Philippine Energy Plan 2012 - 2030

image of 2012-2030 PEP covering page

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

image of the 2012-2030 PEP Framework

 

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 on energy development, which are consistent with the country’s economic development plans.

The 2012-2030 PEP is crafted with due consideration and premium on the economic parameters sourced from the National Economic and Development Authority (NEDA), Development Budget Coordination Committee (DBCC), National Statistics Office (NSO) and international references on energy such as the World Energy Outlook of the International Energy Agency (IEA). For the medium-term, the 2012-2030 PEP is basically anchored on the policy framework set in place with the formulation of the Energy Reform Agenda (ERA). The ERA is consistent with national development directives such as the President’s Social Contract and the 2011-2016 Philippine Development Plan; and, responsive to long-term (beyond 2016) global policy frameworks on energy such as the UN Sustainable Energy for All Initiative and the APEC Green Growth Goals.

  • The President’s Social Contract

    The PEP is guided by the President’s Social Contract with the Filipinos. The plans and programs of PEP are responsive to the Social Contract’s pillars: a) Anticorruption/ transparent, accountable and participatory governance through our energy contracting rounds, Information, Education and Communication (IEC) and public consultation activities; b) Poverty reduction and empowerment of the poor through our programs on rural electrification, energy efficiency and conservation, and the provision of benefits to host communities; c) Rapid, inclusive and sustained economic growth through basically all our programs especially in improving the supply of energy products and services (both oil and electricity) nationwide to fuel the businesses and spur countryside development; d) Just and lasting peace and the rule of law starting with the efforts of the Department of Energy (DOE) in developing regional energy plans such as the Mindanao Energy Plan (MEP) to serve as the region’s energy roadmap; e) Integrity of the Environment and Climate Change Mitigation and Adaptation with our accelerated programs on energy efficiency, renewable energy and alternative fuels; and, f) Gender Development, which is integrated in relevant plans and programs.

  • Philippine Development Plan (PDP) 2011-2016

    The energy sector contributes to the PDP’s goals of promoting inclusive growth and poverty reduction. The PEP programs on ensuring energy supply security and providing energization to the countryside are integral components of the national infrastructure development agenda as contained in the PDP. These energy commitments will support the PDP’s targeted outcomes of enhancing the country’s competitiveness, reducing gaps in basic services, and improving environmental quality.

  • UN Sustainable Energy For All Initiative Development

    is the biggest contributor of greenhouse gas (GHG) emissions, accounting for about 49.0 percent of the world’s total, the PEP contains the policies, plans and programs that will significantly contribute to the country’s transition towards a low carbon economy – an economy that generates minimal output of GHG emissions into the biosphere.

    In December 2010, the United Nations General Assembly declared the year 2012 as the International Year of Sustainable Energy for all. This global initiative engages the support of all governments, the private sector and civil society in ensuring universal access to modern energy services, double the global rate of energy efficiency by reducing energy use (14.0 percent) in 2030, double the share of and/or increase the share of renewable energy in the global energy mix from the current share of 15.0 percent.

  • ASEAN Plan of Action for Energy Cooperation (APAEC) 2010-2015

    The PEP supports and contributes to the regional action plans and targets as espoused in APAEC 2010-2015. APAEC is the regional framework of energy cooperation highlighting the role of energy under the ASEAN Economic Community Blueprint 2015. It aims to enhance regional energy security and sustainability through aggressive implementation of action plans of the different program components – (1) ASEAN Power Grid; (2) Trans-ASEAN Gas Pipeline; (3) Coal and Clean Coal Technology; (4) Renewable Energy; (5) Energy Efficiency and Conservation; (6) Regional Energy Policy and Planning; and, (7) Civilian Nuclear Energy.

    Among the regional targets set in APAEC to be achieved in 2015 are: (a) 8.0 percent (aggregate) energy intensity reduction based on 2005 level; and (b) increase share of renewable energy resources to total installed power generating capacity of the region by 15.0 percent.

