Phl needs P3.1-trillion investments in power generation – DOE

MANILA, Philippines - The Philippines needs around P3.1 trillion in investments for power generation projects to make it energy sufficient by 2030, the country’s top energy official said.

Both private sector and government should work together to put up necessary infrastructure, and power production and delivery projects, Department of Energy (DOE) Secretary Carlos Jericho Petilla said.

“A minimum of P3 trillion will be required to put up the necessary production and logistical network to ensure availability and continuous supply of all forms of energy in the economy,” he said at the launching of the Philippine Energy Plan (PEP) 2012-2030.

“We envisioned a more secured energy sector, less energy intensive economy, more efficient and sustainable energy systems and facilities and reduced dependence on oil importation,” Petilla said.

Under the PEP, the indicative investment cost for various energy projects is P3.174 trillion until 2030.

Of these, P1.212 trillion will be spent for downstream natural gas supply; P959.7 billion for alternative fuels; P556.7 billion for renewable energy projects; P397.1 billion for power generation projects; and P48 billion for upstream resource development.

Indicative projects are under different stages of project development like feasibility studies and are still subject to financial closing.

Petilla said a secured future for the country’s energy needs require an increase in power generation capacities, an interconnected transmission system, a reliable distribution network through electric cooperatives and timely implementation of downstream energy infrastructures particularly for natural gas.

For power generation projects, the DOE estimated an additional requirement of 29,329 megawatts (MW) of installed generation capacity by 2030.

To date, the country has an installed generation capacity of 16,163 MW, data from the DOE showed.

Energy consumption is expected to continuously increase due to higher per capita income and a robust economic growth.

The PEP’s thrust is to ensure energy security, expand energy access, promote low-carbon future, climate proof the energy sector, promote investment in the energy sector and develop regional energy plans.

To support the private sector, Petilla said the DOE will create the Geographic Energy Plan (GEP), which outlines clustered regions’ potential energy sources that can be harnessed to address specific, area-based energy issues and concerns.

“The GEP will be developed in consultation with the Regional Development Councils and complement the Regional Development Plans,” Petilla said, adding that it will also be an opportunity to assist local government units in mainstreaming energy planning.

Specifically, the DOE will launch early next year the launch the Mindanao GEP, which will contain the policy and program framework for a sustainable solution to Mindanao’s power supply problems.

The Mindanao grid has been reeling from rotating blackouts since early this year due to supply shortfall and the shutdown of key power plants.

Other GEPs are scheduled to be launched in 2013 to 2014 for the Visayas, Northern and Southern Luzon.