be for the period 2015-2017, to be distributed to other potential markets in will be allocated for the demand in the south
while BatMan 2 would be operational by Note: Luzon, Visayas and Mindanao aside from its of Iligan City and Misamis Oriental, while the
1.) Timeline for Batman 1 and LNG Terminal in Batangas is subject to
2020 (Table 35). the result of the updated Master plan study for the Development
own-used requirements. An LNG Terminal in second Supply Terminal will consist of one (1)
of the Natural Gas Industry in the Philippines. However, for other Batangas is targeted to be available between storage tank with a capacity of 120 cu.m. in the
projects, the target date is assumed as a chain result to the operation
Four (4) additional pipelines will be of Batman 1
the years 2021-2030 to augment the natural north of Iligan City. On the other hand, two (2)
constructed. These are: the 40-km. Subic 2.) Said Targets are still subject for review based on current socio- gas supply for BatMan 1, while the Bataan LNG pipelines will also be constructed accordingly
economic conditions.

markets such as the Limay combined- cycle power Another critical infrastructure project is the LNG
plant, which can be converted to natural gas-fired Terminal. The entry of LNG terminals in the
plant, and economic zones notably Subic and country will augment the current natural gas
Clark including industries located along the route. supply coming from the Malampaya gas field to
Central Luzon and even the National Capital meet the projected demand of gas in the country.
Region (NCR) will also be served with supply
to transport and distribute the necessary gas operations among all the various elements downstream natural gas program for inclusion
coming from the proposed LNG import terminals
to demand areas. These are the: 27.4 k.m. in the industry. located either in Mariveles or Limay in the into the DOE Investment Promotion Program.
pipeline system for the areas of Cagayan de province of Bataan. As a network, Batman 2 will
Oro and PHIVIDEC Ecozone; and, the 2x2 k.m. Need to explore, developconnect
and promote other 1 via the 40-km undersea
with Batman There is also a plan to review the gas pricing
distribution pipeline in Iligan City, which will be indigenous sources of natural gas to expand
Bataan-Cavite (BatCave) and through the 35-km. index provided under the existing GSPA and
connected to the said two (2) Satellite Supply the supply base. Rosario, Cavite to Bian, Laguna (RoBin) spurline. recommend a standard or base price structure
Terminals. These facilities are expected to be in Likewise, it can also be connected to the Manila for gas that would be de-linked from oil.
place by 2016. area via the
Need to develop local technical skillsET and Loop. The target year of The proposed underground LNG terminal located in Bataan Subsequently, this would establish the first
Province.
expertise to fill up the completion
requirement for ofthe
the BatMan 1 Project would be for natural gas pricing policy in the country.
Likewise, in anticipation for the demand in the the period 2015-2017, while BatMan 2 would be
natural gas industry as well as to be globally
into the economics of importing natural gas in
transport sector, the government is planning competitive. operational b y 2 020 ( Table 3 5). Further, the DOE will conduct an evaluation and
the form of LNG to meet the projected demand
to put up Liquefied Compressed Natural Gas market research on techno-economic aspects

coming from potential markets of natural gas.
(LCNG) refueling stations in the areas of Iligan, Plans and Programs of related technologies for possible fuel shift to

Cagayan de Oro and PHIVIDEC Ecozones. Likewise, the DOE shall strengthen the countrys natural gas, as well as vigorously continue the
POLICY INITIATIVE position to establish LNG import terminal profiling of potential gas markets nationwide
For the demand coming from the provinces of hub to bring in LNG from nearby countries. In throughout the planning period.
General Santos and Davao, a 5-k.m. pipeline and The DOE will advocate for the approval
PHILIPPINE ENERGY PLAN 2012-2030 of anticipation of this, the DOE will monitor and 85
three (3) satellite LNG terminals coupled with Natural Gas Bill in Congress. An enabling law evaluate the development of natural gas supply To strengthen the industry, the DOE in
LCNG Refueling stations will be constructed will establish a clear policy for market, supply in ASEAN, Middle East and APEC member collaboration with natural gas stakeholders
within the planning period (Table 35). and infrastructure development. Once the said economies and at the same time, actively will prepare and implement a collegiate level-
bill is approved and passed into law, the DOE participate in regional collaboration and curriculum that will introduce energy and
Development Challenges will prepare, finalize and implement issuances dialogues. natural gas in selected courses at PUP and other
such as the IRR, Transmission Code, Distribution universities in the country.
The government is keen on expanding the Code and Supply Code. In addition, the DOE will Infrastructure Development
utilization of natural gas in different demand pursue the inclusion of natural gas investments In the absence of local industry standards,
sectors of the economy. For the planning period, in the governments Investment Priorities Plan One of the recommendations in the updated the proponents or operators of pipelines, and
the DOE has identified the following issues/ to ensure investors of wider access to incentive Master Plan study is to develop a strategy transmission- and/or distribution-related
challenges confronting the expansion of the packages. or model on how to implement and bid out facilities will conduct the operations of their
sector: infrastructure projects. The DOE is keen on respective facilities in accordance with relevant
As part of advocacy for the passage of the Natural putting up the critical natural gas- related standards promulgated by the International
Need for an integrated set of laws and Gas Bill, the DOE will conduct a massive IEC infrastructure facilities identified in the said Standards Organization (ISO) or other
regulations as an important requisite for its activity on natural gas particularly for legislators, Master Plan Study (Table 35) through the public- internationally-accepted standards as the DOE
expansion. non-government organizations and the general private partnership (PPP) scheme. may adopt. Within the planning period, the
public. The identification and development of DOE will formulate a Health, Safety, Security and
Need to put up strategic infrastructure a capacity development program for natural MARKET DEVELOPMENT Environment (HSSE) program for all operators
facilities to ensure that natural gas is gas regulators will be pursued throughout the of existing and incoming natural gas facilities in
delivered continuously to all demand planning period. Promote and Encourage Use of Natural Gas in the country.
sectors, such as the network of high and low New and Existing Markets
pressure gas pipelines, receiving terminals PRODUCTION AND SUPPLY SECURITY
and pumping stations. The DOE will put in place mechanisms to
Development of Sustainable Natural Gas respond to the growing demand for natural
Institution of a comprehensive incentive Supply gas in the country. In the immediate term, the
package that will encourage stakeholders DOE will intensify promotion of natural gas to
to support the required investments for the The DOE will continuously support and promote potential industries located along the route of
sector. the exploration and development of natural gas the identified gas transmission pipelines. It
in the country. Likewise, on-site or small scale will also review and coordinate with concerned
Establishment of industry standards to power generation using marginal gas-fields will government agencies the enhancement of
ensure safety and increase efficiency in be promoted. In addition, the DOE is looking existing incentive package for the overall

V. POWER SECTOR hydro facilities during the latter part of In the first half of 2012, total electricity
first semester 2011. The 1st and 2nd units of generation reached 36,077 GWh with the
Power Development Plan Ambuklao hydro started its operation in last following breakdown: 25,843 GWh in Luzon,
June 2011 and the 3rd unit in October 2011. 5,846 GWh in the Visayas, and 4,388 GWh in
Recognizing that electricity is a key driver for Performance Assessment Also, the recommissioning and transfer of Mindanao.
rapid economic growth and poverty alleviation, the 116-MW diesel power plant in Subic from
the DOE, as mandated by the EPIRA, formulates The stability and reliability of power supply PSALM to Udenna during the second quarter of GENERATION BY PLANT TYPE
the PDP as an integral component of the PEP. The remained a major challenge. Despite the natural 2011 contributed to the increase in dependable
PDP is composed of development plans of the calamities, adverse effects of climate change capacity of the Luzon grid. A. Coal
Generating Companies (GenCos), Distribution that hit the country, tension in Middle East and
Development Plans (DDPs) of the distribution the economic situation in the West, there was In the Visayas, the installed capacity was at The countrys total generation from coal-fired
utilities (DUs) nationwide and the Transmission a steady performance of the countrys power 2,393.8 MW with an increased dependable power plants increased by 8.8 percent from
Development Plan (TDP) of the National Grid industry in 2011. capacity of 16.7 percent from 1,744.9 MW in 23,301 GWh level in 2010 to 25,342 GWh in
Corporation of the Philippines (NGCP). The 2010 to 2,036.8 MW in 2011. 2011. In the Visayas, the increase in use of
PDP also takes into consideration the available Capacity coal for power generation was due to the entry
indigenous resources that may be harnessed In Mindanao, the stability and reliability of of three new coal-fired power plants, namely:
to meet the domestic power requirement with Total installed capacity in the country declined power supply remained a major issue with a (i) 3 x 82 MW coal-fired plant by Cebu Energy
due regard to potential reduction of GHGs and by 0.8 percent in 2011 to 16,226.9 MW from precariously low generation reserve level in Development Corporation (CEDC) in April and
economically-feasible solutions. 16,358.9 MW in 2010. This was mainly attributed the island. Even if the existing hydro power June 2010 (Units 1 and 2) and in January 2011
to the decommissioning of the 49-MW Northern plants are running in full capacity, the need for (Unit 3); (ii) 2 x 72 MW coal-fired plant by
The 2012-2030 PDP outlines a strategic Negros geothermal power plant in June 2011 and demand control is necessary due to generation Panay Energy Development Corporation (PEDC)
roadmap for the power sector to ensure and the non-availability of the 55-MW Tiwi Unit 3 and deficiency that maybe caused by the scheduled in November 2010 (Unit 1) and April 2011
secure the delivery of a reliable and quality the 242.38-MW Duracom Diesel power plant, maintenance and the unexpected shutdown (Unit 2); and (iii) 2 x 100 MW by KEPCO-Salcon
electricity supply in the short-, medium-, and which was on deactivated shutdown since 2006. or reduced capability of some power plants. in November 2010 (Unit 1) and March 2011
long-term planning horizon. Thus, a grid-wide power load curtailment was (Unit 2). For the Luzon and Mindanao grids,
Installed capacity in Luzon was recorded at implemented in the island to maintain the electricity generation from their respective
The PDP process has evolved from econometrics 11,811.1 MW, while dependable capacity was supply-demand balance. The installed capacity coal-fired plants decreased due to the scheduled
approach (top-down) to bottom-up approach at 10,824.4 MW. An increase of 3.1 percent in Mindanao grid was posted at 2,022.0 MW maintenance and unplanned outages. In Luzon,
where the DOE aggregates the energy forecasts from 10,498.4 MW in 2010 was due to the with a reduced dependable capacity of 2.5 three (3) coal plants went on maintenance to
of the individual DUs as indicated in their DDPs, commissioning of the 3 x 35-MW Ambuklao percent from 1,658.2 MW in 2010 to 1,615.9 include: (i) Calaca Unit 1 (300 MW) in September
embedded generators and directly- MW in 2011. 2011; (ii) Pagbilao Unit 1 (382 MW) during the
connected customers of NGCP. These Table 36. INSTALLED AND DEPENDABLE CAPACITY BY ISLAND GRID whole 4th quarter of 2011; and, (iii) Sual Unit 1
initial estimates are harmonized
(in MW), 2011
POWER GENERATION from 20 August 2012 to 16 October 16 2011.
Philippines
with the actual power delivery of Island Grid Capacity (MW) Percent Share (%)
The Mindanao Coal Units 1 and 2 were likewise
the transmission company. The Installed Dependable Installed Dependable GENERATION BY GRID on planned outages on 15-24 October 2011 and
DU forecasts include loads for Luzon 11,811.12 10,824.36 72.79 74.77 16-31 July 2011, respectively.
Visayas 2,393.75 2,036.76 14.75 14.07
captive markets such as residential Mindanao 2,022.03 1,615.92 12.46 11.16 Gross electricity generation for 2011 reached
customers and/or contestable TOTAL 16,226.90 4,477.04 69,176 GWh, posting a minimal increase of For the first semester 2012, coal-fired power
markets for existing and future large Table 37. INSTALLED AND DEPENDABLE CAPACITY BY PLANT TYPE 2.1 percent compared to 67,743 GWh in 2010. plants contributed 39.3 percent or 14,173 GWh
loads. (in MW), 2011 Generation in Luzon grid declined by 0.5 percent to the total electricity generation. In terms of
Philippines while Visayas registered a remarkable increase additional capacity, the 600-MW coal-fired
It is also at this level where power Plant Type Capacity (MW) Percent Share (%)
of 15.2 percent due to the full commercial power plant of GN Power, which is the first
Installed Dependable Installed Dependable
suppliers and off-takers (DUs) Coal 4,916.60 4,650.80 30.42 32.13 operation of the remaining units of its coal-fired merchant private sector investment in Luzon
negotiate the bilateral contracts to Oil Based 2,994.11 2,578.70 18.53 17.81 power plants. In Mindanao, however, despite after the EPIRA implementation, is set to start
Natural Gas 2,861.00 2,770.00 17.70 19.13
ensure power supply availability in Geothermal 1,847.69 1,433.87 11.03 9.90 the suppressed demand in view of capacity the testing and commissioning of its Unit 1 (300
the short-, medium-, to long-term Hydro 3,490.73 2,963.47 21.60 20.47 constraints, electricity generation rebounded MW) by November-December 201257.
Wind 33.00 33.00 0.20 0.23
planning horizon. Solar 1.00 1.00 0.01 0.01 by 3.6 percent owing to the improved stability
Biomass 82.76 46.20 0.51 0.32 of its hydro facilities. 57 Officially recorded testing and commissioning with minimal
TOTAL 16,226.90 14,477.04
generation was on 31 December 2012 by NGCP.

B. Oil-Based Table 38. COMPARATIVE GENERATION BY OWNERSHIP/UTILITIES ELECTRICITY SALES AND CONSUMPTION and non-technical losses from generation,
transmission and distribution accounted for
Total 2010 2011 Change
For oil-based plants, the countrys Philippines % Amidst the weakened domestic economy 7,680 GWh or 11.1 percent.
GWh % Share GWh GWh %
total generation decelerated by 52.2 Share
brought by the slowdown in global trade, the
NPC 4,053 5.98 5,141 7.43 1,088 26.85
percent from 7,101 GWh in 2010 to NPC-SPUG 522 0.77 543 0.78 20 3.90
electric sales and consumption grew in 2011 On a per grid basis, the Visayas grid remained the
3,398 GWh in 2011. Oil-based power NPC IPP 14,725 21.74 9,536 13.78 (5,189) (35.24)
by only 2.1 percent compared with 9.3 percent highest-ranked in terms of growth in electricity
plants were frequently dispatched as in 2010. Likewise, coming from a high base sales and consumption, representing an increase
Non-NPC 48,442 71.51 53,955 78.00 5,513 11.38
must run units in 2010 to address the fueled by election exhilarated outflows in 2010, of 5.4 percent over the previous year. The surge
Total
insufficient reserve capacity in the Generation 67,743 100.00 69,176 100.00 1,433 2.12
the domestic economy continued to decelerate, could be attributed to the stable and reliable power
Luzon grid. In Mindanao, grid was able posting a 3.9 percent in 2011 from an elated 7.6 supply in the grid with the entry of additional
to cope with the limited hydroelectric increase of 24.3 percent from 7,803 GWh in percent growth in the previous year. installed capacities in 2010. The improved power
power plants output, thus generation from its 2010 to 9,698 GWh in 2011. The significant supply coupled with additional infrastructure
oil-based plants were reduced from 2,087 GWh increase is driven by the full dispatch of The modest increase in electricity sales and drew in more regional economic developments,
in 2010 to 1,424 GWh in 2011. For first semester Mindanao hydro facilities to address its supply consumption can also be attributed to the which coincided with the rapid expansion of
2012, oil-based facilities contributed 4.7 percent shortage. Hydro was also abundant during cooler temperature in 2011 as compared to the industry sector in the Visayas. The notable
or 1,685 GWh to the total electricity requirement. the first semester 2012 with a 12.4 percent 2010. The country experienced El Nio in performance in the revenue of industries may
contribution to the total electricity generation first semester 2010, which triggered the high have benefitted from the commercial operations
C. Natural Gas or 4,481 GWh. demand for electricity. Meanwhile, the impact of the Wholesale Electricity Spot Market (WESM)
of La Nia prevailed from the latter half of 2010 in the Visayas in 2010 that spurred both local
Meanwhile, generation from natural gas F. Wind, Solar and Biomass until end of first quarter of 2011 which brought and foreign investments. On the other hand,
posted an increase of about 5.5 percent in cooler temperatures. Electricity sales and Luzon posted a meager growth of 1.3 percent
2011 despite the supply constraint brought by The combined contribution from emerging consumption were further pulled down by the in electricity sales and consumption mainly due
the maintenance shutdown of the Malampaya renewable energy sources such as wind, solar lower consumption of residential users partly to the levelized or equal economic performance
natural gas pipeline from 20-26 October 2011. and biomass, increased by 126.8 percent in as a consequence of the cooler weather for most between 2010 and 2011.
Mid-2012 electricity generation data from 2011 from 90 GWh in 2010 to 205 GWh with of the year. The contraction was
natural gas registered 28.7 percent contribution a share of 0.3 percent to the total generation. also due in part to base effect, Table 39. ELECTRICITY SALES AND CONSUMPTION BY SECTOR
or 10,354 GWh. The substantial increase was attributed to the as 2010 levels reflected higher 2010 2011 Change
Sector %
electricity generated from the 4-MW San Pedro than the normal consumption GWh
Share
GWh % Share GWh % Share
D. Geothermal Landfill Methane Recovery in Luzon and the due to restoration efforts in the Residential 18,833 27.80 18,694 27.02 (139) (0.74)
15-MW biomass-fed Central Azucarera de San aftermath of Typhoon Ondoy Commercial 16,261 24.00 16,624 24.03 363 2.23
On the other hand, despite the decommissioning Antonio (CASA) in the Visayas. For first half and election-related activities. Industrial 18,576 27.42 19,334 27.95 758 4.08
of Northern Negros Geothermal Power Plant (49 of 2012, electricity generation from these RE However, the subtle increase Others 1,596 2.36 1,446 2.09 (150) (9.38)
MW) and the outage of Palinpinon Geothermal sources already reached 125 GWh or 0.4 percent in energy sales can be traced Total Sales 55,266 81.58 56,098 81.09 832 1.51
for 85 days (19 Sept - 29 Nov) due to main of the total electricity generation. to higher consumption from Own-Use 4,677 6.90 5,399 7.80 722 15.43
transformer failure, power generation from both commercial and industrial System Loss 7,800 11.51 7,680 11.10 (121) (1.55)
geothermal power plant accelerated by 0.1 GENERATION BY OWNERSHIP sectors, which was sufficient to Total
67,743 69,176 1,433 2.12
percent from 9,929 GWh in 2010 compared offset the low performance of Consumption
to 9,942 GWh in 2011. The slight increase was Generation from NPC power plants increased by the residential sector.
attributed to the synchronization to the grid of 1,088 GWh or 26.9 percent from 4,053 GWh in Table 40. ELECTRICITY SALES AND CONSUMPTION BY GRID
Unit 1 of Bacman (55 MW) in December 2011 after 2010 to 5,142 GWh in 2011. The transfer of NPC- The countrys total electricity 2010 2011 Change
Sector % % %
being out of service since March 2009. As of June IPPs, on the other hand to its Administrators sales for 2011 posted a minimal GWh
Share
GWh
Share
GWh
Share
2012, generation from geothermal registered at caused the decrease in electricity output of NPC- growth of 1.5 percent from Luzon
5,261 GWh or 14.6 percent of the total. IPPs from 14,725 GWh in 2010 to 9,536 GWh 55,266 GWh in 2010 to 56,098 Sales 41,389 74.89 41,706 74.35 317 0.77
Consumption 50,322 74.28 50,965 643 1.28
in 2011. On the other hand, the non-NPC IPPs GWh in 2011. Meanwhile, Visayas
E. Hydropower increased its generation by 11.4 percent from own-use of power plants and Sales 7,036 12.73 7,224 12.88 188 2.67
the 2010 level of 48,442 GWh to 53,955 GWh. distribution utilities increased Consumption 9,018 13.31 9,508 490 5.43
Mindanao
The countrys total generation from by 15.4 percent from 4,677 GWh Sales 6,841 12.38 7,167 12.78 326 4.77
hydroelectric power plants posted a significant in 2010 to 5,399 GWh. Technical Consumption 8,403 1240 8,703 300 3.57
Total Consumption 67,743 69,176 1,433 2.12

Meanwhile, Mindanao electricity sales and Residential Sector Table 41. COMPARATIVE DEMAND BY GRID (in MW) Meanwhile, utilities own-use for office and
consumption increased by 3.6 percent in 2011 Grid 2010 Peak 2011 Peak % Change station use of the power plants sustained its
from 2.0 percent in 2010. The marginal growth Electricity sales in the residential sector declined Luzon 7,656 7,632 (2.96) vigorous performance, standing an aggressive
came from the residential and commercial by 0.74 percent from 18,833 GWh in 2010 to Visayas 1,431 1,481 3.49
double-digit rise at 15.4 percent from 4,677
Mindanao 1,288 1,347 4.50
sectors, which accelerated to 6.7 percent and 18,694 GWh in 2011. Sales from the residential GWh in 2010 to 5,398 GWh in 2011. The growth
Total
4.7 percent, respectively. Electricity sales in sector comprised 33.3 percent of the total Philippines
10,585 10,460 (1.18) came mainly from the increasing working capital
Mindanao sustained its year-on-year growth as electricity sales compared with 34.1 percent particularly to the bulk demand coming from
consumption, though slow-paced, continued to share in 2010. The decline in consumption in transport, storage and communication, and the additional electronic durable equipment
accelerate following the restoration of power of the residential customers could be partly the recovery of the trading activities towards related to the improvements and expansions of
from the outages caused by storms experienced attributed to base effects, as 2010 level reflected the end of the year. Further, the continued the utilities.
during the latter half of 2011. higher-than-normal consumption among the demand for services such as for laundry, medical
residential customers. and health, education, hotels and restaurants, SYSTEM PEAK DEMAND
Industrial Sector beauty and wellness justified the constant
The 2.2 percent dropped in Luzon grid sales was though restrained growth of electricity sales in Luzon grids system peak demand for 2011 was
Electricity sales from industrial customers was largely fuelled by the cooler weather. Further, the commercial sector. recorded at 7,632 MW, 3.0 percent lower than
recorded at 19,334 GWh or 28.0 percent of almost half of the residential customers in 2011 the 7,865 MW level in 2010. The slight decrease
total electricity consumption in 2011, implying were lifeline subsidy customers, consuming Others could be attributed to the cooler temperature
4.1 percent growth from 18,576 GWh in 2010. 100 KWh or less per month. In addition, the due to the inception of La Nina in the latter part
Industrial customers in Luzon registered a erosion of the purchasing power of households Others refer to public buildings, street lights, of 2011.
moderate increase of 2.8 percent in 2011 from resulting from rising commodity, energy and irrigation and others not elsewhere classified.
a huge 10.9 percent in 2010, a significant transport prices resulted to a contraction on the This group recorded a remarkable decline of In the Visayas, coincident peak demand which
decline compared with previous year. Generally, household utilization of electronic appliances, 9.4 percent from its 1,596 GWh consumption occurred in December 2011 reached 1,481 MW,
however, the strong performance of the food preparation and recreation. in 2010 to 1,446 GWh in 2011 as a result of the higher by about 3.5 percent compared with the
manufacturing sector adeptly supported by the governments under spending on infrastructure previous years level of 1,431 MW on the same
sub-sectors on electronics and semiconductors, In the Visayas, electricity sales in 2011 also such as public buildings. The slowdown in the month. At the sub-grid level, Cebu reflected the
metal product fabrication, food products and posted a modest increase of 0.13 percent or an activities of farmers and fisher folks in the highest average demand for 2011 with 49.0
beverages negated the contraction of electricity equivalent of 2,527 GWh from the previous year agriculture sector due to the reduced production percent share. This was followed by Panay at
consumption of industrial customers in Luzon. level of 2,523 GWh. of main crops such as palay, corn and other 17.6 percent; Negros at 16.6 percent; Leyte-
crops; and, fishing caused by the extreme Samar at 14.1 percent; and Bohol at 4.3 percent.
On the other hand, significant increase was On the other hand, the recovery of Mindanao weather conditions and high cost of fuel also The lowest recorded system demand in the grid
observed in the Visayas grid with 9.7 percent from the impacts of El Nino in 2010 triggered contributed to the said decrease in this sector. was on 25 December 2011 (Christmas Day) with
from 2,770 GWh in 2010 to 3,038 GWh in the rise in the regions household energy 1,202 MW.
2011. The significant growth in the industrial consumption by 6.7 percent in 2011. OWN-USE AND SYSTEM LOSS
customers of Visayas was supported by the Meanwhile, in Mindanao, the recorded peak
expansion of its manufacturing subsector. Commercial Sector Total percentage share of system loss posted a demand occurred in December 2011 at 1,347
Likewise, mining and quarrying activities grew modest diminution of 1.6 percent from 7,800 MW, which was 4.5 percent higher than the
at an accelerated pace compared with previous Commercial consumption increased at markedly GWh in 2010 to 7,680 GWh in 2011. The slight 2010 actual coincident peak of 1,289 MW.
year due to the significant contribution of other lower rate from a strong growth performance decrease was a result of improved performance Similarly, the lowest recorded demand was
industry (coal). of 10.2 percent in 2010 to a modest pace of of transmission and distribution systems during Christmas Day with 996 MW.
2.2 percent in 2011. The sectors demand can due to continuous enhancement in network
In Mindanao, electricity sales in the industry be attributed to business process outsourcing, efficiency and improved pilferage management. A suppressed demand was observed throughout
sector edged up from 2,776 GWh in 2010 to hotels and restaurants, wholesale and small- Moreover, national government initiatives such the Mindanao grid in view of the continued
2,902 GWh in 2011. The growth reflected the scale trade and retail establishments, and as the sustained energy efficiency improvement deficiency of available supply to meet the
rising demand resulting from the sustained import and export trading. programs, operations and management increasing demand for power in the island.
growth in the manufacturing sector. practices were other relevant factors and
Generally, the increased electricity sales was intervention that contributed to the system loss In line with this, the government and private
mainly due to the accelerated growth of real reduction in 2011. sector jointly initiated mitigating measures to
estate, renting and business activities engaged avert the worsening power scenario. These

include the close monitoring of the power 1. Determine the Energy Sales Forecasts Luzon Peak demand is also expected to reach 2.1 GW in
situation in Mindanao and exploring all 2020 and 3.3 GW in 2030.
the possible measures to help mitigate the The growth rates in the energy purchase of DUs Luzon grid is expected to double its peak
occurrence of power outages in the grid until on the bases of their consolidated 2012-2020 demand and electricity sales towards the end of Measurable Sectoral Targets
new capacities come in. DDPs were used to come up with the energy sales the planning period. Electricity sales will grow
forecast. The growth rates are applied to the from 45.1 TWh in 2011 to 61.2 TWh in 2020, In power development planning, identification of
On the overall, the country recorded an aggregate actual data of the reference year for each grid, 76.0 TWh in 2025 and 94.3 TWh in 2030. The additional capacity is dependent on the following
peak demand from three (3) grids at 10,460 MW which in this case is 2011. From the baseline corresponding peak demand of 7.6 GW in 2011 factors: electricity demand projections, required
in 2011, which was lower by 1.2 percent from energy sales data, the non-utility58 sales from is projected to reach 10.7 GW in 2020. Based on reserve margin needed in the system, and the
previous years level of 10,585 MW. In the first half the Power Delivery Services (PDS) data sourced the average growth rates indicated in Table 42, schedule retirement of existing capacity. Over
of 2012, the countrys system peak demand was from the system operations of the transmission this is expected to further move up to 16.5 GW the planning horizon, around 13,166.7 MW of
registered at 10,467 MW Luzon at 7,889 MW, company are added to come up with the total by 2030. new capacities are needed to meet the demand
Visayas at 1,449 MW and Mindanao at 1,309 MW. electricity sales forecast. and reserve requirements for electrical power.
Table 42. LUZON ELECTRICITY SALES AND PEAK
Of these, 1,766.7 MW of additional capacities
DEMAND-SUPPLY OUTLOOK 2. Convert energy sales forecasts to peak DEMAND, Average Annual Growth Rates,
2012-2030 are already committed power projects (Table
demand forecasts 45), while the remaining 11,400 MW are still
Period Electricity Sales (%) Peak Demand (%)
ENERGY AND PEAK DEMAND FORECAST The peak demand forecasts for each grid
open for private sector investments.
Base year 2011
45,093 GWh 7,632 MW
are derived using the load factor approach. (Actual Level) Table 44. MINDANAO ELECTRICITY SALES AND PEAK
Electricity demand is the amount of electricity DEMAND, Average Annual Growth Rates,
Embedded generation not captured by the 2012-2020 3.46 3.82
2012-2030
being consumed at any given time. It also
System Operator is added. 2020-2030 4.36 4.36
indicates the minimum required capacity and 2012-2030 3.96 4.13 Period Electricity Sales (%) Peak Demand (%)
production in terms of watt (w) and watt-
From the forecasted energy sales that have Base year 2011
7,739 Gwh 1,347 MW
hour (Wh), respectively. One approach, among Visayas (Actual Level)
been established above, the station use and
others to manage electricity demand is to build 2011-2020 4.80 4.88
transmission losses (SU/TL) are then added to
additional generation facilities that can be Visayas electricity sales and peak demand are 2020-2030 4.62 4.62
come up with the gross generation. These figures
brought online to manage peaks including the expected to grow much faster than Luzon as 2011-2030 4.71 4.75
are converted to peak demand in MW using
reserve requirements. shown in Table 43. The grids electricity sales of
the assumed load factor for each grid based on
9.0 TWh in 2011 is expected to increase to 12.4
Considering the actual performance against the historical performance. For 2012, the actual SU/
TWh in 2020, 15.3 TWh in 2025, and will reach COMMITTED POWER PROJECTS
forecasted level of the power sector (generation TL of 10.4 percent (Luzon), 7.1 percent (Visayas)
19.0 TWh in 2030. Correspondingly, the peak
and consumption) in 2011, the energy sales and 9.6 percent (Mindanao) were used.
demand will expand from 1.5 GW in 2011 to 2.2 As of mid-2012, private sector-initiated
and peak demand forecasts for the 2012 Power GW by 2020, and increase to 3.4 GW by committed power projects totaled 1,766.7 MW.
Development Plan (PDP) are comparatively Meanwhile, the load factor assumptions for the
2030. In Luzon, the 868.7 MW committed capacities
lower. planning horizon are: 73.0 percent for Luzon;
include: (i) 21-MW CIP 2 Bunker Fired-Plant
69.0 percent for Visayas and 72.0 percent for
Mindanao diesel-fired plant in La Union; (ii) 13-MW Green
The energy and demand forecasts for the Mindanao.
Future Biomass project in Isabela; (iii) 135-MW
Luzon grid is more comprehensive compared
Mindanaos actual electricity sales for 2011 Puting Bato Coal-Fired Project in Batangas; (iv)
to Visayas and Mindanao grids as it comprised RESULTING ELECTRICITY SALES AND
reached 7.7 TWh. This is expected to expand to 600-MW (2 x 300 MW) Coal-Fired Mariveles
about 74.0 percent of the nationwide demand PEAK DEMAND FORECASTS, 2012-2030
11.8 TWh in 2020, and will further reach 14.8 Project in Bataan; (v) 20-MW Maibarara
vis--vis its contribution to the major economic
TWh in 2025 and 18.5 TWh in 2030 (Table 43). Geothermal Project in Batangas; (vi) 67.5-MW
structural changes, being the center of industry The countrys electricity sales59 are projected
Pililla Wind Power project in Rizal; (vii) 1.2-MW
and commerce. to increase from 63.1 TWh in 2012 to 85.4 TWh Table 43. VISAYAS ELECTRICITY SALES AND PEAK
DEMAND, Average Annual Growth Rates, Payatas Landfill Methane Recovery and Power
by 2020, up to 106.0 in 2025 TWh and 131.8 2012-2030
DEMAND FORECASTING METHODOLOGY by 2030. Peak demand is likewise projected to
Generation Facility in Quezon City; and, (viii) 11-
AND ASSUMPTIONS increase from 10.9 GW in 2012 to 15.0 GW by Period Electricity Sales (%) Peak Demand (%) MW (9.9 MWe net) SJCiPower Rice Husk-Fired
Biomass power Plant Project in Nueva Ecija.
2020, 18.6 GW by 2025, and about 23.2 GW by Base year 2011
9,029 GWh 1,481 MW
Following are the steps in coming up with the 2030.
(Actual Level)
peak demand forecasts for the major grids.

