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ENERGY GENERATION 
Alex s Regado 
Pamantasan ng Lunsod ng Maynila (PLM) 
GRADUATE SCHOOL OF MANAGEMENT
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
PRESENTATION OUTLINE 
3. Tactical Plan 
4. Operational Plan 
5. Critiques 
6. Recommendation 
7. Evaluation
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
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
SOURCES OF ELECTRICAL POWER 
GEOTHERMAL 
WIND 
SOLAR 
COAL POWERPLANT 
HYDROPLANT DIESEL GENSET
 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)
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.
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)
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.
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.
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.
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.
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
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
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)
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
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
TIME TABLE 
PEP 2012 - 2030 
Total Primary Energy, by Fuel
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
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
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
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
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
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
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
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).-
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.
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”
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.
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.
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

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Energy generation report. final 10 oct 14pptx...Philippine Energy Plan 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)
  • 17.
  • 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

Editor's Notes

  1. Beginning 2003 the RE is foreseen to provide up to 40% of the country’s primary energy requirements over the ten year period at an annual rate of 2.4% in absolute term. Biomass, micro-hydro, solar and wind will remain to be the largest contributors to the total share of RE in the energy mix, with an average share of 27.5%. Meanwhile, hydro and geothermal will contribute the balance and continue to be a significant source of electric power.
  2. On the slide are the list of power plants in the Philippines by which hydro has the biggest share with more than 29 units. Hydro is the oldest methods of producing power, the most important and widely-used renewable source of energy. The advantage that no fuel is burned, water is provided by nature and has low operation & maintenance cost. However, it is very high in investment cost, it is hydrology dependent (precipitation) and will displace a lot of local population.
  3. Former Prest. Ferdinand E. Marcos in July 1973 announced the decision to build a Nuclear Plant in response to the 1973 Oil Crisis to solve the energy demand and dependence on imported oil. Construction began in 1976, stopped in 1979 and completed in 1984. President Cory Aquino ill-advised failure to put the nuclear project on stream led the nation to pay for the following: (1) the full cost of the powerplant , (2) all the over-pricing that political partisans were saying was the cost of project (3) all interest payments (4) all human capital invested and (5) all the downtime and lost productivity during the power outages in those years….How’s to blame???? If former Prest. Cory Aquino had put to use the nuclear power plant, there would not have been a power crisis. President Ramos in succeeding could have embarked on a higher phase of economic development for the nation. Japan has 48 nuclear plant and 2 under construction, Republic of Korea has 23 nuke plants and 5 under construction.
  4. The Department of Energy was created by then President Marcos as he issued Presidential Decree No. 1206 which created the Ministry of Energy .The Ministry and its two bureaus (Bureau of Energy Development and Bureau of Energy Utilization) remained intact but was downgraded into a mere Office of Energy Affairs--headed by Atty. Wenceslao Dela Paz and reporting to then Deputy Executive Secretary for Energy Catalino Macaraig, Jr. based in Malacanang--during the regime of President Corazon C. Aquino. During the regime of President Fidel V. Ramos, the Department was created due to Republic Act No. 7638 otherwise known as the Department of Energy Act of 1992.
  5. The Department was vested additional powers and functions under pertinent energy and power-related legislations, such as Republic Act (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.
  6. The PEP is the blueprint for “all players in the energy sector for the next ten years.” The agenda focuses on achieving energy independence and enacting power market reforms. The energy independence portion of the agenda involves increasing indigenous oil and gas reserves, developing renewable energy resources, increasing the use of alternative fuels (CNG for transport), forging strategic alliances with other countries and promoting a strong energy efficiency and conservation program. The power market reforms aim at privatizing generating capacity, correct pricing of natural resources and energy supplies and to attract foreign investors in the sector.
