FOSSIL FUELS

OIL AND GAS

In 1989, a relatively large field was discovered in offshore Northwest Palawan when Occidental
Philippines (Oxy) drilled the Camago-1 Well. The Camago Structure revealed the presence of oil and
thick layer of natural gas with associated condensate.

This was followed by the discovery of West Linapacan field by Alcorn Philippines in 1990 in which the
field commenced production after two (2) years and ceased production in 1996.

In 1991, Shell Philippine Exploration B.V. and Oxy drilled the Malampaya gas field which became, so far,
the largest gas discovery in the country with proven reserves of 2.7 to 3.2 Trillion cubic of gas (Tcf).

The Malampaya gas field started its production in 2001 and as of end December 2017 has produced a
total of 1.94 Tcf of gas and 75.0 million barrels of associated condensate. In 2001-2002, the oil leg was
tested and produced 1.9 million barrels of crude oil.

The natural gas from Malampaya provides clean fuel for five (5) power plants in Batangas.

COAL

The Philippines is largely a coal consuming country with coal having the highest contribution to the
power generation mix at 44.5% in 2015. But, local demand for coal is not limited to power generation. In
2015, the cement industry utilized 15.22% of the country’s coal supply, 5% went to other industries such
as alcohol, sinter, rubber boots, paper and chemical manufacturing, fertilizer production and smelting
processes.
 The coal industry has never been so robust than these past years. From a historical yearly average of 1.5
million MT, local coal production began increasing at a steady rate since 2002. Within a span of 13 years,
coal production has more than quintupled to an astounding 8.17 million MT in 2015, with a production
high of 8.4 million MT in 2014. This increase in production is attributed to the conversion of exploration
contracts into production agreements, as well as the development of production contracts into full
blown operations. Consumption likewise, increase steadily as new coal-fired power plants are installed
and industries switch to coal because of the highly volatile price of oil.

Potentials

The Philippines has a vast potential for coal resources just awaiting full exploration and development to
contribute to the attainment of the country's energy self- sufficiency program. As of 31 December 2015,
our in-situ coal reserves amount to 470 million metric tons or 19.7% of the country's total coal resource
potential of 2.39 billion metric tons.

Summary of Coal Reserves as of 31 December 2015

Resource Positive Probable In-situ Mineable

Coal Region
Potential Reserves Reserves Reserves Reserves
Cagayan Valley 336,000,000 80,104,730 3,695,000 82,568,063 70,182,854
Cebu          
Central 40,000,000 3,423,727 4,938,816 6,716,271 4,029,763
Northern 75,000,000 2,258,638 770,405 2,772,241 1,663,345
Southern 50,000,000 1,101,762 1,870,206 2,348,566 1,409,140
Davao 100,000,000 1,393,007 1,467,359 2,371,246 1,422,748
Masbate 2,500,000 74,994   74,994 44,996
Mindoro 100,000,000 1,310,641 198,000 1,442,641 865,585
Negros 4,500,000 1,204,037 1,213,387 2,012,962 1,207,777
Polillo, Batan &
17,000,000 5,316,404 2,178,296 6,768,601 4,061,161
Catanduanes
Quezon 2,000,000 93,000   93,000 55,800
Samar 27,000,000 7,474,890 1,667,725 8,586,707 7,278,807
Semirara 570,000,000 66,978,528 43,820,358 96,192,100 81,763,285
Surigao 209,000,000 29,076,912 60,978,034 69,728,935 47,666,536
Zamboanga 45,000,000 33,993,057 6,091,980 38,054,377 22,832,626
Bukidnon 50,000,000        
Maguindanao 108,000,000        
Sarangani 120,000,000        
South Cotabato 230,400,000 35,093,186 68,959,017 81,065,864 68,905,984
Sultan Kudarat 300,300,000        
Total 2,386,700,000 297,974,425 258,826,617 470,525,503 361,056,942
PHILIPPINE ENERGY PLAN ON FOSSIL FUELS