  • Asia-Pacific Economic Cooperation (APEC) Green Growth

    This Plan also adheres to the APEC Green Growth Goals which include the following: a) rationalization/phase out of inefficient fossil-fuel subsidies that encourage wasteful consumption; b) reduction of aggregate (regional) energy intensity by 25.0 percent in 2030 and 45.0 percent in 2035 (based on 2005 level) as aspirational goal; c) promote energy efficiency; and, d) incorporate low-emissions development strategies to economic development plans, among others

Click to view/download PDF file of the 2012-2030 Philippine Energy Plan

Philippine Energy Plan 2007 - 2014 (Update)

Fuelling Philippine Development thorugh Greater Access to Energy

I. Overview

The 2007 Philippine Energy Plan (PEP) Update is an affirmation of the state’s commitment to pursue the energy independence agenda under the Government’s Five-Point Reform Package. The energy sector’s agenda focuses on attaining a sustainable 60.0 percent energy self-sufficiency beyond 2010 and promoting a globally competitive energy sector. The first objective is anchored on the effective implementation of the following goals: (a) accelerating the exploration; development and utilization of indigenous energy resources; (b) intensifying renewable energy resource development; (c) increasing the use of alternative fuels; and, (d) enhancing energy efficiency and conservation. On the other hand, the continuing reforms in the power sector as well as the downstream oil and gas industries will pave the way in realizing a globally competitive Philippine energy sector.

Those energy goals and the corresponding strategies support the Medium-Term Philippine Development Plan (2005-2010) and the Medium-Term Public Investment Program. The PEP is also consistent with international agreements such as the 2002 Johannesburg Summit and the 2000 UN Millennium Development Goals, specifically in addressing poverty, and ensuring environmental sustainability.

The Update takes stock of the energy sector’s accomplishments in 2006 vis-à-vis the targets set in the 2006 PEP Update as Reference Plan. It also evaluates the extent to which the sector has responded to the challenges that have hindered the effective implementation of the plans and programs as identified in the Reference Plan. On the bases of these actual assessments, adjustments in targets and desired timelines were made in the Plan Framework. Indigenous fossil fuels and renewable energy were discussed based on geographical clustering under the Super Regions to highlight each cluster-region’s energy resources potentials. Likewise, the current update takes into consideration the impact of recent energy developments, i.e., the landmark passage in January 2007 of Republic Act (R.A.) 9367 or the “Biofuels Act of 2006,” renewed interest in the upstream development sector through the Philippine Energy Contracting Round (PECR), commitments to regional frameworks such as the ASEAN Plan of Action for Energy Cooperation (2004-2009) and the ASEAN initiative to move forward the harmonization of biofuel standards.

Over the planning horizon, the Update’s overall energy and power demand forecasts of annual growth rates are 3.3 percent and 5.2 percent, respectively. Essentially, it will also be guided by the same policy directions, planning horizon, sets of assumptions and sectoral plans and programs with due consideration to gender sensitive approaches. Some modifications, however, will include the amount of oil displacement resulting from the mandatory biofuels blend starting in May 2007 for biodiesel and two years after for bioethanol. In the power sector, the list of indicative and committed projects has been revised. The line-up of transmission projects has also been updated consistent with the rulings of the Energy Regulatory Commission (ERC).

The highlights of the sector’s performance are as follows:

The country posted an energy self-sufficiency level of 55.4 percent in 2006. Among renewable energy resources, geothermal contributed the biggest share of indigenous energy of about 9.0 million tones of oil equivalent (MTOE) or 23.2 percent of the total primary energy mix, which is a slight improvement over its 2005 share of 21.6 percent. This is due to an increase of 5.7 percent in geothermal production. The share of imported fuels such as oil gradually declined in view of reduced consumption of oil in both power and non-power applications.

