DEPARTMENT

OF ENERGY

Presentation Outline

Current Energy Situation

2
3
4

Policy Thrusts Energy Supply and Demand Outlook

Sectoral Targets / Plans and Programs

Current Energy Situation

Primary Energy Mix
2010 2011

2010 Total Energy (MTOE) Self-sufficiency Shares (%) Renewable Energy (RE) Green Energy (RE + Natural Gas) 39.8 47.8 39.29 58.5

2011 39.40 60.0 40.7 48.7

Current Energy Situation

Fuel Input Mix for Power Generation
2010 2011

2010 Total Energy (MTOE) Self-sufficiency Shares (%) Renewable Energy (RE) Green Energy (RE + Natural Gas) 52.61 67.12 19.97 67.12

2011 20.63 68.11 53.07 68.11

Current Energy Situation

(As of 31 December 2011) Household Electrification Level 70.18% Sitio Electrification Level 70.15% No. of Service Contracts (SCs) Oil and Gas - 27 Coal - 52 Awarded Renewable Energy (RE) 46 Energy Savings PhP 220 Billion

Policy Thrusts
Ensure Energy Security Expand use of renewable energy Accelerate exploration of petroleum and coal Expand Energy Access Promote Low-Carbon Future Make energy efficiency a way of life for Filipinos Promote use of clean alternative fuels and technologies Climate proof the energy sector Develop Regional Energy Plans Promote Investment in the Energy Sector Identify and implement energy sector reforms

ENERGY SUPPLY AND DEMAND OUTLOOK

Total Primary Energy

Actual vs. Low Carbon Scenario (LCS)

Total Primary Energy, by Fuel

Total Renewable Energy

Total Final Energy Consumption, by Fuel

Total Final Energy Consumption, by Sector

Transport Energy Demand, by Fuel

Transport Energy Demand, by Subsector Total

Land Transport Energy Demand, by Fuel Type

Industry Energy Demand, by Fuel

Residential Energy Demand, By Fuel

Commercial Energy Demand, By Fuel

AFF Energy Demand, by Fuel

Energy Indicators (on a per capita basis)

1.0

0.9
0.8 0.7 0.6 0.5 Electricity (TOE/person) Oil (TOE/person)

0.4
0.3 0.2 0.1 0.0

Energy (TOE/person)

2011

2016

2020

2025

2030

Includes forecast for 2012-2030 for PHL

*Other ASEAN only for 1990-2011

Includes forecast 2012-2030 for PHL

for

Includes forecast for 2012-2030 for PHL

*Other ASEAN only for 1990-2011

Plans and Programs

Reforms in the Power Sector Retail Competition and Open Access (RCOA)
Adapt Smart Grid Technologies Grid Interconnection

Electricity Spot Market

RE Market

Accelerated Rural Electrification

Power Sector Situation

Overview of the Power System
Installed Capacity 11,739 Dependable Capacity 10,824

GRID

LUZON

VISAYAS
MINDANAO TOTAL

2,402
2,022 16,162

2,037
1,616 14,477

Interconnection Line Capacity Leyte-Luzon (440 MW) Leyte-Cebu (400 MW) Cebu-Negros (200 MW) Negros Panay (100 MW) Leyte-Bohol (100 MW)

Power Supply and Demand Outlook

Binga Uprating P1 (5 MW) 2012 Bacman Geo (130 MW) 2013 Binga Uprating P2 (5 MW) 2013 GN Power (600 MW) 2013 CIP 2 Bunker (21 MW) 2013 Pililia Wind (67.5 MW) 2013 Payatas LFG (1.2 MW) 2013 Green Future (13 MW) 2013 Binga Uprating P3 (5 MW) 2014 Maibarara Geo (20 MW) 2014 Binga Uprating P3 (5 MW) 2015 Putting Bato (150 MW) 2015 SCJI Power (11 MW) 2015

Required Reserve Margin

Projected Demand AAGR % = 4.79

Luzon grid needs a total additional capacity of 10,500 MW onwards to 2030

A 600 MW new capacity is needed starting 2016 to meet the demand and required reserve

Plans and Programs

Rural Electrification
Achieve 90.0 percent household electrification by 2017 and 100 percent sitio electrification by 2015 Formulate Household Electrification Development Plan Pursue development and implementation of innovative service delivery mechanisms to increase household connections

