5/17/2010

GOP Directive
Ensure energy security
Ensuring the
2008 Philippine
Energy Summit best energy
2ND Meeting of the Energy Committee choices for a
Philippine Chamber of Commerce and Industry Pursue effective
PEP Consultations implementation of energy
better quality
28 April 2010 sector reforms
PCCI Boardroom
Sustainable of life
Development
Framework Implement social
JESUS T. TAMANG mobilization and cross-
International sector monitoring
Director Frameworks on
Energy Policy and Planning Bureau Energy Cooperation
mechanism

PRIMARY ENERGY MIX POWER GENERATION MIX

Increased Energy Self-sufficiency and Fuel Diversification Increased Energy Self-sufficiency and Fuel Diversification in Power

45,000  70  70,000 

40,000 
60  60,000 
70 
2009
35,000  2009 Wind & Solar 
Wind & Solar 
50  0% 50,000  60  0%
30,000 

25,000  40  Biomass  40,000  Oil

GWh
kTOE

14% 50 
%

Oil 8%

%
20,000  30  32% Geothemal
30,000 
40  17%
15,000  Coal
20  Geothemal 20,000  26%
10,000  23% Hydro
30  16%
10  10,000 
5,000 
Coal
17%
‐ ‐ ‐ 20 
Hydro
2001 2002 2003 2004 2005 2006 2007 2008 2009 6% Natural Gas 2001 2002 2003 2004 2005 2006 2007 2008 2009 Natural Gas
8%
Oil Coal Natural Gas Hydro 33%
Geothemal Biomass  Wind & Solar  Self‐sufficiency OilOil Coal
Coal Natural Gas
Natural Gas Hydro
Hydro
Total = 40.4 MTOE Geothemal
Geothemal Biomass 
Biomass  Wind & Solar 
Wind & Solar  Self‐sufficiency
Total = 62,000 GWh
Self-sufficiency Self-sufficiency
2001 = 47.75% 2001 = 39.1%
2009 =58.89% 2009 = 66.4%

1 Ensure energy security 2 Pursue effective implementation of

energy sector reforms
• Accelerate the exploration and development of
oil, gas and coal resources • Monitor the implementation of, and if necessary,
• Intensify development and utilization of renewable recommend amendments to existing energy
and environment-friendly alternative energy laws
resources/technologies
• Promote an efficient, competitive, transparent
• Enhance energy efficiency and conservation
and reliable energy sector
• Attain nationwide electrification
• Advocate the passage of new and necessary
• Put in place long-term reliable power supply laws
• Improve transmission and distribution systems
• Secure vital energy infrastructure and facilities
• Maintain a competitive energy investment climate

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3 Implement social mobilization and cross- 1 Ensure energy security

sector monitoring mechanism

• Expand reach through Information, Education

and Communication
• Establish cross-sector monitoring mechanism in
cooperation with other national government
agencies, academe, LGUs, NGOs and other
local and international organizations
• Promote good governance

SECTOR: OIL AND GAS SECTOR: OIL AND GAS

Field 2030 Targets

Aw arding of Service Contracts 117
Production  Exploration and development of natural gas supply base
Oil (MMB) 78.59
- Nido 0.9  Inventory of other potential sources of natural gas and its
- Matinloc
- Galoc
0.51
10.77
application
- Malampaya 23.1
- West Linapacan A 23.16  Improve IEC campaign on petroleum operations
- Cadlao 3.45

 Establishment of environmental standards with the DENR-

- Octon 1.46
- Linapacan 15.24
Gas (BCF) 2,694.16 EMB
- Malampaya 2,628.00
- San Martin 51.72
 Creation of one-stop shop
- Sultan sa Barongis 10.92
- Libertad 3.52
Condensate (MMB) 87.58  Continuous conduct and improvement of access
- Malampaya 79.33 provision of the PECR
- Sultan sa Barongis 8.25

SECTOR: COAL

1 Ensure energy security

Sectoral Target : Increase indigenous coal production by 250%
2010 2015 2020 2025 2030
In-situ Reserves (MMMT) 408.84 432.42 459.19 484.06 509.96

