Philippines: Low Carbon Growth

Strategies and Challenges

JESUS T. TAMANG
Director, Energy Policy and Planning Bureau
Department of Energy

ADB’s First Regional Consultation Meeting for Research and Development Technical
Assistance (RDTA) on Strengthening Planning Capacity for Low Carbon Growth in
Developing Asia
Traders Hotel, Kuala Lumpur, Malaysia
January 26-27, 2010
Talking Points

 Current Energy Situation

 The Energy Reform Agenda
 Policies and Institutions Supporting Low Carbon
Development
 Current Low Carbon Initiatives
 Challenges and Next Steps
The Current Energy Situation
Increased Energy Self-sufficiency and Fuel Diversification
45,000
45,000 70
2009
40,000
40,000 Wind & Solar
60 0%
35,000
35,000
50 Biomass
30,000
30,000 14% Oil
40 32%
25,000
25,000
kTOE

%
20,000
20,000 30 Geothemal
15,000
15,000 23%
20
10,000
10,000
Coal
10 17%
5,000
5,000
Hydro
-- - 6% Natural Gas
8%
2001 2002 2003 2004 2005 2006 2007 2008 2009

OilOil Coal
Coal Natural
Natural Gas
Gas Hydro
Hydro
Geothemal
Geothemal Biomass
Biomass Wind & Solar
Wind & Solar Self-sufficiency Total = 40.4 MTOE
The Current Energy Situation
Increased Self-sufficiency and Fuel Diversification in
Power
70,000

60,000
70 2009
Wind & Solar
60 0%
50,000
Oil
40,000
GWh

50 8%

%
Geothemal
30,000 17%
40 Coal
20,000 Hydro 26%
30 16%
10,000

- 20
Natural Gas
2001 2002 2003 2004 2005 2006 2007 2008 2009
33%
OilOil Coal
Coal Natural
NaturalGas
Gas Hydro
Hydro
Total = 62,000 GWh
Geothemal
Geothemal Biomass
Biomass Wind
Wind && Solar
Solar Self-sufficiency
The Current Energy Situation
Transport sector remains to be the biggest user of oil
Sector Mil. BBls Percent Share
Transport 67.5 65.03
Industry 10.0 9.63
Residential 9.8 9.44
Power 8.3 8.00
Commercial 6.7 6.45
Agriculture 1.5 1.45
Total 103.8 100.00
 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 Develop a

Energy Optimal Sustainable
Security Energy Energy
Pricing System
Policies and Institutions Supporting Low
Carbon Development
Policies Institutions

Renewable Energy Act DOE, National Renewable

Energy Board
National Biofuels Law DOE, National Biofuels
Board
Investment Priorities Plan Department of Trade and
Industry,
Board of Investment
Clean Air Act DENR

Climate Change Act Climate Change

Commission
Policies and Institutions Supporting Low
Carbon Development
Policies Institutions

Energy Conservation Bill DOE \ EUMB

LPG Bill DOE\OIMB

Downstream Sector Natural DOE \ Natural Gas Office

Gas Bill
Current Low Carbon Initiatives

 Expand Use of Renewable Energy

 Enhance Efficiency of Energy Usage
 Promote Use of Clean Alternative Fuels and
Technologies
 Improve Transport Sector Efficiency and
modal shifts
 Improve Efficiency of Energy Supply
Expand Use of Renewable Energy
Double Installed Capacity by 2030

Cumulative
Installed 2010 2015 2020 2025 2030
Capacity (MW)

Hydropower 3,477.81 4,433.51 6,432.21 6,615.19 7,533.84

Wind 33.00 199.00 903.00 953.00 1,018.00

Solar 6.74 11.75 36.27 60.65 85.00

Biomass* 75.50 93.90 93.90 93.90 93.90

Geothermal 1,972.07 2,382.07 3,037.07 3,177.07 3,447.07

TOTAL 5,565.12 7,120.23 10,408.55 10,805.91 12,083.91

Expand Use of Renewable Energy
Double Installed Capacity by 2030

Promote private sector

participation and
generation from
renewable energy thru
a. Renewable Portfolio
Standard
b. Feed-in Tariff System
c. Renewable Energy
Market
d. Net Metering for
Renewable
RE for off-grid household
electrification
Enhance Efficiency of Energy Use
 Continue implementation of existing programs
 National Energy Efficiency and
Conservation Program (NEECP)
 Government Energy Management Program
(GEMP)
 The Philippine Energy Efficiency Project
(PEEP) – with ADB
 Expand coverage of Appliance Labeling
Program
 Implement Energy Labeling for new models of
passenger cars and light-duty vehicles
 Develop and implement Efficiency Guidelines
 Develop /Promote Green Building Technology
 Promote Use of Clean Alternative Fuels
Biofuels

