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Philippines

Official Name:
Republic of the Philippines

National Designated Entity

Type of organisation:
Government/Ministry
Name:
Mr. Emmanuel M. De Guzman
Position:
Vice Chairman and Executive Director
Phone:
(632) 522-8954
Emails:
osec.ccc.ph@gmail.com

Energy profile

Republic of the Philippines (2014)

Type: 
Energy profile
Energy profile
Extent of network

The Philippines consists of several islands, the larger of which are the islands of Luzon, mainland Mindanao, and the six largest islands in the Visayas (Cebu, Negros, Panay, Bohol, Leyte, and Samar). These eight dominant islands constitute the major electrical systems of the country with a combined power demand of around 7,000 MW.At present, the main islands in the Visayas are interconnected to each other with limited transfer capacity. The interconnected grid is linked with the Luzon grid to effectively share the reserve capacity of the system. The Mindanao grid remained isolated from the rest of the system until 2004, when a 500 MW, 436 km HVDC connector was constructed between Leyte and Mindanao.The economy’s barangay (a village, district or ward, i.e. the basic political unit) electrification level rose from 99.85% in June 2010 to 99.89% as of end of December 2010.Among the major islands, in 2010 Visayas had already reached the 100% electrification level, while Luzon’s was recorded at 99.87% and Mindanao’s at 99.82% for the same period.In view of the Philippines’ complex geographical system, the economy faces a continuing challenge in attempting to achieve 100% household electrification. Hence, the government, through the DOE and other energy stakeholders, spearheads the development of various innovative service delivery mechanisms designed to increase access to electricity services.

Renewable energy potential

On the whole, achievements in increasing renewable energy capacity have been modest. As of end-2011, the share of new and emergent renewable energy plants in the country increased by only 0.60% from 2007 (to 0.72%), even as imported oil and coal plants maintained their share in the energy mix (at 49%) over the same period.HydroThe Philippines derives 3,367 MWh from its hydro resources, partly through five mini-hydro power contracts. Eleven hydro-power plants with a total capacity of 300 MW are being developed. The abundance of water resources makes hydropower an important part of the energy sector. However, the large up-front investments, long construction periods and related environmental concerns have tarnished some of its attraction. Hence, the government focuses on small hydro. The Department of Energy (DOE) estimates the potential for small hydro is roughly 1,300 MW. Plans from the DOE estimate an increase in hydropower capacity to 5,468 MW, an increase which is expected to provide 7.7 TWh of additional electricity generation per year, equivalent to a fuel oil displacement of 12.9 million barrels of fuel-oil equivalent (MMBFOE). The potential for utilisation of wave/OTEC power sources has been assessed by the Mindanao State University, with a theoretical potential of 170,000 MW to be found within the archipelago's significant ocean territory.Wind energyDespite minimal use of wind energy in the Philippines, potential is strong. A wind mapping survey estimated that the Philippines could potentially generate 70,000 MW from the available wind resource. The survey identified 47 provinces, with the potential to generate at least 1,000 MW each. Average wind power density across the country is estimated at 31 W/m2. The wind resource is greatest in the north and north-east of the country. Areas that face east towards the coast from Luzon to Samar also represent good-to-excellent wind resources for utility-scale, and excellent wind resources for village-scale, applications. Less potential exists in the south and south-west of the archipelago. Existing use of wind generation includes a 10 kW stand-alone system that provides electricity to 25 households. Batangas Province has a 25 kW stand-alone system with six different loads. A 3 kW wind-diesel system is also in use for a telecommunications relay station. A 25 MW wind farm was inaugurated in June 2005 at Bangui Bay, Ilocos Norte, which is the first wind farm to be fully operational in the Philippines, and the largest in South-East Asia.Solar energyThe Philippines has one of the longest histories with PV systems in Asia. The majority of its programs have been aid-driven, with mixed results. Whilst the technical potential is present, prohibitive costs and grid extension of conventional electricity hinders the commercial potential of solar home systems. Average insolation across the country ranges from 4.5 to 5.5 kWh/m2/day. Current utilisation is low, however, due to factor, including low public image of the technology, as well as lack of technical and maintenance capacity. Installed capacity in 2000 amounted to 567 kW. Stimulus was received for the technology in 2004, with the opening of the Sunpower Solar Wafer Fabrication Plant, which was expected to provide 30% of its supply to local markets, driving down prices for PV significantly.BiofuelsThe Philippines is said to be one of the largest producers of coconut products, where approximately 26% of the country’s agricultural land (or 3.56 Million hectares, by 2010) is planted with coconut trees. The country has indeed further wisely utilized this resource to produce a “green”source of fuel-the coco-biodiesel. The Philippines has started producing coco-biodiesel, or coconut methyl ester (CME), as an effort for cleaning our air and energizing our economy. Coco-biodiesel is a type of bio-fuel derived from coconut oil, and can be used alone, or blended with petro-diesel, to run diesel engines.Geothermal energyGeothermal continues to be the major indigenous resource of the economy, with a 22.5% share of its total indigenous primary energy supply in 2009. It is used solely for power generation. With a total installed capacity of 1958 MW, the Philippines is the second largest producer of geothermal energy in the world. The economy aims to be the number one producer, and the government continues to encourage greater private sector involvement in the exploration and development of the economy’s vast geothermal energy potential.

