Energy Generation in the Philippines , Phil. Energy Program (PEP 2012 - 2030)

1. ENERGY GENERATION
Alex s Regado
Pamantasan ng Lunsod ng Maynila (PLM)
GRADUATE SCHOOL OF MANAGEMENT

2. PRESENTATION OUTLINE
1. Introduction
 Department of Energy (DOE)
• Mandate/Mission/Vision
• Performance Pledge
• Core Values
2. Strategic Plan
• Goal
• Strategies
• Time Table
• Budget
• Agencies
• Activities

3. PRESENTATION OUTLINE
3. Tactical Plan
4. Operational Plan
5. Critiques
6. Recommendation
7. Evaluation

4. Energy Generation -
Sources of Energy
1. Fossil Fuel
is the segment of the electricity industry,
which produces power from sources like
coal, diesel, natural gas, hydro and
geothermal.
 Coal –sedimentary rock, cheapest fuel options
 Oil & Gas – petroleum, Nido Oilfield
 Natural Gas – Malampaya (clean fuel) 40% of Luzon requirement
2. Renewable Energy
 Hydropower – more than 10% (2,518 MW)
 Geothermal – 22% (2nd largest in the world next to USA )
 Biomass – bagasse, rice/coconut husks,
 Solar – dryers, heaters and electricity
 Wind - over 10,000 sq. kilometers of windy land areas &
Ocean – 1,000 sq. km…a potential 170,000 MW

5. LIST OF POWERPLANTS IN THE PHILIPPINES
Hydro: (17 Large/14 Small/Mini)
1. Agus 1 –Marawi
2. Atiya – Benguet
3. Agus 6 – Iligan City
4. Ampohaw – Benguet
5. Angat – Bulacan+++
Geothermal: (12)
1. Makiling - Banahaw GPP
2. Tiwi GPP
Windpower: (2)
1. Bangui Wind Farm – Ilocos
Norte
2. Phil. WP - Mindoro
Coal: (12++)
1. Sual – Pangasinan
2. Quezon PP
Diesel : (2)
Natural Gas : (4)
1. Ilijan CCPP- Batangas (4)
2. Sta Rita
3. San Lorenzo
4. San Miguel (2016)
Nuclear : (1) Bataan Nuclear Power
Plant, Morong, Bataan, Completed
but never fueled

6. SOURCES OF ELECTRICAL POWER
GEOTHERMAL
WIND
SOLAR
COAL POWERPLANT
HYDROPLANT DIESEL GENSET

7.  BNPP Construction Cost US 2.3 B Dollars
 621 MW Capacity
 US 1.0 B Dollars to rehabilitate (2010)
 P40 Million/year for maintenance
 Reimbursed NAPOCOR P 4.2 B (2011)
 31 countries 437 nuclear power plant
units (IAEA as of 28 August 2014)

8. DEPARTMENT OF ENERGY (DOE)
- is the executive department of
the Philippine Government responsible for
preparing, integrating, coordinating,
supervising and controlling all plans,
programs, projects and activities of the
Government relative to energy exploration,
development, utilization, distribution and
conservation.

9. TIMELINES
 P.D. No. 1206 -Creation of Ministry of
Energy (Marcos)
Nat’l Power Corporation
Phil. Nat’l Oil Company
 Office of Energy Affairs- headed by Atty.
Wenceslao Dela Paz (Cory Aquino)
Bureau of Energy Development and
Bureau of Energy Utilization
 Republic Act No. 7638 otherwise known as
the Department of Energy Act of 1992 (Ramos)

10. RA No. 9136 or the "Electric Power
Industry Reform Act of 2001",
 RA No. 9367 or "Biofuels Act of 2006", and
 RA No. 9513 or "Renewable Energy Act of
2008.