Oil
The country’s total primary oil supply is projected to grow by 3.4 percent per year on average in the
BAU scenario, from 17.7 MTOE in 2015 to 29.1 MTOE in 2030. It will continue to contribute
significantly to the country’s total energy mix, with an average share of 34.3 percent across the
entire planning horizon.
With an additional blending of biofuels and entry of alternative fuels for transport such as auto-LPG
jeepneys and electric vehicles (including e-trikes) from BAU scenario to CES, the country’s
dependence on oil is expected to decline at an average of 11.7 percent per year for the planning
period. Oil annual average share to the TPES will register at 29.2 percent, as the total oil supply
under CES will grow at a slower rate of 3.2 percent per year to 28.4 MTOE in 2030 (Figure 13).
Coal
Under the BAU, total coal supply will increase at a faster rate of 6.2 percent annually, rising by more
than twice its 2015 level of 11.6 MTOE to 28.1 MTOE in 2030, while bringing its share in the TPES to
33.0 percent in 2030, from 22.5 percent in 2015. The increase in coal supply is due to the significant
contribution of coal as fuel input for power generation as an estimated aggregated capacities of
around 13,265 megawatts (MW)
of new coal generating plants will be considered within the
planning period. There is also an increasing requirement of coal in the industry sector, specifically for
cement and basic metals production. On the other hand, coal supply under the CES will
increase at a slower rate of 2.8 percent, reaching 17.5 MTOE level in 2030, while halving its share
from the BAU to TPES in 2030 to 18.6 percent. This is consistent with the government’s efforts in
promoting the utilization of renewable energy and cleaner fuels in power generation for
environmental considerations under the CES scenario.
Natural Gas
Under the BAU, natural gas is projected to increase at a rate of 3.6 percent per year across the entire
planning horizon, from 2.9 MTOE in 2015 to 4.9 MTOE in 2030 . The country’s gas supply
outlook will still be largely hinged on the production of the Malampaya field, including additional gas
(uncontracted gas) until 2025. Aside from the Libertad gas field in Cebu which started commercial
production in 2010, potential gas fields foreseen to produce commercially within the next 20 years
include San Martin by 2015, Sultan sa Barongis and Sampaguita by 2023, Sulu Sea by 2025, among
others.
Meanwhile, natural gas supply will grow faster under CES by 9.8 percent per year, as levels increase
by as much as four (4) times its 2015 level to reach 11.7 MTOE in 2030. Assuming realization of
production targets, the growth will also be largely due to the government’s effort to promote the
utilization of green fuel15 for power generation.

RENEWABLE ENERGY

GEOTHERMAL

The introduction of geothermal power had been stagnant in the Philippines since 2000, but the
enactment of a bill on renewable energies in 2009 has set things in motion once again through the
adoption of preferential legal and economic measures for the introduction of renewable energies
(including geothermal power). In its roadmap of the National Renewable Energy Plan (2010 - 2030) it
planned to adopt 15,236 MW of geothermal power by the year 2030. Its current capacity of 1,843 MW
from 2013 has fallen off from its 1,904 MW from back in 2010 on account of the aging of facilities and
the fact that they are under construction to rehabilitate them from said aging.

HYDROPOWER

Given the country's vast hydropower potential, more than 10 percent of electricity requirements will be
supplied by hydropower generation. To meet the expected increase in demand for power over the
planning period, a total of 2,950 MW of hydropower capacity will be available within both grid and off-
grid areas. Committed and indicative capacity additions will increase overall hydropower available
capacity to 5,468 MW from the current installed capacity of 2,518 MW (Table 5). Eighteen (18) large
hydropower potentials are estimated to account for more than 90 percent of the possible additional
capacity while the remainder will be supplied by mini-hydro potentials. In addition, 490 kW of micro-
hydro power plants are targeted for installation for the planning horizon. These micro-hydropower
plants will be tapped to support the government's rural electrification program targeting 100 percent
barangay (or village) electrification by 2006. The committed capacity addition is expected to provide 7.7
TWh of electricity per year equivalent to a fuel oil displacement of 12.9 MMBFOE.

