NOTES ON The Medium-Term Philippine Development Plan for the Period 2004-2010: Energy

Energy




Situationer Ways forward.

The 4 areas of infrastructure activities within the energy sector are:

(1) energy resource development;

(2) installation of power generating facilities;

(3) electrification, and

(4) downstream activities.



The country’s self-sufficiency level was expected to rise from 43.50 percent in 1999 to 49.40 percent in 2004 mainly through natural gas production in the Camago-Malampaya offshore field. Meantime, new and renewable energy (NRE) sources, geothermal and hydro will continue to account for the bulk of domestic energy production.



NREs are obtained from mostly traditional fuels: fuel wood, agriwaste, bagasse and charcoal.



There were 9 existing coal terminals in 1999.



Unconventional NRE sources are wind, solar, ocean and microhydro are to be used increasingly in remote off-grid areas.

By 2005, it was projected that natural gas would substitute the imported diesel, fuel oil and LPG demand of industries. In 2002 natural gas production started to fuel the combined cycle gas turbine power plants in Southern Luzon.



The non-renewable characteristic of energy and common traditional fuel sources has long stimulated the search and development of alternative materials as against fossil-based fuel sources. Together with circulation systems, energy has dominant ecological, resource and security impact. While government and industry are considered major actors in both technology development and utilization, users of energy and fuel among the citizen society count as either energy-savers or energy-wasters.



As of 1999, the Philippines had an electrification level of 75.92 percent.



All regions had levels of electrification above 50 percent, save for the Autonomous Region of Muslim Mindanao (ARMM), which then only had 20.0 percent.

The improvements in the energy situation since the power crisis of the early 1990s were achieved through the implementation of fast-track power generation projects through independent power producers (IPPs) and increased private sector participation in the development of the energy infrastructure. In addition, the restructuring of the power sector, the development of a natural gas utilization plan, and the deregulation of the downstream oil industry commenced. Energy Resource Development. E.O 462 and the Energy Resolution 1-94 enhanced the incentives for the utilization of NREs.



The Department of Energy, together with the Petroleum Association of the Philippines, has launched the Window of Opportunity package for foreign and local investors in petroleum exploration and development., offering additional incentives to exploration companies on top of the existing privileges under the service contract system.



Power Generation. Since the 1990s there has been more stability and reliability of power supply with the participation of the private sector in increasing the total generating capacity of power plants. The bulk of activities in power generation and development are expected to be undertaken by the private sector in a deregulated and market-oriented climate.



In the long-term, environmental safety and socio-cultural concerns and (hopefully) just pricing will be integrated into the planning and implementation of energy programs and projects, including power development.



Electrification. The full electrification of the country’s barangays was targeted by 2004. As of 1999, 32,281 barangays in the franchise areas of electric cooperatives, private investor- and LGU-owned utilities were provided electricity. That was about 77 percent of all barangays, 76 percent of households and 9.8 million household connections.



The total barangay electrification is on going mainly through line extension (including installation of sub-stations for areas within the grid), as well as installation of NRE systems and implementation of small island grid program for far-flung areas.

Downstream



The passage of R.A. 8479 in 1998 paved the way for the entry of new players in the industry such that by 1999 there were 56 new players engaged in such activities as bulk storage, LPG refilling and petroleum products retailing; more storage capacity, more gas stations, more depots, more independent LPG marketers and . more refilling plants.



To meet the projected rising demand for petroleum products, modernization, expansion and acquisition of handling and setting up of distribution facilities are on-going.