Luzon 54.13 53.65 53.20 53.09 53.02

Vi
Visayas 157 50
157.50 173 97
173.97 192 89
192.89 209 99
209.99 227 89
227.89
Mindanao 197.21 204.81 213.10 220.99 229.05
Production (@10,000 6.29 9.47 10.65 11.91 12.08
BTU/lb MMMT)
Luzon 0.13 0.18 0.20 0.24 0.24
Visayas 0.39 0.85 7.24 8.28 8.32
Mindanao 1.23 2.97 3.21 3.39 3.52
Fuel Oil Displacement 3.32 5.00 5.62 6.29 6.38
(MTOE)

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SECTOR: COAL

 Improve IEC campaign

 Accelerate development of coal mine-mouth power plant

 Regular conduct of PECR

 Research and promotion of Clean Coal Technologies

SECTOR: RENEWABLE ENERGY SECTOR: RENEWABLE ENERGY

 Development of RE database
Cumulative
20-Year
Installed 2010 2015 2020 2025 2030
PEP
Capacity (MW)  Intensive promotional activities on RE resources

Hydropower 4,166.84 3,477.81 4,433.51 6,432.21 6,615.19 7,533.84  Enhancement of RE stakeholders’ technical expertise

Wind 985 00
985.00 33 00
33.00 199 00
199.00 903 00
903.00 953 00
953.00 1 018 00
1,018.00  P
Promotion
ti off emerging
i ocean energy projects
j t (OTEC,
(OTEC wave,
marine and tidal)
Solar 78.26 6.74 11.75 36.27 60.65 85.00

Biomass* 266.70 75.50 93.90  Encourage service contractors to undertake expansion and
optimization projects
Geothermal 1,475.0 1,972.07 2,382.07 3,037.07 3,177.07 3,447.07
 Assessment/development of low enthalpy geothermal resources,
Ocean
as well as non-power applications of geothermal resources.
TOTAL 6,971.8 5,565.12 7,120.23 10,408.55 10,805.91 12,083.91
 Intensive IEC campaign on environmental issues
Note: There is an additional indicative capacity of 240.8-MW for biomass. However, no data was provided as to what year the indicative capacities would come in.

SECTOR: ALTERNATIVE FUELS (Biodiesel)

1 Ensure energy security

Year Diesel Demand Biodiesel Blend Fuel
(In million (Targets)* Displacement
liters)* (In million liters)
2009 5,144.54 2% 102.89
2010 ,
5,379.42 2%
% 107.59
2015 6,632.36 10% 663.24
2020 7,805.75 15% 1,170.86
2025 8,768.48 20% 1,753.70
2030 9,427.89 20% 1,885.58
Note: *Based on JICA Study on Capability Enhancement on Policy and Planning for a
More Effective and Comprehensive Philippine Energy Plan (PEP) Formulation

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SECTOR: ALTERNATIVE FUELS (Bioethanol) SECTOR: ALTERNATIVE FUELS (BIOFUELS)

Year Gasoline Bioethanol Fuel

Demand Blend Displacement
 Increase market awareness for alternative energy
(In million (Targets)* (In million liters) projects
liters)*
2009 3,380.10 5% 169.01  Forge partnerships with academe and research
2010 3,570.58 5% 178.53 institutions to conduct on-road performance and
2015 4,305.30 15% 645.79 durability tests for higher biofuels blend for
2020 5,213.00 20% 1,042.60
vehicles
2025 6,013.85 20% 1,202.27
 Develop standards for higher fuel blends (10%-20%
2030 6,704.34 20% 1,340.87
for biodiesel and 20%-85% for bioethanol)
Note: *Based on JICA Study on Capability Enhancement on Policy and Planning for a
More Effective and Comprehensive Philippine Energy Plan (PEP) Formulation
 Viability study for other potential feedstock

 Expand the utilization of biofuels

SECTOR: ALTERNATIVE FUELS (CNG) SECTOR: ALTERNATIVE FUELS (CNG)

