IEEJ：2009 年 5 月掲載

Country Report1
Philippines

Prepared by:

Mr. Arnel C. Antonio
Senior Science Research Specialist
Policy Formulation and Research Division
Energy Policy and Planning Bureau
Department of Energy

I. Current Energy Policies and Measures
The general energy policies as provided in Chapter 1, Section 2 ofRepublic Act No. 7638, the law creating the Philippine’s Department ofEnergy (DOE) are the following:To ensure the continuous, adequate and economic supply of energy
with the end view of ultimately achieving self-reliance in the countries
energy requirements through integrated and intensive exploration,production, management, and development of the country’s
indigenous energy resources, and through the judicious conservation,renewal and efficient utilization of energy to keep pace with thecountry’s growth and economic development and taking into
consideration the active participation of the private sector in thevarious areas of energy resource development.

To rationalize, integrate and coordinate the various programs of theGovernment towards self-sufficiency and enhanced productivity inpower and energy without sacrificing ecological concerns.

The said law also mandates the DOE to develop and annually update thePhilippine energy program (Philippine Energy Plan or PEP) which include apolicy direction towards the privatization of government agencies related toenergy, deregulation of the power and energy industry, and reduction of
dependency on oil-fired plants. The PEP update is required to be submitted
to the Congress of the Philippines not later than the fifteenth day of
September every year thereafter.
Hence, the said plan is updated annually. In the year 2007 Philippine
Energy Plan (PEP) Update, the country’s policy is to pursue the Energy1

Due to incomplete energy data for 2008, report was confined to 2007 and 2006

IEEJ：2009 年 5 月掲載
Independence Agenda (part of the 5-point reform package of thegovernment). This energy independence agenda focuses on two major
objectives, (1) a sustainable 60 percent energy self-sufficiency beyond 2010
and (2) promoting a globally competitive energy sector.
Under the 1st objective (60% energy self-sufficiency by 2010), thegovernment is looking on the effective implementation of the following goals:
Aggressive exploration and development of indigenous energy
resources

More contracting rounds for oil, coal and geothermal areas will bepursued and site exploration for hydro potentials will be expanded.
Aggressively develop renewable energy potential such as biomass,solar, wind and ocean resources

The enactment of R.A. 9367 (Biofuels Act), the law which direct the use of
biofuels and establishment of a biofuels program for the full development
and utilization of biofuels in the country. The major alternative fuels
being promoted are biodiesel, bioethanol, autogas and compressed
natural gas.
The enactment of Renewable Energy Act of 2008, the act promoting thedevelopment, utilization and commercialization of renewable energyresources.
This law is made to accelerate the exploration anddevelopment of renewable energy resources and establish the necessary
infrastructure and mechanism to carry out the mandate provided in thelaw.
Strengthen and enhance energy efficiency and conservation program

The government will ensure the implementation of a meaningful energy
efficiency and conservation program that seeks to achieve the following:a) Increased participation of companies managing
consumption efficiently without affecting productivity;

theirenergyb) Strengthened consumer understanding of energy use;c) Encourage Energy Service Companies to accelerate energy efficiency
programs in the commercial and industrial sectors; and,

IEEJ：2009 年 5 月掲載d) Reduce greenhouse gas emissions as a result of improved energy
consumption performance. The government’s National Energy Efficiency
and Conservation Program, through the “EC (energy conservation) Wayof Life” carrier project has provided the framework and leverage topromote the judicious use of energy.
While in the 2nd objective (to establish a globally competitive energy sector),
the goals are the following:

Established a transparent privatization process
Create investment climate attractive to investors

The DOE will continue the implementation of reforms in the power sector, as
well as the downstream oil and gas industries enhance the global
competitiveness of the energy sector. The main focus is to create acompetitive environment that will encourage efficiency and reliability in theproduction and delivery of electricity to all end-users at reasonable price.
On the development of the country’s natural gas industry, specific plan
includes the development of infrastructure, facilities network, market
development and manpower capability building.
The Downstream Oil Industry Deregulation Act of 1998 mandates theliberalization and deregulation of the downstream oil industry to ensure atruly competitive market under a regime of fair prices and level playing field.
II.

2007 & 2006 Overall Energy Balance (see attachment)

Fig. 1 Primary Energy Supply Mix

Indigenous energy sources grow by 2.3 percent due increase production of oil,natural gas and coal. Higher dispatch of the 2,700 MW natural gas-fired plants in
Batangas accelerated gas production of the Malampaya field to 357.7 million
standard cubic feet per day (MMSCFD) bringing total gas supply to 3.03 MTOE
in 2007, 19.9 percent more than the 2006 level. Local and imported coalcontributed 14.8 percent to the country’s total primary energy supply.
The decrease in hydropower production is attributed to El Niño phenomenon inmid-2007. Some hydro plants also undergo maintenance during the period.
Coal importation slightly inched up by 0.1 percent with the bulk coming fromIndonesia (72.0 percent) and China (13.5 percent). Indigenous production on theother hand recorded a significant increase of 44.4 percent.