2012-2020 3.56 4.69
On the other hand, the 20-MW (4 x 5 MW)
2020-2030 4.35 4.35
58 Refers to directly-connected customers of NPC and NGCP. Binga Hydro Electric Power Plant is undergoing
2012-2030 3.99 4.52
59 Electricity sales plus DUs own-use and losses

uprating, which will be completed within In Visayas, the 310-MW total committed projects Table 46. CAPACITY ADDITIONS (in MW)
the period 2012-2015. Likewise, the 130- is composed of: (i) 270-MW (2 x 135 MW)
Luzon Visayas Mindanao
MW Bacman Geothermal Plant is under Concepcion Coal-Fired Plant in Iloilo; (ii) 8-MW
rehabilitation/uprating and will commence Villasiga Hydro Electric Plant (HEP) in Antique; Year Plant Type Total Plant Type Total Plant Type Total
operation by 2013. (iii) 20-MW Nasulo Geothermal Plant in Negros Baseload Midrange Peaking Baseload Peaking Baseload Peaking
2012 - - - - - - - - 150 150
2013 - - - - - - - - 50 50
Table 45. COMMITTED POWER PROJECTS 2014 - - - - - - - - - -
2015 - - - - - - - - - -
Capacity Target 2016 500 - - 500 - 50 50 - - -
Grid Project Name Location Proponent
(MW) Completion 2017 500 - - 500 - - - - - -
CIP 2 Bunker Fired Power Bacnotan, La 2018 500 - - 500 - 50 50 100 - 100
21.00 Q4 2012 CIP II Power Corporation 2019 - - - - 100 - 100 100 - 100
Plant Union
Green Future Innovations 2020 500 - - 500 100 - 100 - - -
Green Future Biomass Project * 13.00 January 2013 Isabela 2021 500 - - 500 100 - 100 100 - 100
Inc.
2022 500 - - 500 100 50 150 100 - 100
Puting Bato Coal Fired Power South Luzon Thermal
135.00 September 2014 Calaca, Batangas 2023 - 300 - 300 100 - 100 - - -
Plant Phase I Energy Corporation
2024 500 - - 500 100 - 100 100 - 100
Unit 1 (300MW) 2025 500 300 - 800 100 50 150 100 50 150
600.00 December 2012 GN Power Mariveles Coal 2026 500 - - 500 100 50 150 100 50 150
2 x 300-MW Mariveles Project Mariveles, Bataan
Unit 2 (300MW) Plant Ltd. Co. 2027 - 600 - 600 100 50 150 100 50 150
Luzon January 2013 2028 500 300 - 800 100 50 150 100 50 150
Sto. Tomas, 2029 500 300 - 800 100 50 150 100 50 150
Maibarara Geothermal Project 20.00 October 2013 Maibarara Geothermal Inc.
Batangas 2030 500 300 - 800 200 - 200 100 50 150
Altenergy Wind One Total 6,000 2,100 8,100 1,300 400 1,700 1,100 500 1,600
Pililla Wind Power Project* 67.50 2013 Pililla, Rizal
Corporation
Payatas Landfill Methane 1.20
Recovery and Power December 2012 Quezon City Pangea Green Energy Oriental; (iv) 8-MW Cantakoy HEP in Bohol; and, Luzon Grid
Generation Facility*
(v) 4-MW Asian Energy System Biomass Project
9.9-MWe (net) SJCiPower 11.00
San Jose, Nueva San Jose City I Power in Cebu. In this years PDP update, Luzon grid is expected
Rice Husk-Fired Biomass December 2014
power Plant Project*
Ecija Corporation to grow at an average annual growth rate (AAGR)
Sub-total Luzon 868.70 In Mindanao, committed projects totaled 588 of 4.1 percent based on DDPs of distribution
2 x 135-MW Concepcion Coal- Unit 1 3Q 2014
Palm Thermal MW. These include: (i) 8-MW (2 x 4 MW) Cabulig utilities. Existing capacity is expected to increase
270.00 Concepcion, Iloilo Consolidated Holdings
Fired Power Plant Unit 2 Sep 2016
Corp. Mini Hydro; (ii) 15-MW Diesel Plant in Iligan from 10,744 MW60 in 2011 to 11,763 MW by
Nasuji, Valencia, Energy Development City; (iii) 15-MW HFO Peaking Plant in Tagum 2030 considering the following assumptions:
Nasulo Geothermal Plant 20.00 December 2013
Negros oriental Corporation City; (iv) 300-MW (2 x 150 MW) Therma South (i) committed capacities will be onstream as
Visayas
Villasiga HEP* 8.00 December 2012 Sibalom, Antique
Sunwest Water & Electric Coal in Davao del Sur; (v) 50-MW Mindanao 3 scheduled; (ii) rehabilitation and uprating of
Co. Inc.
Geothermal Plant in North Cotabato; (vi) 200- 130-MW Bacman Geothermal will be completed
Cantakoy Hydroelectric
Cantakoy HEP* 8.00 Q4 2014 Danao, Bohol
Power Project MW (2 x 100 MW) Southern Mindanao Coal in by 2013; (iii) 20-MW Binga Uprating will be
Asian Energy System Biomass Asian Energy System Saranggani. completed at a phase of 5 MW per year starting in
4.00 December 2015 Cebu
Project* Corp. 2012 until 2015; (iv) there will be normal hydro
Sub-total Visayas 310.00
SUPPLY-DEMAND OUTLOOK condition; (v) no retirement for existing power
2 x 4-MW Cabulig Mini Hydro 8.00 Operational Jasaan, Misamis Mindanao Energy plants; (vi) reserve margin will be maintained at
Power Plant* Oriental Systems, Inc.
Reference Scenario 4.0 percent of peak demand and 647 MW each
Mapalad Energy
15-MW Diesel Power Plant 15.00 2013 Iligan City
Generating Corporation for contingency and dispatchable reserve.
15-MW HFO Peaking Plant 15.00 Q4 2012
Tagum City,
EEI Power Corporation The economic assumptions underlying the
Davao Del Norte
Mindanao
reference scenario and its derivatives are in Considering the scheduled maintenance
2 x 150-MW Coal-Fired Sta. Cruz, Davao
Therma South Energy Project
300.00 2014
del Sur
Therma South Inc. the category of business-as-usual. Additional activities and outages of existing power plants,
capacities are needed on top of the committed Luzon grid needs additional capacity every year
Kidapawan, North Energy Development
Mindanao 3 Geothermal 50.00 2014
Cotabato Corporation capacities to meet the increasing electricity to augment the systems required demand and
2 x 100-MW Southern 200.00 Maasim, Sarangani Energy
requirement of the country broken down into reserve margin starting 2016. Of the 8,100 MW
2014
Mindanao Coal Saranggani Corporation the following grid requirements: (i) 71.1 percent needed capacities, 74.1 percent and 25.9 percent
Sub-total Mindanao 588.00 or 8,100 MW for Luzon; (ii) 14.9 percent or
Total 1,766.70 1,700 MW for Visayas ; and, (iii) 14.0 percent or
Subject to FiT Eligibility 1,600 MW for Mindanao as shown in Table 45. 60 Excludes own-use/self-generation

Figure 44. LUZON SUPPLY DEMAND OUTLOOK, 2012 - 2030 Figure 45. VISAYAS SUPPLY DEMAND OUTLOOK, 2012 - 2030
Considering the scheduled maintenance activities Energy Development Coal-fired Plant, and the Figure 46. MINDANAO SUPPLY DEMAND OUTLOOK, 2012 - 2030
should
and outages be baseload
of existing plants
61
and Luzon
power plants, midrange grid demand and the required reserve margin until
200-MW KEPCO Salcon Coal-fired plant the grid
plants 62
needs additional respectively. capacity every year to augment 2030. Of
will have these, enough 76.5 percentuntil
capacity should come
2015. By from
2016,
the systems required demand and reserve baseload plants, while remaining
Visayas will start to require an additional 50 MW 23.5 percent
Visayas
margin starting Grid 2016. Of the 8,100 MW needed from peakingthe
to augment plants 63
required . This reserve is on the same
margin of the
capacities, 74.1 percent and 25.9 percent should system considering
assumption that (i) all committed capacities the scheduled maintenance
60 61
be baseload
Visayas grid has plants a slightly and higher midrange
growth plantsrate activities and outages of existing power plants. A
will come onstream as scheduled; (ii) there will
atrespectively.
4.5 percent AAGR compared to Luzon grid in total
be normal of 1,700
hydro MW new capacities
conditions; (iii) no are needed to
retirement

terms of the demand projections. With the full meet
for existingthe projected
power plants; demand (iv)and the required
reserve margin
Visayas
commercialization Grid of the 610-MW coal-fired will be maintained at 4.0 percent ofpercent
reserve m argin u ntil 2 030. O f t hese, 7 6.5 peak

facilities in 2011 the 164-MW Panay Energy demand and 100 MW each for contingency while
should come from baseload plants, and
Visayas grid has a slightly higher growth rate at remaining 23.5 percent from peaking plants62.
Development Coal-fired plant, the 246-MW dispatchable reserve.
4.5 percent AAGR compared to Luzon grid in This is on the same assumption that (i) all
Cebu Energy Development Coal-fired Plant,
terms of the demand projections. With the full committed capacities will come onstream as
and the 200-MW of
commercialization KEPCO Salcon Coal-fired
the 610-MW coal-fired Mindanao
scheduled; Grid (ii) there will be normal hydro
plant
facilities thein grid will the
2011 have164-MW enough capacity until
Panay Energy conditions; (iii) no retirement for existing power
2015.
Development By 2016, Visayasplant,
Coal-fired will the start to require
246-MW Cebu Mindanao
plants; (iv) grid, reserve which is highly
margin dependent
will be maintained onat
an additional 50 MW to augment the required hydropower
4.0 percent of peak demand and 100 MW 50.0
generation, sourced around each
reserve
60 margin of the system considering the
Plants that can generate dependable power supply to consistently
percent
for contingency of electricity supply from
and dispatchable Agus and
reserve.
scheduled maintenance
meet the demand, activities
run at all times and
through the year outages
except for Pulangui hydro plants. At 4.8 AAGR, a total of
repair or scheduled maintenance
of61 existing power plants. A total of 1,700 MW 1,100 MW baseload plants and 500 MW peaking
Fill the gap between base load and peaking. Larger than peaking
new capacities
plants are needed
so construction to meet
cost are higher thealso
but they projectedrun more plants on top of 588 MW committed capacity
efficiently. are
62
needed
Peaking tocan
plants meet the up
be started projected demand
relatively quickly and
and expensive
61
Plants that can generate dependable power supply to consistently to operate relative to the amount of power they produce
meet the demand, run at all times through the year except for reserve margin requirements.
repair or scheduled maintenance
62 Fill the gap between base load and peaking. Larger than peaking Among the three grids, Mindanao would plants by 2012 and 2013, respectively, to
plants so construction cost are higher but they also run more 63 Peaking plants can be started up relatively quickly and
efficiently. expensive to operate relative to the amount of power they PHILIPPINEneed
immediately ENERGY
150 MW and2012-2030
PLAN 50 MW peaking 100
alleviate the supply problem in the grid, as
produce

well as augment the supply for the scheduled The DOE adopted these ancillary services in TDP to sustain and/or improve the limited 2. Limited experience of ECs in securing power
maintenance and outages of power plants. coming up with the required reserve margin in generating capacity in the area. supply contracts other than from NPC. ECs
the 2011 PDP. Each grid should have a level of can enter into power supply agreement with
The same set of assumptions have been FRR equal to 4.0 percent of the forecast demand Mindanao Grid private generation companies to ensure
considered for the supply requirement of the on that grid. While for CR and DR, each reserve sufficient supply of electricity to their
grid with reserve margin equivalent to 4.0 peak is equal to the largest generating single unit or Brownouts in the region were reduced with customers. Although they can buy through
demand and 105 MW each for contingency and a power import from a single grid. For Luzon the improved GOMP, as well as the issuance of the WESM, exposure to volatility of price is
dispatchable reserve. grid, the largest single unit is the 647-MW Sual D. C. 2010-10-001164 and D.C. 2012-03-000465. probable.
Power Plant. In Visayas grid, the largest single However, the urgent need to address the following
REQUIRED RESERVE MARGIN unit is the 100-MW Kepco-Salcon Coal-fired issues is foreseen to solve the supply situation: 3. Continuously work on the policies to help
Power plant, while in Mindanao grid, the largest attract private capital in power generation.
In the previous PDP, the DOE applied a required single unit is the 105-MW Mindanao Coal-fired 1. Need to put up additional baseload capacity There is a need to harmonize the procedures
reserve margin or ancillary services of 23.4 Power plant. to ensure supply security in the event of El in obtaining permits and licenses, such as
percent (2.8 percent Frequency Regulation Nino Phenomenon. Insufficient baseload Service/Operating Contracts, Clearance to
Reserve, 10.3 percent Contingency Reserve, Development Challenges capacity will result in high electricity rates undertake Grid Impact Study, Connection
and 10.3 percent Dispatchable Reserve) for since expensive plants will be required to Agreement with NGCP, and endorsement to
Luzon and Visayas grids, and 21.0 percent Luzon Grid run during peak; the Board of Investment.
(2.8 percent Frequency Regulation Reserve, 9.1
percent Contingency Reserve, and 9.1 percent Power supply in the grid was more reliable in 2. Government need to reach a decision on the 4. Implementation of RE pricing mechanism.
Dispatchable Reserve) for Mindanao grid on top 2011 compared with 2010 with the GOMP in privatization of the remaining NPC assets, RE developers on wind and solar power
of the peak demand. place. Luzon did not experience brownouts such as Agus-Pulangui through the Joint generation projects are awaiting the
due to shortfall in power generation, but only Congressional Power Commission (JCPC). implementation of approved FiT66 rates
With the approval of the 2011-2015 final during emergency situations caused by natural prior to the finalization of their projects.
determination of the NGCP by the Energy calamities such as typhoons, landslides etc. 3. Implementation of the Interim Mindanao
Regulatory Commission (ERC), the required Forced outages or unplanned shutdowns were Electricity Market (IMEM) to address Plans and Programs
level of ancillary services to be provided on minimized since the generating companies deficiency of supply in the grid. The IMEM
each grid are specified in Section 3.3 of the draft adhered to the scheduled maintenance of their is a mandatory program which provides all To deal with the challenges and ensure reliable
Ancillary Service Procurement Plan. These are facilities. However there are still challenges to generators, directly-connected customers, and sustainable electricity supply for the country,
as follows: ensure the grids reliability of supply: and distribution utilities wherein an assured the following initiatives shall be undertaken:
platform to trade their excess power.
Frequency Regulation Reserve (FRR) 1. Need to intensify the IEC on the use of 1. Establish partnerships and regular dialogue
available should be at a level equivalent to different technologies for power generation. For the Entire Grid with key stakeholders such as electric
4.0 percent of peak demand for each grid. power industry participants, LGUs and the
2. Inform the public of the power situation 1. Need to review the pricing structure of Chamber of Commerce and Industries to
Contingency Reserve (CR) available on each as well as the demand and supply outlook, natural gas and geothermal steam which are facilitate policy implementation and project
grid should be equal to the total scheduled including the available options to mitigate indexed to prices of oil and coal, respectively. development;
unit load and unit reserve level of the most power supply shortage. The indexation makes the prices of
heavily loaded generator. electricity generated from natural gas and 2. Reduce capacity gap through timely
Visayas Grid geothermal steam higher and vulnerable to implementation of power generation
Dispatchable Reserve (DR) available must price fluctuations in the world market for oil projects, particularly the committed projects.
be equal to the scheduled load and reserve The power situation in the Visayas grid relatively and coal. Strictly implement the ideal locations/areas
of the second most heavily loaded scheduled improved in 2011 due to the addition of the 610 identified in the TDP;
generator on each grid. Where the two MW coal-fired power plants. However, for the
highest loaded generators on each grid have 2012 PDP, the grid will require an additional 3. Formulate island grid-based energy plan,
the same scheduled loading and reserve, the 50 MW by 2016 and another 50 MW by 2018 64 Mandating the rational utilization of available generation including power development plan to
capacity in Mindanao and directing the DOE and its attached
contingency reserve requirement will be because of increasing demand. Investors should agencies, the NGCP, and all industry stakeholders to address the address specific developmental concerns;
equal to the dispatchable reserve. look into the ideal place/location to put up power supply situation in the region
65 Directing compliance with the EPIRA of 2001 to address the
power plants identified based on the latest power supply situation, including the rationalization of the
available capacities in the Mindanao Grid. 66 Initial Fit rates were approved on 27 July 2012.

4. Update the Power Supply Contingency Plan 13. Revisit the economic viability of the Visayas- Transmission Development Plan
to put in place immediate measures in the Mindanao interconnection project. The ERC
event of imminent power supply shortage; has already approved NGCPs application
to conduct a feasibility study for the said As mandated by RA 9136 or the Electric Power As for the Mindanao Grid, the objective is to
5. Promote efficient use of electricity through interconnection project which involves two Industry Reform Act of 2001 (EPIRA and RA 9511 accelerate the completion of projects to address
demand-side management (DSM) by options: Option 1 is the Leyte-Mindanao or An Act Granting the National Grid Corporation the regions power situation and strengthen
developing policy framework for power Interconnection, and Option 2 is the Negros- of the Philippines (NGCP) a Franchise to Engage the existing transmission system to ensure
generation projects and the participation Zamboanga Interconnection; in the Business of Conveying or Transmitting the stability, efficiency and reliability of power
of embedded generators of electric Electricity through High Voltage Back-bone transmission in the entire grid.
cooperatives in SPUG areas; 14. Dredge and clear obstruction of Agus- system of Interconnected Transmission Lines,
Pulangui IV river system to improve water Substations and Related Facilities, and for Following are the planning and programming
6. Improve heat rate of power plants as an levels for the hydro plants; other Purpose, the NGCP is responsible for the objectives considered in the TDP update:
alternative way to increase availability; formulation of the Transmission Development
15. Rehabilitate Power Barge (PB) 104 to Plan (TDP) in consultation with the electric Building of the strongest power grid in
7. Establish and strictly monitor industry upgrade its de-rated capacity and further power industry players. Southeast Asia;
compliance to reliability standards by extend its economic life. Said rehabilitation
monitoring and disclosures on status of will be undertaken once transferred to the For the 2012 TDP Update67, the NGCP is Development of a unified national grid
generating facilities; winning bidder; committed to adhere to its overarching goal capable of transmitting reliable power
of providing steady and sustainable growth of across the country;
8. Facilitate, through NEA the securing of 16. Uprate Agus VI HEP Units 1 and 2 to increase its power networks with focus on major grid
power supply contracts of ECs with private their generating capacities and extend the expansions and interconnections, renewable Compliance with the Grid Code and the
GenCos; units economic life to another 30 years; energy development, and the Mindanao power requirements of competitive retail electricity
situation. market;
9. Pursue energy efficiency and conservation 17. Transfer of PBs 101, 102 and 103 from
programs in commercial, industrial and Visayas to Mindanao to augment capacity of The major grid interconnections are for Accommodation of all the power plants
household sectors to reduce electricity the grid. The cost and transfer of the PBs the augmentation and strengthening of approved by the DOE in its Power
consumption that would result in deferred will be borne by the winning bidder; transmission capacity to support a unified grid. Development Program;
power capacity addition; and, Among those projects are the Batangas-Mindoro
18. Operate the Iligan Diesel Power Plant once Interconnection (submitted for approval of Compliance with mandates under R.A.
10. Provide interim policy on the privatization the resolution on the issue of its sale has the Energy Regulatory Commission or ERC), 9513 or Renewable Energy Act of 2008, in
of remaining NPC assets for contingency been reached with the Commission on Leyte-Mindanao Interconnection (currently particular to provide priority connection to
purposes. Audit.; undergoing feasibility study), and the Cebu- renewable energy-based plants;
Negros-Panay Interconnection, which is the
Since the Mindanao grid has been experiencing 19. Defer the sale of Agus and Pulangi Hydro extension of the 230 kV transmission backbone Identification and recommendation of
critical power supply, it necessitates the Power Plants and revisit/review the of the Visayas Grid all the way to Panay. ideal connection points for new power
implementation of specific measures deemed privatization plan, particularly on the plants, which will require no major grid
necessary to reduce and resolve such, as follows: hydroelectric facilities; and, Renewable energy represents a new reinforcement;
development that needs to be considered in the
11. Develop Mindanao Energy Plan with focus on 20. Utilize the embedded generation of the DUs 2012 TDP. With the promulgation of FIT rates Upgrade of aging transmission and sub-
power incorporating comments, suggestions to augment existing supply capacities. by ERC, the bulk entry of RE plants in the coming transmission facilities, including primary,
of the Mindanao stakeholders derived from years is already anticipated. Thus, adequate secondary and protection equipment;
the conduct of meetings and consultations; transmission facilities should be provided to
cater to huge RE power generation potentials in Application of smart grid technology in
12. Study the appropriate electricity model for the region. Looping in Northern Luzon is being new transmission facilities and SCADA
Mindanao for the establishment of modified proposed to accommodate the wind farms entry system; and,
WESM in the region; into the Luzon Grid.
Gradual improvement of the
telecommunication network.
67 2012 TDP Update is formulated by NGCP
GRID PROFILE Table 47 . SUMMARY OF EXISTING FACILITIES With the entry of the 164-MW PEDC Figure 47. IDEAL LOCATION OF POWER PLANTS IN LUZON
Leyte remains the power supplier to
CFPP, Panay became less reliant
Substation Capacity (MVA) 2011
Samar and Bohol through the single-
In Luzon Grid, the bulk generation sources are Philippines 27,376.00 on imported power via the 138-kV
Luzon 20,870.00 circuit Ormoc- Babatngon and Ormoc-
located in the northern and southern parts Visayas 3,414.00 Negros-Panay Interconnection System
Maasin 138 kV lines, respectively. Any
of the island while the load center is in Metro Mindanao 3,092.00 and, at certain
outage times,
of the said lines ismay
also result
able in
to
Transmission Line Length (ckt-kms)
Manila, which accounts for about 70.0 percent Philippines 19,822.00 export
power power toin
cut-off Negros.
the affected island.
Luzon 9,482.00
of the total grid load. Because of this system Visayas 4,979.00 Thus, N-167 projects of the said lines are
configuration, the transmission backbone must Mindanao 5,361.00 Mindanao
currently oTransmission
ngoing. System
Note: MVA Megavolt Ampere
have capability to transfer large amount of Ckt-Kms. Circuit Kilometers

power from both the north and south. With the entry of 164 MW PEDC CFPP,
The Mindanao Grid power system is
Visayas Transmission System Panay became less reliant on imported
vulnerable to power outage especially
Northern Transmission Corridor power long
during via the dry138 kV Negros-Panay
season due to its
The Visayas transmission system can be divided Interconnection
reliance on hydropower plants. System and, at certain
This
The northern transmission corridor consists times, is also
was experienced in early 2010 able to export power
when to
into five (5) different sub-grids, namely: Panay,
Negros.
of several flow paths to transfer power from Negros, Cebu, Bohol and Leyte-Samar. Taking into the El Nio phenomenon drastically
Figure 48. IDEAL LOCATION OF POWER PLANTS IN VISAYAS
the sites located in the north to Metro Manila. consideration the load flow from east to west (or reduced the main hydropower sources
Mindanao Transmission System
The main path is the 500kV double-circuit vice versa) of the Visayas Grid, the transmission in the island.

transmission line (TL) from Bolo to Nagsaag backbone of the grid extends from the far east, at The Mindanao Grid power system is
in Pangasinan then to San Jose in Bulacan. The the Allen Cable Terminal Station (CTS) in Samar, Despite
vulnerable to the aforementioned
power outage especially
Bolo and Nagsaag extra high voltage (EHV) all the way to Nabas substation in Panay, in the far susceptibility
during long dry season due sources,
of the power to its
substations are the receiving ends of generation west. This route is comprised of approximately the grid ison still
reliance considered
hydropower a highly
plants. This
from the north. The received power is then 895 kilometers of transmission line. It is reliable transmission system
was experienced in early 2010 when having
delivered to Metro Manila mainly via Mexico in composed of HVDC line, overhead transmission three
the El (3)Nio segments phenomenon complementing
drastically
Pampanga and San Jose Substations in Bulacan. lines and submarine cables. reduced
each otherthe in main
transmitting hydropower powersources
from
in the to
north island.
south. These are the Agus
Southern Transmission Corridor The bulk of installed generation capacity in the
2-Kibawe 138 kV double circuit (DC)
Visayas is located in Leyte and Cebu with the Despite
transmission linethe in Iligan, aforementioned
the Baloi-
The southern portion of the 500 kV transmission susceptibility
Tagoloan-Maramag-Kibawe-Davao of the power sources, 138
entry of the 246-MW CEDC and 200- MW Korean
the grid is still
kV DC transmission line in Bukidnon, considered a highly
backbone stretches from Naga in Bicol area Electric Company Coal Fired Power Plants (CFPP). Figure 49 IDEAL LOCATION OF POWER PLANTS IN MINDANAO
reliable transmission system having
to Tayabas, Quezon. However, this 500 kV These additional capacity changed the load flow and the soon to be completed Baloi-
three (3) segments complementing
backbone segment is currently energized at 230 in the Visayas Grid as Cebu is now able to serve its Villanueva-Maramag-Bunawan 230 kV
each other in transmitting power from
kV voltage level. The Naga Substation is also the demand rather than importing power from the DCnorth transmission
to south. line also
These inthe
are Bukidnon.
Agus 2-
termination point for the High Voltage Direct Leyte steam fields. Ongoing projects in Calung- Kibawe 138 kV double circuit (DC)
Current (HVDC) system that could allow the calung-Toledo-Colon-Cebu 138 kV transmission IDEAL LOCATIONS
transmission OF POWER
line in Iligan, the Baloi-
exchange of up to 440 MW of power between line are being implemented to fully accommodate PLANTS
Tagoloan-Maramag-Kibawe-Davao 138
Luzon and the Visayas Grids. the CEDC CFPP. Cebu also exports power to kV DC transmission line in Bukidnon,
Negros, which lacks inland generating plants Developing
and the soon power to be generating
completed plants Baloi-
Metro Manila Transmission Configuration Villanueva-Maramag-Bunawan
within load center is actually 230 ideal
kV
Leyte remains the power supplier to Samar inDC transmission
order to reduce line also in Bukidnon.
power imports.
In Metro Manila, the major 230 kV substations and Bohol through the single-circuit Ormoc-
However, environmental concerns,
are Quezon (along Balintawak), Taytay (Rizal), Babatngon and Ormoc-Maasin 138 kV lines,
area congestion, and high cost of

realty would make the implementation
Doa Imelda (along Araneta), Muntinlupa, Las respectively. Any outage of the said lines
Pias and Marilao (Bulacan). At present, there may result in power cut-off in the affected difficult. Therefore, to minimize costs,
are two (2) main load sectors within Metro
67
avert N-1 is defined as a single outage contingency criterion. This
line congestion, maximize existing
island. Thus, N-168 projects of the said lines are an indicative list of ideal locations of power plants for the
criterion specifies that the Grid shall continue to operate in the

Manila: Sector 1 consists of Quezon, Doa Imelda currently ongoing. transmission network
normal state following capacity
the loss and three
of one generating unit, major grids as seen in Figures 47-49.
transmission line, or transformer.
and Marilao; and Sector 2 consists of Taytay, guide upcoming generating companies
Muntinlupa and Las Pias 230 kV substations. 68 N-1 is defined as a single outage contingency criterion. This in choosing their prospective plant To serve as a guide for generation investors, TDP likewise
criterion specifies that the Grid shall continue to operate in
the normal state following the loss of one generating unit, locations,
PHILIPPINE the ENERGY
2012 TDPPLAN update contains identifies the substations where new power plants
2012-2030 may
107
transmission line, or transformer.
connect without the need for any significant There is also a need for an established technical For Luzon, within the 2011-2015 period, major The Southern Panay Backbone transmission
transmission reinforcement. These recommended and regulatory framework to ensure reliable and developments in the 230 kV system are expected project, which is part of the Panay Power
connection points are based on the capacity of the efficient transmission. In doing so, the sector to take place including the: Transmission Backbone involves the
substation for the years 201169, 201570 and 202071. needs to overcome the following challenges to lines, which have not been divested and are installation/construction of a total of 97
Benguet Province and San Manuel Substations
accomplish its objectives: the subject of various
Ambuklao-Binga 239 ERC
kVResolutions;
Transmission and, Line in Pangasinan. The project aims to provide N-1
kilometers of 138 kV and 69 kV overhead
Development Challenges Upgrading in Benguet. This project aims contingency
transmission during linemaximum
utilizingdispatch steel of the
tower
1. Need for a unified national transmission 5. Need to identify
to upgrade alternative
the existing linetransmission
in order to generating
structures.plants, The new particularly
transmission HEPs backbone
in North
The major challenge is the management of network capable of supporting a unified grid corridors, as transmission
maintain the N-1 contingency taking facilities such as
into Luzon.
will accommodate load growth and address
transmission congestion primarily due to the which is compliant to N-1 criterion and the lines and drawdown substations
consideration the repowering of Ambuklao in urban the low voltage in southern Panay. In
areas are becoming inadequate. Capacity
problem in acquiring right-of-way for the new competitive retail electricity market system. HEP to a new capacity of 105 MW and also particular,expansion the new facilities for Dasmarias
will avertEHV the
Substation in Cavite in order to continuously
transmission lines and space limitations in existing the proposed expansion of Magat HEP (180 overloading of the Sta. Barbara-Sibalom 69
Plans and Programs meet the N-1 criterion even during prolonged
substations. Such is more evident in Metro Manila, 2. Need for additional primary and secondary MW additional capacity). Thus, during the kV transmission line and the Sta. Barbara
outage of one transformer unit.
which is highly urbanized and geographically system reinforcements capable of addressing Pursuant maximum
to its generation of both
mandate under RA power
9511, plants,
and
Substation in Dingle, Panay Province.
unique as the land area between the Manila Bay the aggressive timeline of new power plants, this project will resolve the
responsibilities under EPIRA and RE Act s well as overloading For the Visayas, several transmission backbone
and Laguna Lake, is relatively narrow. particularly RE. under N-1 contingency condition,
other rules and issuances, the 2012 TDP should i.e, outage For Mindanao,
projects are approved six b(6) major
y ERC transmission
to include:
be ofresponsive
one 230 kV to circuit. the promotion and projects
have been approved by the ERC for
In the Visayas, more indicative power plants are 3. Need to upgrade old and defective equipment development of the needed generation implementation
The Bohol Backbone from 2012-2014, Transmission to include: project,
proposed to be located outside the major load and facilities, such as primary and secondary Binga-San
capacities Manuel 230
nationwide to kV Transmission
meet the future Line which is expected to be completed by 2013.
centers. Majority will be in Panay Island as listed equipment, protection, telecommunication. demand for electricity
project involves the and construction
spur competition
of a new in The
TheUbay-Corella
Aurora-Polanco Transmission
138 kV line is necessary Project, to
in the 2012 Power Development Plan, which is the 40generation
km DC 230and supply sector.
kV transmission line using In prevent
which isthe overloading
intended to serve of the
Ubay-Trinidad
growing power 69
about 278 MW for committed projects and 233 4. Need to expand sub-transmission facilities collaboration with the DOE,
new rightof-way. The project also includes the 2012 TDP shall kV line during outage of Ubay-Alicia 69 kV line
demand of Dipolog and neighboring load
MW for indicative projects. This will result in and upgrade old and heavily-loaded 69 kV ensure thethe absorptive of
installation capacity
switching of the facilities
grid and in segment,
centers, and suchvice
as versa.
Dapitan On City.
the This
other project
hand,
excess capacity inasmuch as Panay Island has a lines, which have not been divested and are the provision
Binga in of Benguetadequate and ancillary
Province and San services
Manuel the new substation
includes the construction of the Polanco in Corella, which is near
needed by the system including the attendant the load center in Tabilaran City, will provide a
system peak demand of around 260 MW in 2011 the subject of various ERC Resolutions. Substations in Pangasinan. The project Substation, that will ensure continuous and
requirements for generating capacities, among new bulk power delivery point in Bohol and
and 248 MW in June 2012. The excess capacity aims to provide N-1 contingency during reliable power supply in the Zamboanga del
others, that will come online within the next few help reduce the load of Ubay Substation. The
cannot be transmitted to Negros Island due to the 5. Need to identify alternative transmission maximum dispatch of the generating plants, Norte area;
years. specific location of the Bohol Backbone
limited capacity of the existing submarine cable corridors, as transmission facilities such as particularly HEPs in North Luzon.
Transmission project is shown in Figure 50.
link. Thus, the Cebu-Negros-Panay (CNP) 230 kV lines and drawdown substations in urban For Luzon, within the 2011-2015 period, major The Butuan-Placer Transmission Project,
Backbone Project is being proposed which may areas are becoming inadequate. Capacity in
developments expansion
the 230 kV for Dasmarias
system are expected EHV which
The Southern is partPanay
of the Backbone
Reliabilitytransmission
Compliance
be implemented in the Third Regulatory Period. Substation
to take place including in Cavite in order to continuously
the: Project which
project, I in Mindanao. The
is part of project
the Panay involves Power
Plans and Programs meet the N-1 criterion even during prolonged the installation ofBackboneinvolves
Transmission the second circuit ofthe the
Considering the sizeable capital expenditures Ambuklao-Binga
outage of one transformer unit.
239kV Transmission Line existing Butuan-Placer 138
installation/construction of a total of 97 kV corridor that
involved in the upgrading of submarine cable Pursuant to its mandate under RA 9511, and Upgrading in Benguet. This project aims to will provide
kilometers of N-1
138 contingency
kV and 69 to kV the existing
overhead
interconnections, the NGCP sees the need to responsibilities under EPIRA and RE Act s well as upgrade
For the Visayas,the existing
several line transmission
in order to maintain
backbone transmission
line and reduce line utilizing loss
transmission steel to furthertower
identify the locations of proposed capacity other rules and issuances, the 2012 TDP should the N-1 contingency
projects are approved by ERC to include: taking into consideration
additions to maintain the supply-demand balance be responsive to the promotion and development the repowering of Ambuklao HEP to a new Figure 50. BOHOL BACKBONE TRANSMISSION
in each grid. This is critical in deciding whether of the needed generation capacities nationwide capacity
The Bohol of 105 MW and Transmission
Backbone also the proposed project,
expansion of Magat HEP
which is expected to be completed by 2013. (180 MW additional
or not a transmission solution, which entails to meet the future demand for electricity and
capacity). Thus, during the maximum
upgrading the submarine cable interconnections spur competition in the generation and supply The Ubay-Corella 138 kV line is necessary to
generation of both power plants, this project
to fully allow import and export of power between sector. In collaboration with the DOE, the 2012 prevent the overloading of Ubay-Trinidad 69
will resolve the overloading under N-1
islands, is more feasible to pursue. TDP shall ensure the absorptive capacity of the kV line during
contingency outagei.e,
condition, of Ubay-Alicia
outage of one 69 kV line
230
grid and the provision of adequate and ancillary segment,
kV circuit. and vice versa. On the other hand,
In Mindanao, the main problem is the deficiency services needed by the system including the new substation in Corella, which is near
in generation. Unless new power plants come into the attendant requirements for generating the load Manuel
Binga-San center in230kV Tabilaran City, will provide
Transmission Line
the grid, the island will continue to experience capacities, among others, that will come online a new
project bulk power
involves delivery point
the construction in Bohol
of a new 40
power shortage especially during long dry season. within the next few years. km and
DC help230 reduce the load ofline
kV transmission Ubayusing Substation.
new
69 Yellow Color capacity of substation for 2011
The specific The
rightof-way. location of the
project also Bohol
includes Backbone
the
70 Blue Color capacity of substation for 2015 installation of switching
Transmission project is shown in Figure 50. facilities in Binga in
71 Green Color capacity of substation for 2020