Cumulative number of CNG Buses Diesel Liter

(Target) Equivalent
Year Luzon Visayas Mindanao Total (In million liters)  Implementation of NGVPPT policy directives

2009 70 70 3.28  Support/facilitate passage of a CNG Bill for Transport

2010 200 200 9.36
 Enhancement of policy directives and program
2015 1,022 178 1,200 56.16
incentives (supply and price mechanisms)
2020 1,884 329 288 2,213 117.00

2025 3,768 657 576 5,001 234.05

 Ensure gas supply for the commercial phase

2030 7,535 1,314 1,151 10,000 468.00

Note: Based on JICA Study on Capability Enhancement on Policy and Planning for a More
Effective and Comprehensive Philippine Energy Plan (PEP) Formulation

SECTOR: ALTERNATIVE FUELS (Auto-LPG) SECTOR: ALTERNATIVE FUELS (NUCLEAR)

 Validation of the BNPP feasibility study result which was recently

 Policy direction on submitted by the Korean Electric Power Company (KEPCO) as the
- LPG utilization major deliverable of the MOU between the NPC and KEPCO
- Two/four stroke motorcycle engine, motorized
bancas and other diesel engines  Site safety review on the BNPP to assess previous site studies

 Develop a public communication plan that will serve as guidepost

 Review and formulate standards for two and four IEC
stroke motorcycle engine
 Conduct a comprehensive study in the economic viability and
competitiveness of nuclear power as a long-term energy option for
the Philippines

 Continue capability enhancement of local manpower

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SECTOR: ENERGY EFFICIENCY

1 Ensure energy security Sectoral Target : 10% energy savings on the total annual energy
demand of all economic sectors

Energy Unit 2010 2015 2020 2025 2030

KTOE 2,402 2,898 3,457 4,085 4,798

MW Deferred
212 266 333 417 522
Capacity
TCO2Emission
6,197,162 7,495,673 8,959,035 10,596,463 12,446,357
Reduction

SECTOR: ENERGY EFFICIENCY SECTOR: ENERGY EFFICIENCY

 Development of:
 Advocate passage of the Energy Efficiency and
 Energy labeling for new models of passenger cars
Conservation Bill
and light-duty vehicles
 Efficiency guidelines for residential buildings
 Promotion of Energy Service Companies (ESCO)
 Energy benchmark for commercial/ government
buildings and industrial facilities
 Continuing implementation of National Energy
 Energy Management Standard for industrial
Efficiency and Conservation Program (NEECP),
establishments
Government Energy Management Program (GEMP),
 Development/Promotion of Green Building
and the Philippine Energy Efficiency Project (PEEP)
Technology
and Demand Side Management (DSM) Program
 Put in place a Certification Program for energy
managers/auditors

SECTOR: ENERGY EFFICIENCY

 Monitoring of efficiency performance of power

generation utilities and electric distribution utilities
2 Pursue effective implementation
of energy sector reforms
 Promotion of:
 Aviation Fuel Efficiency Enhancement
 Retrofit of commercial and industrial
establishments for energy efficiency and
conservation
 Voluntary Agreement Program on the
Rationalization of Tricycle Operation

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SECTOR: POWER (GENERATION) SECTOR: POWER (GENERATION)

Year Rated Capacity (MW) Project

2010 50 Coal-Fired Power Plant in Pampanga
Island Grid 2010 2011 2012 2014
2011 86 Burgos Wind Power Project
Luzon 600 50 Wind Farm Power Project

Visayas 328 325.5 300 LNG and Combined Cycle Gas Turbine

17 5
17.5 Nueva Ecija Biomass Power Project
Mindanao 42.5 8.0 50.0
17.5 Malasiqui Biomass Power Project
TOTAL 370.5 333.5 600 50.0
30 Northwind Pamplona Project

40 Northwind Aparri Project

Luzon 2012 GN Power (600 MW) Mindanao 2010 Sibulan Hydro (42.5 MW)
Visayas 2010 Cebu Coal (164 MW) 2011 Cabulig Hydro (8 MW) 2012 40 Tanawon Geothermal Project
Iloilo Coal (164 MW) 2014 Mindanao Geothermal (50 MW)
2011 Kepco Naga Coal (206 MW) 300 Subic Coal Fired Power Plant
Panay Biomass (17.5 MW)
Nasulo (20 MW) 1 Quezon Power Expansion Project
Cebu Coal (82 MW)

