PEP 2020-2040 Signed 01102022

Department
of ENERGY
PHILIPPINE
ENERGY
PLAN
Towards a
Sustainable and
Clean Energy
Future
MESSAGE
Towards a Sustainable and Clean Energy Future
President Rodrigo R. Duterte sees climate change as a

real and enormous challenge for government. It is slowly
devastating the global environment and economy. Now is
the time to be conscientious about the energy resources
we use and in curbing greenhouse gas emissions, with
climate justice as an integral component and a meaningful
partnership, not only with our local partners, but also with
the international community.
In this perspective, the Philippine Energy Plan (PEP) 2020-2040 has been formulated as a
transformational plan to bring in more of the clean energy fuels and technologies that will dominate our
portfolio of plans and programs for the next two decades.
Through the PEP, we will rally towards energy security, resiliency, access and affordability in the realm
of our long-term clean energy commitment. This PEP advocates for the development and use of existing
and emerging technologies in the most efficient and sustainable manner.
And what does this hold for every Filipino?
It will mean a more energy-secured and resilient Philippines.
It will mean the use of more locally available clean energy fuels such as solar, wind, hydro, geothermal
and natural gas that will help create a healthy and safe environment for future generation.
It will mean more “green” energy jobs and investments that will lift communities out of the poverty line,
as well as help pump-prime the economy that is badly shaken by the pandemic.
And in the long-term, it will mean achieving the Ambisyon Natin 2040 goals of government for every
Filipino, as well as realizing our targets under the Nationally Determined Contribution (NDC).
With this PEP, the reality of inclusive economic growth for the country will not be far behind. But there
is plenty of work to be done. This energy plan is just the starting point. Cooperative effort between
government and the private sector has a key role to play in championing the strategic targets of the
PEP.
Let us work together, be pro-active and dynamic participants in accelerating the PEP’s long-term
strategies with emphasis on green, resilient, and inclusive energy development.
Mabuhay and keep safe everyone!
ALFONSO G. CUSI
PHILIPPINE ENERGY PLAN 2020 - 2040

Secretary’s Message
List of Tables and Figures i
Abbreviations and Acronyms vii
Overview 1
Ensuring Energy Services 24/7
Creating Wealth for the Filipino
Consumer Empowerment
Promoting the National Interest with the International Community
I. ENERGY SITUATIONER 28
II. ENERGY ROADMAPS

A. Conventional Energy 43
B. Downstream Industry 57
C. Renewable Energy 78
D. Power Development 95
E. Energy Efficiency and Conservation 139
F. Alternative Fuels and Emerging Technologies 149
III. STRATEGIC FOCUS AREAS
A. Energy Supply and Demand Outlook 169
(Promoting Energy Security Through Clean Energy Fuels and
Technologies)
B. Environmental Management 202
C. Resiliency and Security of Energy Infrastructures 210
D. Collaboration with the Attached Agencies 228
E. Forging Strategic Alliances with the International 238
Community
ANNEXES 249
List of Policies, Regulations and Standards 272

TABLES
Overview
Table 1. Summary Table of Energy Data
Table 2. Total Energy Investment Requirements by Scenario, 2020-2040
(PhP Billion @2020 Prices)
Energy Situationer
Table 3. Agriculture Energy Consumption by Subsector
Table 4. GHG Emission by Sector (2019 vs. 2020)
Table 5. GHG Emission by Fuel (2019 vs. 2020)
Table 6. CO2 Avoidance from Mitigation Measures, Thousand Ton CO 2e (ktCO2e)
Conventional Fuels
Table 7. Petroleum Service Contracts
Table 8. Petroleum Reserves, Resources and Production
Table 9. Projected Investments on Oil and Gas (2021-2040)
Table 10. List of Coal Operating Contracts (as of 31 December 2020)
Table 11. 2020 Coal Consumption, in MMMT
Table 12. Coal Demand Outlook
Table 13. Coal Reserves, in MMMT (as of 31 December 2020)
Table 14. Projected Investments on Coal (2021-2040)
Downstream Industry
Table 15. Potential Investment in the Development of LNG Terminal
Table 16. Estimated Employment Generation
Table 17. Number of Players with Investments
Table 18. Cumulative Number of Retail Outlets
Table 19. Existing Downstream Oil Facilities
Table 20. Depot/Storage Facility per Region and the Sales per Region, MB
Table 21. Quality of Petroleum Products
Table 22. Petroleum Process and Facilities
Table 23. Code of Safety Practices
Table 24. Investment in Oil Facility, 2020 vs. 1Q 2021
Table 25. LPP Retail Outlets and LPG Establishments Investment, 2021 (1 st Quarter)
Table 26. Depot Capacity Requirement and Investment
Table 27. Import Terminal Requirement and Investment
Table 28. Impact of Excise Tax on Petroleum, FY 2020
Renewable Energy
Table 29. Biofuels Capacity and Production
Table 30. SAWP Fund (as of 31 December 2020)
ii PHILIPPINE ENERGY PLAN 2020 - 2040

Table 31. Registered with Notice to Proceed / For Construction
Table 32. Biofuels Production Capacity (MLPY)
Table 33. Biodiesel Additional Production Capacity and Investment Requirements
Table 34. Bioethanol Additional Production Capacity and Investment Requirements
Table 35. Summary of RE Projects under RE Act of 2008 (as of 31 December 2020)
Table 36. Fit Installation Targets and Fit Rates (as of March 2021)
Table 37. Summary of Investment Cost under the Pre-Development Stage
Power Development
Table 38. List of Newly Commissioned Power Plants in 2020 (On-Grid)
Table 39. NGCP Contracted as Capacities for RR, CR, and DR (December 2020)
Table 40. Summary of Committed Power Projects (as of 31 December 2020)
Table 41. Summary of Indicative Power Projects (as of 31 December 2020)
Table 42. Summary of Completed Transmission Projects, 2019-2020
Table 43. Delayed Transmission Projects in 2020
Table 44. Summary of Transmission Projects
Table 45. Status of Mindanao-Visayas Interconnection Project, December 2020
Table 46. 2019 Capital Expenditures Projects
Table 47. Summary of RCOA Registration
Table 48. WESM Mindanao Registration Status (as of 21 May 2021)
Table 49. Promulgated DCs related to WESM Amendments
Table 50. Potential Small Island Interconnections
Table 51. Household Electrification by Grid (as of December 2020)
Table 52. Status of Reconciled vs. Remitted Funds to Host Beneficiaries (as of August 2021)
Table 53. DOE’s Locally Funder Project (LFP) on PVM
Table 54. EU-AEPS PVM Component (as of December 2020)
Table 55. QTP Projects (as of December 2020)
Table 56. Indicative Privatization Schedule for Generation Assets (as of June 2021)
Table 57. Indicative Privatization Schedule for IPP Contracts (as of June 2021)
Table 58. Investment Requirements for Generation Projects (PhP Billion) at 2020 Prices
Table 59. Investment Requirements for Transmission Projects (PhP Billion)
Table 60. Estimated Job Generation in Power Generation Projects
Energy Efficiency and Conservation

Table 61. Green Building Projects
Table 62. Investments from ESCO Projects
Table 63. EEC Projects of DEs
Table 64. Investment Opportunities
Alternative Fuels
Table 65. Major Accomplishments of the Nuclear Energy Program under the Roadmap
Table 66. NEP-IAC Subcommittees
Table 67. Projected EV by 2040
Energy Supply and Demand Outlook

Table 68. Demand and Supply Targets for Energy Outlook 2020-2040
Table 69. Power Demand and Supply Outlook Assumptions
Table 70. Parameters for Peak Demand Forecast
Table 71. Transport Final Energy Consumption by Fuel (MTOE)
Table 72. Household Final Energy Consumption by Fuel (MTOE)
Table 73. Industry Final Energy Consumption by Fuel (MTOE)
Table 74. Services Final Energy Consumption by Fuel (MTOE)
Table 75. Agriculture Final Energy Consumption by Fuel (kTOE)
Table 76. Peak Demand and Electricity Sales
Table 77. Gross Generation Output by Fuel (TWh)
PHILIPPINE ENERGY PLAN 2020 - 2040 iii

Table 78. Installed Capacity by Fuel (MW)
Table 79. Total Primary Energy Supply by Fuel (MTOE)
Table 80. TFEC under Reference Scenario by Sector, 2019-2024
Table 81. TFEC under Reference Scenario by Fuel, 2019-2024
Table 82. TPES under Reference Scenario by Fuel, 2019-2024
Table 83. Gross Generation by Fuel (TWh), 2020 vs. 2040 for REF vs. CES
Table 84. Installed Capacity by Fuel (MW), Clean Energy Scenario
Table 85. Fuel Input to Power Generation by Fuel (MTOE), REF vs. CES
Table 86. Non-Power Requirements by Fuel (MTOE), REF vs. CES
Table 87. Electricity Rates in PH based on Blended Cost (USD/kWh)
Environmental Management
Table 88. GHG Emissions of Highlight Years and NDC (MTCO2e)
Table 89. NDC Target Assessment Highlight Years (MTCO2e)
Resiliency and Security of Energy Infrastructures

Table 90. Summary of Estimated Damage Cost of Electric Cooperatives, 2014-2020
Table 91. Energy Sector COVID-19 Responses and Measures
Table 92. Energy Security Challenges
Collaboration with the Attached Agencies

Table 93. List of Solar PV Projects
Forging Strategic Alliances with the International Community

Table 94. Key Articles of the Agreement
FIGURES
Overview
Figure 1. Philippine Energy Flow 2020, MTOE
Figure 2. Philippine Energy Flow 2040, REF (MTOE)
Figure 3. Philippine Energy Flow 2040, CES (MTOE)
Energy Situationer
Figure 4. Total Final Energy Consumption by Sector (2019 vs. 2020), MTOE
Figure 5. Total Final Energy Consumption by Sectoral Shares (2020 vs. 2019)
Figure 6. Total Final Energy Consumption by Fuel (2019 vs. 2020)
Figure 7. Total Final Energy Consumption by Fuel Shares (Percent), 2020
Figure 8. Transport Final Energy Consumption by Subsector (Percent), 2020
Figure 9. Transport Final Energy Consumption by Fuel (Percent), 2020
Figure 10. Energy Consumption of the Residential Sector by Fuel Shares (Percent), 2020
Figure 11. Energy Consumption of the Industrial Sector by Subsector (Percent), 2020
Figure 12. Energy Consumption of the Industry by Fuel Shares (Percent), 2020
Figure 13. Energy Consumption of the Services Sector by Fuel Shares (Percent), 2020
Figure 14. Energy Consumption of the Agriculture Sector by Fuel (% Shares), 2020
Figure 15. Refinery Production by Fuel (2019 vs. 2020), MTOE
Figure 16. Power Generation by Fuel (2019 vs. 2020), TWH
Figure 17. Fuel Input to Power Generation by Fuel (2019 vs. 2020), MTOE
Figure 18. Total Primary Energy Mix by Fuel (2019-2020), % Shares
Figure 19. Net Energy Imports by Fuel (% Shares), 2020
Figure 20. Actual GHG Emission, Hypothetical GHG Emission and GHG Avoidance,
2000-2020
iv PHILIPPINE ENERGY PLAN 2020 - 2040

Figure 21. Energy Intensities (2019 vs. 2020)
Figure 22. Energy Elasticities (2019 vs. 2020)
Figure 23. Energy per Capita (2019 vs. 2020)
Figure 24. Environmental Emission Indicators (2019 vs. 2020)
Conventional Fuels
Figure 25. Petroleum Basin Prospectivity Map
Figure 26. Philippine Petroleum Service Contracts
Figure 27. Upstream Oil and Gas Roadmap
Figure 28. Upstream Coal Roadmap
Figure 29. Coal Resources in the Philippines
Downstream Industry
Figure 30. Downstream Natural Gas Roadmap
Figure 31. Downstream Oil Industry
Renewable Energy
Figure 32. Biofuels Roadmap
Figure 33. Milestone on RE Generating Capacity (MW)
Figure 34. Newly Installed RE Capacity
Figure 35. Maps of Existing RESCs (as of December 2020)
Figure 36. Geothermal Offered Areas
Figure 37. 25 Candidate CREZs
Figure 38. RE Roadmap
Figure 39. RE Development Partners
Power Development
Figure 40. Existing Power System
Figure 41. Power Generation Roadmap
Figure 42. Ideal Location of Power Plants, Luzon
Figure 43. Ideal Location of Power Plants, Visayas
Figure 44. Ideal Location of Power Plants, Mindanao
Figure 45. Power Transmission Roadmap
Figure 46. Tuguegarao-Lal-lo (Magapit) 230 kV TL
Figure 47. Ambuklao-Binga 230 kV TL
Figure 48. Binga-San Manuel 230 kV TL
Figure 49. San Manuel-Nagsaag 230 kV TL
Figure 50. San Jose-Angat 115 kV Line Upgrading
Figure 51. Western Luzon Backbone Stage 1 (Castillejos-Hermosa 500 kV TL)
Figure 52. Hermosa-San Jose 500 kV TL
Figure 53. Mariveles-Hermosa 500 kV TL
Figure 54. Clark-Mabiga 69 kV TL
Figure 55. Navotas 230 kV Substation
Figure 56. Antipolo 230 kV Substation
Figure 57. Taguig 500 kV Substation
Figure 58. Pagbilao 500 kV Substation
Figure 59. Tuy 500/230 kV Substation Project/Tuy-Dasmariñas 500 kV
Figure 60. Tiwi 230 kV Substation
Figure 61. Tower Structure Upgrading of Bicol Transmission Facilities
Figure 62. Batangas-Mindoro Interconnection
Figure 63. Cebu-Negros-Panay 230 kV Backbone Project – Stage 1
Figure 66. Cebu-Bohol 230 kV Interconnection
Figure 67. Cebu-Lapu-Lapu 230 kV Transmission
PHILIPPINE ENERGY PLAN 2020 - 2040 v

Figure 68. Naga (Visayas) Substation Upgrading
Figure 69. Panitan-Nabas 138 kV TL – Line 2 (2nd Circuit Stringing)
Figure 70. Sta.Rita-Quinapondan 69 kV TL
Figure 71. Agus 2 Switchyard Upgrading and Rehabilitation
Figure 72. MSUP
Figure 73. MSRP – Stage 1
Figure 74. Transmission Master Plan
Figure 75. Mindanao-Visayas Interconnection
Figure 76. Power Distribution Roadmap
Figure 77. Supply Roadmap
Figure 78. Electricity Market Roadmap
Figure 79. Strategies to Reduce UCME Subsidies
Figure 80. Off-Grid Development Roadmap
Figure 81. Household Electrification, 2019-2020
Figure 82. Household Electrification by Grid, 2020
Figure 83. Total Electrification Program
Figure 84. Overarching Policies and Programs

Figure 85. Energy Efficiency and Conservation Roadmap
Alternative Fuels and Emerging Technologies

Figure 86. Alternative Fuels and Energy Technologies Roadmap
Figure 87. NPP Roadmap
Figure 88. No. of EVs Registered per Type of Vehicle (2010-2019)
Figure 89. No. of EVs Registered per Year (2010-2019)
Energy Supply and Demand Outlook

Figure 90. PDP 2017-2022 Reforms Instituted and 4-Pillar Socioeconomic Strategy against COVID-19
Figure 91. Total Final Energy Consumption by Sector (MTOE), 2000-2040
Figure 92. Total Final Energy Consumption by Average Shares per Sector (Percent), 2020-2040
Figure 93. Final Energy Consumption by Fuel Shares (Percent), Average for 2020-2040
Figure 94. Transport Final Energy Consumption by Fuel (MTOE), 2000-2040
Figure 95. Household Final Energy Consumption by Fuel (MTOE), 2000-2040
Figure 96. Industry Final Energy Consumption by Fuel (MTOE), 2000-2040
Figure 97. Services Final Energy Consumption by Fuel (MTOE), 2000-2040
Figure 98. Agriculture Final Energy Consumption by Fuel (kTOE), 2000-2040
Figure 99. Gross Generation Output by Fuel (TWh), 2000-2040
Figure 100. Total Installed Capacity (Existing, Committed, and New Build) (MW), 2021-2040
Figure 101. 2040 Energy Supply for Power Applications, Reference Scenario - Fuel Shares (%)
Figure 102. 2040 Energy Supply for Non-Power Applications, Reference Scenario – Fuel Shares (%)
Figure 103. Net Energy Imports, by Fuel Type, Reference Scenario (in kTOE), 2021-2040
Figure 104. GHG Emission, by Sector and by Fuel: Reference Scenario (in MTCO2e), 2020-2040
Figure 105. Sectoral and Fuel Level Difference, Clean Energy vs. Reference, 2021-2024 (MTOE)
Figure 106. Level Difference, Clean Energy vs. Reference, 2021-2024 (MTOE)
Figure 107. Sectoral and Fuel Fuel Shares, 2040 Reference vs. Clean Energy Scenario
Figure 108. Level Changes in TFEC by Sector (CES-REF) (MTOE), 2021-2040
Figure 109. Level Changes in TFEC by Fuel (CES-REF) (MTOE), 2021-2040
Figure 110. Level Changes in Electricity Sales (TWh) and Peak Demand (MW) (CES-REF),
2021-2040
Figure 111. 2040 Gross Generation Mix by Fuel Shares, Reference vs. Clean Energy
Figure 112. Level Changes in Installed Capacities by Fuel (CES-REF) (MW) 2021-2040
Figure 113. TPES by Fuel, Levels and Differences for CES-REF (MTOE), 2021-2040
Figure 114. Level Changes in Indigenous Energy by Fuel (CES-REF) (MTOE), 2021-2040
Figure 115. Level Changes in Net Energy Import by Fuel (CES-REF) (MTOE), 2021-2040
Figure 116. Level Changes in GHG Emission by Sector (CES-REF) (MTCO2e), 2021-2040
vi PHILIPPINE ENERGY PLAN 2020 - 2040

Figure 117. Level Changes in GHG Emission by Fuel (CES-REF) (MTCO2e), 2021-2040
Figure 118. Self-Sufficiency excluding Traditional Biomass
Figure 119. Variable RE Share to Total Generation
Figure 120. Peak Demand, 25% Reserve Margin vis-à-vis Net Capacity by Scenario
Figure 121. Reserve Margin with VRE Capacity Credit = Zero
Figure 122. Reduction Targets of Energy Intensity (2005=100)
Figure 123. RE Capacity Shares Target by 2025 of ASEAN
Figure 124. Blended Cost of Electricity Generation
Figure 125. Comparative Electricity Rates (USD/KWH) in ASEAN Region (as of June 2021)
Figure 126. Modern Fuel Energy Consumption per Capita vs. GDP per Capita
Figure 127. GHG Intensity, 2005-2040
Figure 128. GHG Emission per Capita
Figure 129. GHG Emission per Capita vs. GDP per Capita
Figure 130. 2018 Philippine Land Cover Distribution by Type
Figure 131. Solar Land Requirements
Figure 132. Impact of Energy Transition to Fuel Shares (%)
Environmental Management
Figure 133. Environmental Management
Figure 134. GHG Emissions and Avoidance of NDC Targets and 2020-2040 CES
Figure 135. Power Sector Transition
Resiliency and Security of Energy Infrastructures

Figure 136. Compliance Rate of Active Projects, per Sector (as of 2020)
Figure 137. Generated Estimated Effects from Ground Shaking Hazard in NCR using the Rapid
Earthquake Damage Assessment Software (REDAS)
Figure 138. Timeline of Activities on the NECP Updating
Figure 139. Task Force on Energy Resiliency (TFER)
Figure 140. Timeline of Disaster Events Responded by the Energy in 2020
Figure 141. Track of Typhoon “Quinta” (Molave)
Figure 142. ERP Plans and Programs
PHILIPPINE ENERGY PLAN 2020 - 2040 vii

ACRONYMS
ABBREVIATIONS
F AND
ACRONYMS
4Ps Pantawid Pamilyang Pilipino Program
AAGR Average Annual Growth Rate
ACUs Air-Conditioning Units
ADB Asian Development Bank
AEECR Annual Energy Efficiency and Conservation Reports
AETI Asia Energy Transition Initiative
AEUR Annual Energy Utilization Report
AFET Alternative Fuels and Energy Technologies
AFF Agriculture, Fishery and Forestry
AFOC ASEAN Forum on Coal
AFP Armed Forces of the Philippines
AFs Alternative Fuels
AFTA ASEAN Free Trade Area
AFVs Alternative Fuel Vehicles
AG&P Atlantic Gulf & Pacific Company of Manila, Inc
AGP Asia Gas Partnership
AI Artificial Intelligence
AIEC Association of Isolated Electric Cooperatives Inc.
AMEM ASEAN Ministers on Energy Meeting
AMEM-METI ASEAN Ministers on Energy and the Ministry of Economy, Trade and Industry
AMS ASEAN Member States
AMTB ASEAN Matters Technical Board
AO Administrative Order
APAEC ASEAN Plan of Action for Energy Cooperation
APEC Asia Pacific Economic Cooperation
APG ASEAN Power Grid
APRP Agus-Pulangi Rehabilitation Project
ARIS Agno River Irrigation System
AS Ancillary Services
ASEAN Association of Southeast Asian Nations
ASEP Access to Sustainable Energy Programme
ASF African Swine Fever
ASPA Ancillary Services Procurement Agreement
AS-TWG Ancillary Service-Technical Working Group
B2 2% Biodiesel Blend
B5 5% Biodiesel Blend
BARMM Bangsamoro Autonomous Region in Muslim Mindanao
BAU Business-As-Usual
BBL Barrel
BCF Billion Cubic Feet
BCP Business Continuity Plan
BECE BIMP-EAGA Energy Online Conference & Exhibition
BEOC Biomass Energy Operating Contract
BERDE Building for Ecologically Responsive Design Excellence
BESS Battery Energy Storage System
BEV2025 BIMP-EAGA Vision 2017-2025
viii PHILIPPINE ENERGY PLAN 2020 - 2040

ACRONYMS
BIMP Brunei-Indonesia-Malaysia-Philippines
BIMP-EAGA BIMP-East ASEAN Growth Area
BIR Bureau of Internal Revenue
B-LEADERS Building Low Emission Alternatives to Develop Economic Resilience and Sustainability
BLEP Barangay Line Enhancement Program
BMT Billion Metric Tons
BNPP Bataan Nuclear Power Plant
BOC Bureau of Customs
BOI Board of Investments
BOJ Board of Judges
BPO Business Process Outsourcing
BSP Bangko Sentral ng Pilipinas
BTPP Bataan Thermal Power Plant
CAB Civil Aeronautics Board
CBK Caliraya-Botocan-Kalayaan
CC Contestable Customers
CCPP Combined Cycle Power Plant
CCUS Carbon Capture Utilization and Storage
CEA Certified Energy Auditor
CECO Certified Energy Conservation Officer
CEM Certified Energy Manager
CEM Capacity Expansion Model
CEPNS Certificate of Energy Project of National Significance
CES Clean Energy Scenario
CEVR Comprehensive Roadmap on Electric Vehicles
CEZA Cagayan Economic Zone Authority
CFF Cities Finance Facility
CFLs Compact Fluorescent Lamps
CFPP Coal-Fired Power Plant
CHED Commission on Higher Education
CIAP Construction Industry Authority of the Philippines
ckt-km Circuit-Kilometers
CME Coco Methyl Ester
CNG Compressed Natural Gas
CO2 Carbon Dioxide
COA Certificate of Accreditation
COA Certificate of Analysis
COCs Certificate of Concurrences
COC Coal Operating Contract
COE Certificate of Endorsement
COP Conference of the Parties
COPE Code of Practice on Energy Labeling
COR Certificate of Registration
COTELCO Cotabato Electric Cooperative, Inc.
COVID-19 Corona Virus Disease
CPA Clean Power Asia
CR Contingency Reserve
CRB Central Registration Body
CREATE Corporate Recovery and Tax Incentives for Enterprise
CREZ Competitive Renewable Energy Zone
CRNTP Certificate of Registration with Notice to Proceed
CRSS Central Registration and Settlement System
CSP Competitive Selection Process
CSPF Cooling Seasonal Performance Factor
CSR Corporate Social Responsibility
CTRP Comprehensive Tax Reform Program
CvSU Cavite State University
PHILIPPINE ENERGY PLAN 2020 - 2040 ix

ACRONYMS
DA Department of Agriculture
DAO Department Administrative Order
DAR Department of Agrarian Reform
DASURECO Davao del Sur Electric Cooperative, Inc.
DBCC Development Budget Coordination Committee
DBM Department of Budget and Management
DC Department Circular
DC Direct Current
DDP Distribution Development Plan
DENR Department of Environment and Natural Resources
DENR-EMB DENR - Environmental Management Bureau
DEPDMDS DOE’s Electric Power Industry Database Management System
DePED Department of Education
DERs Distributed Energy Resources
DE Designated Establishment
DFA Department of Foreign Affairs
DFLs Double-Capped Fluorescent Lamps
DILG Department of Interior and Local Government
DLF Development and Livelihood Fund
DND Department of National Defense
DO Department Order
DOD Deeds of Donation
DOE Department of Energy
DOF Department of Finance
DOH Department of Health
DOJ Department of Justice
DOLE Department of Labor and Employment
DONGOP Downstream Oil and Natural Gas Online Platform
DOR Daily Operations Report
DOST Department of Science and Technology
DOST-ITDI DOST - Industrial Technology Development Institute
DOST-PCIEERD DOST - Philippine Council for Industry, Energy and Emerging Technology
Research and Development
DOTr Department of Transportation
DPP Diesel Power Plant
DPWH Department of Public Works and Highways
DR Dispatchable Reserve
DREAMS Renewable Energy Applications Mainstreaming and Market Sustainability
DSM Demand Side Management
DSWD Department of Social Welfare and Development
DTI Department of Trade and Industry
DTI-BPS Department of Trade and Industry - Bureau of Product Standards
DUs Distribution Utilities
E10 10% Bioethanol Blend
EAMS Energy Application Monitoring System
EAR Energy Annual Report
EAS East Asia Summit
EAT Energy Audit Team
EBT Energy Balance Table
ECA Economic Consulting Associates
ECERF Electric Cooperatives Emergency and Resiliency Fund
ECPs Energy Consuming Products
ECQ Enhance Community Quarantine
ECs Electric Cooperatives
EDGE Enhancing Development and Growth
EDSS Energy Database System for Sectors
EEC Energy Efficiency and Conservation
x PHILIPPINE ENERGY PLAN 2020 - 2040

ACRONYMS
EEC Efficiency in Electricity Consumption

EEF Energy Efficiency Factor
EEPR Energy Efficiency Performance Rating
EER Energy Efficiency Ratio
EEZ Exclusive Economic Zone
EF Electrification Fund
EHV Extra High Voltage
EICC Energy Investment Coordinating Council
EMS Energy Management Systems
EO Executive Order
EODB Ease of Doing Business
EPAP Ethanol Producers Association of the Philippines
EPGG Energy Policy and Governing Group
EPIRA Electric Power Industry Reform Act
EPIRA-IRR EPIRA - Implementing Rules and Regulations
ER Energy Regulations
ERC Energy Regulatory Commission
ERP Emergency Response Protocol
ERTF Energy Resiliency Task Force
ESB Energy Supply Base
ESCAP Economic and Social Commission for Asia and the Pacific
ESCO Energy Service Company
ESI Energy Security Initiative
ESIA Environmental and Social Impact Assessment
ESS Energy Storage Systems
ETC Energy Transition Council
ETP Energy Transition Partnership
EU European Union
EV Electric Vehicle
EVAP Electric Vehicle Association of the Philippines
EVCS Electric Vehicle Charging Station
EVOSS Energy Virtual One-Stop Shop
EWDO Enhanced WESM Design and Operation
EWG Energy Working Group
FEED Front-End Engineering Design
FGD Focus Group Discussion
FIRST Foundational Infrastructure for the Responsible Use of Small Modular Reactor Technology
FIST Financial Institutions Strategic Transfer
FiT Feed-in-Tariff
FMP Farm Mechanization Program
FPEI Fort Pilar Energy Inc.
FPIEC First Philippine Island Energy Corporation
FSRU Floating Storage and Regasification Unit
FSU Floating Storage Unit
FTAA Financial and Technical Assistance Agreement
G2G Government-to-Government
GDP Gross Domestic Product
GEAP Green Energy Auction Program
GEEP Government Energy Efficiency Project
GEF Global Environment Facility
GEMP Government Energy Management Program
GenCos Generating Companies
GEOP Green Energy Option Program
GHG Greenhouse Gas
GMA Greater Manila Area
GOMP Grid Operating and Maintenance Program
GPDP Gas Policy Development Project
PHILIPPINE ENERGY PLAN 2020 - 2040 xi

ACRONYMS
GPOBA Global Partnership on Output-Based Aid Grants

GRDP Gross Regional Domestic Product
GSIS Government Service Insurance System
GSLFAP Gasoline Station Lending and Financial Assistance Program
GSPA Gas Sales Purchase Agreement
GVA Gross Value Added
GW Gigawatt
GWh Gigawatt-hour
has Hectares
HB House Bill
HECS Household Energy Consumption Survey
HEM High Efficiency Motors
HEPP Hydro Electric Power Plant
HERO Hydrogen Energy Release Optimizer
HEVs Hybrid Electric Vehicles
HFCE Household Final Consumption Expenditure
HFEC Hydrogen and Fusion Energy Committee
HSSE Health, Safety, Security and Environment
HSSE-IMT Health, Safety, Security, Environment Inspection and Monitoring Team
HTI Hydrogen Technology Inc.
HVDC High-Voltage Direct Current
i3s Inclusive Innovation Industrial Strategies
IAEA International Atomic Energy Agency
IAEEC Inter - Agency Energy Efficiency and Conservation Committee
IATEC Inter - Agency Technical Evaluation Committee
IATF Inter - Agency Task Force
IATF-EID IATF - Emerging Infectious Diseases
ICE Internal Combustion Engine
ICT Information and Communication Technology
IEA International Energy Agency
IEC Information, Education and Communication
IECC Inter - Agency Energy Contingency Committee
IEEJ Institute of Energy Economics, Japan
IEMOP Independent Electricity Market Operator of the Philippines
ILECO II Iloilo II Electric Cooperative, Inc.
IMF International Monetary Fund
IMO Independent Market Operator
INDC Intended Nationally Determined Contributions
INGRF Ilijan Natural Gas Receiving Facility
INIR Integrated Nuclear Infrastructure Review
IOSP Interim Oil Stockpiling Program
IPCC Intergovernmental Panel on Climate Change
IPP Investments Priorities Plan
IPP Independent Power Producer
IPPA Independent Power Producer Administrators
I-PURE Integration of Productive Uses of Renewable Energy
IRR Implementing Rules and Regulations
IT-BPM Information Technology and Business Process Management
JAIF Japan Atomic Industrial Forum Inc.
JAO Joint Administrative Order
JICA Japan International Cooperation Agency
JICC Japan International Cooperation Center
JOGMEC Japan Oil, Gas and Metals National Corporation
JSA Joint Study Agreement
KEPCO Korea Electric Power Corporation
KHNP Korea Hydro and Nuclear Power
km2 Square Kilometer
xii PHILIPPINE ENERGY PLAN 2020 - 2040

ACRONYMS
KMS Knowledge Management System

kms Kilometers
KOICA Korean International Cooperation Agency
KTCO2 Kiloton CO2
KTOE Kilotons of Oil Equivalent
kVA Kilovolt-Ampere
kW Kilowatts
kWh Kilowatt-Hour
kWp Kilowatts Peak
LASURECO Lanao del Sur Electric Cooperative, Inc.
LCEP Low Carbon Energy Program
LEAP Long-range Energy Alternatives Planning System
LED Light Emitting Diode
LED Low Emission Development
LEDS Low Emission Development Strategies
LEECP Local Energy Efficiency and Conservation Plan
LEED Leadership in Energy and Environmental Design
LFP Locally Funded Project
LFRO Liquid Fuels Retail Outlets
LGUGC Local Government Unit Guarantee Corporation
LGUOU Local Government Utilities-Owned Utilities
LGU Local Government Unit
LNG Liquefied Natural Gas
LOI Letter of Intent
LPG Liquefied Petroleum Gas
LPP Liquid Petroleum Products
LPTRP Local Public Transport Route Plan
LRT Light Rail Transit
LTO Land Transportation Office
m2 Square Meter
MAE Malampaya East
MAGELCO Maguindanao Electric Cooperative, Inc.
MB Thousand barrels
MC Memorandum Circular
MC Motorcycle
MECR Monthly Energy Consumption Report
MEDP Missionary Electrification Development Plan
MEP Minimum Energy Performance
MEPP Minimum Energy Performance for Products
MEPS Minimum Energy Performance Standards
MFCRs Monthly Fuel Consumption Reports
MHS Minimum Health Standards
MinDA Mindanao Development Authority
MIR Minimum Inventory Requirement
ML Million Liters
MLD Manual Load Dropping
MLPY Million Liters per Year
MMB Million Barrels
MMMT Million Metric Ton
MMSCF Million Standard Cubic Feet
MMSU Mariano Marcos State University
MO Memorandum Order
MOA Memorandum of Agreement
MOS Multiple Options Study
MOU Memorandum of Understanding
MPC Multi-Purpose Cooperative
MRT Metro Rail Transit
PHILIPPINE ENERGY PLAN 2020 - 2040 xiii

ACRONYMS
MSME Medium-Small and Micro-sized Establishment

MSRP Mindanao Substation Rehabilitation Project
MSUP Mindanao Substation Upgrading Project
MT Metric Tons
MTCO2e Metric Tons of Carbon Dioxide Equivalent
MTOE Million Tons of Oil Equivalent
MTPA Million Ton per Annum
MTPP Malaya Thermal Power Plant
MVA Megavolt-Ampere
MVIP Mindanao-Visayas Interconnection Project
MW Megawatt
MWh Megawatt-Hour
MWp Megawatt peak
NAP National Accounts of the Philippines
NASDAQ National Association of Securities Dealers Automated Quotations
NC II National Certification Level II
NC Non-Conventional
NCR National Capital Region
NDC Nationally Determined Contribution
NEA National Electrification Administration
NECM National Energy Consciousness Month
NEC-SSN Nuclear Energy Cooperation Sub-Sector Network
NEDA National Economic and Development Authority
NEDA-DBCC NEDA - Development Budget Coordination Committee
NEDA-ICC NEDA - Investment Coordinating Council
NEP-IAC Nuclear Energy Program Inter-Agency Committee
NEPIO Nuclear Energy Program Implementing Organization
NFE New Fortress Energy
NGAs National Government Agencies
NGCP National Grid Corporation of the Philippines
NGOs Non-Government Organizations
NIA National Irrigation Administration
NIHE Nationwide Intensification of Household Electrification
NMIF North Mindanao Import Facility
NMMS New Market Management System
NMP Net-Metering Program
NOCECO Negros Occidental Electric Cooperative, Inc.
NONECO Northern Negros Electric Cooperative, Inc.
NPC National Power Corporation
NPC-SPUG NPC - Small Power Utilities Group
NPGA Non - Project Grant Aid
NPP New Power Provider
NREB National Renewable Energy Board
NREL National Renewable Energy Laboratory
NREP National Renewable Energy Program
NST Nuclear Science and Technology
NTF-ELCAC National Task Force to End Local Communist Armed Conflict
NTP Notice to Proceed
NW Northwest
OCSP Open and Competitive Selection Process
OCTF Oil Contingency Task Force
ODA Official Development Assistance
OECD Organization for Economic Co-operation and Development
OEM Original Engine Manufacturer
OP Office of the President
OPEC Organization of Petroleum Exporting Countries
PAA Performance Assessment and Audit
xiv PHILIPPINE ENERGY PLAN 2020 - 2040

ACRONYMS
PALECO Palawan Electric Cooperative, Inc.

