PHILIPPINES: Philippine Energy Plan (PEP) 2007-2014

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2007
Effective End Year: 
2014
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Multi-Sector
Energy Types: 
All, Power, Renewable, Other
Issued by: 
Senate of the Philippines
Source: 
Department of Energy
File: 
Philippine Energy Plan 2007-2014
Overall Summary: 
The Philippine Energy Plan (PEP) 2007-2014 provides specific directions for the accelerated exploration and development of indigenous energy resources in the Philippines. The PEP is an affirmation of the state’s commitment to pursue the energy independence agenda under the Government’s Five-Point Reform Package. The energy sector’s agenda focuses on attaining a sustainable 60.0 percent energy self-sufficiency beyond 2010 and promoting a globally competitive energy sector.
Access
Energy access action plan: 
Power development Action Plan: 􀂇 Strengthen and establish more partnerships with other potential partners such as NGOs and private institutions to fast-track electrification activities in highly remote barangays. 􀂇 Address the issues on disbursements, funds availability and any legal impediments to a partnership or joint undertaking for rural electrification projects/programs. 􀂇 Formulate a special implementation strategy and subsidy scheme for the remaining unelectrified barangays in Mindanao. Such could be implemented through the inclusion of “social preparation fund” in the total project cost, as well as creating partnerships or linkages between and among the relevant government agencies including LGUs, NGOs, and private institutions. 􀂇 Strengthen DOE collaboration with the private sector in addressing the accessibility problem of those barangays located in remote areas. The SSMP is being considered by the private sector as another approach to energize inaccessible barangays.
Efficiency
EE action plans: 
Energy Efficiency and Conservation Action Plan: 􀂇 Pursue the passage of the Energy Conservation Bill into law. [...] 􀂇 To fill in the gap in the implementation of utilitybased demand side management (DSM), marketbased application under the Demand Reduction Program will instead be promoted. Meanwhile, existing policy framework for utility-driven DSM will be reviewed, as well as new set of recommendations will be submitted to concerned stakeholders for consultation to provide new policy directions. 􀂇 Evaluate the impact of IEC programs in the household sector through contracted survey services under the auspices of the National Statistics Office (NSO). [...] 􀂇 Intensify promotion of Heat Rate Improvement in power plants. [...] 􀂇 Expand promotion of the Energy Efficiency and Conservation Program and Energy Consumption Monitoring in large seaborne vehicles such as passenger and cargo ships, power generating plants and power distribution utilities.
EE lighting and mechanical system standards: 
􀂇 Pursue the inclusion of standardized technical specification requirement in the procurement process of energy efficient lighting systems and other electrical equipment and devices in government offices e.g. the use of 36-watt instead of 40-watt CFLs and the use of energy-efficient LCD computer monitors. This shall be recommended to the Department of Budget and Management (DBM). 􀂇 Strengthen product testing and research through enhanced testing capability of DOE-Lighting and Appliance Testing Laboratory incuding the establishment of a luminaire testing facility using a goniophotometer. This testing apparatus, which is the first of its kind in the Philippines will be used in the testing of luminaires, directional lamps and street lamps to determine and recommend better efficient lighting designs for office buildings and street lighting. 􀂇 Conduct of inventory of legitimate and accredited testing laboratories to encourage the private sector to venture into setting up of independent and competent testing laboratories.
EE labeling: 
􀂇 Establish energy label for all brand-new vehicles relative to the fuel mileage rating.
EE building standards: 
􀂇 Develop a benchmark in the commercial and government buildings including the manufacturing industry sector.
Energy Service Companies (ESCOs): 
􀂇 Promote and establish accreditation of ESCOs.
Renewable Energy
RE action plans: 
Geothermal Action Plan: As part of government’s bid to becoming the world leader in geothermal energy, the following strategies shall be carried out to advance its exploration, development and utilization: 􀂇 Conduct further assessment of geothermal prospective fields to identify sites that can be offered in the PECR. 􀂇 Monitor closely the exploration and development of awarded geothermal areas. 􀂇 Conduct reservoir and production studies for optimized utilization of geothermal resources in existing power plants. Optimization projects shall likewise be encouraged from the service contractors. 􀂇 Pursue optimization of low-temperature geothermal energy by promoting the cascading scheme of development through the project: “Resource Assessment of Low-Enthalpy Geothermal Resources in the Philippines.” [...] Pursue the implementation of the Memorandum of Agreement (MOA) between DOE, PNOC and the local government of Puerto Princesa, Palawan. 􀂇 Enhance policy framework in the development of geothermal energy through the following policy initiatives:  Formulation of a Department Circular (D.C.) for the direct use of geothermal energy for non-power applications  Seek Department of Justice (DOJ) Opinion on possible review of P.D. 1442, “An Act to Promote the Exploration and Development of Geothermal Resources,” allowing 100 percent foreign equity participation in geothermal projects. --- Hydropower Action Plan: Administer R.A. 7156 (Mini- Hydropower Law) with enhanced participation of the Market Service Center (MSC) created under the Capacity Building to Remove Barriers to Renewable Energy Development (CBRED) project. --- Biomass, Solar, Wind Action Plan: 􀂇 Conduct promotion activities on the development and utilization of biomass, solar and wind resources. 􀂇 Continuous conduct of detailed wind resource assessment 􀂇 Offer the feasible sites identified under the detailed resource assessment through wind contracting rounds. --- Biofuels Action Plan: 􀂇 Address supply sustainability issues through enhanced research and development activities for other potential feedstock of biofuels in cooperation with concerned government agencies and academic institutions. 􀂇 Develop standards for higher biofuel blends and test protocols for multi-blends to set the benchmark for future mandates. 􀂇 Intensify IEC and market development of biofuels nationwide to obtain greater support from different sectors. 􀂇 Issue guidelines for the accreditation of new biofuels producers as well as on the production, handling, transport and storage of biofuels to protect the industry from any malpractices and irregularities. 􀂇 Conduct continuing study on the effects of using higher blends of biodiesel to determine potential damages to vehicles. 􀂇 Expand utilization of biofuels in power plants, industries and other modes of transport. 􀂇 Create a One-Stop Shop Action Center/Satellite Offices to assist investors on biofuels.
