ENERGY – Strategic Decisions 2016-2030

The European Chamber of Commerce of the Philippines (ECCP) has had energy/energy efficiency/clean energy/renewable energy on its agenda for years. Without  adequate supply of quality energy at competitive prices, business – and subsequently the economy – will suffer.

ECCP is organizing the next Energy SMART Visayas Congress in Cebu on 13 October. In this context, it makes sense to prepare ourselves for this interactive event and have a look at the strategic directions for the 2016-2030 Philippine Energy Plan Update:

Ensure Energy Security

Energy security will continue to be the prime focus of the Department of Energy (DOE). It is the DOE’s commitment to improve reliability, availability and resiliency of energy infrastructure and facilities. The DOE sees a “one grid Philippines”, aiming to connect the Mindanao grid with the Visayas and Luzon grids. The DOE continues to explore and use local or indigenous sources of energy like renewable energy and natural gas.

Expand Energy Access to Ensure Affordable, Reliable, Sustainable and Modern Energy for All

Access to electricity is an urgent requirement of the country as the Duterte Administration seeks to alleviate poverty in the countryside. The DOE will update and implement roadmaps on power, such as the Power Development Plan (which comprises the Transmission Development Plan, Distribution Development Plan, Missionary Electrification Development Plan and Household Electrification Development Plan). The target is to achieve full electrification of households in the three major islands.

Promote a Low Carbon Future

As the DOE continues to explore and develop all available energy resources, the DOE is also considering the reduction of our greenhouse gas emissions in preparation to the vision of a low carbon economy. In line with this, the DOE is working on policy issuances such as the fuel mix policy and expanding the renewable energy capacity by 2030.

Encourage Investment in Infrastructure and Facilities

To secure the appropriate investments from prospective investors, the DOE will plan for and build the portfolio of installed and dependable power capacities specifically for baseload, mid-merit and peaking requirements. The DOE’s downstream natural gas industry also needs a boost in terms of infrastructure development, specifically LNG.

Pursue  Development  and  Implementation  of  Local  Energy  Plans  in  Support  of  Regional  Economic

Development Plans

To bring energy planning to the grassroots level, the DOE will formulate and update the Philippine Energy Plan and regional energy plans, and encourage multi-sectoral involvement in the development of the plans.

Implement and Monitor Sectoral Roadmaps and Action Plans

In order to have a more pragmatic approach to the various energy plans and programs, the DOE will implement as well as monitor the various sectoral roadmaps and action plans that include alternative fuels, energy efficiency and conservation, resource development, renewable energy, downstream oil, gas and coal, power and electrification, and ICT for energy.

Advocating the Passage of the DOE’s Legislative Agenda

The DOE will advocate for the passage of the energy sector’s legislative agenda which includes among others energy efficiency and conservation, natural gas, liquefied petroleum gas and energy projects of national significance. Moreover, the review of existing laws such as EPIRA, Downstream Oil Products and Renewable Energy will be carries out.

Important is the Visayas Demand and Supply Outlook 2016-2030:

There are only power projects in the Visayas up to 2018. During peak months in the Visayas, which occur during the last quarter of the year, the existing power plants and the committed projects may not be enough to meet the contingency reserve requirement particularly from 2018 onwards. This is due to the large solar capacities in the Visayas which are expected to have lower output during the second half of the year. These power gaps can be sourced from Luzon which has lower demand during the second half of the year. However, it has to be born in mind that Luzon – during the last few months – lived to yellow and red alerts, meaning that the power reserve was inadequate.

The Summary of Visayas Power Projects (as of 30 July 2016) shows:

The Visayas has a total of 606 MW committed, 30 percent are renewable sources with more solar coming in until 2018 with a total capacity of 115MW of 19 percent. Meanwhile, coal will have a 69 percent share.

In terms of indicative projects, there are 2,590 MW in the pipeline, of which 65 percent are renewable energy: 321MW or 12 percent solar and 1,139 MW or 44 percent wind.

See you on the 13th of October at Energy SMART Visayas!!!