PARC Philippine Atomic Regulatory Commission
PBR Petron Bataan Refinery
PC Passenger Cars
PCA Philippine Contractors Association
PCBs Power Circuit Breakers
PCC Philippine Competition Commission
PCECP Philippine Conventional Energy Contracting Program
PCOO Presidential Communications Operations Office
PD Presidential Decree
PDA Pre-Determined Areas
PDC Philippine Distribution Code
PDM Price Determination Methodology
PDNGI Philippine Downstream Natural Gas Industry
PDNGR Philippine Downstream Natural Gas Regulation
PDP Power Development Plan
PEIC Power and Energy Infrastructure Cluster
PELP Philippine Energy Labeling Program
PEMC Philippine Electricity Market Corporation
PEP Philippine Energy Plan
PEZA Philippine Economic Zone Authority
PGBI Philippine Green Building Initiative
PGC Philippine Grid Code
PGRIA Philippine Geothermal Resource Inventory and Assessment Project
PhilGBC Philippine Green Building Council
PHIVOLCS Philippine Institute of Volcanology and Seismology
PhP Philippine Peso
PIA HSSE-IMT Philippine Inter - Agency Health, Safety, Security, Environment Inspection and Monitoring Team
PIOUs Private Investor - Owned Utilities
PJ Petajoules
PJEPA Philippines - Japan Economic Partnership Agreement
PN Public Notice
PNOC Philippine National Oil Company
PNOC-EC PNOC - Exploration Corporation
PNOCP Philippine National Oil Contingency Plan
PNOC-RC PNOC - Renewable Corporation
PNP Philippine National Police
PNR Philippine National Railways
PNRI Philippine Nuclear Research Institute
PNS Philippine National Standards
POM Permit to Operate and Maintain
POPCEN Census of Population
PPA Philippine Ports Authority
PPE Personal Protective Equipment
PPP Public - Private Partnership
PPR Particular Product Requirement
PREMS Philippine Renewable Energy Market System
PRES Philippine Rural Electrification Service
PSA Power Supply Agreement
PSA Philippine Statistics Authority
PSALM Power Sector Assets and Liabilities Management Corporation
PSPC Philippine Shell Petroleum Corporation
PSPI Power Source Philippines Inc.
PSPP Power Supply Procurement Plan
PSPRP Philippine Strategic Petroleum Reserve Program
PST Passive Seismic Tomographic
PURE Productive Uses of Renewable Energy
PHILIPPINE ENERGY PLAN 2020 - 2040 xv

ACRONYMS
PUVMP Public Utility Vehicle Modernization Program

PUV Public Utility Vehicle
PV Photovoltaic
PVM Photovoltaic Mainstreaming
PWD Persons-with-disabilities
QRF Quick Response Fund
QMMC Quirino Memorial Medical Center
QR Quick Response
QTP Qualified Third Party
QUEZELCO II Quezon II Electric Cooperative, Inc.
R&D Research and Development
RA Republic Act
RCC Rules Change Committee
RCEP Regional Comprehensive Economic Partnership
RCEP Rice Competitiveness Enhancement Program
RCOA Retail Competition and Open Access
RE Renewable Energy
REA Real Estate Asset
REC Review and Evaluation Committee
REC Renewable Energy Certificate
REF Reference Scenario
REM Renewable Energy Market
REP-AFS Renewable Energy Programs and Projects for the Agriculture and Fisheries Sector
RES Retail Electricity Suppliers
RESC Renewable Energy Service Contract
RESHERR Renewable Energy Safety, Health and Environment Rules and Regulations
RM Reserve Market
RMSP Retail Metering Service Providers
RNS Rural Network Solar
ROR Run-of-River
ROSATOM State Atomic Energy Corporation of Russia
ROW Right-of-Way
RPS Renewable Portfolio Standards
RR Regulating Reserve
RSBSA Registry System for Basic Sectors in Agriculture
RSFFB Refinery Solid Fuel-Fired Boiler
RTL Rice Trade Liberalization
RWMHEEF Reforestation, Watershed Management, Health and Environmental Enhancement Fund
S1 Scenario 1: Hydrogen for Power
S2 Scenario 2: Hydrogen for Transport
S3 Scenario 3: Combine Power and Transport
SAWP Social Amelioration and Welfare Program
SAWP-AMin Social Amelioration and Welfare Program - Adjustment Measures Initiative
SB Senate Bill
SBPL San Buenaventura Power Ltd. Co
SBs Specialized Bodies
SC Service Contract
SCF Standard Cubic Feet
SDG Sustainable Development Goal
SDO Standards Development Organization
SEM Standard Efficiency Motors
SEOM Senior Economic Officials for the ASEAN Economic Ministers Meeting
SEP Sitio Electrification Program
SEP Shell Energy Philippines Inc.
SER Self-Evaluation Report
SEZs Special Economic Zones
SF4RE Support Facility for Renewable Energy
xvi PHILIPPINE ENERGY PLAN 2020 - 2040

ACRONYMS
SFLs Single-Capped Fluorescent Lamps

SHEP Strategized Household Electrification Program
SHS Solar Home System
SIIGs Small Islands and Isolated Grids
SMPC Semirara Mining and Power Corporation
SMR Small Modular Reactor
SMS Short Messaging Service
SO System Operator
SOLECO Southern Leyte Electric Cooperative, Inc.
SOLR Suppliers of Last Resort
SOM Senior Officials Meeting
SOME Senior Officials Meeting on Energy
SPM Strategic Planning Meeting
SPR Strategic Petroleum Reserve
SPUG Small Power Utilities Group
sq-kms Square-Kilometers
SREC Sabang Renewable Energy Corporation
SSCMPs Small-Scale Coal Mining Permits
SSEP Strategized Sitio Electrification Program
SSNs Sub-sectors Network
SSS Social Security System
STEA Science and Technology for Energy Application
StratCom Strategic Communication
SUCs State Universities and Colleges
SUKELCO Sultan Kudarat Electric Cooperative, Inc.
SULECO Sulu Electric Cooperative, Inc.
SUV Sport Utility Vehicles
SWS Social Weather Station
TA Transaction Advisor
TAGP Trans-ASEAN Gas Pipeline
TAPI Technology Application and Promotion Institute
TC Tricycle
TC Technical Committee
TCC Tripartite Consultative Council
TCF Trillion Cubic Feet
tCO2e Ton of Carbon Dioxide Equivalent
TDP Transmission Development Plan
Techno-Eco FS Techno-Economic Feasibility Study
TFEC Total Final Energy Consumption
TESDA Technical Education and Skills Development Authority
TFEM Task Force E-Power Mo
TFRP Targeted Fuel Relief Program
TGFA Total Gross Floor Area
TL Transmission Line
TOP Trial Operations Program
TOPQ Take-or-Pay Quantity
TOR Terms of Reference
TPBAC Third-Party Bids and Awards Committee
TPES Total Primary Energy Supply
TRAIN Tax Reform for Acceleration and Inclusion
TransCo National Transmission Corporation
TRGAs Trade-Related Government Agencies
TUP Technological University of the Philippines
TWG Technical Working Group
TWh Terawatt-Hour
U.S. United States
UC Universal Charge
PHILIPPINE ENERGY PLAN 2020 - 2040 xvii

ACRONYMS
UC-EC Universal Charge – Environment Charge

UCME Universal Charge for Missionary Electrification
UNDP United Nations Development Programme
UNFCCC United Nations Framework Convention on Climate Change
UNOPS UN Office for Project Services
UP University of the Philippines
UPLB UP - Los Baños
UPOSHERR Upstream Petroleum Operations Safety, Health, and Environmental Rules and Regulations
UPSCRFI UP – Statistical Center Research Foundation Inc.
USAID United States Agency for International Development
USD United States Dollar
USEA United States Energy Association
UV Utility Vehicle
VAPT Vulnerability Assessment and Penetration Testing
VAT Value - Added Tax
VRE Variable Renewable Energy
WBG-ESMAP World Bank Group’s Energy Sector Management Assistance Program
WESC Wind Energy Service Contracts
WESM Wholesale Electricity Spot Market
WesMinCoM Western Mindanao Command
WFH Work-from-Home
Wh/PhP Watt-Hour per Peso
WOO World Oil Outlook
Wp Watt-Peak
WPP Wind Power Project
WPS West Philippine Sea
WRAP Wind Resource Assessment Project
WTE Waste-to-Energy
WTO World Trade Organization
ZAMELCO Zamboanga City Electric Cooperative, Inc.
ZAMSURECO I Zamboanga del Sur I Electric Cooperative, Inc.
ZANECO Zamboanga del Norte Electric Cooperative, Inc.
xviii PHILIPPINE ENERGY PLAN 2020 - 2040

OVERVIEW
OVERVIEW
As the country faces a multi-faceted challenge on its pandemic response programs, amidst the imposed
lockdowns on economic activities, the Department of Energy (DOE) is presenting a track to attain an
inclusive and equitable economic growth made possible through the provision of secure, sustainable,
and resilient energy strategies. The Philippine Energy Plan (PEP) 2020-2040 is the second
comprehensive energy blueprint supporting the government’s long-term vision known as Ambisyon
Natin 2040. This updated plan, like its predecessor (PEP 2018-2040), reiterates the energy sector’s
goal to chart a transformative direction towards attaining a clean energy future.
Paving the path of transition into a more

sustainable and resilient energy system,
the sector’s direction has always been
steered by Secretary Alfonso G. Cusi.
This is in recognition to the message
conveyed by President Rodrigo Roa
Duterte of the energy sector requisites –
sustainability and availability of
energy to wean away from traditional
sources and development of
alternative ones.
To carry out the President’s instructions,

the Energy Secretary clearly pointed the
transformative changes imperative to
align with the Administration’s call.
These resulted into policies directed by
the Energy Secretary and include,
among others, the aggressive
Renewable Energy (RE) and Energy
Efficiency and Conservation (EEC) Photo: ctto
institutionalization programs, the
moratorium on new coal power projects, a
mechanism allowing foreign ownership on large-scale geothermal projects under financial and
technical assistance agreement or FTAA, the resumption of indigenous oil and gas exploration, the
introduction of liquefied natural gas (LNG) portfolio, establishment of strategic petroleum
reserves and exploration of Hydrogen’s potential.
Having the policies in place, the Energy Secretary reaffirmed the sector’s mindfulness in putting
consumers first and that energy must be equitable to all Filipinos. The crafted PEP 2020-2040 is the
amalgamation of the envisioned transition and transformation resonated by the Administration. Under
its Clean Energy Scenario (CES), the PEP provides for ambitious plans, policies and targets on
renewable energy, natural gas, alternative fuels, and energy efficient technologies. To make the
country’s low carbon energy transformation a reality, the following goals have been set for the medium
to long-term planning horizon:
PHILIPPINE ENERGY PLAN 2020 - 2040 1

OVERVIEW
Cost Implications of Clean Energy Scenario
The blended electricity generation cost leads to a cheaper cost under the CES by 1.0 percent in 2030
and 5.0 percent in 2040 as compared with the Reference Scenario (REF), equivalent to PhP2.97 per
kilowatt-hour (KWh) and PhP3.41/KWh, respectively. However, given the significant share of solar
photovoltaic (PV) capacity by 2040, equivalent to 45 gigawatt (GW) of additional capacity, entails extra
cost to mitigate intermittency of at least 10.0 to 20.0 percent of the solar capacity to ensure grid stability
and meet the 25.0 percent operational reserves. This cost may add up for the installation of the
technology such as the battery storage and hybridized with clean stable source of energy (i.e., LNG,
hydropower and biomass and concentrating solar thermal).
The Competitive Selection Process (CSP), which mandates all distribution utilities (DUs) to undergo in
securing power supply agreement (PSA), provides for an adequate and proper power supply
contracting through a transparent procedure. This is to protect the end-users with unnecessary
exposure in the volatility of spot prices in the Wholesale Electricity Spot Market (WESM) that redounds
to least cost supply of electricity.
The implementation of the Green Energy Auction Program (GEAP) introduces greater competition
among RE developers and generators and assists them in mitigating market exposure and risks related
to renewable projects, thus easing the effect on cost. It also facilitates economies of scale due to the
aggregation of energy requirements based on the Renewable Portfolio Standard (RPS) mandates. The
deployment and access to clean technology also provide a window for technology innovation that can
bring down cost through localization. Article 10 of the Paris Agreement adopted in 2015 includes a
provision of technology transfer aspect for the deployment of technologies that mitigate and adapt to
the adverse effect of climate change.
Philippines Commitment in the UNFCCC
In the United Nations Framework Convention on Climate Change (UNFCCC), the Philippines is a
signatory to the historic Paris Agreement, along with the 196 UN member states, during the Conference
of the Parties (COP 21) held in December 2015. Under this Agreement, each country to develop its
first Nationally Determined Contributions (NDC) building from the submitted Intended Nationally
Determined Contributions (INDC) to the UNFCCC. On 15 April 2021, the Philippines submitted its NDC
that aims to reduce the country's 2030 GHG emissions by 75.0 percent as an aspirational target
compared with the BAU forecast. This comprises of 72.29 percent conditional commitment and 2.71
percent unconditional commitment.
2 PHILIPPINE ENERGY PLAN 2020 - 2040

OVERVIEW
The energy sector’s GHG emissions only covers the combustion of fossil fuels and other activities
related to the production of energy. Based on computed GHG, the energy sector targets a 2.8 percent
reduction from 2020-2030, which includes both conditional and unconditional targets, consistent with
the CES of the PEP 2018-2040. This is equivalent to GHG emission reduction of about 45.9 MTCO2e
or about 1.37 percent of the country's NDC target.
The DOE has been maximizing various international fora to get support on the country’s call for climate
justice following the Paris Agreement. The Agreement considers the economic and social development
and poverty eradication as the first and overriding priorities of the developing country Parties, as well
as strengthening their capacities to recover from climate change impacts.
Article 4 of the Agreement clearly states that all Parties should act to protect the climate system based
on "common but differentiated responsibilities and respective capabilities," and developed
country Parties should "take the lead" in addressing climate change. Further, the Article stipulates that
developing country Parties effective implementation of their commitments depends on the
commitments of developed country Parties related to financial resources, transfer of technology and
capacity building. Meanwhile, Article 8 recognizes that action and support, including through the
Warsaw International Mechanism, on a cooperative and facilitative basis, should be enhanced with
respect to loss and damage associated with the adverse effects of climate change.
Energy Roadmaps and Sustainable Development Goals
The sectoral Energy Roadmaps1, as well as the DOE’s nine-point energy agenda cited in the 2018-
2040 PEP will continue to be updated and implemented to achieve the clean energy path. Moreover,
developments on the roadmaps and agenda will serve as the sector’s contribution to the United Nation’s
Sustainable Development Goal on Clean Energy (SDG 7), as well as on the country’s specified NDC
targets.
The realization of the SDGs will always bear the valuable contribution of energy. Deemed as the Golden
Thread2, the energy’s role cannot be discounted in the support it extends in the attainment of these
global goals. Having access to modern energy that is affordable, reliable, and sustainable imposes a
transformative tool that will equip
the country in tackling the
challenges brought by achieving
a better and sustainable future
for all. These transformational
goals will not only soften the
impact of climate change but will
help provide opportunities for
the country to achieve energy
independence. Moreover, it will
help create a clean energy
economy that will generate
sustainable investments and
yield well-paying “green”
employment opportunities.
Source: https://www.iaea.org/sites/default/files/np-sustainable-development.pdf
The PEP 2020-2040 Update is

comprised of three (3) main chapters – Energy Situationer, Energy Roadmaps, and Strategic Focus
Areas. The Energy Situationer primarily gives a glimpse of the country’s energy situation in 2020, a
year wherein the country and the whole world endured the impact of the COVID-19 pandemic.
Discussions on this chapter revolve on total final energy consumption (TFEC), transformation (refining
1
The Energy Sector Roadmaps was crafted and include in the PEP 2017-2040 covering short- (2018-2019), medium- (2020-2022) and
long-term (2023-2040) programs, projects, and activities. These roadmaps were adopted and updated in the PEP 2018-2040 and in
this current PEP. For this PEP Update, the Roadmaps cover medium- and long-term.
2
As mentioned by Former Secretary-General of United Nations, Ban Ki-moon.

OVERVIEW
and power generation), total primary energy supply (TPES), environmental impact, and energy-
economy and environmental indicators.
The Energy Roadmaps provides an assessment

of each energy sub-sector (conventional energy,
downstream industry, renewable energy, power
development, energy efficiency and conservation,
and alternative fuels and emerging technologies)
and presents the following in detail: a) sector’s
accomplishments from 2020 – June 2021; b) plans
and programs (sectoral roadmap); and c)
investment and employment opportunities.
The Strategic Focus Areas depicts how the

energy sector will move forward to attain the
envisioned clean and sustainable future. This is
underscored with the Energy Supply and Demand
Outlook that is guided with promoting energy
security through clean energy fuels and
technologies and stronger investments. Further,
the move towards transitioning to a low carbon
future is also substantiated with environmental
management, pursuit for energy resiliency and security, continued energy engagements at the
international front, and the collaborative role of the attached agencies.
For the energy sector to transition into having a clean and sustainable future, the defined path to
undertake leads to the CES. The REF will be the frontrunner to achieving the CES. However, it needs
to take a notch up and requires expanding the use of renewable energy and other technologies,
strengthening implementation of the EEC, implementing appropriate information and communications
technologies (ICT) in the energy chain, and building up energy resiliency. The CES is deemed to pave
the way for the PEP’s vision of energy security, sustainable energy, resilient infrastructures, competitive
energy sector, smart homes and cities, and empowered consumers.
Sustainable Path Towards Clean Energy

OVERVIEW
I. ENSURING ENERGY SERVICES 24/7
A. ENERGY SITUATIONER
I. Total Final Energy Consumption
The country’s TFEC reached 32.4 million tons of oil equivalent (MTOE) in 2020, a 10.7 percent drop
from a year-ago level of 36.3 MTOE. Varying levels of community quarantines that followed the
declaration of State of Public Health Emergency in March 2020 3 to stem the spread of COVID-19 halted
major economic activities, including public and private transportation, which resulted in reduced energy
consumption of end-use economic sectors, except households.
Total Final Energy Consumption by Fuel
Oil products stood at 16.0 MTOE, 13.2 percent lower than last year’s 18.5 MTOE, and contributing
almost half (49.4 percent) of the TFEC. Gasoline and diesel, with combined share of 74.8 percent of
the total oil consumption, went down by 14.8 and 14.6 percent, respectively, as operation of jeepneys,
buses and other modes of mass transportation were suspended for several months.
Electricity consumption accounted for 22.1 percent, which fell by 4.4 percent to 7.2 MTOE from its year-
ago level of 7.5 MTOE. This was due to the suspension or cutback in economic activities in both the
industry and services sector, particularly in the Greater Manila Area (GMA) and other economic zones
across the country. Meanwhile, household electricity consumption increased its share to 40.1 percent
of total as majority of the workforce shifted to work-from-home (WFH) scheme for several months.
Biomass4 for end-use applications contributed 21.8

percent share, albeit a 3.5 percent decline vis-à-vis the
Electricity consumption among 2019 level. Usage of biomass in households increased by
households increased the fastest 1.2 percent and accounted for the bulk with a share of 82.6
as COVID-19 plagued the country percent of the fuel’s 7.1 MTOE consumption level.
in 2020, forcing individuals to
“stay and work at home.” Coal consumption for non-power applications, primarily in
the cement industry, posted a substantial decline of 30.8
percent at 1.6 MTOE from 2.4 MTOE in 2019. This was
attributed to the production and operational disruptions brought by the pandemic as cement companies
reported delayed expansion projects.5
Biofuels (biodiesel and bioethanol) dropped to 474.8 kTOE from 558.4 kTOE of the previous year as an
impact of the reduction in the utilization of gasoline and diesel.
Natural gas for non-power applications plunged by 39.5 percent due to the closure of the Pilipinas Shell
Petroleum Corporation’s (PSPC) Tabangao Refinery in response to the drastic decline in local product
due to the pandemic.
Total Final Energy Consumption by Sector
The transport sector bore the brunt of the restrictions imposed on the movement of individuals, goods
and services to prevent the spread of COVID-19. It’s total energy consumption dropped by 22.5 percent
– an unprecedented decline since 1990. Road transport, which accounted for 89.9 percent of the
sector’s energy consumption, declined by 20.7 percent. Inland water transport posted a 15.2 percent
3
Memorandum Circular (MC) No. 20-04, Series of 2020 “Prescribing the Implementing Guidelines for Resolution No. 12 Issued by the
Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases on Social Distancing and Business Operations”
4
Includes charcoal, fuelwood, rice hull, bagasse, agricultural and animal wastes
5
Statement of Cemex Holdings Philippines during the Public Hearing on Conduct of Monitoring of the Philippine Cement Industry [TCI
(SG) No. SG-2020-MROC-Cement by the Tariff Commission (December 18, 2020)

OVERVIEW
reduction, from 898.8 kTOE in 2019 to 762.6 kTOE in 2020. Domestic air transport suffered the biggest
setback, as its energy consumption plummeted by 65.1 percent to 218.7 kTOE, the lowest recorded
level post-2009 Asian Financial Crisis. Railway transport consumption, with a meager share of 0.1
percent to the total transport, went down by 24.6 percent to 8.1 kTOE from 10.7 kTOE in 2019 as
quarantine restrictions froze the country’s main railway systems: Light Rail Transit Lines 1 and 2, Metro
Rail Transit 3, and the Philippine National Railways for several months.
The household sector’s shift its energy consumption pattern due to the changes in workforce schemes
resulted in an increment of 3.3 percent from 2019 level of 9.7 MTOE to 10.0 MTOE in 2020. Its
electricity consumption registered a 12.2 percent hike, as levels reached 2.9 MTOE from 2.6 MTOE in
2019, while it’s share to the sector’s total consumption likewise improved to 29.4 percent.
Total industry output contracted by 13.2 percent as only the

production of essential goods remained unimpeded. The
sector’s energy requirement slipped by 15.1 percent from COVID-19 pandemic caused
2019 level of 7.3 MTOE to 6.2 MTOE in 2020. The significant changes in economy-
construction sub-sector, registered an 8.5 percent drop in wide energy consumption patterns
its energy consumption to 249.5 kTOE from last year’s 272.7 that necessitates updating of
kTOE as construction activities were completely halted in sectoral energy demand surveys.
the second quarter and workers were temporarily displaced
due public health concerns and travel restrictions.
The services sector6 aggregate energy consumption slipped by 6.6 percent to 4.6 MTOE from its 4.9
MTOE level in the previous year as the economic activities were limited to essentials as part of the
government’s initiative towards “flattening the curve”.
The agriculture sector posted a 7.7 percent decline in its energy consumption from 473.5 kTOE in 2019
to 436.8 kTOE in 2020 as an impact of the depressed local demand and export volume, mobility
challenges for workers due to restrictions imposed because of the pandemic and series of devastating
typhoons and outbreak of the African Swine Fever (ASF).
Non-energy use (i.e., as raw materials / feedstock 7) increased by 11.2 percent, which was driven by
increased demand for personal protective equipment (PPE).
II. Transformation
Oil Refining
The country’s refining output fell sharply by 41.8 percent to 34.6 million barrels (MMB) from 59.5 MMB
of last year due to the prolonged depressed demand for oil products during the year. This led to PSPC’s
decision to permanently close and convert its refinery site into a full import terminal in September 2020,
while Petron alternated between shutdown and resumption of its refinery for the remaining months of
the year. The volume of total marketable products posted a steep descent of 41.4 percent to 4.5 MTOE
vis-à-vis last year’s level of 7.6 MTOE.
Power Generation and Fuel Input
Power generation output fell by 4.0 percent to 101.8 terawatt-hour (TWh) in 2020 as the country
entered recession that caused reduction in economy-wide electricity demand. Coal power plants
contributed more than a half at 57.2 percent (58.2 TWh), natural gas at 19.2 percent (19.5 TWh),
geothermal and hydropower contributed 10.6 percent (10.8 TWh) and 7.1 percent (7.2 TWh),
respectively. On the other hand, the combined generation output of solar, wind and biomass recorded
at 3.7 TWh, representing 3.6 percent share of the total generation mix during the period.
6
Trade and services, excluding Transport
7
Includes naphtha, lubes and other petroleum products

OVERVIEW
Fuel input for power generation contracted by 0.3 percent to 31.0 MTOE in 2020. Fossil fuels
accounted for about two-thirds (62.2 percent), bulk of which from coal with 15.7 MTOE. Coal input
increased by 3.8 percent from its year-ago level of 15.1 MTOE. On the other hand, natural gas and oil
(diesel and fuel oil) dropped by 9.8 percent and 35.6 percent, respectively, caused by changing patterns
in overall electricity demand due to the full lockdowns. Renewable energy’s (RE) share posted a slight
reduction from last year’s 11.8 MTOE as levels dropped to 11.7 MTOE.
III. Total Primary Energy Supply (TPES)
The total primary energy supply (TPES) fell to 56.4 MTOE in 2020, 5.8 percent lower vis-à-vis 2019 level
of 59.9 MTOE, which reflected the downtrend in energy demand. Indigenous and net imported energy
levels registered 4.0 percent and 7.8 percent reductions, respectively. With the decline in net
importation, energy self-sufficiency improved by 1.0 percentage points from 51.6 percent in 2019 to
52.6 percent.
Coal overtook oil as the country’s biggest energy source with 30.8 percent share of TPES vis-à-vis oil’s
29.2 percent share. Aggregate oil supply declined by 13.7 percent to 16.5 MTOE due to cuts in
domestic production and net importations. On the other hand, despite an uptrend in coal importation
for power generation that offset the slump in local coal production, total coal supply posted a slight
reduction of 0.8 percent. With natural gas 5.8 percent share, fossil fuels garnered 65.8 percent of the
TPES. Renewable increased its share in the TPES from 32.9 percent in 2019 to 34.2 percent in 2020,
albeit a 2.0 percent drop in levels to 19.3 MTOE.
IV. Environmental Impact
Total greenhouse gas (GHG) emission fell by 7.7 percent to 120.0 million ton of CO 2 equivalent (MtCO2e)
from last year’s 130.0 MtCO2e. The GHG emission of the transport sector, with its 22.9 percent share of
total, dropped to 27.4 MtCO2e, its lowest level since 2015, and constituted the bulk of the reduction in
the total GHG emission. Industry sector dropped to 18.1 percent from 10.6 MtCO 2e from its year-ago
level of 13.0 MtCO2e. Power generation posted a slight increment of 0.9 percent as levels reached 70.0
MtCO2e, equivalent to 58.3 percent share of the total GHG emissions. This was driven by the increased
utilization of coal as fuel input for power generation. Other sectors emission (services, households and
others) went up by 0.6 percent as energy consumption for household activities increased due to
lockdowns/remote working.
By fuel source, coal consistently accounted for the largest portion of GHG emission with 55.9 percent
share at 67.1 MtCO2e despite a slight reduction of 0.8 percent. Oil emission also fell by 16.1 percent to
45.2 MtCO2e due to restrictions on public transportation. Natural gas reduced by 9.3 percent, as levels
dropped to 7.7 MtCO2e.
V. Energy – Economy and Environmental Indicators8
The country’s gross domestic product (GDP) plunged by 9.6 percent - its worst contraction since World
War II as an impact of the restrictions of the non-essential economic activities to contain the spread of
the COVID-19 virus. All economic sectors posted reductions in their respective gross value added
(GVA). The industry sector, which accounted for 29.2 percent share of GDP, plummeted by 13.2
percent. The services sector with 60.7 percent share of GDP also registered a 9.2 percent reduction.
The agriculture sector with 10.2 percent contribution to GDP, managed to restrict its contraction to 0.2
percent.
On the demand side, private consumption, which accounted for 73.7 percent share of GDP, slipped by
7.9 percent. Both exports and imports of goods and services fell by 16.3 and 21.6 percent, respectively.
8
GDP figures as based on the PSA National Accounts of the Philippines (NAP), as of April 20, 2020 (rebased 2018)

