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

Increased Energy Self-sufficiency and Fuel Diversification

Total = 40.4 MTOE

Oil32%

Coal17%

Natural Gas8%

Hydro6%

Geothemal23%

Biomass 14%

Wind & Solar 0%

2009

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

kTOE

Oil Coal Natural Gas HydroGeothemal Biomass Wind & Solar

-

10

20

30

40

50

60

70

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

%

kTOE

Oil Coal Natural Gas Hydro

Geothemal Biomass Wind & Solar Self-sufficiency

The Current Energy Situation

Increased Self-sufficiency and Fuel Diversification in

Power

Total = 62,000 GWh

Oil8%

Coal26%

Natural Gas33%

Hydro16%

Geothemal17%

Wind & Solar 0%

2009

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

GWh

Oil Coal Natural Gas Hydro

Geothemal Biomass Wind & Solar

20

30

40

50

60

70

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

2001 2002 2003 2004 2005 2006 2007 2008 2009

%

GWh

Oil Coal Natural Gas Hydro

Geothemal Biomass Wind & Solar Self-sufficiency

The Current Energy Situation

Transport sector remains to be the biggest user of oil

The Current Energy Situation

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

Ensure Energy

Security

Achieve Optimal Energy Pricing

Develop a Sustainable

Energy System

Good Governance thru stakeholder participation,

transparency, multi-sectoral partnership and use of ICT

“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

Energy Reform Agenda

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

Gas Bill

DOE \ Natural Gas Office

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

Cumulative

Installed

Capacity (MW)

2010 2015 2020 2025 2030

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 EnergyDouble 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

Expand Use of Renewable EnergyDouble Installed Capacity by 2030

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 FuelsBiofuels

Year Diesel Demand

(In million

liters)*

Biodiesel Blend

(Targets)*

Fuel

Displacement

(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 FuelsBiofuels

Note: *Based on JICA Study on Capability Enhancement on Policy and Planning for a

More Effective and Comprehensive Philippine Energy Plan (PEP) Formulation

Year Gasoline

Demand

(In million liters)*

Bioethanol

Blend

(Targets)*

Fuel

Displacement

(In million 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

Promote Use of Clean Alternative FuelsNatural Gas

• Pipelines

423 kms of Transmission

504 sq. kms. of Distribution

• Gas-fired Power Plants

3000 MW of Greenfield

600 MW of Conversion

• Gas in Industry

30 Ecozones in Calabarzon

Subic and Clark

Cogeneration Systems

• Gas in Buildings

Cogeneration Systems

District Cooling

• Gas in Transport

10,000 units of CNG Vehicles

Refilling Stations

Mother Stations

Conversion Kits

• LNG Terminals

BATMAN 1

(Batangas Manila)

80-100 kms. (2013)

BATMAN 2

(Bataan - Manila)

140 kms. (2016)

BATCAVE

(Batangas – Cavite)

40 kms (2020)

RO-BIN

(Rosario - Biñan)

35 kms. (2014)

SU-MA

(Sucat - Malaya)

35 kms. (2017)

ET LOOP

(EDSA – Taft Loop)

40 kms. (20200

CATLINE (Calaca

Spurline)

30 kms.

1. Nuclear

2. Ocean

3. Hydrogen

Promote Use of Clean Alternative FuelsEmerging Technologies

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

Promote Use of Clean Alternative FuelsImprove Transport Sector Efficiency and modal shifts

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

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

Challenges and Next Steps