Year Diesel Demand Biodiesel Blend Fuel

(In million (Targets)* Displacement
liters)* (In million liters)
2009 5,144.54 2% 102.89
2010 5,379.42 2% 107.59
2015 6,632.36 10% 663.24
2020 7,805.75 15% 1,170.86
2025 8,768.48 20% 1,753.70
2030 9,427.89 20% 1,885.58
Note: *Based on JICA Study on Capability Enhancement on Policy and Planning for a
More Effective and Comprehensive Philippine Energy Plan (PEP) Formulation
 Promote Use of Clean Alternative Fuels
Biofuels
Year Gasoline Bioethanol Fuel
Demand Blend Displacement
(In million (Targets)* (In million liters)
liters)*
2009 3,380.10 5% 169.01
2010 3,570.58 5% 178.53
2015 4,305.30 15% 645.79
2020 5,213.00 20% 1,042.60
2025 6,013.85 20% 1,202.27
2030 6,704.34 20% 1,340.87
Note: *Based on JICA Study on Capability Enhancement on Policy and Planning for a
More Effective and Comprehensive Philippine Energy Plan (PEP) Formulation
Promote Use of Clean Alternative Fuels
Natural Gas
• Pipelines BATMAN 2
(Bataan - Manila)

 423 kms of Transmission 140 kms. (2016)

 504 sq. kms. of Distribution ET LOOP

(EDSA – Taft Loop)
• Gas-fired Power Plants 40 kms. (20200

 3000 MW of Greenfield
 600 MW of Conversion SU-MA
(Sucat - Malaya)
• Gas in Industry 35 kms. (2017)

 30 Ecozones in Calabarzon
BATCAVE
 Subic and Clark (Batangas – Cavite)
40 kms (2020)
 Cogeneration Systems
• Gas in Buildings
 Cogeneration Systems
RO-BIN
(Rosario - Biñan)

 District Cooling
35 kms. (2014)

• Gas in Transport BATMAN 1

(Batangas Manila)
 10,000 units of CNG Vehicles 80-100 kms. (2013)

 Refilling Stations
 Mother Stations CATLINE (Calaca

 Conversion Kits Spurline)

30 kms.

• LNG Terminals
Promote Use of Clean Alternative Fuels
Emerging Technologies

1. Nuclear
2. Ocean
3. Hydrogen
Promote Use of Clean Alternative Fuels
Improve Transport Sector Efficiency and modal shifts
1. Expand use of Compressed
Natural Gas in Public Transport
a. 200 units by 2010
b. 10,000 units by 2030
2. Promote conversion to LPG of
PUVs
a. 15,000 taxis and 293
tricycles as of 2009
3. Introduce the use of e-vehicles
4. Expand / Shift to more efficient
mass transport systems e.g.
MRT/LRT, BRT
Improve Efficiency of Energy Supply
1. Improve efficiency of
Transmission and
Distribution networks
e.g. system loss
2. Rehabilitate inefficient
power plants
3. Promote energy
efficiency in energy
production and
transformation i.e. oil,
gas and coal production;
refinery operations
Challenges and Next Steps
 Measure GHG reduction of policies,
programs and projects implemented
 Move from Energy Labeling to
Standardization
 Optimize use of alternative fuels, RE
resources and cleaner technologies
 Identify and prioritize programs and projects
with low carbon impacts
Challenges and Next Steps
 Conduct of vulnerability and risk assessment
 Inventory of completed and on-going studies
 Develop methodologies and scenarios
 Climate-proof the energy system
 Identify appropriate technologies
 Capacity building for climate change
 Institutionalize/Mainstream climate change in
development planning including LGU
 Raise awareness on climate change
Challenges and Next Steps
 Review and modify engineering design
practices
 Amend the Building Code and Standards
 Develop Rating system for Green Buildings
 Incorporate structural adaptation in the design of
energy infrastructure and systems
 Reinforce/strengthen existing infrastructure
 Production facilities, power plants, TDL, etc.
 Identify and secure sources of funds for low
carbon future
Philippines: Low Carbon Growth
Strategies and Challenges

JESUS T. TAMANG
Director, Energy Policy and Planning Bureau
Department of Energy

ADB’s First Regional Consultation Meeting for Research and Development Technical
Assistance (RDTA) on Strengthening Planning Capacity for Low Carbon Growth in
Developing Asia
Traders Hotel, Kuala Lumpur, Malaysia
January 26-27, 2010
Challenges and Next Steps
 There is a need to assess
- the energy systems/infrastructures vulnerability
- pressure in energy demand, and
- energy supply vulnerability
 There is a need to develop models on climate change
impacts including weather extremes, variability, hydro
resources, mean temperature, wind speeds to allow
energy experts assess the implication of climate on
demand and supply of energy which will facilitate the
development of adaptation options
 There is a need to assess impact of climate change on
energy resources e.g. hydro, wind, solar
 There is a need to maintain climatology and hydrology
research and development efforts
Challenges and Next Steps
 Integrating climate change adaptation to energy
planning (national and local) of policies, regulations,
codes and standards, and the design of infrastructure
 Developing strategies to address changing demand
patterns
 Diversifying energy supply sources
 Investing in technological change to increase energy
demand and supply options
 Enhancing energy efficiency programs and
implementing energy efficiency measures
 Sharing and dissemination of knowledge, research and
best practices on adaptation