OVERVIEW
Gross capital formation slumped by 34.4 percent as investments in durable equipment and construction
contracted.
Economy-wide energy intensity level reached 3.2 tonnes of oil equivalent per million pesos of real GDP
(TOE/MPhp) in 2020 or 3.5 percent higher than its year-ago level of 3.1 TOE/MPhp. The economic
recession may have slowed down energy efficiency improvements driven by abrupt changes in energy
consumption patterns of businesses and households alike, while the pandemic also contributed to
structural changes across end-use economic sectors.
The GDP elasticity of oil stood at 1.5 during the year, indicating that changes in its consumption levels
adjusted at a relatively faster rate compared to the downturn in economic output. On the other hand,
energy- and electricity-to-GDP posted inelastic values of 0.7 and 0.4, respectively
Energy per capita dropped to 0.52 TOE per person or 7.1 percent lower than its year-ago level of 0.56
TOE. Electricity per capita also fell by 4.7 percent, while oil per capita plunged by 14.7 percent during
the same year.
The GHG emission per unit of economic output posted a 2.0 percent increment to 0.68 tons of CO 2e
(tCO2e ) per Php100,000 of GDP driven by increased utilization of coal for power generation. This also
translated to a higher GHG emission per megawatt-hour (MWh) of electricity generation of 0.69 tCO 2e
vis-à-vis its a year-ago level of 0.65 tCO2e. The reduction in oil consumption and oil share in the TPES
resulted in a 2.0 percent and 1.8 percent decline in the level of GHG emission per TOE of the TPES and
oil, respectively. Restricted economic activity and mobility of individuals resulted in a 9.1 percent
decline in GHG emission per capita from its a year-ago level of 1.2 tCO2e/person.
B. ENERGY SUPPLY AND DEMAND OUTLOOK
I. Methodologies and Assumptions
Macroeconomic Targets
This Energy Outlook incorporates the revised growth targets consistent with the updated Philippine
Development Plan (PDP) 2017-2022, cognizant of the reforms instituted, as well as the recovery
programs and pillars that will govern economic expansion post-COVID19. The country expects the
economy to return to its pre-pandemic or 2019 output levels by 2022 with an 8 percent escalation in
gross domestic product (GDP). Reaping the benefits of reforms instituted, the country maintains its
robust trajectory until 2040 with a 7.4 percent growth in economic output.
Other macro-economic variables such as population, inflation rates, peso-dollar exchange rates and oil
prices were sourced from the (a) 2015 Census of Population (POPCEN) of the Philippine Statistics
Authority (PSA)9, (b) Development Budget Coordination Committee (DBCC), (c) International Monetary
Fund (IMF)10 and (d) World Oil Outlook (WOO) 2045 of the Organization of Petroleum Exporting
Countries (OPEC).11
Energy Supply and Demand Assumptions

Energy outlook uses
The Energy Outlook simulates the impact of the REF or the internationally accepted tools,
Business-As-Usual (BAU) and the CES to the country’s i.e., Simple E2 for non-power
energy portfolio based on the assumptions stated in Table demand forecasts, PLEXOS for
68. As in the previous Outlook, regional targets on energy power outlook, while LEAP
integrates these forecasts.
9
Population projections based on the 2015 Census of Population (Philippine Statistics Authority)
10
Crude Oil Price Forecast: 2021, 2022 and Long Term to 2050 (Knoema, published 10 September 2021)
11
World Oil Outlook (WOO) 2045 (OPEC, October 2020)

OVERVIEW
intensity reduction12 and increased RE share capacity13 are also taken into consideration, as well as
commitment to the Sustainable Development Goals Goal 7 (SDG 7) to ensure access to affordable,
reliable, sustainable and modern energy for all. The 2020 is set as the base year for the outlook update,
with 2021 as the first projection year.
II. Reference Scenario
Total Final Energy Consumption
While COVID-19 pandemic resulted in depressed energy demand in 2020, total final energy
consumption (TFEC) reaches 99.3 MTOE in 2040, which translates to average yearly increments of 5.8
percent across the planning horizon.
The transport and industry sectors, with their combined average shares equal to 56.0 percent, account
for the biggest contribution to the three-fold increase in TFEC levels between 2020 and 2040. Other
end-use sectors, such as the household, services and agriculture also put in average shares of 24.5
percent, 15.5 percent, and 1.4 percent, respectively, to the TFEC. Non-energy, or the use of naphtha,
lubes and other petroleum products as feedstock and raw materials in industrial process, completes the
demand mix with 2.2 percent share.
Energy utilization in the transport sector increases most rapidly

with 7.1 percent per year driven by improved mobility and
Oil demand returns to its pre-
connectivity due to the accomplishment of the sector’s major
pandemic levels by 2023 and infrastructure projects under the Build, Build, Build program.
posts 6.5 percent yearly Industry and services, expected to propel the country’s
increments until 2040 envisioned economic expansion, rise their energy
consumption by 6.6 percent and 6.2 percent, respectively. As
the agriculture sector moves towards its goal to modernize and
industrialize its value chains, it boosts up its energy requirement by 5.9 percent per year across the
planning period. Household sector builds up its energy utilization with a steady 3.6 percent increment,
while non-energy use drops by 0.7 percent over the planning period.
Power Outlook
Peak demand, the peak load or the highest electricity consumption occurred in a given day or year,
depicts the trend of electricity sales forecast with a uniform load factor. The country’s peak demand
increases by almost four-folds with 6.6 percent annual increment for the 20-year period, from 15,282
megawatt (MW) in 2020 to 54,655 MW in 2040. With greater economic growth prospects based on the
projected gross regional domestic (GRDP), Mindanao exhibits the highest annual growth at 7.9 percent,
followed by Visayas at 7.3 percent and Luzon at 6.2 percent.
Similarly, electricity sales also increase by almost four-folds, equivalent to a nearly 7.0 percent growth
rate a year, which stands at 335, 691 gigawatt-hour (GWh) by end of the planning from 91,369 GWh in
2020. On a per grid basis, Luzon still gets about two-thirds of the total electricity sales, while the
remaining is shared by Visayas with 16.9 percent and Mindanao with 16.0 percent.
Gross generation increases three-folds reaching 364.4 terawatt-hour (TWh) in 2040 with a 6.6 percent
a year growth rate from 101.8 TWh in 2020. Coal share of total power generation decelerates by about
half from a high of 57.0 percent in 2020 to 24.6 percent in 2040. Generation from coal only increases
at 2.2 percent annually as only committed projects are the added capacity over the planning period.
12
Asia-Pacific Economic Cooperation’s (APEC) target of 45.0 percent reduction in energy intensity by 2035 with 2005 as the base year
period; and ASEAN Plan of Action for Energy Cooperation (APAEC) 2016-2025’s of 20.0 percent reduction by 2020 and 32.0 percent
by 2025.
13
Under the APAEC aspirational targets for 2025 of 23.0 percent share of RE in Total Primary Energy Supply (TPES) and 35.0 percent
share of RE in installed power capacity.

OVERVIEW
The aggregate share of renewables in the generation mix reaches 35.0 percent by 2030 until end of the
planning period to meet the required share of RE for the mandated RPS. Solar contributes 15.0 percent
to the total power generation. Hydro likewise provides 14.0 percent, while geothermal with 4.4 percent,
wind with 1.4 percent and biomass with less than 1.0 percent share of total.
Natural gas overtakes coal as major fuel for power generation with its share increasing significantly to
40.0 percent of total from nearly 20.0 percent in 2020. This is attributed to the flexibility of its fuel to
support the higher penetration of renewables in the generation mix, specifically solar and wind.
However, with the depletion of natural gas from the Malampaya gas field, the country needs to import
liquefied natural gas (LNG) to meet its fuel requirements. The LNG is seen to come in starting 2022 as
assumed in this outlook through the completion and commercial operation of two (2) LNG import
terminals – composed of a floating storage and regasification unit (FSRU) terminal and onshore
regasification terminal with floating storage unit (FSU) terminal.
The total installed capacity increases by about four (4) times from 26.2 GW to 95.7 GW in 2040 coming
from existing, committed, and new build capacities. Solar, having the lowest capacity factor, expands to
more than 34.0 percent of total by 2040 because of declining capital cost from 750 USD/kilowatt (KW)
to 650 USD/KW. As such, solar has the cheapest levelized cost of electricity (LCOE) among renewable
technologies. Natural gas and hydro also contribute significantly to the total installed capacity with 25.4
percent and 16.1 percent share, respectively. Coal share drops to 14.2 percent in 2040 from 41.7
percent in 2020 due to the coal moratorium for greenfield coal power plants. Other technologies, such
as oil, geothermal, biomass, and wind contribute 1.0 to 5.0 percent of total.
Total Primary Energy Supply
The accelerated economic expansion post-COVID19 and the present development trends and
strategies of the energy sector boost the country’s TPES to increase at an annual growth rate of 5.2
percent from 56.4 MTOE in 2020 to 155.6 MTOE in 2040. However, self-sufficiency drops to 38.7
percent by 2040, which indicates a growing reliance on imported energy, particularly on LNG that fills
the gap due to depletion of reserves in Malampaya gas field. By 2040, energy supply for power
generation comprises the 52.7 percent of the TPES, while supply for non-power application accounts
for the remaining 47.3 percent.
GHG Emission
The GHG emission increases at an annual growth rate of 5.8 percent to 370.9 MtCO2e by 2040 from
120.0 MtCO2e in 2020. By 2040, the transformation sector contributes 42.3 percent followed by the
transport sector with a 30.3 percent share. The industry accounts for a 12.8 percent share, while
services, households, and agriculture sectors account for the remaining 14.6 percent share. In terms
of fuel, coal accounts for a 35.3 percent share in the GHG emissions in 2040, driven by its utilization for
power generation. On the other hand, emission from oil-based fuels, primarily consumed in the
transport sector, puts in 47.9 percent share, while natural gas completes the GHG emission mix with its
16.8 percent share.
III. Short-Term Energy Supply and Demand Outlook for 2021-2024
Under the REF, the gradual resumption of economic activity among end-use sectors increases the TFEC
by 5.6 percent in 2021, as levels reach 34.2 MTOE. By 2023, the TFEC exceeds its pre-pandemic level
at 37.2 MTOE. It reverts to its growth path prior to COVID-19 reaching 39.1 MTOE by 2024.
The TFEC under the CES registers cumulative reduction of 1.7 MTOE from 2021-2024 vis-à-vis its level
under the REF for the same year. The transport sector maintains its large share to this reduction owing
to fuel diversification. All sectors also post lower energy consumption through the implementation of
EEC measures and practices in the utilization of both oil products and electricity. Meanwhile, biodiesel
demand escalates because of an increase in the mandated blend beginning 2022.

OVERVIEW
Under the REF, the TPES in 2021 rises by 7.0 percent to 60.3 MTOE. This supports the increasing
energy requirement with the gradual resumption of economic activities.
Between 2021 and 2024, the TPES grows at an annual

rate of 4.0 percent. Of the 67.8 MTOE in 2024, coal
accounts for 32.4 percent share, followed by oil with In the short-run, energy consumption
29.4 percent, while natural gas contributes 5.3 percent. tends to be elastic during economic
Renewables register an aggregate share of 32.9 crisis, while price hikes result in
percent for the same period. declining energy intensity as
consumers respond spontaneously to
IV. Clean Energy Scenario changes in income and prices.
Total Final Energy Consumption
Achieving the targets of EEC and higher penetration of alternative fuels (electricity, natural gas and
biofuels) under the CES leads to 0.3 percentage points reduction in the growth rate of the TFEC vis-à-
vis the REF across the planning horizon.
By 2040, the TFEC under the CES tapers down to 93.4 MTOE or 6.0 percent lower than its 99.3 MTOE
level under the REF. The transport sector registers a lower share to the TFEC in 2040 under the CES
compared to the REF for the same year, while minimal increases in shares are observed for other
sectors. In terms of fuel shares, the aggregate oil products slightly decline, while that of other fuels,
such as electricity, coal and biomass, compensate for such reduction. It is significant to note that with
higher blend of biodiesel to oil, its share to the TFEC doubles under CES.
Power Outlook
As EEC initiatives continue, electricity sales decrease under the CES. This tapers the impact of doubling
the penetration rate of electric vehicles (EVs) in the transport sector, resulting in 6.4 percent average
annual growth rates of the sales forecast, while levels are 14.0 TWh lower at 321.7 TWh vis-à-vis the
REF for 2040.
The sales forecast trend under the CES echoes in the total generation estimates for total Philippines,
while meeting the 50.0 percent RE target by 2040. In 2040, power generation under the CES increases
by 6.4 percent yearly to reach 350.1 TWH by 2040 from 101.8 TWH in 2020. About a fourth of the
generation comes from natural gas with 26.6 percent share. Coal contributes 23.1 percent share, while
solar and hydro comprise 20.6 percent and 18.0 percent, respectively. The remaining is contributed by
geothermal, wind, biomass and oil with a combined share of 11.7 percent.
Installed capacity under CES increases by 23.9 percent from 95.7 GW under the REF GW to 118.6 GW.
RE total installed capacity increases to 81.5 GW by 2040, translating to 68.7 percent in the CES. Of
this, solar contributes 46.1 GW and 11.8 GW for wind, and 20.1 GW for Hydro in the same period. On
the other hand, gas drops to 18.9 GW.
Total Primary Energy Supply. Reflecting the slowdown of

the TFEC due to the energy efficiency measures and the
increase in the biodiesel blend at 5.0 percent across all Increasing RE target from 35% to
sectors, the TPES under the CES registers an annual
50% by 2040 translates to a total
growth rate of 4.8 percent across the planning horizon or
installed capacity of 81.5 GW.
0.4 percentage points lower than its growth in the REF. By
2040, the aggregate supply level stands at 144.9 MTOE,
which is 10.7 MTOE lower vis-à-vis the REF for the same
year.
By 2040, fossil fuels (oil, coal, and natural gas) reduce their levels by 2040 with lower shares under the
CES of 35.5 percent, 20.8 percent, and 11.6 percent, respectively. Meanwhile, RE target set forth under
the CES improves its aggregate share to 32.0 percent vis-à-vis 25.5 percent in the REF.

OVERVIEW
V. Policy Implications
1. Economic Sustainability
The energy sector’s primary agenda is energy security through ensuring the availability of energy
supply, while mitigating the challenges that may be brought by either human-induced or natural
disasters.
▪ The country’s reliance on imported fuels increases, driven by the upward trend of energy demand
due to the depleting indigenous resources and despite the increase in renewable share to power
generation (50.0 percent target by 2040). This necessitates exploring more of the potential
indigenous resources for fossil fuels as well as renewables. Under the REF, energy self-
sufficiency level decreases to 39.7 percent by 2040, from 52.6 percent in 2020, due to the entry
of LNG as Malampaya gas resources deplete. Increasing utilization of renewables in the CES
increases the self-sufficiency level to 49.4 percent in the same year.
▪ Increased share of variable renewable energy or VRE

(solar and wind) reduces the reliability of the grid due to Addressing Solar PVs
the intermittency and vulnerability to hazard, such as intermittency thru the battery
typhoons. With the anticipated increase in peak demand storage, hybrid solar PV with
by 2040, the operational reserves (regulating, other fuels, solar thermal etc.,
contingency and dispatchable) shrink by half from 16.4
entail additional cost.
percent in 2020 to 7.5 percent in 2040 on the
assumptions that the capacity credit14 for both solar and
wind is zero15 and that the largest and second largest
units in the major grids remain the same. Even the 25.0 percent reserve margin would not be
enough if the capacity credit of solar is still zero. As such, there is a need to revisit the policy on
operational reserves vis-à-vis tripling of peak demand level by 2040 for grid reliability. This also
necessitates ensuring the reliability of 10.0 to 20.0 of solar capacity by considering the use of
battery storage for the grid, hybrid solar PV with other fuels, and solar thermal, among others.
▪ Both scenarios meet regional energy intensity targets. The Asia-Pacific Economic Cooperation
(APEC) adopted an aspirational target of energy intensity reduction by 25.0 percent in 2030 to
45.0 percent by 2035 based on 2005 level. Meanwhile, the Association of Southeast Asian
Nations (ASEAN) endorsed, through the ASEAN Plan of Action for Energy Cooperation (APAEC)
2016-2025, the energy intensity target reduction of 20.0 percent by 2020 and 32.0 percent by
2025.
▪ The current impact of COVID-19 is eminent in changing the economic structure and pattern of
energy use for household and transport sector due to the restrictions in movement of people.
Fuel switching is also evident in the household sectors due to the adoption of work from home
scheme for their employees. This requires updating of the Household Energy Consumption
Survey (HECS) as well as surveys for other sectors.
2. Social Sustainability
Social dimension measures the country’s ability to provide universal access to reliable, affordable, and
abundant energy for domestic and commercial use. It captures basic access to electricity and clean
fuels and technologies for cooking, access to prosperity-enabling levels of energy consumption, and
affordability of electricity, gas, and fuel.16
14
Capacity credit is defined as the fraction of the rated capacity considered firm for the purposes of calculating the reserve margin (source:
LEAP).
15
The simulation used 60.0 percent capacity credit for solar and 20.0 percent for wind. A sensitivity analysis is applied where the capacity
credit for both solar and wind is zero.
16
IAEA Energy Indicators for Sustainable Development (EISD), Chapter 2 (2005)

OVERVIEW
▪ Energy consumption per capita that excludes

traditional biomass17 for end-use increases by 5.7
percent for the REF by 2040 and 0.3 percentage
points lower for the CES, while the population
increases by an average growth of 1.0 percent
annually. Per capita consumption is directly Energy Flow
proportional to GDP per capita. Per capita
On the leftmost side are the country’s
consumption of modern fuel corresponds to 0.6 ton of available energy resources that comprise
oil equivalent (TOE) for every PhP100 thousand of the TPES - fossil fuels (oil, coal and natural
GDP (TOE/PhP100k). To improve this requires gas) and renewables (geothermal, hydro,
greater accessibility to modern fuel by the households, wind, solar, biomass and biofuels), which
are either domestically produced
specifically in rural areas. (indigenous) or imported. Some of our
indigenous coal, crude and condensate
▪ The blended cost of electricity generation under the are being exported (represented as
CES is 1.0 percent lower in 2030 and 5.0 percent in negative values). The remaining volume of
primary energy resources undergoes
2040 compared with REF, equivalent to PhP2.97 per processes (i.e., oil refining and power
kilowatt-hour (KWh) and PhP3.41/KWh, respectively. generation) to produce secondary energy
The influx of solar to achieve the mandated RPS higher products, such as electricity and
than 1.0 percent yearly increment tapers the cost. petroleum products.
Solar PV improves its learning curve as its capital cost Under the power generation process,
decreases to 650 USD/KW in 2040. However, coal, oil and natural gas are burned to
addressing its intermittency through the battery produce heat to run turbines that will
storage, hybrid solar PV with other fuels, solar thermal produce electricity in the power
generation process; the heat from solar
etc., entails additional cost. and geothermal steam are directly used to
run the turbine producing the same; and,
3. Environmental Sustainability the mechanical energy produced from
hydropower and wind produces heat to
run electricity turbines. The electricity
▪ Per capita emission increases faster at 5.7 percent a produced passes through transmission
year than the country’s population with only 1.0 and distribution lines to reach end-users
percent average growth rate. Under REF, per capita for final use.
emission slowly moves up to 2.4 tCO2e in 2040 from
Oil undergoes refining process to
1.9 tCO2e in 2020, which is equivalent to 4.7 percent produce petroleum products, such as
average annual growth rate. For the CES, its growth liquefied petroleum gas (LPG), gasoline,
is slower by 0.8 percentage point. Per capita diesel, and others that are readily used by
consumption on modern fuels is similar to the per consumers, while some are exported or
consumed for international aviation or
capita emission’s relationship to GDP per capita, navigation (represented as negative
which equates to 0.6 tCO2e per PhP100k of GDP values) and stored as stocks for future use.
indicating that as the economy expands the GHG
emission increases. Energy losses are incurred during these
transformation processes in power
generation and oil refining and during the
▪ The influx of solar for both the REF (31.6 GW) and the transmission and distribution to the end-
CES (45.1 GW) by 2040, requires 325.9 sq. km and uses. Power plants and refineries also
461.4 sq. km., respectively. Using the rule of thumb, have energy their own-use. The losses
incurred and plant own-use are
1.0 hectare of land for every 1.0 MW of Solar PV, built- represented as negative values.
up land increases by 7.8 percent for the REF and 11.1
percent for the CES. This reduces agricultural land Towards the right side of the Sankey
since it is the most viable land for solar use as it is diagram is the TFEC or the volume of
energy commodities for final consumption
under flatlands, where solar radiation is easily of different economic sectors, namely:
captured. This effect necessitates land-use policy for Household, Transport, Industrial, Services,
agriculture vis-a-vis energy use to mitigate the and Agriculture; or as raw materials for
negative impact of VRE on food security. production processes considered as non-
energy use.
o The conduct of a study on RE resource
assessment, as well as solar rooftop installation
assessment is also necessary for the availability
of areas to reduce the land area for solar
installation.

OVERVIEW
o Likewise, a study on climate, land, energy, and water nexus must also be conducted to
balance the interrelationships among other sectors of the economy.
▪ Energy transition starts in 2028 in the power sector. However, for the whole energy sector, as
expressed in the level of the TPES, the transition seems gradual as the share of clean energy
fuels reaches only 42.0 percent by 2040. The renewable share is higher in the CES allowing for
lesser dependence on fossil fuels. This provides an avenue for the improvement of the mitigation
measures in the non-power sector specifically transport. The Productive Uses of Renewable
Energy Project (PURE) project by the European Union-Access to Sustainable Energy
Programme (EU-ASEP) for agriculture processes, and the Development for Renewable Energy
Applications Mainstreaming and Market Sustainability (DREAMS) project by the United Nations
Development Programme (UNDP) that caters to households in far-flung areas under the Support
Facility for Renewable Energy (SF4RE) encourages expanded access to and increased share of
clean energy among end-use sectors
There is a need to look at increasing the target of EEC as this is the most cost-effective measure
among the mitigation options towards clean energy. It is also imperative to explore and harness
other clean technologies like nuclear and hydrogen to replace coal for baseload generation.
▪ To further enhance the power outlook, the following are considered as a way forward:
o Conduct of additional studies to update the Philippines’ Reliability Indices;

o Develop more scenarios to examine the effect of entry of new emerging technologies and
future policies such as power plant decommissioning; and
o Conduct sectoral demand forecasting to examine the impacts of increased deployment of
distributed PV system, EVs utilization, demand-side management programs, and energy
efficiency improvements in the future.
C. ENERGY SYSTEM
The energy flow of the whole energy system from the primary resources (TPES), oil refining, and power
generation to the end-use sectors (TFEC) are illustrated in the Sankey Diagrams for 2020 and 2040
(REF and CES) (Figures 1-3). These diagrams provide a graphical representation of the following:
▪ How much energy supply is required to produce useful energy for the consumers?
▪ How much energy is required for each type of fuel, i.e., oil, coal, gas, and RE?
▪ How much energy is required by each sector of the economy?
▪ What are the available sources of energy in the country?
▪ How much energy is imported from other country?
Table 1 summarizes the major energy data as derived from the energy flows in the 2020 and 2040
Sankey Diagrams.
17
Traditional biomass refers to the use of wood, charcoal, agricultural residues and animal dung for cooking and heating in the residential
sector (source: IRENA).

OVERVIEW
Table 1. SUMMARY TABLE OF ENERGY DATA

2020 2040
Energy Data & Indicators Actual Reference Clean Energy
(Figure 1) (Figure 2) (Figure 3)
TPES 56.37 MTOE 155.62 MTOE 144.88 MTOE

Share of Indigenous Energy to TPES /
56.37% 39.67% 49.44%
Self-Sufficiency
Total RE Supply 19.29 MTOE 39.67 MTOE 46.39 MTOE
RE Share of TPES 34.21% 25.49% 32.02%
Total Fuel Inputs to Power Generation 31.02 MTOE 81.99 MTOE 76.15%
8.75 MTOE 31.34 MTOE 30.11 MTOE
Total Gross Generation
(101.76 TWh) (364.40 TWh) (350.07 TWh)
TFEC 32.39 MTOE 99.32 MTOE 93.35 MTOE
Major Energy Consuming Sectors and their Households Transport Transport
Shares of the TFEC (30.96%) (39.11%) (38.05%)
Oil Oil Oil
Most Consumed Fuel and Share of TFEC (49.45%) (56.71%) (55.01%)
Figure 1. PHILIPPINE ENERGY FLOW 2020, MTOE

OVERVIEW
Figure 2. PHILIPPINE ENERGY FLOW 2040, REF (MTOE)
Figure 3. PHILIPPINE ENERGY FLOW 2040, CES (MTOE)

OVERVIEW
II. CREATING WEALTH FOR THE FILIPINO
ECONOMIC CONTRIBUTION OF THE ENERGY SECTOR
The COVID-19 phase may well be recorded as one of the most difficult periods for Filipinos as the
country battled the pandemic and its effects on the nation’s economic health. For this reason alone, the
next two decades will be a time to re-energize the economy through long-term investments and
employment generation which will help the country “build back better” and aid the private and public
sectors face the future with renewed confidence to achieve inclusive growth for all.
For the energy sector, the PEP 2020-2040 aims to strengthen the economy by putting in place sound
and stable policies and plans, as well as infrastructure programs to spur long-term investments and
create employment opportunities for Filipinos.
Investment Requirements of the PEP
In the energy sector’s scenario planning, the energy plan enumerates the country’s overall sectoral
energy investment requirements per scenario covering the period 2020-2040 (Table 2). The estimated
financing needs cover the exploration and development of indigenous energy resources, construction
of additional power plants and transmission network, as well as putting up other energy facilities
necessary to ensure continuous flow of energy supply, such as oil storage, biofuels production capacity
and liquefied natural gas (LNG) receiving terminals. Recognizing that the energy sector is a capital-
intensive venture, the DOE envisages a more active private sector participation and public-private
partnerships (PPP) to pour in the required investments over the planning period.
Table 2. TOTAL ENERGY INVESTMENT REQUIREMENTS BY SCENARIO, 2020-2040 (PhP Billion @2020 Prices)
Scenario
Sector
REF CES
Upstream1 1,176.50 1,183.87
Oil and Gas 502.51 502.51
Coal 656.06 656.06
Renewable Energy (Pre-Development) 17.93 25.30
Downstream 384.90 354.73
Oil Depot 103.51 93.94
Oil Import Terminal 67.76 53.11
LNG Terminal2 88.77 88.77
Biodiesel 0.28 4.84
Bioethanol3 124.59 114.07
Power 5,582.05 6,110.95
Generation 5,233.70 5,762.60
Transmission4 348.35 348.35
Total 7,143.45 7,649.55
Notes: 1. Includes exploration and development (production)
2. Based on the approved LNG Project applications
3. All bioethanol supply requirement is to be produced locally
4. Proposed Transmission Projects from 2021-2030 (Source: Draft Transmission Development Plan 2021-2040)
In the REF, total investment over the outlook period reaches PhP7,143.5 billion (USD 142.9 billion18).
With the goal to expand the share of renewables in the country’s energy portfolio and contribute to
global sustainability through GHG mitigation and reduction, the capital requirement under the Clean
Energy Scenario (CES) increases to PhP7,649.6 billion (USD 153.0 billion), up by 7.1 percent than the
REF. On the average, the power sector accounts for majority of the total capital requirements with a
share of around 79.0 percent, followed by the upstream (16.0 percent) and downstream (5.0 percent)
sectors.
18
PhP50 / USD

OVERVIEW
To promote a more investment-conducive environment, various investor-friendly policies have been

formulated and implemented, which include:
▪ Executive Order (EO) 30 issued on 28 June 2017 creating the Energy Investment Coordinating
Council (EICC);
▪ Republic Act (RA) 11032 or the Ease of Doing Business and Efficient Government Service
Delivery Act promulgated on 28 May 2018;
▪ RA 11234 or the Energy Virtual One-Stop Shop (EVOSS) Act signed 08 March 2019;
▪ Administrative Order (AO) 23 on Eliminating Overregulation to Promote Efficiency of Government
Processes issued on 21 February 2020; and,
▪ Joint Memorandum Circular (JMC) 2020-01 or the LGU Energy Code issued on 30 April 2020 by
the DOE and the Department of Interior and Local Government (DILG).
Likewise, the new policy guidelines19 for the 3rd Open and Competitive Selection Process (OCSP3) now
allows 100.0 percent foreign ownership in large-scale geothermal exploration, development, and
utilization projects with initial investment cost of USD50 million through a Financial and Technical
Assistance Agreement (FTAA).
Aside from the investments that these energy projects can bring into the country, both the national
government and local government units (LGUs) also benefit through revenue proceeds or royalties
(government share) from energy resource development (conventional fuels 20 and renewable energy21).
The 1987 Philippine Constitution (Article XII, Section 2) states that the “exploration, development, and
utilization of natural resources can be undertaken directly by the state or through co-production, joint
venture or production-sharing arrangements with Filipinos or corporations in which Filipinos own at least
60.0 percent.” The government share from the energy resource development may be used for energy-
related programs and projects, such as lowering of electricity rate. For instance, a portion of the
government share from Malampaya natural gas project is now earmarked for the implementation of the
“Murang Kuryente Act22” of 2019.
The following highlights the investment and employment opportunities in each energy subsector.
CONVENTIONAL ENERGY FUELS
▪ Upstream Oil and Gas
Guided by Presidential Decree (PD) 87 or the “Oil Exploration and Development Act of 1972”, the
oil and natural gas industry has played a major role in the country’s economic growth through the
generation of multi-million investments, as well as employment of local experts/professionals to
operate, maintain and upgrade oil and gas infrastructures.
Under the PEP 2020-2040, the conduct of the Philippine Conventional Energy Contracting Program
(PCECP) makes the oil and gas sector a dynamic investment prospect for energy players in the
country. Under the planning horizon, this sector expects eight (8) SCs to be awarded with a minimum
investment of PhP8.4 billion once they complete the required exploration stage. In addition, potential
investment of about PhP1.7 billion (exploration) can be generated with the approval of applications
received for Nominated Area 1 and Pre-Determined Areas 6 and 7 located in the Bangsamoro
Autonomous Region in Muslim Mindanao (BARMM) areas.
Moreover, the sustainable and effective implementation of the PCECP may bring additional total
investments of about PhP492.4 billion, broken down into PhP94.4 billion from oil production and
PhP398.0 billion from natural gas production. Thus, total investments from the oil and gas sectors
19
Department Circular (DC) 2020-11-0024 issued on 20 October 2020
20
Presidential Decree (PD) 87 and PD 1459 for petroleum exploration and development, which state that the government share from
the net proceeds should not be less than 60.0 percent. For coal, the governing policy is PD 1174
21
Renewable Energy Act of 2008 or RA 9513 provides that the government share is equal to 1.0 percent of the gross income except for
geothermal, which shall be at 1.5 percent of gross income.
22
RA 11371 signed on 08 August 2019

OVERVIEW
stands at PhP502.5 billion to support the government’s “bring back better” initiatives as the
country rises from the effects of the pandemic.
In terms of employment, each approved service contract may employ around 300 personnel. Thus,
more than 2,000 job opportunities for both technical and support services are expected to fill-in the
manpower requirements of these eight (8) SCs.
▪ Upstream Coal
Coal continues to be a reliable and cheap source of energy for power generation and industrial
processes. The coal industry also provides employment opportunities to local communities through
infrastructure development.
To meet the additional reserves of 288.0 MMT (152.3 MTOE) and additional production of 282.0
MMMT (149.2 MTOE) of coal for the period 2020-2040, the upstream coal sector would require
investment support of about PhP656.1 billion. These investments will be used for exploration
(PhP12.9 billion) and production (PhP643.2 billion) activities.
DOWNSTREAM NATURAL GAS INDUSTRY
For the planning horizon, the government aims not only to have sufficient supply of natural gas in the
domestic market, but to support the DOE’s vision of making the Philippines as an LNG trading and trans-
shipment hub in the Asia-Pacific Region.
With the Malampaya natural gas field (the country’s primary source of natural gas) depleting by 2024,
the government needs to outsource its natural gas supply in the near future. In line with this, the DOE
has approved the application of seven (7) LNG terminal projects with total estimated investments of
PhP88.8 billion. Two (2) of these projects (FGEN LNG Corp. and Energy World Corp.) have been given
the “Permit to Construct”, while the others have been granted with the Notice to Proceed (NTP).
Operation of these projects is expected between the planning period 2022-2025. The FGEN and the
Atlantic Gulf & Pacific Company of Manila, Inc. (AG&P) are scheduled to be completed and operational
in 2022 to provide the supply requirements of existing natural gas-fired power plants.
On manpower requirement, there will be 6,822 work opportunities for skilled and unskilled workers that
will be made available during the construction (6,265 jobs) and operation phase (557 jobs) of these
proposed projects.
DOWNSTREAM OIL INDUSTRY
The downstream oil market, consisting of activities such as marketing, distribution and storage of
petroleum products, remains to be a viable area for the entry of investments and creation of employment
opportunities that trigger economic activities. Downstream oil industry players increased by almost 8.0
percent, from 355 in 2019 to 383 in 2020. Cumulative investments from industry since deregulation
grew from PhP183.8 in 2019 to about PhP190.3 billion in 2020.
In 2020 alone, a total of PhP5.2 billion worth of investments was infused to the economy from various
downstream oil activities. Likewise, more than 400 jobs were created by these investments. Of the total
investments, PhP4.1 billion came from the import terminals projects (Regions 3 and 4-A), PhP 945
million came from new depots, and PhP228 million from transport facilities. Moreover, the first quarter
2021 recorded a total of PhP13.6 billion worth of investments from new industry players, providing
additional jobs for 95 persons.
During the 1st quarter of 2021, there were 37 new players in liquid petroleum products (LPP) retail
marketing bringing in aggregate investments of PhP200.1 million and provided employment to 370
people. For the liquefied petroleum gas (LPG) industry, 116 new participants logged in total investments
of PhP25.8 million and employed 404 personnel in their business areas. Both industries provided a total
investment of PhP225.9 million and 774 jobs within their business areas.