improve the voltage level in Surigao del overhead line from E.B. Magalona CTS in Negros plant operation, increase the reliability of the both generation and voltage of incoming RE
Norte; and, to Bacolod Substation, is already considered Mindanao Power System, reduce frequency plants has to be resolved.
for accelerated implementation by NGCP. These regulation reserves and make exchange of
The Maramag-Kibawe Transmission Project, facilities will be initially energized at 138 kV and energy during periods of shortfall or surplus in The variable characteristic of wind and solar
which involves the construction of additional are targeted to be completed in time for the power supply possible. poses distinctive challenges to the operation and
138 kV single circuit line to strengthen the commissioning of the first unit of Concepcion planning of the network at significant amounts
existing 138 kV double circuit Maramag- Coal with a capacity of 135 MW by 2015. The creation of a unified Philippine Grid would of integration. With reference to the National
Kibawe transmission line in Bukidnon. In create a more open, liberalized and competitive Renewable Energy Program (NREP) of the DOE
addition, the project is also intended to The other stages will be for later implementation. market since Mindanao-based industry players and in anticipation of the bulk entry of RE plants
relieve the Maramag-Kibawe 138 kV line This will be mainly triggered by generation can participate freely in the WESM in the future. in the upcoming years, the 2012 TDP envisions
from overloading due to the frequent developments in Panay and Toledo City. It will open up more investment opportunities to address the issues in the integration of these
outage of the Agus 2- Kibawe 138 kV line. in Mindanao, both in terms of additional power intermittent or variable RE resources (VRE) to
The project also includes the expansion of For Mindanao, the Leyte - Mindanao generation and industrial loads due to a wider the grid.
Maramag The
structures. and Kibawe Substations.
new transmission backbone Interconnection
kV interconnection Project is divided
facility into two
between phases.
the main market and more secured and sustainable
will accommodate load growth and address Phase 1 involves
grid Luzon the power
and the conductgrid of feasibility study
in the island of power supply. As such, efforts in preparing the Grid Connection
Interconnection
the low voltage Projectsin southern Panay. In onMindoro. This will give Mindoro Island an access
the economic viability of the project. The result Requirements (GCR) for RE, for wind farms
particular, the new facilities will avert the ofto
thea m ore stable
feasibility studyand rwill
eliable
be used source as obasis
f electricity
for the TRANSMISSION PLAN FOR RE and solar PV systems in particular, are being
Inoverloading of the Sta. Barbara-Sibalom 69 kV
view of the increasing power demand in each from t he m ain L uzon g rid.
final configuration of the interconnection project. considered. With the proposed GCR, provisions
transmission
island grid, the line NGCPand is bound the to Sta. Barbara
interconnect feasibility study is expected to be completed
The Section 11 of the RE Law, states that NGCP shall for RE integration in the transmission network
nd
Substation i n D ingle,
the major island grids. For Luzon, the Batangas- P anay P rovince. For Visayas, the Leyte-Bohol Interconnection 2
within 2013. On 15 August 2011, ERC already include the required connection facilities for will be incorporated into the amended Philippine
Mindoro interconnection aims to develop a 230 Circuit NGCP
granted which with is included
Provisional in the list indicative
Authority (PA) to RE-based power facilities in the TDP, provided Grid Code (PGC).
For Mindanao, six major
kV interconnection facility transmission
between the projects main project, is expected
proceed with the implementation of Phase 1. to stabilize supply/demand that such facilities are approved by the DOE.
have been approved by the ERC for requirements. In addition, the overhead
grid Luzon and the power grid in the island of The connection facilities of RE plants, including In addition to the long-term concerns associated
implementation from 2012-2014, to include: transmission backbone must be reinforced and
Mindoro. This will give Mindoro Island an access Phase 2 of the project is the linking of the Visayas the extension of transmission and distribution with transmission expansion planning, there is
even upgraded to higher voltage. These
to a more stable and reliable source of electricity and Mindanao
upratings Grids. The
are necessary interconnection
to meet load growth and is lines, shall be subject only to ancillary services also a need to resolve the short-term planning
The Aurora-Polanco transmission project,
from the main Luzon grid.
which is intended to serve the growing power expected
accommodate to optimize Mindanaos
increased power hydropower
transfer covering such connection. issues associated with the entry of RE plants.
demand of Dipolog and neighboring load between the islands. These issues include, among others, the provision
For Visayas,such
centers, the Leyte-Bohol
as Dapitan Interconnection
City. This project 2nd In developing transmission expansion plans for of ancillary services to manage variability in both
Circuit which
includes the is included
construction in the of list of indicative
the Polanco
Figure 51. PROPOSED LEYTE-MINDANAO
INTERCONNECTION PROJECT (PHASE 2)
the grid, every project included in the TDP is generation and voltage. Studies are currently
projects,
Substation, is expected to stabilize
that will supply/demand
ensure continuous and evaluated vis--vis the following objectives: being conducted, specifically the Renewable
requirements.
reliable power In addition,
supply the overhead
in the Zamboanga del Energy Integration Study (REIS), to determine
Norte area; backbone must be reinforced
transmission Ensure the reliability and stability of the the maximum penetration limit of intermittent
and even upgraded to higher voltage. These grid considering the load variations of RE-based power plants and technical mitigation
The Butuan-Placer Transmission project, which
upratings are necessary to meet load growth intermittent RE resources; to ensure safety and reliability of electricity
is p art
and accommodate o f the Reliability
increasedCompliance power Project transfer I in transmission under the RE Law. The primary
Mindanao.
between the Tislands.
he project involves the installation Ensure that grid demand requirements goal of this study is to determine the impact of
of the second circuit of the existing Butuan- are met by available supply; integrating RE to the demand-supply balance
Placer 138 kV corridor that will provide N-1
The Cebu-Negros-Panay 230kV Backbone project of the grid by considering its intermittent
contingency to the existing line and reduce
which is in the list of new project for the 3rd Minimize the cost of transmission characteristics which are not fully covered in
transmission loss to further improve the
Regulatory
voltage level Period involves
in Surigao del Nthe extension
orte; and, of the investments passed-through to end- the System Impact Study (SIS) conducted for
230 kV transmission
backbone, presently only up users; and, each proposed power plant.
to Cebu, all
The Maramag-Kibawe the way to Panay, in order to project,
Transmission optimize
and fullyinvolves
which utilize the generation
construction capacities all over
of additional Minimize the cost of energy by providing Finally, the different power industry stakeholders
the Visayas grid. As this project will
138 kV single circuit line to strengthen the require huge more opportunities for competition and will be consulted as NGCP formulates additional
CAPEX,
existing the138 project kV will be implemented
double circuit Maramag- in stages mitigating market congestions. regulations in accommodating the entry of
toKibawe
minimize rate impact.
transmission line Stage 1, which
in Bukidnon. will
In these RE resources. There is also the binding
addition,
involve thetinstallation
he project is of also
theintended
second tsubmarine o relieve In addition, the issue associated with provision commitment for continuing research and
cablethe between
Maramag-Kibawe Negros and138 Panay, kV asline
well from
as the of ancillary services to manage variability in studies for the safety and security of the grid.
overloading due to the frequent outage of the
Agus 2- Kibawe 138 kV line. The project also
includes the expansion of Maramag and The Cebu-Negros-Panay 230kV Backbone project
Kibawe Substations. which is in the list of new project for the 3rd
Regulatory Period involves the extension of the
Interconnection Projects 230 kV transmission backbone, presently only up
Missionary Electrification Mainland Palawan; 3i Powergen in the areas The status of the First Wave PSP Areas including
of Marinduque, Tablas Island and Romblon those with no NPPs yet as of period in review
The EPIRA of 2001 has stated under Section 70 commercial viability on an area-by-area basis at Island; DMCI Power Corporation in Masbate such as Occidental Mindoro, Camotes Island,
that the National Power Corporation (NPC) the earliest possible time, including a program to area; Catanduanes Power Generation Inc. and Jolo, Sulu and Bongao, Tawi-Tawi is shown in
shall remain as the national government-owned encourage private sector participation. Sunwest Water and Electric Co. in Catanduanes; Table 48.
and controlled corporation to perform the BIPCOR in the Bantayan Island; S. I. Power
missionary electrification function in remote and On the other hand, to guarantee that prospective Corporation (SIPCOR) in Siquijor; and Coastal The privatization of SPUG service areas, aims
off-grid areas through the Small Power Utilities NPPs possess suitable level of financial and Power in Basilan. Of the 13 NPPs, eight (8) power to improve the financial state of NPC. Since
Group (SPUG) and shall be responsible for technical capacity to participate in the NPC-SPUG plants were fully installed, with only seven (7) power rates in SPUG areas are partly subsidized
providing power generation and its associated privatization program, a competitive selection generating facilities operational and three (3) by the end-users through the UCME charges,
power delivery systems in areas that are not process (CSP) was set in D.C. No. 2004-01-001, other power plants under development. the privatization scheme once materialized
connected in the transmission system As which prescribes the rules and procedures for could help reduce the UCME rates, in effect,
such, the NPC-SPUG has been mandated with private sector participation in existing NPC-SPUG The PSAs of the NPPs are in various stages of lower the power rates of customers served
missionary electrification function to generate areas pursuant to Rule 13 of the EPIRA IRR. approval process with the ERC. by the main grid. Among NPCs priority areas
electricity in far-flung areas where no private
Table 48. STATUS OF FIRST WAVE PSP AREAS (as of June 2012)
entity is willing or able to provide the same QUALIFIED THIRD PARTY (QTP)
service at reasonable cost. First Wave Areas New Power Provider PSP Mode Status
Power One Corp/Mid-island Operational
To ensure that electricity services would also
Additional 10MW Mini-Hydro
To support its undertakings, the NPC-SPUG, reach communities in far-flung areas, the Ormin Power
Partial takeover; operational by 2015
under Rule 13 of the IRR of EPIRA, sources its government likewise launched the QTP program 1. Oriental Mindoro (Full takeover in On-going installation of 16MW wind
2015)
fund from (i) revenues from its sales of electricity in December 2005 through D.C. No. 2005-12-001, PHESI (Philippine Hybrid Energy)
energy (completion by 2015), which is
Phase 1 of the 48 MW Wind Energy
and other services; (ii) universal charge for which prescribes the guidelines for participation Power System (WEPS)
missionary electrification (UCME), a component of QTPs in remote and unviable areas pursuant 2. Occidental Mindoro None None CSP to start
of the power bill charged to all electricity end- to Sections 59 and 70 of EPIRA (detailed Delta P Operational
users, duly determined by the ERC; and, (iii) discussion on the QTP is under the Expanded Rural Palawan Power Generation Operational
3. Mainland Palawan Partial takeover
other funding sources including appropriations Electrification chapter of the Plan). DMCI Power Corporation
Installation of 25MW diesel power plant
from Congress, the utilization of private capital, anticipated by Jan. 2013
With PSA but still no generating
multilateral aids or grants, Official Development First Wave Areas 4. Marinduque 3i Powergen For Full Takeover
equipment installed
Assistance (ODA) Funds and others. With PSA but still no generating
5. Tablas Island 3i Powergen For Full Takeover
The first wave of private sector participation in equipment installed
Performance Assessment 14 areas being serviced by the NPC-SPUG was 6. Romblon Island 3i Powergen For Full Takeover
With PSA and installed power plant but
not operational due to internal problem
opened to NPPs in 2004. Out of the 14 areas, with NPP consortium
PRIVATE SECTOR eight (8) sites are located in Luzon specifically 7. Masbate DMCI Power Corporation For Full Takeover
Switched to 15MW coal-fired power
PARTICIPATION (PSP) in Oriental Mindoro, Occidental Mindoro,

Catanduanes Power
plant (operational by 2015)
Mainland Palawan, Marinduque, Tablas Island, Generation, Inc.

Partial Takeover Operational
8. Catanduanes
NEW POWER PROVIDER (NPP) Romblon Island, Masbate and Catanduanes; Sunwest Water and Electric Co.,
Partial Takeover Operational
Inc. (SUWECO)
three (3) other sites in the Visayas, namely
9. Bantayan Island BIPCOR Full Takeover Operational
Due to the growing electricity requirements Bantayan Island, Camotes Island and Siquijor; 10. Camotes Island None No CSP CELCO opted to remain with NPC
in missionary areas and limited public funds, and lastly, three (3) sites in Mindanao situated 11. Siquijor SIPCOR For Full takeover Waiting for ERCs approval of its PSA
private capital infusion is seen necessary. in the Sulu archipelago- Basilan, Jolo, Sulu and 12. Basilan Coastal Power Development Corp. For Full takeover
With PSA but still no generating
With this, the government has encouraged and Bongao, Tawi-Tawi. equipment installed
No CSP Not feasible for PSP per World Bank-
espoused the entry of the private sector through 13. Jolo, Sulu None
undertaken International Finance Corporation (IFC)
the implementation of the PSP program. The As of the first semester of 2012, 13 NPPs had No CSP Not feasible for PSP per World Bank-
14. Bongao, Tawi-Tawi None
entry of a private entity in areas operated by officially entered into 10 PSP areas, namely: undertaken International Finance Corporation (IFC)
NPC-SPUG is stated under Rule 13, Section 3 Power One Corp./Mid-island, Ormin Power,

Other Areas NPP / QTP PSP Mode Status

(b) of the IRR of R.A. 9136, which asserts that: and Philippine Hybrid Energy (PHESI) in Busuanga, Palawan Calamian Island Power Corp. For Full takeover Waiting for ERCs approval of its PSA
SPUG shall periodically assess the requirements Oriental Mindoro; Delta P, Palawan Power Rio Tuba, Palawan PowerSource Philippines Inc. For Full takeover Fully operational
and prospects for bringing its functions to Generation, and DMCI Power Corporation in
Malapascua Island, Cebu PowerSource Philippines Inc. Full takeover Fully operational
Among NPCs priority areas for privatization in
2012 are the Palawan and Mindoro areas, which SPUG SERVICE AREAS
constitute about 40.0 percent of the power
generated in SPUG areas. As of June 2012, there are about 233 service
areas being managed by SPUG. It is comprised of
These areas will undergo competitive bidding 167 service areas in Luzon, 44 service areas in the
process in accordance with the MOA signed in SPUG SERVICE AREAS EXISTING AREAS
for privatization in 2012 are the Palawan and Region IV-B has the most installed generating
Visayas, and 22 service areas in Mindanao. There
Mindoro areas, which constitute about 40.0
October 2011 between the DOE, NPC and NEA on facilities with 30 power plants, followed by
are 42 ECs and seven (7) DUs operating in these
percent of Pthe
Enhanced power
rivate generated
Sector Participation in SPUG areas.in As
Program of tJune
areas 2012,
hat cover there
the are about
electrification of 3233 service
2 provinces About 31.8 percent or 96 power plants in SPUG ARMM with 15 plants, and Region VIII with 10
Existing NPC-SPUG Areas. areas beingof
consisting managed by SPUG. and
3,934 barangays It is over
comprised 650,000 of service areas are installed in existing areas. Out plants.
These
areas will undergo competitive bidding households.
167 service areas Figure
in 52 shows
Luzon, 44 the
service locations
areas of
in of this figure, 85 are land-based power plants,
process
The said in accordance
MOA provided with the creation
for the MOA signed in the
of a power plants covering the
Visayas, and 22 service areas in Mindanao. SPUG areas in the while the remaining 11 are barge-mounted MINI-GRIDS AND TRANSFERRED AREAS
October 2011
composite PSP between
Steering the DOE, NPCto and
Committee NEAthe
guide on There country. are 42 ECs and seven (7) DUs operating mobile power plants.
concerned
Enhanced agencies Private Sector in studying,
Participationidentifying Program and in these areas that cover the electrification of Accounting for 17.2 percent or an equivalent of
implementing
in Existing NPC-SPUG policies, Areas.
as well as in formulating In terms of facilities, a total of 302 power plants As of June 2012, total rated capacity of power 52 power plants operating in SPUG service areas
32 provinces consisting of 3,934 barangays and
tender documents to accelerate the entry of NPPs with total rated and dependable capacity of 279.9 plants in existing SPUG areas was posted at comprise the mini-grids (or facilities which
over 650,000 households. Figure 52 shows the
in
The SPUG
saidareas.
MOA Further,
providedthe forMOA
the delineated
creation ofthe a locations MW and 202.6 MW respectively, are operating in 272.7 MW while dependable capacity stood at provides both the distribution and generation
of power plants covering the SPUG
responsibilities of each
composite PSP Steering Committee to guide the areas agency on the PSP missionary areas (Table 49). services), including six (6) newly commissioned
in the country. 196.8 MW (Table 50).
program.
concerned agencies in studying, identifying and power plants in the first semester of 2012 (Table

implementing policies, as well as in formulating Figure 52. COVERAGE OF SPUG AREAS Table 50. NUMBER OF POWER PLANTS IN EXISTING 51). Moreover, this percentage includes the
Meanwhile, other service areas, namely AREAS (as of June 2012)
tender documents to accelerate the entry of so called transferred areas, or formerly LGU-
Catanduanes, Romblon, Tablas Island and
NPPs in SPUG
Siquijor, will be areas. Further,
offered thetMOA
following delineated
he Palawan and No. of Rated Dependable operated facilities that were subsequently taken
Region Plants Capacity Capacity
the responsibilities of each agency
Mindoro bidding. Challenging areas such as on theSulu,
PSP Installed (in MW) (in MW)
over by NPC due to the LGUs lack of financial
program. and Basilan, are programmed to be
Tawi-Tawi Total Luzon 52 208.62 153.64 capability to operate.
privatized last. CAR 2 1.19 1.13
II 6 6.04 3.19
Meanwhile, other service areas, namely The rated and dependable capacity of power
III 1 1.93 0.90
USE OF RE IN MISSIONARY
Catanduanes, Romblon, AREAS Tablas Island and IV-A 4 4.75 2.82 plants under this classification stood only at 5.6
Siquijor, will be offered following the Palawan IV-B 30 147.25 108.47 MW and 4.2 MW respectively.
Consistent
and Mindoro with with the
bidding. RE Act of
Challenging areas 2008,
such the as V 9 47.46 37.13
government promotes the use of RE technologies
Sulu, Tawi-Tawi and Basilan, are programmed to
Total Visayas 20 18.75 13.55
PRES MINI-GRIDS
VI 2 0.92 0.90
as sources of electricity not only in the main grid
be privatized last. VII 8 14.15 9.13
but in missionary areas as well. In support of VIII 10 3.68 3.52
Contributing the largest share in terms of
this thrust, ERC issued Resolution No. 2011-21 in Total Mindanao 24 45.33 29.64
USE OF RE IN MISSIONARY AREAS facilities are the mini-grids under the Philippine
August 2011, titled: A Resolution Adopting the XI 3 1.08 1.01
Amended Guidelines for the Setting and Approval

XII 3 6.81 3.34 Rural Electrification Service (PRES) Project,
XIII 3 6.08 4.22
Consistent
of Electricity with the RE
Generation Act
Rates and ofSubsidies
2008, for the which constitute about 51.0 percent or roughly
ARMM 15 31.36 21.07
governmentElectrification
Missionary promotes theAreas. use of RE Said technologies
resolution 154 power plants in SPUG service areas. The
All Existing Areas 96 272.70 196.83
as sources
refined of electricity
the not onlyfor
existing policies in the main and
setting grid PRES project is an electrification project of the
but in missionary areas as well. In
approval of UCME rates and subsidies in SPUG support of DOE and NPC which involves the installation
this thrust, ERC issued Resolution No. 2011-21
areas. In addition, it provided for measures in the Among the major islands, Luzon hosts the most of diesel-powered mini-grids and solar
in August 2011, titled: A Resolution Adopting number of plants (52 power plants) with total photovoltaic (PV) systems in the remote areas
the Amended Guidelines for the Setting and rated and dependable capacity of 208.6 MW and of the Bicol region. The project is in consortium
PHILIPPINE
Approval ofENERGY Electricity PLAN 2012-2030Rates and In terms of facilities, a total of 302 power plants
Generation 115 153.6 MW, respectively. Meanwhile, the rated with French Protocol (NATEXIS and BNP
Subsidies for Missionary Electrification Areas. with total rated and dependable capacity of and dependable capacities of power plants in Paribas) as the financing institution, and Paris
Said resolution refined the existing policies 279.9 MW and 202.6 MW respectively, are the Visayas and Mindanao SPUG areas were Manila Technology Corporation (PAMATEC) as
for setting and approval of UCME rates and operating in missionary areas (Table 49). recorded at 18.8 MW and 13.6 MW, and 45.3 MW the firm in-charge in the system installation. For
subsidies in SPUG areas. In addition, it provided and 29.6 MW, respectively. By region specific, the PRES mini-grids, rated capacity is 1.6 MW
for measures in the availment of cash Table 49. NUMBER OF POWER PLANTS IN SPUG AREAS Table 51. NEWLY COMMISSIONED SPUG POWER PLANTS while dependable capacity is
(as of June 2012)
incentives for developers with existing RE 1.5 MW.
Rated Commissioning
power generating facilities in missionary No. of
%
Rated
Dependable
Plant Name Service Area
Capacity Date
SPUG Areas Power Capacity
areas. To guide the ERC with the execution, Plants
Share
(MW)
Capacity (MW)
Maconacon DPP Isabela Mini-grid 0.12 April 2012 Benefiting from the PRES
the DOE provided a set of policy directions Existing Areas 96 31.79 272.70 196.83 Kirikite DPP Eastern Visayas Mini-grid 0.06 May 2012 project are 17,312 households,
to safeguard the provisions stipulated in the Mini-grids and
52 17.22 5.58 4.23
Libucan Dacu DPP Eastern Visayas Mini-grid 0.08 May 2012 consisting of 5,129 households
Transferred Areas
resolution, more importantly, to ensure its Bagongon DPP Catbalogan Mini-grid 0.05 May 2012 installed with PV solar system
PRES Mini-grids 154 50.99 1.57 1.50 Buluan DPP Catbalogan Mini-grid 0.04 May 2012
effective implementation. and 12,183 households through
TOTAL 302 100 279.85 202.56 Cinco Rama DPP Catbalogan Mini-grid 0.08 May 2012
the system installation. For the PRES mini-grids, SPUG Areas %
1
%
2011 Sem
rated capacity is 1.6 MW while dependable Share
2012
Share
capacity is 1.5 MW. 14 PSP Areas 382.55 82.70 193.11 81.55
Other Luzon 43.62 9.43 24.42 10.31
Other Visayas 22
6.40 1.38 3.41 1.44
Benefiting from the PRES project are 17,312 27.20
Other Mindanao 5.88 14.33 6.05
households, consisting of 5,129 households Mini-Grids 0
1.73 0.37 0.96 0.40
small diesel-fired
installed with PV mini-grid system.
solar system These
and are
12,183 was
PRESgenerated
Mini- from the 140.23
1.06 PSP areas
0.58 followed
0.24 Table 54. AVERAGE PLANT OPERATING HOURS considered more marketable to private entities.
located in 210
households unenergized
through remote barangays
small diesel-fired in
mini-grid byGrids
other
Total Luzon 462.56
SPUG areas with
100.010.3 236.80
percent. 100.0
The (January to June 2012) As such, these areas will be offered to NPPs in the
system.
most of These
the areas are of
located
Masbate in 210
and unenergized
Ticao Island remaining
remaining wwas contributed
as contributed by oby other
ther Visayas
Visayas areas Major Island <8 hours 8 to 23 Hours 24 hours same manner as the 14 first wave areas.
remote
in Region barangays
V. For all in 154
most mini-grids
of the areas
in PRES of areas
at 1.4 atpercent,
1.4 percent, other other Mindanao
Mindanao areas areas at
at 6.1 Luzon 182 36 7
Masbate and Ticao Island in Region V. For all 154
areas, NPC-SPUG acts as an interim QTP until percent,
6.1 percent, mini-grids
mini-grids and andPRES
PRES mini-grids
mini-grids at 0.4
at Visayas 30 12 4 On the other hand, a business franchising
mini-grids
such time in thatPRES areas, QTPs
qualified NPC-SPUG acts as an
are appointed to percent a nd 0 .2 p ercent,
0.4 percent and 0.2 percent, respectively. r espectively. Mindanao 12 10 3 model which aims to raise the service areas
interim QTP
takeover SPUG. until such time that qualified QTPs Total 224 58 14
viability level by attaining at least 1 MW peak
are appointed to takeover SPUG. PEAK DDEMANDEMAND
PEAK Note: excluding the six (6) newly commissioned power plants
load will be developed. Subsequently, this will be

Figure 53. PRES MINI-GRIDS IN MASBATE roughly 75.7 percent or 224 power plants run in introduced in the remaining second wave areas to
Peak demand in SPUG areas reached 137.4 MW in
less than 8 hours per day (Table 54).
Peak demand in SPUG areas reached 137.4 MW raise its marketability to prospective NPPs. Pilot
2011. Bulk of this requirement came from the 14
in 2011. Bulk of this requirement came from implementation of the said business model will
PSP areas which stood at 107.1 MW; followed by
the 14 PSP areas which stood at 107.1 MW;
other Luzon areas at 15.2 MW; other Mindanao
Measurable Sectoral Targets be conducted in El Nido, Palawan, as it has the
followed by other Luzon areas at 15.2 MW; other highest peak demand among the other remaining
areas at 9.3 MW; other Visayas areas at 3.4 MW;
Mindanao areas at 9.3 MW; other Visayas areas
mini-grids at 1.5 MW; and, PRES mini-grids at 0.8 Missionary electrification remains one of the areas.
at 3.4 MW; mini-grids at 1.5 MW; and, PRES priority thrusts of the government and an
MW.
mini-grids
at 0.8 MW. integral part in national economic development. PEAK DEMAND FORECAST
During the first half of 2012, actual peak demand For the planning horizon, the government will
in SPUG areas was logged at 123.1 MW, which is
During the first half of 2012, actual peak demand exert maximum efforts to realize the gradual System peak demand in SPUG areas is expected
POWER
POWER GENERATION
GENERATION already
in SPUG 89.6
areaspercent
was logged of the
atprevious
123.1 MW, years
which peak
is transfer of SPUGs operations to the private to increase from 149.8 MW in 2012 to 399.2 MW
demand. Similarly, peak
already 89.6 percent of the previous years peak demand was highest in sector with the overall goal of improving in 2030 at an annual average growth rate of 6.3
In terms of power generation, SPUG areas the 14 PSP areas with 92.9 M W followed
In terms of power generation, SPUG areas demand. Similarly, peak demand was bhighest
y other services in missionary areas to meet the surging percent.
generated a total of 463 GWh in 2011. Among Luzon a reas a t 1 5.8 M W, o ther M indanao a reas by
at
generated a total of 463 GWh in 2011. Among in the 14 PSP areas with 92.9 MW followed power requirements.
these areas, power generation was highest in the 8.7 MW, other Visayas areas
these areas, power generation was highest in other Luzon areas at 15.8 MW,at other
3.2 MW,
Mindanao mini- From its 149.8 MW forecast in 2012, peak
14 PSP areas reaching a level of 383 GWh or 82.7
the 14 PSP areas reaching a level of 383 GWh
percent of the total gross generation in the small
grids at 1.6 MW, and PRES mini-grids at 0.8 MW
areas at 8.7 MW, other Visayas areas at 3.2 MW,
(Table 53).
SECOND WAVE AREAS demand is foreseen to grow to 202.2 MW in 2015,
or 82.7 percent of the total gross generation
island grids. Subsequently, about 44 GWh or 9.4 mini-grids at 1.6 MW, and PRES mini-grids at 0.8 264.0 MW by 2020, 328.8 MW by 2025 and 399.2

in the small
percent island grids.
was generated Subsequently,
in other about
Luzon areas, 6 MW (Table 53). The Missionary Electrification Development MW by the end of the planning period. Highest
Table 53. SPUG PEAK DEMAND
44 GWh or 9.4 percent was generated
GWh or 1.4 percent in other Visayas areas, and 27 in other Plan (MEDP) 2012-2016 has identified new set peak will occur in Luzon particularly Region IV-B
1st Semester
Luzonor areas,
GWh 6 GWhin orother
5.9 percent 1.4 percent
Mindanao in areas.
other Table 53. SPUG PEAK DEMAND
2011
2012
of areas which shall be opened for private sector during the 20-year period (Table 56).
SPUG Areas
Visayas areas,
Meanwhile, and
gross power 27 GWh or 5.9in percent
generation in
mini-grids MW
2011 % %
1st Semester 2012
MW participation in the next five (5) years of the Table 56. PEAK DEMAND FORECAST IN SPUG AREAS
SPUG Areas Share Share
and the Masbate PRES mini-grids stood at 2 GWh
other Mindanao areas. Meanwhile, gross power MW % Share MW % Share Plans implementation (Table 55). (in MW)
14 PSP Areas 107.11 77.98 92.92 75.50
and 1 GWh,
generation in or a mere and
mini-grids 0.4 the
and Masbate
0.2 percent,
PRES 14 PSP
Other Areas
Luzon 107.11
15.20 77.98
11.07 92.92
15.79 75.50
12.83 REGION 2012 2015 2020 2025 2030
respectively ( Table 5 2).
mini-grids stood at 2 GWh and 1 GWh, or a mere Other
OtherVisayas
Luzon 3.43
15.20 2.50
11.07 3.22
15.79 2.62
12.83
Table 55. SECOND WAVE AREAS FOR PSP
Total
112.04 156.21 203.62 252.82 306.24
0.4 and 0.2 percent, respectively (Table 52). Other
OtherMindanao
Visayas 9.30
3.43 6.77
2.50 8.69
3.22 7.06
2.62
Areas Province Luzon
CAR 0.57 0.65 0.93 1.21 1.48
As of first half of 2012, power generation already Mini-Grids
Other Mindanao
1.47
9.30
1.07
6.77
1.66
8.69
1.35
7.06
1. Kalamansig Sultan Kudarat
PRES Mini-grids 0.84 0.61 0.79 0.64 2. Dinagat Dinagat Province II 1.97 2.36 3.16 4.10 5.24
reached
Table 52.237
SPUG GWh.
GROSS About
POWER 81.6 percent of which
GENERATION Mini-Grids 1.47 1.07 1.66 1.35 III 1.42 2.29 3.11 3.94 4.77
Total SPUG 137.35 100.0 123.07 100.0 3. Ticao Masbate
was generated from the Gross 14 PSP areas followed by
Generation (GWh) PRES Mini-grids 0.84 0.61 0.79 0.64 IV-A 2.90 3.66 4.90 6.13 7.37
4. Roxas Palawan
other
SPUGLuzon
Areas areas with 10.3 percent. 1st Sem The Total SPUG 137.35 100.0 123.07 100.0 5. Basco Batanes IV-B 92.54 130.50 167.61 207.28 250.68
2011 % Share % Share
2012
6. Cuyo Palawan V 12.64 16.75 23.90 30.15 36.70
14 PSP Areas 382.55 82.70 193.11 81.55 Total
7. Polilio Quezon 9.87 12.13 15.99 20.08 24.54
Visayas
PHILIPPINE
Other Luzon ENERGY PLAN 2012-2030
43.6222 9.43 24.42 10.31 117 8. Casiguran Aurora
SPUG OPERATING HOURS 9. Lubang Occidental Mindoro
VI 0.59 0.76 1.06 1.45 1.95
Other Visayas 6.40 1.38 3.41 1.44 VII 6.77 8.29 10.85 13.43 16.18
10. El Nido Palawan VIII 2.51 3.08 4.08 5.20 6.41
Other Mindanao 27.200 5.88 14.33 6.05
Of the 296 power plants operated by SPUG 11. Siasi Sulu Total
27.89 33.85 44.42 55.89 68.43
Mini-Grids 1.73 0.37 0.96 0.40 (excluding the six (6) newly commissioned 12. San Vicente Palawan Mindanao
13. Taytay Palawan IX 0.08 0.14 0.26 0.41 0.64
PRES Mini-Grids 1.06 0.23 0.58 0.24 power plants), only 4.7 percent or 14 facilities 14. Tingloy Batangas XI 0.59 0.72 0.97 1.26 1.59
Total SPUG 462.56 100.0 236.80 100.0 provide 24-hour electricity supply. Most of these 15. Rapu-rapu Albay XII 2.95 3.80 5.11 6.67 8.76
areas are served under the PSP program. About XIII 2.95 3.60 5.27 5.91 6.25
ARMM 21.32 25.58 32.81 41.65 51.19
As of first half of 2012, power generation already 19.6 percent or 58 generating units on the other As programmed in the 2012 MEDP, the first eight Total
reached 237 GWh. About 81.6 percent of which hand, run between eight (8) to 23 hours, while (8) areas exhibit strong demand profiles and are SPUG 149.80 202.18 264.03 328.80 399.21
Areas
By 2015, NPC-SPUG is anticipating the Table 57. PERCENTAGE OF OFF-GRIDS BY PLANNED Table 58. CAPACITY ADDITIONS IN SPUG AREAS (in MW) TRANSMISSION
full takeover of its power generation OPERATING HOURS
Region 2012 2015 1
2020 2
2025
3
20304
Total DEVELOPMENT PLAN
facilities by NPPs in major SPUG service Planned Hours
Percent of Off-Grids
Total Luzon 35.89 25.75 23.41 75.45 38.10 198.60
2012 2015 2020 2025 2030
areas such as Oriental Mindoro and CAR 0.20 - 0.52 0.78 0.36 1.86 BATANGAS-MINDORO
24 27.87 32.86 60.00 64.29 64.29
Palawan in Region IV-B, Catanduanes in 18-20 6.56 7.14 - 8.57 10.00 II 2.60 0.36 0.78 4.83 1.22 9.79 INTERCONNECTION PROJECT
Region V and Siquijor in Region VII. 12-16 26.23 24.29 18.57 17.14 18.57
III 0.75 1.00 0.50 1.50 2.00 5.75
LUZON1
IV-A 1.38 1.47 0.25 3.37 3.26 9.73
8-10 13.11 14.29 - 2.86 -
IV-B 24.17 18.48 17.97 52.45 27.01 140.08 As indicated in the 2011 TDP, the
OPERATING HOURS 6-7 26.23 21.43 21.43 7.14 7.14
V 6.79 4.44 3.39 12.52 4.25 31.39 Batangas-Mindoro interconnection
Average
Operating 15.13 17.99 20.77 21.72 22.07 Total Visayas 7.58 0.42 3.90 11.33 3.43 26.65 project is anticipated to be on stream by
The average operating hours in existing Hours 2014. The transmission project links the
areas including the mini-grids and VI - 0.03 0.40 0.61 0.82 1.86
24 9.09 12.73 20.00 30.91 30.91
island of Mindoro to the Luzon main grid
transferred areas is foreseen (Table 18-20 - - 3.64 - 32.73 VII 6.77 0.26 1.53 7.24 1.20 17.00 through the installation of a 230-kilovolt
57) to significantly improve over the 12-16 9.09 14.55 7.27 34.55 5.45
VISAYAS
VIII 0.81 0.12 1.97 3.47 1.41 7.78 (kV) submarine cable which is seen to
20-year planning period. By 2020, 8-10 9.09 - - 14.55 10.91
Total provide Mindoro with an additional 300
6-7 70.91 69.09 69.09 20.00 20.00 12.59 18.75 18.93 33.00 13.82 97.09
SPUG has programmed that about Mindanao
MW capacity thus strengthening the
Average IX - 0.03 0.25 0.53 0.17 0.98
60.0 percent of Luzons service areas Operating 10.93 12.21 13.52 15.92 17.14 transmission backbone of the island.
(excluding the service areas under the Hours XI 0.28 0.83 2.35 0.88 0.60 4.94
Said interconnection project would entail
PRES project) will be provided with 24 24 21.74 18.75 53.13 65.63 68.75 XII 3.36 1.53 3.00 0.78 2.50 11.17 private investments estimated at PhP
hours of electricity supply. 18-20 4.35 - 6.25 3.13 3.13
XIII 1.75 1.25 4.03 1.78 0.10 8.91 11.0 billion.
MINDANAO
12-16 13.04 34.38 12.50 18.75 15.63

ARMM 7.21 15.13 9.30 29.05 10.45 71.14
For Visayas, most of the service areas 8-10 30.43 18.75 - - -
Total SPUG Upon implementation of the project,
56.06 44.92 46.24 119.78 55.35 322.35
will only be provided with only six (6) 6-7 30.43 28.13 28.13 12.50 12.50 Areas Mindoro Island will have: (1) stable
to seven (7) hours of electricity until Average
1
total capacity addition from 2013 to 2015 and reliable power supply; (2) access to
Operating 12.48 13.27 18.85 20.94 22.08
2020. This unfavorable performance Hours
2
total capacity addition from 2016 to 2020 cheaper power from generators in the Luzon
3
total capacity addition from 2021 to 2025
can be attributed to the large demand in Note: Computed average operating hours include service 4
total capacity addition from 2026 to 2030 grid; and, (3) improved economy brought
the areas comprising the island, which Hours in existing areas and mini-grids. by possible entry of energy investments
due to its projected demand. The region is host
1
excluding the 154 mini-grids under the PRES project
SPUG alone cannot supply considering and business expansions in the tourism and
high costs of fuel and limited resources. to some of the countrys tourist destinations. manufacturing industries.
However, service hours will eventually fuel rates and plant use and losses; and (2)
improve beyond 2020 due to an increase in the transitory guidelines on generation and Meanwhile, as shown in Table 59, planned Development Challenges
islands capacity addition. distribution reliability. The issuance of the capacity additions in small island grids could
transitory guidelines is anticipated by the end display sustainability vis--vis the forecasted With the privatization of NPC assets, the NPC-
In Mindanao, about 60.8 percent of its off-grid of 2012. peak demand. This implies that missionary SPUGs reduced financial allocation from the
will be provided with electricity of not more areas are assured of available power supply national government remains a continuing
than ten (10) hours per day by 2012, while CAPACITY ADDITIONS over the planning period although not all areas challenge to fully carry out the agencys
only 21.7 percent will have 24 hours access to would be provided with 24- hour operation. mandate. The other related concerns include
electricity. However, the percent share of those To meet the increasing electricity demand and the following:
areas with 24-hour operations is expected to further improve the operating hours of power
decrease starting 2015 due to additional service plants in SPUG service areas, an estimated total Table 59. SMALL ISLAND GRID SUPPLY AND DEMAND
Issuance of DOJ opinion dated in January
FORECASTS (in MW)
areas to be covered by SPUG during this year. capacity addition of 322.4 MW are required in 2010 prohibiting NPC to borrow funds and/
But with anticipated increase in its capacity the small island grids from 2012 up to 2030. For 2012 2015 2020 2025 2030
or issue new bonds for funding requirement
additions, SPUG plans to enforce full 24-hour all off-grid areas, a projected 56.1 MW capacity
Dependable
Capacity of Power 184.651 240.71 285.63 331.87 451.65 of SPUG; and
operation in 53.1 percent of its service areas by addition is required starting 2012; 44.9 MW by Plants1
2020 to reach 68.8 percent in 2030. 2015; 46.2 MW by 2020; 119.8 MW by 2025; Capacity Additions 56.06 44.92 46.24 119.78 55.35
Perennial delays in the approval of petitioned
and 55.4 MW by the end of 2030 (Table 58). For
UCME rates and adjustments by the ERC.
2
Total Capacity 240.71 285.63 331.87 451.65 507.00
To further improve SPUGs over-all performance, the entire planning period, Luzon, particularly Peak Demand 149.80 202.18 264.03 328.80 399.21
the DOE is set to issue two (2) Circulars which Region IV-B, will require more capacity additions 1
dependable capacity as of December 2011 Meanwhile, as a result of the series of consultation
cover: (1) transitory guidelines on allowable as compared to the Visayas and Mindanao islands 2
sum of dependable capacity and capacity additions workshop for the formulation of the 2012 MEDP
conducted by the DOE in collaboration with the Lack of interested NPP in some areas; Propose amendment to DOE Circular Promote RE in missionary areas considering
Innovation Energie Dveloppement (IED), the 04-001-01 to enhance PSP capability in the appropriate installation target,
following major problems and challenges in Need for more efficient collection from its determining demand, technology options technology and minimum RE penetration in
missionary electrification were identified, to wit: consumers; and network configuration in missionary missionary areas;
areas, and contracting additional capacity
A. SPUG Need to reduce if not fully eliminate power requirements; Transfer of waived areas or existing
pilferage; and systems to NPC-SPUG upon ERC approval
Need for ERCs timely approval of requested Institutionalize clear policy guidelines of corresponding UCME allocation for these
subsidies or cost adjustments; Lack of technical capacity building in in contracting additional capacities and areas;
formulating load forecasts. facilities;
Outdated equipment, lack of spare parts, Intensify the promotion of investment
fuel shortages and poor maintenance of Use of RE in Missionary Electrification Accelerate privatization of existing NPC- opportunities in SPUG to NPPs/QTPs and
NPC gensets resulting in reduced operating SPUG generating assets and provision of other private entities; and,
hours and power shortages in service areas; Need for priority connection, dispatch and transmission facilities;
and, transmission related infrastructure for RE. Integrate regional development programs,
Collaborate with DOE and NEA in providing through close coordination with Local
Security and peace and order situation in Plans and Programs competency building for DUs/ECs; Government Units, in MEDP to determine
some SPUG service areas (i.e. Sulu and Tawi- the power requirements of future local
Tawi) which deter the entry of NPPs for the In response to the challenges being encountered Implement subsidy graduation program development plans.
PSP program. by SPUG, the following initiatives/measures will and introduce inter-class subsidy (such that
be undertaken by NPC to augment its financial within the same service area, the consumers
B. NPPs resources: with higher electricity consumption subsidize
the power rates of consumers with lower
Contract and subsidy related issues with Appeal for supplemental funding from the electricity consumption) in small island
existing NPPs (e.g. delay in the payment of government in lieu of the issuance of DOJ grids;
UC-ME subsidy by NPC); opinion which prevents the agency from
incurring debt;
Low interest of private sector to invest in
SPUG areas due to poor performance of ECs. Accelerate the privatization of identified
SPUG service areas that are PSP-viable to
C. QTP reduce the agencys incurring losses from
the operation and maintenance expenses
Need to refine QTP guidelines to: (i) expedite of its facilities as well as from the subsidy
approval process; (ii) consider ECs as provided to missionary areas;
eligible QTP; and (iii) ECs as direct recipient
of subsidy from UCME or QTP (subsidies Work for stronger regulatory support from
given to QTPs should be extended to ECs). ERC in coordination with DOE; and
D. DUs/ECs Develop and institutionalize a new business

