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The 2006 Plan Update essentially presents a comprehensive assessment
of the energy sector’s performance in the first year of implementation
of the Philippine Energy Plan (PEP) 2005-2014, which is the Reference
Plan. It aims to strengthen the programs, refocus the activities
and revisit the targets as may be expedient, to realize the two-fold
energy sector goals: (1) attaining a sustainable 60.0 percent energy
self-sufficiency level by 2010 and beyond; and (2) pursuing the
effective implementation of reforms in the power sector. It also
lays out the current development challenges that need to be hurdled
in each energy sub-sector, together with the corresponding action
plan to help actualize the goals.
An important component of the 2006 Update is the Integrated Investment
Portfolio, which details the various capital investment requirements
needed in the different energy sub-sectors, as well as other business
opportunities. The chapter also presents an inventory of the various
fiscal and non-fiscal incentives for prospective energy investors.
Another feature of this Update is the energy information management
program of the Department of Energy (DOE), which ensures the delivery
of timely, consistent, reliable and accurate energy data to its
various stakeholders and supports the data requirements of the PEP.
Likewise, an indicative agenda covering the time horizon 2015-2024
is also presented for each sector to promote the long term sustainability
of targets set out in this Plan Update. The agenda highlights the
promotion of alternative energy resource options, emerging clean
energy technologies, innovations in energy exploration and development
technology, and demand-side management (DSM).
Starting with this 2006 Update, the DOE will use ton-of-oil-equivalent
(TOE) as unit of measurement in the Philippine Energy Balance Table
(EBT) in conformance with internationally accepted standards. The
DOE has been using barrel-of-fuel-oil equivalent (BFOE) since the
early 1970s, and the adjustment has to be made now that most economies
have adopted TOE as energy accounting unit. Member economies of
regional groupings such as the Association of Southeast Asian Nations
(ASEAN), Asia-Pacific Economic Cooperation (APEC) and the International
Energy Agency (IEA) now make use of TOE for their reportorial requirements.
In addition to this, there is also a change in one of the statistical
standards used in energy accounting, particularly the thermal efficiency
of primary electricity from geothermal sources. The DOE is now adopting
the
average of 10.0 percent thermal efficiency for geothermal energy
in accordance with the recommendation of the IEA, which is consistent
with the Philippine experience. Also incorporated in this Update
are the results of the 2004 Household Energy Consumption Survey
(HECS).
These changes in energy accounting affect the geothermal and biomass
data in the country’s energy mix. On the average, the change
in the efficiency of geothermal energy improved its contribution
to the energy mix by 15.0 percent, while the decline in the demand
for biomass corresponds to a drop in its share in the mix by an
average of 14.0 percent. In spite of the changes in the share of
these fuels, the self-sufficiency level remains at almost the same
level as that of the Reference Plan since the decline in biomass
share was offset by the increase in geothermal share.
This Update also includes the regional energy profiles (REPs) for
16 administrative regions of the country, which may be used to support
the preparation or updating of their respective Medium-Term Regional
Development Plans (MTRDPs). The REPs provide comprehensive information
on the regions’ existing and potential energy resources, an
inventory of committed and indicative projects, downstream facilities
and electrification projects that will eventually contribute to
the overall economic stability and growth of the regions.
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