Measurable Targets
Rural Electrification
YEAR 2011 HOUSEHOLDS 39,773 SITIOS 1,520

2012
2013 2014 2015 2016 TOTAL

142,110
228,300 612,100 532,250 5,400 1,559,833

4,487
3,783 12,114 10,537 32,441

Note: Based on the targets of DOEs Household Electrification Program (HEP) using RE and NEAs Sitio Electrification Program (SEP)

Measurable Targets Rural Electrification

Luzon CAR Number of Sitios/Puroks 180

Region I
Region II Region III Region IV-A Region IV-B Region V

126
157 284 211 257 204

TOTAL
NEAs Sitio Electrification Program for 2012

1,419

Plans and Programs

Indigenous Energy Development
Continue the conduct of Contracting Rounds to offer prospective areas Promote use, development and localization of appropriate and clean technologies coal liquefaction, coal gasification and CBM Continue international cooperation on energy resources e.g. establishment of ASEAN Coal Supply Security Agreement Encourage further investment on resource development Establish one-stop shop for investors

Develop a framework for pricing of local resources

Measurable Targets
Coal
2012
Production (@10,000 BTU/lb MMMT) LUZON II IV V VISAYAS VI VII MINDANAO IX

2015
11.12 0.30 0.18 0.03 0.10 8.85 8.14 0.71 1.96 0.74 0.02 0.68 0.53 5.87

2020
12.59 0.47 0.31 0.05 0.11 9.13 0.98 0.00 3.00 0.96 0.02 1.28 0.75 5.62

2025
13.03 0.49 0.33 0.05 0.12 9.27 8.16 1.11 3.27 1.08 0.02 1.41 0.76 6.29

2030
13.31 0.50 0.33 0.05 0.13 9.28 8.16 1.11 3.53 1.08 0.02 1.62 0.82 6.38

X
XII CARAGA Fuel Oil Displacement (KTOE)

8.33 0.12 0.04 0.01 0.07 7.48 7.22 0.26 0.73 0.43 0.13 0.17 4.40

Measurable Targets
Oil and Gas
FIELD
Awarding of Service Contracts Acquisition of 2D Data (line-kms.) Acquisition of 3D Data (line-kms.)

2012-2015
10

2016-2020
23 9,500 950

2021-2025 2026-2030
19 14 9,000 1,150

7,000
800

7,000
700

Exploration Well Drilling

Production Oil (MMB) Gas (BCF) Condensate (MMB)

20

25

25

25

27.73 585.29 20.99

19.53 747.87 25.61

14.77 1,190.85 21.44

15.94 751.73 2.75

Plans and Programs

Renewable Energy Promote the National Renewable Energy Program (NREP)
Triple installed capacity by 2030

Implement the RE law policy mechanisms

Continuous assessment of RE resources Evaluate new and emerging technologies Develop / Tap local capacity and expertise

Measurable Targets
Renewable Energy
Target Capacity Addition (in MW)
Sector
Luzon

Committed
Visayas Mindanao Luzon

Indicative
Visayas Mindanao Luzon

TOTAL
Visayas Mindanao

Geothermal Hydropower

20 -

20 8

50 8

120 150

80 -

257

140 150

100 8

50 265

Biomass
Wind Solar Ocean TOTAL

13
68 101

4
32

58

43
466 779

112
54 246

35
5 35 332

56
534 880

116
54 278

35
5 35 390

PHILIPPINES

191 MW

1,357 MW

1,548 MW

Measurable Targets
Renewable Energy 2011-2030 Potential RE Resource (in MW) - Philippines
Sector Geothermal Hydropower Biomass 2012-2015 50 310 81 678 269 2016-2020 940 3,125 865 5 2021-2030 175 1,892 432 10 TOTAL 1,165 5,326 81 1,975 284

Wind
Solar Ocean TOTAL

1,388

36 4,970

35 2,544

71 8,902

Measurable Targets
Renewable Energy 2011-2030 Potential RE Resource (in MW) - Luzon
Sector Geothermal Hydropower Biomass 2012-2015 172 45 515 230 2016-2020 680 2,170 840 2021-2030 1,510 432 TOTAL 680 3,852 45 1,787 230

Wind
Solar Ocean TOTAL

963

36 3,725

1,942

36 6,630

Plans and Programs

Downstream Oil Industry
Promote development and upgrade of downstream infrastructure oil refineries, regional depots and distribution stations Update Oil Supply Contingency Plan emergency preparedness mechanisms develop/establish Oil Stockpile
Mitigate impacts of high oil price promote fuel discounts and direct subsidies to public utility jeepney and tricycle drivers