SECTOR: POWER (GENERATION) SECTOR: POWER (GENERATION)

Year Rated Capacity (MW) Project

2012 17.5 Isabela Biomass Power Project Phase 2
17.5 Mindoro Biomass Power Project Phase 2 Year Rated Capacity (MW) Project
145 Kanan B1 Hydro Power Project 2012 100 Panay Coal-Fired Power Plant
2013 550 San Gabriel Power Plant 41 Aklan Hydropower Plant

270 Batangas Coal Fired Power Plant 17.5 Negros Biomass Power Project Phase 2

2014 360 Kalayaan Pumped Storage Power Plant III 8 Villlasiga HEP

500 Quezon Power Expansion Project 2014 40 Dauin Geothermal

2015 40 Rangas Geothermal Project 2019 40 Southern Leyte Geothermal Project

30 Balintingon River Multi-Purpose Project N/A 18 Samar Biomass Power Project

2016 40 Manito-Kayabon Geothermal Project

N/A 23 Pagbilao Expansion
N/A 78 Pantabangan Expansion
N/A 40 Pagudpud Wind Power Project

SECTOR: POWER (GENERATION)

2 Pursue effective implementation of energy

sector reforms
Year Rated Capacity (MW) Project
2010 20 Bunker Fired Power Plant
2011 27.5 Tamugan Hydropower Project
225 Agus 3 Hydroelectric Plant
17.5 Cagayan
g y de Oro Biomass Power Project
j
2012 68 Tagoloan Hydropower
17.5 Davao Biomass Power Project
2014 200 Southern Mindanao Coal Fired Power Station
N/A 5 Camiguin Island Wind Power
N/A 5.8 Sibulan HPP
N/A 9 Sibulan HPP

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Barangay Electrification Situationer Electrification Level by Region

(31 March 2010) (31 March 2010)
REGION POTENTIAL ENERGIZED BALANCE ELECTRIFICATION LEVEL

CAR 1,176 1,176 - 100.00%

PHILIPPINES – 99.75% REGION I 3,265 3,265 - 100.00%
REGION II 2,311 2,311 - 100.00%
REGION III 3,102 3,100 2 99.94%

Luzon – 99.67% REGION IV – A 4,010 3,956 54 98.65%

REGION IV – B 1,458 1,448 10 99.31%
REGION V 3,469 3,468 1 99.97%
NCR 1,695 1,695 - 100.00%

105 SUB-TOTAL LUZON 20,486 20,419 67 99.67%

Visayas – 99.97% Remaining Unenergized REGION VI 4,050 4,050 - 100.00%
Barangays
REGION VII 3,003 3,003 - 100.00%
REGION VIII 4,389 4,386 3 99.93%

SUB-TOTAL VISAYAS 11,442 11,439 3 99.97%

Mindanao – 99.65% REGION IX 1,904 1,904 - 100.00%
REGION X 2,020 2,013 7 99.65%
REGION XI 1,160 1,160 - 100.00%
REGION XII 1,194 1,191 3 99.75%
ARMM 2,459 2,435 24 99.02%
CARAGA 1,310 1,309 1 99.92%

SUB-TOTAL MINDANAO 10,047 10,012 35 99.65%

PHILIPPINES 41,975 41,870 105 99.75%

SECTOR: RURAL ELECTRIFICATION

2 Pursue effective implementation of energy

sector reforms
 Attain 90 percent household electrification by 2017

 Development and implementation of innovative

service delivery mechanisms to increase household
connections

SECTOR: POWER (PRIVATIZATION) SECTOR: POWER (PRIVATIZATION)