IEEJ：2009 年 5 月掲載

Biomass remains an Comparative Primary Energy Supply (Fig. 1)
2007
important source ofKTOE% Shareenergy especially inIndigenous
21,967.28
55.69
the rural areas withOil & Oil Products
625.381.59
14.1 share of the total
Natural Gas
3,032.61
7.69
primaryenergy
Coal
1,795.12
4.55
supply in 2007. The
Geothermal
8,784.63
22.27
Hydro
2,132.18
5.41
share of renewable
Mhydro.
Solar&Wind
5.09
0.01
energy sources such
Biomass
5,560.74
14.10
as wind and solar
CME
31.53
0.08
energy to the primaryenergy mix is 0.01 Imported
17,477.59
44.31
Oil & Oil Products*
13,396.44
33.96
percent and grew by
Coal
4,079.17
10.34
8.3 percent from 4.70
Ethanol
1.98
0.01
ktoe in 2006 to 5.09
Total Primary Energy
39,444.87
100.00ktoe in 2007.
Self-sufficiency

55.69

2006
KTOE

Percent Inc./Dec.
% ShareIn KTOE

In % Share

21,464.50

55.40

2.34

0.52

559.25

1.44

11.82

9.83

2,529.44

6.53

19.89

17.76
41.81

1,243.32

3.21

44.38

9,000.14

23.23(2.39)(4.13)

2,474.78

6.39(13.84)(15.38)

4.70

0.01

8.30

6.37

5,652.33

14.59(1.62)(3.37)

0.54

0.00

--

17,277.32

44.60

1.16(0.64)

13,202.72

34.08

1.47(0.34)

4,073.19

10.51

0.15(1.64)

1.41

0.00

40.43

37.92

38,741.82

100.001.81-55.40In response to the * - Total = (+/-) Stock Change - Bunkering and Exports
government’sprogram using alternative fuels, CME accelerate a big leap from the previous
production of 0.54 ktoe to 31.53 ktoe in 2007. Similarly, ethanol register a 40.4
percent increase from 1.41 ktoe in 2006 to 1.98 ktoe in 2007.
Imported Energy
Imported fuels contributed 44.3 percent to the total primary energy supply andgained by 1.2 percent, from 17.27 mtoe in 2006 to 17.48 mtoe in 2007. Net oil
importation increased by 1.5 percent from 13.2 mtoe in 2006 to 13.4 mtoe in 2007
level. Likewise, coal imports increased by 0.1 percent from the 4.07 mtoe in 2006.
Final energy Consumption
Total final energy consumption reached 24,335.6 KTOE in 2007, registering a 7.3
percent increase in its 2006 level of 22,687.42 KTOE. On the per sector basis inthe year 2007, the transport sector remained the largest energy consuming sectorof the economy with 42.8 percent share, followed by the residential sector at 25.9
percent. Energy consumption of the industry sector represented 21.5 percent
share while commercial and agricultural sectors accounted for 8.2 percent and 0.6
percent, respectively.

IEEJ：2009 年 5 月掲載
III.

Difficulties in Energy Policy Formulation
1.

2.
3.
4.
5.
6.
7.
8.
9.
10.

IV.

2

Conflicting laws and policies, e.g. renewable energy law promotes theexploration of geothermal and hydro resources, while indigenous
people rights law protects the ancestral lands of these people.
Unfortunately, potential geothermal and hydro sources are located inancestral areas.
Investors lack of confidence to invest in energy business due toexcessive regulatory requirements.
Lack of political will in policy implementation.
Basically lack of necessary expertise in the field of energy, e.g., very
few nuclear engineers and energy engineers.
Manpower shortage in the field of energy. Most Filipino engineers
were employed abroad in pursuit of better financial considerations.
Poor education in the area of energy conservation.
Shift in priority initiatives due to changes in political management
Conflicting demands/interests of energy stakeholders
Difficulties in energy data gathering (for policy studies) due to lack of
manpower and budget (insufficient energy database)
Inadequate expertise on policy formulation (need to increase level oftechnical confidence in using energy modeling tools)
Policy Study Preference2

1.

Nuclear Energy Option – what are the indication that a country is
ready or mature enough to go for a nuclear option. Going nuclear is
not a mere executive decision, what legislative and regulatory policies
are needed in introducing nuclear energy? What are the safeguard
policies? What economic policies must be aligned or reviewed before anuclear option is pursued?

2.

Energy Efficiency and Conservation – in the Philippines, people
generally conserve energy only because of financial considerations.
Meaning, they conserve energy only because it is expensive. Whatpublic initiative or policy is needed to change this view? How can thegovernment create a successful EEC program? What is the effective
economic policy for EEC program?

3.

In year 2007, Semirara Coal Corporation’s production is 94 percent of
the country’s indigenous coal. This is equivalent to 48.3 percent of theStudy preference is the personal choice of the nominee. Study preference may change based on thediscussion/meeting with DOE management, regarding what policy study will be pursued during the training
course.

