Philippine Energy Plan (PEP) 2012-2030 | ESCAP Policy Documents Managment

Meta Data

Draft:

Revision of previous policy?:

Yes

Effective Start Year:

2012

Effective End Year:

2030

Scope:

National

Document Type:

Plan/Strategy

Economic Sector:

Energy, Power, Industry, Transport, Building, Multi-Sector, Other

Energy Types:

All, Coal, Oil, Power, Gas, Renewable, Bioenergy, Geothermal, Hydropower, Solar, Wind, Other

Issued by:

Department of Energy (DOE)

Source:

Department of Energy

File:

Philippine Energy Plan (PEP) 2012-2030

Overall Summary:

Guided by the overall vision of providing “Energy Access for More,” the Philippine Energy Plan (PEP) 2012-2030 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.

Access

Energy access priorities:

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.

Energy access action plan:

The government is bent on exploring the country’s coal resources to likewise temper impacts of soaring oil prices. [...]

Energy access targets:

It is envisioned that 90.0 percent household electrification by 2017 and 100.0 percent sitio electrification by 2015 will be achieved. [...] Year 2011 - 20,539,028 Total Households, 14,414,456 served households, 6,124,572 unserved households, 70.2% household electrification; Year 2012 - 20,912,838 Total Households, 918,177 new households, 15,332,633 served households, 5,580,205 unserved households, 73.3% household electrification; Year 2013 - 21,293,452 Total Households, 974,863 new households, 16,307,496 served households, 4,985,956 unserved households, 76.6% household electrification; Year 2014 - 21,680,992 Total Households, 1,006,874 new households, 17,314,370 served households, 4,366,622 unserved households, 79.9% household electrification; Year 2015 - 22,075,586 Total Households, 1,054,958 new households, 18,369,328 served households, 3,706,258 unserved households, 83.2% household electrification; Year 2016 - 22,437,626 Total Households, 1,071,038 new households, 19,440,366 served households, 2,997,260 unserved households, 86.6% household electrification; Year 2017 - 22,805,603 Total Households, 1,073,671 new households, 20,514,037 served households, 2,291,566 unserved households, 90.0% household electrification.

Efficiency

EE targets:

Low Carbon Scenario 10.0 percent energy savings on the total energy demand of all economic sectors by the end of the planning period.

Renewable Energy

RE priorities:

The concern on energy supply security, volatility of oil prices, as well as the adverse effects of energy uses to the environment are primary reasons why there is a need to strengthen the development and utilization of RE sources. [...]---Intensify efforts to develop untapped hydro resource potential;---Optimize the mini-hydro-potential in validated sites;---Promote the use and commercialization of ocean energy projects, e.g. OTEC, wave, marine and tidal; [...].

RE targets:

Under the Business-As-Usual Scenario, the contribution from RE will grow at an annual average rate of 0.8 percent (and with average share of 32.6 percent)---[...]---For the Low Carbon Scenario, RE will grow at an annual average of 3.2 percent and will contribute an average share of 37.0 percent to the total energy supply---[...]--- By 2030, total geothermal installed capacity will reach 1,808.9 MW, which could generate 14,021 GWh of electricity. This will correspond to an equivalent fuel oil displacement of 3.4 MTOE by the end of the planning period.---The overall thrust for hydro is to develop small and large-scale hydropower capacities and explore further on ocean technology. During the planning period, the target is to achieve an additional 4,961 MW of installed capacity from hydropower. This is equivalent to 142.0 percent increase from the 2011 installed capacity. The target installed capacity will be coming from 26.1 MW committed and 182 MW indicative projects, and 4,752.9 MW potential resources.---[...] Until 2015, it is targeted that about 167.5 MW from biomass committed and indicative projects will become commercially operational and are expected to export power to the grid. [...]---[P]otential biomass projects are expected to provide an aggregate capacity of about 52.4 MW within the planning period [...].---An indicative addition of 35 MW is expected from solar power by 2015.---[...] potential ocean energy projects with total estimated capacity of 70.5 MW.

RE action plans:

To further realize the target of increasing the contribution of renewable energy-based capacity to power generation, 26 geothermal projects with total estimated capacity of 1,165 MW (Table 12) will be made available for potential investments within the planning period. A total of 680 MW is envisioned to come from Luzon, 195 MW from Visayas, and 290 MW from Mindanao.---To sustain the target growth of biomass in the energy mix, it is incumbent upon the government to pursue continuing resource development coupled with the conduct of research and development. Priority programs will address gaps that hinder the spur of biomass power development and utilization.

RE feed-in tariffs:

Biomass committed projects with estimated installed capacity of 35.2 MW are expected within short- to medium-term subject to FiT eligibility. [...]

RE reductions in taxes:

Ensure effective and timely implementation of fiscal and non-fiscal incentives provided under the RE Act;

Cooperation in RE:

Establish cooperation with local and international institutions for the development and commercialization of ocean technology.