Biofuels obligation/mandate: 
􀂇 Increase biodiesel blend by 3.0 to 5.0 percent in 2011. 􀂇 Conduct cost benefit analysis of biofuel blend ratios for power plants and marine transport. 􀂇 Conduct durability test for engines and parts of all diesel-fed vehicles that will run on increasing biodiesel blend. 􀂇 Increase bioethanol blend by 10.0 percent in 2011. 􀂇 Prioritize promotion of flexi-fuel vehicles since these can cope with higher fuel ratios of bioethanol. 􀂇 Intensify IEC programs to attract prospective investors.
Environment
Energy environmental priorities: 
􀂇 Continue to collaborate with energy project proponents and concerned local government units to address social acceptability issues of energy projects. 􀂇 Strengthen participation in various inter-agency activities on environmental issues. 􀂇 Pursue the development of an energy-environment database system of power projects to serve as DOE’s monitoring and policy decision-making tool on energy-environment issues. 􀂇 Implement climate change programs, projects and activities like mitigation mechanisms, vulnerability assessment of energy projects and facilities, energy efficiency projects and IEC campaigns, among others.
Energy Supply and Infrastructure
Energy supply priorities: 
The 2007 Plan Update focuses on the sector’s goals of increasing the country’s oil and gas resources by 20.0 percent at the end of the planning period and increasing local production from other indigenous energy sources. Increasing production from indigenous hydrocarbon resources is a major pillar of the nation’s energy independence agenda. --- The DOE will pursue activities to increase indigenous coal production to meet the growing demand for coal by the power generation sector and manufacturing industries. --- Downstream Energy Industry: 􀂇 Develop the Malampaya oil rim for the country’s national reserve as a contingent measure in the event of oil crises or supply disruption. 􀂇 Diversify supply sources by strengthening bilateral supply agreements with non-traditional suppliers to avert over dependence on major suppliers. 􀂇 Encourage infrastructure development through the provision of Gasoline Station Lending and Financial Assistance Program (GSLFAP) to new players in the liquid fuels sector and consequently promote healthy retail competition. The Program is being implemented in cooperation with the Philippine Amusement and Gaming Corporation (PAGCOR) and the Development Bank of the Philippines (DBP). PAGCOR ensures the availability of funds to prospective oil players interested to avail of the Program through the DOE while DBP-Trust Services administers the loan fund. 􀂇 Enhance consumer safety and welfare through the development of an LPG Cylinder Exchange Program to address the growing proliferation of sub-standard and dilapidated LPG cylinders in the market. This is to promote accountability and responsibility on the part of the brand owners to maintain their own cylinders in accordance with set standards. The Program will likewise enforce standards/rules and regulation through appropriate policy interventions such as the Retail Rules for LPG and the proposed LPG Bill. 􀂇 Study the feasibility of establishing a National Petroleum Strategic Reserve in 2010 by putting in place the necessary fuel stockpile infrastructures and the actualization of oil discovery prospects. 􀂇 Develop and improve standards for products and facilities and enhance monitoring/enforcement of compliance with the standards to ensure adherence of industry players to the Retail Rules. 􀂇 Establish quality standards and an inspection/ sampling mechanism for diesel/gasoline preblended with bio-fuels. 􀂇 Formulate appropriate policy intervention to promote the use of pipeline for household LPG in the development plan of new areas and emerging communities. --- Natural gas Action Plan: The energy sector will therefore pursue the following activities, plans and programs: Infrastructure Facilities Network: 􀂇 Form strong public-private partnerships for the development of the natural gas industry, particularly on the identified infrastructure projects as follows (with corresponding indicative year of completion and operation): [...] Market Development: 􀂇 Prioritize the use of natural gas to fuel the additional capacity requirements in the power sector starting in 2010 for Luzon, as well as mandate the conversion of oil-thermal plants such as Sucat and Limay to be fueled by natural gas. 􀂇 Promote the expanded use of natural gas in transport, industry, buildings and agriculture in 2010. Manpower Capability Building 􀂇 Establish a Philippine Natural Gas Institute to serve as a policy think-tank center for natural gas. However, it could start as the national training center and venue for workshops, conferences and trainings on the operation of natural gas facilities. The Institute shall supply the manpower requirement for the industry. 􀂇 Introduce courses including a Bachelor of Science in Natural Gas Engineering in 2010. IEC Campaign: 􀂇 Harness multimedia technology and strategy e.g. television, radio and print ads, for faster and wider circulation of information on the natural gas program of the government.