model for DUs/ECs and private entities.
Need for the DOEs intervention pertaining
to the non-compliance to the Power Supply Meanwhile, to improve the operation of ECs
Agreements (PSAs) by some NPPs; and to attract private sector investments in
missionary areas, SPUG has come up with a list
Need for reliable power supply from NPPs/ of action plan, to wit:
QTPs/NPC;
EPIRA Developments charge; (vi) implementation of institutional Table 61. LIST OF PRIVATIZED GENERATING PLANTS , as of June 2012
change meant to shape up the operations of
Winning
electric cooperatives; and the (vii) declaration Rated
Capacity Location Bid Date Winning Bidder Bid Price
Name of Plant (Million
After ten (10) years of the EPIRA implementation, of the implementation of Retail Competition (MW) US$)
several issues are still confronting the power and Open Access (RCOA) on a phase-in and Talomo 3.50 Davao 25 March 2004 Hydro Electric Development Corp. 1.37
industry, to wit: (i) high cost of electricity; (ii) partial implementation program. Efforts were Agusan 1.60 Agusan 04 June 2004 First Generation Holdings Corp. 1.53
electric power supply security and reliability; also focused in amending the EPIRA particularly Barit 1.80 Camarines Sur 25 June 2004 Peoples Energy Services Inc. 0.48
and (iii) full implementation of market provisions in extending the life of the JCPC and Cawayan 0.40 Sorsogon 30 September 2004 Sorsogon II Electric Cooperative, Inc. 0.41
Loboc 1.20 Bohol 10 November 2004 Santa Clara International Corp. 1.42
competition. Some sectors even clamored for the extension of the implementation of the
Pantabangan-Masiway 112.00 Nueva Ecija 06 September 2006 First Generation Hydro Corp. 129.00
the amendments of certain provisions of the lifeline rate subsidy. Magat 360.00 Isabela 14 December 2006 SN Aboitiz Power 530.00
EPIRA on the premise that it has been ineffective Masinloc 600.00 Zambales 26 July 2007 Masinloc Power Partners Ltd. 930.00
in addressing the said issues.
WHOLESALE ELECTRICITY
Ambuklao-Binga 175.00 Benguet 28 November 2007 SNAP Hydro 325.00
Albay, Laguna and
Tiwi-Makban 747.53 30 July 2008 AP Renewables 446.89
SPOT MARKET (WESM)
Batangas
It may be recalled that EPIRA was signed on 21 Panay and Bohol * 168.5 Iloilo and Bohol 12 November 2008 SPC Power Corporation 5.86
June 2001 with the primary aim of instituting Amlan 0.80 Negros Oriental 10 December 2008 ICS Renewables Inc. 0.23
the needed reforms in the electric power sector The establishment of the WESM has transformed Calaca Coal-Fired
600.00 Batangas 08 July 2009 DMCI Holdings Inc. 361.71
Thermal Power Plant
and curtailing the vast expenditure of the the inherently inefficient monopolistic electric PB 117* 100.00 Agusan Del Norte 31 July 2009 Therma Marine 16.00
government in the sectors development. The power industry to a more efficient and PB 118* 100.00 Compostela Valley 31 July 2009 Therma Marine 14.00
Law likewise envisioned that the private sector competitive trading system thereby stabilizing Limay* 620.00 Limay, Bataan 26 August 2009 San Miguel Energy Corporation 13.50
would provide a competitive environment, supply, demand and price for electricity. Palinpinon-Tongonan
305.00
Negros Oriental and
02 September 2009 Green Core Geothermal Inc. 220.00
Geothermal Power Plants Leyte
which would result in a more reliable, efficient Naga LBGT* 55.00 Cebu 16 October 2009 SPC Power Corporation 1.01
and affordable supply of electricity in the Almost five (5) years of commercial operation, BacMan 150.00 Albay, Sorsogon 05 May 2010 Bac-Man Geothermal Inc. 28.25
country. Given the emerging challenges in the WESM Luzon is now integrated with the Visayas Angat Hydro 218.00 Bulacan 09 October 2012 Korea Water Resources Devt.
Corporation 440.88
sector, more improvements have to be pursued WESM after the latters commercial operation
TOTAL MW to be privatized PHILIPPINES 4,348.33 Total Proceeds $3,467.54
under President Aquinos administration to on 26 December 2010 thus giving the Visayas
Total Luzon and Visayas 4,115.23
ensure timely and effective implementation grid a more efficient and competitive trading
Level of Privatization in Luzon and Visayas 94.64 %
of the structural reforms that may necessitate system.
possible amendments of the Law. *Turned-over IPPs
SOURCE: PSALM
Some of the major highlights of the decade- WESM has provided market signals to investors Some of the major issues that affected the privatization efforts of the government include: (i) the transfer of Angat Hydroelectric
long implementation of EPIRA include: (i) the that resulted in increased number of market Power Plant to the new owner; and, (ii) the resolution on the stored energy and stored energy payments of Bacon-Manito
Geothermal Power Plant (BMGPP). The transfer of Angat Hydroelectric Power Plant to the new owner, the Korea Water Resources
launching of WESM in Luzon and Visayas; (ii) participants for the integrated Luzon and Development Corporation or K-Water, was delayed with the issuance of Status Quo Ante Order by the Supreme Court (SC) on 24
privatization of the NPC generation assets; Visayas market. As of June 2012, the number May 2010. However, in its 09 October 2012 decision, the SC declared as valid and legal the bidding conducted and the Notice of
Award issued by PSALM in favor of the winning bidder. Also, according to the SC decision, the NPC shall continue to be the holder
(iii) transfer of NPC-Independent Power of trading participants totaled 251 consisting of Water Permit No. 6512 issued by the National Water Resources Board (NWRB). The NPC shall authorize K-Water to utilize the
Producer (IPP) to IPP Administrators (IPPA); of 54 generating companies and 197 customer waters in the Angat Dam for hydropower generation subject to the NWRBs rules and regulations governing water right and usage
(iv) concession of the national transmission trading participants.

network; (v) administration of universal
PRIVATIZATION the remaining legal, financial and technical
Table 60. WESM REGISTRATION UPDATE, as of June 2012 requirements for the smooth turn-over of the
Registered The privatization of the remaining NPC/Power privatized power plants and IPP contracts.
Expected Applicant Not Registered
Category WESM Direct Indirect Sector Assets and Liabilities Management
Participants Luzon Visayas Luzon Visayas Luzon Visayas Luzon Visayas (PSALM) Towards the end of June 2012, the governments
Generation Companies 54 28 19 - - 3 3 1 privatization program for the remaining assets,
Private DUs
and LGUs
16 3 3 5 - 2 - 2 1 Corporation generating assets and IPP i.e., generating assets and contracted capacities
Customer ECs 72 26 25 16 3 2 - - - contracts has been deferred following the of IPPs, pursued in accordance with the PSALM
Trading
Bulk users 102 7 6 47 16 21 1 4 - new administrations call for a review of the Boards approved timetable and direction set
Participants
Wholesale privatization plan and the need to address by the DOE consistent with the EPIRA. As of
7 7 - - - - - - -
aggregators
the seasonal supply interruptions. The June 2012, 20 generating plants have been
Total Customer Trading
Participants
197 43 34 68 19 25 1 6 1 developments in the sector are only focused on successfully bid out by PSALM to its private
Total Participants/ Applicants 251 71 53 68 19 28 4 6 2 the continuing activity of PSALM to complete owners with a total aggregate capacity of 4,115.2
Table 62. INDICATIVE PRIVATIZATION SCHEDULE FOR THE APPOINTMENT OF IPP ADMINISTRATOR The remaining 40 Table 63. REMAINING ASSETS FOR PRIVATIZATION, as of June 2012
Plant Name Contracted Capacity (MW) Bid Date Turn Over Date involved sales to private Plant Name Rated Capacity (MW) Bid Date Turn Over Date
Luzon Grid distribution utilities. Owned Generating Plants
Casecnan Multi Purpose Hydro 140.00 2013 2013 Luzon Grid
Benguet Mini Hydro 30.75 2013 2013 TransCo is looking Malaya 650.00 2014 2015
Caliraya-Botocan-Kalayaan Hydro 728.00 2013 2013
forward to the sale of Visayas Grid
Visayas Grid PB 101 32.00
about 1,200 ckt-km 2012 2012
Unified Leyte Geothermal 559.00 2012 2012 PB 102 32.00
Mindanao Grid of sub-transmission PB 103 32.00
SPPC Diesel 50.00
2014 2015
lines and 500 MVA of Cebu Thermal I & 2 (Naga Complex) 109.00
WMPC Diesel 100.00 2013 2013
substation equipment Cebu Diesel (1-6) (Naga Complex) 43.80
Mindanao Coal-Fired 200.00
2015 among 42 interested Mindanao Grid
Mt. Apo 1 Geothermal 44.52 2016
Mt. Apo 2 Geothermal 48.00 PB 104 32.00 2012 2012
distribution utilities
Total 1,900.27 Agus 1&2 260.00
within the next four (4) Agus 4&5 213.00
years. 2014 2015
MW or 94.6 percent of PSALM-owned capacities Agus 6&7 254.00
Pulangi 255.00
in the Luzon and Visayas grids.
Total 1,913.20
Administration of Universal Charge (UC) Decommissioned Plants
Turn-over of NPC-IPP Contracts to IPP Bataan Thermal 0.01 2013 2013
Administrators As June 2012, total collections/remittances to Sucat 0.01 2013 2013
PSALM reached PhP 25.52 billion, PhP 24.75
As of June 2012, IPPA privatization level billion of which was disbursed by PSALM to Mandatory Rate Reduction In 2011, a total of 3,313,831 lifeline customers
already reached 76.9 percent. Table 62 shows NPC-SPUG for environment and watershed with aggregate consumption of 125,804,287
the indicative privatization schedule for the rehabilitation and missionary electrification, Pursuant to Section 72 of the EPIRA, NPC has kilowatt hour already availed of the subsidy,
appointment of IPP administrator as of June respectively. Total interest earnings from continuously granted a PhP 30-centavo/kWh of which 62.6 percent was customers of the
2012. deposits and placements of UC funds reached reduction on electricity rates for residential end- private distribution utilities and the remaining
PhP 0.11 billion, while the UC fund balance was users whose franchised DU sources power from (37.4 percent) from electric cooperatives. Total
Sale of Sub-Transmission Assets (STAs) estimated at about PhP 0.88 billion. NPC. In 2011, total discounts granted by NPC discounts availed by lifeline customers reached
amounted to PhP 676.47 million, of which 64.8 PhP 370,143,527.11, while the total amount
As of June 2012, TransCo already signed PSALM received a total of PhP 5.30 billion in percent was availed by residential customers in of subsidy given by the 8,174,293 non-lifeline
101 sale contracts with 75 distribution UC remittances from collecting entities and Mindanao, 21.9 percent in the Visayas and 13.3 customers amounted to PhP 374,670,175.84.
utilities/electric cooperatives/consortia disbursed the total amount of PhP 5.19 billion percent in Luzon.
amounting to about PhP 5.30 billion covering to NPC-SPUG for missionary electrification.
Lifeline Subsidy Rate COMPETITION
an aggregate length of about 3,700 ckt-kms In compliance with the EPIRA and its IRR and
of sub-transmission lines and 33,000 sub- PSALMs Guidelines and Procedures Governing
transmission structures and 850 MVA of Remittances and Disbursement of the Universal Section 73 of EPIRA states that lifeline subsidy The EPIRA envisions that opening up of the
substation capacity. Of the 101 sales contracts, Charge, the ERC issued on 27 June 2011 the rate will only be implemented for a period of electricity market to competition both at
45 contracts with total sale price of PhP 2.30 Rules and Procedures Governing the Utilization 10 years. Before the program expired in June the wholesale and retail levels shall improve
billion have been approved by the ERC. The and Disbursement of UCEnvironmental Charge 2011, President Aquino signed into law R.A. efficiency in the generation sector, which would
rest of the sales contracts are for ERC filing, (UC-EC) per ERC Resolution No. 18. The NPC 10150 on 21 June 2011, amending Section 73 redound to lower electricity prices. Although
evaluation or approval. filed a petition with the ERC on 14 March 2012 which provides another ten (10) years of lifeline competition at the retail level has not been
for the availment of the environmental share subsidy implementation. However, additional implemented yet, significant developments at
Following the EPIRA provision of extending from UC in the amount of PhP 287.44 million criteria will be observed to ensure that only the wholesale level have been realized during
concessional financing to electric cooperatives, covering CY 2012. No disbursement has been certified poor households will benefit from the the last ten years.
TransCo implemented lease purchase made to NPC for UC-EC since 2009 pending the subsidy. The proposal redefines marginalized
arrangements for a term of 20 years. Of the 101 approval of the petitions filed. On 16 July 2012, end-users as those with electricity loads limited Retail Competition and Open Access (RCOA)
sales contracts, 61 are under lease purchase the ERC Case No. 2007-098 rendered a Decision only to basic lighting, cooling (electric fan) radio,
agreements with 54 electric cooperatives/ authorizing PSALM to release the amount of and television. More than two million low- Recent developments in the privatization of
consortia, valued at about PhP 3.42 billion. PhP 58.83 million to NPC to fund its CY 2007 income households nationwide are expected to NPC generating assets and NPC-IPP contracts
Watershed Management Program. benefit from the discounted electricity rates. prompted the ERC, motu propio, to conduct
evidenciary hearings on the declaration of Several D.C.s were also issued to include: (i) D.C. RCOA trial run will be carried out in March aimed at encouraging greater competition and
compliance to the five pre-conditions set by 2012-02-0002 on 24 February 2012 Appointing 2013, while commercial transactions based attracting private-sector investments in the
Section 31 of EPIRA for the implementation PEMC as Central Registry Body73; and (ii) D.C. on an interim development system will be electric power industry. Such is envisioned to
of RCOA72. As a result, on 06 June 2011, 2012-05-0005 on 09 May 2012 Prescribing the engaged on 26 June 2013. On the other hand, lower power rates and to have a more efficient
ERC issued Resolution No. 10 declaring the General Policies for the Implementation of RCOA. the IT infrastructure is scheduled to be in delivery of electricity supply to end-users.
compliance to EPIRA prerequisites and the place by the last quarter of 2013. In view of the
actual commencement of RCOA on 26 December On 24 September 2012, the DOE and ERC commencement of RCOA, the ERC is finalizing the However, ten (10) years after EPIRA enactment,
2011. Under RCOA, all electricity end-users issued a joint statement that set the initial Transitory Rules for the Initial Implementation the sector still faces several challenges to
with an average monthly peak demand of one implementation of RCOA on 26 December 2012 on of Open Access and Retail Competition to include:
MW for the period of 12 months preceding a phase-in and partial implementation program. ensure a smooth transition from the existing
the declaration date, as certified by the ERC, The first six months of RCOA implementation structure to a competitive environment, as well A. Full Implementation of retail competition
could become contestable customers. They will is envisaged to be a transition period for all as promote the interests of all stakeholders in and open access. Strong policy and
have the right to choose their own electricity concerned parties to ensure a smooth transition the electricity industry. regulatory support is needed for market
suppliers and are enjoined to exercise such to full RCOA implementation. Transition period participants to enjoy the benefit of choice.
right to their full benefit. Likewise, the ERC covers the registration, discussion, trainings Extension of the Life of Joint Congressional Retail rules and transitory rules for the
has started to prepare the necessary regulatory and simulations among suppliers, contestable Power Commission (JCPC) initial implementation of RCOA should be
framework for the implementation of RCOA, customers and other stakeholders. During properly reviewed and shall apply to all
which includes amendment to the rules on the transition, distribution utilities shall continue to In aid of legislation, the JCPC was created to electric power industry participants.
issuance of license to retail electricity suppliers serve contestable customers in their respective set the guidelines and overall framework to
to ensure a level playing field in the competitive franchise area, while contestable customers monitor and ensure the proper implementation B. Proposed amendments to some provisions
retail electricity market. may enter into supply contracts with suppliers of the provision of the law, among others. Based of EPIRA. With its implementation, issues
but such shall only take effect as the end of the on the EPIRA, the Commission shall only exist like power supply security and high cost
On 17 June 2011, the DOE issued D.C. 2011- transition period. For the initial year of the full for a period of ten (10) years following EPIRAs of electricity still confront the Philippine
06-006 titled Creating the Steering Committee RCOA commercial operation, supply contracts effectivity. However, JCPCs life may be extended electric power industry. Many sectors have
Defining the Policies for the Commencement between contestable customers and suppliers through a joint concurrent resolution of both clamoured for the amendments of certain
of Retail Competition and Open Access. This shall have a minimum term of one year. After houses of the legislature considering that the provisions or total abolition of the EPIRA on
is aimed to provide the transition framework the first year, more flexible supply contracts and electric power industry is still transitioning the premise that it has been ineffective to
and synchronize the preparatory actions switching exercise shall be allowed in accordance after ten (10) years of EPIRA implementation. address the said issues. To fully realize the
towards ensuring the sufficiency of existing with the Retail Rules74. Meanwhile, in the event Likewise, the sector is still facing the challenges objectives of EPIRA, several other initiatives
rules, infrastructures and other institutional that a supplier of a contestable customer has of ensuring energy supply and providing will be firmly pursued by the government in
requirements necessary to achieve the goals defaulted on its obligation or fails to provide reasonable power rates to both the investors lieu of EPIRA amendments as follows:
of EPIRA. Such Circular established the RCOA electricity, the franchised DU shall act as the in the power industry and the electricity
Steering Committee Technical Working Group Supplier of Last Resort (SOLR)75. consumers. After due consultation with p Exclusion/exemption of hydro complexes
(RCOA SC-TWG) on 8 July 2011 consisting of three stakeholders, the Senate Committee on Energy in Mindanao Agus and Pulangi from
(3) Sub-groupings, namely: (i) Risk Management; 73 The Central Registry Body refers to the entity in charge issued Senate Joint Resolution No. 9 titled privatization/sale, while the remaining
of the B2B system with the end-in-view of fulfilling an
(ii) Finance; and (iii) Technical Assessment. efficient enrollment and switching by the end-users in the Resolution Extending the Period of Existence of unsold assets (i.e., Caliraya-Botocan-
competitive retail market JCPC, which was signed by President Aquino on Kalayan and Malaya Plant Complex)
On 24 October 2011, the ERC issued a decision 74 Retail Rules and implementing market manuals will govern 21 June 2011. shall be retained as security assets;
the integration of retail competition in the operations
through ERC Case No. 2011-009RM deferring and governance of the WESM, the management of the
the implementation of RCOA in Luzon and transactions of suppliers and contestable customers in Continuing Implementation of Power Sector p Electric Power Crisis provision in which
the WESM, and the operations of the Central Registry
Visayas on the basis of the RCOA SC Resolution Body. Retail rules and implementing manuals will apply Reforms the President of the Philippines, upon
NO. 2011-01, which enumerates unresolved to all electric power industry participants and will cover recommendation of the DOE (as Congress
registration of contestable customers and suppliers,
major policy and operational issues. metering, billing and settlements of supplier transactions. The restructuring of the electricity industry may authorize), may direct for the
72 Retail Competition refers to the provision of electricity
75 SOLR is an event when a supplier of a contestable calls for the separation of the different establishment of additional generating
customer has defaulted on its obligations or fails to provide components of the power sector generation, capacity in case of imminent shortage of
to a Contestable Market by Suppliers through open Access. electricity based on the following reasons: (i) cessation
Open Access refers to the system of allowing any qualified of its operation; (ii) revocation of its license; (iii) non- transmission, distribution and supply. The electricity supply; and,
person the use of transmission, and/or distribution payment of transmission and distribution services; (iv)
system, and associated facilities subject to the payment of
privatization of the NPC, covering both
suspension of its membership in the WESM due to non-
transmission and/or distribution retail wheeling rates duly compliance to WESM Rules and retail market rules; and generation and transmission assets, was
approved by the ERC. (v) such other grounds that may be specified by ERC.
p Conversion of Electric Cooperatives p Resolve the imposition of VAT to power VI. SOCIALLY RESPONSIVE PROGRAMS
provision where cooperatives are given rates including the impact of the LGU
the option to convert into either stock Code to existing and future operations Expanded Rural Electrification
cooperative under the Cooperatives and projects of the power stakeholders;
Development Act (CDA) or stock p Review and validate the operation of Access to electricity is essential in improving Section 70 of EPIRA, on the other hand, directs
corporation under the Corporation distribution utilities and NGCP vis--vis the quality of life of the people as it facilitates the NPC-SPUG in undertaking missionary
Code. However, additional measure is the applicable rate methodology being opportunities for growth and development. electrification or the provision of power
being proposed in view of the various adopted; and, generation and its corresponding delivery
financial constraints faced by the electric Electrification is either done through grid or off- systems to areas that are not connected to the
cooperatives, to wit: p Revisit the mechanism of lifeline subsidy grid connection. When a barangay is provided transmission system.
to really identify the marginal customers with electricity through grid connection, it
In case of electric cooperatives taken who are the real target beneficiary. means that the distribution line has reached the For the planning period, the electrification
over by NEA, NEA shall have the power barangay proper. It may also mean that almost program envisages the following goals: a) 100
to facilitate the conversion of these C. RE Act of 2008. As the implementation is 50.0 percent of potential households in the percent barangay electrification by end 2012; b)
electric cooperatives to be able to still in earlier stages, putting in place the barangay are connected to a DU (i.e. MERALCO) 90 percent household electrification by 2017; and
introduce private sector investment for necessary mechanism to facilitate entry or at least one is connected to other DUs. Off-grid c) 100 percent sitio electrification by 2015.
the rehabilitation and management. NEA of RE sources is of immediate concern. connection pertains to a barangay having about
shall issue the appropriate implementing Harmonization of EPIRA Law with the RE 20 to 30 households availing the connection. Performance Assessment
rules and regulations to carry out this Law will also require strong policy and
provision; Provided that the power of regulatory support from the government Off-grid solutions through renewable energy In determining the 2012 barangay76
NEA to take over electric cooperatives such as the development of RE market forms such as solar home systems (SHS) bring electrification level, the DOE used as reference
shall include instances of delayed or non- policy instruments to include DOE Circular light to far-flung communities in the country and the 2005 Census which reflected 41,97477 as the
payment of transmission, generation, and establishing RE Market and RE Registrar, RE is favorable as well to the environment. It also total number of barangays in the country.
other charges including universal charge. Market Rules, RE Registrar operating rules provides a temporary solution until a community
and RE Market IT infrastructure design. is able to become economically viable to be As of 31 August 2012, the countrys barangay
p Advance the proposed amendments connected to the main grid. electrification level stands at 99.98 percent. In
to the National Electrification 2011 and 2010, the electrification level stood at
Administration Charter to strengthen The government is tasked to ensure that all 99.94 percent and 99.89 percent respectively.
the powers and functions of the agency barangays have access to electricity. The DOE From 27 unenergized barangays in 2011, only
and accelerate the governments rural together with NEA and NPC-SPUG take the lead nine (9) are left to be provided with electricity by
electrification program; in the countrys electrification efforts. end of the year. Mindanao remains the only island
grid with unenergized barangays (Table 64).
The DOE funds electrification projects of both
grid and off-grid areas through the electrification Based on the regional electrification profile
fund (EF) component of Energy Regulations (Table 65), 16 of the 17 regions are already
1-94 (ER 1-94). In addition, the Department 100.0 percent energized. The unenergized
also implemented locally-funded projects (LFPs) barangays of ARMM are located in the provinces
such as the Barangay Electrification Program of Maguindanao and Tawi-Tawi.
(BEP) and Remote Area Electrification Subsidy
76 Section 384 of RA 7160 or the Local Government Code of
(RAES) which aimed at increasing electricity 1991 defines barangay as the basic political unit in the country.
access of barangays/communities. It serves as the primary planning and implementing unit of
government policies, plans, programs, projects and activities in
the community, and as a forum where the collective views of
Meanwhile, NEA is responsible in providing on- the people may be expressed, crystallized and considered, and
disputes amicably be settled.
grid electricity access to communities through
the 119 ECs that it oversees. NEA ensures that 77 Based on 2005 Census, total number of barangays recorded
was at 41,980. Said number was reduced to 41,974 because
these ECs deliver quality electricity services to six barangays had specific implementation issues which are:
their respective franchise areas. barangay is deserted, lies in a permanent danger zone, barangay
was comprised of a group of informal settlers lying on private
property, barangay captain rejected the electrification project
and existing peace and order problem.
Table 64. ELECTRIFICATION LEVEL BY ISLAND GRID, Household Electrification sitios provided with electricity in a span of with assistance from the DOE. These are PSPIs
as of 31 August 2012
90-days with a working budget of PhP 814.00 Malapascua QTP project in Bantayan, Cebu and
Target Energized Balance Electrification Level (%) The government is bent on million. From 2012 2015, it is expected that Semirara Mining Corporations (SMC) QTP project
Luzon 20,486 20,486 0 100.00
achieving 90.0 percent household 30,291 more sitios will be energized by NEA. in Caluyan, Antique.
Visayas 11,442 11,442 0 100.00
Mindanao 10,046 10,037 9 99.91 electrification by 2017. The move
Philippines 41,974 41,965 9 99.98 to bring electricity access at the Private Sector Participation PSPI completed the installation of its Malapascua
Note: Total number of barangays is based on 2005 Census household level was stated as one of
Table 66. ELECTRIFICATION BY FRANCHISE HOLDER, as of 31 August 2012
Community Energizer Platform Private SProject ector Participation
in the 2nd
%
Table 65. ELECTRIFICATION LEVEL BY REGION, as of the objectives under D.C. No. 2003- Based on Franchise the provisions Holder of R.A. Coverage 9136 or the quarter
Energized Balance of 2010.
EnergizedIn April 2011, the installation of
Based on the provisions of R.A.
31 August 2012
04-00478 which was signed then by former Electric Power Industry Reform Act, programs transmission and distribution lines was realized
Electric Cooperatives (ECs) 36,025 36,016 9 99.98
9136 or the Electric Power
Potential
Electrified/
Unelectrified Electrification Energy Secretary Vincent S. Perez. are in MERALCO
place to encourage the entry 4,322 of private 4,322(this was0 achieved 100.00with funding from KEPCO).
Industry Reform Act, programs
Region Completed
Barangays
Barangays
Barangays Level (%) sector PIOUs/LGUs/Others
in rural electrification. The 1,627 QTP and the 1,627Currently, 0 PSPI100.00 is packaging are in place its Certificate
to encourage of the
CAR 1,176 1,176 - 100.00 As of 30 December 2011, household NPP programs
Philippines provide the framework 41,974 to involve 41,965Compliance 9 application
99.98 to ERC. They are
entry of private sector in rural also
I 3,265 3,265 - 100.00
II 2,311 2,311 - 100.00 electrification level stands at 70.2 percent. This the private
Note: sector Total number in the provision
of barangays of electricity
is based on 2005 Censusundertaking project sites identification for their
electrification. The QTP and the
III 3,102 3,102 - 100.00 means that out of the 20.5 million households, services to unviable and missionary
Table 67. HOUSEHOLD ELECTRIFICATION LEVEL, as of December 2011 areas. other QTP projects (initial NPP areas identified
programs are the
provide
IV-A 4,010 4,010 - 100.00
IV-B 1,458 1,458 - 100.00 14.4 million are with electricity connection79 Liminangcong HH and Portframework Barton in tPalawan). o involve the Asprivate
Franchise Unserved
V
NCR
3,469
1,695
3,469
1,695
-
-
100.00
100.00 (Table 67). QualifiedHolder Third Party (QTP) Total HH Served HH
HHfor SMCs initiative to engage as QTP in Antique,
Electrification sector in the provision of
Level
Sub-Total
20,486 20,486 0 100.00 EC's 12,964,878 8,567,980 it has appointed66.09
4,396,898 electricity DMCI
its subsidiary, services
Power, to as unviable
(Luzon) Table 67. HOUSEHOLD ELECTRIFICATION LEVEL,
The EPIRA provides that if a franchised the legal entity to apply as prospective QTP. The
MERALCO 81 5,673,939 4,579,000 1,094,939 80.70 and m issionary a reas.
VI 4,050 4,050 - 100.00 as of December 2011
VII 3,003 3,003 - 100.00 utility Other
is unable DU's
to provide 1,900,211
electricity 1,267,476
services6,124,572 632,735
Antique Electric66.70 Cooperative (ANTECO) issued a
VIII 4,389 4,389 - 100.00 HH Philippines
to remote
20,539,028 14,414,456 70.18
Board Resolution dated 28 April 2011 declaring QTP
Note: and unviable villages, a QTP would
Franchise Unserved
Sub-Total Total HH Served HH Electrification
11,442 11,442 0 100.00 Holder HH
(Visayas) Level be allowed to come in. The QTP program is the barangays of Alegia, Semirara80and Tinogboc
Total number of households is based on 2010 Census
IX 1,904 1,904 - 100.00 ECs 12,964,878 8,567,980 4,396,898 66.09 Data for served number of households is based on the 2011 DDP (PIOUs) and NEA's The EPIRA provides that if a
X 2,020 2,020 - 100.00 designedSOEto(all attract
ECs) alternative service providers in Semirara Island, Antique as unviable and
MERALCO 5,673,939 4,579,000 1,094,939 80.70 franchised utility is unable to
XI 1,160 1,160 - 100.00 and private
Figuresinvestmentsreflected for bothin rural and
potential electrification.
served exclude all the open
DU'sfor QTP by
operated participation.
LGUs The said barangays
XII 1,194 1,194 - 100.00 Other DUs 1,900,211 1,267,476 632,735 66.70 and other. Except for the Concepcion Electric System which declared to be 100% provide electricity services to
ARMM 2,458 2,449 9 99.63 Philippines 20,539,028 14,414,456 6,124,572 70.18
Said program is also
electrified for the HH level an integrated, generated as proposed by SMC toremote service
be its area has
and unviable villages, a
CARAGA 1,310 1,310 - 100.00
and associated distribution system, which about 2,316 QTP households.
would be allowed to come in. The QTP
Note: 79
means Sitio Electrification
Sub-Total
(Mindanao)
10,046 10,037 9 99.91 Total number of households is based on 2010 Census that the QTP shall be responsible for the program is designed to attract alternative service
Total Data for served number of households is based on the 2011 DDP of power and its effective distribution New Power
generation Provider
providers (NPP) investments in rural
and private
(Philippines)
41,974 41,965 9 99.98 (PIOUs) and NEAs SOE (all ECs) Apart
to the area/community. from barangays and households, the electrification. Said program is also an integrated,
Figures reflected for both potential and served exclude all the governments program also extends to sitio
Note: Total number of barangays is based on 2005 Census DUs operated by LGUs and other. Except for the Concepcion The NPPgenerated is another program designeddistribution
and associated to encouragesystem,
Electric System which declared to be 100% electrified for the HH electrification. NEAs data as of 30 June 2012 which means that the QTP shall be responsible for
At present, the countrys pilot QTP is private sector participation in NPC-SPUG areas. As
level reflects that 81,736 out of the 115,092 sitios are
The 119 ECs in the country have achieved 99.98 PowerSource Philippines Inc. (PSPI) which assertedthe generation
in EPIRAs IRR (Rule of 13, power
Section and its effective
b), SPUG
already with electricity translating to a 71.0 distribution to the area/community.
percent energization in their franchise areas. provides 24/7 electricity services to about 1,514 shall periodically assess the requirements and
percent sitio electrification level. for bringing its functions to commercial
Manila Electric Company (MERALCO) on the Sitio80 Electrification households
in Barangay Rio Tuba, Palawan (see prospects
other hand, has already reached 100 percent picture).
In 2011, NEA was able to energize 2,148 sitios viabilityAt present,
on an area-by-area the countrys basis at thepilot earliest QTP is
PowerSource Philippines Inc. (PSPI) which
energization in its covered locations. Private Apart from barangays and households, the throughout the country. This includes the 1,520 possible time, including a program to encourage
provides 24/7 electricity services to about 1,514
investor-owned utilities (PIOUs) together with governments program also extends to sitio The ERC sitios issuedprovided Permanent
a with electricity Authority toof private
in a span 90- sector participation. Correspondingly,
households in Barangay Rio Tuba, Palawan (see
LGUs also recorded 100 percent energization electrification. NEAs data as of 30 June 2012 Operatedays (ATO)
with to a wPSPI
orking for its Rio
budget Tuba
of PhP QTPmillion.
814.00 DOEs issuance of D.C. No. 2004-01-001 in January
picture). The ERC issued a Permanent Authority
level (Table 66). reflects that 81,736 out of the 115,092 sitios ProjectFrom in June 2012
2010. 2015, it is expected
Correspondingly, there that
are30,291
2004 opened all SPUG
to Operate (ATO) areas to PSPI for for
private sector
its Rio Tuba QTP
are already with electricity translating to a 71.0 more
two other sitios
QTP will be eundergoing
projects nergized by preparation
NEA. participation (PSP) and
Project in June 2010. set the procedures for a
Table 66. ELECTRIFICATION BY FRANCHISE HOLDER, percent sitio electrification level. competitive
selection process.
as of 31 August 2012
Initially,
Correspondingly, 14 firstthere waveare areas two other
Franchise
Coverage Energized Balance
% In 2011, NEA was able to energize 2,148 sitios were offered for
QTP projects the NPP. preparation
undergoing For
Holder Energized
Electric
throughout the country. This includes the 1,520 the proposed
with assistance second
from wave areas These
the DOE.
Cooperatives 36,025 36,016 9 99.98 are be
to PSPIs offered, Malapascua 15 areas QTP
were project in
(ECs) 78 The DC pertains to Creating an Expanded Rural Electrification Bantayan, (detailed
identified Cebu and Semirara
discussion onMining
(ER) Team to Manage the Implementation of Rural and
MERALCO 4,322 4,322 0 100.00
Missionary Electrification Program for the Purpose of Achieving Corporations
the NPP and areas offered is under (SMC) QTP project in
PIOUs/LGUs/
Others
1,627 1,627 0 100.00 the Countrys Total Electrification Caluyan, A ntique.
the Missionary Electrification
79 Total number of households is based on 2010 Census. PowerSources Community Energizer Platform in Palawan
Philippines 41,974 41,965 9 99.98 portion of the plan).
80 Defined as a territorial enclave within a barangay which
Note: Total number of barangays is based on 2005 Census may be distant from the barangay center. 81 Section
79 59 of RA 9136 and Rule 14 of the EPIRA-IRR
Defined as a territorial enclave within a barangay which may be
80
distant from the barangay center. Section 59 of RA 9136 and Rule 14 of the EPIRA-IRR
126 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN P HILIPPINE

