DEPARTMENT OF ENERGY

Dir. Jesus T. Tamang

Cagayan de Oro February 22, 2013

Energy Reform Agenda (ERA)

Energy Access for More
A key priority of government to mainstream access of the greater majority to reliable energy services and fuel, most importantly, local productivity and countryside development
Good Governance thru stakeholder participation, transparency, multi-sectoral partnership and use of ICT

Ensure Energy Security

Achieve Optimal Energy Pricing

Develop a Sustainable Energy System

Transparency Initiatives, Implementation and Information

Policy Thrusts
PEP 2012-2030

Ensure Energy Security

Expand Energy Access

Promote Low-Carbon

Future
Climate Proof the Energy Sector

Ensure Energy Security

Triple the RE Capacity by 2030
Medium Term (2016-2020) 1,100.0

Sector
Geothermal

Short Term (2011-2015) 220.0

Long Term (2021-2030) 175.0

Total (in MW) 1,495.0

Hydropower
Biomass Biofuels

341.3
276.7
DC on E10 in 2011 Mandatory E10 to all Gasoline by 2012 PNS for B5 by 2014 DC on B5 by 2015 Mandatory B5 to all Diesel by 2015

3,161.0

1,891.8

5,394.1
276.7

PNS for B20 and E85 by 2020 DC on B10 and E20 by 2020

DC on B20 and E85 by 2025

Wind Solar Ocean Power TOTAL (in MW)

Source: NREP 2011-2030

200.0 50.0 0 1,088.0

700.0 100.0 35.5 5,096.5

1,445.0 200.0 35.0 3,746.8

2,345.0 350.0 70.5 9,931.3

Ensure Energy Security

Promote Indigenous Fossil Fuels
2011
2.3 140.4 5.1 6.9

Fossil Fuel Oil (MMB) Gas (BCF) Condensate (MMB) Coal (MMMT*)

2012-2030 78.0 2,837.8 70.8 229.9

*@10,000 BTU/lb

Ensure Energy Security

Promote Indigenous Fossil Fuels PECR for Coal was launched on 01 December 2011 offering 38 prospective coal areas Offered areas are located in: Agusan del Norte, Misamis Oriental, Agusan del Sur, Surigao del Sur, Compostela Valley, Davao Oriental, Lanao del Sur, Lanao del Norte, South Cotabato, Sultan Kudarat, Saranggani, Zamboanga del Norte and Zamboanga Sibugay.

Ensure Energy Security

Grid Required Installed Committed by 2030 (end 2011) Indicative Net

Reliable and Efficient Power Sector, in MW

Luzon Visayas Mindanao TOTAL

20,707.7 4,412.0 4,210.0 29,329.7

11,811.1 2,393.8 2,022.0 16,226.9

868.7 310.0 588.0 1,766.7

6,819.3 433.0 527.0 7,779.3

1,280.7 1,267.0 1,073.0 3,620.7

A. Increase installed capacity B. Upgrade and expand transmission and distribution network C. Interconnect the island grids D. Expand energy market from Luzon-Visayas to Mindanao and include RE.

Ensure Energy Security

Reliable and Efficient Power Sector Upgrade and expand the transmission lines

Interconnect Mindanao with the Visayas

Batangas-Mindoro Interconnection

NGCPs Grid Development Map

Expand Energy Access

Transmission Development Projects
Transmission Lines Type of Project Luzon New Upgrading/Expansion Sub-total Visayas New Upgrading/Expansion Sub-total Mindanao New Upgrading/Expansion Sub-total Philippines New Upgrading/Expansion TOTAL No. of Projects 7 4 11 10 10 6 6 Substations Kilovolts Kilometers No. of No. of (kV) (Km.) Projects Substations 1,673 1,035 2,708 1,817 1,817 1,150 1,150 368.5 133.55 502.05 688.91 688.91 513.00 513.00 1 11 12 2 2 4 2 3 5 15 50 65 28 8 36 11 24 35