Plans and Programs

Downstream Natural Gas
Develop strategic infrastructure for receiving, storage, transmission and distribution Promote use of natural gas beyond power Serve as major alternative fuel for transport especially public transport
BATMAN 2 (Bataan - Manila) 140 kms. (2020) ET LOOP (EDSA Taft Loop) 40 kms. (2020) SU-MA (Sucat - Malaya) 35 kms. (2017) BATCAVE (Batangas Cavite) 40 kms (2022)
BATMAN 1 (Batangas Manila) 80-100 kms. (2015-17)

Plans and Programs

Natural Gas
Luzon Critical Infrastructure Projects
Pipeline Projects
105 k.m. Batangas-Manila (BatMan 1) Pipeline 15-k.m. Sucat-Fort Bonifacio Pipeline
35-k.m. Sucat-Malaya (Su-Ma) Pipeline 38-k.m. Sucat-Quirino Pipeline 140-k.m. Bataan-Manila (BatMan2) Pipeline 40-k.m. Metro Manila/EDSA-Taft Gas Pipeline ET Loop

Target Year
2015-2017 2017
2017 2020 2020 2020

40-k.m. Subic Pipeline (from proposed BatMan2 to Subic) 25-k.m. Clark Pipeline (from proposed BatMan2 to Clark)
40-k.m. Bataan-Cavite (BatCave) Pipeline

2021 2022
2022

Plans and Programs

Natural Gas
Luzon Critical Infrastructure Projects
Refilling Stations
CNG Refilling Stations in Metro

Target Year
2013-2015

Liquefied Natural Gas (LNG) Terminals

LNG Hub Terminal in Pagbilao, Quezon

Target Year
2013-2014

LNG Terminal in Batangas

LNG Terminal in Bataan

2021-2030
2025

Plans and Programs

Natural Gas
LNG Terminal (Bataan) 2025 LNG Hub Terminal (Pagbilao, Quezon) 2013-2014 LNG Terminal (Batangas) 2021-2030

Plans and Programs

Alternative Fuels for Transport
Create market awareness and collaboration with industry stakeholders Establish funding mechanisms to develop market Strengthen partnership with the academe and research

30 by 2030
30 percent of all public utility vehicles running on alternative fuels nationwide by 2030

institutions
conduct of on-road performance and durability tests for higher biofuels blend establish the Natural Gas Institute build manpower capability

Target Number of Vehicles on Alternative Fuels

Type CNG
Bus Taxi AutoLPG E-trikes Biofuel Blending Ethanol CME 10% 2% 10% 5% 10% 5% 20% 10% 20% 20% 20% 20% 19,052 630 20,200 50,170 61 1,000 5,000 100 20,500 80,730 6,900 1,000 21,700 106,000 9,200 6,000 23,200 150,000 15,000 16,000 23,000 230,000

2011

2015

2016

2020

2025

2030

Number of Vehicles

Alternative Vehicles for Transport

300,000 250,000 200,000 150,000 100,000 50,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 CNG Taxi CNG Bus Auto-LPG Taxis

E-trikes

84

Plans and Programs

Energy Efficiency as a Way of Life
Advocate passage of Energy Efficiency and Conservation Bill Promote private Energy Service Companies (ESCO) as a new business market industry model Continue implementation of the National Energy Efficiency and Conservation Program (NEECP):
Information Education and Communication (IEC) Campaign

Government Energy Management Program (GEMP)

Demand Side Management Program (DSM) Expand coverage of energy labeling and standardization

Measurable Targets
Energy Efficiency as a Way of Life
Sectoral Target : 10% energy savings on the total annual energy demand of all economic sectors Cumulative Target Energy Savings by Sector (KTOE)
Sector Agriculture Industrial 2012 16 2015 17 2020 20 2025 25 2030 30

157
127 140 408 848

197
164 179 516 1,073

283
241 265 689 1,499

408
345 401 894 2,072

583
482 588 1,169 2,850

Commercial
Residential Transport TOTAL MW Deferred Capacity

384
1,413,303

486
1,786,955

679
2,496,928

938

1,291

CO2 Equivalent, tons CO2

3,451,188 4,747,802