11. SENATE
S.No. 2352‘ 14 AUG 12 P2 :50
Introduced by Senator Ralph G. Recto
AN ACT PROMOTING THE DEVELOPMENT AND UTILIZATION OF
RENEWABLE ENERGY IN ALL GOVERNMENT BUILDINGS AND
OFFICES, PROVIDING FUNDS THEREFOR, AND FOR OTHER
PURPOSES
Explanatory Note
Energy security is a critical factor in achieving our economic growth targets
in the short-,medium- and long-term set at 6.5% this year, at 7.5% in 2015-
16 and at 8.4% in 2017-20. At the same time, our government is hard-pressed
to fulfill its commitments to de-carbonize the energy industry for
Scenario 450 achieve 60% energy independence and pursue higher
electrification rates2 , even as the population continuous to grow at an
average of2.2% in 2010-2020 and 1.6% in 2020-2030.

12. DOE MANDATE/MISSION/VISION
Mandate
The Department is mandated by RA 7638
(Department of Energy Act of 1992) to prepare,
integrate, coordinate, supervise and control all
plans, programs, projects and activities of the
Government relative to energy exploration,
development, utilization, distribution and
conservation.

13. Mission
We at the Department of Energy, in partnership with our
stakeholders, shall improve the quality of life of the
Filipino by formulating and implementing policies and
programs to ensure sustainable, stable, secure, sufficient,
and accessible energy.
In pursuit of this mission, we commit to render efficient
service with utmost integrity and professionalism.
Vision
The ideal Energy State towards 2030:
Ensuring the best energy choices for a better quality of
life.

14. PERFORMANCE PLEDGE
We, at the Department of Energy, commit
to :
S E R V E right the first time and every
time
thereafter
L I S T E N with utmost courtesy, respect
and
understanding
R E S P O N D promptly, efficiently, and
effectively

15. CORE VALUES
In support of the DOE PERFORMANCE PLEDGE,
we adhere to these CORE VALUES:
Commitment to Service Basta Enerhiya, Sagot
Kita
Respect for People Kapwa at sarili, Igalang
sa
bawat sandali
Integrity Sa publiko, Serbisyong
Marangal at totoo
Teamwork Gawain ay kayang-kaya,
kung tayo ay sama-sama

16. Philippine Energy Plan 2012 - 2030
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 and
countryside development.
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)

18. GOAL
(PHILIPPINE ENERGY PLAN 2012 - 2030)
The DOEs’ proposal consisting of these
following three cornerstones that will have an
important impact within the next 18 years on
the country’s energy future:
1. Ensure Energy Security
2. Achieve Optimal Energy Price
3. Develop Sustainable Energy System
Mechanisms

19. STRATEGIES
“ENERGY REPORM AGENDA (ERA)”
 Ensure Energy
Security
 Expand use of RE
 Accelerate
exploration of
petroleum and oil
 Expand Energy
Access
 Promote Low-
Carbon Future
 Make energy
efficiency a way of
life for Filipinos
 Promote use of
clean alternative
fuels and
technologies
 Climate proof
the energy
sector
 Develop
Regional Energy
Plan
 Promote
Investment in
the Energy
Sector
 Identify and
implement
energy sector
reforms

20. TIME TABLE
PEP 2012 - 2030
Total Primary Energy, by Fuel

21. BUDGET
P 3.174 Trillion in investments for power
generation
projects in order to make it energy sufficient by
2030
---- DOE Sec. Carlos Jericho Petilla
Project Description Cost
1. Downstream Natural Gas Supply P 1.212 Trillion
2. Alternative Fuels P 959.7 Billion
3. Renewable Energy Projects P 556.7 Billion
4. Power Generation Project P 397.1 Billion
5. Upstream Resource Devt. P 48 Billion

22. AGENCIES INVOLVE
DOE – Department of Energy
 NAPOCOR
 NEA
NEDA – National Economic Development Agency
DBM – Department of Budget and Management
DoF – Department of Finance
ERC – Energy Regulatory Commission
DTI – Department of Trade and Industry
SEC – Securities and Exchange Commission
CCC – Climate Change Commission,
DILG, Senate,Congress

23. ACTIVITIES
Reforms in the Power Sector
 Retail Competition and Open Access
(RCOA)
 Adapt Smart Grid Technologies
 Grid Interconnection
 Electricity Spot Market
 RE Market
 Accelerated Rural Electrification