Station Location Status Capacity (MW)

  
Agus 1 Hydroelectric Power Marawi City, Lanao del Sur Operational 80
Plant
Agua-Grande Hydroelectric Pagudpud, Ilocos Norte Operational 80
Power Plant
Agus 6 Hydroelectric Power Iligan City, Lanao del Norte Operational 200
Plant
Agusan 2 Hydroelectric Power Manolo Fortich, Damilag, Operational 1.6
Plant Bukidnon
 
Ambuklao Hydroelectric Bokod, Benguet Operational 105
Power Plant
Lon-oy Hydro Lon-oy, San Gabriel, La Union Operational 3.6
Talomo Hydro 2B Brgy. Mintal, Davao City Operational 0.3
Talomo Hydro 3 Brgy. Catalunan Pequeño, Operational 1.92
Davao City
Sabangan Hydro Sabangan, Mt. Province Under- 14
Construction
Linao Cawayan Mini-Hydro Oriental Mindoro Operational 3
Power Plant
  Total 127.82

BIOMASS

Biomass energy has, and continues to play a vital role in the Philippines’ energy supply. Nearly 30
percent of the energy for the 100 million plus people living in the Philippines comes from biomass, and is
mainly used for household cooking by the rural population. Biomass energy sources, account for
approximately 15 percent of the primary energy use in the Philippines. These resources that are
available in the Philippines can generate biomass power projects with a potential capacity of more than
200 MW. It is estimated that about 70 percent of this biomass use can be traced to the cooking needs of
the residential sector, as compared to the industrial and commercial applications that account for the
remainder.

WIND POWER

Wind power in the Philippines makes up a small percentage of the total energy output of the
Philippines. The following are the existing Wind Power Plants in the country.

Installed
Operating Start of
  Project name Turbine capacity
company operations
(MW)
1 Bangui Bay Wind NorthWind Power Neg Micon 33 Phase 1 and
Power Project Development 1.65MW×15 2 : January
 2006.
Corporation Phase3 :
 Siemens　3MW×6 18
October 2014.
Burgos　Wind EDC Burgos Wind November
2  Vestas 3MW×50 150
Power Project Power Corporation 2014.
North Luzon
Caparispisan Wind  Siemens　 November
3 Renewable Energy 81
Power Project 3MW×27 2014.
Corporation
Trans-Asia
San Lorenzo Wind December
4 Renewable Energy  Gamesa 2MW×27 54
Power Project 2014.
Corporation
Pililla Wind Power Alternergy Wind
5  Gamesa 2MW×27 54 June 2015.
Project One Corporation
Nabas Wind Power PetroWind Energy
6  Gamesa 2MW×18 36 June 2015.
Project Inc.
        426  

SOLAR POWER

NATIONAL RENEWABLE ENERGY PROGRAM

The National Renewable Energy Program (NREP) outlines the policy framework enshrined in Republic
Act 9513. It sets the strategic building blocks that will help the country achieve the goals set forth in the
Renewable Energy Act of 2008. The NREP signals the country's big leap from fragmented and halting RE
initiatives into a focused and sustained drive towards energy security and improved access to clean
energy.
The NREP sets out indicative interim targets for the delivery of renewable energy within the timeframe
of 2011 to 2030. Meeting the massive targets upto 2020 will be challenging as detailed planning,
financing, and building of renewable energy infrastructure will have to be undertaken at a scale, and
within a time frame, never done before.

The NREP lays down the foundation for developing the country's renewable energy resources,
stimulating investments in the RE sector, developing technologies, and providing the impetus for
national and local renewable energy planning that will help identify the most feasible and least-cost
renewable energy development options.

GEOTHERMAL
HYDROPOWER

BIOMASS
WIND POWER
SOLAR POWER
POTENTIAL OCEAN THERMAL ENERGY CONVERSION
POTENTIAL WAVE POWER SITES