  • Towards attaining the 60.0 percent primary energy self-sufficiency level by 2010, the Department of Energy (DOE) continued to promote intensive upstream exploration and development through the PECR. As of end-2006, there were 28 oil and gas service contracts (SCs) currently operating. Twenty-two of these SCs were granted during the period of 2004-2006. There are also 38 existing Coal Operating Contracts (COCs).
  • The promulgation of the Biofuels Act of 2006 is expected to reduce the country’s dependence on imported fuels over the long-term by mandating the graduated use of biodiesel and bioethanol nationwide. Subsequently, in May 2007, the law’s Implementing Rules and Regulations (IRR) was approved following a series of nationwide public consultations. Meanwhile, investments came in the form of infrastructure facilities to support the widespread dissemination of biofuels such as the launching of the Biofuels Center in Quezon City in February 2006.
  • In power generation, the country’s self-sufficiency level rose to 66.0 percent in 2006 from the 65.0 percent level in 2005. Natural gas provided the largest contribution of 16,366 gigawatthours (GWh) or 29.0 percent of the total power generation while coal accounted for 27.0 percent. The 2.9 percent decrease on the use of natural gas in 2006 level was due to the 25-day scheduled maintenance of the Malampaya Gas-to- Power project while the slight increase in power generation from coal-fired power plant came from the commercial operation of the 210-megawatt (MW) Mindanao coal-fired power plant.
  • The DOE continued to ensure the reliability of energy supply through the installation of new power plants and uprating of existing power projects. In the last months of 2006, the commissioning of the 210-MW Mindanao coal power plant located in Villanueva, Misamis Oriental brought significant improvement in the power supply in the grid. To further boost this effort is the ongoing capacity uprating of Units 1 and 2 of Agus 6 Hydroelectric Power Plants. In February 2007, the Philippine National Oil Company-Energy Development Corporation (PNOC-EDC) inaugurated the 49.4- MW Northern Negros Geothermal Power Plant located in Bago City, Negros Occidental, adding to the capacity of the Visayas Grid.
  • To counter the effects of intermittent increase in the price of oil to the country’s economy, the DOE remained vigilant in ensuring consumer protection and healthy competition among the industry players. As a safety net, the DOE issued and implemented for a six-month period (June to November 2006) Executive Order (E.O.) 527 “Temporarily Modifying the Rates of Import Duty on Crude Petroleum Oils and Refined Petroleum products Under Section 104 of the Tariff and Custom Code of 1978 as Amended.” Likewise, various oil players offered price discounts for diesel sold at the pump nationwide for the public transport sector.
  • For 2006, the energy conservation efforts of the government generated energy savings of about 0.88 MTOE with equivalent carbon dioxide (CO2) emission avoidance of 2.1 million metric tons (MMMT). This included savings accounted from the energy management activities conducted by DOE such as the spot check program of government agencies nationwide mandated by Administrative Order (A.O.) 126, the continuing energy standards and labeling program, and the conduct of energy audit of various commercial and industrial entities.
  • The Wholesale Electricity Spot Market (WESM) started commercial operation in Luzon in June 2006 signaling an important phase in promoting open access in accordance with the Electric Power Industry Reform Act (EPIRA) of 2001.
  • The government’s continuing efforts to privatize the National Power Corporation’s (NPC) generation and transmission assets made significant headway with the successful bid-out of the 112-MW Pantabangan-Masiway Hydroelectric Plant in Nueva Ecija in September 2006, the 360-MW Magat Hydroelectric Plant in Ramon Isabela in December and the 600-MW Masinloc coal-fired plant in Zambales in July 2007. This resulted in a 24.8 percent privatization level.
  • The DOE has energized over 95.5 percent barangay of the country during the third quarter of 2007. Based on 2005 Census, only 1,894 barangays remain to be energized to achieve 100 percent barangay electrification target as committed in the ten-point legacy agenda of the Arroyo Administration.
  • To provide timely, reliable and accurate energy data and information for the Department and its stakeholders, the Energy Information Management Program (EIMP) had been implemented under the theme “One Database, One System, One DOE.” The EIMP entails four Cs strategy, namely: Centralization, Computerization, Connectivity and Collaboration.

Click to view/download PDF file of Philippine Energy Plan 2007-2014 Update