OVERVIEW
For the planning horizon 2020-2040, the country requires new oil distribution depots and import
terminals to secure the country’s oil supply. In line with this, the depot capacity requirement needs a
total investment of PhP103.5 billion by 2040 in the REF and PhP93.9 billion for the CES. Manpower
requirement for additional depots necessitates 19,386 personnel under the REF and 17,595 for the CES.
Businesses for import terminal capacity additions provide a total investment of PhP67.8 billion under
the REF and PhP53.1 billion in the CES. Jobs to be generated in this downstream oil activity reaches
3,556 persons for the REF and 2,787 persons for the CES.
BIOFUELS
Considering the 5.0 percent blend rate by 2022, demand projections in the CES show that the biodiesel
demand increases to 1,386.4 million liters (ML) by the end of the planning period (more than double the
REF). On the other hand, demand for bioethanol stands at 2,063.5 ML (lower by 7.3 percent than the
REF scenario). Based on the demand projection, the country needs additional production capacity,
thereby generating investments and employment opportunities, especially in rural communities.
For the planning horizon, the required production capacity additions for biodiesel provide a total
investment of about PhP4.8 billion under the CES and PhP279.4 million under the REF. On the other
hand, bioethanol investment requirement amounts to PhP114.1 billion under the CES and PhP124.6
billion under the REF. These investments provide 13,630 employment opportunities under the REF
scenario and 13,490 under the CES to operate/maintain biofuels production plants (excluding jobs
during construction phase).
RENEWABLE ENERGY
As the country transitions to clean energy fuels and technologies, the DOE is keen on pursuing
renewable energy projects. And with comprehensive policies in place and as prices of RE technologies
have become more competitive, the country can expect the entry of more investments in this sector.
The National Renewable Energy Program (NREP) 2020-2040 sets aspirational target that adheres to the
RPS goal of at least 35.0 RE percent share of the total generation mix by 2030 and looking further at
achieving 50.0 percent share by 2040. The CES adopts such target of 50.0 percent share equivalent
to 73.9 GW of additional RE capacities by 2040, 62.0 percent higher than the REF.
To achieve the target, country needs pre-development investments of about PhP17.9 billion under the
REF and PhP25.3 billion under the CES. These “green investments” will make way for the employment
of 26,439 personnel under the REF and 40,149 under the CES.
POWER DEVELOPMENT
Demand for electricity continues to grow, requiring substantial investments to cover the building of new
capacities and modernization of old power infrastructures. Thus, the entry of critical investments is a
priority to help spur development of power facilities to secure the country’s power supply and expand
energy access to the countryside.
▪ Power Generation Projects
The increasing demand for electricity requires the new power generation projects. Under the REF,
total capacity addition reaches 69.4 GW by 2040 requiring a total investment of PhP5.2 trillion. On
the other hand, the CES sees the entry of more RE power projects with capacity addition of 92.3 GW
by 2040, which is worth PhP5.8 trillion in investments.
On manpower requirements, the REF creates about 601,707 job opportunities, while the CES
provides 898,747 of new jobs for the country’s workforce, of which almost 95.0 percent is “green
jobs.”

OVERVIEW
▪ Transmission Development Projects
The reinforcement and upgrading of transmission lines will improve the reliability of power supply
and expand electrification of the countryside.
For the next 10 years, the rehabilitation, expansion and development of new substations,
transmission backbone projects and island interconnection projects demand PhP348.4 billion in
financing support. On a per grid basis, the Luzon grid gets PhP100.5 billion from new transmission
line project, Visayas grid with PhP162.1 billion and Mindanao grid with PhP85.8 billion. It should be
noted that the investments only cover proposed projects with available estimated project costs.
CLEAN AND EFFICIENT ENERGY TECHNOLOGIES
▪ Energy Efficiency and Conservation
Only on its first two (2) years of promulgation, RA 11285 (or the Energy Efficiency Act of 2019) has
already brought in “green” investments to help build a clean energy future and help pump-prime the
economy.
As of April 2021, a total of PhP15.9 billion worth of investments was made possible through the
projects of designated establishments (DEs) and energy service companies (ESCOs) covering
technologies such as efficient lighting, water-cooled packaged A/C system and high efficiency
motors.
In terms of employment opportunities, additional 950 23 jobs are to be created during the
implementation year based on the total investment costs of EEC projects done by the ESCO and
DEs in 2020. Further, the continuous induced energy savings of about PhP300 million per year
require additional 4224 jobs a year for the next 20 years. On Green Buildings, its potential savings in
result in additional 30 jobs 25 per year for the next 20 years.
▪ Alternative Fuels and Technologies
In compliance with Department Circular (DC) 2020-10-0023 (“Policy Framework for the
Development of the Fuel Economy Rating, Fuel Economy Performance, and Related Energy
Efficiency and Conservation Policies for the Transport Sector and Other Support Infrastructures”),
the DOE empowers consumers by promoting fuel-efficient transport vehicles such as EVs and Hybrid
EVs (HEVs).
Under the current Department of Trade and Industry-Board of Investments’ (BOI) Investments
Priorities Plan (IPP), the manufactures of EVs and components and the establishment of EV charging
stations (EVCS) are some of the preferred activities for investments that may be entitled for additional
incentives in RA 11534 or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
The 2018 data of DTI showed that the country now has 28 firms engaged in the manufacturing of
various EVs, 11 companies for parts and component manufacturers, and seven (7) importers that
provide employment to 14,840 individuals.
Under this PEP, the EVs penetration target of 5.0 percent in the REF and 10.0 in the CES can be
translated to additional investment for the country.
23
Calculated based on the total investment cost of EE Projects in USD with assumption of 20 jobs/ USD Million due to EE improvements
and 17 jobs/USD Million if BAU is considered. Net jobs are the difference between EE improvements and BAU job creation
24
Calculated based on the projected long-term savings induced by the EE Projects minus BAU. Values are based on the assumption that
EE Improvements provide 17 jobs per USD Million, while BAU provide 10 jobs per USD Million (USD=PhP50.37).
25
Calculated based on the projected long-term savings induced by the EE Projects minus BAU. Values are based on the assumption that
EE Improvements provide 17 jobs per USD Million, while BAU provide 10 jobs per USD Million.

OVERVIEW
III. CONSUMER EMPOWERMENT

The DOE, mindful of the energy value chains implication to consumers, continues with its policy and
program formulation intended to empower consumers and promote their welfare. This action is also
anchored on the DOE’s strategic direction of strengthening consumer welfare and protection.
The facets of challenges brought by COVID-19 instigated the energy sector to design and implement
policies that are responsive to the needs of the people, while at the same time ensuring supply security
and unimpeded access to energy goods and services.
As the country is slowly drawn to transition to a low carbon energy future, transformation will not only
be seen in the system of production and consumption but also in how end-users respond to a
sustainable shift in meeting their energy needs.
A. RENEWABLE ENERGY SECTOR
The passage of RA 9513 or the Renewable Energy Act of 2008 laid down the policy mechanisms to
speed up entry and adoption of renewables by other sectors even at the consumer level. In foresight,
consumers reap the gains by sourcing their energy requirements from clean energy resources.
Among the policy mechanisms, the Green Energy Option Program (GEOP) and Net Metering Program
(NMP) are within the control of the consumers. The GEOP is a voluntary policy mechanism allowing
consumers with 100 kilowatt (kW) and above demand to source their electricity supply from RE
suppliers.26 In 2020, the issuance of the DC 2020-04-000927 provided the guidelines on the issuance of
permits to RE suppliers under GEOP. On the other hand, the NMP encourages energy consumers to
participate in RE generation for own-use. The issuance of the amended Net Metering Rules28 in 2020
simplified the processing timeline, reduced soft installation costs for prosumers 29, as well as included
off-grid areas.
Mainstreaming Renewable Energy
Renewable Energy Programs and Projects for the Agriculture and Fisheries Sector (REP-AFS)
As part of the NREP and Food Security Program, the DOE signed a Memorandum of Agreement (MOA)
with the Department of Agriculture (DA) for the development and implementation of the REP-AFS. The
program envisions increasing the use of RE-based resources in agriculture and fisheries to aid in
reducing production cost and help in improving productivity.
Productive Uses of Renewable Energy
The PURE program of the EU-ASEP is guided with the objective of increasing household income with
the use of renewable in micro-businesses. The additional income to be gained will aid farmers in their
capacity to pay for electricity services by DUs.
RE Sector’s COVID-19 Responses
In the course of the pandemic in 2020, the DOE issued an Advisory to accredited bioethanol producers
(through the Ethanol Producers Association of the Philippines or EPAP) to allocate a portion of their
anhydrous bioethanol product for the production of 70.0 percent alcohol for the utilization of hospitals,
26
DC 2018-07-0019 titled “Promulgating the Rules and Guidelines Governing the Establishment of the Green Energy Option Program
Pursuant to the Renewable Energy Act of 2008.”
27
“Guidelines Governing the Issuance of Operating Permits to Renewable Energy Suppliers under the Green Energy Option Program.”
28
DC 2020-10-0022 titled “Prescribing the Policies to Enhance the Net-Metering Program for Renewable Energy Systems” issued on
22 October 2020.
29
Refers to consumers and producers.

OVERVIEW
health workers, and general public. This formed part of their Corporate Social Responsibility (CSR) for
the community.
B. POWER SECTOR
Policies were crafted and implemented that protect the welfare of the consumers and improve their
living conditions. These include Murang Kuryente Act, suspension of the Universal Charge –
Environment Charge (UC-EC), CSP, Retail Competition and Open Access (RCOA), and the Uniform Bill
Format (DC 2018-09-0026).
Extending and Enhancing the Implementation of the Lifeline Rate
The RA 1155230 or an “Act Extending and Enhancing the Implementation of the Lifeline Rate” was
promulgated on 27 May 2021 providing further benefits to electricity consumers, specifically for those
lifeline customers. The law extends the lifeline rate for a period of 50 years (up to 2051) and enhances
its implementation by including the qualified household beneficiaries identified by the Department of
Social Welfare and Development (DSWD) under the “Pantawid Pamilyang Pilipino Program (4Ps)31.”
Energy Regulations 1-94 (ER 1-94)
The recognition of the COVID-19 pandemic being addressed down to the local level prodded the DOE
to issue DC 2020-04-000832, which enabled host LGUs to draw funds from ER 1-94 and utilize for their
local COVID-19 responses. The DOE remitted a total amount of PhP3.6 billion from ER 1-94 funds to
host LGUs during the imposition of community quarantine (16 March 2020 – 26 July 2021). Overall, the
total remittance to host LGUs reached PhP4.6 billion covering the period September 2019 – July 2021.
Grid Security through the Ancillary Services (AS) Policy
Ensuring grid security and reliability is of paramount importance to the economy for the businesses and
industries to continue with their operation, as any disruptions in their economic activities also affect the
consumers.
The Luzon grid particularly the affected franchise areas of DUs recently experienced power
interruptions because of insufficient supply (from planned outages, unplanned outages, and deratings
of power plants). This situation in Luzon is associated to the grid being placed on Red and Yellow Alerts
by the System Operator (SO) last May 31 – June 2, 2021.
Banking on the significance of power reserves or Ancillary Services (AS) to ensure business continuity
and the delivery of electricity services to consumers, the DOE issued an Advisory last 21 June 2021
reiterating the implementation of the AS Policy 33. It primarily underscores the importance of the SO’s
compliance with the AS Policy particularly in maintaining the required levels of AS in reference to
Section 2.2 of the DC (pertains to the requirements for regulating reserve, contingency reserve,
dispatchable reserve, reactive power support, and black start) and entering into firm AS Procurement
Agreements (ASPA) based on the Energy Regulatory Commission (ERC) guidelines and the AS Policy.
Power Sector COVID-19 Responses
As the COVID-19 pandemic hounded the country, the sector made swift policies and advisories that
were guided with the objective of safeguarding the consumers. These were also geared on ensuring
continuity in the delivery of energy services. The other industry responses to the pandemic apart from
the rationalization of the ER 1-94 include the following:
30 RA 11552 or “An Act Extending and Enhancing the Implementation of the Lifeline Rate, amending for the Purpose Section 73 of RA
9136, otherwise known as the Electric Power Industry Reform Act of 2001, as Amended by RA 10150.”
31 RA 11310 or “An Act Institutionalizing the Pantawid Pamilyang Pilipino Program (4Ps)” signed by the President on 27 May 2021.
32 “Rationalizing the Utilization of ER 1-94 Fund by Host Local Government Units in Response to COVID-19 Public Health Emergency.”
33 DC 2019-12-0018 titled “Adopting a General Framework Governing the Provision and Utilization of Ancillary Services in the Grid.”

OVERVIEW
▪ Regular advisories for the implementation of a “grace period” for the deadline of payments of
consumers, public and private power sector corporations, as well as contestable customers
without interest, penalties, fees, and charges. This covered: (a) consumers’ electricity bills (with
amortization option); (b) payments and obligations due, universal charges, total trading amounts
and other relevant charges falling within the original and extended ECQ; and (c) payments due
to the National Power Corporation (NPC), National Transmission Corporation (TransCo), National
Grid Corporation of the Philippines (NGCP), Power Sector Assets and Liabilities Management
Corporation (PSALM), Independent Electricity Market Operator of the Philippines (IEMOP)
including fuel/resource suppliers of generating facilities and independent power producers from
the last day of the ECQ.
▪ Memorandum to all electric power industry players to ensure normal operations of power
generation, transmission, and distribution facilities, as well as the Wholesale Electricity Spot
Market (WESM) to operate normally and provide lower electricity costs.
▪ Administrative Order (AO) 2020-05-0001 titled “Providing for a COVID-19 Response Protocol in
the Energy Sector” that requires all private and public energy companies and other related
services to implement the requirements on COVID-19 Response Protocol (incorporating
Minimum Health Standards or MHS) and providing for additional measures specific for industries,
facilities and environment based on the Business Continuity Plan (BCP).
▪ The No Disconnection Policy34 reiterated to DUs that there will be no disconnection for lifeline
consumers.
▪ The assurance of power supply from the DUs35 and generation companies36 in the COVID-19
vaccine roll out.
C. DOWNSTREAM OIL INDUSTRY
Another commodity that is essential in the economy’s continuity is petroleum products. These products,
the same with electricity, are fuels that consumer use in their normal course of life. It is deemed essential
especially in assuring the unrestricted movement of people, goods, and services.
In the downstream oil industry, public safety is a common objective as consumers must be protected
from products and facilities providing fuels.
Standards Development and Promulgation
The DOE is firm in its efforts of ensuring public safety with the promulgation of Philippine National
Standards (PNS) covering the quality of petroleum products, processes, and facilities. The development
of standards on fuel quality and facilities/infrastructures is an assurance of furthering consumer welfare
wherein there is access to safe and clean products and technologies in the downstream oil market.
Information Drive on Safety on Liquid Fuels and LPG Use
The recognition of Safety First is inherent in the industry, specifically in addressing accidents or
incidents on liquid fuels and LPG.
Increasing consumer awareness is part of the DOE’s continuing initiative in order to inform consumers
on safety tips in handling LPG. Information, Education and Communication campaigns (IECs) are
continually conducted to raise the level of consciousness of the public and stakeholders on the safe use
34 Advisory issued on 5 February 2021 entitled “Enjoining All Distribution Utilities to Implement No Disconnection for Lifeline
Customers.”
35 Advisory issued on 16 February 2021 entitled “Ensuring Reliable and Stable Electric Power Supply During the Government’s COVID-
19 Vaccine Roll Out Program.”

36 Advisory issued on 2 March 2021.

OVERVIEW
and handling of liquid fuels and LPG. In addition, the applicable and governing laws, rules, and
regulations are also presented specifically the retail of these products.
Downstream Oil Sector COVID-19 Responses
The assurance of energy supply also extends to having unhindered access to petroleum products.
During the pandemic, the DOE continued to monitor prices (international and local) to avoid
unnecessary / unjustified price adjustments. The public was updated with the sufficiency of petroleum
products inventory (45 days during the ECQ). There was also a price freeze on household kerosene
and LPG products.
Ensuring supply sufficiency meant that the DOE enforced the compliance to the minimum inventory
requirement (MIR). The country’s inventory of petroleum products stood at 39.6 days of supply
equivalent to 2.52 billion liters (as of 28 June 2021). The inventory is broken down into 30.4 days of on-
shore inventory of crude and 9.2 days of supply in-transit.
The President also issued EO 13 titled “Temporarily Modifying the Rates of Import Duty on Crude
Petroleum Oil and Refined Petroleum Products under Section 1611 of Republic Act (RA) No. 10683,
Otherwise known as the Customs Modernization and Tariff Act.” The EO states that crude oil and
refined petroleum will be temporarily subjected to an additional import duty of 10.0 percent on top of
the existing import duties to raise funds for the government’s COVID-19 response. Correspondingly,
the DOE issued the DC 2020-05-001237 or the “Guidelines Implementing the Temporary Modification of
Import and Duty Rates on Crude Petroleum Oil and Refined Petroleum Products as Provided under EO
113.” The DOE for its part also continued to monitor the implementation of the EO 113.
D. ENERGY EFFICIENCY AND CONSERVATION
As every Filipino is a consumer and as an end-user, there comes the responsibility of practicing energy
efficiency and conservation. The DOE’s call for energy efficiency and conservation to be a way of life
was realized with the passage of the Energy Efficiency and Conservation Act. The law contains
provisions (e.g., Minimum Energy Performance standards covering energy consuming devices and
mandatory energy labeling) that are for the benefit of consumers.
Energy Performance and Rating System
The country’s existing energy labeling will be further enhanced as a new energy label for products that
features a star rating system is being developed. This will make it relatively easy to compare the energy
efficiency of energy consuming products (ECPs). The star rating is equivalent to the energy efficiency
ratio (EER) related to the cooling seasonal performance factor (CSPF) for air conditioning units (ACUs),
energy efficiency factor (EEF) covering refrigerating appliances and television sets, and efficacy for
lighting products. The star rating also contains information on estimated energy consumption and an
embedded quick response (QR) code for the end user’s reference.
IEC Campaign on EEC Policies, Programs and Best Practices
The DOE continues to conduct the E-Power Mo to empower energy consumers and increase public
awareness on the intelligent use of energy. The programs are categorized into the following: a) E-
Safety, which deals on safety and saving measures through energy efficiency; b) E-Secure wherein
security in the delivery of quality, reliable, and affordable energy service; and c) E-Diskarte, which
empowers consumers through a wide range of options in the use of conventional and alternative energy
sources.
In addition, #EnergyAbility provides the call or invitation to organize and make energy efficiency and
the use of renewable energy and other innovative technologies (including Information and
37
Signed on 11 May 2020

OVERVIEW
Communications Technology) as a “way of life” and the #EnerhiyangAtin, which points to the direction
or goal towards energy security, self- sufficiency and accountability from all energy users and industry
players
E. BAYANIHAN: 24/7 ENERGY SERVICES HOTLINE
The establishment of the Bayanihan: 24/7 Energy Services Hotline is the energy sector’s response to
handling and attending to all energy-related consumer concerns during the government’s imposition of
community quarantine. This service extended to consumers is still ongoing as the DOE continues
addressing energy related concerns and issues.
From the onset of the hotline in April 2020 up to 30 June 2021, the DOE has received 15,450 requests
for assistance. The request for assistance is composed of 7,897 calls / short messaging service or SMS
/ viber and 7,553 emails. Majority of the inquiries received are on DOE’s operation, electricity services
and bills, and prices of petroleum products.
IV. PROMOTING THE NATIONAL INTEREST WITH THE

INTERNATIONAL COMMUNITY
The continuous shift from fossil fuels to cleaner energy sources has become a trend worldwide.
However, the world is still falling behind on achieving the reduction target in energy intensity for 2030,
which called for strengthened partnerships and collaboration across countries. At the same time, the
COVID-19 pandemic, which has evolved into more virulent strains, has also raised the need to
recalibrate plans in the energy sector as it highlighted its role towards inclusive economic recovery.
Promoting the National Interest with the International Community remains as one of the key priorities as
reflected in the AmBisyon Natin 2040, the Philippine Development Plan 2017-2022 and the DOE’s thrust,
specifically on “foster stronger international relations and partnerships” that shall be realized from
engagements in bilateral, regional, and multilateral energy cooperation through:
a) Participating in the major regional groupings;

b) Sharing of best practices in international fora;
c) Forging international agreements with other countries and international organizations;
d) Seeking funding assistance from external sources; and,
e) Addressing emerging issues at the regional and international levels.
Building on these strategies, the DOE’s work, prospects, and commitments in promoting the Philippine
Energy agenda in the international arena shall be pursued over the planning period. Recognizing the
potential effects of the regional and global energy trends to the local energy landscape, the DOE draws
and determines the priorities to be taken up in several international cooperation engagements, which
are consistent with the current thrusts and best interests of the country. These include: (a) Association
of Southeast Asian Nations (ASEAN); (b) Asia Pacific Economic Cooperation (APEC); (c) East Asia
Summit (EAS); (d) Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA), (e)
UNFCCC; (f) Economic Partnership and Free Trade Agreements; and, (g) other bilateral and regional
energy related undertakings.
The DOE’s undertakings with the regional and international community cover implementing activities
contained in different work plans like the Energy Security Initiative (ESI) under APEC, the APEC
Putrajaya Vision 2040, the ASEAN Plan of Action on Energy Cooperation (APAEC) Phase II: 2021-2025,
and the BIMP-EAGA Vision 2017-2025 (BEV2025).
The APEC ESI was established in 2001 to craft short- and long-term measures in responding to any
energy supply disruptions and address broader energy challenges in the region. Its scope has
expanded with the inclusion of energy resiliency along with the creation of the Energy Resilience Task

OVERVIEW
Force, which the Philippines serves as the co-chair together with the United States. Under the APEC-
Energy Working Group (EWG), the region sets aspirational targets on increasing renewable share and
reduction in energy intensity. Meanwhile, the APEC Putrajaya Vision 2040 aims to build an “Open,
Dynamic, Resilient, and Peaceful Asia-Pacific for the Prosperity of all our People and Future
Generations.”
The APAEC Phase II, with a sub-theme of “Accelerating Energy Transition and Strengthening Energy
Resilience through Greater Innovation and Cooperation,” focuses on seven (7) program areas. These
are the ASEAN Power Grid, Trans-ASEAN Gas Pipeline (which also covers LNG connectivity and
accessibility), Coal and Clean Coal Technology, Energy Efficiency and Conservation, Renewable
Energy, Regional Energy Policy and Planning (advance energy policy and planning to accelerate the
region’s energy transition and resilience), and Civilian Nuclear Energy. Likewise, APAEC adopts targets
on increasing renewable share in primary energy supply and generation capacity to 35.0 percent by
2025, and reduction in energy intensity.
The BIMP-EAGA BEV2025 has a nine (9)-year Roadmap (2017-2025) to achieve a resilient and
improved energy sector for sustainable development with reliable and stable power supply, and
enhanced electrification in the respective member countries by optimizing the use of domestic energy
resources. Under this cooperation agreement, several studies were undertaken to include the pre-
feasibility study on East Kalimantan, Borneo-Mindanao Power Interconnection.
The DOE has also been engaging in free trade areas/regional trade areas discussions, such as the World
Trade Organization (WTO), ASEAN Free Trade Area (AFTA), and Regional Comprehensive Economic
Partnership (RCEP) Agreement, among others, to advance the energy sector’s interests on lowering
and removing trade barriers and improving market access for goods and services, as well as facilitate
entry of investment. Other bilateral trade agreements include the Philippines-Japan Economic
Partnership Agreement (PJEPA) and the Philippine-European Free Trade Association, etc.
As part of its strategy, the DOE has strengthened collaboration with international organizations and
countries for the necessary assistance involving energy security, access to electricity, increasing share
of clean energy, development of new emerging clean energy technology, and on energy transition
program.

CHAPTER I
ENERGY SITUATIONER
ENERGY SITUATIONER
A. TOTAL FINAL ENERGY CONSUMPTION (TFEC)

Total final energy Figure 4. TOTAL FINAL ENERGY CONSUMPTION BY SECTOR (2019 vs. 2020), MTOE
consumption (TFEC)
reached 32.4 million tons
of oil equivalent (MTOE) in
2020, a 10.7 percent drop
from a year-ago level of
36.3 MTOE (Figure 4).
Varying levels of
community quarantines
that followed the
declaration of State of
Public Health Emergency
in March 202038 halted
major economic activities,
including public and
private transportation,
which resulted in reduced
energy consumption of
end-use economic sectors, except households. The transport sector posted the steepest decline with
22.5 percent in its energy utilization. Increased demand for personal protective equipment (PPE) drove
non-energy use (i.e., as raw materials / feedstock39) to increase by 11.2 percent.
Households consumed 10.0 MTOE Figure 5. TOTAL FINAL ENERGY CONSUMPTION BY SECTORAL SHARES
(2020 vs. 2019)
and contributed about a third (31.0
percent share from 26.8 percent in
2019) of TFEC. Of this, electricity
consumption accounted for bulk as
it significantly increased by 12.2
percent due to alternative work-
from-home (WFH) scheme and
adherence to “stay-at-home”
ordinances imposed to curb the
spread of COVID-19 (Figure 5). The
transport sector dropped to second
place with its 30.4 percent share
from 35.0 percent in 2019 as
restrictions in land, air and water
travel led to depressed demand for
gasoline and diesel. Industry and
services contributed 19.2 percent
and 14.2 percent shares,
respectively. Energy utilization for
industrial processes dipped by 15.1
percent, while that of service establishments dropped by 6.6 percent as extended lockdowns forced
non-essential businesses and factories to temporarily cease operations. The agriculture sector, having
38
Proclamation No. 922 s. 2020 “Declaring a State of Public Health Emergency throughout the Philippines” (March 8, 2020)
39
Includes naphtha, lubes and other petroleum products

ENERGY SITUATIONER
the least contribution with 1.3 percent share, registered a 7.7 percent contraction in its energy use, as
it suffered from the impact of strong typhoons and African Swine Fever (ASF) that persisted during the
year.
I. Total Final Energy Consumption by Fuel

Aggregate consumption of oil Figure 6. TOTAL FINAL ENERGY CONSUMPTION BY FUEL (2019 vs. 2020)
products accounted for 16.0 MTOE,
13.2 percent lower than last year’s
18.5 MTOE and contributing almost
half (49.4 percent) in 2020 TFEC
(Figure 6). Gasoline and diesel, with
combined share of 74.8 percent of
total oil consumption, went down by
14.8 and 14.6 percent, respectively,
as operation of jeepneys, buses and
other modes of mass transportation
were suspended for several months.
Electricity consumption accounted

for 22.1 percent as it fell by 4.4
percent to 7.2 MTOE from its year-
ago level of 7.5 MTOE. This was due
to the suspension or cut-back in economic activities in both the industry and services sector, particularly
in the Greater Manila Area (GMA) and other economic zones across the country. Meanwhile, household
electricity consumption increased its share to 40.1 percent of total as majority of the workforce shifted
to WFH scheme for several months.
Biomass40 for end-use applications contributed

Figure 7. TOTAL FINAL ENERGY CONSUMPTION
21.8 percent share, albeit declined by 3.5 percent BY FUEL SHARES (Percent), 2020
vis-à-vis the 2019 level. Usage of biomass in
households increased by 1.2 percent and
accounted for the bulk with a share of 82.6
percent of the fuel’s 7.1 MTOE consumption level.
Aggregate biomass utilization among food
services, sugar and food processing industries,
accounted for the remaining shares of 17.4
percent, significantly declined by 21.1 percent
due to reduced operating hours as a result of
slowdown in consumer demand41 (Figure 7).
Coal consumption for end-use applications,

primarily in the cement industry, posted a
substantial decline of 30.8 percent at 1.6 MTOE
from 2.4 MTOE in 2019. This was attributed to the production and operational disruptions brought by
the pandemic as cement companies reported delayed expansion projects.42
The reduction in the utilization of gasoline and diesel translated to a 15.0 percent slump in the aggregate
consumption of biofuels (biodiesel and bioethanol) as levels dropped to 474.8 kTOE from 558.4 kTOE
of the previous year.
40
Includes charcoal, fuelwood, rice hull, bagasse, agricultural and animal wastes.
41
Memorandum Circular (MC) No. 20-04, Series of 2020 “Prescribing the Implementing Guidelines for Resolution No. 12 Issued by the
Inter-Agency Task Force (IATF) for the Management of Emerging Infectious Diseases on Social Distancing and Business Operations.
42
Statement of Cemex Holdings Philippines during the Public Hearing on the Conduct of Monitoring of the Philippine Cement Industry
[TCI (SG) No. SG-2020-MROC-Cement by the Tariff Commission] (December 18, 2020).