Energy framework

National Renewable Energy Program (NREP)Under the state’s National Renewable Energy Program (NREP), the DOE seeks to increase the RE-power based capacity of the country to 15,304 MW by year 2030, or three times the 2010 capacity-level. On a per technology basis, the NREP seeks a 75% increase in geothermal capacity, 160% increase in hydropower capacity, 277 MW additional capacity in biomass power, wind power “grid parity” with the commissioning of 2,345 MW additional wind capacity, an additional 248 MW of solar power capacity (plus an “aspirational” solar target of 1,528 MW of additional capacity), and to developing the first ocean energy facility for the country. As a critical milestone to meeting these targets, 2,155 MW of additional capacity must be installed by 2015, according to the NREP.Energy Plan 2012-2030The Energy Plan 2012-2030, which the DOE launched in December 2012, lays down the roadmap for future demand and capacity addition plans. As per the plan, the current installed capacity in the country of about 16,250 MW is expected to go up to 25,800 MW (an increase of about 60% by 2030). Specifically, the objectives of the Plan are as follows:expand energy accesspromote a low-carbon economyclimate-proof the energy sectordevelop regional energy planspromote investments in the energy sectoridentify and implement energy sector reforms.These policy objectives are supported by specific quantifiable targets to be achieved by the end of 2030, the most prominent of which include:triple renewable energy capacity by 2030;achieve 90% household electrification by 2017 and 100% energisation at “sitio” level (an administrative-territorial category in the Philippines) by 2015;have 30% of all public utility vehicles running on alternative fuels;implement a higher blend of biofuels; and,achieve 10% energy savings on total energy demandThe Philippines Department of Energy has put forward long-term energy plan targets through its National Renewable Energy Program, aiming to triple its renewable energy capacity base to 15,304 MW by 2030. More specifically, these targets are differentiated by technology, and include hydro (8,724 MW), geothermal (3,461 MW) and wind (2,378 MW). This would signify an increase in renewable energy capacity of 9, 865.3 MW, increasing the total shares of hydro by 5,394.1 MW, geothermal by 1,495 MW, and wind by 2,345 MW, based on 2010 figures.The Philippines has implemented minimum energy performance standards for air conditioners, compact fluorescent lamps, and linear fluorescent lamps, and plans to expand the capacities for testing laboratories for televisions, washing machines, and refrigerating equipment. Various initiatives related to energy savings in the residential and commercial sectors have been successful; examples include the ADB-led phase-out of incandescent lamps, the IFC-supported efficient lighting initiative program, the GEF/UNDP-supported efficient lighting market transformation program, and the government energy management program.The passage of the Biofuels Act of 2006 (RA 9367), was a major policy leap toward harnessing the economy’s domestic alternative energy resources.The introduction of alternative fuels in the Philippines provides a feasible option for minimizing the effects of continuous increases in the price of crude oil in the world market, and of worsening environmental conditions. In implementing the Act, the DOE, under its Biofuels Programme, accredited a total of 13 biofuel producers (nine for biodiesel and four for bioethanol) in 2011.The biofuels programme of the Philippines hopes to create market awareness for alternative energy projects in collaboration with various industry stakeholders. In addition, as the transport sector accounts for the greatest share of demand in the economy’s total consumption, it plans to pursue efforts to forge partnerships with academic and research institutions to conduct on-road performance and durability tests for a higher biofuels blend for vehicles.

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