24. ACTIVITIES
Rural Electrification
 Achieved 90% household electrification
by 2017 and 100% sitio electrification
by 2015.
 Formulate Household Electrification
Development Plan
 Pursue development and
implementation of innovative service
delivery mechanisms to increase
household connections

25. Indigenous Energy
Development
 Continue the
conduct of
Contracting Rounds
to offer prospective
areas
 Promote use,
development and
localization of
appropriate and
clean technologies
 Coal liquifaction,
coal gasification
and CBM
 Develop a framework
for pricing of local
resources
 Continue international
cooperation on energy
resources e.g.
establishment of
ASEAN Coal Supply
Agreement
 Encourage further
investment on
resource development
 Established one-stop
shop for
ACTIVITIES

26. ACTIVITIES
Renewable Energy
 Promote the National Renewable Energy
Program (Triple installed capacity by 2030)
 Implement the RE law policy
mechanisms
 Continuous assessment of RE
resources
 Evaluate new and emerging
technologies
 Develop/Tap local capacity and
expertise

27. TACTICAL PLAN
 Diversify energy sources/fuels
 Accelerate rural electrification in coordination
with other agencies
 Improve system efficiency
 Promote decentralized energy facilities
 Monitor and review sector pricing policies to
ensure transparency

28. OPERATIONAL PLAN
 Intensify the development, exploration and use
of indigenous energy
 Promote investments and livelihood activities in
energy projects
 Promote energy efficiency and conservation
program
 Pursue joint ventures with other countries
 Implementation of Demand Side Management
Programs and other energy conservation
measures to reduce the country’s demand for
supply of electricity.
 Interruptible Load Program (ILP).-

29. CRITIQUE/REACTION
High electricity rates and lack of adequate power
supply remained the biggest stumbling blocks to
attracting more foreign investments in the country.
We are much dependent on oil to run the energy
sectors such as in generation and transportation,
that government must intensify its program by using
alternative source of energy like solar and wind
energy which has vast potential for development.

30. RECOMMENDATION
1. Committed power - plants should be
commissioned as schedule to prevent the impact
of widespread black outs in the nearest possible
time.
2. Renewable energy must be harness particularly
solar and wind energy to prevent pollution of the
environment particularly in support of the Climate
Change program.
3. A Secretary of DOE must be a technical person
that can rightfully know the ropes in power
generation forecasting
4. Immediate passage of Senate Bill 2352 introduced
by Sen. Ralph G. Recto on the “Development of
RE”

31. 6. Effective implementation of the following goals:
(a) accelerating the exploration; development and
utilization of indigenous energy resources;
(a)intensifying renewable energy resource
development;
(b)increasing the use of alternative fuels; and,
(c) enhancing energy efficiency and conservation.
7. Operation of the mothball Bataan Nuclear Plant.

32. EVALUATION MODEL, HOW?
INVESTMENT- DRIVEN STAGE
Access to energy has become essential to the functioning of the modern
economies. The scarcity of supply, inequitable distribution, rising costs of
fossil fuel such as oil and gas, as well as the adverse environmental impacts
energy development create a need to diversify to more sustainable and
secure energy sources in the foreseeable future. As a determinant of economic
performance and political stability, energy security strikes as a strategic
intervention to channel our efforts in providing “Energy Access for More”.
The Energy Plan for the period 2012-2030 mentions three broad policy
thrusts based on the concept of enabling better energy choices for a better
quality of life.

33. 1. Department of Energy (DOE) PEP 2012 – 2030
2. DOE Energy Reform Agenda
3. DBM –GAA 2014
4. Assorted news clippings
5. Philippine Energy Study Report, Approtech Asia,
August 2005.
6. Philippine Country Report, Power Situation and
Current Status on R&D, Miguel T. Escoto Jr.
7. DOE Accomplishment Report 2008 -2012
8. Video:
https://www.youtube.com/watch?v=VoZJX8lQcns