  7. The 2012 -2030 PEP is crafted with due consideration and premium on the economic parameters sourced from the National Economic 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). The ERA is consistent with the 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 UN Sustainable Energy for All Initiative and the APEC Green Growth Goals.
  8. (a) Ensure Energy Security – through the development of the indigenous energy such as renewable energy and hydrocarbon fuels (oil, gas and coal); (b) Achieved Optimal Energy Pricing in electricity and oil; and, Develop 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. An over-arching strategy
  9. An over-arching strategy to achived these 3 major pillars is the principle of good governance. As government liberalizes access to energy, transparency and accountability shall be the norms of conduct in all phases in energy policy, program and project development. Open competition and due diligence shall characterize all energy contracting rounds to level the playing field. Doing business in the energy sector will be a lot easier and more convenient with the creation a one-stop shop to streamline government procedures and processes. Enhancing current fiscal and non-fiscal incentives will pave the way for a more-investment friendly environment.
  10. For power generation projects, the DOE estimated an additional requirement of 29,329 megawatts (MW) of installed generation capacity by 2030. Luzon grid needs a total additional capacity of 10,500 MW onwards to 2030. A 600 MW new capacity is needed starting 2016 to meet the demand and required reserve Specifically, the PEP will deal with the future of energy development which is very vital to the country’s prosperity. COMMITTED POWER PROJECTS Luzon Grid - 1,724.65 MW Visayas Grid – 599.60 MW Mindanao Grid – 1,078.5 MW
  11. DOE envisioned a more secured energy sector, less energy intensive economy, more efficient and sustainable energy systems and facilities and reduced dependence on oil importation as DOE Secretary stated.
  12. According to DOE, the Philippines needs around P 3.174 trillion in investments for power generation projects to make it energy sufficient by 2030, Secretary Carlos Jericho Petilla said. (The Philippine Star, Dec 20, 2012.
  13. “DOE Department Circular No. 2014-08-0014” ---DOE Under this circular, only hospitals, military installations, airports and similar entities could maintain the regular use of electricity. The DOE enjoins all electricity consuming sectors, particularly residential, industrial and commercial establishments to implement energy conservation measures. Interruptible Load Program (ILP). The ILP instead of leasing bunker-fired generator, is being considered to address the looming power crisis in the summer of 2015. Under the program, large energy users can use their own generators or sell their excess capacity to the grid. ILP participants will be compensated by Meralco, which in turn will charge the cost to other electricity users, because participants would be de-loaded from the grid and generate their own power requirements. Government agencies and offices, where adequate ventilation is available should discontinue the use of their ACUs.
  14. A tight supply situation arises when there is not enough capacity to meet rising demand in a given period. This leads to higher prices at Whole Sale Spot Market (WESM), the country’s trading floor for electricity, such as in November last year when a record P3.44 per kilowatt-hour increase was posted in the December 2013 generation charge of Meralco. “If we had more plants come in, the power supply situation would be more stable. Ideally, we would want another plant coming in 2015 and 2016,” said Luis Miguel Aboitiz, President of the Phil. Independent Power Producers Association of 28 power generation companies. Typically we need 250 MW – 300 MW of new capacity of baseload capacity a year to handle growth in demand, Aboitiz said. (The Phil. Star, January 6, 2014). Peak demand in Luzon Grid is expected to increase at an annual average of 4.13% to 16,477 MW in 2030 from only 7,969 MW in 2012. The DOE, for its part, said the feared critical power situation in Luzon in 2015 would be addressed if the committed power projects will be completed on time. Under the 2012 Power Development Plan, the projects committed from 2013 to 2016 would provide a total of 868 MW. According to DOE data, the grid will require an additional 500 MW by 2016 and 8,100 MW by 2030.
  15. There are a lot power plant committed by private corporation , we cannot rely on this for some back-out like the Ayala Corporation’s AC Energy Holdings in partnership with Mitsubishi Corp. The Mindanao Solar Farm can generate 35 MW in Davao Del Sur, the project is shelve because the feed-in-tarrif (FIT) for solar projects were not enough to heat up the company’s interest in pursuing the solar farm, because the economics of solar is not viable for the moment. By 2017 we need an additional 600 MW as stated by DOE Sec. Jerico Petilla.
  16. Government must accelerate the exploration and development of oil, gas and coal resources 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 Intensify development and utilization of renewable and environment-friendly alternative energy resources/technologies