Meta Data
Draft: 
No
Revision of previous policy?: 
Yes
Effective Start Year: 
2016
Effective End Year: 
2040
Scope: 
National
Document Type: 
Plan/Strategy
Economic Sector: 
Power
Energy Types: 
All, Coal, Oil, Power, Gas, Renewable, Bioenergy, Geothermal, Hydropower, Solar, Wind, Other
Issued by: 
Department of Energy
Overall Summary: 
The Power Development Plan (PDP) 2016-2040 encompasses all subsectors - generation, transmission, distribution and supply; as well as the development of the market, other institutional support mechanisms and electrification roadmaps. PDP 2016-2040 includes the following sections: 1. Overview and Executive Summary. 2. Philippine Electricity Profile. 3. Five-Year Performance Assessment. 4. Demand-Supply Outlook 2016-2040. 5. Power Sector Roadmap. 6. Annexes.
Access
Energy access action plan: 
In the medium term, the DOE through NEA and the concerned DUs in Luzon and Visayas will achieve 100 percent household electrification through implementation of SEP, BLEP, NIHE and ER 1-94 EF Programs.
Energy access targets: 
For the 2017-2040 planning horizon, the electrification goals that will serve as guideposts for the sector are: (i) 90 percent household electrification by 2017; (ii) 100 percent electrification of targeted and identified household accessible to grid (based on 2015 Census) and accomplishment of off-grid targets by 2022; (iii) Electrification of all targeted and identified households (household beyond 2015 Census) and 100 percent electrification of target household in off-grid areas within the period 2023-2040 and (iv) total electricity access by 2040.
Efficiency
EE priorities: 
The sector shall utilize and invest in more efficient technologies such as the smart grid (e.g. prepaid electricity, etc.).
Energy Supply and Infrastructure
Energy supply priorities: 
The DOE will continue to encourage and facilitate the timely completion and commercial operation of power generation projects and increase the number of merchant power plants by formulating relevant policies and regulations that will enable full competition and improved transparency in the sector. DOE will also facilitate the declaration of power projects as projects of national significance under a legislative framework. By doing so, the tedious process for permitting and approval prior to the commercial operation of power generation projects will be streamlined and shortened; hence, the delivery of the much needed capacities to meet the country’s growing demand and minimize transaction costs. It also aims to address tax concerns of power companies to make the cost of electricity competitive. --- The DOE will formulate and implement a fair and transparent rewards-and-penalty system such as the causers pay policy to enforce accountability of power industry players for forced outages. --- Similar to the generation sector, DOE will likewise lead the conduct of regular performance assessment and benchmarking of transmission facilities and operations to address inefficiencies and system congestions. --- For the short to long-term period, the Department will continually focus on increasing the capacities of Distribution Utilities (DUs), particularly Electric Cooperatives (ECs), in formulating their respective Distribution Development Plans (DDPs). The DOE together with the National Electrification Administration (NEA) will continue to assist and supervise ECs on their institutional strengthening programs. The DOE will also continue to strengthen its coordination with the Energy Regulatory Commission (ERC) and formulate enabling policies and joint resolutions to facilitate the timely approval and implementation of distribution facilities through CAPEX provisions, among others, to further improve the services being provided by DUs to their customers and facilitate economies of scale in their operation. Likewise, the DOE will develop and monitor the accountability of DUs towards an improved operational efficiency and good governance.
Energy mix: 
As part of its major policy thrusts, the DOE is also set to prioritize the institutionalization of the appropriate power mix policy for power generation towards an optimal portfolio to meet 24/7 electricity demand and reserve requirement with spatial and sectoral dimensions.
Infrastructure development priorities: 
The DOE will closely monitor the implementation of the TDP as well as the Visayas-Mindanao interconnection which is targeted to be implemented by 2020. Similarly, the interconnection of the main grids and emergent island grids such as Mindoro is also envisioned to be implemented.
Governance
Energy management principles: 
Market Development and Institutional Support Mechanism: Develop policies and monitor compliance on: • WESM Design Improvements/NMMS • Appoint Independent Market Operator (IMO) • Privatization of NPC assets • policy for Embedded Generators • Establishment of Mindanao Electricity Market • Develop Roadmap, Policy Utilization for Smart Grid and other technologies • Renewable Energy Market (in line with RPS implementation) • Reserve/Energy Market Co-optimization • Demand Bidding in the WESM • Forwards Market/Financial Transmission Rights/Day-ahead market/Derivatives Market • Continue policy development to enhance Electricity Market ---
National policy structure: 
[...] the distribution sector shall move towards the transformation of its current system and infrastructure to an energy-resilient one by implementing enabling resiliency policies. --- Establish a coordinated monitoring strategy to ensure the attainment of 90 percent household electrification by 2017. One of the strategies is the provision of a monthly accomplishment report to keep track of program (including sub-program) accomplishments vs. targets. Issue a policy on the definition of electricity access to clarify issues and concerns on the definition of energized/electrified households in grid area and in off-grid areas.
Energy institutional structures: 
Institutional cooperation among DOE, NEA and NPC will also be strengthened to ensure the expeditious formulation of policies and maximization of their individual and interdependent roles in assisting Electric Cooperatives during power supply contracting especially in the conduct of Competitive Selection Process (CSP), improving SPUG power system facilities and associated delivery systems and bringing the operations in missionary areas to commercial viability levels.
M&E of policy implementation: 
The DOE has initiated and will continue to conduct its daily monitoring of power situation along with regular performance assessment of power generation companies to determine and remove bottlenecks and inefficiencies in their operations. This will serve as the basis for benchmarking and identification of appropriate policies for the generation sector.
Statistics collection and management: 
Among others, the priorities are: [...] 3) establishment and maintenance of the DOE’s Electric Power Database Management Systems that would support the various policy initiatives providing analysis and numerical basis; --- Throughout the succeeding years, a Missionary Electrification Database System will be implemented that will include, among others, information from the reportorial requirements of ECs and Generation Companies as well as relevant data from NPC and NEA. --- Establish an efficient monitoring system such as: 1) household electrification information system (HEIS) that will address potential duplication of beneficiaries and 2) nationwide off-grid database that will serve as baseline and target of all off-grid electrification program of the Government.
Technology
Clean energy technology priorities: 
In the medium to long term, the DOE will encourage and facilitate the entry of new and emerging power generation options such as nuclear technology, energy storage technologies, fuel cells and ocean thermal energy conversion (OTEC), among others. To make this happen, the DOE will establish strong cooperation among government line agencies such as the Department of Science and Technology (DOST) and Philippine Nuclear Research Institute (PNRI) and reinforce partnership with private research institutions which undertakes research, development and demonstration (RD&D) on energy technologies.