ENERGY SITUATIONER
Consumption of natural gas for non-power applications plunged by 39.5 percent due to the closure of
the Philippine Shell Petroleum Corporation (PSPC)’s Tabangao refinery in response to the drastic
decline in local product demand and the significant deterioation of regional refining margins brought by
the COVID-19 pandemic.
II. Total Final Energy Consumption by Sector
A. Transport
The transport sector bore the brunt of the restrictions imposed on the movement of individuals, goods
and services to stem the spread of COVID-19. It’s total energy consumption dropped by 22.5 percent
– an unprecedented decline since 1990. This was driven by the initial total ban on all forms of public
transportation under the enhanced community quarantine (ECQ), as well as suspension of domestic air
and inland water transport. Despite the upgrading of community quarantines that allowed gradual
resumption of transport routes, public transport operations remained at reduced capacity that further
depressed energy demand of the sector.
Road transport, which accounted for 89.9 percent of the sector’s energy consumption (Figure 8), posted
a 20.7 percent decline caused by reduced mobility options because of travel restrictions. Such was
evident in the 30.0 percent reduction in average traffic congestion levels in Metro Manila during the
year.43
Energy consumption for inland water Figure 8. TRANSPORT FINAL ENERGY CONSUMPTION
transport posted a 15.2 percent BY SUBSECTOR (Percent), 2020
reduction, from 898.8 kTOE in 2019 to
762.6 kTOE in 2020. Mobility
restrictions due to community
quarantines throughout the year
hampered the operation of cargo
operators, shippers and other marine
service providers. There was a
reduction in the cargo throughput and
passenger volume of 8.4 percent and
70.3 percent, respectively, based on
data from the Philippine Ports
Authority (PPA).44
Domestic air transport suffered the

biggest setback, as its energy
consumption plummeted by 65.1
percent to 218.7 kTOE, the lowest recorded post-2009 Asian Financial Crisis. Travel restrictions due to
COVID-19 resulted in suspension of domestic flights starting in March 2020, while lockdowns and
quarantines crippled domestic tourism. The data from the Civil Aeronautics Board (CAB) indicated that
the air cargo volume more than halved vis-à-vis 2019, dropping to its lowest level of 147.7 million
kilograms since 2011.45
Energy consumption for railway transport, with a meager share of 0.1 percent to total transport, went
down by 24.6 percent to 8.1 kTOE from 10.7 kTOE in 2019 as quarantine restrictions froze the country’s
main railway systems: Light Rail Transit Lines 1 and 2, Metro Rail Transit 3, and Philippine National
Railways for several months.
43
COVID-19 and Transport in Asia and the Pacific: Guidance Note (ADB, December 2020).
44
Summary Port Statistics 2019 and 2020 (Philippine Ports Authority).
45
Civil Aeronautics Board (CAB) Statistics.

ENERGY SITUATIONER
The recorded declines in energy

consumption across all transport modes led Figure 9. TRANSPORT FINAL ENERGY CONSUMPTION BY
FUEL (Percent), 2020
to the downward trend in volume per type of
fuel. Consumption of gasoline and diesel, with
its combined share of 92.0 percent to
transport demand (Figure 9), fell by 14.9
percent and 24.2 percent, respectively, owing
to the initial suspension and eventual
reduction in operating capacities of public
utility vehicles (PUVs). Utilization of
bioethanol and biodiesel likewise posted
parallel reductions of 14.8 percent and 23.5
percent, respectively. Aviation fuels nose-
dived by 65.1 percent due to curtailment of
domestic air travel, while fuel oil consumed in
domestic shipping industry contracted by
31.7 percent. Auto-LPG, with its declining
viability as fuel for taxis, decreased by 50.1 percent.
B. Households
Changes in workforce schemes and restriction in movements due to COVID-19 contributed to the shift
in the household’s energy consumption pattern. This resulted in an increment of 3.3 percent from 2019
level of 9.7 MTOE to 10.0 MTOE in 2020.
Household electricity consumption registered a 12.2 percent hike, as levels reached 2.9 MTOE from 2.6
MTOE in 2019. It’s share to the sector’s total energy consumption likewise improved to 29.4 percent
brought by increased usage of electrical appliances, particularly for work, space cooling and
recreational purposes. With close to 900,000 additional households with access to electricity during the
year,46 household sector accounted for the bulk of total electricity consumption.
Biomass continues to occupy the

biggest chunk at 58.3 percent share of Figure 10. ENERGY CONSUMPTION OF THE RESIDENTIAL SECTOR
the energy consumption of households BY FUEL SHARES (Percent), 2020
due to its abundance and accessibility
in the rural areas (Figure 10). Its
aggregate level slightly went up by 1.2
percent to 5.8 MTOE. With longer
hours spent at home, households
consumed more fuelwood and
charcoal for cooking and heating by
0.5 percent and 4.5 percent,
respectively.
Oil products, specifically LPG and

kerosene, accounted for 12.3 percent
share of household energy
consumption. Utilization of these oil
products for cooking and lighting went
down by 4.3 and 29.4 percent, respectively.
46
Electrification level as of December 2020, around 23.5 million households have access to electricity: DOE Energy Annual Report
(EAR), 2020

ENERGY SITUATIONER
C. Industry
Total industry output contracted by 13.2 percent as only the production of essential goods was allowed
by the government for continuous operation. The sector’s energy requirement slipped by 15.1 percent
from 2019 level of 7.3 MTOE to 6.2 MTOE in 2020.
While the manufacturing Figure 11. ENERGY CONSUMPTION OF THE INDUSTRIAL SECTOR
subsector consistently accounted BY SUBSECTOR (Percent), 2020
for the lion’s share at 88.8 percent
(Figure 11), its energy
consumption decreased by 17.9
percent driven by reduced
utilization in energy-intensive
subsectors such as food
processing (-18.5 percent),
cement (-45.2 percent),
machinery and equipment (-16.1
percent).
The construction sub-sector,

touted as the fastest-growing in
Asia-Pacific,47 registered an 8.5
percent drop in its energy
consumption to 249.5 kTOE from
last year’s 272.7 kTOE. Construction activities were completely halted in the second quarter and
workers were temporarily displaced due public health concerns and travel restrictions. The subsector
also suffered from reduced infrastructure spending due to re-allocation of government resources to
address the pandemic.
The mining subsector, unaffected by the COVID-19 pandemic,48 increased its energy consumption by
37.1 percent to 447.8 kTOE. Since large-scale metallic mining is recognized as export industry and
allowed to continue operating following precautionary measures as advised by the Inter-Agency Task
Force (IATF), majority of mineral commodities, particularly that of nickel, gold and copper reported a
growth in production output. Moreover, the ban on Indonesia’s nickel export allowed the Philippines to
become the largest supplier of nickel ore to China in response to the strong demand in its stainless-
steel industry.49
Electricity was the primary fuel Figure 12. ENERGY CONSUMPTION OF THE INDUSTRY BY FUEL SHARES
used for various production (Percent), 2020
processes, as it acounted for 35.4
percent share of total industry’s
energy consumption. However, its
utilization dwindled by 9.3 percent
to 2.2 MTOE as COVID-19
response measures impeded
manufacturing activity and reduced
the global demand for industrial
products.
With its 25.1 percent share in

industry’s energy demand (Figure
12), aggregate consumption of oil
products went up by 12.7 percent
to 1.6 MTOE from its year-ago level Biodiesel (0.2%) Natural Gas (0.6%)
47
“Philippines’ Construction Industry to reach USD75.1 billion in 2021,” Global Data, August 2020.
48
Report of the Chamber of Mines of the Philippines (COMP) during the webinar hosted by Arangkada Philippines.
49
S&P Global Market Intelligence Report (21 July 2020).

ENERGY SITUATIONER
of 1.4 MTOE. Among oil products, fuel oil and diesel recorded growth rates of 17.6 and 10.1 percent,
respectively, as their utilization increased in mining subsector and its related industries. Coal
consumption, primarily in the cement manufacturing industry, shrank by 32.6 percent to 1.5 MTOE from
2.2 MTOE of 2019. This was driven by the slowdown in cement demand as infrastructure projects were
halted or delayed due to strict quarantine controls, while an increasing volume of imported cement
affected the local production50. Biomass, used extensively in food processing and sugar production,
accounted for a 14.6 percent share of the sector’s energy demand with a recorded level of 0.9 MTOE.
On the other hand, a minimal demand for natural gas (37.2 kTOE) for non-power application and
biodiesel (13.1 kTOE) was likewise recorded during the period.
D. Services51
As the government worked extensively towards Figure 13. ENERGY CONSUMPTION OF THE SERVICES
“flattening the curve” to avoid overwhelming the SECTOR BY FUEL SHARES (Percent), 2020
country’s healthcare system, mandatory closures
of business establishments were implemented.
However, it crippled large-, medium-, small and
micro-sized establishments (MSMEs),
particularly those engaged in wholesale and retail
trade, while the reduced capacity of public
transportation created mobility and accessibility
challenges for consumers and workers alike, as
well as travel restrictions that impeded domestic
tourism demand. As such, the aggregate energy
consumption of services establishments slipped
by 6.6 percent to 4.6 MTOE from its 4.9 MTOE
level in the previous year.
Diesel accounted for the bulk of the sector’s total energy demand with 40.7 percent share (Figure 13),
its consumption increased by 10.0 percent to 1.9 MTOE. Lower pump prices that prevailed during the
year allowed the hike in diesel sales to ensure unhampered operations of frontline services, particularly
hospitals and other allied medical health establishments. LPG consumption dropped by 6.4 percent as
food establishments were either closed or operating on reduced capacities. Consumption of fuel oil
likewise contracted by 20.2 percent, albeit contributing 2.7 percent share of total energy demand.
Electricity usage in the sector significantly declined by 18.6 percent due to curtailed operating hours of
establishments such as malls and offices, while hotels were ordered closed down for extended months.
Biomass consumption likewise slipped by 7.8 percent from reduced utilization in food services
establishments.
E. Agriculture
Table 3. AGRICULTURE ENERGY CONSUMPTION BY SUBSECTOR
Aside from supply chain
Subsector 2019 2020 Growth Rate (%)
disruptions, depressed local
Agri-Industry 253.9 262.7 3.5
demand and export volume,
Agri-Crops Product 84.3 65.4 -22.4
mobility challenges for workers
Livestock/Poultry 161.6 189.9 17.5
due to restrictions imposed
Agri Services 7.9 7.3 -7.5
because of the COVID-19 Forestry 1.1 1.4 26.2
pandemic, the agriculture was Fishery 218.5 172.7 -20.9
likewise battered by series of Total 473.5 436.8 -7.7
devastating typhoons and
outbreak of the African Swine Fever (ASF). Given the lackluster performance of agriculture-related
activities, the sector posted a 7.7 percent decline in its energy consumption from 473.5 kTOE in 2019
to 436.8 kTOE in 2020 (Table 3).
50
DTI’s Department Administrative Order No. 20-08 titled “In the Matter of the Definitive General Safeguard Measures on the Importation of Cement
from Various Countries,” issued on 26 October 2020.
51
Trade and services, excluding Transport.

ENERGY SITUATIONER
The energy utilized in crop production

decreased significantly by 22.4 as the Figure 14. ENERGY CONSUMPTION OF THE AGRICULTURE
SECTOR BY FUEL (% Shares), 2020
volume of major crops (palay, sugarcane
and cassava) fell during the year due to
back-to-back typhoons that hit parts of
the country during the last quarter of
2020.52 On the other hand, the energy
consumption of the livestock and poultry
subsector went up by 17.5 percent
driven by gains in poultry production vis-
à-vis impact of ASF on hog
breeding/fattening. The poultry
subsector production volume rose due to
shift in demand from pork to chicken as
part of household’s strategy to cope with
the incessant increase in pork prices,
and the heavy engagement of integrators
like San Miguel and Bounty.53 The fishery
subsector lost its momentum as the
fishing season from the first semester was greatly affected by quarantine restrictions implemented
starting mid-March of the year, which resulted in a 20.9 percent drop in energy consumption from last
year’s 218.5 kTOE level. With the slump in agriculture subsectors, its support services also contracted
by 7.5 percent. Despite its meager share to the sector’s energy demand, the forestry sub-sector
increased its consumption to 1.4 kTOE from 1.1 kTOE in 2019.
The agriculture sector relied heavily on oil products and electricity to fuel its processes. Electricity
contributed 50.8 percent share to the sector’s total energy consumption (Figure 14). It registered a 7.5
percent contraction to reach 222.0 kTOE in 2020 from its 2019 level of 239.9 kTOE. Among the oil
products, diesel consumption accounted for 45.4 percent share of total, despite an 8.8 percent
reduction from its previous year’s level of 217.5 kTOE as the lockdowns affected the flow of goods from
farms to urban markets. Biodiesel and fuel oil followed the same trend, posting reductions of 6.5 percent
and 8.1 percent, respectively. Gasoline posted an increase of 8.0 percent from 9.0 kTOE in 2019 to 9.8
kTOE, while a minimal volume of kerosene was reported at 0.5 kTOE.
Figure 15. REFINERY PRODUCTION BY FUEL (2019 vs. 2020), MTOE
B. TRANSFORMATION
I. Oil Refining
In May 2020, the country’s two (2)

refineries – Pilipinas Shell Petroleum
Corporation (PSPC) in Tabangao, Batangas
and Petron in Limay, Bataan – went on
economic shutdown to give way to
maintenance activities on major processing
units and mitigate the effects of low
demand and poor refining margins on fuel
products as caused by COVID-19
pandemic.54 However, prolonged
depressed demand for oil products during
the year led to PSPC’s decision to permanently close and convert its refinery site into a full import
terminal in September of the year. On the other hand, Petron underwent alternate shutdown and
52
Super Typhoon Rolly (1 November 2020), Tropical Storm Siony and Tonyo (5-8 November 2020), Typhoon Ulysses (11-12 November
2020)
53
Report on the 2020 Performance of Philippine Agriculture (Philippine Statistics Authority)
54
Based on Petron’s disclosure to the Philippine Stock Exchange dated 14 December 2020

ENERGY SITUATIONER
resumption of its refinery for the remaining months. The Shell refinery shutdown reduced the country’s
refining output by 41.8 percent to 34.6 million barrels (MMB) from 59.5 MMB of last year.
As such, the volume of total marketable products posted a steep descent of 41.4 percent to 4.5 MTOE
vis-à-vis last year’s level of 7.6 MTOE (Figure 15). The share of total marketable products for the period
were composed of diesel (45.1 percent), gasoline (22.6 percent) and fuel oil (7.6 percent). The rest of
the products were aviation fuel (7.6 percent), LPG (3.7 percent), kerosene (0.5 percent), and naphtha
and other products (12.9 percent).
II. Power Generation
Figure 16. POWER GENERATION BY FUEL (2019 vs. 2020), TWH Aggregate power generation output
from all power plants fell by 4.0 percent
to reach 101.8 terawatt-hour (TWh) in
2020 as the country entered recession
that caused reduction in economy-wide
electricity demand. Coal power plants
contributed more than a half at 57.2
percent (58.2 TWh), natural gas at 19.2
percent (19.5 TWh), geothermal and
hydropower contributed 10.6 percent
(10.8 TWh) and 7.1 percent (7.2 TWh),
respectively. On the other hand, the
combined generation output of solar,
wind and biomass recorded at 3.7 TWh,
representing 3.6 percent share of the
total generation mix during the period
(Figure 16).
Figure 17. FUEL INPUT TO POWER GENERATION BY FUEL
(2019 vs. 2020), MTOE The total volume of fuel input for power
generation contracted by 0.3 percent to
31.0 MTOE in 2020 (Figure 17). Fossil
fuels accounted for about two-thirds (62.2
percent), bulk of which from coal with 15.7
MTOE. Coal input increased by 3.8
percent from its year-ago level of 15.1
MTOE. On the other hand, natural gas and
oil (diesel and fuel oil) dropped by 9.8
percent and 35.6 percent, respectively,
caused by changing patterns in overall
electricity demand due to the full
lockdowns.
With increased utilization of fossil fuels,

renewable energy’s (RE) share posted a
slight reduction from last year’s 11.8
MTOE as levels dropped to 11.7 MTOE.
Geothermal slightly increased by 0.6
percent from 9.2 MTOE in 2019, while
hydro input went down by 10.4 percent from 2.0 MTOE to 1.8 MTOE. The combined inputs from solar,
wind and biomass registered at 0.7 MTOE, a 16.1 percent higher than the previous year’s level. Such
significant increase of variable RE’s fuel input was attributed to the 21.5 percent and 10.2 percent leap
in biomass and solar, respectively, during the period.

ENERGY SITUATIONER
C. TOTAL PRIMARY ENERGY SUPPLY

Consistent with the downtrend in Figure 18. TOTAL PRIMARY ENERGY MIX BY FUEL (2019-2020), % Shares
energy demand, total primary energy
supply (TPES) fell to 56.4 MTOE in
2020, a 5.8 percent lower vis-à-vis 2019
level of 59.9 MTOE. The indigenous
and net imported energy levels
registered 4.0 percent and 7.8 percent
reductions, respectively. With the
decline in net importation, energy self-
sufficiency improved by 1.0 percentage
points from 51.6 percent in 2019 to 52.6
percent (Figure 18).
Coal overtook oil as the country’s

biggest energy source with 30.8
percent share of TPES vis-à-vis oil’s
29.2 percent share. Aggregate oil
supply declined by 13.7 percent to 16.5
MTOE due to cuts in domestic
production and net importations. On
the other hand, despite an uptrend in
coal importation for power generation
that offset the slump in local coal
production, the total coal supply posted
a slight reduction of 0.8 percent.
Adding up natural gas’s share of 5.8 percent, fossil fuels accounted for a 65.8 percent share of TPES.
Meanwhile, despite an increase in the percent share of aggregate RE supply to TPES, from 32.9 percent
in 2019 to 34.2 percent in 2020, the total RE supply went down by 2.0 percent reaching 19.3 MTOE
during the period.
I. Indigenous Energy
Total indigenous energy production dropped by 4.0 percent to 29.7 MTOE, pulled down by reduced
domestic production of coal (5.8 percent) and natural gas (9.3 percent). Among the sources of
indigenous energy, only geothermal and solar contributed a positive growth rate during the period.
A. Fossil Fuels
Oil. With only 0.8 percent contribution to TPES, total domestic crude oil production55 declined by 12.7
percent, from 522.6 kTOE in 2019 to 456.3 kTOE. Crude oil production has been on the downtrend
since 2015 driven by declining viability of the country’s current oil fields. Oil wells in Nido, Matinloc
and North Matinloc have ceased operation, while Galoc and Alegria produced lower crude volumes.
Meanwhile, production of condensate from the Malampaya gas field, which is wholly exported, dropped
by 13.4 percent vis-à-vis its 1.4 percent contraction in 2019 production level.
Coal. While indigenous coal accounted for 12.1 percent share of TPES, majority of coal mines in the
country registered lower production output. Coal output from Semirara Island, the country’s largest coal
mine located in the province of Antique, posted a 5.8 percent decline during the year, attributed to the
Semirara Mining and Power Corporation (SMPC)’s decision to voluntarily defer operation in a block
within its Molave mine area due to water build-up issues.56 Likewise, an aggregate output from small-
scale mining was 13.4 percent lower vis-à-vis 2019 level.
55
Includes condensate
56
Based on SMPC’s disclosure to the Philippine Stock Exchange dated 01 December 2020.

ENERGY SITUATIONER
Natural Gas. Natural gas production stood at 3.3 MTOE, equivalent to a 5.8 percent share of TPES.
Output from the Malampaya field, the country’s single source of natural gas, declined by 9.3 percent
from its 2019 level of 3.6 MTOE. The reduction was primarily due to depressed demand for electricity
in the Luzon grid due to the implementation of community quarantines.
B. Renewable Energy
Geothermal. Geothermal maintained its position as the biggest contributor to total indigenous energy
at 31.2 percent share, equivalent 16.4 percent share of TPES in 2020. Geothermal supply slightly
improved by 0.6 percent to reach a level of 9.2 MTOE during the period.
Biomass. Next to geothermal, biomass energy accounted for the second largest share at 25.5 percent
of the country’s total indigenous energy supply, providing 13.4 percent share to TPES. Despite being
an abundant resource, biomass supply went down by 2.2 percent to 7.6 MTOE from its year-ago level
of 7.7 MTOE, attributed to reduced utilization for end-use applications. However, its utilization for power
generation increased with additional capacities that came in during the year, including the Surallah
Power Generation, Inc.’s 6-MW Biomass Power Plant Project installed during the first quarter (Q1) of
2020. 57
Hydro. Hydro supply, which accounted for 6.0 percent share of the total indigenous energy supply and
3.2 percent share of TPES, was hounded by “mild” El Niño experienced by the country from 2019 until
the early part of 2020. It contributed to the 10.4 percent reduction in hydropower production, as levels
went down to 1.8 MTOE from last year’s 2.0 MTOE.
Solar. Despite a meager share of 0.2 percent to TPES, solar energy has steadily gained popularity and
preference as a technology for power applications. This led to the 10.2 percent hike in its supply levels
to 118.0 kTOE from 107.1 kTOE a year ago. Two (2) solar projects58 commenced commercial operations
– the Concepcion 1 Solar Power Project (100.6 MW) and Cadiz Solar Power (132.5MW).
Wind. Wind energy contributed 0.2 percent share to TPES with supply levels fell by 1.5 percent at 88.3
kTOE in 2020 compared to 89.6 kTOE last year.
Biofuels. Depressed oil consumption due to the COVID-19 pandemic brought the domestic supply of
biofuels (biodiesel and bioethanol) to decrease by 24.1 percent from previous year’s 376.9 kTOE to
286.1 kTOE. Domestic supply of biofuels contributed 1.0 percent share to the total indigenous energy
during the period. Currently, there are 13 biodiesel producers and 12 bioethanol facilities in operation
with combined capacites of 707.9 million liters (biodiesel) 59 and 380.5 million liters (bioethanoll), 60
respectively.
II. Net Energy Imports61
As COVID-19 pandemic created an unprecedented disruption in global trade, the country’s net energy
imports declined by 7.8 percent from 28.9 MTOE in 2019 to 26.7 MTOE in 2020. Of the total net energy
imports, three-fifths (59.9 percent) were oil and oil products, while coal and biofuels contributed 39.3
percent and 0.7 percent shares, respectively, to total net energy imports (Figure 19).
Of the 17.3 MTOE aggregate oil import volume, 74.3 percent was finished oil products and the rest
crudes. Crude oil imports fell dramatically by 54.3 percent from 8.2 MTOE in 2019 to 4.4 MTOE, while
finished oil products registered a 6.4 percent reduction from its year-ago level of 13.7 MTOE. The
downtrend in oil importation is driven by the COVID-19 pandemic that led to the economic shutdown of
57
DOE website/renewable energy/awarded_biomass_2020-12-31.pdf
58
DOE website/renewable energy/awarded_solar_2020-12-31.pdf
59
DOE website/renewable_energy/list-of-accredited-biodisel-producers-as-of-2020-12-31.pdf
60
DOE website/renewable_energy/list-of-accredited-bioethanol-producers-as-of-2020-12-31.pdf
61
This is derived as total primary energy supply (TPES) less indigenous production. Alternatively, it can also be calculated as the sum of
imports and stock change (+/-) less exports and international bunkers (aviation and marine)

ENERGY SITUATIONER
country’s refineries – Petron’s Bataan refinery and PSPC’s Tabangao refinery for several months, as
well as depressed domestic demand due to the halt in economic activity and restrictions on mobility
across the country.
With the closure of PSPC’s Figure 19. NET ENERGY IMPORTS BY FUEL (% Shares), 2020
Tabangao refinery, the excess
volume from the Galoc field
allowed for crude oil exports to
increase more than twice (254.6
percent) its 2019 level of 133.6
kTOE. Exports of finished oil
products went down by 2.1
percent to 0.9 MTOE attributable
to the reduction in global demand.
Exports of condensate from
Malampaya also posted a 13.4
percent drop from its 2019 level of
418.3 kTOE.
Middle East was the primary

source of crude imports with 73.0 percent share, while Russia and nearby countries in the Asia-Pacific
Region62 supplied 15.4 percent share and 11.7 percent share, respectively. On the other hand,
Singapore was the major export market for crude oil and finished petroleum products.
Imported coal posted a 6.6 percent hike to reach 15.6 MTOE vis-à-vis 14.6 MTOE in 2019 driven by
increased demand from coal-fired power plants. Indonesia remained as the country’s major source of
imported coal (96.9 percent share), while Australia, Vietnam and Russia supplied the rest of the import
volume.
Coal exports fell by 24.6 percent to 4.0 MTOE due to low domestic production output and weak demand
in China, the country’s top export market (96.3 percent share), with the remaining export volume traded
to India and Thailand. On a positive note, South Korea and Cambodia became new export markets
during the year.
Bioethanol imports went down by 6.7 percent to reach 169.1 kTOE in 2020, from its 2019 level of 181.2
kTOE. This was due to the drop in gasoline demand as mandatorily blended with bioethanol.
D. ENVIRONMENTAL IMPACT
With economic activity halted and public transportation restricted across the country due to the COVID-
19 pandemic, total greenhouse gas (GHG) emission fell by 7.7 percent to 120.0 million ton of CO 2
equivalent (MtCO2e) from last year’s 130.0 MtCO2e (Table 4). The GHG emission of the transport sector,
with its 22.9 percent share of total, dropped to 27.4 MtCO2e, its lowest level since 2015, and constituted
the bulk of the reduction in total GHG emission. Closures and lockdowns of industrial facilities led to
18.1 percent drop in GHG emission from the industry sector to 10.6 MtCO 2e from its year-ago level of
13.0 MtCO2e. On the other hand, GHG emissions from power generation posted a slight increment of
0.9 percent as levels reached 70.0 MtCO2e, equivalent to 58.3 percent share of the total GHG emissions.
This was driven by the increased utilization of coal as fuel input for power generation. Aggregate
emission from other sectors (services, households and others) went up by 0.6 percent as energy
consumption for household activities increased due to lockdowns/remote working.
62
Includes Brunei, Malaysia, Singapore and Australia

ENERGY SITUATIONER
Table 4. GHG EMISSION BY SECTOR (2019 vs. 2020)
CO2 Emission Total NonCO2 Total GHG Emission Percent

Sector
(MtCO2e) Emission (MtCO2e) (MtCO2e) Change
2019 2020 2019 2020 2019 2020 2019-2020
Power
69.10 69.70 0.30 0.31 69.40 70.01 0.89
Generation
Transport 35.35 27.27 0.22 0.17 35.57 27.44 -22.86
Industry 12.89 10.56 0.07 0.06 12.96 10.62 -18.09
Other Sectors* 11.04 11.10 0.06 0.06 11.10 11.17 0.61
Energy** 1.00 0.77 0.00 0.00 1.00 0.77 -23.25
Total 129.37 119.40 0.67 0.61 130.03 120.01 -7.71
Change in
Percent Distribution
Distribution
Power
53.41 58.38 45.62 51.38 53.37 58.34 4.97
Generation
Transport 27.32 22.84 33.26 28.48 27.35 22.86 -4.49
Industry 9.96 8.85 11.01 9.14 9.97 8.85 -1.12
Other Sector* 8.53 9.30 9.71 10.72 8.54 9.31 0.77
Energy** 0.77 0.64 0.40 0.28 0.77 0.64 -0.13
Total 100 100 100 100 100 100
*includes emission from the services, households and agriculture
**includes losses incurred in oil refining
By fuel source, coal consistently accounted for the largest portion of GHG emission with 55.9 percent
share at 67.1 MtCO2e despite a slight reduction of 0.8 percent. This was attributed to the reduction in
coal utilization of the cement manufacturing industry, which offset the increased consumption for power
generation. Emissions from oil also fell by 16.1 percent to 45.2 MtCO 2e due to restrictions on public
transportation modes under varying levels of community quarantines. Shutdown of the PSPC’s
Tabangao refinery contributed to the reduction in GHG emissions from natural gas of 9.3 percent, as
levels dropped to 7.7 MtCO2e (Table 5).
Table 5. GHG EMISSION BY FUEL (2019 vs. 2020)
Total NonCO2 Total GHG Emission Percent

Fuel CO2 Emission (MtCO2e)
Emission (MtCO2e) (MtCO2e) Change
2019 2020 2019 2020 2019 2020 2019-2020
Oil 53.58 44.96 0.31 0.26 53.89 45.21 -16.10
Gas 67.31 66.76 0.35 0.34 67.66 67.10 -0.83
Coal 8.48 7.69 0.01 0.01 8.49 7.70 -9.31
Total 129.37 119.40 0.67 0.61 130.03 120.01 -0.08
Percent
Percent Distribution
Distribution
Oil 41.42 37.65 46.53 42.73 41.44 37.68 -3.77
Gas 52.03 55.91 52.25 56.06 52.03 55.91 3.88
Coal 6.56 6.44 1.22 1.20 6.53 6.41 -0.11
Total 100 100 100 100 100 100
*includes emission from the services, households and agriculture
**includes losses incurred in oil refining

ENERGY SITUATIONER
Strategies to address climate change impact in the energy sector contributed to GHG emission
avoidance as shown in Figure 20 and Table 6, which illustrate the mitigation measures. Fuel
diversification in power generation through intensified use of renewables and natural gas reduced GHG
emission by 3.1 percent or 4.2 MtCO2e from the total hypothetical63 GHG emission. Demand side
measures, such as efficiency in fossil fuels and electricity, biofuels blending and natural gas further
reduced hypothetical GHG emission by 7.5 percent or 10.1 MtCO 2e. These mitigation measures in the
energy sector have avoided a total 14.3 MtCO2e or 10.7 percent of the hypothetical GHG emission
reduction, translating to a decrease of 11.4 percent from 16.7 MtCO2e in 2019.
Figure 20. ACTUAL GHG EMISSION, HYPOTHETICAL GHG EMISSION AND GHG AVOIDANCE, 2000–2020
155
145
Avoided
14.3 MTCO2e in 2020 – 10.7 %
135 16.7 MTCO2e in 2019 – 11.4 %
125
MTCO2e
115
105
95
85
75
65
55
2009
2015
2000
2001
2002
2003
2004
2005
2006
2007
2008
2010
2011
2012
2013
2014
2016
2017
2018
2019
2020
GHG avoidance
Hypothetical GHG emission @ 2000 EI & EF
Actual GHG emission
Note: Hypothetical GHG Emission is equivalent to Actual GHG Emission plus GHG Emission Avoidance; GHG Base
year is CY 2000 GHG Emission Level
Table 6. CO2 AVOIDANCE FROM MIITIGATION MEASURES, Thousand Ton CO2e (ktCO2e)
Reduction Reduction
Percent
GHG Reduction Measures 2019 Impact* 2020 Impact*
Change
% %
Demand side 11,882.62 8.10 10,112.43 7.53 -14.90
Efficiency in Electricity Consumption (EEC) 3,429.89 2.34 2,995.08 2.23 -12.68
Efficiency in Fossil Fuel Consumption (EEF) 6,657.31 4.54 5,634.46 4.19 -15.36
Biofuel 1,795.41 1.22 1,482.90 1.10 -17.41
CNG/NG 0.00 0.00 0.00 0.00 -2.90
Supply Side 4,791.65 3.27 4,209.78 3.13 -12.14
Fuel Diversification in Power Generation @
4,791.65 3.27 4,209.78 3.13 -12.14
2000 GDP & EF**
Total Avoidance (Demand + Supply - EEC) 16,674.27 11.37 14,322.21 10.66 -14.11
Actual GHG Emission 130,033.49 120,009.12 -7.71
Hypothetical GHG Emission (Actual + Total
146,707.76 134,331.33
Avoidance)
*Refers to the percent reduced emission (Total Avoidance / Hypothetical GHG Emission x 100)
** Includes efficiency in Power Generation and EEC
63
Refers to actual GHG emission plus total avoidance, or the level of GHG emission if there were no mitigation measures being adopted.