Environment

Pollution control action plans:

Need to establish national environmental standards for petroleum operations that will be compliant to international benchmarks.---In maximizing the potential domestic coal reserves, the DOE will strongly collaborate with concerned stakeholders to address social acceptability issues on coal use. These include health and environmental effects that may result during coal mining, preparation, combustion, waste storage and transport. The DOE will ensure that said related processes strictly comply with environmental standards.

Land use change for energy production purposes:

In potential areas for petroleum exploration and development, the DOE will closely coordinate with concerned government agencies and undertake consultations with the local communities to ensure public support and acceptability of the projects.---To address environmental and social issues arising from the implementation of energy projects, closer coordination efforts with concerned agencies [...] and host communities will have to be strengthened. IEC campaign also needs to be intensified to increase level of awareness of stakeholders on the nature of the projects.

Cooperation in env.:

The DOE will work with Department of Environment and Natural Resources (DENR)- Environmental Management Bureau (EMB) to establish the national environmental standards for petroleum exploration that will be consistent with internationally-accepted standards.---To address environmental and social issues arising from the implementation of energy projects, closer coordination efforts with concerned agencies [...] and host communities will have to be strengthened. IEC campaign also needs to be intensified to increase level of awareness of stakeholders on the nature of the projects.

Pricing

Renewable energy subsidies:

Ensure effective and timely implementation of fiscal and non-fiscal incentives provided under the RE Act;

Energy taxation:

Harmonize national and local taxes imposed on energy development activities.

Energy pricing:

b) Achieve optimal energy pricing in electricity and oil;---In response to the optimal energy pricing pillar of the Energy Reform Agenda (ERA), the DOE will explore the development of a framework/ methodology in the near term for the pricing of indigenous energy like natural gas whose price is linked with international price of oil.---The government is bent on exploring the country’s coal resources to likewise temper impacts of soaring oil prices. [...]---Need to develop a framework/methodology for the pricing of indigenous energy. The upstream coal sector recognizes the need to establish a benchmark for local coal pricing.---[...] Similar with natural gas resource, a framework/methodology for pricing of local coal resource will be developed to maximize the benefits that will accrue to government in terms of collecting appropriate government royalties, determination of the true cost of production, and the formulation of realistic price projections. ---With the same issue on high energy price of indigenous energy resources, the development of a framework/methodology for the pricing of geothermal resource is also seen necessary. [...]

Energy Supply and Infrastructure

Energy supply priorities:

(a) Ensure energy security through the development of indigenous energy such as renewable energy and hydrocarbon fuels (oil, gas, and coal);---Measurable Sectoral Targets: The heightened promotion of these indigenous resources through the PECR is expected to yield a total of 66 SCs to be awarded during the planning horizon[...]. The DOE is also gearing up for the drilling of a total of 95 wells until 2030 or a target of up to 25 wells every five years starting 2016. Production targets for the oil and gas fields are expected to yield about 78.0 MMB of oil, 3.3 TCF of gas and 70.8 MMB of condensate. Malampaya is still expected to produce the biggest contribution with 23.1 MMB of oil, 2.0 TCF of gas and 62.6 MMB of condensate. Additional gas production from Sampaguita gas field is anticipated to generate a total of 1.2 TCF starting 2023. [...]---Amend Presidential Decree (P.D.) 87 to provide additional incentives for exploration activities in underexplored basins. P.D. 87 is the legal framework governing petroleum exploration in the country.---[T]he government targets a 100.0 percent increase in indigenous coal production for the planning horizon. In maximizing the potential domestic coal reserves, the DOE will strongly collaborate with concerned stakeholders to address social acceptability issues on coal use. These include health and environmental effects that may result during coal mining, preparation, combustion, waste storage and transport.---As in other indigenous energy resources, the government will promote the entry of private sector participation in the coal industry to attain the 100 percent target increase in indigenous coal production, and consequently reduce coal importation.---To further realize the target of increasing the contribution of renewable energy-based capacity to power generation, 26 geothermal projects with total estimated capacity of 1,165 MW (Table 12) will be made available for potential investments within the planning period. A total of 680 MW is envisioned to come from Luzon, 195 MW from Visayas, and 290 MW from Mindanao. On the other hand, starting 2012, around 172 wells are to be drilled for the next 20 years [...]By 2030, total geothermal installed capacity will reach 1,808.9 MW, which could generate 14,021 GWh of electricity. This will correspond to an equivalent fuel oil displacement of 3.4 MTOE by the end of the planning period.---[...] DOE shall continue to actively promote the use of geothermal resources through the OCSP. Continued exploration in identified prospective areas – both underexplored and unexplored – specifically in the area of Mt. Balatukan in Balingasag, Misamis Occidental will be aggressively pursued for the next 20 years. [...] service contractors in the areas of Rangas and Tanawon in Bacman as well as Nasulo and Dauin in Palinpinon are set to undertake exploration of geothermal reservoir to increase the potential capacity of these steam fields.---[...]To sustain the target growth of biomass in the energy mix, it is incumbent upon the government to pursue continuing resource development coupled with the conduct of research and development. [...]---Continue the conduct of wind resource assessment.---The DOE shall update the oil supply contingency plan to incorporate some related emergency preparedness mechanisms adopted by the IEA member countries in the context of Philippine situation. [...] The DOE will take the lead in developing policies for the establishment of oil stockpiling program to protect the country from the economic impacts of oil supply disruptions and sharp increases in oil prices.[...] Expand / Upgrade Oil Refineries [...]