2012-2030 ENERGY PLAN 2012-2030 127 132
Table 68. DISTRIBUTION OF THE REMAINING UNENERGIZED During the course of the project, The household electrification program intends of innovative service delivery mechanisms
BARANGAYS IN ARMM about 18,003 households benefitted to reach 90.0 percent of the countrys total to increase household connections such as
from the use of decentralized systems households by 2017. Table 63 shows the partnering with DUs in implementing grid and
ARMM Barangays Energized Unenergized % Electrified
particularly solar PV. Solar home annual targets (including potential) for the HH off-grid electrification.
Basilan 208 208 0 100.00 systems were installed on 15,289 HH electrification.
Lanao del
Sur
1,156 1,156 0 100.00
while solar lanterns were used for To ensure the attainment of the household
Maguindanao 481 475 6 98.75
Sulu 410 410 0 100.00
2,714 HH. Moreover, there were public The Department supports this program through electrification targets, the DOE will formulate
Tawi-Tawi 203 200 3 98.52 facility installations of communal PV its ongoing locally-funded project titled the Household Electrification Development
Total 2,458 2,449 9 99.63 facilities which totaled 2,302 during Household Electrification in Off-grid Areas Plan (HEDP) to lay out the households to be
the projects duration. Using Renewable Energy. The project provides programmed for electrification from 2012 to 2017.
Foreign-Assisted Projects on electricity access to 2,000 HH annually by using
Electrification United States Agency for International solar (through SHS) and other available RE The NEA on the other hand will be guided by
Development (USAID) Alliance for Mindanao sources (least cost) specific to an off-grid area. its Sitio Electrification Plan to achieve the 100
Rural Power Project (RPP) Off-grid Renewable Energy (AMORE) percent energization of sitios by 2015. NEA will
On the other hand, NEA will undertake its be provided with an annual allocation of PhP
The RPP with funding support from the World The AMORE was a partnership between Sitio Electrification Program (SEP) which has 2.00 billion to be sourced from the Malampaya
Bank, GEF, and DOE aimed to support the USAID, Mirant Philippines, ARMM, Winrock identified about 4,487 sitios as of 2012 as fund to carry out the task.
implementation of reforms and improve the International and the DOE. The program recipients of electricity services (Table 70).
quality of life in rural areas of the country provided electricity to conflict-affected and off- For the planning horizon 2012 - 2030, it is
through adequate, affordable and reliable grid areas in Mindanao using renewable energy Infrastructure support will also be vital in expected that the entire country will have full
energy services, in partnership with the private systems. In 2009, 28 barangays in the areas attaining total barangay electrification. From access to electricity.
sector. The RPP promoted the use of sustainable of Maguindanao, Zamboanga del Norte and Sulu 2012 2013 about 3,827 ckt-kms of distribution
and least-cost decentralized electrification were energized through Solar PV systems. In lines may necessitate expansion. Meanwhile, Table 70. TARGET NO. OF SITIOS BASED ON NEAS
SITIO ELECTRIFICATION PROGRAM
solutions through public-private partnerships addition, two (2) barangays namely Karim- grid areas may also require an additional 1,295
and investments. Minabay and Tubak in the areas of Shariff MVA of substation capacities for the same Year No. of Sitios
Kabunsuan and Maguindanao benefitted from period. Distribution line rehabilitation to about 2011 1,520
RPP was implemented by two agencies, the DOE village hydro electrification project. 2,950 ckt-kms may also be needed to deliver 2012 4,487
through its Project Management Office (PMO) reliable and efficient supply of electricity (Table 2013 3,783
and the Development Bank of the Philippines The project was also responsible for organizing 71). 2014 12,114
PMO. The Project became effective on 6 May and training the members of the community 2015 10,537
2004. Following an amendment to the GEF into having a Barangay Renewable Energy Development Challenges Total 32,441
Grant Agreement in October 2009, the closing and Community Development Associations
Table 71. PROJECTED INFRASTRUCTURE REQUIREMENTS,
date of the said Grant was extended from 31 (BRECDAs). The BRECDA is responsible for One of the challenges identified in the effective 2011-2020
December 2009 to 31 December 2011. The operating and maintaining the system. The delivery of electricity services to communities
extension granted allowed for more time to program also taught the community to pursue are the operational and procedural delays that Year
Expansion Substation Rehabilitation
(ckt.-kms) (MVA) (ckt.-kms)
complete ongoing activities and to pilot new other development projects. affect project completion.
2011 5,230 1,929 1,666
service delivery mechanisms that are promising
and sustainable. Measurable Sectoral Targets These delays in project completion are attributed 2012 2,229 696 1,675
to factors such as right-of-way (ROW) problems 2013 1,598 599 1,275
Table 69. HOUSEHOLD ELECTRIFICATION TARGETS, 2012-2017 The DOE will energize the nine (9) and stringent permitting, and approval process 2014 1,263 556 1,319
Total Annual Served Unserved % HH

remaining unenergized barangays for household connections. 2015 1,317 80 687
Year
Households* Target Households Households Electrified located in Mindanao by end of 2012.
Plans and Programs
2016 594 156 360
2011 20,539,028 14,414,456 6,124,572 70.2 Table 62 shows the ARMM provinces
2012 20,912,838 918,177 15,332,633 5,580,205 73.3 still with the unenergized barangays. 2017 526 70 176
2013 21,293,452 974,863 16,307,496 4,985,956 76.6 The DOE will strengthen its coordination with 2018 465 60 207
2014 21,680,992 1,006,874 17,314,370 4,366,622 79.9
LGUs and other concerned agencies to facilitate 2019 467 50 145
2015 22,075,586 1,054,958 18,369,328 3,706,258 83.2
the timely completion of projects. It will also 2020 264 30 106
2016 22,437,626 1,071,038 19,440,366 2,997,260 86.6
2017 22,805,603 1,073,671 20,514,037 2,291,566 90.0
pursue the development and implementation
Total 13,953 4,226 7,616
* Based on 2010 Census
Benefits to Host Communities For the period in review, RWMHEEF-supported generation companies and/or energy resource
projects include water system, purchase of developers are used for projects under EF, DLF
health equipment (birthing, sewerage treatment, and RWMHEEF. As part of its mandate, the
As specified under ER 1-94, the DOE ensures million. On a per fund type basis, EF had the medical, automated biochemistry analyser, DOE conducted inspection and assessment of
that communities hosting generating facilities most projects approved with 492 amounting to x-ray accessories, microscope, abdominal 82 electrification and 22 non-electrification
or energy resource development projects PhP 333.59 million. DLF follows with 40 projects instrument, electrolyte analyser, haemoglobin projects in the first half of 2012 to monitor
are benefited82. It is a way of recognizing the (equivalent to PhP 135.64 million) while the analyser, dental chair and blood pressure the progress of LGUs or proponents on their
contribution of host communities for sharing 36 RWMHEEF projects amounted to PhP 97.63 monitoring apparatus), construction of health respective project implementation. In 2011,
and using their territory to put up generating million. In 2011, 372 projects were approved center, reforestation, solid waste management this was carried out to 44 electrification and 44
facilities to energize the rest of the country. by the Department which was equivalent to PhP (acquisition of dump truck), purchase of non-electrification projects. Moreover, in 2010,
288.38 million (Table 73). ambulance and sanitation (construction of 50 electrification and 40 non-electrification
ER 1-94 provides for funds that can be accessed public toilet). These projects are in Nueva projects were inspected and assessed.
by host communities to further foster progress The various projects supported by the DLF Vizcaya, Ifugao, Isabela, Pangasinan, Batangas,
in their respective areas. Availment of such component of ER 1-94 for first half of 2012 Antipolo, Quezon, Albay, Leyte, Bukidnon, Lanao Development Challenges
benefits requires host communities to submit includes infrastructure and support facilities del Sur and Sarangani.
project proposals which may be under any of construction (road, rural health unit, legislative Based on consultations with various
the following: EF, development and livelihood building, seawall/riprap, street extension, Common projects funded through RWMHEEF in stakeholders, following were the issues raised
fund (DLF) and reforestation, watershed drainage system, dump site, arc and sidewalk 2011 involve health and sanitation (construction concerning the benefits to host communities:
management, health and/or environment pavement, bridge, school, administration of health center, purchase of ambulance and (a) review of ER 1-94 provisions to make it
enhancement fund (RWMHEEF). building, sports facility, eco-park), procurement e-mobile clinic), solid waste management more responsive to emerging issues such as
of vehicle and equipment, livelihood (catering (acquisition of garbage truck/dump truck, percentage sharing scheme of the three (3)
Performance Assessment entrepreneurship, rubber tree agro-forest, construction of perimeter fence in dump site), components; identification of project evaluation
carabao dispersal, rag making, tricycle rent-to- irrigation system, fire fighting system and criteria; and, resolution of geographic boundary
From the inception of ER 1-94 up to June own) and street lighting. Said projects are to construction of support infrastructures (multi- issues with DILG to address claims and
2012, 5,470 projects were already approved be implemented in Ifugao, Isabela, Zambales, purpose hall/day care center). Said projects are disputes among adjacent host communities; (b)
amounting to PhP 5.46 billion (Table 72). Most Pangasinan, Batangas, Rizal, Albay, Sorsogon, to be implemented in Zambales, Bataan, Albay, promotion of transparency and simplification
of these are EF projects which comprises about Laguna, Quezon, Cebu, Leyte and Bukidnon. Laguna, Quezon, Batangas and Leyte. in the process of availing ER 1-94 funds and
61.8 percent of the total. explore the possibility of the direct release of
Table 72. APPROVED ER 1-94 PROJECTS, 1995 to June 2012
In 2011 DLF funded projects include As part of project management and to ensure LGU shares to the host communities; and (c)
construction and enhancement of support that accruing financial benefits from generating conduct of regular multi-stakeholder dialogue to
Type of Project Number Amount (In Billion)
infrastructures (barangay road, materials facilities are accounted, the DOE has opened a promote social acceptability of energy projects
Electrification 3,382 3.03
Development and Livelihood 1,106 1.11
recovery facility or MRF, renovation/ total of 633 trust accounts from the inception and raise awareness on their ER 1-94 accrued
Reforestation, Watershed extension of covered court, road concreting), of ER 1-94 up to June 2012. A total of 25 trust benefits.
Management, Health and/or 982 1.32 procurement of vehicle and equipment accounts were opened in the first half of 2012
Environment Enhancement
TOTAL 5,470 5.46
(service vehicle, dump trucks, motor boat while in 2011, 48 were opened. Plans and Programs
engine), livelihood programs (sagwan/
For the first half of 2012, the DOE approved a banca, local carabao, free range chicken The establishment of trust accounts for In the short to medium term, the following
total of 568 projects amounting to PhP 566.86 and native chicken dispersal programs) and generating facilities, generation companies action plans will be carried out: (a) review of
streetlighting. These and/or energy resource developers is stipulated the percentage allocation scheme of ER 1-94
Table 73. SUMMARY OF APPROVED PROJECTS IN ER 1-94
projects are mostly to be in Rule 29, Section 5 of the EPIRA-IRR, which components especially for highly urbanized
2010
Amount
2011 2012 (January to June) implemented in Quezon, states that the DOE shall establish trust account areas; (b) enhancing and streamlining the
Fund Type No. of
Approved
(in
No. of Amount No.
Approved (in Million Approved
of Amount
(in Million
Batangas, Leyte, Negros specific for EF, DLF, RWMHEEF in the name of the evaluation and approval process for projects
Projects
Million
Pesos)
Projects Pesos) Projects Pesos) Oriental and North DOE and the generation facilities or generation funded by ER 1-94; (c) regular IEC campaign on
EF 232 332.13 302 156.99 492 333.59 Cotabato. company and/or energy resource developer. ER 1-94 to concerned energy stakeholders; and,
DLF 24 70.57 46 59.74 40 135.64
RWMHEEF 21 55.18 24 71.65 36 97.63 Section 7 of Rule 29, likewise specifies that the (d) constant coordination with DILG and other
TOTAL 277 457.88 372 288.38 568 566.86 administration of EF, DLF, RWMHEEF shall be concerned agencies.
82 Section 5 (i) of R.A. 7638 or the Department of Energy Act of
undertaken by the Department. Funds drawn
1992, Section 66 of RA 9136 or the Electric Power Industry from the electricity sales of generation facilities,
Reform Act (EPIRA), and Rule 29 of the EPIRA-IRR
Alternative Fuels Bioenergy Corporation, the 3rd bioethanol plant wit: (a) D.O. 2007-05-006 instituting the National
in the country located in the province of Negros Biofuels Program; (b) Joint Administrative Order
Occidental, started its commercial operation in (JAO) No. 2008-1, Series of 2008, prescribing
The critical role of alternative energy fuels is with Notice to Proceed to three (3) bioethanol June 2011. Said plant has a total production the Guidelines Governing the Biofuel Feedstock
never more apparent than now as the country proponents. It has also endorsed 48 projects/ capacity of 30 million liters annually. Production and Biofuels and Biofuel Blends
faces a rising demand for energy and a clamor companies to the Securities and Exchange Production, Distribution and Sale under R.A. 9367;
to mitigate climate change. Accordingly, Commission for corporate registration and to Further, in August 2012, the DOE accredited the (c) D.C. 2009-02-0002 mandating a Minimum
governments policies and programs on the Board of Investments (BOI) for applicable Green Future Innovation, Inc., which is located in of 2.0 Percent Blend of Biodiesel in all Diesel and
alternative energy are geared towards weaning incentives under the Biofuels Law. the province of Isabela. Said plant has a capacity 5.0 percent Bioethanol in Annual Total Volume of
the country from its dependence on highly to produce about 54 million liters of bioethanol Gasoline; and, (d) Memorandum Circular (M.C.)
volatile oil import, and diversifying from The nine (9) biodiesel producers as monitored annually. Similarly, by 2013, additional two (2) No. 184, Directing All Departments, Bureaus, Offices
conventional fuels to indigenous renewable and by the DOE have a combined production capacity ethanol facilities with a combined annual capacity and Instrumentalities of the Government, including
more environment-friendly energy resources of 392.6 million liters per year. In terms of of 79.4 million liters will be available with the Government-Owned and Controlled Corporations,
that can contribute to the achievement of goals market demand, the total biodiesel (CME) blend awarding of Certificate of Registration with to Incorporate the Use of Ten Percent Bioethanol by
related to climate change. sales declined to 122.5 million liters in 2011 Notice to Proceed to Cavite Biofuels Producers Volume in their Gasoline Requirements.
from 124.5 million liters in 2010. The decline in Inc., and Canlaon Alcogreen Agro Industrial Corp.
Following the passage of R.A. 9367 or the sales can be attributed to the high cost of diesel Among the provisions of the JAO is the creation
Biofuels Act of 2006, as well as developments fuel in the petroleum market. Actual diesel fuel On 06 February 2011, the DOE issued D.C. No. of a One-Stop-Shop for the biofuels investors.
in the use of Compressed Natural Gas and Auto- displacement from biodiesel sales in 2010 and 2011-02-0001 titled Mandatory Use of Biofuels The One-Stop-Shop, to be established within the
LPG, the government will embark on attaining 2011 can be translated to equivalent foreign Blend. Beginning 06 August 2011, the said D.C. premises of the Sugar Regulatory Administration
long-term sustainability in alternative energy exchange savings of US$ 70.74 million and US$ has increased the blend of bioethanol to 10.0 (SRA) in Diliman, Quezon City, will consolidate
supply, development and utilization. 94.96 million, respectively. During the first percent. This transition period shall allow the services of the National Biofuels Board
semester of 2012, biodiesel sales already stood all oil companies to put in place appropriate (NBB) member agencies to ensure smooth
Performance Assessment at 67.0 million liters with equivalent foreign adjustments including blending methodologies and harmonized assistance to its clientele.
exchange savings of US$ 54.16 million.83 and facilities at their respective refineries, depots The creation of NBB was mandated under the
Biofuels Program and blending facilities that are in accordance Biofuels Act of 2006 with the primary task to
On the other hand, the Leyte Agri Corporation, with duly accepted international standards and monitor and evaluate the implementation of the
The passage of R.A. 9367, An Act to Direct the the countrys first ethanol facility and San the Philippine National Standards (PNS). National Biofuels Program.
Use of Biofuels, Establishing for this Purpose the Carlos Bioenergy Inc., Southeast Asias first
Biofuels Program, Appropriating Funds thereof, dedicated ethanol distillery with an integrated Research and Development Support The DOE also conducted consultations with
and for other Purposes, otherwise known as the co-generation power plant,84 have a combined biofuel producers, oil companies, member
Biofuels Act of 2006 is a major policy leap in production capacity of up to 49 million liters of To serve the technical requirements of the agencies of the NBB and other concerned
harnessing the countrys domestic alternative ethanol annually. Both ethanol plants decreased program and ensure continuous research and institutions with regard to various policy
energy resources. More than revitalizing the their total sales from 9.2 million liters in 2010 to development, the DOE provided counterpart initiatives such as Guidelines on Production,
countrys coconut and sugar industries, the law 2.9 million liters in 2011. Such significant decline funding of PhP 50.00 million for the Storage and Sale of Biofuels, Revenue Regulations
has provided more livelihood opportunities in sales was the result of the increasing price of establishment of a vehicle testing facility located on the Sale of Locally-Produced Biofuels, and
and higher incomes to farmers and the rural sugarcane feedstock and the escalating price of at the Department of Mechanical Engineering Guidelines on the Social Amelioration Welfare
population in the countryside. The development ethanol-blend gasoline. In first half of 2012, total Laboratory, UP-Diliman, Quezon City. Roundtable Program for Coconut Workers under the Biofuels
of marginalized and idle lands also resulted in sales boost up again to 20.7 million liters. Sales discussions with stakeholders on technical Law. Likewise, coordination with the PIA
promotion of agribusiness and other potential of local ethanol production could be translated verification and relevance of emerging biofuel was undertaken on the development of a
investments in rural areas. to equivalent foreign exchange savings of US$ technologies are also integral part of the DOEs comprehensive information and communication
5.28 million in 2010, US$2.17 million in 2011 initiatives on research and development. plan for alternative fuels.
Program Development (Evaluation, and US$ 15.81 million in first semester of 2012
Accreditation and Monitoring) from gasoline displacement.85 In addition, Roxol Policy Issuances Natural Gas Vehicle Program for Public
83 ADO Import cost per barrel, FY2010 - US$90.338/ FY2011 US$
Transport (NGVPPT)
As of first semester of 2012, the DOE has With the goal of sustaining the growth of the
123.248/ FY2012 (1st half) US$128.490
accredited 13 biofuel producers (nine (9) for 84 Leyte Agri Corp started operation on 29 July 2008; San Carlos alternative fuels sector and improving governance, As of June 2012, seven (7) bus operators have
biodiesel and four (4) for bioethanol) and Bioenergy Energy Inc. on 03 March 2009
the following policy issuances were effected, to been accredited for CNG bus operation. Of the 61
85 ULG Import cost per barrel, FY 2010 -US$91.256/ FY2011-
issued three (3) Certificates of Registration US$120.369/ FY2012-US$121.648
CNG public utility buses already in the country, Refueling Stations have developed three (3) The DOE regularly conducts monitoring as well Biofuels
41 are now plying the routes of Southern Luzon sets of standards for the implementation of as promotion of EV technology in the country.
and Metro Manila. Additional six (6) buses had the autogas industry, namely: (1) Road Vehicles To date, 623 of various types of EV are being The favorable policy environment now in place in
complied with the requirements for the issuance - Automotive LPG components Containers; demonstrated nationwide. In January 2012, the terms of program development and fiscal regime
of safety certificates as of February 2011. (2) Approval of specific equipment of motor DOE launched its Bright Now! Do Right. Be Bright. will result in a steady influx of investments in
Technical inspection and on-road performance vehicles using liquified petroleum gases in their Go E-trike! Design-an-Electric Tricycle contest the biofuels industry. By 2015, the government
testing runs have been conducted for the other propulsion system and approval of a vehicle fitted to encourage and promote the creativity and targets the 5.0 percent biodiesel blend in the
remaining CNG buses. The CNG Mother-refueling with specific equipment for the use of liquified innovativeness of young Filipinos in crafting the market, in coordination with the NBB and with
Station and the Daughter Station are operating in petroleum gases in its propulsion system with Philippine version of the so called Green Vehicle. due consideration on supply availability, price
Batangas and Bian, Laguna, respectively. regard to the installation of such equipment; and, In March 2012, and 10 winners were awarded by and quality of biodiesel including blending,
(3) Auto-LPG Dispensing Service Stations. the DOE out of 180 entries that competed. infrastructure and logistics. With diesel demand
One (1) CA was issued to KL CNG Bus Transport of 7,343.1 million liters (6,224.8 KTOE), the 5.0
Corporation in June 2011. Technology Several IEC activities on the Safety Rules Other Emerging Technologies percent blend is expected to displace around
assessment of refueling station equipment of and Regulations on the Use of Auto-LPG were 367.2 million liters (300.9 KTOE) of fuel. By 2020,
Intermech was also conducted and the training conducted in the cities of Cebu, Davao, Iloilo, As part of its continuing R&D on alternative fuels, the blend will increase to 10.0 percent displacing
of CNG drivers from HM Transport, Inc. and Cagayan De Oro, Naga, Palawan and Cebu to the DOE conducted promotion, demonstration a total of 792.3 million liters (649.4 KTOE) of
Greenstar Express on CNG fuel and CNG bus educate the general public and to promote auto- and technical presentations of hybrid engine diesel fuel. And with mandated blend to further
operation was observed. LPG as a legitimate, effective, and safe alternative technology in educational institutions such as accelerate to 20.0 percent blend by 2025, fuel
fuel. These undertakings were organized by the the Technological University of the Philippines displacement will reach about 1,738.8 million
Auto-LPG Program DOE in cooperation with DTI-BPS, Department (TUP), University of Perpetual Help System liters (1,425.0 KTOE) and 1,806.1 million liters
of Transportation and Communication-Land in Laguna and De La Salle University (DLSU), (1,480.3 KTOE) in 2030. Correspondingly, given
In 2011, there were about 19,052 converted taxi Transportation Office (DOTC-LTO), Department among others. Other initiatives include the the aggregate production capacity of existing
vehicles nationwide running on LPG from 17,500 of Interior and Local Government-Bureau of development and utilization of hydrogen (fuel biodiesel, the 10.0 percent blend will require
units in 2010.86 The increase in converted Fire Protection (DILG-BFP), and Department of cells) and solar-powered vehicles. 10 additional biodiesel plants by 2020, while
vehicles was complemented by 219 auto-LPG Science and Technology (DOST). the 20.0 percent blend by 2025 will necessitate
dispensing stations (67 garage-based). Measurable Sectoral Targets additional 20 plants. Meanwhile, a total of 33
E-Vehicle Program additional biodiesel plants will be required for
In support to the Auto-LPG Program of the 30.0 Percent (30%) of all Public Utility the entire planning period to cater for the supply
government, the Development Bank of the The EV technology is being demonstrated in Vehicles (PUVs) Nationwide running on and demand of the said fuel. Each of the required
Philippines (DBP) has included auto-LPG various cities and municipalities Makati, Taguig, Alternative Fuels by 2030 additional biodiesel plant will have a capacity of
initiative in its Clean Alternative Transport Fuel Mandaluyong, Quezon, Puerto Princesa, Davao about 44 million liters per annum. Considering
Financing Program, which provides reasonable and Surigao del Norte. In September 2011, the Realizing the potential contribution of the supply availability and price, the blend may
financing package for auto-LPG related activities DOE participated in the APEC Energy Policy alternative fuels to help reduce the countrys be further increased beyond 2030 (Table 74).
such as acquisition of auto-LPG vehicles. The Roundtable and the Joint Transportation and economic cost from importing fossil fuel and
LTFRB also extended the number of years of Energy Ministerial Conference in California, promote clean energy, the government will On the other hand, the nationwide 10.0 percent
franchise for taxis that converted to auto-LPG USA in which one of the major goals is to accelerate the development of alternative fuels bioethanol blend by volume into all gasoline
by two (2) years (e.g. from original franchise move the APEC member countries87 towards a over the planning horizon. With the goal of fuel commenced in 2011 will have equivalent
contract of 13 years plus the extension of 2 sustainable, energy efficient and low-carbon transforming 30.0 percent
years). These schemes promoted large scale transport future. The DOE emphasized the of all PUVs running fully on Table 74. BIODIESEL MEASURABLE TARGETS
conversion of taxi fleets and encourage new government initiatives to scale-up the EV conventional fuels into Public Additional
Biodiesel Supply Requirement /
player participation in the program. Program and promote its importance in reducing Utility Alternative Fueled- Year Diesel Demand
Blends Fuel Displacement
Biodiesel
(In Million Liters) Plants
the countrys vulnerability to oil price hike and Vehicles (PUAFVs), the DOE (Targets) (In Million Liters)
Required
On the other hand, the DOE and the Department carbon emission. has a comprehensive set of 2012 6,922.85 (5,868.52 KTOE) 2% 138.46 (113.48 KTOE) -
of Trade and Industry-Bureau of Product targets for various potential 2015 7,343.10 (6,224.76 KTOE) 5% 367.15 (300.91 KTOE) -
Standards (DTI-BPS) in cooperation with other alternative fuels which can 2020 7,923.37 (6,717.66 KTOE) 10% 792.34 (649.38 KTOE) 10
2025 8,693.73 (7,369.70 KTOE) 20% 1,738.75 (1,425.03 KTOE) 20
concerned agencies, private sector and Technical 87 APEC member economies are Australia, Brunei, Canada, Chile, be utilized, adopted and 2030 9,030.68 (7,655.34 KTOE) 20% 1,806.14 (1,480.26 KTOE) -
Committees on Cylinders, Road Vehicles and China, Hong Kong-China, Indonesia, Japan, Korea, Malaysia, introduced in the country.
Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Note: Total supply requirement of biodiesel is equal to total diesel to be displaced
Russia, Singapore, Chinese Taipei, Thailand, United States of Aggregate annual capacity of existing accredited biodiesel plants = 423.62 million liters
86 Source: LTFRB America and Vietnam. Annual capacity of each required bioethanol plant = 44 million liters
Table 75. BIOETHANOL MEASURABLE TARGETS and logistics, and flexi-fuel Table 78. NGVPPT (CNG BUSES) MEASURABLE TARGETS
Additional
vehicle technology. No. of CNG Buses and Refilling Stations
Bioethanol Supply Requirement / Fuel CNG
Gasoline Demand Bioethanol Luzon Visayas Mindanao
Year Blend Fuel Displacement Total Displacement Consumption
(In Million Liters) Plants Year
(Target) (In Million Liters)
Required
In terms of plant production CNG Refilling CNG Refilling CNG Refilling (CNG DLE (In Million
Buses) (In million liters) Liters)
2012 3,730.67 (2,923.02 KTOE) 10% 373.07 (208.64 KTOE) 6 capacity, additional two Buses Stations Buses Stations Buses Stations
2012 100 1 100 7.95 6.26
2015 3,794.72 (2,973.21 KTOE) 10% 379.47 (212.22 KTOE) - (2) bioethanol plants are 2015 1,000 10 1,000 79.50 62.60
2020 4,301.80 (3,370.51 KTOE) 20% 860.36 (481.16 KTOE) 14
2025 4,682.81 (3,669.04 KTOE) 20% 936.56 (523.77 KTOE) - targeted to be operational 2020 6,400 64 100 1 400 4 6,900 548.56 431.94
2030 5,052.26 (3,958.50 KTOE) 20% 1,010.45 (565.10 KTOE) - within the planning 2025 7,200 72 1,000 10 1,000 10 9,200 731.42 575.92
2030 10,500 105 2,400 24 2,100 21 15,000 1,192.53 939.00
Note: Total supply requirement of Bioethanol is equal to total gasoline to be displaced. period. The Cavite Biofuels
Aggregate annual capacity of existing accredited bioethanol plant = 79 Million liters Producers Inc. with 34.4 Note: (1) Diesel Liter Equivalent (DLE) is based on 254 liters/day at 313 days/annum.
(2) Average density for natural gas is about 0.900 kg/m3
Annual capacity of each required bioethanol plant = 30 Million liters
Required additional production capacity does not include the 3 bioethanol plants, which million liters of production (3) CNG Refilling Station is based on the assumption that 1 station can refill a minimum of 100 buses a day.
will be operational in 2012 and 2013
capacity, and the Canlaon
Alcogreen Agro Industrial
and facilities in the regions outside Luzon Auto-LPG
fuel displacement of 373.1 million liters (208.6
in 2014-2018, CNG buses are seen to start
KTOE) and 379.5 million liters (212.2 KTOE) in Corp with 45.0 million liters of production
capacity are expected to start producing in
operations in the Visayas by 2020 with around Auto-LPG Taxis
2012 and 2015, respectively (Table 75).
100 CNG buses to be fielded (Table 78).
2013 (Table 76). The total combined capacity
LPG is considered as one of the cleanest fuels in
By 2020, bioethanol blend will
Table 76. BIOETHANOL PLANT CAPACITY ADDITION Consequently, 400 CNG buses will ply around in the market. With an increase in demand of auto-
further increase to 20.0 percent
Mindanao by 2020. Nationwide, the number of LPG for vehicles by 2012, the DOE is anticipating
displacing about 860.4 million Production Capacity Target
Bioethanol Plant Location CNG buses is targeted to reach 15,000 units by that taxis converted to auto-LPG will reach about
liters (481.2 KTOE) to reach (In million liters) Year
Cavite Biofuels Producers Inc. Cavite 34.40 2013 2030, which will require about 150 refueling/ 19,300 units nationwide. By 2020, it is expected
936.6 million liters (523.8
Canlaon Alcogreen Agro Bago City, refilling stations all over the country. to increase to 21,700 units, which would require
KTOE) and 1,010.5 million liters 45.00 2013
Industrial Corp. Negros Occidental a total of 271 refilling stations. This will displace
(565.1 KTOE) in 2025 and 2030, Total 79.40 The DOE has also enjoined the support of PNOC a total of 203.8 million liters of gasoline fuel.
respectively.
to put up CNG refilling stations, which are However, starting 2027, the total number of
of these plants which is about 79.4 million liters
targeted to be in place by 2013-2015. auto-LPG is seen to decrease gradually with
Meanwhile, six (6) additional bioethanol will increase the aggregate local bioethanol
production capacity to 212.4 million liters in 23,400 units from 23,500 units in 2026. The
producing plants with capacity of 30 million
2013. This would include the production capacity
CNG Taxis gradual decrease in number of auto-LPG units
liters per annum will be needed by 2012/2013 to
of 54 million liters of the newly accredited Green can be attributed to the dropping of the 15-year
address the supply requirement. Additional 20
Over the planning period, the DOE is introducing Franchise Contracts88 issued by LTFRB to Auto-
bioethanol plants will be required from 2020 to Future Innovation, Inc. Said increase in supply
the use of CNG for taxis. On the assumption that LPG Operators. Said contracts also provided for
2030 for the 20.0 percent increase in blend. As will facilitate in meeting the expected increase in
critical infrastructure for natural gas will be in the shift to CNG taxi. By 2030, the total number
an aspirational goal, the DOE is also considering blend set under the Biofuels Law.
place by 2016-2017 and fuel availability will of auto-LPG taxis is expected to further reduce
the availability of 85.0 percent (E85) ethanol
be seen in Visayas and Mindanao, the DOE is to about 23,000 units displacing a total of 216.0
blend by 2025 which will be promoted on a CNG
targeting to deploy 100 units of CNG Taxis for million liters and requiring a total of 294 LPG
voluntary basis. The introduction of E85 blend
its initial phase. This will displace a total of 0.9 refilling stations nationwide (Table 79).
will be dependent on the availability of local CNG Buses
million liters of gasoline fuel. From 2020 to
bioethanol supply, price, blending infrastructure
The DOE will strengthen
2025, the number of CNG taxi will be increased E-Vehicle Program
Table 77. NGVPPT(CNG TAXIS) MEASURABLE TARGETS from 1,000 to 6,000 units displacing a total of 9.4
its implementation of
million liters to 56.3 million liters of gasoline, With a number of advantages to make e-vehicle
No. of CNG Taxis (Target)
Gasoline the NGVPPT given the
CNG respectively. By 2030, total CNG taxi is expected a viable alternative to gas-powered transport,
Year Luzon Visayas Mindanao Fuel
Consumption environmental benefits
Total Displacement to reach about 16,000 units which will displace a the DOE is now pushing for its nationwide
(In million liters)
(In Million Liters) of CNG. There are 61
CNG Taxis CNG Taxis CNG Taxis
total of 150.2 million liters of gasoline. However, utilization through the E-Vehicle Program. By
2016 100 - - 100 0.94 1.05 CNG buses deployed in
said program will be highly dependent on the 2015, the DOE is targeting to have 50,170 units
2020 800 100 100 1,000 9.39 10.54 Luzon to jumpstart the
availability of fuel supply, price, infrastructure of E-vehicles in commercial operation from 630
2025 4,200 1,200 600 6,000 56.34 63.21 commercial phase of
2030 11,200 3,200 1,600 16,000 150.24 168.56 and logistics as well as supporting policies, and e-trike units in 2011 that will reap a total of 62.8
the program. With the
Note: (1) Gasoline Taxi Fuel Consumption = 30 liters per day concrete financial scheme for stakeholders.
(2) CNG Taxi fuel consumption (based on heating value of CNG) = 33.6585 liters per day availability of critical
88 Issuance of 13-year Franchise Contract by LTFRB to Auto-LPG
(3) Operating number of days = 313 days per year supply infrastructure Operators started in 1996 with an extension of another 2-year
(4) CNG Taxi Refilling Station is anchored on the Target Refilling Stations of CNG Buses
Contract that will last until 2011.
Table 79. AUTO-LPG CONVERTED TAXI MEASURABLE TARGETS E-Vehicle Program capability building will be undertaken to develop
relevant knowledge and skills in implementing
No. of Auto-LPG Converted Taxis and Refilling Stations
Gasoline Availability of necessary infrastructure i.e. the Biofuels Program.
Luzon Visayas Mindanao LPG
Year Total
Fuel
Consumption fast charging stations to meet the increasing
Displacement
Taxis
Refilling
Taxis
Refilling
Taxis
Refilling (Auto-LPG (In million liters)
(In Million Liters) demand for EVs; The DOE will continue to forge partnership with
Stations Stations Stations Taxis)
the academe and research institutions for the
2012 12,545 157 3,860 48 2,895 36 19,300 181.23 140.09
High upfront acquisition cost of EVs; conduct of on-road performance and durability
2015 13,130 164 4,040 51 3,030 38 20,200 189.68 146.62
2020 14,105 176 4,340 54 3,255 41 21,700 203.76 157.51 tests and market viability for higher biofuels
2025 15,080 189 4,640 58 3,480 44 23,200 217.85 168.40 Lack of concrete financial scheme and blend for vehicles; use of up to 100 percent
2030 14,950 187 4,600 58 3,450 43 23,000 215.97 166.94 incentive package for investors; biodiesel for power and marine transport;
Note: (1) Fuel (Gasoline) Displacement is based on 30 liters/day consumption of Taxi at 313 days/annum; viability study for other potential feedstock for
(2) LPG Density is about 0.559 kg./cubic meter;
(3) LPG consumption of taxi is 23.19 liters/day; and, Lack of technical capabilities in the operation biofuels; and life cycle analysis and technology
(4) LPG Refilling Station is based on the assumption that 1 station can refill 80 taxis per day. and maintenance of EVs; and, road mapping. Introducing higher biofuels
blend up to 20.0 percent for biodiesel and 20.0
Need for public awareness and acceptance. percent to 85.0 percent for bioethanol would
Table 80. E-VEHICLE MEASURABLE TARGETS
million liters of fuel displacement and power be contingent with the availability of supply.
requirement of 40.5 MW for battery charging No. of E-Trikes
Fuel Power Plans and Programs Implementing biodiesel blend for power and
Year Displacement Requirement
activity. By 2020, the total number of e-vehicle (Target)
(In million liters) (MW) marine transport will be pursued in consultation
will further increase to 106,000 units which will 2012 650 0.81 0.52 Over the planning period, the DOE will push for with the concerned stakeholders.
require about 85.6 MW of power, and displacing 2015 50,170 62.81 40.51
the implementation of the Fueling Sustainable
2020 106,000 132.71 85.60
a total of 132.7 million liters of gasoline fuel. 2025 150,000 187.80 121.13 Transport Program (FSTP). The said program Further, the government will broaden the
By 2030, the total number of EVs is expected 2030 230,000 287.96 185.73
will integrate and harmonize efforts of coverage of the Biofuels Program to include
to reach 230,000 units equivalent to a gasoline Note: (1) Tricycle consumption is based on 4.0 liters/day of gasoline government into one comprehensive program other possible feedstocks. As such, techno-
at 313 days/ annum; (2) The number of E-Vehicles Target is anchored
displacement of 288.0 million liters and a total on E-Trike Program under the ADB Loan Assistance Program; and, to help mitigate impact of increasing oil price, economic studies on algae as potential biodiesel
power requirement of 185.7 MW (Table 80). (3.) Estimated total power consumption per day (Lithium Battery) is
lessen the countrys dependence from oil, and feedstock and the use of cellulosic technologies
6.78 kWh.
encourage the shift of petroleum/diesel-fed for the production of bioethanol will be pursued,
The EV Program is initially anchored on the environment, energy security and rural vehicles to low and zero-emission vehicles. The
E-Trike Program under the ADB Loan Assistance development ; program is also in consonance with the National CNG
Program. The targeted EVs for the program will Environmentally Sustainable Transport Strategy
be generally e-tricycles but this will be followed Ensuring supply security to support an (EST) for the Philippines89 which is a program of As the transport sector is heavily dependent
by e-jeepneys if concrete financial scheme and increase in bioethanol blend; and, DOTC. on traditional fuel, the use of CNG could reduce
incentive package will be available for investors. such reliance, as well as provide economic and
If the required infrastructure and logistics Deployment of biofuel compliant vehicles and Biofuels environmental benefits for the country.
will be available, the government targets the readiness to utilize higher biofuel blend.
commercial operation of EVs by 2012 onwards. The DOE will intensify the promotion on the The target of around 1,192 million DLE
CNG development and use of biofuels. It will create displacement from 15,000 CNG buses by
Development Challenges market awareness for alternative energy 2030 can be fast tracked by enhancing the
Fuel availability and necessary infrastructure projects in collaboration with various industry policy directives on NGVPPT/supply and price
The use of alternative fuels is seen as a major i.e. refueling stations to meet increasing stakeholders. In addition, the government will mechanisms, and ensure gas supply for the
contributor to the mainstream development for the demand for CNG buses; and, secure funding requirements to undertake NGVPPT commercial phase.
country. In this regard, the government recognizes tests and studies including procurement of test
that policies and programs on the promotion of High upfront costs for infrastructure. vehicles. Likewise, the necessary manpower Among the targets of the government to
alternative fuels must also address the economic intensify the use of natural gas in the transport
89 National Environmentally Sustainable Transport (EST) Strategy
and social impacts of its use and development. Auto-LPG for the Philippines was created by DOTC under Administrative sector is to promote the CNG Conversion/
Order (A.O.) 254 and launched on 20 May 2011. The programs Retrofitting Technology and develop manpower
Biofuels Supply and pricing issues on the use of LPG
main goals are to reduce the annual growth rate of energy
consumption and associated GHG and air pollutant emissions expertise/technical capability for regulators/
for transportation and household. from the urban transport sector, and enhance sustainable implementers. To encourage private sector
mobility through the development of a viable market and shift to
Need to instill public awareness on low emissions transport of goods and services (source: Clean Air participation, incentives are provided through
the potential benefit of biofuels to the Portal).
the policy issuance of Executive Order 396, E-Vehicle Program Energy Efficiency and Conservation
Reducing the Rates of Import Duty on Compressed
Natural Gas Motor Vehicles and Natural Gas In support of the E-Vehicle Program, the DOE Amidst indicators and realities of high oil prices Performance Assessment
Vehicle Industry - Related Equipment, Parts and will formulate policies that provide incentives and greater competition for energy resources on
Components Under Section 104 of the Tariff and to encourage investment on Alternative Fuel a long-term basis, it is necessary for government Total energy savings generated increased by
Customs Code of 1978 (Presidential Decree No. Vehicles (AFVs). During the planning period, to pursue greater efforts to temper the demand 10.8 percent from the 2010 level of 3.7 MTOE
1464), As Amended. the DOE will also develop safety standards to for energy. With parallel relationship between to 4.1 MTOE in 2011. The increases in energy
facilitate the utilization of electric vehicles. economic growth and energy use, government savings were obtained through initiatives being
In terms of the development of the natural gas needs to find ways on how to utilize less energy implemented under the NEECP which include
industry, the DOE will advocate for the passage of Further, the DOE together with LGUs will devise without sacrificing the countrys development the Energy Labeling and Efficiency Standards
the Natural Gas Bill to support the CNG program counterpart supportive measures to expand and quality of life of the people. Unless profound and Energy Management Program (energy
for transport and to make it more competitive the use of EVs among cities and provinces in changes are introduced on the manner by which audits, recognition awards). During the first
with other fuels. the country. Similarly, IEC activities will be energy is used, the country will be demanding semester of 2012, additional savings of 2.4
intensified to ensure that the program will be more energy than it can possibly import and MTOE are expected to be realized. The 2011 and
Auto-LPG Program well promoted nationwide. produce. 2012 savings include the preliminary savings
generated from the Philippine Energy Efficiency
The government is pushing for a wider utilization Emerging Alternative Fuels Technologies Energy efficiency and conservation program Project (PEEP), particularly on the distribution
of LPG from household to the transport sector is a crucial component of a sound national of compact fluorescent lamps (CFLs).
since LPG has the same positive environmental The integration of new and emerging alternative energy plan. In the long term, efficiently
advantage as the other alternative energy. Thus, fuels technologies is seen as one of the managing our energy use will not only support Social Mobilization and IEC Campaign
the DOE will enhance its policy direction on the viable options to address the economic and economic growth, but will also be beneficial
use of LPG utilization and conduct studies on its environmental issues concerning the use of to the environment by reducing greenhouse A key component to ensure success of the
effect to the transport vis-a-vis household, the fuel oil. For the planning period, the DOE will gas emission. However, realizing such benefits governments energy efficiency and conservation
pricing mechanism and regulation, as well as on conduct demonstration and deployment of would require aggressive effort on technology program is the aggressive implementation
importation and taxes. The DOE will likewise electric, hybrid, hydrogen (fuel cell) and solar development and lifestyle change. of an effective IEC campaign. Currently, the
formulate policy directions and facilitate vehicle technologies. energy sector promotes energy efficiency and
development of standards for the two/four With the launching of the National Energy conservation through timely dissemination of
stroke motorcycle engine, motorized bancas To meet these targets, the following activities Efficiency and Conservation Program (NEECP) basic information on energy standards, energy
and other diesel engines. will be undertaken: in August 2004, the energy sector continues to efficient products and innovative technologies.
work on the development and promotion of new IECs cover not only business operations and
In addressing the technical issues on the auto- Formulate policy direction; technologies and the practice of sensible energy the supply/demand chain, but also intend
LPG program, the DOE will conduct technology habits in our homes, businesses and motor to influence the consumers behavior. As
validation for dual fuel jeepneys and other Promote local and international cooperation vehicles. Thus, for the planning period, the DOE highlighted in the 2008 Philippine Energy
motorized diesel/gas engines and develop (MOUs/MOAs); will strengthen the role of energy efficiency Summit, the human factor is relevant in the
manpower expertise and capability building for and conservation as an all time solution to success and widespread implementation of
regulators and implementers. Continue partnership with private sector energy crisis brought by increasing demand and energy efficiency and conservation programs.
and academe; depleting energy resources.
On the other hand, the DOE will undertake Table 81. NATIONAL ENERGY EFFICIENCY PROGRAM ACTUAL SAVINGS
(in MTOE)
continuous IEC activities to ensure that Develop capability building programs (study The gasoline lines of the
concerned individuals and stakeholders tours, seminars and conferences); 70s may be gone and our PROGRAMS 2010 2011
2012
(1st Semester)
are informed on the benefits derived from homes are comfortably Information, education and communication campaign 0.51 0.68 0.39
the said Program. Also, the DOE will create Establish demonstration testing, evaluation cool in the hot summers Voluntary agreement 0.54 0.48 0.28
market awareness for alternative energy and assessment of technologies; and, of the tropics. But our
projects in collaboration with various industry energy sector today faces
Energy Labeling Program 2.13 2.29 1.335
stakeholders. Encourage investments for emerging more challenges than it Government Energy Management Program 0.03 0.04 0.025
alternative energy technologies. was years ago due to new Energy Management Program 0.49 0.57 0.335
developments in the world Philippine Energy Efficiency Project 0.04 0.025