IEEJ：2009 年 5 月掲載
country’s coal supply (including importation). As of May 2008,
Semirara’s export has already reached the entire 2007 export level.
Considering the export growth level, it is inevitable that Semirara is
gearing towards exporting than using coal locally. In the meantime,
the country is importing more than 50 percent of its total coalrequirement. Based on experience, where is this trend going? Is thisgoing to be beneficial or detrimental in the Philippine government?
What government policy is needed here to protect the nation’sinterests?
4.

The Philippines is having difficulty in building data on energy
consumption. In the country’s annual energy balance table (EBT),demand is tabulated by sector. Data usually came from voluntarysubmission and most of the time, they are incomplete. The only
published, reliable and valid data on energy consumption by sector isthe residential, which is a product of the 2004 Household Energy
Consumption Survey. This survey was conducted by DOE andNational Statistics Office and the budget came from the DOE.
What initiative is needed to obtain this energy consumption data
regularly, which include all sectors laid down in the EBT? How Japan
collect its energy consumption data? What energy policy is needed toaddress this problem?

IEEJ：2009 年 5 月掲載

Attachment

Overall Energy Balance, in KTOE
Summary, FY 2007

Oil and Oil
Products

Indigeneous
Imports (+)
Exports (-)
Bunkering (-)
Stock Change (+/-)
Primary Energy Supply
Percent ShareOil Refining
Power Generation
Transmission/Dist. Loss (-)
Energy Own Use and losse
Net Domestic Supply
Statistical Difference
Final Energy Demand
Industry
Transport
Residential
Commercial
Agriculture
Non-Energy Use
Self-sufficiency

Microhydro,
Hydro
Biomass
Solar&Wind
2,132.18
5.09 5,560.74

Natural Gas

Coal

3,032.61

8,784.63
22.3%(8,784.63) (2,132.18)

Geothermal

8,784.63

CME625.38
15,651.17(2,285.48)(231.80)262.55
14,021.82
35.5%(258.07)(1,054.14)

3,032.61
7.7%

1,795.12
4,079.17
5,874.29
14.9%

31.53

(2,743.37)(3,971.97)(479.49)
12,230.12(193.12)96.12

1,902.32---

5,560.74

31.53

13,115.82
1,214.71
10,366.65
930.17416.41
91.82
96.06

77.37
77.37

1,419.43
1,238.05
181.38---5,560.74
1,302.85
3,954.74
303.14
-

31.53
3.22
28.31

Ethanol Electricity

21,967.27
19,732.32(2,285.48)(231.80)262.55
1.98
39,444.87
0.0%
0.0%
100.0%(258.07)
5,126.61 (13,564.76)(654.33)(654.33)(343.51) (1,016.12)
1.98 4,128.78 23,951.59(1.60)
1.98 4,128.78 24,335.64
1,396.53
5,232.73
1.98
9.24 10,406.17
1,408.30
6,293.21
1,272.35
1,991.90
42.36
134.19277.4455.69
1.98

2,132.18
5.4%

5.09 5,560.74
0.0%
14.1%

31.53
0.1%

(5.09)

Total
EnergyIEEJ：2009 年 5 月掲載

Overall Energy Balance, in KTOE
Summary, FY 2006

Oil and OilProducts

IndigeneousImports (+)
Exports (-)
Bunkering (-)
Stock Change (+/-)
Primary Energy Supply
Percent ShareOil Refining
Power Generation
Transmission/Dist. Loss (-)
Energy Own Use and losse
Net Domestic Supply
Statistical Difference
Final Energy DemandIndustry
Transport
Residential
Commercial
Agriculture
Non-Energy Use
Self-sufficiency

Microhydro,
Hydro
Biomass
Solar&Wind
2,474.78
4.70 5,652.33

Natural Gas

Coal

2,529.44

1,243.32
4,073.19

9,000.14

9,000.14 2,474.78
4.70 5,652.33
22.84%
6.28% 0.01% 15.70%

Geothermal

559.25
15,672.39(2,245.95)(125.82)(97.90)13,761.97
35.25%(317.88)(1,040.53)

2,529.44
6.42%

5,316.51
13.49%(2,310.35)(3,714.34) (9,000.14) (2,474.78) (4.70)(329.13)
12,074.43(193.15)26.0

1,602.18

-

-

0.00

11,728.34
1,566.65
8,358.37
915.95576.02239.52
71.83

52.56
52.56

1,324.42
1,175.08---

149.34

CME

Ethanol Electricity

0.54
1.41

0.54
0.00%

1.41

5,652.33

0.54

1.41

5,652.33
1,256.42
4,095.35
300.56
-

0.54

1.41

0.54

1.41

TotalEnergy

21,464.50
19,747.00(2,245.95)(125.82)(97.90)38,741.83
0.00%
100.00%(317.88)4,883.44 (13,661.40)(592.07)(592.07)(363.56)(885.84)
3,927.81 23,284.65
2.56
3,927.81 22,687.42
1,343.66
5,394.37
8.30
8,368.63
1,361.40
6,372.70
1,173.18
2,049.76
41.26
280.78221.1855.40

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