PRIVATIZATION PRIVATIZATION – GENERATING ASSETS

 Accelerate implementation of Open Access and Retail  Operating plants: 706-MW Capacity*
Competition
 Expiring/Expired NPC-IPP Plants: 650-MW**
 C
Completion
l ti off remaining
i i pre-conditions
diti
 Threshold and privatization of the remaining NPC  Decommissioned Plants: 850-MW***
generating assets
 Complete the appointment of IPP Administrators to reach
70% transfer of the remaining IPP contracts
Note:
 Continuous divestment of remaining STAs * Angat (246-MW), Bacman (150-MW), Hopewell GT (310-MW)
** Malaya (650-MW)
*** Sucat (850-MW)

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SECTOR: POWER (PRIVATIZATION)

2 Pursue effective implementation

PRIVATIZATION – IPP ADMINISTRATION of energy sector reforms

 3RD Wave
 To cover the capacity contracted at Ilijan Natural Gas Power Plant in
Ilijan, Batangas
 Approach and commercial structure to be adopted for the
remaining IPPs can differ from the one being used for the 1st wave of
tendering (Sual and Pagbilao) and second wave (San Roque and
Bakun Hydroelectric).

 Other Expired or Expiring IPP Contracts

 Oil-fired IPPs such as Malaya (plants with ECAs and/or O&M
contracts which expired or to expire this year and in 2010) will
undergo the original path of privatization adopted for the NPC owned
generating power plants.

SECTOR: DOWNSTREAM OIL

2 Pursue effective implementation

 Ensure a competitive oil industry market, as well as of energy sector reforms
reasonable prices of petroleum products

 Mitigate the impact of oil prices on consumers

 Promote efficiency in supply and distribution chain

 Promote awareness on the downstream oil industry

initiatives and developments including pricing

SECTOR: NATURAL GAS SECTOR: NATURAL GAS

 INFRASTRUCTURE DEVELOPMENT
BATMAN 2
 POLICY INITIATIVES (Bataan - Manila)
140 kms. (2016)
 Natural Gas Bill ET LOOP
 Incentives for natural gas in the Investment Priorities Plan (EDSA – Taft Loop)
40 kms. (20200

 PRODUCTION AND SUPPLY SECURITY SU--MA

SU
(Sucat - Malaya)
35 kms. (2017)
 M
Monitoring
it i and
d evaluation
l ti off natural
t l gas supply
l developments
d l t in
i
ASEAN, Middle East and APEC member countries BATCAVE
(Batangas – Cavite)
40 kms (2020)
 INFRASTRUCTURE DEVELOPMENT
RO--BIN
RO
(Rosario - Biñan)
 Review and update of the country’s Master Plan Study for the 35 kms. (2014)
Development of the Natural Gas Industry
BATMAN 1
 Conduct of FS for LNG terminal to supply natural gas requirements (Batangas Manila)
in Visayas and Mindanao 80-100 kms. (2013)
80-
 Develop and implement Infrastructure Development Plan for
Visayas and Mindanao by 2021-2030 CATLINE (Calaca
Spurline)
30 kms.

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SECTOR: NATURAL GAS

 MARKET DEVELOPMENT

 Conduct study for the use of natural gas from other potential
sources
 Evaluation of techno-economic aspects of related technologies for
fuel shift to natural gas
 Promotion of on-site or small-scale power generation using
marginal gas fields

SECTOR: ENVIRONMENT MANAGEMENT

 Impact and vulnerability assessments of the energy

systems
 Monitoring systems in the application of adaptation
policies and measures and adaptive capacity
 Assessment of energy technology needs
needs, options and
2ND Meeting of the Energy Committee
priorities Philippine Chamber of Commerce and Industry
 Modification of engineering design practices
28 April 2010
 Development and adoption of sustainable financing PCCI Boardroom
mechanisms
 Integration of climate change adaptation to energy
policies, plans and strategies JESUS T. TAMANG
Director
Energy Policy and Planning Bureau

SECTOR: RURAL ELECTRIFICATION

Player April May June September Problematic SCENARIO DEMAND SUPPLY

DOE 7 7 9 2 10 PROGRAMS/TARGETS ASSUMPTION
NEA Reference REFERENCE SCENARIO Existing + committed
(2008 base year)  5% efficiency improvement for all demand power projects
NPC – SPUG 1 sector
TeaM 10  CNG buses to increase by 200 units in 2010
E
Energy  Biodiesel
Bi di l bl
blend
d (2% in
i 2009)
KEPHILCO 1  Ethanol blend(10% in 2011)