23 4 27

4640 1035 5,675

1570.41 133.55 1,703.96

5 16 21

54 82 136

Achieve 90% Household Electrification by 2017 Achieve 100% Sitio Electrification by 2015

Expand Energy Access

Expand Energy Access

Downstream Oil Sector

Area / Regional Depots Service / Refilling Stations LPG Refilling Stations Distribution Pipelines

Promote Low-Carbon Future

Achieve 10.0 Percent Energy Savings by 2030

The Bright Now! Campaign aims to educate and empower Filipinos to be smart energy users Expand coverage of energy labeling program and move towards standardization Government to lead 10.0 percent savings on fuel and electricity Consistent with the ASEAN and APEC Targets

Promote Low-Carbon Future

Achieve 10.0 Percent Energy Savings by 2030

Energy Standards and Labeling Program will be expanded to cover: Television sets Washing machines Refrigerators (up to 12 cubic feet) New models of passenger cars and light duty vehicles

30% of Public Utility Vehicles on Alternative Fuels by 2030

Promote Low-Carbon Future

Promote use of clean and alternative fuels

20% biofuels blending by 2030 Expand number of compressed natural gas (CNG) and auto-LPG vehicles Massively deploy electric vehicles (EV)

Support expansion of mass transport system

30% of Public Utility Vehicles on Alternative Fuels by 2030

Promote Low-Carbon Future

2011 2015 2016 2020 2025

Type CNG Bus Taxi AutoLPG E-trikes

2030

Number of Vehicles 61 19,052 630 10% 2% 1,000 20,200 50,170 10% 5% 5,000 100 20,500 80,730 10% 5% 6,900 1,000 21,700 106,000 20% 10% 9,200 6,000 23,200 150,000 20% 20% 15,000 16,000 23,000 230,000 20% 20%

Biofuel Blending Ethanol CME

30% of Public Utility Vehicles on Alternative Fuels by 2030 (Biodiesel)

Diesel Demand Biodiesel Blend (Target) 2% Supply Requirement/Fuel Displacement (In Million Liters) 134 (In KTOE) 114

Promote Low-Carbon Future

Year

(In Million Liters) 6,724

(In KTOE) 5,697

2011
2015

7,645
9,056 10,348 11,428

6,477
7,672 8,768 9,683

5%
10% 20% 20%

382
906 2,070 2,286

324
767 1,754 1,937

2020
2025 2030
Note:

Total Supply requirement of Biodiesel is equal to the total diesel to be displaced

30% of Public Utility Vehicles on Alternative Fuels by 2030 (Bioethanol) Gasoline Demand Year (In Million Liters) 4,181 5,350 7,955 10,322 12,589 (In KTOE) 3,274 4,189 6,229 8,083 9,858

Promote Low-Carbon Future

Bioethano l Blend (Target)

10% 10% 20% 20% 20%

Supply Requirement/Fuel Displacement (In Million Liters) 418 535 1,591 2,064 2,518 (In KTOE) 327 419 1,246 1,617 1,972

2011 2015 2020 2025 2030

Note:

Total supply requirement of bioethanol is equal to total gasoline to be displaced

Promote Low-Carbon Future

Use of Natural Gas in All Sector

Promote Low-Carbon Future

Use of Natural Gas in All Sector

Mindanao Critical Infrastructure Projects

Floating Storage & Regasification Unit (FSRU)
FSRU Facility in Macajalar Bay, Misamis Oriental

Target Year
2014-2016

Pipeline Projects
27.4 k.m. Pipeline System for Cagayan de Oro and PHIVIDEC Area 2x2 k.m. Distribution Pipeline in Iligan City

Target Year
2014-2016 2014-2016

Storage Facility
Satellite Supply Terminal (2 Storage Tanks each with 120 cu.m.) in South Iligan Satellite Supply Terminal (1 Storage Tanks with 120 cu.m.) in North Iligan

Target Year
2014-2016 2014-2016

Refilling Station
Liquefied Compressed Natural Gas (LCNG) Refueling Stations in Iligan City, CDO and PHIVIDEC Areas
Note: Said Targets are still subject for review based on current socio-economic conditions.