Infrastructure development priorities:

Need to upgrade existing transmission infrastructure to support additional grid connection of biomass power.---Ocean power: Inclusion of infrastructure support (transmission line and submarine cable) in TDP;---[...] Provide Additional Oil Distribution infrastructure [...].

Regional integration priorities:

Continue international undertakings such as participation in the ASEAN Forum on Coal (AFOC) to advance domestic initiatives on the promotion of clean coal technology (CCT),[...] The development of ASEAN regional policy on coal trade would likewise facilitate supply arrangements among member states.

Investment

Independent power producers:

To sustain the target growth of biomass in the energy mix, [...] strong partnership and collaboration with the private sector would remain an essential component in the government programs. It is expected that Biomass Renewable Energy Operating Contracts (BREOCs) and Certificates of Registrations issued by the DOE on various biomass projects would continue to expand the contribution of biomass to the country’s primary energy mix both for power and non-power applications.

Project permitting:

Under the PECR, the awarding of exploration Service Contracts will be done in a transparent and timely manner.---Also part of the plan for the sector is the institutionalization of a “one-stop shop” that will not only expedite the acquisition of permits, certificates, endorsement, etc., but likewise assure the smooth flow of work to meet the submitted timelines of the contractor. [...]

Investment climate development:

Encourage international service companies to acquire geophysical/seismic data of the country’s underexplored sedimentary basins through the conduct of multi-client surveys. Such vital information and data can serve as reference to guide the international petroleum exploration companies in their investment decisions; [...].---As in other indigenous energy resources, the government will promote the entry of private sector participation in the coal industry to attain the 100 percent target increase in indigenous coal production, and consequently reduce coal importation.---Need for standards and best practices sharing for sustainable biomass supply to further encourage investments in biomass power.---OTEC: Encourage private sector participation through effective implementation of the RE Law, specifically on the benefits of the proponents;

Public Private Partnerships:

Governance

Energy management principles:

With the privatization of the PNOC- EDC (now known as EDC), the private sector will take the lead in the pursuit of developing new geothermal areas, as well as expansion and optimization of existing steam fields.

National policy structure:

Formulate and implement, in the immediate term, policy reforms on the following: (a) Revised Coal Mine Safety and Regulation; (b) Revised Small-scale Coal Mining Guidelines; (c) Guidelines on coal trader’s accreditation and coal transport permit; and (d) CBM.---Need to harmonize the DOE related programs with agro-forestry policies for an integrated use of biomass for other applications.

Coordination with regional energy associations:

Continue international undertakings such as participation in the ASEAN Forum on Coal (AFOC) to advance domestic initiatives on the promotion of clean coal technology (CCT), enhancement of low quality coal, building up of coal image to promote social acceptability, and determining the applicability of other potential technologies like carbon capture and storage.

Statistics collection and management:

Upgrade the quality of information and data relative to petroleum exploration such as geological, geophysical (seismic) and engineering data;

Public database availability:

Update the national wind database.---Conduct of detailed resource assessment and establishment of national database for solar resource data;

Technology

Clean energy technology priorities:

RE: [...] Provide technology/technical support to boost local manufacturing capability; Establish standards and best practices and technology mentoring; [...] Develop and install demonstration facility of sea water pump storage.---Continuing conduct of research and development in biomass technology.

Low-emission and cleaner coal technology:

Pursue R&D activities to improve existing technologies for pollution control in the use of coal, particularly in coal-fired power plants. As a corollary effort, the DOE will institutionalize the application of clean coal technologies such as fluidized bed combustion, flue gas desulfurization and electrostatic precipitation to address concerns on marketability and environmental issues. Promote adoption of local coal quality upgrading technologies such as coal washing/preparation and blending. As a parallel initiative, the DOE will formulate and implement a policy on the use of indigenous low-rank coal including a corresponding program to enhance its quality and compliance with environmental standards. • Undertake studies on environment-friendly alternative uses of coal such as coal liquefaction, coal gasification and CBM technology. • With the improvement of local coal quality and adoption of clean coal technologies, the DOE will continue to work on the development of a sustainable market for the industry to make local coal competitive with imported coal from Indonesia, China, Vietnam and other coal exporting countries.

R&D renewable energy:

Establish and operate hydro research center; [...]---Wind power: Conduct R&D on smart grid technology;---Conduct continuing RD&D for viable solar energy systems to be commercially competitive with conventional energy system;---[...] Conduct RD&D activities for OTEC;

Technology collaboration with other member States: