ENERGY SECTOR

INVESTMENT OPPORTUNITIES

JOSE RENE D. ALMENDRAS

Secretary
Department of Energy
PRESENTATION OUTLINE
Energy Reform Agenda
Investment Requirements
Investment Opportunities in:
Energy Resource Development
Alternative Fuels
Power Generation
Energy Efficiency and Conservation
ENERGY REFORM AGENDA

“Energy Access for More”

A key priority of government to mainstream access of the
greater majority to reliable energy services and fuel, most
importantly, local productivity and countryside development

Good Governance thru stakeholder participation, transparency,

multi-sectoral partnership and use of ICT

Ensure Achieve Optimal Develop a

Energy Energy Pricing Sustainable
Security Energy System
INVESTMENT REQUIREMENTS (2010-2030)
Total
Sector
in Billion Php In Billion US $
Fossil Fuel Resources 543.93 24,476.85
Renewable Energy Resources 902.48 40,611.60
Alternative Transport Fuels 41.37 1,861.65
Power and Transmission Development 342.54 15,414.30
Downstream 59.61 2,682.45
Sub-Total 1,889.93 85,046.85
Cost of power plant construction
included in the Investment Cost of 62.74 2,823.30
Renewable Energy Projects
Total 1,827.19 82,223.55
ENERGY RESOURCE DEVELOPMENT
Oil and Gas
Coal
Renewable Energy
(geothermal, hydropower, other RE)
EXISTING OIL & GAS
SERVICE CONTRACTS

• Mean total resource of 8,895

billion barrels of oil equivalent
- 28,531 billion cubic feet of gas
- 3,629 billion barrels of oil
OIL AND GAS AVAILABLE AREAS
Contract Areas Coverage (has.) Location
AREA 1 544,000 Cagayan
AREA 2 676,000 Central Luzon
AREA 3 600,000 Northwest Palawan
AREA 4 616,000 Northwest Palawan
AREA 5 424,000 Northwest Palawan
AREA 6 840,000 Mindoro-Cuyo
AREA 7 844,000 Mindoro-Cuyo
AREA 8 840,000 East Palawan
AREA 9 840,000 East Palawan
AREA 10 640,000 East Palawan
AREA 11 600,000 East Palawan
AREA 12 456,000 Cotabato
(Development / Production – 30)
 (Exploration – 30)

AVAILABLE AREAS
 Argao, Cebu
 Bislig, Surigao del Sur
 Siocon, Zamboanga del Norte
 GEOTHERMAL SERVICE CONTRACT AREAS
(PRODUCING FIELDS)
Mt. Makiling-Banahaw, Laguna/Quezon
Total installed capacity: 458.53 MWe

Tiwi,Albay
Total installed capacity: 289 MWe LUZON

Bacon-Manito, Albay/Sorsogon
Total installed capacity: 151.5 MWe

Tongonan, Leyte
Total installed capacity: 722.68 MWe
VISAYAS
Northern Negros, Negros Occidental
Total Installed capacity: 49.35 MWe

Palinpinon, Negros Oriental

Total Installed capacity: 192.5 MWe

MINDANAO
Mt. Apo, North Cotabato/Davao
Total Installed capacity: 108.48 MWe
GEOTHERMAL SERVICE CONTRACT AREAS
(PRE-DEVELOPMENT STAGE)

Bontoc-Sadanga, Mt. Province (80 MW) Kalinga, Kalinga (60 MW)

Buguias-Tinoc, Benguet/Ifugao (60 MW)

Daklan, Benguet (60 MW) Mt. Labo, Camarines Norte (65 MW)

Acupan, Benguet (20 MW) Isarog, Camarines Sur (70 MW)

Natib, Bataan (40 MW) LUZON
Mt. Bulusan, Sorsogon (40 MW)
Maibarara, Laguna (20 MW)
Mabini, Batangas (20 MW)

Montelago, Oriental Mindoro (40 MW)

Biliran,Biliran (20 MW) VISAYAS

Mt. Cabalian, Southern Leyte (80 MW)
Sta. Lucia-Iwahig
Puerto Princesa City, Palawan (~1 MW)

MINDANAO
Mainit, Surigao del Norte (30 MW)
Amacan, Compostela Valley (20 MW)
HYDROPOWER PROJECTS
Estimated
Estimated Estimated Project
Project Name Location Capacity Project Cost Cost
(MW) (Million USD) (Million
PhP)
Amburayan River Hydropower Prospect Atok, Benguet 33.8 84.50 3,802.50
Ilaguen Hydropower Prospect San Mariano, Isabela 25.0 62.50 2,812.50
Quirino Hydropower Prospect Quirino, Ilocos Sur 10.0 25.00 1,125.00
Binongan Hydropower Prospect Tineg, Abra 175.0 437.50 19,687.50
Addalam Hydropower Prospect Aglipay, Quirino 46.0 115.00 5,175.00
Hubo hydropower Prospect San Agustin, Surigao del Sur 10.0 25.00 1,125.00

Asiga River Hydropower Prospect Santiago, Agusan del Norte 11.3 28.25 1,271.25
Cateel E Hydropower Prospect Davao del Norte 17.5 43.75 1,968.75
Tran AC River Hydropower Prospect Lebak, Maguindanao 30.6 76.50 3,442.50
Lake Mainit River Hydropower Prospect Jabonga, Agusan del Norte 25.0 62.50 2,812.50
TOTAL 384.2 960.50 3,222.50

*Initial list of Frontier Areas

ALTERNATIVE FUELS
2009 Actual Demand 2009 Production
Program Production (in Liters) Capacity
(in Million Liters) (in Million Liters)
Biodiesel 136.5 130.9 395.6
Bioethanol 23.3 87.3 49.0

Gasoline demand of 4.61 billion liters in 2011 will require bioethanol

blend of 230.5 million liters (@ 5% minimum) and 461 million liters
(@10% mandatory)
Need at least 6-13 production plants at 30 million liter/yr capacity to
meet the 5% or 10% mandated bioethanol blends in 2011,
respectively
Potential sites: Negros, Bukidnon, Zamboanga, Tarlac, Pampanga and
Cagayan
POWER GENERATION
STATUS OF EPIRA IMPLEMENTATION
OPEN ACCESS AND RETAIL COMPETITION
Almost there.
• 91.8 % of NPC GenCos
• NGCP as the TransCo Concessionaire
• 68 % transferred to IPP Administrators

Establishment of WESM
• Luzon Commercial Operation Complied with.
on June 2006
• Preparation for WESM Visayas

Removal of Cross Subsidies Complied with.

Inter-Grid Sept. 2002
Intra-Grid Oct. 2005
Inter-Class Oct. 2005
Moving
Towards
Unbundling A Competitive
Complied with.
Rates are Structured
and Unbundled. Power Market
LUZON POWER DEMAND AND SUPPLY OUTLOOK

Luzon grid needs a total additional capacity of 11,900 MW onwards to 2030

25,000
600 MW Coal-Fired
(GN Power);
33.55 MW BacMan II
20,000

40.8 MW BacMan I-2

15,000

MW
4.6 %
10,000
AAGR

5,000
Malaya (685.83 MW)
Retirement

0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Required Additional Cap 300 300 450 450 450 500 600 650 500 650 650 650 800 650 800 900 800 900 900
Committed 41 634
Existing Capacity 10,030 10,030 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384
Required Reserve Margin 1,646 1,701 1,774 1,865 1,944 2,038 2,135 2,235 2,327 2,432 2,541 2,656 2,775 2,900 3,031 3,167 3,310 3,459 3,615 3,778 3,949 4,127
Peak Demand 7,036 7,270 7,582 7,934 8,309 8,710 9,123 9,553 9,945 10,393 10,860 11,349 11,860 12,39412,952 13,53514,145 14,783 15,450 16,147 16,87517,636

Assumption: High Demand Forecasts

 VISAYAS POWER DEMAND AND SUPPLY OUTLOOK

Visayas grid needs a total additional capacity of 2,150 MW onwards to 2030

4,500 240 MW Coal-Fired

(Cebu Energy Dev’t Power Corp, CEDC)
4,000
160 MW Coal-Fired (Panay Energy Dev’t. Corp.)
3,500
200 MW CFPP (KEPCO-Salcon)
3,000 17.5 MW Panay Biomass(GPP)
20 MW Nasulo Geo (EDC)
2,500
MW 4.6 %
2,000
AAGR
1,500

1,000

500 CEBU LBGT (48 MW)

Retirement
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Required Additional Cap 150 100 150 100 150 100 150 150 150 200 150 200 200 200
Committed 240 398
Existing Capacity 1,505 1,505 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457 1,457
Required Reserve Margin 311 335 339 348 361 375 390 406 420 442 464 487 512 538 565 593 623 654 687 722 758 797
Peak Demand 1,331 1,430 1,448 1,486 1,545 1,603 1,666 1,733 1,797 1,887 1,983 2,082 2,187 2,297 2,413 2,535 2,663 2,797 2,938 3,086 3,241 3,404

Assumption: High Demand Forecasts

 MINDANAO POWER DEMAND AND SUPPLY OUTLOOK

Mindanao grid needs a total additional capacity of 2,500 MW onwards to 2030

4,500

4,000
42 MW Sibulan Hydro
3,500
8 MW Cabulig Hydro
3,000
50 MW Mindanao Geothermal
MW 2,500

2,000
4.6 %
AAGR
1,500

1,000
1X200MW CONAL
500 (Saranggani)
Phase 1 – 2012
0 Phase 2 - 2014
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Required Additional Cap 50 50 200 100 100 100 100 100 100 100 100 100 150 150 150 150 150 200 150 200
42 8 50
2x100MW CONAL
Committed
1x100MW (Zambo)
Existing Capacity 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682 1,682
Required Reserve Margin 318 333 347 362 379 396 414 433 454 475 497 520 544 569 596 623 652 682 714 747 781 817
200MW STEAG
Peak Demand 1,359 1,421 1,483 1,549 1,620 1,692 1,769 1,852 1,942 2,031 2,125 2,223 2,326 2,434 2,546 2,664 2,787 2,916 3,050 3,191 3,339 3,493
1x200MW (no date yet)

Assumption: High Demand Forecasts El Nino impact: 500MW+

 POWER PROJECTS IN LUZON GRID
Northwind Aparri Project Green Power
(40 MW)=2011 Nueva Ecija Biomass (18 MW)=2012
Pangasinan Biomass 1 (18 MW)=2013
Pagudpud Wind (40 MW) Pangasinan Biomass 2 (18 MW)
Burgos Wind (86 MW) – 6 MW=2011
40 MW=2012 Green Power Isabela Biomass
40 MW=2013 (18 MW)=2012
Northwind Pamplona (30 MW)=2011
Balintingon River (30 MW)=2015
APEC CFB Phase II (50 MW)=2010 Kalayaan CBK Expansion
(360 MW)=2014
Pantabangan Expansion
(78 MW) Pagbilao Exp. (400 MW)
Quezon Power Exp.(500 MW)=2016
2x300 MW Coal-Fired GN Power
(600 MW)=2012 Energy World Wind Farm
(50 MW)=2011
First Gen San Gabriel (550 MW)=2013 Mauban Wind Farm
Ilijan Expansion (300 MW) (12MW)=2014

TAOil Power Project

(2x135 MW)=2013 Tanawon Geo (40 MW)=2013
Rangas Geo (40 MW)=2015
Legend:
Manito-Kayabon Geo
Green Power Mindoro Biomass (40MW)=2016
Natural Gas (18 MW)=2017
HEP Energy World Kanan B1 HPP
Energy World CCGT (145 MW)=2013
Geothermal (2x150 MW)=2011

Coal-Fired

Biomass - Indicative Projects, 3,448 MW

Wind - Committed Projects, 600 MW
 POWER PROJECTS IN VISAYAS GRID

Aklan HEP (41 MW)=2012 Cebu Energy

Villasiga HEP (8MW)=2012 Development
Corporation (246 MW)
Unit I=March 2010 Green Power
Panay Energy Unit II=June 2010 Samar (18 MW)=2015
Development Green Power Unit III=Jan 2011
Corporation (164 MW) Negros (18 MW)=2014
Unit I=Sept 2010
Unit II=Dec 2010

Green Power
Iloilo (35 MW)
Unit I=2011 Southern Leyte
Unit II=2012
P A N A Y Geo (40 MW)
2019

Legend:

HEP KEPCO SPC Power

(200 MW)
Geothermal
Unit 1= Feb 2011
Unit II= May 2011
Coal-Fired

Biomass EDC Nasulo

Geothermal Dauin Geo (40 MW)
(20 MW)=2013 2017 - Indicative Projects, 186 MW
- Committed Projects, 654 MW
 POWER PROJECTS IN MINDANAO GRID
Green Power CDO Biomass
(18 MW)=2013
Minergy Bunker Fired
(20 MW)=4th Qtr. 2010
AGUS 3 HEP
(225 MW)=2011
CEPALCO Cabulig HEP
(8 MW)=June 2011
Tagoloan HEP
(68 MW)=2012
HEDCOR Sibulan Inc.
(42.5 MW)
Unit I=March 2010
Unit II=August 2010

Conal Holding CFTPP

(200 MW)
Unit I=2012
Unit II=2014
Legend:
Green Power Davao
HEP EDC Mindanao Geothermal 3 Biomass(18 MW)=2017
(50 MW)=2014
Oil-based
HEDCOR Tamugan.
Coal-Fired (27.5 MW)=2011

Geothermal

Biomass - Indicative Projects, 581 MW

- Committed Projects, 100 MW
ENERGY EFFICIENCY
AND CONSERVATION
EE&C TECHNOLOGIES
Lighting System (Fluorescent Lamp, Compact Fluorescent Lamp, Light
Emitting Diodes, High Pressure Sodium Lamps)
Air-conditioning System (Window Type ACU, Package Type ACU, Split
Type, Centralized AC (Chiller), Absorption Type, Chilled Water Type AC
System)
The Energy Management and Building Automation System
Green Building
High Efficiency Motors
High Efficiency Transformer
Fuel-Efficient Boiler
Heat Exchanger
Variable Speed Control for Motors
Cogeneration System
SUMMARY
INVESTMENT OPPORTUNITIES
OIL AND GAS
Twelve (12) petroleum contract areas in shallow to deep waters with total
hectarage of 7,920,000
Possible joint ventures with the existing service contractors

COAL
Three (3) available contract areas for exploration and development
Possible joint ventures with the existing service contractors

RENEWABLE ENERGY
Possible joint ventures with existing Geothermal Service Contractors for
exploration
Hydro frontier areas available for pre-development phase
Possible joint ventures with the existing service contractors for hydro
INVESTMENT OPPORTUNITIES
ALTERNATIVE FUELS
Production plants for bioethanol

ENERGY EFFICIENCY & CONSERVATION

Promotion and utilization of EE& C Technologies
INVESTMENT OPPORTUNITIES
POWER SECTOR
Infrastructures in power generation
Greenfield generation projects
Possible joint ventures with proponents of indicative projects
NPC plants and NPC-IPP contracts for privatization
Competition
Electricity trading in the Wholesale Electricity Spot Market
Transition from a government-supervised Market Operator to an
Independent Market Operator
Supply/aggregation business
Metering service provider
Missionary electrification
New Power Providers
NEXT STEPS
NEXT STEPS FOR THE INVESTORS
Please contact DOE thru Ms. Lisa Go of the Investment Promotion
Office (IPO) for more data/information on the area/project
For joint ventures, DOE-IPO will coordinate with the existing service
contractors and arrange for a meeting with the interested company.
For new areas, DOE-IPO will brief the investor on how to go about an
energy project, i.e. service contracts or power generation project;
provide with the checklist of requirements and the process flow needed
for the type of project
DOE-IPO will coordinate with the concerned DOE bureaus or units for
more details on given area/site
DOE-IPO contact details : Telefax : (+632) 840-2255
E-mail address doe_ipo@doe.gov.ph
SALAMAT PO