For inquiries, please contact:

Loreta G. Ayson, CESO IUndersecretary

Jesus T. TamangDirector, EPPB

Carmencita A. BarisoAsst. Director, EPPB

Michael O. SinocruzChief, Planning Division

Department of EnergyEnergy Center, Rizal Drive corner 34th Street

Fort Bonifacio, Taguig City 1632Tel. Nos: 840-2288: 840-1780: 479-2900 local. 223, 410, 288

i

Philippine Energy Plan2012-2030

iii

TABLE OF CONTENTS

Message from the Senator iiMessage from the Secretary iii List of Tables and Figures iv

I OVERVIEW AND EXECUTIVE SUMMARY 1 II ENERGY SUPPLY AND DEMAND A. Energy Situationer, 2011 13 B. Philippine Energy Outlook, 2012-2030 27

III ENERGY RESOURCE DEVELOPMENT A. Fossil Fuels 40 B. Renewable Energy 49 IV DOWNSTREAM SECTOR DEVELOPMENT A. Oil Industry Deregulation 67 B. Natural Gas Industry Development 79

V POWER SECTOR A. Power Development Plan 86 B. Transmission Development Plan 101 C. MissionaryElectrification 108 D. EPIRA Developments 118

VI SOCIALLY RESPONSIVE PROGRAMS A. ExpandedRuralElectrification 125 B. BenefitstoHostCommunities 130 C. Alternative Fuels 132 D. EnergyEfficiencyandConservation 141 E. EnergyandClimateChange 150

VII INTERNATIONALENERGYCOOPERATION 155

VIII INVESTMENT PORTFOLIO 163 DepartmentofEnergyOfficials 174ListofAcronyms 175List of Units of Measurements 180Conversion Table 181

iiiii

MESSAGE FROM THE SECRETARY

Addressing the conditions of high economic growth, volatile energy prices and growing environment concerns, the the Department of Energy (DOE) is honored to be the vanguard in formulating policies and plans that will ensure adequate and reliable supply of energy in all aspects of development. Toward thisend,theDOEenvisionsascenarioofenergydiversification,highlighting the deployment of clean energy and demand side management leading to a low carbon future.

The Department also looks after the continuity of energy programs to sustain the progress of achieving its plans and programs to complement the current energy situation, even though institutional changes occur in the energy sector. Thus, at the onset of the Aquino Administration in 2010, the DOE initially crafted the Energy Reform Agenda (ERA) with the guiding vision of providing Energy access for more in an environment of transparency and good governance. The ERA is anchored on the overall goals of ensuring energy security, achieving optimal energy pricing and developing a sustainable energy system. Beyond ERA, the Department formulated the Philippine Energy Plan 2012-2030 to support the long-term transformation of the countrys energy future towards sustainable development.

The PEP 2012-2030 embodies the countrys major plans and programs, the prudent assessment of energy trends and development, as well as the action agenda to respond to emerging and foreseenenergychallengesandissueswithintheplanningperiod.Strategiesaredefinedtoaddresssignificantchallengessuchascontinuedvulnerabilitytoenergysupplydisruptions,volatilityofoilprices in the world market and mitigating environmental consequences. The Plan focuses on the ramped-up development of renewable energy, accelerated indigenous energy resource exploration, diversificationofenergysupplysources,promotionofenergyefficiencyandthefullimplementationof electricity market reforms that is expected to give millions of Filipinos the Power of Choice.

With the increasing concern on energy security attributed to the inevitably growing energy appetite among nations, it is incumbent upon us to plan ahead with keen foresight taking into account innovations in energy technologies, regional and international developments and contingencies such as climate change impacts and disaster preparedness and management. Yet, we emphasized that the energy challenge is not just for government alone to solve. We need enhanced cooperation and coordinated efforts among private and public sectors, civil society, academe and the international community. More than ever, the country is counting on every one to play an equally important role to pursue our strategic vision of providing a sustainable energy future for the present and future generations of Filipinos to come.

MESSAGE FROM THE SENATOR

In creating an enabling environment towards the countrys viable and sustainable development, it is crucial that government improves the countrys access to energy. With the possibility of energy shortages in the coming years, the consequences of not taking actions to address potential supply shortfalls would expose consumers and businesses to unacceptable risks, posing a big challenge to the countrys fragile economy.

Thus, efforts are on-ground to provide a healthy mix of renewable energy and conventional fuels in the countrys primary energy mix. This will signal the countrys readiness to support its economic platform in the long-term. Likewise, government is mandated to develop and establish

ambitious long term energy goals that will ensure accessibility and availability of energy supply over the next 20 years. Thus, the Philippine Energy Plan 2012-2030 was launched to serve as the roadmap for a dramatic scaling up of countrys energy plans and programs to meet todays urgent energy challenges. The Plan ensures the optimum development and use of the countrys clean and alternative fuels, alongside the conventional energy resources that remain indispensable in meeting the countrys energy independence goal.

We in Congress believe that close collaboration between government and the private sector will provide the necessary impetus in harnessing the countrys energy resources. Said partnership should pursue innovations in energy technologies, diversification and expansion of energyproduction, promotion of environmental and safety consciousness, as well as promotion of social welfare of the Filipinos.

Despite the challenges ahead, through renewed zeal and dedication of everyone, we can propel our country to even greater heights. Mabuhay!

CARLOS JERICHO L. PETILLASecretary

Hon. SERGIO R. OSMEA III Chairman, Committee on Energy

Philippine Senate

viv

LIST OF TABLES AND FIGURESLIST OF TABLESTable1 GHGEmissionbySectorandActivity,2010-2011Table2 GHGEmissionbyFuel,2010-2011Table 3 Targets of Low Carbon ScenarioTable 4 Active Service ContractsTable5 OilandGasMeasurableTargetsTable 6 Coal Measurable TargetsTable 7 ERC-Approved FIT RatesTable 8 Renewable Energy Installed CapacityTable9 AwardedREServiceContractsUnderR.A.9513Table 10 Summary of RE Resources, 2012-2030Table 11 Geothermal Capacity AdditionsTable 12 Geothermal Potential ResourcesTable 13 Geothermal Measurable TargetsTable14 HydropowerCapacityAdditionTable15 PotentialHydropowerResourceTable 16 On-Grid Installed and Dependable Biomass Energy, 2011Table17 AwardedBiomassProjectsUnderR.A.9513Table18 AwardedBiomassRegistrationCertificateforOwnUse,2011andFirstSemester2012Table 19 Biomass Capacity Additions Table 20 Biomass Potential ResourceTable 21 Wind Power Capacity AdditionTable 22 Wind Power Potential Resources Table 23 Solar Power Potential ResourceTable 24 Ocean Power Potential ResourceTable25 TotalNumberofNewPlayersPerActivity,2011Table 26 Total Crude Oil ImportsTable 27 Total Petroleum Product ImportsTable 28 Total Industry Petroleum Products Demand (Domestic and International Demand)Table 29 Petroleum Product ExportsTable 30 Number of Gasoline Stations, as of December 2011Table 31 Total Storage Capacity, 2011Table 32 Depot and Storage Capacity by Major Islands, 2011Table 33 Comparative Prices, as of 26 September 2012Table 34 Technical Standards, 2010-2011Table35 CriticalInfrastructureProjectsTable 36 Installed and Dependable Capacity by Island Grid, 2011Table 37 Installed and Dependable Capacity by Plant Type, 2011Table 38 Comparative Generation by Ownership/UtilitiesTable 39 Electricity Sales and Consumption by SectorTable 40 Electricity Sales and Consumption by GridTable 41 Comparative Demand by Grid Table 42 Luzon Energy Sales and Peak Demand, Average Annual Growth Rates, 2012-2030Table 43 Visayas Energy Sales and Peak Demand, Average Annual Growth Rates, 2012-2030Table 44 Mindanao Energy Sales and Peak Demand, Average Annual Growth Rates, 2012-2030Table45 CommittedPowerProjectsTable 46 Capacity AdditionsTable 47 Summary of Existing FacilitiesTable 48 Status of First Wave PSP Areas, as of June 2012Table 49 Number of Power Plants in SPUG Areas, as of June 2012Table50 NumberofPowerPlantsinExistingAreas,asofJune2012Table51 NewlyCommissionedSPUGPowerPlantsTable52 SPUGGrossPowerGenerationTable53 SPUGPeakDemandTable54 AveragePlantOperatingHours,JanuarytoJune2012Table55 SecondWaveAreasforPSPTable56 PeakDemandForecastinSPUGAreasTable57 PercentageofOff-GridsbyPlannedOperatingHoursTable58 CapacityAdditionsinSPUGAreasTable59 SmallIslandGridSupplyandDemandForecastTable 60 WESM Registration Update, as of June 2012Table 61 List of Privatized Generating Plants, as of June 2012Table 62 Indicative Privatization Schedule for the Appointment of IPP AdministratorTable 63 Remaining Assets for Privatization, as of June 2012Table64 ElectrificationLevelbyIslandGrid,asof31August2012Table65 ElectrificationLevelbyRegion,asof31August2012Table66 ElectrificationbyFranchiseHolder,asof31August2012Table67 HouseholdElectrificationLevel,asofDecember2011Table 68 Distribution of the Remaining Unenergized Barangays in ARMMTable69 HouseholdElectrificationTargets,2012-2017

Table70 TargetNumberofSitiosBasedonNEAsSitioElectrificationTable 71 Projected Infrastructure Requirements, 2011-2020Table72 ApprovedE.R.1-94Projects,1995toJuly2012Table 73