ENERGY SITUATIONER
E. ENERGY – ECONOMY AND ENVIRONMENTAL INDICATORS64

Like many countries battling the spread of the COVID-19 virus, the Philippines was forced to freeze
economic activities and restricted the movement of individuals, as well as non-essential services to stem
local transmission. With the National Capital Region (NCR) and major economic hubs in Visayas and
Mindanao under quarantine for several months, the country’s gross domestic product (GDP) plunged
by 9.6 percent - its worst contraction since World War II.
All economic sectors posted reductions in their respective gross value added (GVA). The industry
sector, which accounted for 29.2 percent share of GDP, plummeted by 13.2 percent as factories were
either on lockdown or ceased their operations due to revenue losses, while construction projects, both
public and private, were put on hold. The services sector with 60.7 percent share of GDP also registered
a 9.2 percent decline as business establishments, particularly those engaged in wholesale and retail
trade, accommodation and food service activities, real estate, professional and business services were
forced to reduce their operating hours in compliance with the Inter-Agency Task Force (IATF)’s
recommendation that allowed only essential services to operate during community quarantines. The
agriculture sector with 10.2 percent contribution to GDP, while by battered by African Swine Fever
(ASF) and strong typhoons, managed to restrict its contraction to 0.2 percent.
On the demand side, private consumption, which accounted for 73.7 percent share of GDP, slipped by
7.9 percent driven by declining incomes, employment losses and mobility challenges due to limited
capacity of public transportation. Reflecting the global slump in international trade, both exports and
imports of goods and services fell by 16.3 and 21.6 percent, respectively. Gross capital formation
slumped by 34.4 percent as investments in durable equipment and construction contracted.
I. Energy Intensity
Figure 21. ENERGY INTENSITIES (2019 vs. 2020) As economic output fell at a faster rate vis-à-vis
energy demand, economy-wide energy
intensity level reached 3.2 tonnes of oil
equivalent per million pesos of real GDP
(TOE/MPhP) in 2020 or 3.5 percent higher than
its year-ago level of 3.1 TOE/MPhP. Electricity
intensity stood at 5.8 watt-hour per peso
(Wh/PhP), while that of oil remained unchanged
at 0.8 barrels per PhP100,000 (Figure 21). The
economic recession may have slowed down
energy efficiency improvements driven by
abrupt changes in energy consumption patterns
of businesses and households alike, despite the
expected gains from Republic Act 11285 or the
Energy Efficiency and Conservation Act of 2019.
In addition, the pandemic also contributed to
structural changes across end-use economic sectors. The services sector, which included the energy-
intensive transport subsector, recorded a 5.5 percent reduction in its energy intensity to 2.38 TOE/MPhP
due to the slump in transportation modes under community quarantines. On the other hand, households
recorded a 17.5 percent jump in the amount of energy consumed per unit of income 65 as a result of the
work-from-home (WFH) scheme, emergence of household-based online businesses and conduct of
online classes.
64
GDP figures as based on the PSA National Accounts of the Philippines (NAP), as of April 20, 2020 (rebased 2018)
65
Based on Household Final Consumption Expenditure (HFCE)

ENERGY SITUATIONER
Figure 22. ENERGY ELASTICITIES (2019 vs. 2020)

II. Energy Elasticity
The immediate impact of the slump in

economic activity on energy demand is
easily seen in the energy-to-GDP elasticity
measured as the percentage change in
energy demand for every percentage
change in GDP. The GDP elasticity of oil
stood at 1.5 during the year, indicating that
changes in its consumption levels adjusted
at a relatively faster rate compared to the
downturn in economic output. On the other
hand, energy- and electricity-to-GDP
posted inelastic values of 0.7 and 0.4,
respectively (Figure 22).
Figure 23. ENERGY PER CAPITA (2019 vs. 2020)

III. Energy Per Capita
Energy per capita values were likewise

pulled down by the contraction in economic
activity that resulted in depressed energy
demand. The amount of energy per person
dropped to 0.52 TOE or 7.1 percent lower
than its year-ago level of 0.56 TOE.
Electricity per capita also fell by 4.7 percent,
while oil per capita plunged by 14.7 percent
during the same year (Figure 23).
IV. GHG Emission
GHG emission per unit of economic output posted a 2.0 percent increment to 0.68 tons of CO 2e per
PhP100,000 of GDP driven by increased utilization of coal for power generation (Figure 24). This also
translated to a higher GHG emission per megawatt-hour (MWh) of electricity generation of 0.69 tCO 2e
vis-à-vis its year-ago level of 0.65 tCO2e. Meanwhile, the reduction in oil consumption and oil’s share to
TPES resulted in a 2.0 percent and 1.8 percent decline in the level of GHG emission per TOE of TPES
and oil, respectively. Restricted economic activity and mobility of individuals resulted in a 9.1 percent
decline in GHG emission per capita from its year-ago level of 1.2 tCO2e/person.
Figure 24. ENVIRONMENTAL EMISSION INDICATORS (2019 vs. 2020)

CHAPTER II
ENERGY ROADMAPS
ENERGY ROADMAPS
A. CONVENTIONAL ENERGY
Indigenous conventional energy sources generate 18.8 percent of the total primary energy supply
(TPES) of the country in 2020, corresponding to 10.6 million tons of oil equivalent (MTOE). The DOE
recognizes the significant contribution of indigenous conventional energy in providing the energy and
power requirements of the Filipinos, supporting economic growth, and reducing dependence on energy
imports. Hence, the DOE is continuously promoting the exploration, development, and production of
upstream oil, gas, and coal in the country in support of the sector’s goal to reach greater energy
independence by 2040.
While it is the government’s goal to continuously harness the upstream oil, gas and coal energy
resources to spur economic growth, the DOE ensures that the provision on protecting the national
economy and patrimony as espoused in the Philippine Constitution will be strictly observed.
I. OIL AND GAS

The Malampaya gas field has been the country’s major source of natural gas since the start of its
commercial operation in 2001, supplying gas to five (5) power plants in Luzon – Ilijan, Sta. Rita, San
Lorenzo, Avion and San Gabriel. During its peak, it managed to supply at least 40.0 percent of Luzon’s
energy requirements.
The Malampaya project also generates royalties66 that may be used by the government to finance
energy resource exploration and development programs and projects. From January 2002 until June
2021, the collected royalties already reached PhP277.16 billion. With the President’s signing of
Republic Act (RA) 11371 or the “Murang Kuryente” Act on 08 August 2019, the Malampaya fund will be
used to settle the stranded contract costs and stranded debts incurred by the National Power
Corporation (NPC), which will result in reducing electricity rate for the Filipinos.
Part of DOE’s initiatives to attract investments in the upstream oil and gas sector is the continuous
conduct of domestic and international roadshows to promote the exploration and development of oil
and gas resources in the country. The combined resource potential from the 16 67 sedimentary basins
cover a total area of more than 700,000 square kilometers with only about 10.0 percent of the area
being explored and developed (Figure 25).
Philippine Conventional Energy Contracting Program (PCECP). The DOE has drawn up a program
to entice investments in the exploration and development of oil and gas through the Philippine
Conventional Energy Contracting Program or the PCECP. Pursuant to Department Circular (DC) 2017-
12-001768 issued on 27 December 2017, the objective of the PCECP is to further enhance the promotion
and awarding of petroleum service contracts (SCs) in the country.
66
Pursuant to PD 1234 “Institutionalizing a Procedure for the Management of Special and Fiduciary Funds Earmarked or Administered by
the Departments, Bureaus, Offices and Agencies of the National Government, Including Government-Owned or Controlled
Corporations” issued on 08 November 1977
67
(1) Ilocos Shelf; (2) Cagayan; (3) Central Luzon; (4) Bicol Shelf; (5) Southeast Luzon; (6) Mindoro-Cuyo; (7) West Masbate-Iloilo; (8)
Visayan; (9) Agusan-Davao; (10) Cotabato; (11) Sulu Sea; (12) East Palawan; (13) Southwest Palawan; (14) Recto Bank; (15) Northwest
Palawan; and (16) West Luzon Trough
68
Adopting the Philippine Conventional Energy Contracting Program (PCECP) in Awarding of the Petroleum Service Contracts (SCs) and
Creating the Review and Evaluation Committee (REC)

ENERGY ROADMAPS
The PCECP combines the previous

contracting modes of direct
negotiation of interested investors
as mandated by Presidential
Decree (PD) 8769 and the
nomination/publication scheme
under the Philippine Energy
Contracting Round (PECR)70,
which was implemented by the
DOE from 2006 until 2017.
On 22 November 2018, the initial 14 pre-determined areas (PDAs) located onshore and offshore with
combined area of 7.28 million hectares (has.) were launched by the DOE. These PDAs are as follows:
Area 1 in Cagayan Basin; Areas 2, 3, and 4 i n East Palawan Basin; Areas 5, 6, and 7 in Sulu Sea; Areas
8 and 9 in Agusan-Davao Basin; Area 10 in Cotabato Basin; and Areas 11, 12, 13, and 14 in West Luzon.
Figure 25. PETROLEUM BASIN PROSPECTIVITY MAP
69
Amending Presidential Decree No. 8 Issued on 02 October 1972 and Promulgation of an Amended Act to Promote the Discovery and
Production of Indigenous Petroleum and Appropriate Funds Therefor.
70
Pursuant to DC No. DC2003-05-005 “Procedures for Contract Area Definition and Public Contracting Rounds in Petroleum Prospective
Areas” issued on 19 May 2003

ENERGY ROADMAPS
Alternatively, other areas up to the Exclusive Economic Zone (EEZ) as defined by any interested parties,
may likewise be applied for under the nomination-based licensing scheme, subject for approval of the
DOE.
The 180-day application period for the

PDAs beginning from its launch date was
extended until 19 August 2021 due to
increased interest from potential
investors. On the other hand, the nine (9)
areas under the nomination-based
licensing scheme were already
published from 17 June 2019 to 03
September 2020, initiating a 60-day
challenge period for each of the areas,
during which other interested parties
may likewise submit their applications.
As of 31 July 2021, DOE has already

received 15 applications and endorsed
the awarding of four (4) new SCs to the
Office of the President, while four (4)
more are underway. As a result, revenues of PhP11.61 million on data and application fees were
collected from interested companies under the Program.
During the first half of 2021, similar investment opportunities in lieu of PCECP international roadshows
were pursued through cooperation with potential partners such as the Governments of Turkmenistan,
Italy, France, Japan, Canada, and India. The areas identified cover petroleum resource
assessment/mapping, capacity building opportunities and partnership in petroleum exploration or
promotion thereof.
Exploration and Development. The DOE continues to monitor and supervise the operation of 19 71
active SCs (Table 7 and Figure 26). Of the 19, seven (7) SCs are currently in the production stage,
contributing a total of 3.74 MTOE or 6.6 percent share to the country’s total primary energy supply in
2020.
Table 7. PETROLEUM SERVICE CONTRACTS
The country’s total petroleum reserves as of June 2021 is estimated at 68.7 MMB (9.62 MTOE) of oil,
637 BCF (15.93 MTOE) of gas, and 27.9 MMB (3.91 MTOE) of condensate, which are mostly found in
Northwest Palawan and Cagayan Basins. The hydrocarbon resources from all sedimentary basins are
estimated to be around 2,120 MMB (296.8 MTOE) of oil, and 16,578 BCF (414.45 MTOE) of gas (Table
8).
71
As of December 2020

ENERGY ROADMAPS
Table 8. PETROLEUM RESERVES, RESOURCES AND PRODUCTION

Classification Oil (MMB) Gas (BCF) Condensate (MMB)
Reservesa 3.86c 265 10.69
Resources 2,120 16,578 71
Productionb 0.7 141.73 3.49
Demand Years Covered 6d 6e 6f
a
As of June 2021
b
As of December 2020
c
Alegria Oil Field was not included due to intermittent and low production rate which yielded high RP
d
Assuming that there will be no changes in the yearly production rate (2020)
e
Based on the submitted estimated remaining field life
f
Dependent on gas production
Pursuant to the policy of President Rodrigo R. Duterte on the promotion of energy security and the
exercise of sovereign rights, the DOE lifted the moratorium on oil and gas activities in the West Philippine
Sea (WPS) and the resumption of all committed work program in the area. The affected service
contracts include SCs 54 and 58 (Nido Petroleum Phils. Pty. Ltd) in Northwest Palawan, SC 59
(Philippine National Oil Company - Exploration Corporation or PNOC-EC) in Southwest Palawan, SC 72
(Forum Ltd.) in Recto Bank and SC 75 (PXP Energy Corp.) in Northwest Palawan. This action supports
the enforcement of sovereign rights consistent with the country’s gains from the South China Sea
Arbitral Award.
Aside from SC 59, the petroleum exploration arm of the government, the PNOC-EC also operates two
(2) SCs located in Isabela (SC 37) and Calamian Block in Northwest Palawan. Under SC 37, the PNOC-
EC is conducting Passive Seismic Tomographic (PST) Survey in Isabela and Quirino Provinces.
Production. In terms of production, a

total of 700,115.83 barrels (BBLs)
(98.02 thousand tons of oil equivalent
(KTOE)) of crude oil were produced in
2020 from the Galoc field in Northwest
Palawan and Alegria field in onshore
Cebu, which contributed 695,247 and
4,869 BBLs (97.33 and 0.69 KTOE),
respectively. During the first half of
2021, additional 322,479 BBLs (45.15
KTOE) of crude oil were produced.
The Malampaya gas field that supplies

natural gas to five (5) power plants in
Batangas produced 141.73 billion
cubic feet (BCF) (3.54 MTOE) from the
seven (7) producing wells of the field in
2020. The associated condensate lifted
from Malampaya gas field reached a total of 3.49 million barrels (MMB) (488.6 KTOE) in 2020 which
was exported to Thailand and Singapore. For the first half of 2021, production of 68.39 BCF (1.71
MTOE) of natural gas with 1.66 MMB (232.4 KTOE) of associated condensate were recorded.
Based on the petroleum reserves recorded as of the first half of 2021 and the resource output from the
producing fields in 2020 as shown in Table 8, the country’s oil, gas and condensate will be able to supply
for six (6) more years.

ENERGY ROADMAPS
Figure 26. PHILIPPINE PETROLEUM SERVICE CONTRACTS

ENERGY ROADMAPS
Policy Issuances. The DC 2020-04-0010 or the

“Upstream Petroleum Operations Safety, Health, and
Environmental Rules and Regulations (UPOSHERR)”
was signed by Secretary Alfonso G. Cusi on 22 April
2020. It aims to ensure adequate safety and protection
against hazards to health, life, property and
environment from upstream petroleum operations
applicable to all employers, employees, contractors
and other entities engaged in the operations.
Further, the President’s signing of Executive Order

(EO) 8072 in 2019 is another major step towards
positioning the country as an oil and gas investment
destination. Pursuant to the EO, third-party participants
are now allowed to enter into “farm-in/farm-
out73”contracts awarded by the government to the
PNOC-EC. In turn, the PNOC-EC can also participate in
contracts awarded by the government to third parties.
The Rules and Regulations of EO 80 was laid down through DC 2020-02-0006 was issued by the DOE
on 03 February 2020.
Joint Study Agreement between the DOE and PNOC-EC. In September 2020, the DOE signed a
Joint Study Agreement (JSA) with the PNOC-EC to evaluate the sedimentary basins of the country to
determine their prospectivity. As a pilot study, the Cagayan Basin was selected with the main objective
of enhancing its petroleum potential and encouraging investors to venture in the Philippine oil and gas
industry.
The JSA team has established a working geologic stratigraphy for the Cagayan basin and already
completed the well-to-well correlation activities. Currently, the team is focusing on the conduct of
seismic interpretation and basin modelling activities.
PLANS AND PROGRAMS
Upstream Oil and Gas Roadmap
To achieve the goal of energy independence and security by 2040, the DOE has prepared a roadmap
for the upstream oil and gas sector. The roadmap sets the sector’s targets of increasing domestic
reserves and production of oil and gas to contribute to the energy supply requirements of the economy
(Figure 27). The targets are identified to be accomplished within the medium- and long-term as among
the solutions to alleviate the country’s precarious state of energy sustainability.
Increase known reserves. Awarding of new SCs and discovery of new oil and gas fields in the near
future shall be aggressively pursued with the objective of increasing the estimated oil reserves from
48.7 MMB (6.8 MTOE) in 2022 to up to 116 MMB (16.2 MTOE) before end of 2040. In addition, gas
reserves is targeted to reach up to 5.9 trillion cubic feet (TCF) by 2040.
Exploration activities. Between 2023 and 2040, the DOE is looking forward to the drilling of six (6) oil
prospects over the Northwest Palawan Basin and another five (5) gas prospects in the Northwest and
72
Rationalizing the Rules for the Engagement of Third-Party Participants under Petroleum Service Contracts, Repealing for the Purpose
Executive Order No. 556
73
Farm-in/farm out refers to the practice of allowing third party participants in oil and gas exploration and development so the risks involved
in the project can be spread out. The transaction of the entity acquiring interest is considered a “farm-in” while the transfer of the interest
is a “farm-out” deal.

ENERGY ROADMAPS
Figure 27. UPSTREAM OIL AND GAS ROADMAP
Southwest Palawan Basins. These prospects will bring forth

more potential recoverable reserves of up to 67 MMB of oil and
3.5 TCF of gas.
The lifting of the moratorium on energy exploration in the West

Philippine Sea will lead to significant investments in oil and gas
business in the country. The DOE has already recommended the
award of SCs for three (3) PCECP areas (Nominated Area Nos.
6, 7 and 8 in the Recto Bank Basin).
Moreover, the issuance of RA 1105474 or the Bangsamoro

Organic Law on 10 August 2019 may further boost the
exploration, development and utilization of fossil fuels and
uranium resources in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). However,
awarding of SCs for BARMM areas were held in abeyance since modality of processing and awarding
for petroleum investments within the area will have to be worked out by the Intergovernmental Relations
Body, equally representing the National and Bangsamoro Governments.
Additional oil and gas production. The DOE will continue to supervise the SCs and monitor the target
total production of 66 MMB crude oil and 3.5 TCF of natural gas by 2040. Oil production may still be
expected from Northwest Palawan and Visayan Basins. On the other hand, gas production is projected
from Northwest Palawan, Visayan, Southwest Palawan and Mindoro-Cuyo Basins.
Strategies and Measures
Strategies and measures governing the upstream oil and gas sector must be strengthened to encourage
more investments and greater private sector participation from both local and international upstream
companies. Mindful of such, the DOE will consistently review the provisions of Presidential Decree (PD)
87 and other policy issuances to ensure their relevance in supporting all facets of petroleum-related
activities.
As the country continues to push for the expansion of exploration areas, the DOE will strive to forge
partnerships to encourage the conduct of more geophysical and geological studies of the country’s
sedimentary basins. Bilateral and multilateral cooperation with foreign countries is another important
measure to boost the sector’s exploration activities, infrastructure development, supply security and
synergy.
The DOE is likewise aware on the need for more extensive study and evaluation of available geological,
geophysical, and engineering data to improve the prospectivity of underexplored sedimentary basins.
74
An Act Providing for the Organic Law for the Bangsamoro Autonomous Region in Muslim Mindanao, repealing for the Purpose RA 6734,
titled “An Act Providing for an Organic Act for the Autonomous Region in Muslim Mindanao,” As Amended by RA 9054, titled “An Act
to Strengthen and Expand the Organic Act for the Autonomous Region in Muslim Mindanao.”

ENERGY ROADMAPS
To address this, the DOE will coordinate with international service companies and private entities for
the possible conduct of multi-client surveys and upgrade of existing data/information to serve as
reference and guide the international petroleum exploration companies in their investment decisions.
And as a continuing activity, the DOE will strictly supervise and monitor the work program and
performance commitments of all SC holders to guarantee that the targets in the sector’s roadmap are
achieved with the planning period.
INVESTMENT AND EMPLOYMENT OPPORTUNITIES
The PCECP is one of the major opportunities offered to potential investors in the oil and gas industry.
The DOE is optimistic that new petroleum SCs will be awarded that will result in more drilling activities
to augment domestic reserves and production of indigenous oil and gas in the country.
Of the 15 applications received under PCECP, the DOE has endorsed the awarding of four (4) new SCs
to the Office of the President, while four (4) more are under evaluation. The awarding of these eight (8)
SCs will result in potential revenues amounting to PhP64.5 million that may possibly reach up to PhP87.7
million with minimum total investment of PhP8.4 billion once these SCs reach the end of their respective
seven (7) – year exploration period.
An additional potential investment of PhP1.7 billion (exploration) may be generated upon approval of
applications received for Nominated Area 1 and Pre-Determined Areas 6 and 7 located in the BARMM
areas.
In terms of employment opportunities, pursuant to Section 31 of PD 87, priority in employment of

qualified personnel is given to municipality or province where the exploration or production operations
are located. Thus, the awarding of new SCs will provide new jobs not only for technical personnel but
for support services as well. Depending on the scale of operations, a single SC will require at least 300
personnel. As such, more than 2,000 job opportunities will be provided by the new SCs.
Based on the targets identified in the sector’s roadmap, the additional oil production of 66 MMB over
the planning horizon generates total investment of PhP94.4 billion. On the other hand, the investment
requirement on gas production target of 3.5 TCF reaches PhP398.0 billion (Table 9).
Table 9. PROJECTED INVESTMENTS ON OIL AND GAS (2021-2040)

Oil Gas
Additional Investment Additional Investment
Production (MMB) (PhP Million) Production (BCF) (Million PhP)
2020-2022 2.00 2,861 418.27 47,563
2023-2040 64.00 91,544 3,081.73 350,438
Total 66.00 94,405 3,500.00 398,002
Notes:
a. The 2.00 MMB production in the medium-term is net production after deducting 0.70 MMB production in 2020
b. The 418 BFC gas production in the medium-term is net production after deducting 141.7 BCF production in 2020
c. Investment: PhP 1,430/barrel (average) of oil and PhP 0.11/cubic feet (average) of gas
d. Assumed offshore oil and gas production
II. COAL
In the 2020 Global Energy Review by the International Energy Agency75 (IEA), worldwide coal demand
dropped by 8.0 percent during the first quarter of 2020 versus the same period in 2019 driven by lower
demand in the electricity sector, where two-thirds of coal is consumed. Such decrease in demand was
75
https://www.iea.org/reports/global-energy-review-2020/coal

ENERGY ROADMAPS
attributed to the limited economic activity brought by the COVID-19 pandemic that affected the global
economy in 2020.
However, coal is still a prominent energy resource globally as this is one of the most reliable, abundant,
and cheap sources of energy for power generation. Coal is also seen as an important fuel for the quick
re-start of the global economy to bounce back from the effects of the pandemic, specifically by the least
developed and the developing countries.
Based on a 2019 report by Wood Mackenzie76, coal will continue to be the dominant fuel source in
Southeast Asia, peaking in 2027 and accounting for 36 percent of the region’s generation mix by 2040.
While the DOE continues to push for cleaner fuels, the Philippines will still be relying on coal as one of
the primary sources of energy, as it remains a viable energy option with its significant share in the 2020
total power generation of 57.2 percent. Aside from providing a stable supply of electricity or baseload
power, the coal industry likewise provides employment to millions 77 of people and brings infrastructure
development to rural areas.
Pres. Rodrigo Duterte and DOE Sec. Alfonso Cusi graced the Switch-on Celebration of SBPL’s
500-MW Supercritical Coal-Fired Power Plant held on 16 October 2019 in Grand Hyatt Manila
Responding to the environmental

concerns of coal, the DOE has
been exerting efforts to embrace
more efficient clean coal
technologies. With this, the first
supercritical coal plant in the
Philippines owned and operated by
San Buenaventura Power Ltd. Co
(SBPL) in Mauban, Quezon is a big
step towards reducing the
environmental impacts from coal
power plants. The SBPL is a 500-
MW state-of-the art power plant,
which started its commercial
operation in September 2019 and
has been generating baseload Photo: GNPower
power capacity in Luzon.
Another supercritical coal-fired power plant is the 2 x 668-MW project in Mariveles, Bataan by GNPower
Dinginin Ltd. Co. The project started the construction of its first unit in September 2016 and is expected
to operate before the end of 2021.
76
https://www.woodmac.com/press-releases/coal-is-still-king-in-southeast-asias-power-market/
77
Coal Production in the Philippines: Development, Issues and Challenges by Margarita R. Silva

ENERGY ROADMAPS
Exploration and Development. The DOE has been administering 32 Coal Operating Contracts (COCs)
in the country with respect to their corresponding work commitments. Of these COCs, 22 are in
development and production stage, and 10 are in exploration phase (Table 10).
Table 10. LIST OF COAL OPERATING CONTRACTS (as of 31 December 2020)

Area
Name of Company COC No. Location
(Has)
DEVELOPMENT / PRODUCTION COCs
1 Semirara Mining and Power Corp. 5 Antique 13,000
2 Adlaon Energy Development Corp. 9 Cebu 2,770
3 PNOC-Exploration Corporation 41 Zamboanga Sibugay 6,000
4 Filipinas (Prefab) Systems, Inc. 68 Oriental Mindoro 8,000
5 Filipinas (Prefab) Systems, Inc. 78 Zamboanga Sibugay 4,000
6 A Blackstone Energy Corp. 93 Zamboanga Sibugay 1,000
7 D. M. Wenceslao and Associates, Inc. 116 Cagayan Valley 3,000
8 PNOC-Exploration Corporation 122 Isabela 9,000
9 D. M. Wenceslao and Associates, Inc. 123 Cagayan Valley 1,000
10 Lima Coal Development Corporation 125 Albay 400
11 Daguma Agro Minerals Inc. 126 South Cotabato & Sultan Kudarat 2,000
Smart Mining and Resources
12 127 Surigao del Sur 2,000
Development Corp.
13 Samaju Corporation 128 Albay 1,400
14 Samaju Corporation 129 Albay 542
15 Sultan Energy Phil. Corp. 134 Sultan Kudarat & South Cotabato 7,000
16 Bonanza Energy Resources, Inc. 138 South Cotabato 8,000
17 Great Wall Mining and Power Corp. 145 Surigao del Sur 5,000
Abacus Coal Exploration &
18 148 Surigao del Sur 7,000
Development Corp.
19 Guidance Management Corp. 151 Negros Occidental 3,000
20 Lima Coal Development Corp. 153 Sorsogon 3,000
21 Titan Mining and Energy Corp. 159 Davao Oriental 7,000
22 BBB Mining and Energy Corp. 173 Cebu 4,000
EXPLORATION COCs
23 3Kings Sunrise Mining Corp.* 165 Cebu 3,000
24 Titan Mining and Energy Corp.* 166 Zamboanga Sibugay 4,000
25 Blackgem Resources & Energy Inc.* 169 Davao Oriental 6,000
26 Dell Equipment & Construction Corp.* 170 Saranggani & South Cotabato 10,000
27 Core 8 Mining Corp.* 172 Cebu 2,000
28 Yolo Mining Resources, Inc.* 176 Agusan del Sur and Davao Oriental 4,000
31 MEGA Philippines Inc. 188 South Cotabato and Sultan Kudarat 3,000
32 Semirara Mining and Power Corp. 189 Oriental Mindoro 7,000
*With application for conversion to development/production contracts
Also administered and monitored were the activities of 50 Small-Scale Coal Mining Permits (SSCMPs),
59 Coal Traders and 302 Coal End-Users located in different provinces of the country.
In terms of production, the total coal produced in 2020 was recorded at 13.3 million metric tons (MMMT)
(7.02 MTOE), majority of which came from Semirara Mining and Power Corporation (SMPC), the largest
coal mining in the country contributing 99.4 percent.