market. Total Savings 3.70 4.10 2.39
The DOE also took advantage of the persuasive energy-efficient technologies will not only save As part of incentives to private investors, the total savings realized by these companies was
benefits of the tri-media campaign with on energy use, but in cost as well. establishment of waste recycling facilities has equivalent to 156.0 MMLOE amounting to PhP
the publication of enercon tips in major been incorporated in the 2009 Investment 5.0 billion with CO2 avoidance of 269,000 tons.
broadsheets, as well as the airing of television The DOE, in partnership with the DTI, has Priorities Plan. Further, a shortlist of buyers
and radio advertisements over major effectively implemented the mandatory Energy of busted fluorescent lamps and organizations For 2011, 59 companies and 33 outstanding
television channels and KBP-member radio Efficiency Standards and Labeling Program accredited by the DENR to transport/treat/ energy managers were recognized under the
stations to reach greater consumer base in the for selected household appliances and lighting recycle were undertaken. The establishment of a DEAEEA. Through the initiatives of these
residential and transport sectors. products such as room air conditioners, lamp waste management facility is a component awardees, significant savings of 92.0 MMLOE
refrigerators (with storage volume of five (5) of the PEEP funded by ADB. were obtained for the year. This corresponds
Among the activities carried out under the cubic feet/142 liters to eight (8) cubic feet/227 to PhP3.6 billion in monetary savings and 148.0
IEC campaign include seminar-workshops liters) and compact fluorescent lamps. The Philippine Efficient Lighting Market tons of avoided carbon dioxide.
for target participants in the commercial, labeling program ensures that consumers have Transformation Project
industrial, residential, and government, fuel the information they need to make the right ASEAN Energy Awards: Best Practices
economy run for transport vehicles, and the decision when they purchase these household As part of the advocacy program under Competition for Energy Management in
use of tri-media to reach wider target sectors. appliances and lighting fixtures. On the other the Philippine Efficient Lighting Market Buildings and Industries
hand, energy standards weed out the inefficient Transformation Project, the DOE signed a
In 2011, the Department launched its Do models before they reach the market. Likewise, MOA with the DILG and the Department of The ASEAN Energy Awards is considered as the
Right, Be Bright campaign that aims to the DOE has established the test facilities Public Works and Highways (DPWH) for the most prestigious energy management contest in
promote efficient energy use (DO RIGHT), as capable of validating the claimed ratings on the implementation of the following guidelines by the ASEAN Region recognizing companies that
well as to educate and empower Filipinos to energy labels. The government is now on its the local government units: i) Energy Conserving demonstrate best practices on energy efficiency
be smart energy users (BE BRIGHT) starting way to further widen the scope of appliances Design of Buildings, ii) Efficient Lighting, and and conservation. In 2010, the Market! Market!
today (BRIGHT NOW!). The Campaign and lighting products to be covered by energy iii) Roadway Lighting Guidelines. Mall in Taguig bagged the (Large) Building
hinges on the three-fold agenda on Advocacy, standards and labeling. The development of Category Award while the Philippine EPSON
Education and the DOEs image as the Energy relevant PNS is undertaken jointly by DOE and Recognition Awards Optical Inc. of the Philippines won the (Large)
Manager of the Philippines. The DOE started DTI, in consultation with the stakeholders such Industry Award. In 2011, the winners were
the promotion of this new branding by 2012. as the Philippine Appliance Industry Association The DOE also sustained the conduct of as follows: a) MERALCO Management and
and the Philippine Lighting Industry Association. recognition awards both local and regional Leadership Development Center (under the
Likewise, the DOE in partnership with the which commend efforts of private companies Small and Medium Building Category), b) J.
Development Academy of the Philippines (DAP) The program helped the country save 2.1 MTOE in in implementing energy efficiency and P. Morgan Chase and Company (first runner-
conducted a series of training-workshops 2010, further increasing to 2.3 MTOE by end-2011. conservation program. These recognition up under the Large Building Category, and c)
on energy efficiency and conservation For the first half of 2012, initial data show that awards also exemplified dynamic government Toshiba Information Equipment (Phils.), Inc.
conceptualized for managers, supervisors about 1.3 MTOE in savings have been generated. and private sector partnership. (Large Industry).
and other stakeholders from the industry,
commercial and transport sectors who are Lamp Waste Management Facility Don Emilio Abello Energy Efficiency Award Government Energy Management
directly responsible in implementing energy (DEAEEA) Program (GEMP)
conservation in their respective factories/ To avert residual mercury from entering the
companies. The training-workshops, attended food chain through landfill dumps leaching The Recognition Award acknowledges the With the intention of lowering the total energy
by over 1,000 participants, were conducted in into groundwater, a new mercury recycling initiatives of private companies and managers consumption of the country, the government
the cities of Davao, Cagayan de Oro, Butuan, plant for fluorescent lamps will be established. who have implemented energy efficiency resolved to start in its own backyard. Thus,
Dumaguete, Cebu, Bacolod, Iloilo, Naga, The testing and recovery facility is designed to and conservation programs that resulted in the GEMP was customized in September 2005
Baguio, La Union, Pampanga, Subic, Cavite and stimulate private sector interest in lamp waste considerable savings in energy cost. to help national government agencies reduce
Laguna. management business. A form of Extended consumption of electricity, gasoline and diesel
Producer Responsibility (EPR) shall be explored A total of 61 establishments from the industrial, which will consequently trim down operating
Energy Efficiency Standards and in coordination with the DENR and other commercial and transport groups were awarded costs.
Labeling Program government agencies and lighting industry in 2010. On the other hand, 39 individuals
associations. The mechanism requires that the from private corporations were conferred Under Administrative Order 126 issued in
Gains in energy efficiency will depend mostly on manufacturers or importers become responsible as Outstanding Energy Managers in fitting 2004, government agencies are required to
technological improvements in basic household for the cost of managing the spent lamps ceremonies held on 07 December 2010. The reduce annual consumption of electricity and
appliances and lighting products. The use of following the cradle-to-grave management.
gasoline by 10.0 percent based on their 2005 grant, and US$ 14.0 million from the Philippine Visayas Electric Company and Davao Light 9.0 million cost savings and reduction in CO2
energy consumption. In support of this policy, government as project counterpart fund. The and Power Corporation). In April 2010, two emissions by 405.3 tons.
there are 590 government offices submitting project is designed to generate electricity savings (2) million CFLs were re-allocated from Metro
their electricity and fuel consumption reports of 264 GWh annually, as well as a deferred Manila to Mindanao to address the power supply On the other hand, the PEEP component on
to DOE. Assessment and evaluation activities to power capacity saving of 200.0 MW per year. It constraint. And in 2011, a total of 2,554,605 retrofitting of government office buildings
validate said submissions are conducted by the would also result in an environmental pollution CFLs were distributed in Metro Manila, Bulacan seeks to replace older model fluorescent lamps,
DOE. Based on the Departments consolidated reduction of 143,000 tons of CO2 avoidance per and some areas in CALABARZON, while about incandescent bulbs and inefficient magnetic
reports, a total of PhP1.8 billion savings were year.90 Such savings will be obtained from the 150,400 CFLs were allotted for the beneficiaries ballasts by energy efficient alternatives such
obtained from September 2005 to December distribution of CFLs to the residential sector. of the National Housing Authority, Department as the new T5 fluorescent lamps, CFLs and
2011. This is equivalent to around 206,931,528 The DOE targets the distribution of 5.0 million of Social Welfare and Development and the DOE. electronic ballasts. As of December 2011, 10
kWh and 7.2 million liters savings in electricity CFLs for the period 2010 to 2011 and 3.6 million Meanwhile, 1,640,289 CFLs were shipped to out of the 35 government buildings targeted
and fuel, respectively. for 2011-2012. Mindanao through the electric cooperatives and for retrofitting were validated to be completed.
distribution utilities. Furthermore, 224,370 These are the National Dairy Authority,
On the other hand, the conduct of Energy Audit The PEEP shall address the transformation of CFLs were disseminated to large distribution Securities and Exchange Commission, National
Spot Checks for various government institutions the lighting market industry by introducing utilities in Visayas and Mindanao. Thus total Housing Authority, Philippine Information
was revived to cover national government energy efficient lighting system such as the CFL CFL distributed in 2011 was placed at 4,569,664 Agency, Department of Environment and
agencies, as well as its regional offices. As a in the household and government buildings. It (Lot 1 of the project). The remaining balance Natural Resources, Environmental Management
result, the DOE conducted spot checks of 63 was likewise designed to reduce cost of power of 430,336CFLs were further distributed in Bureau, Philippine Institute of Volcanology
government agencies in 2010. Preparation generation; establish sustainable business Mindanao during the first semester of 2012, and Seismology, National Telecommunications
of the energy spot check rating for efficient models for large-scale implementation of energy completing the targets under Lot 1 of the project. Commission, Mines and Geosciences Bureau,
use of electricity takes into consideration the efficiency programs; establish a certification On the other hand, the distribution of 3.6 million and the National Food Authority.
compliance to several measures, such as the process for energy and environmentally efficient CFLs (Lot 2) is targeted for completion by end-
use of compact fluorescent lamps (CFLs), room commercial buildings, among others.91 2012 among Congressional districts nationwide. Measurable Sectoral Targets
setting temperature not lower than 25 degrees
centigrade, and setting of air-conditioners at fan The Project will have the following outputs:92 On the PEEP component on Public Lighting The potential energy savings anchored on the
mode during lunch breaks. On the other hand, (i) implementation of lighting retrofits in 35 Retrofit, Baguio Citys Burnham Park Complex sectors goal of 10.0 percent savings on the total
gauging fuel efficiency relies on the agencys selected government buildings nationwide; and Wright Park were retrofitted with efficient annual energy demand of all economic sectors
monthly fuel consumption record, preventive (ii) provision of 8.6 million CFLs to consumers lighting system which is expected to save the is shown in Table 82. For the entire planning
maintenance schedule of service vehicles, and (iii) implementation of energy-efficient city about 193.5 MWh per year or PhP 3.0 period, total cumulative savings is expected to
implementation of a fuel conservation program. public lighting programs to include traffic million in monetary savings and CO2 reduction reach 31,004 KTOE.
lights; (iv) expansion of testing laboratory of 87.1 tons.
As a whole, the GEMP was able to achieve 0.03 capacity and establishment of a mercury waste To meet these projected savings, the plans and
MTOE in savings for 2010, while end-2011 management plant for fluorescent lighting; (v) Meanwhile, the retrofitting of street lights in programs of the PEP considered the ASEAN
record saw this increasing to 0.04 MTOE. For the implementation of a certification scheme for Cagayan de Oro has shown potential energy Plan of Action for Energy Cooperation (APAEC)
first semester of 2012, about 0.025 in savings energy- efficient buildings; and (vi) development savings of 900.7 MWh annually or about PhP 2010-2015 specifically on the development of
have been registered. and implementation of a communication and
social mobilization program.
Philippine Energy Efficiency Project
(PEEP) In 2009, the distribution of five (5) million
CFLs (under Lot 1) was launched on 26
The PEEP has been conceived after the 2008 September 2009 at the Don Bosco Technical
President Benigno S. Aquino III and
Philippine Energy Summit for a calibrated School in Tondo, Manila. This signaled the CFL Secretary Jose Rene Almendras led the
phasing-out of inefficient technologies such distribution in Metro Manila, CALABARZON, switch-on ceremony of CFL streetlights
as the shift from incandescent bulbs to energy Bulacan and three (3) distribution utilities in Burnham Park, Baguio City on 19
August 2011. This marked the full
efficient lighting system. It has a sizeable (Cagayan Electric Power and Light Company, lighting retrofit of the park as witnessed
financing plan of US$ 46.5 million, where US$ by Cong. Bernardo M. Vergara, Baguio
31.1 million was funded under an ADB loan 90 ADB. Proposed Loan and Administration of Grant, RP: Philippine City Mayor Mauricio G. Domogan,
Energy Efficiency Project, January 2009, page 14 Bishop Carlito J. Cenzon, and Neeraj
facility agreement, US$ 1.5 million from an ADB 91 ibid, page 9 Jain from the Asian Development Bank.
92 ibid
clear policies on energy efficiency, awareness Circulars on Energy Efficiency and Policy Formulation/Initiatives Promotion of Energy Service Companies (ESCO)
raising and dissemination of information, Conservation (to include deputizing a
promoting good energy management practices specific agency and developing energy The DOE will expand existing policies on energy The promotion of private ESCO as a new business
and facilitation of financing for energy efficiency champions in each agency), as well as efficiency and conservation to ensure remarkable market industry model shall be pursued by the
projects. providing incentives on energy efficiency achievements in terms of implementation and DOE. The underlying activities are the capacity
best practices. compliance. For the planning period, the DOE building of all accredited private ESCOs and
Development Challenges will work for the passage of a comprehensive the preparation of the business plan to provide
Strict implementation of electrical product National Energy Conservation and Efficiency financing for energy efficiency projects to be
One major challenge which was also raised standards in the market and conduct of Bill and the amendments to DOE Memorandum undertaken by these private ESCOs.
during the conduct of the 2008 Philippine Energy energy audits to cover other sectors. Circular 93-03-05 (Energy Consumption,
Summit is the need for an Energy Conservation Monitoring and Evaluation of Industrial, The assessment and accreditation of private
Law. It was identified as a critical measure Encourage LGUs to implement their Commercial, Transport and Power Sectors). ESCOs by the DOE is provided under D.C. 2008-
by government to effectively manage the own energy efficiency and conservation 09-004 issued in 2008. As of first semester
energy demand of the country. In accordance initiatives through the promulgation of local The proposed Energy Conservation and 2012, the DOE has 12 accredited ESCOs.
with the Energy Summit results, the Energy ordinances. Efficiency bill aims to promote the rational
Conservation Law should incorporate policies use of energy across all sectors of the economy Foreign-Assisted Projects
and measures to develop local energy auditors Expedite the preparation and implementation nationwide. It would incorporate policies,
and energy managers, establish the ESCO of Lamp Waste Management Policy. goals, directions, regulations and guidelines for The DOE is implementing two (2) foreign-
industry, encourage the development of energy the enforcement of a national energy efficiency assisted projects as follows:
efficient technologies and provide incentives for Establishment of ESCOs as an emerging plan. Specifically, it would also include the
the effective promotion of efficiency initiatives energy industry implementation of energy efficient design of (a) JICA Technical Assistance Project on the
in the energy market sector. buildings and the use of passive cooling in Developmental Study of Energy Efficiency
Plans and Programs commercial establishments as prescribed by and Conservation for the Philippines.
Similar calls for the implementation of other the Guidelines on Energy Conserving Design The objective of the study is to assist
energy efficiency and conservation measures Uncertainties in the energy sector brought about of Buildings). It would also consider energy the Department in designing the Energy
were echoed during the regional consultations by a confluence of factors such as world political efficiency initiatives of the local government Conservation Bill and institutionalize
of the PEP. Specifically, energy stakeholders disorders and oil price hikes in the world market, units to ensure support at the grassroot energy efficiency and conservation
recommended that the following measures and invariably impact on the countrys economic levels. measures by providing the concept design
initiatives be put in place during the planning growth and development which in turn affects of the said bill and its organizational
period: government efforts to alleviate poverty. On the other hand, the Department will structure. Other sub-components
introduce amendments to D.C. 93-03-05, which include the IEC campaign, a Training and
Review existing policies on EE and C This Plan, formulated to sustain economic requires the submission of quarterly energy Certification Program for Energy Auditors
and integrate measures such as strict growth for the next 20 years, highlights the consumption reports for companies consuming and Energy Managers, and the full-scale
implementation of the Guidelines on Energy development of appropriate energy efficiency more than one (1) million liters of fuel oil National Energy Consumption Database
Efficient Design of Buildings to include the and conservation policies and related programs annually and regular yearly reports for those and System Application Tool. During
use of passive cooling system. on the rational use of energy. consuming more than two (2) million liters of the first quarter of 2011, the first Study
fuel oil annually to the DOE. Said amendments Mission Team of JICA was dispatched to
Intensify enforcement and monitoring of Over the short-term, the DOE will pursue the intend to expand the coverage to include the country to gather information on the
Administrative Orders and Memorandum following programs to realize potential savings: medium enterprises with energy consumption Departments policy measures on EE&C,
of above 500,000 liters of oil equivalent annually, energy management system, energy audit
as well as water transport vessels (cargo and scheme, energy database, labeling scheme
Table 82. POTENTIAL ENERGY SAVINGS BY SECTOR (in KTOE) passenger ships), power distribution utilities and IEC activities. And in the first semester
Sector 2012 2015 2020 2025 2030 and power generation companies. In addition, 2012, the Team completed its fifth and last
Agriculture 16 18 21 25 29 an accreditation policy for Energy Managers mission. A stakeholders meeting was
Industrial 157 195 277 389 541 and Energy Auditors will also be included under conducted to gather recommendations
Commercial 125 162 238 333 454 the Circular. and inputs from concerned agencies. As a
Residential 136 178 260 383 545
result, the proposed Energy Conservation
Transport 407 503 659 847 1,090
Total 841 1,054 1,455 1,976 2,659
Bill has gained the endorsement of
Congresswoman Maria Evita Arago (of the The DOE will also continue to carry out its Several other initiatives will be implemented Meanwhile, the development of an Energy
3rd District of Laguna) and Senator Teofisto programs over the planning horizon, which for the planning period to enhance strategies Management Standard (EMS) for industrial
Guingona III. The bill was also presented have provided substantial energy savings for on energy efficiency and conservation, which establishments based on the ISO 50001
to the Energy Committee of the House of the country, namely: include: framework shall be jointly implemented by the
Representatives for comments. DOE and DTI-BPS to ensure full compliance
Demand Side Management (DSM) Program (a) Certification program for Energy Manager and success of the program. As a mandatory
(b) UNIDO-GEF Technical Assistance Project and Energy Auditor; program, the EMS shall require the employment
on the Philippine Industrial Energy The implementation of a DSM program will of an energy manager/auditor in an industrial
Efficiency Project cover the following activities: a) promotion of (b) Development of the Energy Efficiency and facility. On the other hand, energy auditors
energy efficient technologies in the industrial, Conservation Guidelines for residential working for energy service companies and
During the first quarter of 2012, the commercial, government buildings and buildings; other energy service providers shall be required
Department launched an Inception household sectors; b) promotion of Light to secure DOE accreditation after completing
Workshop on its new undertaking to Emitting Diode (LED) technology for street (c) Development of energy benchmark for the training and certification program of the
bring the benefits of energy efficiency to lighting; c) promotion of Voluntary Agreement commercial and government buildings and Department.
the industrial sector one of the most with private companies through a Pledge of industrial manufacturing facilities; and
energy intensive sectors of the economy. Commitment, which could result in voluntary Looking beyond the end of the long-term plan
The 5-year joint project of the DOE reduction of energy consumption; and d) (d) Energy management for efficiency is the establishment of an Energy Conservation
and the United Nations Development expansion of the energy standards and labeling performance monitoring of the power Center for the country, as a learning center
Programme (UNDP) will be known as program to include other electrical appliances. generation utilities and electric showcasing an energy efficient building model
the Philippine Industrial Energy Project To ensure greater energy savings for the distribution facilities to include the heat that will incorporate green technologies.
(PIEEP) which will promote industrial country, the DOE will introduce new initiatives rate improvement project of government The model shall exhibit new energy efficient
efficiency through introduction of energy (2011-2015). The DOEs Energy Standard and technologies (devices, equipment, appliances,
management and industrial energy Labeling Program will be expanded to include Other concrete actions to support the target electronic products, vehicles), as well as
systems optimization, capacity building new models of passenger cars and light duty energy savings towards the end of the planning energy efficient local inventions. The DOE,
of stakeholders - enterprises, equipment vehicles. An appropriate governing body shall be horizon will be set in place. The promotion of in partnership with concerned government
suppliers, engineering / energy service established consisting of representatives from energy efficiency and conservation programs agencies and academic institution shall be
companies and government planners DOE, DTI, car manufacturers, consumers group, will extend to other program initiatives such tasked to maintain and manage the operation of
in implementing system level efficiency industry associations and other concerned as: (a) Aviation Fuel Efficiency Enhancement, the Center in cooperation with various industry
improvements, and integration of energy stakeholders. The body will be tasked to oversee (b) Major Retrofit of Commercial and Industrial associations, equipment vendors/distributors,
efficiency into management systems of project implementation with priority given to Sectors, (c) Voluntary Agreement Program with electric distribution utilities, oil companies and
industrial enterprises through energy securing support equipment and other related the LGUs in support of the Rationalization of other stakeholders from the private and non-
management standards. The five-year testing devices and modules. Tricycle Operation, (d) Promotion Technology government sectors.
implementation of the PIEEP is expected on Fuel Efficient Vehicles and Lighting Systems.
to generate energy savings of 2,057,755 Likewise, the labeling program will involve
MWh. the continuing conduct of energy performance
testing of refrigerators (5 to 12 cubic feet),
The projects main goal centers on the compact fluorescent lamps, ballasts, linear/
demonstration of an energy efficient circular fluorescent lamps, luminaires, high
process through energy efficiency system intensity discharge lamps, freezers, industrial
optimization and the establishments of fans and blowers, television sets, beverage
an Energy Management Standard for the coolers, household electric fans, washing
Industrial sector based on International machines, audio/video equipment, and
Standard Organization (ISO) 50001 even vehicles. The DOE will conduct energy
framework. Currently, the Project performance testing of these equipment and
Management Office is being organized in vehicles to verify compliance with energy
anticipation of full project operation. standards and to validate its claimed energy
performance.
Energy and Climate Change Development Challenges Development of Guidelines on Reporting of
Emissions and Emission Reduction including
The passage of the Climate Change Act of 2009 full-scale development and commercialization To pursue these mitigating measures, the capacity building in the establishment of
highlighted the urgency of addressing climate of renewable energy. An RE technology roadmap following issues and concerns must be addressed: reporting forms and database.
change. It also became the policy anchor in the will enable the realization of NREP target to more
formulation of the National Framework Strategy than double the share of RE systems in power Remove barriers to large-scale renewable Implementation of emission reduction
on Climate Change (NFSCC) and the Philippine generation. Complementary to this initiative and alternative energy development programs, and projects;
Strategy on Climate Change Adaptation is an RE Research and Development Agenda
(PSCCA) which were approved and adopted to be pursued in collaboration with the state Development barriers to renewable Sharing and dissemination of knowledge,
by the Government in April and August 2010, university-based Affiliated Renewable Energy energy include higher capital cost for research and best practices on mitigation;
respectively. These national policies were further Centers (ARECs) of DOE as well as the science most RE technologies, cost of transmission
concretized into a long-term National Climate and technology community. While aiming for the access, and off-take risks which constrain Development and adoption of sustainable
Change Action Plan of the Philippines (NCCAP) increasing share of RE sources in the countrys commercial bank financing. On the other financing mechanisms; and,
2011-2028 which was approved by President total on-grid electricity supply, the decentralized hand, the development of new biofuel
B. S. Aquino III in November 2011. NCCAP aims RE systems, on the other hand, are seen to production plants is being hampered by Monitoring, reporting and evaluation
to institutionalize a low carbon trajectory and address the energy requirements of communities lack of early project development funding systems of mitigation policies and measures.
transition the economy into a climate smart in off-grid areas. to cover feasibility studies and front-end
development through a cohesive, integrated and engineering design. ADAPTATION
harmonized approach at the national and sub- Meanwhile, a more intensified implementation
national levels. Cognizant of its importance, of the NEECP nationwide aims to reduce the fuel Need to mandate energy efficiency and The energy sector is considered as one of the
the NCCAP became a cross-cutting topic in the and electricity consumption of all the economic conservation vulnerable sectors that need to adapt to changing
Philippine Development Plan 2011-2016. sectors of society: residential, transport, demand and supply conditions resulting from
commercial, industrial and agriculture. The The lack of an enabling legislation on energy climate change such as increased temperature,
As the biggest contributor to greenhouse gas passage of the Energy Efficiency Law is targeted efficiency and conservation restricts the sea level rise, and extreme weather events,
emissions, the energy sector is one of the to bring about the intensive promotion on imposition of mandatory conservation (e.g. heavy precipitations, typhoons, landslides,
important components of the NCCAP. Under the use of energy efficient technologies and a measures, energy efficiency standards, and droughts). An equally daunting challenge
a Sustainable Energy Program Framework, massive values re-orientation campaign on the and other conservation and/or utilization is the adaptability of energy infrastructures
the NCCAP has identified both mitigation and benefits of energy efficiency and conservation. targets. Energy efficiency still faces financing such as power plants, refineries, depots, power
adaptation measures that the energy sector can The tri-partite partnership network among barriers partly due to the invisibility of transmission and distribution systems, fuel
adopt to address impacts of climate change. government, private sector and the civil society energy efficiency measures and difficulty in distribution systems, and renewable energy
has been identified by NCCAP as a major strategy demonstrating and quantifying results. systems to cope with these changing climatic
SUSTAINABLE ENERGY to scale-up and sustain the promotion efforts. conditions. Further, most energy infrastructures
On Emissions and Emissions Reductions are located along coastal areas where impacts of
Mitigation Under the Sustainable Energy component of Reporting sea level rise and coastal storm surges will likely
the NCCAP, likewise, the energy sector is also occur.
Energy consumption and production contribute called upon to contribute to the attainment of an There is a need to account actual emissions
significantly to the accumulation of GHG and environmentally sustainable transport system. and emissions reductions from contributing If there is insufficient capacity to meet increased
air pollutants emissions to the atmosphere. As Among the sectors programs to support this energy-consuming sectors. Thus, there is peak energy demand, the country could face a
such, the energy sector ensures that policy and goal are the use of alternative transport fuels a need to develop a program on voluntary greater probability of brownouts and blackouts
program mechanisms are in place to mitigate that are sourced from compressed natural gas, reporting of emissions and mitigation during the peak demand periods. Likewise,
the impacts of global warming. liquefied petroleum gas, biofuels (CME and E10) actions e.g. emission reduction projects and energy supply cut-off due to energy system
and electricity; conduct of studies on higher measures by the different sectors. operation interruptions/outages as results of
The energy sector component of the NCCAP is biofuel blends, feasibility on the use of biofuels extreme climatic events, e.g. typhoon, flood,
consistent with the targets and timelines of PEP in other transport systems such as on air sea; Action Plan landslides can also incur serious economic
2012-2030 in promoting renewable energy and and, feasibility on hybrid systems, e.g. fuel problems.
energy efficient technologies as key elements of cells. A medium-term program likewise is the Integration of climate change mitigation
attaining sustainable development through a low implementation of energy efficiency standards measures to energy policies, plans and The long term goal under NCCAP is to mainstream
carbon path strategy. This strategy ensures the and labeling for new vehicles. strategies including laws and regulations; adaptation in energy development projects by
climate proofing of energy infrastructures and Development Challenges Need to develop models on climate change o Development and adoption of
systems to withstand extreme weather events impacts of weather extremes, seasonal sustainable financing mechanisms;
and conditions. To pursue climate change adaptation measures variability, changes in temperature and
in the energy sector, the following gaps and wind speeds to assess their implication on Sharing and dissemination of knowledge,
Table 83 shows the initial risk assessment of the issues should be properly addressed: energy supply resources, e.g. wind, solar research and best practices on adaptation.
different energy systems using the preliminary and hydro as well as on energy consumption
climatic trends presented by the Philippine Need to assess the energy infrastructures patterns. DOE AS ENVIRONMENTAL
Atmospheric Geophysical and Astronomical and systems vulnerability as well as MONITOR
Services Administration (PAG-ASA). pressures in energy demand and supply; Action Plan
As one strategy in ensuring continuous supply
Table 83. INITIAL RISK ASSESSMENT OF THE ENERGY SYSTEMS Conduct of impact and vulnerability of energy, social and environmental safeguards
Affected Energy
Climate Trends Direct Impacts Indirect Impacts Risk assessments of the energy systems and should be in place prior to the development of
Systems
infrastructures, i.e. power generation, any energy project.
Power Plants Sea level rise Coastal Inundation Forced outages/power Structural Risk
plant operation interruption transmission and distribution, fuel
Increasing rainfall Flooding Economic slow
Power supply interruption down production and transport; Environmental compliance monitoring is
Extreme typhoon events Soil Erosion
regularly undertaken by DOE to ensure effective
Increasing temperature Landslide Integration of structural adaptations into application of social and environmental
Water supply reduction the design of energy infrastructures and safeguards. The most common mode being
structural design strengthening; carried-out is through the multi-stakeholders
Refineries and Depots Sea level rise Coastal Inundation Forced outages/refineries Structural Risk
and depots operation monitoring commonly termed as Multipartite
Increasing rainfall Flooding interruption Economic slow
down Implementation of infrastructure Monitoring Team (MMT). These activities
Extreme typhoon events Soil Erosion Fuel supply interruption reinforcement measures such as: are carried out with the following objectives:
Increasing temperature Landslide a) sharing of knowledge, experiences and
Water supply reduction o strengthening of power transmission provide recommendations to further enhance
Power transmission Sea level rise Coastal Inundation Forced outages/ Power Structural Risk
and distribution systems, underground monitoring procedures; b) ensure compliance
and distribution transmission and cabling for power distribution system; of project proponent with standards as
systems Increasing rainfall Flooding distribution systems Economic slow
operation interruption down stipulated in the Environmental Management
Power supply interruption o strengthening of fuel distribution Plan, Environmental Compliance Certificate
Increasing temperature Landslide
systems, underground fuel pipeline (ECC) conditions and other related permits;
Toppling of Infrastructure distribution system; c) assist in harmonizing the relationship of
all stakeholders to ensure public and social
Fuel Distribution Sea level rise Coastal Inundation Forced outages/ fuel Structural Risk
systems barges, distribution systems installation
o of infrastructure acceptability of energy projects; d) prepare,
pipelines, fuel stations Increasing rainfall Flooding operation interruption Economic slow
down intervention e.g. sea walls/coastal integrate and disseminate monitoring reports
Extreme typhoon events Soil Erosion Fuel supply interruption
defense; and, and submit recommendation to the DENR; and,
Increasing temperature Landslide e) monitor community information, education
Toppling of Infrastructure o soil erosion control system. and communication activities.
Coal mines, oil, gas Sea level rise Coastal Inundation Forced outages/ coal Structural Risk
and geothermal drilling mines, oil/gas/geothermal Mainstream climate change adaptation The MMT is a required mechanism under the
rigs Increasing rainfall Flooding drilling rigs operation Economic slow
interruption down in energy policies, plans and programs Philippine Environmental Impact Statement
Fuel supply interruption including laws and regulations; System. Its creation aims to encourage public/
Increasing temperature Landslide stakeholders participation, and to provide
Toppling of Infrastructure Development of strategies to address appropriate check and balance mechanisms in
changing demand patterns; compliance monitoring of development project
Solar PV systems, Sea level rise Coastal Inundation Forced outages/ solar Structural Risk
wind power systems PV systems, wind power implementation.
Increasing rainfall Flooding systems operation Economic slow
interruption down o Investment in technological change to
Power supply interruption address energy demand and supply The MMT is composed of representatives of
Increasing temperature Landslide options; the proponent and of a broad spectrum of
Toppling of Infrastructure stakeholder groups including representatives
from the local government units, non- COC 41 Coal Mine Project-PNOC- VII. INTERNATIONAL ENERGY COOPERATION
government organizations, and peoples Exploration Corporation
organizations, the community, the womens COCs 77, 78, and 93 Coal Mine Projects- The energy policy framework being pursued by
sector and whenever necessary, the academic, Filipinas Systems Inc. (formerly Bilateral Cooperation
the Philippines aptly responds to the diversed
relevant government agencies and other sectors. Blackstone Energy Corporation) requirements of the energy sector. The role of
COC 126 Coal Mine Project- Daguma Bilateral agreements with other countries,
the government is of great consequence and institutions and agencies are being entered
The MMT is operationalized through the Agro-Minerals, Inc. magnitude that policies, plans and programs
formulation of an annualized monitoring plan COC 127 Coal Mine Project-Bislig into by the Philippines through MOA and
transcend the domestic arena. Under the banner MOU, Memorandum of Intent, Memorandum
that covers air and water quality, biophysical Venture Construction and Development, Energy Access for More, development of energy
and socioeconomic monitoring activities. Inc. of Cooperation, among others. Following are
policies is being fortified by the creation of an notable bilateral agreements of the Philippines
COC 130 Coal Mine Project-Brixton environment which allows cooperation and
The DOE, as member of the MMT, participates Energy and Mining Corporation with other countries:
dynamism with other countries.
in the environmental compliance monitoring of COC 134 Coal Mine Project-Sultan
the following energy projects namely: Energy Philippines Corporation The 5th Meeting of the Philippines-Indonesia
To be globally competitive, the DOE anchors its Joint Commission for Bilateral Cooperation
COC 138 Coal Mine Project-Bonanza ERA through the guideposts of energy security,
Natural Gas Projects: Resources, Inc. (JCBC) was held on 14 December 2011,
optimal energy pricing, and sustainable in Manila. The JCBC is a consultative and
COC 145 Coal Mine Project-Great Wall energy system. Said expanded approach is an
Kepco Ilijan Corporation Mining and Power Corporation monitoring mechanism that facilitates
effective device in overcoming challenges in the discussion and implementation of cooperative
Malampaya Onshore and Offshore Gas institution of international energy relations.
Project Geothermal Projects: undertakings between countries. In the
Along with windows of investment opportunity, area of energy cooperation, the Commission
First Gas Corporation an aggressive energy market becomes apparent.
Mt. Apo and Tongonan Geothermal agreed to review the 2001 MOU on coal, gas
Coal Projects: Projects-Energy Development and geothermal energy development.
In consonance with the countrys aim to ensure
Corporation energy security, local and foreign investors are
SEM-Calaca Power Corporation The MOU with Brazil the first bilateral
being invited to participate in the PECR for the cooperation on energy on Bioenergy
Cebu Energy Development Corporation Oil Projects: exploration, development and production of
108.5 MW San Ramon Power Inc. Cooperation aims to facilitate the
energy resources such as petroleum, geothermal development of biofuels particularly
300.0 MW Therma South Energy Project SC14-C Galoc Field and Area and coal. This is further amplified by offering
200.0 MW Southern Mindanao Coal- Development Project bioethanol. The MOU, which was signed
possible investments in the construction of on 24 June 2009, is seen to support the
Fired Station 56.0 MW Southern Philippine Power strategic natural gas infrastructure projects, like
Mauban Power Station: Quezon Power Corporation Biofuels Act of 2006. Brazil is one of the
LNG import facilities and pipeline transmission largest producer and exporter of ethanol in
Limited, Inc. systems.
Pagbilao Power Station: Team Energy the world contributing about 90.0 percent
Corporation of the global market supply. The other MOU
The Philippines is assuming an active role in with Brazil, signed on 23 August 2011, is a
Masinloc Power Partners Company Ltd.: the energy cooperation programs of various
AES Company technical cooperation to promote initiatives
international organizations such as the in priority areas of both countries.
Association of Southeast Asian Nations (ASEAN),
and the APEC. Moreover, the country has The MOA with India on Enhanced Cooperation
been undertaking dialogues, and bilateral and in the Field of Renewable Energy was signed
multilateral agreements with other countries, in October 2007 prior to the ratification of
where energy cooperation is an indispensable the RE Act of the Philippines. Said agreement
ingredient. complements the landmark legislation on
renewable energy which provides for the
aggressive development and utilization of
renewable energy resources.
The agreement is to be in force for a period

