IEEJ: August 2012 All Right Reserved

IEEJ : June 2012

Philippines Country
Presentation
Energy Policy Course
Tokyo, Japan
4 June 2012

Michael O. Sinocruz
Department of Energy

IEEJ: August 2012 All Right Reserved

Presentation Outline
 General Information on Philippines Current Energy Policy and Measures
 Fossil Fuels
 Clean Energy
 Fuelling Sustainable Transport Program Energy Efficiency and Conservation
 Energy Demand and Supply Energy Demand and Supply Outlook
 Challenges in Policy Formulation
 Subjects to be Studied

IEEJ: August 2012 All Right Reserved

General Information onthe PhilippinesIEEJ: August 2012 All Right ReservedGeneral Information
Philippines

 Located in Southeast Asia
 Total land area of 300,000 km2
 Composed of 7,107 islands anddivided into three (3) main islands –Luzon, Visayas and Mindanao
 Has 17 administrative regions, 81
provinces, 118 cities, 1,510
municipalities and 41,995 barangays
 Population density is 270
persons/km2
 National language is Tagalog
 Economy grew 7.6 percent in 2010
 2010 Real GDP is US$34,170 million(at constant 1985 prices)IEEJ: August 2012 All Right Reserved

Current Energy Policyand Measures

IEEJ: August 2012 All Right ReservedCurrent Energy Policyand Measures
 The Department of Energy (DOE) crafted the Energy Reform
Agenda (ERA) Key thrusts of the ERA are:
– Expanding the use of renewable energy– Accelerating petroleum and coal exploration through thePhilippine Energy Contracting Rounds (PECR)– Making energy efficiency a way of life for Filipinos– Strict monitoring of oil and electricity price and supply– Promoting the use of clean alternative fuels and technologies– Improving transport sector efficiency– Vigilant monitoring and supervision of energy sector reforms

IEEJ: August 2012 All Right Reserved

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

EnsureEnergy Security

Achieve Optimal
Energy Pricing

Develop a
Sustainable
Energy System

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Fossil Fuels
 Oil and Gas
 16 sedimentary basins Potential of 4,777 million barrels of fuel oil equivalent(MMBFOE) or 689.8 million tons of energy (MTOE) of oil andgas reserves
 28 Service Contracts (SCs) are continuously monitored which isa result of the Philippine Energy Contracting Round (PECR) Coal 13 coal basins Total resource potential is 2.4 billion metric tons (BMT) To date, there are 60 coal operating contracts (COCs) – 29(exploration) and (31 development and production)IEEJ: August 2012 All Right Reserved

Clean Energy
 Renewable Energy
 In December 2008, RA9513 or the “RenewableEnergy Act of 2008” wassigned
 Launched the NationalRenewable
EnergyProgram (NREP) in 14
June 2011. The NREP
targets 15,000 MW total
installed capacity by2030

RE Resource

Capacity (in MW) asof 1st Sem 2011

Hydropower

3,535.0

Geothermal

1,902.0

Wind33.0

Biomass

54.0

Solar

1.0
TOTAL

5,525.0

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Clean Energy
Type ofTechnology

Estimated Capacity
Committed

Indicative

Potential

Total

Hydropower

27.80*

407.004,535.94

4,970.74

Geothermal

90.00

200.001,165.00

1,455.00

145.002,205.00

2,350.00

190.30107.60320.90

Solar284.05

284.05

Ocean

70.50

70.50

8,368.09

9,451.19

WindBiomass

TOTAL

23.00**

140.80* Includes off-grid hydro committed projects** includes own-use (6-MW)

942.30IEEJ: August 2012 All Right Reserved

Clean Energy Natural Gas
 In January 2011, DOE granted a Permit-to-Construct for thePagbilao Liquefied Natural Gas (LNG) Terminal and Power
Project Sectors that are main consumers of gas – power, industrial andtransportation
 JICA has updated the Master Plan Study for the Development of
the Natural Gas Industry in the Philippines As a complement to the JICA study, the World Bank isconducting a study to supply natural gas in Mindanao

IEEJ: August 2012 All Right Reserved

Fuelling Sustainable Transport
Program Biofuels The country has put in place RA 9367 or
the “Biofuels Act of 2006”
 Mandated 1.0 percent biodiesel blend in2007 and this was increased to 2.0 percent
in 2009. Bioethanol blend at 10.0 percent(August 2011) from 5.0 percent in 2009 Compressed Natural Gas (CNG) There are 61 CNG buses in the country ofwhich 41 are running and plying theroutes of Southern Luzon and Manila.
 By 2030, government targets to increase
the number of CNG buses to 15,000 unitsIEEJ: August 2012 All Right Reserved