EDC 1 Low Carbon Scenario 1 ALTERNATIVE SCENARIO Double RE capacity

(LCS 1)  10% efficiency improvement for all
USAID - 3
demand sectors
AMORE
 CNG buses to increase to 10,000 units in
MERALCO 54 2030
Low Carbon Scenario 2  Biodiesel blend (5% in 2010; 10% by 2015; Double RE capacity +
Grand Total 21 7 9 56 12 (LCS 2) new and other
15% by 2020; 20% by 2025)
emerging
 Ethanol blend (10% in 2011; 15% in 2015; technology e.g. new
20% in 2020) RE, nuclear, etc.

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Parameters 2008-2010 2011-2015 2016-2030

MTOE
50
High GDP Growth 6% 6%
40
Mid GDP Growth 1.3 - 2009 5% 5%
2.6 - 2010 30
Low GDP Growth 4% 4%
20
Crude Oil Price per 70 80 90 - 120 10
Barrel (US dollars)
0
Population 2% 2% 1% 2008 2030 Reference 2030
LowCarbon
Crude Oil Price per Milestone Year GDP – Based on DBCC
2011-2015 – 80 Transport Industry Residential Commercial Agriculture
2016-2020 – 90
2021-2025 – 100
2026-2030 – 120
Reference: IEA WEO 2008 – 2030

MTOE
90
180000
80
AAGR = 3.7% 160000
70 (2008-2030) Solar
60 140000
Biomass
50 120000 Wind
40
100000
GW h

Hydro
30
80000 Geothermal
20
60000 Natural Gas
10
Oil‐based
0 40000
2008 2030 2030 2030 Coal
20000
Reference LowCarbon1 LowCarbon2
0
2010 2015 2020 2025 2030
Coal Oil Natgas Hydro Geothermal Biomass Nuclear

160000 160000
Solar
Nuclear
140000 Biomass 140000
Solar
Wind
120000 120000
Oil‐based Biomass

100000 Hydro 100000 Wind

GWh

Geothermal
GWh

80000 Oil‐based
Natural Gas 80000
Hydro
60000 Coal
60000
Geothermal
40000
40000 Coal
20000
20000 Natural Gas
0
0
2010 2015 2020 2025 2030
2010 2015 2020 2025 2030

10
 MW GWh
GWh

20000
40000
60000
80000
100000
120000
140000

‐
500 
1,000 
1,500 
2,000 
2,500 
3,000 
3,500 
4,000 
4,500 
2009

15 000

‐
2009

5,000 
10,000 
15,000 
20,000 
25,000 
2010 2010
2009
2011 2011
2010
2011 2012 2012
2012 2013 2013
2013 2014 2014
2014 2015 2015
2015 2016
2016
2016 2017
2017
2017 2018
2018
2018 2019
2019 2020 2019
2020 2021 2020
2021 2022 2021
2022 2023 2022
2023 2024 2023
2024 2025 2024
2025 2026 2025
2026 2027
2027 2026
2028
2028 2027
2029
2029 2028
2030
2030 2029
2030

Oil
Geo

Coal

Oil
Hydro
Oil

Geo

Coal
Gas

Solar
Geo

Biomass
Coal
Wind

Hydro
Hydro

MW
GWh
0
5000
10000
15000
20000
25000

‐
15 000
2009

10,000 
15,000 
20,000 
25,000 

5,000 
2009 2010
2010 2011
2011 2012
2012
2013
2013
2014
2014
2015
2015
2016 2016

2017 2017
2018 2018
2019 2019
2020 2020
2021 2021
2022 2022
2023
2023
2024
2024
2025
2025
2026
2027 2026

2028 2027
2029 2028
2030 2029
2030
Bi

Oil
Geo

Coal
Hydro
Oil
Gas
Geo

Biomass
Coal
Wind
Hydro

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