of three (3) years and may be extended for
another two (2) years by mutual consent of storage, distribution and utilization of related Sciences. Under the MOU, the DOE implemented targets embodied in the Master Plan on ASEAN
both countries. The Philippines has recently facilities, and promotion and development a project title Coalbed Methane (CBM) Resource Connectivity and the aspiration of an ASEAN
agreed to the extension of the MOA. of potential synergy. Consequently, another of Selected Coalfields: A New Alternative Clean Community by 201593. During the conduct
MOU was signed between PNOC and Public Burning Fossil Fuel from 2007-2010. The of the 8th AMEM+3, the Ministers agreed that
The MOU with Korean Consortium SK Company Limited (PTT) in February 2004 project studied coalbed methane resource enhancing intra-ASEAN connectivity will bring
Engineering & Construction Co, Ltd., Korea to establish a Technical Working Group potential in several coalfields in the country, the region closer to its goal of achieving greater
Western Power Co, Ltd. and Archinet (TWG) under the supervision of the Joint which may be tapped as fuel. Experts/scientists energy security94.
International Inc., a Filipino company was Cooperation Committee (JCC) created from USGS were dispatched to the country to
signed in February 2008 for the development pursuant to the aforementioned MOU with provide lecture on coalbed assessment and Meanwhile, the Ministers during the 5th EAS
of the natural gas industry. The MOU was Thailand. utilization, while DOE personnel were sent to Energy Ministers Meeting (EMM) encouraged
extended for another year from its original the U.S. for training on the same subject. the continued updating and information sharing
scheduled termination. Likewise, the MOU on Joint Cooperation on on the use of energy-saving technologies and
Gas Value Chain Business between PNOC reaffirmed the importance of establishing
The scope of the cooperation would include and PTT was signed on 5 October 2007. The Regional Cooperation efficient, transparent, reliable, competitive and
the Province of Bataan as the primary MOU is a joint cooperation on oil and gas flexible energy markets as a means to provide
beneficiary. However, it is expected to also exploration and promotion of development The Philippines actively participates in regional affordable, secure and clean energy supplies for
benefit neighboring municipalities of Clark and investments in certain areas mutually energy cooperation, and notable among which the region95.
and Subic, as well as the Metro Manila areas. agreed by parties. The Work Program are the ASEAN, APEC, and the Asia-Europe
Based on the progress report (technical identified joint studies for BatMan 1 Project Meeting. Projects and Agreements
study) of the Korean Consortium, the PNOC- (Transmission Pipeline), BatMan 2 Project
Alternative Fuels Corporation (PAFC) site (Transmission Pipeline, LNG Receiving Association of Southeast Asian Nations Several projects and agreements are being
in Limay, Bataan was found suitable for the Terminal, Power Plants), BatCave Project (ASEAN) implemented under the ASEAN such as the
480-MW natural-fired power plant but not (Sub-sea Pipeline) and other natural gas finalization of the guidelines to speed up
for LNG terminal (underground storage value chain business including, but not Since the groups creation in 1967, Member the implementation of the ASEAN Power
cavern). limited to, transmission & distribution Countries of the ASEAN have undertaken energy Grid (APG), the Trans-ASEAN Gas Pipeline
pipeline network, gas processing, storage, cooperation activities. Presently, regional (TAGP) Infrastructure Project, including the
The cooperation agreement with Kuwait LNG receiving terminals, supply and trading, projects that were implemented and continued infrastructure for LNG trading, the ratification
was signed on 15 August 2008 to establish transportation, and sale of LNG to the to be carried out are under the framework of the of the ASEAN Petroleum Security Agreement
a general framework for cooperation to Philippines. APAEC 2010-2015. The sub-sector networks (APSA), and the ASEAN Free Trade Agreement
promote and encourage joint activities in under the APAEC are focused on the following (AFTA).
the fields of oil and gas in accordance with It is notable that since 2003, PTT of areas: energy infrastructure integration
existing laws of both countries. It establishes Thailand has been actively involved in through the regional power grid and gas pipeline Guidelines to speed up the implementation of the
bilateral/multilateral cooperation, initiate the Philippine downstream oil industry. interconnectivity; regional energy policy and ASEAN Power Grid have been recommended and
studies, pooling of resources by both PTT has established presence by putting planning; energy efficiency and conservation; are awaiting finalization. This specifically applies
governments and/or private sector for joint several gasoline stations since the country collaboration on coal development and use; to the reliability of operation, safety standards
projects and initiate individual/collective went on full deregulation. And in terms of renewable energy development; and, civilian and procedures in generation and transmission,
actions to assess and review issues on oil petroleum products storage facilities, PTT nuclear energy cooperation. The ASEAN regional and investments for interconnection projects.
and gas. has constructed and owns a bulk storage cooperation on energy has expanded in recent
facility in Lapu-lapu City, Cebu which was years to include the ASEAN + 3 (Japan, Korea Another initiative being undertaken through
The Philippines and Thailand had signed inaugurated in 2006. In addition, on lease by and China) and ASEAN + 6 (Japan, Korea, China, the ASEAN Council on Petroleum (ASCOPE) is
several agreements pertaining to the the Philippine Coastal Storage and Pipeline Australia, New Zealand and India). the Trans-ASEAN Gas Pipeline which has been
development of oil and gas sector. Among Corp. (PCSPC) to PTT are storage facilities e nv i s i o n e d t o e s t a b l i s h i n t e rc o n n e c t i n g
these was the MOU between the DOE and in Subic Bay Free Port Zone, Zambales and The 29th ASEAN Ministers on Energy Meeting
Thailands Ministry of Energy on Cooperation Clark, Angeles City, Pampanga. (AMEM), including the 8th AMEM+3 and 5th
in October 2003 with the objective of East Asia Summit (EAS) were held in Jerudong, 93 Joint Ministerial Statement of the 29th ASEAN Ministers on Energy
Meeting (AMEM), 20 September 2011, Jerudong, Brunei Darussalam
undertaking joint studies, investigate and The DOE and the United States Geological Brunei Darussalam on 20 September 2011. The 94 Joint Ministerial Statement of the 8th ASEAN+3 (China, Japan and
assess possibilities of cooperation on oil and Services (USGS) signed an MOU in March 2007 on theme of the 29th AMEM focused on ASEAN Korea) Ministers on Energy Meeting, 20 September 2011, Jerudong,
Brunei Darussalam
gas exploration, development, production, Scientific and Technical Cooperation in the Earth Connectivity, which echoed the directions and 95 Joint Ministerial Statement of the 5th East Asian Summit Energy
Ministers Meeting, 20 September 2011, Jerudong, Brunei Darussalam
arrangements of electricity and natural gas explaining the procedures and operations for Liberalization; Business Facilitation; and, and Analysis, New and Renewable Energy
in the ASEAN to ensure greater security and the activation/deactivation of assistance to a Economic and Technical Cooperation. Technologies) and two Task Forces: one on
sustainability of energy supply in the region. distressed member state. On the other hand, Biofuels and the other on Energy Trade and
medium- and long-term measures include APEC is the premier forum for trade and Investment (ETITF).
Meanwhile, the new APSA was signed by the participation of member states in joint venture investment liberalization in the Asia-Pacific
ASEAN Foreign Ministers on 01 March 2009 exploration, energy diversification, energy region and has set target dates for free and During the 9th meeting of the APEC Energy
during the 14th ASEAN SUMMIT in Cha-am, efficiency, research and development, oil and open trade, not later than the year 2010 Ministers held in Fukui, Japan on 19 June
Huahin, Thailand. To date, the ASEAN member gas market liberalization, and oil stockpiling, for industrialized economies, and 2020 for 2010, the Fukui Declaration on Low Carbon
states that have ratified the APSA include Brunei among others. developing economies, as set in the Bogor Paths to Energy Security: Cooperative Energy
Darussalam, Myanmar, Malaysia, Philippines, Declaration. To date, there are about 30 Solutions for a Sustainable APEC emphasized
Thailand, Singapore and Vietnam. Cambodia, On the other hand, the ASEAN integration in the bilateral free trade agreements (FTAs) that have the challenges such as emerging concerns on
Indonesia and Lao PDR are in the final stages trade of goods has been governed by a number been concluded between Member Economies. global environment and the economy, efficient
of domestic consultations in ratifying the APSA. of separate regional legal instruments. The goal Likewise, APEC is also pursuing trade and use of energy and cleaner energy supply that
It was during the 17th AMEM held in July 1999 of a single market and production base with free investment liberalization through its Regional APEC economies have to face to ensure regional
in Bangkok, Thailand when the Philippines flow of goods by 2015 has been envisaged in the Economic Integration agenda. energy security.
suggested a review of the 1986 APSA to make ASEAN Economic Community (AEC) Blueprint.
it more responsive to rising oil prices. It was The AEC requires ASEAN to adopt a holistic On the other hand, APEC initiatives under Meanwhile, the APEC Energy Policy Roundtable
recommended that provisions be explored approach by integrating various existing trade in the Business Facilitation activity include the and the Joint Transportation and Energy
to include pricing and operationalizing the goods related initiatives. This led to the signing following: 1) providing business with a concise Ministerial Conference were held in California,
agreement to benefit member states. Upon of a more comprehensive agreement, the ASEAN one-stop repository of customs and trade USA on 12 to 13 September 2011. The Policy
instruction of the AMEM, the National Trade in Goods Agreement (ATIGA), by the facilitation-related information for all APEC Roundtable with the theme Stability, Diversity
Committee of ASCOPE agreed to conduct a Economic Ministers. The ATIGA consolidates Member Economies; 2) the APEC Tariff Database and Resilience: Ensuring Energy for Growth
comprehensive review of the APSA during its and streamlines all the provisions in ensuring - provides users with easy access to its Member discussed the current pressing concerns on
53rd Meeting in Kuala Lumpur in April 2001. the realization of free flow of goods to provide Economies tariff schedules, concessions, energy security in the region. In the areas of
The new APSA aims to enhance petroleum them with legal standing. It also provides the prohibitions and other information; and, 3) collaboration needed within the APEC region,
security, either individually or collectively, and full tariff reduction schedule of each Member removal of behind-the-border barriers to trade the Philippines called on member economies
minimize exposure to an emergency situation, State and spells out the tariff rates to be applied through its Structural Reform agenda which to forge energy supply agreements citing as
through the implementation of short-, medium- for each year on each product up to 2015. focuses on reforming domestic policies and examples the existing coal supply agreement
and long-term measures. It establishes a institutions that adversely affect the operation between the Philippines and Indonesia, widen
petroleum-sharing scheme for crude oil and/ Under the ASEAN + 3 Energy Cooperation, of markets and the capacity of businesses to utilization of environment-friendly natural
or petroleum products to assist member states initiatives are focused on energy security, oil access and to operate efficiently, among others. gas by all sectors of the economy, as well as
which are experiencing a shortfall of at least 10.0 stockpiling, Clean Development Mechanism development of cleaner fuels such as renewable
percent of the normal domestic requirement for (CDM) projects, and capacity building on nuclear Meanwhile, the Economic and Technical energy, biofuels and other alternative sources
a continuous period of at least 30 days. energy safety. Cooperation pillar aims to build the capacity of energy through a more liberalized and
member economies to be fully participative economical flow of technology, among member
Emergency response under its short-term Asia-Pacific Economic Cooperation in the regional economic and liberalization economies.
measures includes demand restraint, fuel (APEC) process. The energy sector falls under this
switching, surge protection and information pillar. On the impact of technology in meeting the
sharing/e-trading. Likewise included is the energy security challenge, the Philippines called
Coordinated Emergency Response Mechanism The Energy Working Group (EWG) launched for innovation in energy efficient technologies,
(CERM), which may be implemented to in 1990 aims to maximize the energy sectors development of energy service companies or
immediately assist a member state in distress. contribution to the regions economic and social ESCOs and scaling up development of various
CERM is a framework by which coordinated well-being, while mitigating the environmental renewable energy sources. One potential
regional consultations will implement the effects of energy supply and use. resource expected to improve security of energy
APSA and rationalize plans and programs to supply is ocean energy. Thus, cooperation on
enhance security of petroleum supply in times The EWG is assisted by four (4) Expert Groups, R&D on ocean energy should be pursued to
of supply shortages in the ASEAN region. The The APEC primarily operates under three (3) namely: the Clean Fossil Energy; Energy make use of this vast potential resource.
CERM provides for the trigger mechanism, pillars of activities: Trade and Investment Efficiency and Conservation; Energy Data
Meanwhile, the First APEC Transportation and renewable communities that seeks to develop on policies and incentives, available Republic of Afghanistan, ACDs membership has
Energy Ministerial Conference is a public-private synergy, facilitate dialogue, best practices, technologies and best practices; now increased to 32.
dialogue. A major output of the Conference was knowledge and information sharing, capacity
the adoption of the Action Agenda to move enhancement, and encourage investment. opportunities for technology deployment Among the areas of cooperation espoused
APEC towards An Energy Efficient, Sustainable, and transfer from selected Member States by ACD include: energy, poverty alleviation,
and Low-Carbon Transport Future. Among IRENA activities include provision of useful that would hasten the development of local agriculture, transport linkages, biotechnology,
others, the Action Agenda directed both the advice and support to both developed and capacity and competence; E-commerce, infrastructure fund, E- education,
Transportation Working Group and the EWG developing countries in accelerating the SMEs cooperation, IT development, science and
towards: application of renewable energy and meet the opportunities to participate in education, technology, tourism, financial cooperation, and
anticipated growing demand in global energy training, joint research and other capacity- human resource development.
1. Strengthening transportations role in a by combining the use of renewable energy building;
clean-energy future; with energy efficiency. It facilitates access The Philippines is one of the co-prime movers
to all relevant information, including reliable participation in a wide network that would on energy together with Indonesia, Lao PDR,
2. Developing energy efficient transport data on the potential of renewable energy, open up and expand opportunities for Kazhakstan, China, Bahrain and Qatar. The
systems for livable low-carbon best practices, effective financial mechanisms investment by other Member States in ACD Action Plan was drafted by the Philippines
communities; and state-of-the-art technological expertise. It renewable energy in the country; and, and Indonesia, which is being proposed to be
likewise gathers world experts in workshops it revisited on its responsiveness to the ACD goal
3. Powering low-carbon transport; and, organizes, assesses the readiness of the member access to policy advice and assistance, on energy security and the new directives issued
countries to adopt renewable energy, prepares financing mechanism, economics and energy during the First ACD Summit97.
4. Greening the supply chain: Energy analysis and makes policy recommendations efficiency measures.
efficient freight transportation. to governments for the wider deployment of International Atomic Energy
renewable energy. International Energy Forum Agency (IAEA)
Asia-Europe Meeting (ASEM) (IEF)
IRENA membership is open to States that are The IAEA is an international agency with the
The ASEM was established in 1996 working members of the United Nations and regional The IEF is a biennial meeting/dialogue primary purpose of accelerating and expanding
under the three (3) pillars of: 1) political intergovernmental economic integration of Ministers from more than 60 energy the contribution of atomic energy to peace,
dialogue; 2) security and the economy; and, 3) organizations that are constituted by sovereign producing and consuming countries (from both health and prosperity in the world. The
education and culture. States, at least one of which is a Member of industrialized and developing countries). The Philippines being a member of the IAEA since
the Agency, and to which its Member States IEF Ministers also interact with CEOs of leading 1958 benefited from the technical assistance
On 11 November 2011, the conference on have transferred competence in at least one of energy companies in the International Energy through various trainings on nuclear energy
Harmonization of Biofuels Standards and the matters within the purview of the Agency Business Forum. Such meeting/dialogue, manpower development/human resource
Application to Vehicle Technologies conference (referred to as regional organizations). The which started in 1991, aims to address issues capacity enhancement.
was held in Manila provided a platform for intense desire of the government to widespread on energy supply security, as well as the links
Member Countries to promote their respective and increased adoption of renewable energy, between energy, environment and the economy. As nuclear energy is being explored as a long-
biofuels program with the end view of identifying the Philippines has signified its membership term option for power generation, a technical
the best practices for greater biofuel with signing of the Statue of the IRENA during On 22 February 2011, the DOE signed the assistance was granted to the Philippines
integration in the transport sector in ways that the Founding Conference in 2009. The same IEF Charter during Extraordinary Ministerial through dispatch of IAEA experts/review
consider food security, job creation, energy was ratified and confirmed by President Aquino Meeting held in Riyadh, Saudi Arabia. mission in January 2008. The purpose of the
security and environment sustainability96. on 19 May 2011. study visit is to advice the government on
Asia Cooperation Dialogue the general infrastructure requirements for
International Renewable As a Member State, the Philippines has the right (ACD) launching a nuclear power program and the
Energy Agency (IRENA) to one vote in the Assembly on matters requiring feasibility of rehabilitating the Bataan Nuclear
consensus. Among the privileges accorded to a The ACD is a grouping of Asian countries which Power Plant (BNPP).
IRENA was officially instituted on 26 January Member State include: seeks to promote interdependence among Asian
2009 in Bonn, Germany (Founding Conference) countries in all areas of cooperation, expand
as a central platform of the various international access to renewable energy related trade and financial market within Asia and
information and knowledge such as transform the Asian continent into an Asian
97 The First ACD Summit was held on 16-17 October 2012 in Kuwait.
96 Manila-ASEM Conference Statement, 11 November 2011, community. With the admission of the Islamic The ACD Action Plan was approved on 24 November 2013 in
Manila, Philippines Manama, Kingdom of Bahrain.
United Nations Framework The UNFCCC Bali Conference in 2007 established VIII. INVESTMENT PORTFOLIO
Convention on Climate Change the Ad-Hoc Working Group on Long-Term
(UNFCCC) Cooperative Action (AWG-LCA) with a mandate
to focus on key elements of cooperation, such The implementation of energy projects Table 84. SUMMARY OF INVESTMENT REQUIREMENTS
As energy being one of the sectors involved on as mitigation, adaptation, finance, as well identified until 2030 entail a total
Investment Requirements
the issues about climate change, the DOE has as technology and capacity building. This investment cost of PhP 2.80 trillion. Sector
(in Million PhP)
been actively participating in climate change includes GHG emission reduction commitments Most of the renewable energy projects Fossil Fuels 69,007.22
discussions, specifically conferences and after 2012 (Post-Kyoto) whereby developing identified are currently in pre- Oil and Gas 43,562.40
negotiations under the UNFCCC. countries also have to set emission reduction development stage and the estimated Coal 25,444.82
Renewable Energy 612,101.77
targets. With this, the energy sector is seen to investments are based on costs of
Hydro* 598,870.44
The UNFCCC was adopted in 1992 as an play a vital role on crafting the climate change various activities involved in the initial
Biomass 8,695.67
international political response to climate mitigation pathway for the country. stage of the project development. Geothermal* 2,346.21
change, which sets out a framework for action Wind* 1,561.26
aimed at stabilizing atmospheric concentrations The DOE is actively working with the Table 84 shows that among the energy Ocean* 493.50
of greenhouse gases to avoid dangerous Climate Change Commission (CCC) and other sub-sectors, downstream natural gas Solar* 134.69
anthropogenic interference with the climate stakeholders in the formulation of NCCAP, infrastructure facilities will require Natural Gas *** 1,212,720.00
system. Meanwhile, the Kyoto Protocol adopted which includes sustainable energy strategies the largest investment cost of PhP Alternative Fuels 244,678.55
by the UNFCCC in 1997 commits industrialized focusing on energy efficiency and conservation, 1.21 trillion. The power sector will Biodiesel 9,002.40
Bioethanol 68,850.00
countries and countries in transition to a renewable energy, and environmentally require PhP 659.70 billion followed by
E-Vehicles 25,874.00
market economy to achieve GHG emission sustainable transport systems. renewable energy at PhP 612.10 billion, CNG Buses 74,695.00
reduction targets by an average of 5.2 percent alternative fuels for transportation at CNG Taxis 48,000.00
below 1990 levels between 2008-2012 (the first PhP 244.68 billion, petroleum at PhP CNG Refilling Stations 14,900.00
commitment period). 43.56 billion and coal at PhP 25.44 Auto LPG Taxis 2,895.65
billion. Auto LPG Stations 461.50
Power Generation** 659,700.20
OIL AND GAS Total 2,798,207.74

Note :
*Pre-Development Cost
The progressive development in the **Indicative Projects
conduct of the PECR has continuously ***Indicative and Potential Projects
encouraged investments in the
Philippine upstream petroleum sector.
For the 4th PECR, 15 areas were offered which be drilled that would require a total investment
resulted in the submission of 20 bid proposals of PhP 37.51billion. In addition, 66 SCs are
from petroleum companies. targeted to be awarded over the planning period.
To sum up, the oil and gas sector requires a total
The DOE monitors 27 SCs currently existing investment of PhP 43.56 billion as shown in
nationwide and still continues to explore new Table 85.
resource discoveries to boost the upstream
petroleum industry. In line with this, aggressive Table 85. OIL AND GAS INVESTMENT REQUIREMENTS
targets are drawn up for the planning period Investment
2012-2030 which provide opportunities for the Projects/Activities Requirements
(Million PhP)
entry of investors. The sectors plan includes I. Geophysical Data Acquisition 6,056
the acquisition of 32,500 line kilometers of 2D A. 2D Seismic 2,730
seismic data and 3,200 square kilometers of B. 3D Seismic 3,326
3D seismic data. This would require PhP 2.73 II. Exploration Well Drilling 37,506
billion and PhP 3.33 billion, respectively, with A. Onshore 2,394
a total cost of PhP 6.05 billion. Further, 76 B. Offshore 35,112
offshore and 19 onshore wells are expected to Total 43,562
COAL Biomass Table 89. POTENTIAL BIOMASS INVESTMENT REQUIREMENTS
Investment
To boost local coal production, the sector is TABLE 86. POTENTIAL COAL INVESTMENT
Five (5) biomass Region Proponent/Developer Project Location Capacity (MW) Requirements
continuously looking on prospective areas for REQUIREMENTS projects with an (Million PhP)
exploration, development and production. It is Investment

aggregate capacity Luzon 46.40 7,725.36
targeted that at the end of planning horizon, coal Activity Requirement of 52 MW will III EcoMarketSolutions, Inc Dinalungan, Aurora 2.00 1,253.22
(Million PhP)
upstream projects would require a total of PhP 25.44 be implemented
Exploration 4,772.82 Cavite Biofuel Producers Inc. Magallanes, Cavite 9.00 2,124.24
billion as indicated in Table 86. In PECR 4 conducted during the planning IV-A San Pedro Thermal Conversion San Pedro, Laguna 35.00 4,320.00
Development 6,460.00
for coal, 38 areas were offered to the private sector. horizon at the cost Bongabong, Or.
Production 14,212.00
of PhP 8.70 billion. IV-B Agbayani Rice Mill
Mindoro
0.40 27.90
TOTAL 25,444.82
Luzon will host Visayas 6.00 970.31
RENEWABLE ENERGY four (4) of these VIII First Leyte Bio-Energy Corp. Palo, Tacloban City 6.00 970.31
projects with a Total Philippines 52.40 8,695.67
The National Renewable Energy Program capacity of 46.4

(NREP) has set aggressive targets for capacities Table 87. SUMMARY OF RE INVESTMENT REQUIREMENTS MW that would
to be generated utilizing various renewable Renewable Energy Capacity (MW) require PhP 7.72 billion. While, Region VIII is
Investment
energy (RE) resources in the country. As Resources Requirements (Million the sole site for the 6-MW biomass project in the
indicated in Table 87, PhP 612.10 billion will
PhP) Visayas with an investment requirement of PhP
be needed for the development of RE resources
Hydropower* 4,752.94 598,870.44 970.31 million.
Biomass 52.40 8,695.67
to provide an additional estimated capacity of
8,240 MW over the entire planning period. The
Geothermal* 1,165.00 2,346.21 Geothermal Table 90. POTENTIAL GEOTHERMAL INVESTMENT REQUIREMENTS
Wind* 1,915.00 1,561.26
preparatory activities for the development of Ocean* 70.50 493.50
Pre-Development
hydro projects comprise 98% of the total RE Solar* Table 90 shows that there Region Project Name Location
Capacity Investment
284.05 134.69 (MW) Requirement
investment cost at PhP 598.87 billion. Further, Total are 26 geothermal sites that (Million PhP)
8,239.89 612,101.77
PhP 8.70 billion will be required for biomass *Pre-Development Cost could generate a potential Luzon 680.0 1,616.05
projects, PhP 2.35 billion for geothermal capacity of 1,165 MW at an Kalinga Kalinga 120 299.25
Acupan-Itogon Benguet 20 2.10
projects, PhP 1.56 billion for wind projects, Table 88. POTENTIAL HYDROPOWER INVESTMENT investment cost of PhP 2.35 CAR Buguias-Tinoc Ifugao 60 68.18
PhP 493.50 million for ocean energy projects REQUIREMENTS billion. However, majority of Daklan Benguet 60 222.02
and PhP 134.69 million for solar projects. these sites are currently either Mainit-Sadanga Mt. Province 80 68.18
Estimated Pre- II Cagua-Baua Cagayan 45 114.30
Development undergoing pre-development III Natib Bataan 40 222.02
No. of Capacity
Hydro
Region
Projects (MW)
Investment activities or in the process of Mabini Batangas 20 3.15
Requirements IV-A
(Million PhP) securing service contracts. San Juan Batangas 20 18.22
IV-B Montelago Oriental Mindoro 40 151.88
The pre-development of 304 sites of hydro Luzon 188 3,089.7 389,302.20 Thirteen (13) sites located Mt. Labo Camarines Norte 65 81.15
projects would be able to produce 4,753
NCR 7 12.1 1,524.60 in Luzon with a potential V
Camarines Sur
Camarines Sur 70 347.40
MW at the cost of PhP 598.87 billion. Table
CAR 69 1,355.0 170,730.00 capacity of 680 MW would Geothermal
I 11 115.0 14,490.00 Southern Bicol Sorsogon 40 18.22
88 shows that Luzon has 188 potential II 31 608.4 76,658.40 cost PhP 1.62 billion, four Visayas 195.0 216.92
sites with a prospective capacity of 3,090 III 24 784.9 98,897.40 (4) sites in the Visayas with VI Mandalagan Negros Occidental 20 2.61
VII Lagunao* Negros Oriental 60 68.18
MW and will require PhP 389.30 billion to
IV-A 15 96.8 12,196.80 a total of 195 MW require an Biliran Biliran 50 64.99
IV-B 14 100.4 12,650.40 VIII
implement preparatory activities. Most V 17 17.10 2,154.60
investment cost of PhP 216.92 BatoLunas* Leyte 65 81.15
Mindanao 290.0 513.24
of these sites are located in the Cordillera Visayas 46 250.7 31,588.20 million while nine (9) sites in IX Lakewood Zamboanga del Sur 40 3.11
Region. Likewise, the Visayas area could
VI 35 163.5 20,601.00 Mindanao with a capacity of Ampiro Misamis Occidental 30 3.11
VII 10 84.2 10,609.20
generate 251 MW from 46 sites and would 290 MW require a total cost of X Balingasag Misamis Oriental 20 3.11
VIII 1 3.0 378.00
require PhP 31.59 billion. On the other Mindanao 70 1,412.54 177,980.04 PhP 513.24 million. Sapad-Salvador Lanao del Norte 30 29.52
IX 4 5.7 718.20 XI Amacan* Compostella Valley 40 3.11
hand, the Mindanao Region has 70 areas Mt. Zion North Cotabato 20 2.61
X 36 904.84 114,009.84
identified with a potential generation of XI 13 114.1 14,376.60 XII Mt. Parker South Cotabato 60 239.09
1,412 MW that would need PhP 177.98 XII 8 285 35,910.00 Mt. Matutum South Cotabato 20 226.20
XIII Mainit Surigao del Norte 30 3.41
billion for development. XIII 7 79.6 10,029.60
Total 1,165.0 2,346.21
ARMM 2 23.3 2,935.80
TOTAL 304 4,752.94 598,870.44 * Estimated Cost
Table 91. POTENTIAL WIND INVESTMENT REQUIREMENTS Table 92. POTENTIAL OCEAN INVESTMENT REQUIREMENTS
Pre-Development Estimated Pre-

Capacity Investment Development
Region Project Name Location Region Project Name Project Type Location Capacity (MW) Requirements
(MW) Requirements
(Million PhP) (Million PhP)
Luzon 1,772 1,502 Luzon 35.50 248.50
Balaoi Wind Power Project (2) Pagudpud, Ilocos Norte 40 7.00
Bangui Wind Power Project (Expansion) Bangui, Ilocos Norte 17 1.16 Palaui Island Tidal Power Sta. Ana, Cagayan 5.00 35.00
Bangui Wind Power Project (Phase III) * Burgos, Ilocos Norte 30 14.10 II Sta. Ana and Adjoining Towns in
Sual Wind Power Project Sual, Pangasinan 30 19.74 Marine Current Cagayan TBD
Cagayan Valley (2 sites)
Bayog Wind Power Project * Burgos, Ilocos Norte 12 7.00
I Pagali-Saoit Wind Power Project * Burgos, Ilocos Norte 15 7.00 III Cabangan OTEC Zambales 10.00 70.00
Buduan Wind Power Project Pagudpud, Ilocos Norte 44 5.76
Bayog Wind Power Project Burgos, Ilocos Norte 90 9.84 Matoco and Arenas Point Tidal Power Batangas 1.00 7.00
IV-A
North Pasuquin Wind Power Project Pasuquin, Ilocos Norte 100 608.78 Rosario-Malabrigo Point Tidal Power Lobo, Batangas 1.00 7.00
Mabini Wind Project Mabini, Pangasinan 48 3.41
Infanta Wind Project * Infanta, Pangasinan 48 3.41 Lubang, Occidental
Cabra Island Tidal Power 2.50 17.50
Labrador Wind Project * Labrador, Pangasinan 98 3.41 Mindoro
Aparri Wind Power Project (3) Aparri-Buguey, Cagayan 30 8.28 IV-B Looc Tidal Power Oriental Mindoro 1.00 7.00
Abulog-Ballesteros-Aparri Wind Power Project Abulog-Ballesteros-Aparri, Cagayan 45 10.70
Sta. Ana Wind Power Project (2) Sta. Ana, Cagayan 12 10.19 Sablayan OTEC Occidental Mindoro TBD
Aparri Wind Power Project (1) Aparri-Ballesteros-Camalaniugan, Cagayan 30 14.10 San Bernardino Strait Tidal Power Sorsogon 10.00 70.00
II Aparri Wind Power Project (2) Aparri-Camalaniugan-Buguey, Cagayan 48 11.01
Claveria Wind Power Project Claveria 15 7.03 Sta. Magdalena Tidal Power Sorsogon 5.00 35.00
Gonzaga Wind Power Project Gonzaga, Cagayan 15 7.03 V
San Bernardino strait between
Sanchez Mira Wind Power Project Sanchez Mira, Cagayan 15 7.03 Bicol Peninsula and Samar Leyte Marine Current Bicol TBD
Sta. Ana Wind Power Project (1) Sta. Ana, Cagayan 30 14.10 Corridor (3 sites)
Carranglan Wind Power Project * Carranglan, Nueva Ecija 30 1.00
Sta. Rita Wind Power Project * Subic / Olongapo, Zambales 90 21.34 Visayas 11.00 77.00
III
Carranglan Wind Power Project * Carranglan, Nueva Ecija 50 10.00 Anin-iy OTEC Antique TBD
Mt. Redondo Wind Power Project Subic, Zambales 112 608.78
Tanay Wind Power Project Tanay-Pililla, Rizal 30 14.10 VI Iloilo City - Buenavista Tidal Power Guimaras 1.00 7.00
IV -A Infanta Wind Power Project Infanta, Quezon 10 2.75 Nueva Valencia Tidal Power Guimaras 2.50 17.50
Calauag Wind Power Project Calauag, Quezon 10 2.84
Abra de Ilog Wind Power Project Abra de Ilog, Mindoro Occidental 30 14.10 Balicuatro Point-San Bernardino Tidal Power Northern, Samar 5.00 35.00
Bank
IV -B Odiongan Wind Power Project * Tablas Island, Romblon 2 3.99 VIII
Napsan Wind Power Project * Puerto Princesa, Palawan 10 3.99 Tacloban City-Iloilo-Basey-Sta. Rita Tidal Power Leyte & Samar 2.50 17.50
Mercedes Wind Power Project Mercedes, Camarines Norte 10 4.95
Paracale-Vinzons Wind Power Project Paracale-Vinzons, Camarines Norte 26 2.97 Mindanao 24.00 168.00
Mercedes Wind Power Project Talisay-Daet-Mercedes, Camarines Norte 100 9.09 Cotabato City, North
Misibis Wind Power Project* Cagraray Island, Bacacay, Albay 5 2.49 XII Bongo Island Tidal Power 1.00 7.00
Cotabato
V
Dapdap Wind Power Project * Legaspi City, Albay 10 2.49 Dapa Tidal Power Surigao del Norte 5.00 35.00
Donsol Wind Power Project * Donsol, Sorsogon 5 3.99 XIII
Prieto Diaz Wind Power Project * Prieto Diaz, Sorsogon 10 3.99 Hinatuan Passage Tidal Power Surigao del Norte 10.00 70.00
Prieto Diaz Wind Project Prieto Diaz, Sorsogon 420 9.09 Bucutua-Bulaan Island Tidal Power Tongkil, Sulu 1.00 7.00
Visayas 143 59.28
Sibunag Wind Power Project Sibunag, Guimaras 16 10.26 Lugus-Tapul Island Tidal Power Sulu 2.50 17.50
Nueva Valencia Wind Power Project Nueva Valencia, Guimaras 10 10.31 ARMM Northern Sibutu Tidal Power Tawi-tawi 2.50 17.50
Ilog Wind Power Project Ilog, Negros Occidental 30 1.76
VI Ibajay Wind Power Project Ibajay, Aklan 10 10.22 Sibutu Island Tidal Power Tawi-tawi 1.00 7.00
Barotac Nuevo Wind Power Project Barotac Nuevo, Iloilo 12 10.31 Simunul Tidal Power Tawi-tawi 1.00 7.00
Pulupandan Wind Power Project Pulupandan, Negros Occidental 15 7.27
Pandan Wind Power Project * Pandan 10 4.70 Total 70.50 493.50
Bayawan-Tanjay-Bais-Pamplona Wind Power Bayawan-Tanjay-Bais-Pamplona, Negros
30 1.76
VII Project Oriental
Anda-Guindulman Wind Power Project
Total Philippines
Anda-Guindulman, Bohol 10
1,915
2.71
1,561.00
Ocean investment requirement of PhP 493.50 million.
Note: Based on actual costs submitted to REMB Luzon has 11 sites identified with an estimated
* Estimated Cost Twenty-four (24) sites nationwide will be total capacity of 35.5 MW. Visayas could generate
studied to determine the viability in harnessing 11 MW in four (4) sites and would need PhP 77
Wind sites in Regions I, II, III, IV and V with a potential the ocean resources for power generation using million. The eight (8) sites in Mindanao could
of 1,772 MW that would cost a total of PhP 1.5 various ocean energy technologies. These sites likewise produce 24 MW with a development
Forty-eight (48) sites for wind power generation billion. Nine (9) sites are located in the Visayas have a potential capacity of 70.5 MW with an cost of PhP 168 million.
are identified in Luzon and Visayas with a total area particularly in Regions VI and VII with a
estimated capacity of 1,915 MW and investment potential of 143 MW and an estimated cost of
cost of PhP 1.56 billion. Luzon has 39 of these PhP 59.28 million.
Table 93. POTENTIAL SOLAR INVESTMENT REQUIREMENTS NATURAL GAS Table 94. POTENTIAL NATURAL GAS INVESTMENT
REQUIREMENTS
Estimated Pre-
Development
The Batangas to Manila (Batman1) project Investment
Projects/Activities Requirements
Region Project Name Location
Capacity
(MW)
Investment in Luzon will be implemented in 2017. The (Million PhP)
Requirements (Million
PhP)
Floating Storage Regasification Unit (FSRU) Luzon 48,020.00
Pipelines 24,250.00
that will be installed in Mindanao in 2016 would Bataan - Manila (BatMan 2) 6,610.00
Luzon 230.05 116.92
have an estimated cost of PhP 42.7 billion. In Sucat - Fort Bonifacio 630.00
I Pasuquin - Burgos Solar Power Project Pasuquin-Burgos, Ilocos Norte 50 11.06
addition, the Pagbilao LNG terminal hub facility Sucat - Malaya (SuMa) 1,470.00
Casiguran Solar Project Casiguran, Aurora 1 0.75 in Pagbilao, Quezon will be implemented by Sucat-Quirino Pipeline 10,000.00
Casiguran Solar Power Project Casiguran, Aurora 2 0.75 Energy World Corporation in 2014. Pipelines to Subic and Clark
BatMan 2 - Clark 910.00
Clark Freeport Zone Solar Power
Clark Freeport Zone 50 26.30
III Project There are other potential pipeline projects BatMan 2 - Subic 1,470.00
Clark Economic and Freeport Zone Angeles-Mabalacat, Pampanga 7.5 4.00 and LNG terminals identified in Luzon and Bataan - Cavite (BatCave) 1,690.00
Pantabangan Dam Solar Power Project Pantabangan, Nueva Ecija 2 2.59 infrastructure facilities to be pursued in EDSA - Taft Loop 1,470.00
LNG Terminal 23,770.00
San Pascual and Batangas City, Mindanao as detailed in Table 94. The projects
Sta. Rita Solar Power Project 0.5 0.07 Batangas LNG 23,770.00
Batangas identified in Luzon would require a total of PhP Storage and Regasification 18,770.00
Canlubang Solar Power Project Canlubang, Calamba City, Laguna 0.215 2.04
48.02 billion while the projects in Mindanao Marine Facilities 5,000.00
Ulano, Tanauan City Solar Power
Brgy. Ulano, Tanuan, Batangas 0.18 29.52 will require PhP1.12 trillion. The Mindanao Mindanao 1,122,000.00
Project
projects will consist of pipeline distribution Distribution System for CDO& PHIVIDEC 360,000.00
Malvar, Batangas Solar Power Project Malvar and Santo Tomas, Batangas 0.15 0.07 systems to the PHIVEDEC Ecozone, Cagayan de Distribution System for Iligan 172,000.00
Cavite Export Zone Solar Power Project Cavite Export Zone 50 22.65 Oro City, Iligan City, General Santos and Davao Distribution System for Davao and
General Santos 590,000.00
IV-A
Polilio Solar Power Project Burdeos, Quezon 2 3.61 City. Total 1,170,020.00
Binan-Cabuyao-Santa Rosa,
Laguna Solar Power Project 12.5 4.00
Laguna
Macabud, Rodriguez, Rizal Solar Power
Project
Macabud, Rodriguez Rizal 30 3.70 ALTERNATIVE FUELS
Metro Manila Solar Power Project Metro Manila 20 4.00 Table 95. ALTERNATIVE FUELS INVESTMENT
IV-B Sibuyan Solar Power Project San Fernando, Romblon 2 1.81