Fuelling Sustainable TransportProgram Auto-LPG
 18,731 converted taxis as of 1st half 2011 The Development Bank of the Philippines (DBP) has included
the Auto-LPG initiative in its Clean Alternative Transport FuelFinancing Program Electric Vehicle (EV) To date, 630 EVs are being demonstrated nationwide
 Government targets to have 180,000 e-tricycles nationwide by2030

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Energy Efficiency andConservation
 National Energy Efficiency and Conservation Program (NEECP) Resulted to energy savings of 27.48 MMBFOE in 2011 Sub-programs under the NEECP include the following:Recognition Awards through the Don Emillio Abello Energy
Efficiency Awards (DEAEEA)
Government Energy Management Program (GEMP)
Energy Efficiency and Labeling Program
Energy Audit Services
Philippine Energy Efficiency Project (PEEP) The Bright Now! Do Right, Be Bright Campaign was launched inDecember 2011 to educate and empower Filipinos to be smart
energy users.

IEEJ: August 2012 All Right Reserved

Energy Efficiency andConservation
 JICA is currently conducting the Development Study on Energy
Efficiency and Conservation for the Philippines Government targets 10.0 percent savings on total annual energy
demand of all economic sectors from EE & C

IEEJ: August 2012 All Right Reserved

Energy-Economy Indicators
2009

Economic Parameters

2010
Actual
5,297.2

5,701.5

Growth Rate (in percent)

1.1

7.6

Population (in million)

91.1

92.3

Forex (PhP/US$)

47.6

45.1

Crude Cost ($ per barrel)

61.7

78.1

GDP (in billion PhP)

EnergyActual
38,748.2

39,741.9

-2.9

3.3

22,816.4

23,756.0

1.6

4.1

97,605.1

106,224.1-1.6

8.861,934.4

67,742.8

Growth Rate (in percent)

1.8

9.4

Emission

ActualPrimary Energy Supply (in KTOE)
Growth Rate (in percent)Final Energy Consumption (in kTOE)
Growth Rate (in percent)Oil Supply (in MB)
Growth Rate (in percent)Electricity Generation (in GWh)

CO2 Emission (MTCO2 e)

69.1

74.1

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Energy Supply andDemand

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Energy Demand and Supply
2010 Total Primary Energy Supply

Total Energy – 39.27 MTOE
SharesSelf-sufficiency – 58.52%
Green Energy – 47.0%
RE – 39.2%

Biomass Breakdown
Industry – 20.9%
Residential – 72.7%
Commercial – 6.4%

IEEJ: August 2012 All Right Reserved

Energy Demand and Supply

Final Energy Consumption by Sector (in MTOE)IEEJ: August 2012 All Right Reserved

Energy Demand and Supply
2010 Installed and Dependable Capacity
Philippines
Plant TypeCapacity
Installed

Percent Share

Dependable

Installed

Dependable

Coal

4,867

4,245

29.75

30.53

Oil-based

3,193

2,488

19.52

17.90

Natural Gas

2,861

2,756

17.49

18.83

Geothermal

1,966

1,350

12.02

9.71

Hydro

3,400

3,021

20.78

21.73Wind33200.200.14

Solar110.010.01

Biomass

39200.24

0.15

16,35913,902TOTALIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
2010 Power Generation Mix

Total Generation = 67,742
GWh
Shares:Self-sufficiency
Green Energy
RE= 62.9%= 55.12%= 26.31%IEEJ: August 2012 All Right Reserved

Energy Supply andDemand Outlook

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Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Energy Demand and Supply
OutlookIEEJ: August 2012 All Right Reserved

Challenges in Policy
Formulation andSubjects to be Studied

IEEJ: August 2012 All Right Reserved

Challenges in Policy Formulation
 Energy policies are sometimes not considered asnational priority
 Lack of studies to support formulation of a proposedenergy policy

IEEJ: August 2012 All Right Reserved

Subjects to be Studied Implementation of the Alternative Fuels Program Energy Efficiency and Conservation Policy Renewable Energy Nuclear Energy

IEEJ: August 2012 All Right Reserved

Philippines Country
Presentation
Energy Policy Course
Tokyo, Japan
4 June 2012

Michael O. Sinocruz
Department of Energy
Contact : report@tky.ieej.or.jp