Target Year
2016-2017

19

Promote Low-Carbon Future

Use of Natural Gas in All Sector

Mindanao Critical Infrastructure Projects

Liquefied Natural Gas (LNG) Terminals
3 Satellite LNG Terminals in Davao via General Santos

Target Year
TBD

Pipeline Projects
53 k.m. Pipeline in General Santos

Target Year
2016-2018

Refilling Stations
Liquefied Compressed Natural Gas (LCNG) Refueling Stations in General Santos and Davao
Note: Said Targets are still subject for review based on current socio-economic conditions.

Target Year
2016-2018

20

Climate Proof the Energy Sector

Promote a climate change resilient energy sector

Implement the National Climate Change Action Plan (NCCAP) in the energy sector
Mitigation action mainly through energy efficiency, renewable energy and alternative fuels and technology programs Conduct vulnerability assessment of the energy sector

Identify and pursue adaptation programs

Upgrade standards for energy systems and facilities

Critical Drivers and Factors to Consider

Sustained high economic growth target Re-entry of the manufacturing sector Infrastructure programs i.e. roads, bridges, ports, etc. Expanded RE and fuel mix Climate change impacts Mindanao-Visayas interconnection Full household electrification by 2017

Mindanao Power Supply-Demand Outlook 2012-2030

with Indicative Projects for 2013-2014
4000 3500 3000 2500

Critical Periods
2014 initial relief period due to committed and indicative capacities 2018 next critical period with committed capacity only 2020 - if with committed and indicative capacities
Additional capacity requirement will be more than calculated due to presence of suppressed demand

2000
1500 1000

2017

2019

2021

2012

2013

2014

2015

2016

2018

2020

2022

2023

2024

2025

2026

2027

2028

2029

Existing Capacity Plus Indicative Peak Demand @ 5.28 GR+ RM

Existing +Committed Capacity Peak Demand @ 4.76 GR + RM

Notes a. Demand curve represents total of peak demand and required Regulating Reserve (RM) i.e. 4% regulating reserve and contingency and dispatchable reserve requirement (RM). b. 4.76% peak demand growth rate resulted from aggregated demand as submitted by the utilities to DOE. c. 5.28% peak demand growth rate resulted from observed 0.8 elasticity ratio of demand for electric power with national economic growth applied to 6.6 percent GDP growth rate (GR) for 2012. 23 d. Power demand in the island remains restrained. Grew by 1.84 % in 2012.

2030

Interim Mindanao Electricity Market (iMEM)

Interim Mindanao Electricity Market Design

Goal: Provide an immediate venue for transparent and efficient utilization of additional capacities to address current Mindanao energy supply shortfall

Participants
Generators (Grid, Embedded, Firm, Non-Firm) Customers With Self Gen Capability (DUs) Demand-Side (VLC)

Pricing
Bid-based with Bid Cap

Interim Mindanao Electricity Market

Scheduling
Day-Ahead Nomination Real-time imbalance correction

Financial Settlement
Uniform Pricing (Market Clearing Price)

Establishment Timeline
Consultation Market Rules Promulgation

ERC Filing for PDM and CRM

Policy and Budget Approval

Consultation Promulgation

Market Rules Development

Regulatory Approvals
Rates Cost Recovery

IMEM
- Price Determination Methodology and Cost Recovery Filing

-DC Issuance -MF Filing for utilization of savings

DC ISSUANCE: 9 JAN 2013
DATE FILED: 21 JAN 2013

-Engagement of Consultants - Market Rules Drafting - Public Consultation - DC Issuance

6 Months

5 Months

LAUNCH DATE: 26 APR 2014

Market Development
Training and System Trial Infra & System Development

Stakeholder Engagement
J F M A M J J A S O N D J F M A

2013

2014

15 months starting from the Issuance of DC *As presented during the public consultations

DEPARTMENT OF ENERGY

Dir. Jesus T. Tamang

Cagayan de Oro February 22, 2013