The DOE continuously exerts its effort to REQUIREMENTS
develop cleaner and environment- friendly Alternative Transport Investment Requirements

Visayas 32.00 2.98
alternative fuels for the transport sector such as Fuels (Million PhP)
VI E. Magalona Solar Power Project E.B. Magalona, Negros Occidental 30 1.17
CNG (for buses and taxis), biodiesel, bioethanol, Biodiesel 9,002.40
VII Camotes Solar Power Project Lapu-Lapu City, Cebu 2 1.81 Bioethanol 68,850.00
autoLPG and electric vehicles. The development E-Vehicles 25,874.00
Mindanao 22.00 14.79 of biofuels and its infrastructure would require CNG Buses 74,695.00
Kirahon, Villanueva, Misamis CNG Taxis 48,000.00
X Kirahon Solar Power Project
Oriental
20 12.98 a total of PhP 244.68 billion. CNG Refilling Stations 14,900.00
XIII Dinagat Solar Power Project Libjo, Surigao del Norte 2 1.81 Auto LPG Taxis 2,895.65
Total Philippines 284.05 134.69 Compressed Natural Gas (CNG) Vehicles Auto LPG Stations 461.50
TOTAL 244,678.55
CNG Buses
Solar with a potential capacity of 230 MW will be In 2004, the DOE implemented the Natural Gas routes. It is targeted that a total of 14,939 buses
studied in Luzon which would need PhP 116.92 Vehicle Program for Public Transport (NGVPPT) will be needed nationwide that would require
Twenty (20) areas in the country are identified million. Two (2) sites with 32 MW are identified which provided an attractive incentive package PhP 74.70 billion. It is projected that Luzon
for pre-development activities of solar energy in Visayas with an estimated cost of PhP 2.98 to entice the private sector to participate in the will need 70.0 percent of the buses which is
resources. Table 93 details these sites that could million. Similarly, two (2) sites with 22 MW program. The program envisioned that a total equivalent to 10,439 units, Visayas with 2,400
generate a total of 284 MW with investment will also be validated in Mindanao which would of 15,000 units CNG-fed buses will be available units and Mindanao with 2,100 units. The
cost of PhP 134.69 million. Sixteen sites (16) require PhP14.79 million. nationwide in 2030. To date, there are 61 details are shown in Table 96.
Compressed Natural Gas (CNG) buses with 41
buses plying over the Batangas-Laguna-Manila
Table 96. CNG BUSES INVESTMENT REQUIREMENTS Table 98. CNG REFILLING STATIONS INVESTMENT REQUIREMENTS
Luzon Visayas Mindanao Total

Investment Investment Investment Investment
Year Investment Investment Investment Investment YEAR Refilling Refilling Refilling Refilling
CNG CNG CNG CNG Requirement Requirement Requirement Requirement
Requirement Requirement Requirement Requirement Stations Stations Stations Stations
Buses Buses Buses Buses (Million PhP) (Million PhP) (Million PhP) (Million PhP)
(Million PhP) (Million PhP) (Million PhP) (Million PhP)
2012 0 0 0 0
2012 39 195 39 195 2013 1 100 1 100
2013 100 500 100 500 2014 3 300 3 300
2015 5 500 5 500
2014 300 1,500 300 1,500 2016 40 4000 40 4,000
2015 500 2,500 500 2,500 2017 9 900 1 100 10 1,000
2016 4,000 20,000 4,000 20,000 2018 2 200 1 100 3 300
2019 2 200 1 100 3 300
2017 900 4,500 100 500 1,000 5,000 2020 1 100 1 100 1 100 3 300
2018 200 1,000 100 500 300 1,500 2021 1 100 1 100 1 100 3 300
2022 1 100 2 200 1 100 4 400
2019 200 1,000 100 500 300 1,500 2023 1 100 2 200 1 100 4 400
2020 100 500 100 500 100 500 300 1,500 2024 1 100 2 200 1 100 4 400
2021 100 500 100 500 100 500 300 1,500 2025 4 400 2 200 2 200 8 800
2026 6 600 2 200 2 200 10 1,000
2022 100 500 200 1,000 100 500 400 2,000 2027 6 600 2 200 2 200 10 1,000
2023 100 500 200 1,000 100 500 400 2,000 2028 7 700 4 400 2 200 13 1,300
2024 100 500 200 1,000 100 500 400 2,000 2029 6 600 2 200 2 200 10 1,000
2030 8 800 4 400 3 300 15 1,500
2025 400 2,000 200 1,000 200 1,000 800 4,000
TOTAL 104 10,400 24 2,400 21 2,100 149 14,900
2026 600 3,000 200 1,000 200 1,000 1,000 5,000
2027 600 3,000 200 1,000 200 1,000 1,000 5,000 CNG Refilling Stations
2028 700 3,500 400 2,000 200 1,000 1,300 6,500
2029 600 3,000 200 1,000 200 1,000 1,000 5,000
2030 800 4,000 400 2,000 300 1,500 1,500 7,500
With the projected increase in the demand for implemented until 2030. This is projected to
CNG supply for both buses and taxis, there is require a total investment cost of PhP 77.85
TOTAL 10,439 52,195 2,400 12,000 2,100 10,500 14,939 74,695
a corresponding need for the installation of billion.
Table 97. CNG TAXIS INVESTMENT REQUIREMENTS
refueling or refilling stations. It is forecasted
that about 149 refilling stations will be needed Biodiesel
Investment Investment Investment Investment
during the planning period which would require
YEAR CNG
Taxis
Requirement
CNG
Taxis
Requirement
CNG
Taxis
Requirement
CNG
Taxis
Requirement PhP 14.90 billion. Biodiesel blend will increase to 5.0 percent in
(Million PhP) (Million PhP) (Million PhP) (Million PhP)
2015, 10.0 percent in 2020 and 20.0 percent by
2012 0 0
Biofuels 2025. With this requirement, a total of PhP 9.0
2013 0 0
2014 0 0 billion will be needed to install the corresponding
2015 0 0 The mandated increase in the percent blend of plants to provide the biodiesel demand.
2016 100 300 100 300 biofuels (biodiesel and bioethanol) will be
2017 100 300 100 300
Table 99 BIODIESEL INVESTMENT REQUIREMENTS
2018 100 300 100 300
2019 200 600 200 600 Supply Requirement / Exisiting
2020 300 900 100 300 100 300 500 1,500 Diesel Demand
Fuel Displacement Capacity Additional Investment
Target
2021 600 1,800 300 900 100 300 1,000 3,000 Year (In Plants Requirements
(In Blend (In Million (In Million
2022 700 2,100 200 600 100 300 1,000 3,000 Million (In KTOE) Required (Million PhP)
KTOE) Liters) Liters)
2023 700 2,100 200 600 100 300 1,000 3,000 Liters)
2012 6,923 5,869 2% 138 113 393 -
2024 700 2,100 200 600 100 300 1,000 3,000 2013 7,059 5,984 2% 141 116 393 -
2025 700 2,100 200 600 100 300 1,000 3,000 2014 7,177 6,084 2% 144 118 393 -
2026 1,400 4,200 400 1,200 200 600 2,000 6,000 2015 7,343 6,225 5% 367 301 393 -
2016 7,176 6,083 5% 359 294 393 -
2027 1,400 4,200 400 1,200 200 600 2,000 6,000 2017 7,310 6,197 5% 365 300 393 -
2028 1,400 4,200 400 1,200 200 600 2,000 6,000 2018 7,508 6,365 5% 375 308 393 -
2029 1,400 4,200 400 1,200 200 600 2,000 6,000 2019 7,710 6,536 5% 385 316 393 -
2020 7,923 6,717 10% 792 649 393 10 2,728.00
2030 1,400 4,200 400 1,200 200 600 2,000 6,000
2021 8,092 6,860 10% 809 663 833 -
TOTAL 11,200 33,600 3,200 9,600 1,600 4,800 16,000 48,000 2022 8,251 6,994 10% 825 676 833 -
2023 8,405 7,125 10% 841 689 833 1 272.80
CNG Taxis taxis will be out in the market by 2030. By 2024
2025
8,557
8,694
7,253
7,370
10%
20%
856
1,739
701
1,425
877
877
-
20

5,456.00
then, 11,200 CNG taxis will be in Luzon, 3,200 2026 8,781 7,444 20% 1,756 1,439 1,757
2027 8,864 7,514 20% 1,773 1,453 1,757 1 272.80
With the natural gas infrastructure facilities in Visayas and 1,600 in Mindanao. The total 2028 8,920 7,562 20% 1,784 1,462 1,801 -
in place by 2017, it is projected that 16,000 investment cost will be about PhP 48 billion. 2029
2030
8,997
9,031
7,626
7,655
20%
20%
1,799
1,806
1,475
1,480
1,801
1,801

1

272.80
Total 33 9,002.40
Bioethanol E-Vehicle
At present, the country is in need of bioethanol The use of E-trike is another alternative
Table 102. E-VEHICLES INVESTMENT REQUIREMENTS
supply to comply with the required 10.0 percent transport mode being promoted by the
blend of bioethanol by volume. By 2020, the Government. Currently, there are 630 electric Year E-Trikes
Investment Requirements
(Million PhP)
vehicles that exist in the country. With
Table 100. BIOETHANOL INVESTMENT REQUIREMENTS 2012 0 0
the market transformation initiative to be 2013 0 0
Diesel Demand
Supply Requirement / Exisiting
Additional Investment
introduced, 100,000 E-trikes are initially 2014 0 0
Fuel Displacement Capacity
Year
Target
Blend
Plants Requirements targeted for deployment nationwide through 2015 0 0
(In Million (In (In Million (In (In Million
Liters) KTOE) Liters) KTOE) Liters)
Required (Million PhP)
ADBs a lease-to own scheme. This will be pilot- 2016 0 0
2017 120 24
2012 3,731 2,923 0 (?) 373 209 79 - tested to prove their commercial viability. In
2013 3,789 2,969 0 379 212 133 6 15,300 2018 1,250 250
2014 3,815 2,989 0 382 213 392
addition to this, a total of 129,370 E-trikes are 2019 2,000 400
2015 3,795 2,973 0 379 212 392 - projected to be available during the planning 2020 2,000 400
2016 3,770 2,954 0 377 211 392 - period which would require an investment of 2021 4,000 800
2017 3,801 2,978 0 380 213 392 -
2018 3,901 3,057 0 390 218 392 - PhP25.874 billion. 2022 4,000 800
2023 4,000 800
2019 4,007 3,139 0 401 224 392 1 2,550
2024 4,000 800
2020
2021
4,302
4,381
3,371
3,433
0
0
860
876
481
490
422
872
15

38,250

POWER 2025 28,000 5,600
2022 4,467 3,500 0 893 500 872 1 2,550 2026 10,000 2,000
2023 4,559 3,572 0 912 510 902 1 2,550 For the planning period 2012 to 2030, a 2027 10,000 2,000
2024 4,657 3,649 0 931 521 932
2025 4,683 3,669 0 937 524 932 1 2,550 total of 7,779 MW capacity is estimated to be 2028 10,000 2,000
2029 20,000 4,000
2026 4,757 3,727 0 951 532 962 generated from the indicative power projects
2030 30,000 6,000
2027 4,843 3,795 0 969 542 962 1 2,550
listed in Table 103 requiring a total investment
2028 4,937 3,868 0 987 552 992 Total 129,370 25,874
2029 5,006 3,922 0 1,001 560 992 1 2,550 cost of PhP 659.7 billion. In Luzon, a total of
2030 5,052 3,959 0 1,010 565 1,022 PhP 430.74 billion will be needed to generate
Total 27 68,850
6,819.3 MW of additional capacity. On
the other hand, Visayas is expected to TABLE 103. INDICATIVE POWER GENERATION INVESTMENT
bioethanol blend will increase to 20.0 Table 101. AUTO LPG INVESTMENT REQUIREMENTS
provide an additional 433 MW capacity REQUIREMENTS
percent and that would require a total with a total estimated investment cost of Type of Fuel
Rated Investment Requirements
of 13,390 million liters by 2030. Around

Auto LPG Taxis Auto LPG Stations PhP 186.28 billion. Moreover, indicative Luzon
Capacity (MW)
6,819.30
(Million PhP)
430,738.92
27 bioethanol plants are needed that Year Auto-LPG
Investment
LPG
Investment power projects in Mindanao show a total Coal 3,075.00 251,891.00
Requirements Requirements
would entail a total investment cost of
Taxis
(Million PhP)
Stations
(Million PhP) estimated investment cost of PhP 42.68 Diesel 150.00 5,670.00
Natural Gas 2,900.00 88,640.00
PhP 68.85 billion. 2012 248 161 12 85.20 billion will be needed for the additional Geothermal 120.00 25,200.00
2013 300 195 4 28.40 527 MW capacity. Hydropower 150.00 15,750.00
2014 300 195 4 28.40
Auto-LPG 2015 300 195 4 28.40
Wind 392.00 39,061.50
Biomass 32.30 4,526.42
2016 300 195 3 21.30 Visayas 433.00 186,284.97
The utilization of LPG as an alternative 2017 300 195 4 28.40 Coal 184.00 13,910.40
fuel for taxis is expected to continuously 2018 300 195 4 28.40 Geothermal 80.00 16,800.00
2019 300 195 4 28.40 Wind 104.00 5,138.20
increase annually until 2026. With this
2020 300 195 3 21.30 Biomass 65.00 150,436.37
trend, the conversion of taxis into auto- Mindanao 527.00 42,676.31
2021 300 195 4 28.40
LPG vehicles is projected to cost PhP Coal 420.00 39,240.00
2022 300 195 4 28.40
2.90 billion. In order to sustain the 2023 300 195 4 28.40
Hydropower 32.00 1,517.47
Solar 35.00 1.50
supply of auto-LPG until 2026, 65 LPG 2024 300 195 3 21.30 Wind 5.00 7.00
stations are required nationwide which 2025 300 195 5 35.50 Biomass 35.00 1,910.34
would require a total investment cost of 2026 300 195 3 21.30 Total 7,779.30 659,700.20
2027 0 0 0 0.00
PhP 461.50 million.
2028 0 0 0 0.00
2029 0 0 0 0.00
2030 0 0 0 0.00
Total 4,448 2,896 65 461.50
DEPARTMENT OF ENERGY OFFICIALS LIST OF ACRONYMS
Carlos Jericho L. Petilla ACD Asia Cooperation Dialogue
Secretary ADB Asian Development Bank
AEC ASEAN Economic Community
Loreta G. Ayson, CESO I AFF Agriculture, Fishery and Forestry
Raul B. Aguilos, CESO III AFTA ASEAN Free Trade Area
Zenaida Y. Monsada AFV Alternative Fuel Vehicles
Donato D. Marcos AMORE Alliance for Mindanao Off-grid Renewable Energy
Ramon Allan V. Oca* ANTECO Antique Electric Cooperative
Undersecretaries A.O. Administrative Order
APAEC ASEAN Plan of Action for Energy Cooperation
Matanog M. Mapandi APEC Asia-Pacific Economic Cooperation
Daniel A. Ariaso, Sr., CESO II APG ASEAN Power Grid
APM Automatic Pricing Mechanism
Jose Raymund A. Acol
Assistant Secretaries
APSA ASEAN Petroleum Security Agreement
AMEM ASEAN Ministers on Energy Meeting
Bureaus AREC Affiliated Renewable Energy Center
ARMM Autonomous Region for Muslim Mindanao
Dir. Jesus T. Tamang Dir. Mylene C. Capongcol ASCOPE ASEAN Council on Petroleum
Asst. Dir. Carmencita A. Bariso, CESO IV Asst. Dir. Irma C. Exconde ASEAN Association of Southeast Asian Nations
Energy Policy and Planning Bureau Electric Power Industry Management Bureau ASEM Asia-Europe Meeting
ATIGA ASEAN Trade in Goods Agreement
Dir. Rodela I. Romero Dir. Rino E. Abad ATO Permanent Authority to Operate
Asst. Dir. Melita V. Obillo Asst. Dir. Ismael U. Ocampo Auto-LPG Auto-Liquefied Petroleum Gas
Oil Industry Management Bureau Energy Resource Development Bureau AWG-LCA Ad-Hoc Working Group on Long-Term Cooperative Action
BatCave Bataan-Cavite
Dir. Patrick T. Aquino Dir. Mario C. Marasigan BatMan 1 Batangas-to-Manila
Asst. Dir. Jesus C. Anunciacion Asst. Dir. Marissa P. Cerezo BAU Business-as-Usual
Energy Utilization Management Bureau Renewable Energy Management Bureau BEP Barangay Electrification Program
BMGP Bac-Man Geothermal Plant
BOC Bureau of Customs
Services BOI Board of Investments
BOT Build-Operate-Transfer
Dir. Arthus T. Tenazas, CESO IV Dir. Patrick T. Aquino (OIC) BPO Business Process Outsourcing
Legal Services Information Technology & Management Services BRECDA Barangay Renewable Energy and Community Development Associations
CA Certificate of Accreditation
Dir. Angelina V. Manga CAI Certificate of Authority to Import
Administrative Services CASA Central Azucarera de San Antonio
Dir. Amelia D. de Guzman CBM Coalbed Methane
Dir. Araceli S. Soluta Energy Research Testing and Laboratory Services CCGT Combined-Cycle Gas Turbine
Financial Services CCC Climate Change Commission
CCS Carbon Capture and Storage
CCT Clean Coal Technology
CDA Cooperative Development Authority
Field Offices CDM Clean Development Mechanism
CEDC Cebu Energy Development Corporation
Dir. Efren L. Balaoing Dir. Manuel M. Llaneza, CESO V CERM Coordinated Emergency Response Mechanism
Luzon Field Office Mindanao Field Office CEPALCO Cagayan de Oro Electric Power and Light Company
CFL Compact fluorescent lamps
Dir. Antonio E. Labios, CESO V CFPP Coal Fired Power Plants
Visayas Field Office CME Coco Methyl Ester
* Retired from government service as of May 2014
CNG Compressed Natural Gas FiT Feed-in Tariff
CNP Cebu-Negros-Panay FPIC First Philippine Industrial Corporation
COC Coal Operating Contract FRR Frequency Regulation Reserve
CR Contingency Reserve FSRU Floating Storage Regasification Unit
CSP Competitive Selection Process FSTP Fueling Sustainable Transport Program
CTS Cable Terminal Station FTA Free Trade Agreements
DAP Development Academy of the Philippines GDP Gross Domestic Product
DBCC Development Budget Coordination Committee GEF Global Environment Facility
DBP Development Bank of the Philippines GEMP Government Energy Management Program
DC Double-Circuit GenCo Generation Company
D.C. Department Circular GHG Greenhouse Gas
DDP Distribution Development Plan GOMP Grid Operating and Maintenance Program
DEAEEA Don Emilio Abello Energy Efficiency Award GREOC Geothermal Renewable Energy Operating Contract
DENR Department of Environment and Natural Resources GRESC Geothermal Renewable Energy Service Contract
DILG-BFP Department of Interior and Local Government-Bureau of Fire Protection GSLFAP Gasoline Station Lending and Financial Assistance Program
DLF Development and Livelihood Fund GSC Geothermal Service Contract
DLSU De La Salle University GSPA Gas Sales and Purchase Agreement
DOE Department of Energy GVA Gross Value-Added
DOF Department of Finance HECS Household Energy Consumption Survey
DOST Department of Science and Technology HEDP Household Electrification Development Plan
DOTC Department of Transportation and Communication HEP Household Electrification Program
DOTC-LTO DOTC - Land Transportation Office HFCE Household Final Consumption Expenditure
DPWH Department of Public Works and Highways HSC Hydro Service Contracts
DR Dispatchable Reserve HSSE Health, Safety, Security and Environment
DSM Demand-Side Management HVDC High Voltage Direct Current
DSWD Department of Social Welfare and Development IAEA International Atomic Energy Agency
DTI-BPS Department of Trade and Industry-Bureau of Product Standards IEA International Energy Agency
DU Distribution Utility IEC Information, Education and Communication
EAS East Asia Summit IECC Inter-agency Energy Contingency Committee
EC Electric Cooperatives IED Innovation Energie Dveloppement
ECC Environmental Compliance Certificate IEEJ Institute of Energy Economics, Japan
EDC Energy Development Corporation IEF International Energy Forum
EDSA Epifanio Delos Santos Avenue ILECO Iloilo Electric Cooperative
EE & C Energy Efficiency and Conservation ILP Interruptible Load Program
EF Electrification Fund IMEM Interim Mindanao Electricity Market
EHV Extra High Voltage IPP Independent Power Producer
EMB Environmental Management Bureau IPPA IPP Administrators
EMEPP ExxonMobil Exploration and Production Philippines IPRA Indigenous Peoples Rights Act
EMM Energy Ministers Meeting IRENA International Renewable Energy Agency
EMS Energy Management Standard IOPRC Independent Oil Price Review Committee
E.O. Executive Order IRR Implementing Rules and Regulations
EPIRA Electric Power Industry Reform Act ISO International Standards Organization
EPR Extended Producer Responsibility JAO Joint Administrative Order
ER 1-94 Energy Regulations 1-94 JCBC Joint Commission for Bilateral Cooperation
ERA Energy Reform Agenda JCC Joint Cooperation Committee
ERB Energy Regulatory Board JCPC Joint Congressional Power Commission
ERC Energy Regulatory Commission JICA Japan International Cooperation Agency
ESCOs Energy Service Companies LCD Liquid Crystal Display
EST Environmentally Sustainable Transport Strategy LCNG Liquefied Compressed Natural Gas
ET Loop EDSA-Taft Gas Pipeline LCS Low Carbon Scenario
ETITF Energy Trade and Investment Task Force LED Light Emitting Diode
EWCL Energy World Corporation Ltd. LFP Locally-Funded Projects
EWG Energy Working Group LGU Local Government Unit
LNG Liquefied Natural Gas PMO Project Management Office
LPG Liquefied Petroleum Gas PNOC Philippine National Oil Company
LPP Liquid Petroleum Products PNOC-EC PNOCExploration Corporation
LRT Light Railway Transit PNR Philippine National Railways
M.C. Memorandum Circular PNS Philippine National Standards
MEDP Missionary Electrification Development Plan PPP Public-Private Partnership
MEP Mindanao Energy Plan PRES Philippine Rural Electrification Service
MERALCO Manila Electric Company PSA Power Supply Agreement
MGPP Malampaya Gas-to-Power Project PSALM Power Sector Assets and Liabilities Management
MIR Minimum Inventory Requirement PSCCA Philippine Strategy on Climate Change Adaptation
MMDA Metropolitan Manila Development Authority PSP Private Sector Participation
MMSU Mariano Marcos State University PSPC Pilipinas Shell Petroleum Corporation
MMT Multipartite Monitoring Team PSPI Power Source Philippines Inc.
MOA Memorandum of Agreement PTAP Public Transport Assistance Program
MOPS Mean of Platts Singapore PTT Public Company Limited
MOU Memorandum of Understanding PTTPC Petroleum Authority of Thailand Philippine Corp.
MRT Metro Rail Transit PUB Public Utility Buses
NBB National Biofuels Board PUAFV Public Utility Alternative Fueled-Vehicles
NCCAP National Climate Change Action Plan PUP Polytechnic University of the Philippines
NCIP National Commission on Indigenous People PV Photovoltaic
NEDA National Economic Development Authority QTP Qualified Third Party
NEECP National Energy Efficiency and Conservation Program R.A. Republic Act
NFSCC National Framework Strategy on Climate Change RAES Remote Area Electrification Subsidy
NGCP National Grid Corporation of the Philippines RCOA Retail Competition and Open Access
NGI Natural Gas Institute RD&D Research, Development and Deployment
NGVPPT Natural Gas Vehicle Program for Public Transport REIS Renewable Energy Integration Study
NIPAS National Integrated Protected Areas System REOC Renewable Energy Operating Contract
NNGP Northern Negros Geothermal Plant RoBin Rosario, Cavite to Bian, Laguna
NPC National Power Corporation ROW Right-Of-Way
NPP New Power Provider RPP Rural Power Project
NREP National Renewable Energy Program RRA Rapid Rural Appraisal
NSCB National Statistical Coordination Board RPS Renewable Portfolio Standards
NCR National Capital Region RWMHEEF Reforestation, Watershed Management, Health and/or Environment Enhancement Fund
NSO National Statistics Office SEP Sitio Electrification Program
ODA Official Development Assistance SESC Solar Energy Service Contract
OPEC Organization of Petroleum Exporting Countries SHS Solar Home System
OCSP Open and Competitive Selection Process SIPCOR Siquijor Island Power Corporation
OTEC Ocean Thermal Energy Conversion SMC Semirara Mining Corporation
PAFC PNOC-Alternative Fuels Corporation SOLR Supplier of Last Resort
PAMATEC Paris Manila Technology Corporation SPEX Shell Philippines Exploration
PB Power Barge SPUG Small Power Utilities Group
P.D. Presidential Decree SRA Sugar Regulatory Administration
PDP Power Development Plan SSCMP Small-Scale Coal Mining Permit
PDS Power Delivery Services STA Sub-Transmission Asset
PECR Philippine Energy Contracting Round Su-Ma Sucat-Malaya
PEDC Panay Energy Development Corporation SU/TL Station Use and Transmission Loss
PEEP Philippine Energy Efficiency Project TAGP Trans-ASEAN Gas Pipeline
PEP Philippine Energy Plan TDP Transmission Development Plan
PHESI Philippine Hybrid Energy TFEC Total Final Energy Consumption
PIEEP Philippine Industrial Energy Efficiency Project TL Transmission Line
PGC Philippine Grid Code TOR Terms of Reference
PIA Philippine Information Agency TPES Total Primary Energy Supply
PIOU Private Investor-Owned Utilities TUP Technological University of the Philippines
TWG Technical Working Group CONVERSION TABLE
UC Universal Charge
UC-EC UCEnvironmental Charge
UCME Universal Charge For Missionary Electrification Length
UNDP United Nations Development Program 1 meter 39.3701 inches
UNFCCC United Nations Framework Convention on Climate Change
Area Product specific gravity ranges
USAID United States Agency for International Development 1 square meter 10.7639 square feet Specific Barrels
USGS United States Geological Services 1 square kilometer 0.386102 square mile Gravity per tone
WB World Bank 100 hectares Crude Oil 0.80-0.97 8.0-6.6
WESC Wind Energy Service Contract 1 hectare 10,000 square meters Aviation gasoline 0.70-0.78 9.1-8.2
WESM Wholesale Electricity Spot Market 2.47105 acres Motor gasoline 0.71-0.79 9.0-8.1
WOO World Oil Outlook Kerosene 0.78-0.84 8.2-7.1
WOPL White Oil Pipeline Volume Gas Oil 0.82-0.92 7.8-6.9
1 liter 0.0353147 cubic foot Diesel Oil 0.82-0.92 7.8-6.9
WTI West Texas Intermediate
0.264172 US gallon Lubricating Oil 0.85-0.95 7.5-6.7
0.001 cubic meter Fuel Oil 0.92-0.99 6.9-6.5
0.219969 Imperial gallon Asphaltic bitumen 1.00-1.10 6.4-5.8
1 US barrel 5.6146 cubic feet Converting into Barrels of Fuel Oil

0.158987 cubic meter Equivalent (BFOE)
42 US gallons
34.9726 Imperial gallons Energy Forms are converted into a common unit, BFOE, based on fuel oil
equivalent at 18,600 BTU/lb as follows:
Mass
1 kilogram 2.20462 pounds Electricity 600 kwh 1.0000
0.907185 tons Regular Gasoline 1 bbl 0.8470
0.892857 long tons Premium 1 bbl 0.8624
Kerosene 1 bbl 0.8798
LIST OF UNITS OF MEASUREMENTS 1 tonne (metric) 1,000 kilograms Diesel Oil 1 bbl 0.9328
2,204.62 pounds LPG 1 bbl 0.6384
BCF Billion Cubic Feet 0.984207 long tons Aviation Gas 1 bbl 0.8478
BMT Billion Metric Tons 1.10231 short tons
BSCF Billion Standard Cubic Feet Fuel Oil
1 long ton (Imperial) 2,240 pounds Pitch 1 bbl 1.0058
Cu.M. Cubic Meter PPC 1 bbl 1.0197
1.12 short tons
MB Thousand Barrels 1.101605 tons Coal (10,000 BTU/lb) 1 MT 3.3500
MMB Million Barrels Alcohol 1 bbl 0.5561
MMBFOE Million Barrels of Fuel Oil Equivalent Energy and Power Bagasse (50% moisture) 1 MT 1.4400
MBSD Thousand Barrels Per Stream Day 1 international table (IT) Coconut Oil 1 bbl 1.0000
MMMT Million Metric Tons 1 calorie 4.1868 joules
1 kilocalorie=(IT) 1.163 watt hours Approximate heat energy content of fuels
MMSCF Million Standard Cubic Feet
1 kilowatt hour 3,412.14 BTUs BTU/lb MJ/kg
MtCO2e Million Tonnes of Carbon Dioxide Equivalent 895.845 kilocalories (IT) Crude oil 18,300-19,500 42-45.2
MTOE Million Tonnes of Oil Equivalent 3.6 megajoules Gasoline 20500 47.7
TOE Tonnes of Oil Equivalent 1.34102 horse power hours Kerosene 19800 46.1
W Watt 1 metric horsepower 735.499 watts Benzole 18100 42.1
Ethanol 11600 27.0
Wh Watt-hour 542.476 foot pounds
force/second Gas oil 19200 44.7
0.98632 Imperial horsepower Fuel oil (bunker) 18300 42.6
1 kilowatt 737.562 foot pounds Coal (bituminous) 10200-14600 23-734.0
force/second LNG (natural gas) 22300 51.9
1.35962 metric horsepower
Crude oil 0.1344 TOE/bbl
BFOE 0.1444 TOE/bbl
Coal 0.488 TOE/MT
Electricity 0.086 TOE/MWh

2012-2030 - Phil Energy Plan

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Loreta G. Ayson, CESO I

Message from the Senator ii

I OVERVIEW AND EXECUTIVE SUMMARY 1

CARLOS JERICHO L. PETILLA

ENERGY REFORM AGENDA

vi PHILIPPINE ENERGY PLAN 2012-2030 1

2 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 3

4 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 5

6 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 7

8 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 9

10 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 11

processes became more energy efficient

12 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 13

14 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 15

negative growth in the sectors total energy In 9 2011,

26 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 27

Alternative Fuels Over 52.0 percentperiod,

38 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 39

40 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 41

42 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 43

44 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 45

46 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 47

48 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 49

Biomass 35.20 132.30 52.40 219.90

50 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 51

52 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 53

54 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 55

PHILIPPINE ENERGY PLAN 2012-2030 59

21 MW Bagasse Cogeneration System Talisay City, Negros Occidental 21.00 10.00

Optimize the mini-hydro-potential in Crystal Sugar Maramag, Bukidnon 21.00 7.00

58 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 59

60 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 61

Plans and Programs Measurable Sectoral Targets Subtotal (Committed) 67.50

62 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 63

66 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 67

68 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 69

70 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 71

72 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 73

74 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 75

76 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 77

78 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 79

PHILIPPINE ENERGY PLAN 2012-2030 83

82 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 83

84 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 85

86 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 87

88 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 89

90 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 91

peak demand forecasts for the major grids.

92 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 93

94 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 95

96 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 97

98 PHILIPPINE ENERGY PLAN 2012-2030 PHILIPPINE ENERGY PLAN 2012-2030 99

PHILIPPINE ENERGY PLAN 2012-2030 109

PARTICIPATION (PSP) in Oriental Mindoro, Occidental Mindoro,

Mainland Palawan, Marinduque, Tablas Island, Generation, Inc.

Other Areas NPP / QTP PSP Mode Status

Amended Guidelines for the Setting and Approval