ENERGY ROADMAPS
On the other hand, importation of coal in 2020 was recorded at 29.52 MMMT (15.58 MTOE), a slight
increase from the 27.69 MMMT (14.61 MTOE) in 2019, while exportation decreased by 26 percent with
7.55 MMMT (3.98 MTOE) in 2020 from the 10.24 MMMT (5.40 MTOE) in 2019.
Meanwhile, the total coal consumption in 2020 Table 11. 2020 COAL CONSUMPTION (in MMMT)
registered 32.85 MMMT (17.34 MTOE) including
Industry Consumption
fuel input for coal-fired power plants of 29.76
Power Plants 29.76
MMMT (15.70 MTOE). Cement plants and other
industries (i.e., food, metals and non-metallic, Cement Plants 1.31
among others) accounted 3.09 MMMT (1.63 Other Industries 1.78
MTOE) (Table 11). Total 32.85
*Includes local and imported; based on submitted
The DOE continuously monitors the rehabilitation reports
of the South Panian Mine of SMPC, which was
closed down in 2016 following the depletion of its
mineable coal reserves. The backfilling and subsequent reforestation of Panian pit will serve as a model
for open pit mine rehabilitation in the country. The SMPC is the only vertically-integrated power
producer in the country that mines its own fuel source to generate affordable baseload power.
Rehabilitated southern portion of the SMPC’s Panian pit in Semirara Island which was shut down in
September 2016 (Source: semiraramining.com)
PCECP for Coal. The PCECP for coal is guided by the DC 2017-09-001078 issued on 13 September
2017 whereby interested companies can nominate areas for exploration of the country’s coal resources
at any given time.
Despite the current global health emergency brought by the COVID-19 pandemic, the DOE still showed
its commitment to explore and develop the country’s indigenous coal resources.
Under PCECP, four (4) companies showed interest in six (6) coal areas, as follows:
1) Superior Shipyards Corporation – Tagkawayan, Quezon and Del Gallego, Camarines Sur;
2) EFH Energy Tribe Corporation – Bislig City, Surigao del Sur;
3) EFH Energy Tribe Corporation – Asturias, Carmen and Compostela and Danao Cities, Cebu;
4) Troika Giant Power Corporation – Sibay Island, Antique;
5) Troika Giant Power Corporation – Minglanilla, Naga, Pinamungahan and Toledo Cities, Cebu;
and,
6) Sunwest Oil and Gas, Inc. – Rapu-Rapu, Albay.
78
Adopting the Philippine Conventional Energy Contracting Program (PCECP) of Awarding Coal Operating Contracts (COC) and Creating
the Review and Evaluation Committee (REC) Repealing for This Purpose Department Circular No. DC2014-02-0005 and Department
Order No. DO2014-08-001

ENERGY ROADMAPS
The PNOC-EC nominated and applied for two (2) coal blocks in Malangas, Zamboanga Sibugay, which
the application passed the completeness check of the legal, technical, and financial documentation
requirements during the opening of the application on 30 October 2020. This project is expected to
yield total potential investments of PhP57.1 million for exploration activities only.
Policy Issuance. Cognizance of the health and safety of all entities engaged in coal operations, the DOE
drafted a proposed DC on the Guidelines on Coal Handling, Transport, Storage, and Distribution for
approval and issuance in 2021. The draft policy guidelines will ensure that best practices in health,
safety and environmental management are implemented to mitigate its impacts, thereby effectively and
efficiently protecting the environment for the future generation.
PLANS AND PROGRAMS
Upstream Coal Roadmap
As highlighted in the upstream coal roadmap (Figure 28), the coal sector targets the increase of
delineated mineable coal reserves up to 766 MMMT by the end of 2040 with additional reserves of 65
MMMT in the medium-term and 223 MMMT in the long-term. These additional reserves will come from
existing and future COCs and SSCMPs, which will likewise be delineated to provide the country with
coal supply.
The delineated reserves will result in total cumulative coal production reaching 282 MMMT in 2040 on
the assumption that existing COCs continuously operate and the committed and indicative coal projects
push through as scheduled.
Figure 28. UPSTREAM COAL ROADMAP
For the industry sector, the demand outlook of coal in the medium-term reaches 2.5 MMMT (4,706
KTOE) with a growth rate of 13.5 percent a year. In the long-term, demand further increases to 47.6
MMMT (90,131 KTOE), growing at 10.1 percent annually until 2040 (Table 12).
Table 12. COAL DEMAND OUTLOOK

Actual Medium-Term Long-Term
(2019-2020) (2020-2022) (2023-2040)
MMMT 1.96 2.48 47.59
Growth Rate, % -32.6 13.5 10.1

ENERGY ROADMAPS
Strategies and Measures
As a policy-making agency, the DOE continues to assist the coal industry through the formulation and
stringent implementation of relevant policies and programs on the production and consumption of coal
that also support the stakeholders and contract holders, while ensuring the protection of the
environment in compliance with the Philippine Clean Air Act.
Participation in international undertakings, such as the ASEAN Forum on Coal (AFOC), shall be a
continuing commitment of the DOE. This serves as the platform to advance domestic initiatives through
coordination and cooperation with other ASEAN Member States on the promotion of clean coal
technology, enhancement of low-quality coal, dissemination and utilization of best practices in the coal
sector, promotion of social acceptability of coal, encourage of private sector participation in community
development and investment, and determining the applicability of other potential technologies like
carbon capture utilization and storage (CCUS). The CCUS offers a tool to reduce environmental impacts
by removing carbon dioxide (CO2) emissions from utilization of coal in power generation and industrial
process like cement manufacturing, thus creating a more sustainable future. This emissions reduction
technology that can be applied across the energy system, which is now considered by other countries
as part of their clean energy transition plan.
The country has vast coal resource potential standing at 2.4 billion metric tons (BMT) (1,266.7 MTOE)
from the 17 coal regions spread all over the country with the largest coal reserve in Semirara Island,
Caluya, Antique. (Table 13).
Table 13. COAL RESERVES, in MMMT (as of 31 December 2020)
Resource Positive Probable In-situ Mineable

Coal Region
Potential Reserves Reserves Reserves Reserves
Quezon 2 0.09 - 0.09 0.06
Mindoro 100 1.31 0.20 1.44 0.87
Cagayan Valley 336 80.10 3.70 82.57 70.18
Batan-Polilio-Catanduanes 17 5.42 2.43 7.04 4.22
Semirara 550 116.32 29.84 - 171.57
Negros 4.5 1.56 1.21 2.36 1.42
Masbate 2.5 0.07 - 0.07 0.04
Samar 27 7.47 1.67 8.59 7.28
Cebu 165 10.89 8.56 16.59 9.96
Bukidnon 50 - - - -
Zamboanga 45 34.18 6.55 38.54 23.13
Maguindanao 108 - - - -
Sultan Kudarat 300.3 - - - -
South Cotabato 230.4 35.32 69.49 81.65 69.40
Surigao 209 29.90 63.45 72.20 49.15
Davao 100 1.79 2.38 3.38 2.03
Saranggani 120 - - - -
Total 2,366.7 324.42 189.48 314.52 409.31

ENERGY ROADMAPS
Figure 29. COAL RESOURCES IN THE PHILIPPINES
As highlighted in the coal roadmap (Figure 29), the additional reserves from existing and new
exploration COCs necessitate an estimated total investment of PhP12.9 billion for exploration activities.
Moreover, for COCs under development and production, the additional production of 282 MMMT
requires a total investment of PhP643.2 billion over the planning period (Table 14).
Table 14. PROJECTED INVESTMENTS ON COAL (2021-2040)

Exploration Development and Production
Additional Additional
Investments Investments
Reserves Production
(PhP Million) (PhP Million)
(MMMT) (MMMT)
2020-2022 65.00 2,901 52.00 118,606
2023-2040 223.00 9,953 230.00 524,601
Total 288.00 12,854 282.00 643,207
Exploration: PhP44.63/ton (average) of reserves; Development and Production: PhP2,281/Metric Ton (average) of production

ENERGY ROADMAPS
B. DOWNSTREAM INDUSTRY
I. NATURAL GAS INDUSTRY

Following the commercial operation of the
Malampaya Gas to Power Project, the
downstream natural gas industry remains to be
an emerging and nascent industry in the
Philippines with only a single supply source of
domestic natural gas (Malampaya gas field).
Currently, the Malampaya supplies gas to five (5)
existing power plants, which also serve as the MALAMPAYA
anchor markets with combined installed capacity
of 3,453 MW. In 2020, these natural gas-fired
power plants provided nearly 20.0 percent of the
Powering nearly 20% of the
country’s total power requirements and 27.0
percent of the Luzon grid. Country’s Electricity Requirements
With Malampaya concession expiring by 2024

and the anticipated reduction in production level
by 2022, sustainable supply of natural gas is a priority
program of the DOE to ensure that the natural gas-fired power plants continue to generate electricity
for the country. In 2022, the Gas Sales Purchase Agreement (GSPA) of the Ilijan power plant also ends,
and two (2) years thereafter the GSPAs of other natural gas-fired power plants.
The 16 sedimentary basins provide the potential for the domestic production of natural gas in the
Philippines. However, the exploration and development of these fields will take years before the natural
gas can be commercially available.
Without the indigenous replacement for natural gas supply from Malampaya, the DOE focused on the
importation of liquefied natural gas (LNG) through the development and operation of LNG receiving
facilities. This strategy not only introduces a new industry, but also stabilizes the country’s natural gas
supply that ensures the continued operation of the existing power plants being supplied by the
Malampaya. To date, the DOE has already approved the applications of seven (7) LNG import terminal
projects.
The DOE likewise continuously lays out the foundation towards a thriving industry and expanding use
of natural gas for non-power applications by the other sectors of the economy. With the industry
roadmap serving as the guidepost, the downstream natural gas sector is on track to attain its medium-
and long-term targets.
Moreover, the realization of the government’s goal of low carbon future hinges on the development of
cleaner energy sources that will lessen the country’s reliance on coal power plants for power generation.
By 2040, the DOE is targeting to significantly increase the shares of cleaner energy sources in the
energy mix from the development of more renewable energy sources which are supported by the more
flexible plants fueled by natural gas.
Production and Consumption. In 2020, the country’s natural gas production was recorded at 141,732
million standard cubic feet (MMSCF) with total consumption of 133,606 MMSCF or 94.2 percent
utilization. The power sector is the primary user of natural gas accounting for 98.8 percent of the total
natural gas consumption, while the remaining (1.2 percent) was used by the Pilipinas Shell for its
refinery. However, Shell refinery ceased operation since May 2020 and will be converted to an import
terminal facility for petroleum products.

ENERGY ROADMAPS
Natural gas can still be produced until 2027 despite the Malampaya concession expiration in 2024, but
the volume may not be enough for the supply requirements of the existing natural gas-fired power
plants. Moreover, the country cannot access the global LNG market due to the lack of LNG import
terminals and regasification facilities.
Hence, the DOE has been promoting and encouraging private sector investments, both local and
international, to stimulate development of the natural gas industry by implementing enabling regulatory
framework and support mechanisms.
Implementation of the Rules and Regulations Governing the Philippine Downstream Natural Gas
Industry. Without an enabling law to guide the downstream natural gas industry, the DOE issued
Department Circular (DC) 2017-11-0012 or the “Philippine Downstream Natural Gas Regulation
(PDNGR)” providing the regulatory framework governing the industry covering the guidelines for
potential investors, creation of a liberalized market, and entry of investment through Third-Party Access.
Implementation of the Natural Gas Quality Standard. The Philippine National Standard (PNS)/DOE
QS 011:2016 “Petroleum gases – Natural gas – Quality specification,” which provides the quality
specification for natural gas, was promulgated in June 2016 by the Bureau of Philippine Standards of
the Department of Trade and Industry (DTI-BPS). On 01 February 2019, in support of the
implementation of the natural gas quality standard, the DOE issued DC 2019-02-0004 implementing the
“Natural Gas Quality Standard for all-Natural Gas Supply in the Philippines.” The said Circular requires
all entities engaged in the business of importing, trading, supply and distribution of natural gas to end-
users to comply with the PNS/DOE QS 011:2016.
Memorandum of Agreement (MOA) with the DTI-BPS for the Development of Standards on
Products, Facilities, and Code of Practice of the Downstream Natural Gas Industry. To ensure safe
operation of all existing and new natural gas facilities in the country, a MOA between the DOE and the
DTI-BPS was signed on 22 April 2021, which establishes a closer coordination and promulgation of PNS
on natural gas products, facilities, and code of practice of the downstream natural gas industry.
As the duly recognized National Standards Body in the country, the DTI-BPS is mandated to develop,
implement and coordinate standardization activities in the country, while the DOE is considered as the
Standards Development Organization (SDO) for quality of petroleum products, facilities, energy
conservation, and efficiency standardization works as stipulated under the DTI Department
Administrative Order (DAO) No. 19.08 series of 2019 or the National Recognition for Standards
Development Organizations (SDOs).
Under the MOA, a Technical Committee (TC) composed of 15 representatives from relevant
government agencies, academe, standards developing organizations, industry players and
manufacturers/suppliers will be created for the development of natural gas industry standards including
the adoption of existing internationally accepted standards.
Joint Administrative Order (JAO) for Strengthening the Philippine Inter-Agency Health, Safety,
Security, Environment Inspection and Monitoring Team (PIA-HSSE-IMT). A Joint Administrative
Order (JAO) has been drafted to strengthen the PIA-HSSE-IMT, which is tasked to conduct an organized
and holistic approach of inspection to natural gas facilities to address the areas of the HSSE. The PIA-
HSSE-IMT was created through the 2015 Memorandum of Understanding (MOU) initiated by the DOE
with the Department of Labor and Employment (DOLE), Department of Environment and Natural
Resources (DENR), Department of Interior and Local Government (DILG), Department of Transportation
(DOTr) and Department of Health (DOH). Under the said MOU, joint inspections of natural gas facilities
and capacity building programs have been conducted and implemented.
The draft JAO intends to clearly define the respective roles and responsibilities of each member agency
to have a well-coordinated inspection and site validation of the proposed natural gas projects prior to
the issuance of the Permit to Operate and Maintain (POM), as well as in formulation of standards for
natural gas facilities and the code of practice. The JAO is expected to be approved and issued within
2021.

ENERGY ROADMAPS
Communication Initiative of the Natural Gas Industry. As the government continues to mitigate the
spread of the COVID-19 pandemic, the continued conduct of activities on Information, Education and
Communication (IEC) campaigns and consultative meetings were shifted to various virtual platforms.
The DOE conducted six (6) virtual IECs focused mainly on updates and developments in the
downstream natural gas sector. The main objective of these activities is to create awareness about
natural gas to the HSSE-IMT members, national and local government agencies, industries and other
relevant organizations considering that information on the downstream natural gas industry is still not
prevalent in the country.
Legislative Agenda and Policy Advocacy Campaign. To further support the implementation of the
PDNGR, the Energy Committees in both Houses of Congress are deliberating on pending bills for the
development of the country’s midstream and downstream natural gas industry. The Senate Bill (SB)
1819 or the “Midstream Natural Gas Industry Development Act” has been filed in preparation for the
impending depletion of the supply from the Malampaya Gas Field. Specifically, this covers
transportation, transmission, storage, and marketing of natural gas, in its original or liquefied form. The
proposed measure involves three (3) main characteristics: (1) allows private sector participation across
the entire value chain; (2) provides flexibility for the government to adapt to evolving market conditions;
and (3) ensures protection of consumers' interest through transparency and competition. Additionally,
the Senate Committee on Energy has already consolidated and approved the draft Substitute Bill for
the said bill.
Correspondingly, the House Committee on Energy also approved the draft Substitute Bill for the House
Bill (HB) 3031 or the “Downstream Natural Gas Industry Development Act.” The approved Substitute
Bill, if passed, will provide the regulatory framework for the shipment and distribution of natural gas. It
also aims to develop the country’s emerging downstream natural gas industry to a mature industry
status and competitive natural gas market.
The DOE actively participates in the public hearing and technical working group discussions and
contributed to the formulation and adoption of the Bills filed at both Houses of Congress.
Implementation of Gas Policy Development Project 2 (GPDP 2). The implementation of GPDP 2
came into force through the ceremonial signing of the MOA between the DOE and the University of the
Philippines – Statistical Center Research Foundation Inc. (UPSCRFI) on 29 April 2021. Similar to the
GPDP 1, the UPSCRFI was the partner organization that implemented the project. The GPDP 2 intends
to continue the technical assistance to the DOE in the implementation of the PDNGR and promote LNG
market development through capacity building, technical support, and inputs related to proposed
legislations.
Previously, the DOE received a technical assistance through the GPDP1 from October 2018 – March
2020. The UPSCRFI implemented the GPDP1 under a cooperative agreement with the U.S. Department
of State under the latter’s Enhancing Development and Growth through Energy in Asia (Asia EDGE)
initiatives. During the implementation of the Project, it was able to lay the foundation for the LNG sector
by facilitating the capacity development of the regulators (i.e., DOE and members of the PIA-HSSE-IMT
from various government agencies) and preparing the mechanisms for the implementation of the
PNDGR, as well as produced the LNG-related materials, which aimed to help both public and private
sectors navigate the PDNGR and the natural gas industry, namely: i) Philippine Downstream Natural
Gas Investor’s Guide; ii) GPDP’s Financial and Technical Recommendations for Review of Applications;
and iii) Market Profiling with Emphasis on the Use of LNG to Power Economic Zone.
▪ LNG Investors’ Guide
The Philippine Downstream Natural Gas Industry: LNG Investors’ Guide provides an overview of the
country’s natural gas industry and other relevant information to guide prospective investors in
identifying and securing necessary permits and clearances from the different government agencies.
It also contains the global and national LNG outlook, country’s current regulations, incentives, and
policies towards natural gas.

ENERGY ROADMAPS
Showing its commitment to the development of the country as an LNG hub, the DOE has promoted
the LNG Investor’s Guide during a webinar held on 04
September 2020 titled “Philippines: Tapping into World’s
LNG Market” conducted by the United States Agency for
International Development (USAID) and supported by the
US-Asia Gas Partnership (AGP) and the United States
Energy Association (USEA).
▪ Evaluators’ Guide
The GPDP’s Financial and Technical Recommendations

for Review of Applications contains legal and technical
parameters for the review of applications and
corresponding assessment forms that serves as a guide
in assessing the technical and financial qualifications of
LNG applications.
▪ Research Study on the Probability of LNG Use
The research study on the Market Profiling with Emphasis

on the Use of LNG to Power Economic Zones intends to
gauge the extent of potential demand for LNG among the
locators in the Manufacturing and Agro-industrial Special
Economic Zones (SEZs) in Laguna, Batangas, Cavite,
Cebu, Pampanga, Benguet, Bulacan, and Metro Manila.
The study assessed the competitiveness of LNG (or
natural gas) and willingness/openness of the locators in
SEZs to switch using natural gas as fuel for their industrial
or production process.
Based on the results of the study, the primary

considerations for locators to switch to natural gas include
compatibility, safety and security, price, stability and
reliability, environmental concerns, and retrofitting costs
of equipment. The study suggests that locators in SEZs
are more likely to switch, specifically energy intensive
manufacturing using more expensive fuel sources for
boiler or other heating equipment in their respective
production process.
The GPDP 1 laid the foundation by setting up the mechanism

to develop the LNG industry in the country. On the other
hand, GPDP 2 aims to operationalize this mechanism and
promote market development for LNG investments to be
realized, and set up a more streamlined process of securing
permits and application process by working with partners
agencies and bureaus apart from the DOE through the PIA-
HSSE-IMT.
Memorandum of Understanding between the Philippine

National Oil Company (PNOC) and New Fortress Energy
(NFE). The state-owned PNOC signed an MOU with the New
NFE, a National Association of Securities Dealers Automated
Quotations (NASDAQ) listed United States-based global
energy infrastructure firm on 14 October 2020 to accelerate
the development of LNG infrastructure in the country. Under
this MOU, both the PNOC and NFE will identify potential

ENERGY ROADMAPS
opportunities and prospective locations for the development of LNG facilities. It also intends to bridge
the gaps in the downstream natural gas industry’s value chain to realize a robust LNG industry capable
of generating jobs and revenue, and ultimately the attainment of long-term energy security and stability.
PLANS AND PROGRAMS
To provide the foundation and support for the emerging natural gas industry, the DOE has framed the
roadmap containing the programs and activities to be undertaken and realized over the planning period.
Among the critical deliverables in the medium-term include the formulation and implementation of the
industry operating standards and codes of practice, and the issuances of important regulatory
frameworks to encourage private investment in developing natural gas infrastructure to receive, store,
and transport natural gas from source to demand centers.
On the other hand, to ensure the safety operations of the natural gas facilities, a Technical Committee
will develop and promulgate the standards, as well as technical regulations for natural gas products and
facilities taking into consideration the adoption of relevant internationally accepted standards. The PNS
and technical regulations must always be responsive to the requirement of the downstream natural gas
industry. In the long-term, the DOE shall continue to formulate, adopt, promulgate, and amend natural
gas policies and standards whenever necessary.
1. Standards Development
The promulgation of standards for the natural gas industry establishes safety culture and best practices
in the operations of gas facilities, as well as the quality of natural gas. The DOE as the recognized SDO
(under DAO No. 19-08 s. 2019) will spearhead together with DTI-BPS the development of standards
through the creation of a Technical Committee as part of the MOA signed by both agencies. Likewise,
the DOE will formulate an annual work program on standardization to align with the national level efforts
on this matter.
Figure 30. DOWNSTREAM NATURAL GAS ROADMAP

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In the medium-term, the key standard development activities in adherence to the PNS are focused on
the following: a) LNG Facility/Safety Rules/Codes; b) HSSE Standard; c) Inspection Manual; d)
Transmission Pipeline/Code of Practice; e) Distribution Pipeline/Code of Practice; and f) Natural gas
related ancillary facilities. For LNG facility standards, this can be done one component at a time or the
whole LNG terminal depending on the internationally acceptable standards that will be adopted. This
will be followed with the code of practice for safety operation of the overall LNG facility. Adopting the
PNS for natural gas products and facilities not only emphasizes safety but also attracts potential
investors in the industry.
The long-term action plan includes the continuous update and amendment of existing standards under
PNS/DOE QS 011:2016. This is to assure the effectiveness and readiness to adapt to the requirement
of the industry in terms of the safety standards of the natural gas facilities. The PIA-HSSE-IMT will
constantly monitor and assess the standards covering LNG Facility/Safety Rules/Codes, Inspection
Manual, Transmission/Distribution Pipeline, Natural Gas-Related Ancillary Facilities, Gas Quality, and
Transportation and Storage.
2. Program Management, Monitoring and Implementation
The DOE shall continue to implement the policy on PDNGR over the planning period if no legislation is
passed to govern the industry. Apart from the regulatory framework and guidelines, the PDNGR also
seeks to develop the industry value chain into a more matured market that would contribute to the
country’s energy security.
Enhancing PDNGR implementation entails cooperation agreements (i.e., GPDP), as well as the conduct
of public consultations for policy amendments. As the lead agency in the natural gas industry
development, the DOE will continue to monitor and oversee the implementation of the plans and
programs of the industry, conduct evaluation and technical review of proposed natural gas projects
prior to issuance of permits, and conduct of facility inspection / validation with the PIA-HSSEE-IMT to
ensure compliance to PNS and HSSE program by the facility operator.
Implementation of GPDP 2
The GPDP 2 is a two-year project undertaking that will operationalize a more streamlined permitting and
application process for proposed LNG projects. This will necessitate enhanced cooperation with partner
agencies under the PIA-HSSE-IMT, promotion of market development and realization of investments on
LNG facilities, and implementation of necessary activities vital for the development of the natural gas
sector.
DOE Secretary Alfonso G. Cusi and Dr. Gervacio Selda, Jr., President of U.P. Statistical Center Research Foundation, Inc.
during the virtual signing of the MOA on the implementation of GPDP 2

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The renewal of GPDP (Phase 2) implies the continuation of technical assistance to the DOE and partner
agencies in PDNGR’s implementation. Project activities will be focused on capacity and expertise
building for regulators, development and amendment of industry standards, policies, and industry
roadmap to facilitate growth of the industry.
3. Communication Initiatives
A continuing dissemination of information on the role of natural gas in the energy system including the
promotion on infrastructure development will be undertaken within the planning period. The objective
is to increase awareness of the stakeholders, propel market, and infrastructure development and
investment, which are major elements to build a robust downstream natural gas industry in the country.
The conduct of pre-application conferences and IEC campaigns, as well as operational meetings with
the project proponents will provide a clearer understanding on the market and infrastructure
development program for the industry. Initiatives to attract investments will be pursued with the conduct
of market study and profiling, updating of industry information materials, and assessment of potential
sites for natural gas projects.
4. Legislative Agenda and Policy Advocacy Campaign
Establishing sound policy and legislative frameworks for the natural gas industry contributes to ensuring
supply security, access, and safety. Such also serve as cross-cutting support to all related strategies
and programs identified in the sector’s roadmap. Among the policies being look at in the medium- to
long-term period include the rules to implement the PNS, amendments to JAO, development of HSSE
codes and practices, and Third-Party Access Rules / Code, among others. On the other hand, the
passage of pending legislative bills in both Houses of Congress provide the regulatory framework for
the development of the industry with competitive natural gas market.
The creation of a Special Technical Working Group (TWG) is also identified in the medium- term for the
evaluation of application for permits by prospective project proponents or investors. This is deemed
necessary as the energy sector prepares and considers other gas-related options to augment gas
supply in anticipation of the Malampaya’s depletion.
Taking off from the energy sector’s strategic direction, the natural gas sector is also keen on establishing
bilateral partnerships or cooperation agreements. This will be undertaken with the academe and other
relevant organizations both local and international and guided with the intent to enhance regulatory,
technical, and commercial capabilities including adoption of best practices.
In the long-term, the Philippine Energy Institute is seen to be established. This indicates the need to
further capacitate and develop the skills of personnel working and operating within a matured
downstream natural gas industry.
The DOE considers the private sector as a partner in putting up the required natural gas infrastructure
such as LNG import receiving terminals in the country. As the development of these critical
infrastructures entails huge capital investment, the government has been firm to provide a conducive
business environment to attract greater private sector involvement in the development of the natural
gas industry. Relevant policies shall be continuously issued and improved for a transparent regulatory
framework to guide potential investors in the industry.
Streamlining of regulatory procedures has also been instituted through the issuance and promulgation
of Executive Order (EO) 30 “Creating the Energy Investment Coordinating Council (EICC)”, Republic
Act (RA) 11234 or the Energy Virtual One-Stop Shop (EVOSS), and RA 11032 or the “Ease of Doing
Business and Efficient Government Service Delivery Act.” These policies are intended to shorten and

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harmonize processes of concerned agencies in securing of permits, clearances and certifications,

among others, affecting energy projects.
Table 15. POTENTIAL INVESTMENT IN THE DEVELOPMENT OF LNG TERMINAL

Total
Target Capacity Construction
Project Location
Proponent Operation (MTPA) Cost
(Million PhP)
Floating Storage & Barangays Sta. Clara,
FGEN LNG
Regasification Unit Q3 2022 Sta. Rita Aplaya, and 5.26 13,284.00
Corporation
(FSRU) Terminal Bolbok in Batangas City
Floating Storage 6,387.00
Excelerate About 9.5 km offshore in
Regasification Unit Q3 2022 4.40
Energy L.P. Bay of Batangas
(FSRU) Terminal
Energy World LNG Storage and Barangay Ibabang Polo,
Gas Operations Regasification Q4 2022 Pagbilao Grande Island, 3.00 7,408.00
Philippines Inc Terminal Quezon Province
LNG Storage and
Batangas Clean Barangay Pinamucan- 37,553.00
Regasification Q4 2025 3.00
Energy, Inc79 Ibaba, Batangas City
Terminal
Atlantic Gulf &
Floating Storage Unit
Pacific
(FSU) and Onshore Barangay Ilijan and Dela
Company of Q2 2022 3.00 15,327.00
Regasification Paz, Batangas City
Manila, Inc.
Terminal
(AG&P)
Shell Energy Floating Storage and
Philippines Inc. Regasification Unit Q3 2022 Tabangao, Batangas City 3.00 2,524.00
(SEP) (FSRU) Terminal
Floating Storage and
Vires energy Barangay Simlong,
Regasification Unit Q1 2023 3.00 6,284.00
Corporation Batangas City
(FSRU)
Total 24.66 88,767.00
With the anticipated reduction in the supply from the Malampaya gas field and absence of replacement
indigenous gas, the priority is the development of an LNG Import Terminal to sustain the operations of
the existing natural gas power plants. As shown in Table 15, the DOE has already approved the
application of seven (7) LNG terminal projects. The proposed projects are targeted to commence
operation between 2022-2025.
Among the LNG Import Terminal projects, two (2) are expected to be completed and operational by
2022 – the FGEN LNG Corporation with Permit to Construct and Atlantic Gulf & Pacific Company of
Manila, Inc. (AG&P) with Notice to Proceed (NTP). Both projects shall provide the supply requirements
of the existing natural gas-fired power plants.
The Energy World Corporation (EWC) has also been granted with Permit to Construct, while two (2)
projects have an active NTP and one (1) project recently had an expired NTP, which the proponent can
apply for renewal or for Permit to Construct. The remaining project has a pending application for Permit
to Construct after the expiration of its NTP.
79
NTP expired on 19 June 2021

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Interim Floating Storage and Regasification Unit (FSRU) Terminal Project of FGEN LNG Corporation and Tokyo Gas
The NTP grants the proponent the greenlight to secure pre-construction permits and clearances from
the different national and local government agencies including financial closing for their projects. In the
Permit to Construct stage, the proponent is given the authority to proceed with the construction activities
and to secure the necessary permits and clearances from national and local government agencies prior
to the issuance of Permit to Operate and Maintain of the LNG terminal facility.
Floating Storage Unit (FSU) and Onshore Regasification Terminal Project of Atlantic Gulf & Pacific Company of Manila, Inc.
(AG&P) and Osaka Gas
These LNG terminal projects have total estimated investment of PhP88.8 billion (USD 1.8 billion80).
Based on the Energy Demand and Supply Outlook, under the Reference Scenario (REF), the country’s
LNG terminal capacity requirement is projected to reach 24.6 million tons per annum (MTPA)81 by 2040,
80
Forex Rate of USD=PhP50.0
81
Based on 80.0 percent capacity utilization rate.

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higher than the 15.6 MTPA under the Clean Energy Scenario (CES) for the same year. As such, the
24.7 MTPA total potential capacity of these projects could provide the natural gas requirements in both
scenarios.
Six (6) of the LNG terminal projects are in the Batangas area, which is pivotal given its proximity to the
existing anchor markets of the Malampaya. On the other hand, the proposed project in Quezon will be
able to supply potential markets in the area and nearby provinces. As projected, Luzon, where the
proposed LNG projects are located, will have the highest demand for natural gas in the next decade.
Moreover, there are also investors signifying their interests to develop LNG facilities in Visayas and
Mindanao regions.
The successful implementation of these LNG terminals will be a huge development towards the goal of
establishing the country as an LNG trading and trans-shipment hub capable of addressing not just the
country’s energy needs but also that of the Asia-Pacific Region.
Setting up of LNG facilities and other related infrastructure does not only pour in large investment but
also necessitates significant manpower requirements. As shown in Table 16, about 6,800 employment
opportunities for skilled and unskilled workers will be made available during the construction and
operation phase of the proposed projects.
Table 16. ESTIMATED EMPLOYMENT GENERATION

Proponent Construction Phase Operation Phase Total
FGEN LNG Corporation 945 80 1,025
Excelerate Energy L.P. 100 60 160
Energy World Gas Operations
500 70 570
Philippines Inc
Batangas Clean Energy, Inc 3,000 115 3,115
Atlantic Gulf and Pacific Company of
800 80 880
Manila (AG&P)
Shell Energy Philippines, Inc. (SEP) 210 80 290
Vires Energy Corporation 710 72 782
Total 6,265 557 6,822
Infrastructure Support
The transformation of the country’s natural gas industry to mature industry status depends on the
development of the necessary infrastructure network and support facilities such as gas transmission
and distribution pipeline networks, LNG terminal facilities, compressed natural gas (CNG) refilling
stations, and ancillary facilities. The operation of LNG terminal facilities likewise requires various logistic
support. For the transportation of LNG from the source to the destination, when the LNG vessel is
nearing the terminal, tugboats can be utilized during conditional sea traffic conditions for entry and exit
to ensure safety. Bunker services for truck filling stations, shipping industry and industrial processes
using state-of-the-art equipment on par with the latest technical requirements in LNG distribution are
also necessary. In the absence of conventional pipelines, trucks and trailers in land and LNG vessel in
sea are modes of bringing the LNG to the demand centers. Additionally, specialized storage facilities
are needed for storing supply not for immediate use.
Domestically, the archipelagic nature of our country requires mixed mode of land and sea transport to
provide natural gas supply to all the demand sectors including off-grid areas and remote islands in the
country. The development of the required infrastructure and transportation network contributes to
market development of natural gas making it accessible to the power and non-power sectors of the
economy. Lastly, the natural gas transportation system and the operation of LNG terminal facilities
results in the emergence of new business and employment opportunities in the areas, thus contributing
to its local economic development.

