This document outlines the Philippine energy plan from 2012-2030. It discusses the Department of Energy's goals of ensuring energy security, achieving optimal energy prices, and developing a sustainable energy system. The plan aims to triple renewable energy capacity by 2030. It identifies strategies like expanding renewable energy use, accelerating oil and gas exploration, and promoting energy efficiency. The plan requires 3.174 trillion PHP in investments and involves various government agencies in implementation activities to achieve rural electrification, develop indigenous resources, and promote renewable energy.
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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
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.
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.
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.
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.
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.
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.
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.
(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
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.
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
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.
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.
“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.
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.
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.
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