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II. OIL INDUSTRY

An Empirical Analysis of the Philippine Retail
Diesel Market: Competition in Cities
The COVID-19 pandemic brought with it challenges to A student from the University of Asia and the
various industries. In addition to the threat to human Pacific, Pauline Bautista, did a study (as her
thesis for the Master of Science in Industrial
lives, the transmission of this disease affects the global Economics) to analyze the city-level competition
economy. As the world navigates the “new normal,” the and pricing distribution of diesel fuel in selected
downstream oil industry is among the sectors most Luzon markets (except Region IV-B) covering 25
provinces and 62 cities. The study attempts to
affected by economic lockdowns, travel restrictions, have empirical analysis on the assumptions and
limited capacity utilization, among others. conclusions derived from the industry study
conducted by the Center for Research and
Communication (CRC) on higher pump prices of
In the 2019 pre-pandemic, oil accounted for 31.0 petroleum products in Baguio City as compared
percent share of global primary energy consumption 82. to Ilocos region. The CRC study hypothesized
that the high prices in Baguio may be due to the
According to the International Energy Agency’s (IEA) city’s (a) low retail fuel station density, (b) higher
Global Energy Review 2021,83 global oil demand cost of doing business, (c) no available storage
facility within its region, and (d) high vehicle
declined by 8.8 percent in 2020 due to lockdown density.
measures and mobility restrictions. The transport
sector, which demanded around 60.0 percent of global The study examined what influences entry
decisions in each city by looking into the
oil demand, was severely affected with demand for fuels relationship between station density, population
fell by 14.0 percent from 2019 levels. During the first density, brand concentration, and real estate
prices. Results showed that the number of
quarter of 2020, road transport in countries that stations significantly increases less
implemented lockdowns dropped between 50.0 and proportionately to an increase in population,
75.0, while aviation activity went down by 60.0 percent which indicates that the rise in station density is
slower than the growth of population. If the
as compared with the same period in 2019. 84 number of consumers increases, while the
number of stations is fixed, this gives each station
Oil has made significant contributions to the world's additional market power since there is more
demand than supply in that area.
economy. This fossil-based fuel is used in almost all
modes of transport, and by heavy and light On the relationship between brand concentration
and station dens revealed that increased
manufacturing in their production process (e.g., competition may become a barrier to entry for
chemicals, textiles, detergents, and medicines). Against stations due to the large number of independents
this backdrop, oil supply stability is of paramount with price lower than the average, thus making it
less profitable for major brands to enter and
importance to any economy. compete. On the other hand, despite free entry
of firms, there may be a possibility that some
cities with high population demand, but low
On the domestic front, the DOE, under the Downstream station density are concentrated markets that
Oil Industry Deregulation Act of 1998 or Republic Act experience barriers to entry.
(RA) 8479, is mandated to ensure sufficient supply of oil
The study also determined the implications of
or petroleum products for the economy, which should entry competition on price and price dispersion
be of high quality in compliance with the Philippine in the retail gasoline market. Cities with high
station density have low prices and decreased
National Standards (PNS). The Act provides the price dispersion. Thus, the study assumed that
regulatory framework for a competitive downstream oil cities with higher station density have their prices
industry among participants. at the competitive level. Further, zonal values
significantly (positively) affect the level of prices
whereas storage capacity negatively affects
Downstream Oil Participants. From 2019 to 2020, the prices.
downstream oil industry experienced growth with
Lastly, the results of the relationship between
additional entry of players despite lower demand for brand concentration, price and price dispersion
petroleum products caused by COVID-19. Downstream show the effect of having more independents in
a city that significantly increases competition and
oil players have options, which part of the industry they pushes down prices.
would like to engage in such as: a) marketing, b)
distribution, and c) storage of petroleum products.
Table 17 shows the number of players in various
downstream activities and the corresponding investments. The number of industry players grew by 7.9
percent, from 355 in 2019 to 383 in 2020, bringing in total accumulated investment (since the start of
the industry deregulation) from PhP183.8 to PhP190.3 billion, respectively.
82
https://www.iea.org/reports/global-energy-review-2019
83
84

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Table 17. NUMBER OF PLAYERS WITH INVESTMENTS

Number of Players Investment (PhP Billion)
Activity
FY 2019 FY 2020 FY 2019 FY 2020
Liquid Fuel Bulk Marketing 305 327 21.97 25.73
Fuel Retail Marketing 18 18 14.31 14.37
LPG Bulk Marketing 12 13 16.91 17.45
Bunkering 7 9 2.61 2.61
Terminalling 11 14 8.82 10.93
Refining85 2 2 119.20 119.20
Total 355 383 183.82 190.28
Retail Marketing Business. In 2020, there were retail outlets constructed and re-branded to modernize
the facilities and services as part of compliance to the Department Circular (DC) No. 2017-11-0011 or
the “Revised Retail Rules.” This led to a 7.6 percent increase in the number of retail outlets nationwide,
from 10,483 in 2019 to 11,282 in 2020.
Among the three (3) major island grids, Luzon has the largest number of retail outlets (including the
National Capital Region or NCR) as shown in Table 18.
Table 18. CUMULATIVE NUMBER OF RETAIL OUTLETS

Regions Number of Retail Outlets
2019 2020
NCR 1,102 1,096
Luzon* 5,236 5,754
Visayas 1,897 2,106
Mindanao 2,248 2,326
Total 10,483 11,282
*Includes the number of retail outlets in NCR
Total Country Storage Facility. There are 188 storage facilities located in various regions of the
country. Of the total, 50 are import terminals and one (1) refinery, while the remaining 137 depots are
distribution facilities. Relatedly, the country’s total storage capacity is reported at 44,788.6 thousand
barrels (MB). (Table 19).
Table 19. EXISTING DOWNSTREAM OIL FACILITIES

Number of Units Capacities*
Depots
Major (Petron, Shell and Chevron) 38 5,188.47
Others (Various Downstream Oil Players) 99 2,340.39
Total Depots 137 7,528.86
Import Terminals
Major 6 12,067.77
Others 44 14,815.78
Total Import Terminals 50 26,883.55
Refinery (Crudes and Products)
Petron – Limay, Bataan 1 10,376.23
Total Refinery 1 10,376.23
Total 188 44,788.64
Note: * Excluded non-operational depots and I/E Terminal
** Excluded spare tanks capacity
Shell’s refinery was converted to a world class import terminal in August 2020
The country has currently one (1) refinery, the Petron Bataan Refinery (PBR) in Limay, Bataan which is
owned by Petron Corporation. The PBR has a total storage capacity of 10,376.2 MB. This includes
crude oil at 5,117.1 MB, intermediate stocks at 1,990.3 MB, and finished petroleum products at 3,268.9
85
In August 2020, Shell decided to convert the refinery into an import terminal.

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MB. In August 2020, the PSPC announced its decision to stop its refinery operations due to economic
shutdown. The PSPC converted its refinery complex to a word class import terminal similar to the North
Mindanao Import Facility (NMIF) in Cagayan de Oro City.
Table 20 shows the storage capacity and sales per region. Luzon has the largest share with a capacity
and sales of 25,161.8 MB and 101,601.7 respectively. Of the total Luzon, Region 4A has the biggest
capacity share with 14,798.0 MB, while NCR has the most sales with 37,296.3 MB. For the Visayas
region, Region 7 has the bulk of the capacity with 1,613.7 MB and sales of 8,885.0 MB. In Mindanao,
Region 10 has the largest storage capacity with 2,618.4 MB and sales of 6,564.0 MB.
Table 20. DEPOT/STORAGE FACILITY PER REGION AND THE SALES PER REGION, MB
Storage Capacity Share By
Region Storage Capacity Sales
Share Region
I. Refineries*
III 10,376.23 23.17
Total 10,376.23
II. Bulk Plants
NCR 353.70 0.79 37,296.28 26.26
Region 1 1,141.86 2.55 4,860.09 3.42
Region 2 0.00 3,873.75 2.73
Region 3 8,299.58 18.53 22,897.25 16.12
Region 4A 14,798.04 33.04 25,052.49 17.64
Region 4B 274.70 0.61 2,396.10 1.69
Region 5 293.60 0.66 4,328.13 3.05
CAR 0.30 0.00 897.57 0.63
Total Luzon 25,161.78 101,601.66
Region 6 849.75 1.90 6,611.67 4.66
Region 7 1,613.71 3.60 8,885.00 6.26
Region 8 551.90 1.23 2,729.56 1.92
Total Visayas 3,015.36 18,226.23
Region 9 629.97 1.41 3,821.28 2.69
Region 10 2,618.44 5.85 6,564.00 4.62
Region 11 2,012.42 4.49 6,218.52 4.38
Region 12 241.28 0.54 3,121.78 2.20
CARAGA 203.05 0.45 1,864.65 1.31
ARMM 530.10 1.18 598.46 0.42
Total Mindanao 6,235.26 22,188.69
Total Bulk Plants 34,412.41
Grand Total 44,788.64 100 142,016.57 100
* Includes storage capacity in the inventory report and total spare tank capacity
1. Petroleum and Facilities Standards
Standards Development. The DOE remains committed in the formulation of appropriate national
standards for the country in support of the vision for a low carbon future. The crafting and development
of the country’s standards are guided by the Philippine Clean Air Act of 1999 (RA 8749) and Biofuels
Act of 2006 (RA 9367). It is also the policy of the DOE to update fuel quality specifications as the current
requirement of the industry, end-users, and manufacturers. Likewise, fuel specification must also be
harmonized with internationally/regional environmental standards and global trends. Tables 21-23
summarize the DOE-PNS for (a) Quality of Petroleum Products, (b) Petroleum Processes and Facilities,
and (c) Code of Safety Practices that were developed and issued in 2019 and 2020:

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Table 21. QUALITY OF PETROLEUM PRODUCTS

PNS
Date of
Number/
Title PNS/DC Description Purpose/Significance
DC
Issuance
Number
Petroleum PNS/DOE 23 This standard is a revision/update of the This PNS supersedes
Products – QS December PNS/DOE QS 009:2007 on property of flash PNS/DOE QS
Kerosene 09:2019 2019 point with two (2) limits based on test 009:2007 as the
Specification method use and limiting the scope of current standard
kerosene to energy related applications, as specification for
well as updating the test method. Kerosene.
Table 22. PETROLEUM PROCESSES AND FACILITIES

Facility PNS Number Description
Liquefied petroleum gas PNS/DOE FS 2:2018 This amends the existing standard to reduce
(LPG) refilling plant – General Amendment 1:2020 the minimum separation distance between
Requirements each of the fixed storage tank of the bulk plant
and the nearest point of the cylinder filling hall
from 15 to as low as three (3) meters provided
that the specified conditions are met.
Table 23. CODE OF SAFETY PRACTICES

Code of Safety Practices Status Description
Handbook on Code of Safety Signed on 19 September The Code constitutes good industry practices
in Liquid Petroleum Products 2019 for oil terminals/depots and is designed to
(LPP) Depot prevent accidents at LPP terminal/depot
facilities and ensure product quality.
Modules of Instruction for Signed on 29 October The Modules aim to uphold and promote
LPG Cylinder Refillers 2019 in partnership with competency among the LPG Cylinder Refillers,
Technical Education and which provide methodologies and set of
Skills Development conditions to ensure proficiency in the
Authority (TESDA) operational level.
2. Supervision and Monitoring
In line with its monitoring function, the DOE conducts various inspections and sampling of LPP in
terminals/depots and retail outlets nationwide. Field testing activities are undertaken to verify
compliance of industry players with the PNS. From 2020 to 1st quarter of 2021, the DOE carried out the
following activities:
▪ Inspected/monitored 346 Liquid Fuels Retail Outlets (LFRO) and LPG establishments;
▪ Gathered 93 samples of LF products from LFROs for further testing of the DOE – Energy
Research and Testing Laboratory Services (ERTLS);
▪ Examined 1,510 denaturing activities; and
▪ Conducted 22 depot product sampling/ testing.
The DOE likewise continues to conduct routine and product quality testing amidst the pandemic.
Alternative measures were implemented to address quarantine restrictions affecting mobility and
deployment for field inspection. As a substitute to field testing, the DOE required the oil companies to
submit monthly copies of Certificate of Analysis (COA) or any equivalent Quality Assurance
procedure/practices being adopted by the company to ensure that the finished products in various
depots and retail outlets are in compliance with the PNS.
3. Communication Initiative of The Downstream Oil Industry
The DOE promotes consumer awareness through the conduct of information, education &
communication (IEC) campaign activities. These IEC campaigns provide an avenue to guide
stakeholders on how to avail the benefits from existing programs, provide industry status updates, and

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address participants’ inquiries.

However, IEC activities were
suspended in 2020 due to the
COVID-19 pandemic.
4. Policy Advocacy Campaign
With developments in the

downstream industry, the DOE
continues to review and amend
existing rules and regulations,
improve process systems, and
adapt in the new normal. For the
period 202086, the DOE crafted and
promulgated the following policies:
a. DC 2020-03-000787 amending Certain Sections of DC 2007-02-0001 titled "Guidelines

Implementing the Registration of Fuel Additives under RAs 8479 and 8749.” The Circular aims to
improve procedures and requirements in line with the objectives and principles of RA 11032 88.
The Circular limits the granting of fuel additive registration to permanent category and provides
for the approval of the Certificate of Fuel Additives Registration by the DOE Bureau Director.
b. Department Order (DO) on the Adoption of the Downstream Oil Industry Work Instruction
Manual. The manual will serve as the DOE’s standard operating procedure in the conduct of
various inspections to ensure the right quantity and quality of fuels. Currently, the DOE is
formulating the said instruction manual and its corresponding DO.
c. DC 2021-06-001489 or the “Revised Circular on Accreditation and Submission of Notices and

Reports by Refiners, Importers and Own Users of Gasoline and Diesel pursuant to Biofuels Act.”
The Circular prescribes the consolidated and updated accreditation qualifications and
requirements, as well as reportorial formats in compliance with the Biofuels Act.
d. DC 2020-05-001290 on the “Guidelines Implementing the Temporary Modification of Import Duty

Rates on Crude Petroleum Oil and Refined Petroleum Products as Provided Under Executive
Order (EO) 113.” The Circular promulgates the rules and regulations for the effective
implementation of the EO 113, titled “Temporarily Modifying the Rates of Import Duty on Crude
Petroleum Oil and Refined Petroleum Products Under Section 1611 of RA 10863, Otherwise
Known as the “Customs Modernization and Tariff Act.” It intends to provide the guidelines for
the reversion to zero percent as international oil prices increase based on specified trigger prices
indexed to oil prices in the world market.
e. Draft Circular on “Guidelines on Notices and Reportorial Requirements Pursuant to the

Downstream Oil Industry Deregulation Act.” The draft Circular on Notices and Reportorial
Requirements Compliance has been crafted to improve the quality and timeliness of reports
submitted by the industry. It includes the consolidated and updated version of notices and
reportorial formats in compliance with the Oil Deregulation Law. As of June 2021, the Omnibus
Circular is presented to the Oil Industry through a virtual Public Consultation.
f. Downstream Oil and Natural Gas Online Platform (DONGOP). To further strengthen public
service, the DOE is keen on improving its process systems (e.g., online application, etc.) for
stakeholders to transact with government through an online platform. The DONGOP aims to
86
Policy issuances in 2019 were included in the PEP 2018-2040
87
Promulgated 26 February 2020
88
Ease of Doing Business and Efficient Government Service Delivery Act of 2018
89
Issued on 03 June 2021
90
Issued on 11 May 2020

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digitize all the client service applications and reports under the Citizens’ Charter. Through digital
transformation, significant reduction of processing time, as well as convenience for stakeholders
will be realized.
g. TradeNet Online Platform. In line with the government’s thrust to promote efficient delivery of
services and improve ease of doing business in the country, the DOE is now on the final stage of
the preparations for the onboarding to the TradeNet Online Platform. The TradeNet Platform was
developed to serve as the Philippine National Single Window with the objective of improving trade
facilitation by streamlining formalities, procedures, trade-related exchange of information, and
documents from key Trade-Related Government Agencies (TRGAs). The DOE is identified as one
of the TRGAs.
h. A DC has been drafted on the Strategic Petroleum Reserve (SPR) Stockpiling prescribing the
guideline for the Philippine National Oil Company (PNOC) to initiate the conduct of appropriate
study and thereafter the formulation of an implementing plan for the Philippine Strategic
Petroleum Reserve Program (PSPRP). The SPR shall be included in the updating of the
Philippine National Oil Contingency Plan (PNOCP) with the Inter-agency Energy Contingency
Committee (IECC). It may be recalled that the DOE issued a Memorandum Order (MO 2019–
11–0001) directing the PNOC to undertake a study for the establishment of an SPR Stockpiling.
Relatedly, the Oil Contingency Task Force (OCTF) is currently being established in response to
the ongoing implementation of the priority instruction of the IECC under Presidential
Administrative Order No. 6. The corresponding IECC Resolution creating the OCTF is being
drafted along with its Internal Rules.
i. A Memorandum of Agreement (MOA) was signed on 12 May 2021 between the DOE and Japan
Oil, Gas and Metals National Corporation (JOGMEC). Under the MOA, JOGMEC will conduct a
study within eight (8) months after the signing for the updating of the PNOCP including
recommendations for the creation and operation of the PSPRP. The parties shall have a one (1)
year consultative period after the submission of the final study report.
Information Exchange and Data Reconciliation Initiatives
DOE-BOC-BIR MOA. To improve data on petroleum products importation, the DOE, the Bureau of
Customs (BOC) and the Bureau of Internal Revenue (BIR) signed a tripartite MOA on 27 May 2021
through a virtual ceremonial arrangement. The MOA aims to assist the parties concerned in data
reconciliation on petroleum products and bioethanol importation. It will also create an Information
Exchange and Reconciliation Committee for the establishment of a standard reporting and reconciliation
format to allow effective and efficient reconciliation of information provided by all parties.
Any discrepancies or variance in the information provided by any of the parties will be monitored and
reported for reconciliation and further investigation, with due consideration on the protection of
confidentiality of the documents and information. Overall, the agreement is part of the sustained inter-
agency efforts to fight fuel smuggling and uphold proper tax assessments of fuel imports.
5. Legislative Agenda
The DOE has actively participated in various legislative agenda in both Houses of Congress for
finalization of the following:
Philippine LPG Bill. The 18th Congress recently passed the House Bill (HB) 9323, titled “An Act
Establishing the Regulatory Framework for the Safe Operations of the Liquefied Petroleum Gas Industry,
Delineating the Powers and Functions of Various Government Agencies, Defining and Penalizing Certain
Prohibited Acts,” while the Senate approved the Senate Bill (SB) 1955 or “An Act of Providing for the
National Energy Policy and Regulatory Framework for the Philippine Liquefied Petroleum Gas Industry.”

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The Bill aims to establish the regulatory and supervisory framework for LPG and related industries. It
also encourages accountability and responsibility among LPG - related industry participants to promote
quality, ensure safety and fair-trade practices in the LPG business and protect the welfare of the
consuming public.
Under the Bill, the DOE is the lead agency on all matters concerning the LPG industry. On the other
hand, the Department of Trade and Industry (DTI) is assigned as the lead agency on all matters
concerning LPG cylinders and ancillary equipment. The Bill also grants certain powers and functions to
other agencies and local government units (LGUs) for effective implementation. The DOE will undertake
coordinated efforts to monitor and supervise compliance of industry participants with the quality and
safety standards prescribed in the PNS and other accepted codes and standards.
The Bill’s salient provisions include a) periodic monitoring of operations, activities, facilities, and
equipment of LPG industry participants; b) set standards and requirements on measuring devices,
cylinder seals, repair, requalification and rehabilitation of LPG cylinders and other ancillary equipment,
among others; c) provision for the formulation of an LPG Cylinder Exchange and Swapping Program;
and, d) establishment of accredited LPG cylinder swapping centers.
Oil Pricing. The DOE also participates in the ongoing legislative review on the laws relating to oil pricing.
These cover the amendments to the Price Act, Exemption of Petroleum Products from VAT, and
Promotion of Fair Trade in the Oil Industry.
Oil Deregulation Law Amendment. The DOE maintains active participation in the legislative
deliberations relating to the Bills and Resolutions calling for the amendments of the Law and re-
regulation of the industry. Amendments are generally geared towards strengthening the power of the
DOE on the issue of oil price transparency for the protection of consumers.
Fuel Subsidy Program. In 2021, the Department of Agriculture (DA) endorsed the Regional Agricultural
and Fishery Council (RAFC) Central Luzon Resolution No. 2 series of 2021 to the DOE. The resolution
recommends a partnership between the DA and DOE for a fuel subsidy program through provision of
fuel vouchers to all Registry System for Basic Sectors in Agriculture (RSBSA). In response, the DOE
noted that the said program needs to be based in a law. Further, agreements with the oil companies
must be considered for the program to thrive and be sustainable. The DOE likewise believes that there
should be a timeline and/or trigger mechanism for the provision of subsidy since there are times when
oil prices are low.
PLANS AND PROGRAMS
Medium-Term
Within the planning period, the DOE remains committed to its mandate of ensuring secure and stable
supply of high-quality petroleum products in the market. As such, the government’s policy, and
regulatory framework must cope with the global trends (i.e., taxation, incentives, and licensing) to
encourage investors to participate in downstream oil industry (Figure 31).
1. Legislative Agenda and Policy Advocacy Campaign
The DOE is firmly advocating for the passage of the LPG Bill into law to have a national policy and
regulatory framework governing the LPG industry. Once promulgated, the DOE is tasked with the
policy’s implementation, development of the LPG Industry Development Plan, and ensuring compliance
with safety standards.
During the planning period, the review of existing policies and amendment of the Oil Deregulation Law
are also being proposed. Simultaneously, the development of Downstream Oil Development Plan and
an Oil Strategic Stockpiling Bill are also being considered as the blueprint for the future of the industry.
Meanwhile, the MOA between DOE and JOGMEC for the study to update the 2002 PNOCP will provide

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significant inputs for the Downstream Oil Development Plan to ensure that the country will have
sufficient supply in times of disruptions.
2. Standards Development
Anchored on the industry roadmap, the DOE’s policy on updating fuel specifications of petroleum
products to harmonize with the international standards for fuels shall be continuing initiative. After the
promulgated of the PNS for Kerosene, the PNS for emulsified fuel oil is targeted next for review of quality
specifications within the planning horizon. On the other hand, the crafting of the facility standards is also
scheduled to be reviewed with focus on liquid fuel/LPG transport facilities and vehicles. These
standards are envisioned to create more safeguard for human lives and environment, and all
downstream oil activities.
Figure 31. DOWNSTREAM OIL INDUSTRY

ROADMAP
3. Communication Initiatives
For the medium-term, the continuous promotion of the Gasoline Station Lending and Financial
Assistance Program (GSLFAP) is viewed as an integral mechanism to encourage investors in the retail
sector. The GSLFAP is intended to provide credit assistance to new players in the industry and provide
skills training in the retailing of petroleum products for the establishment, operation, improvement,
management, and maintenance of the gasoline stations. On the other hand, IEC Campaigns for the
medium-term will focus on the safe handling and use of liquid fuels and LPG.
Long-Term
The necessary targets in the long-term are important steps to realize the overall objective by 2040 as
indicated in the roadmap. To ensure the oil industry’s compliance to the reportorial requirements of the
Downstream Oil Deregulation Act and the Biofuels Act, the DOE will continue to improve its monitoring
of the industry’s activities and performance through the following: a) update standards to harmonize the
PNS with international and regional trends; b) enhancement of existing rules and regulations and
recommend/implement amendments; and c) support of Association of Southeast Asian Nations
(ASEAN) Initiative (e.g., ASEAN Petroleum Security Agreement, Stockpiling).
As identified in the roadmap, the DOE wants consumers to be informed and protected. As a substitute
for the regular IECs, various virtual IEC campaigns regarding the activities and other related matters in
the industry are also envisioned. This format allows for more reach since IEC participants only need a

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gadget and stable internet connection to participate. On the other hand, the DOE commits to the
continuous implementation of downstream oil management program and monitoring.
In 2020 alone, total investments from various downstream oil facilities were reported at PhP5,232 million
and produced an estimated job generation of 484 (Table 24). Of the total, the import terminals projects
in regions 3 and 4A accounted for PhP4,059 million and employed an estimated of 213 people.
Meanwhile, the PhP945 million worth of investments came from the construction of new depots and
generated 177 jobs, and the PhP228 million attributed to transport facilities with 94 jobs.
As of 1st quarter 2021, a total of PhP13,583.9 million worth of investments from new industry players
was reported and provided an estimated job generation for 95 persons. Bulk of investments came from
the operation of import terminals, which provided jobs for 81 persons.
Table 24. INVESTMENT IN OIL FACILITY, 2020 vs. 1Q 2021

1Q 2021 Total 1Q 2021
2020 Total Actual 2020 Estimated
Actual Cost of Estimated
Facility Cost of Investment Number of Jobs
Investment Number of Jobs
(PhP Million) Generated
(PhP Million) Generated
Import Terminal 4,058.96 13,560.99 213 81
Depot 944.98 - 177 -
Transport facilities* 228.02 22.95 94 14
Total 5,231.97 13,583.94 484 95
Note: Investments are based on the submitted Company Profile for fully complied downstream oil players. Estimated jobs generated based on
the number of distribution/hauling facilities submitted. Investment figures include potential players with notice prior to engage applications.
* For players engaged in the distribution and hauling activity.
Likewise, there were 37 new players reported for LPP retail marketing during the 1st quarter of 2021
with an aggregate investment of PhP200.1 million. Meanwhile, 116 new participants were recorded in
the LPG industry in NCR and South Luzon. The entry of new participants has a combined total
investment of PhP225.9 million. Consequently, the investments for both activities generated 774 jobs
within their area of operation. (Table 25).
Table 25. LPP RETAIL OUTLETS AND LPG ESTABLISHMENTS INVESTMENT, 2021 (1st Quarter)
Number of New Cost of Investment Number of Jobs
Activity
Players (PhP Million) Generated
LPP Retail Marketing 37 * 200.1 370
LPG Industry 116** 25.8 404
Total 153 225.9 774
* Based on Standards Compliance Certificate (SCC) and Certificate of Compliance (COC) applications. Includes 47 independent
retail outlets/gas stations
** LPG Refilling Plants, Dealers, Haulers, Marketers and Retailers
Oil Storage Capacity Requirement. The DOE continues to encourage investments in the downstream
oil sector to keep up with the country’s rising demand. This initiative is part of the government’s
measures to ensure oil supply security, particularly in times of supply disruption. In line with this,
additional oil distribution depots and import terminals are required to safeguard the country’s oil supply.
During the planning horizon under the Clean Energy Scenario (CES), the country’s total oil requirement
reaches 469,841 MB by 2040. On the other hand, total oil requirement in the Reference Scenario (REF)
is forecasted at 505,798 MB. The total oil requirement includes jet fuel for international aviation and
international marine bunkers for ships, which are excluded from the total primary energy supply (TPES)
and the total final energy consumption (TFEC) of the country. These fuels are not consumed
domestically as the international aircrafts and ships just refuel in the country for outbound destination.
However, these fuels must be considered in the estimation of additional depot and import terminal

ENERGY ROADMAPS
requirements. Further, the oil inputs for the oil-fired power plants91 are also added in the oil
requirements, and thus part of the depot capacity additions.
Table 26 shows the total oil requirement, depot capacity requirement, and the corresponding
investments from 2020 to 2040. The total depot capacity quadruples from the 2020 level of 10,798 MB
to 46,106 MB in the REF and 42,844 MB in the CES, translated to additional capacity requirement of
35,308 MB and 32,046 MB, respectively. It is assumed in the estimation of additional depot a higher
inventory level of 30 days for petroleum products except LPG with a 15-day inventory level, and an 80.0
percent capacity utilization rate for the facility. Also, the depot for crude oil is not included in the capacity
addition as the current capacity level is enough to accommodate the PBR requirement within the
planning period.
The depot capacity additions entail a total estimated investment of PhP103.5 billion by 2040 in the REF,
which is 10.2 percent higher than the CES with PhPP93.9 billion. These investments may generate total
jobs to 19,387 persons in the REF and 17,595 persons in the CES.
Table 26. DEPOT CAPACITY REQUIREMENT AND INVESTMENT
Cumulative Investment
Total Oil Total Depot Capacity Cumulative
Year @ 2020 Prices
Requirement Requirement (MB) Jobs
(PhP Million)
(MB) Generation*
REF CES REF CES REF CES REF CES
2020 142,017 142,017 10,798 10,798 - -
2025 187,981 181,700 21,786 20,835 32,212.15 29,423.60 6,033 5,511
2030 265,187 252,038 28,720 27,381 52,538.21 48,613.72 9,840 9,105
2035 369,295 349,601 36,558 35,206 75,513.47 71,552.34 14,144 13,402
2040 505,798 469,841 46,106 42,844 103,505.18 93,941.32 19,387 17,595
* On the assumption that investment cost is PhP2,931.45 per barrel capacity (average) and 5.34 jobs will be generated per PhP Million
(2020 actual oil depot investment / jobs generated).
On the other hand, net oil import requirement increases from 2020 level of 131,002 MB to 458,007 MB
in the REF and 418,998 MB in the CES by 2040. Using the same assumptions for depot, the REF
necessitates a total capacity of 47,500 MB for import terminal facility and 43,750 MB in the CES (Table
27), or an additional capacity of 23,116 MB and 18,116 MB, respectively. With existing large import
terminal facilities, additional capacity will be needed after 2030 to meet the growing oil imports of the
country.
The import terminal capacity additions need a total investment of PhP67.8 billion (REF) and PhP53.1
billion (CES). Correspondingly, these investments offer an estimated job opportunities for 3,556 persons
in the REF and 2,787 persons in the CES.
Table 27. IMPORT TERMINAL REQUIREMENT AND INVESTMENT

Total Import Cumulative Investment
Total Oil Import Jobs
Year Terminal Capacity @ 2020 Prices
Requirement (MB) Generation*
Requirement (MB) (PhP Million)
REF CES REF CES REF CES REF CES
2020 131,002 131,002 26,884 26,884
2025 165,683 157,129 26,884 26,884 - - - -
2030 235,756 221,241 26,884 26,884 - - - -
2035 331,576 308,757 34,375 37,500 25,625.15 20,128.68 1,345 1,056
2040 458,007 418,998 47,500 43,750 67,764.79 53,107.52 3,556 2,787
* On the assumption that investment cost is PhP2,931.45 per barrel capacity (average) and 19.06 jobs will be generated per PhP Million
(2020 actual import terminal investment / jobs generated.
91
Oil used for power plants is not reflected in the TFEC for oil but reflected as electricity.

ENERGY ROADMAPS
If the mandated Minimum Inventory Requirement (MIR) shall still be adopted in the planning period,
which is 15 days for petroleum products and seven (7) days for LPG, the capacity additions for both
depot and import terminal may be trimmed down by half. The higher inventory level is considered as a
precautionary measure in the event of imminent supply disruptions. The Downstream Oil Development
Plan shall also look at the appropriate inventory level for the country, as well as the regional distribution
of depots and import terminals based on demand by each region.
CONSUMER PROTECTION
Information Campaign on Safety on Liquid Fuel and LPG Use. “The safety of everyone should
never be compromised” is the clear message of DOE Secretary Alfonso G. Cusi particularly in handling
and use of liquid fuels and LPG. This is to protect the public against mishandling or accidents related to
liquid fuels and LPG.
In line with the Secretary’s directive, the DOE, through its IEC campaigns, intends to raise awareness
and change the behavior both the industry players and consumers. Particularly, the IEC campaigns are
designed to educate the consuming public and other stakeholders on the safe use and handling of liquid
fuels and LPG. Further, the DCs issued by the DOE and other significant rules and regulations governing
the downstream industry are also discussed in the IEC campaigns.
The Oil Industry and the TRAIN Law. The “Tax Reform for Acceleration and Inclusion (TRAIN Law)”
or Republic Act No. 10963, is the primary package of the Comprehensive Tax Reform Program signed
into law by President Rodrigo R. Duterte on 19 December 2017. The TRAIN Law also imposes higher
excise taxes on petroleum products, which was implemented in three (3) tranches – the 1st Tranche in
January 2018, 2nd Tranche in January 2019 and last Tranche in January 2020. Table 28 shows the
amount of excise tax and the value-added tax (VAT) per fuel type. To protect the interest of consumers,
the DOE remains vigilant in its monitoring and proper implementation of the law, specifically during the
first three (3) years of implementation (2018-2020).
Table 28. IMPACT OF EXCISE TAX ON PETROLEUM, FY 2020

Total
3rd Tranche
(1st – 3rd Tranche)
Product Excise Tax 12% VAT Total Excise Tax With 12 % VAT
Peso/Liter
Gasoline 1.00 0.12 1.12 10.00 11.20
AV Turbo 0.00 0.00 0.00 4.00 4.48
Kerosene 1.00 0.12 1.12 5.00 5.60
Diesel 1.50 0.18 1.68 6.00 6.72
Fuel Oil 1.50 0.18 1.68 6.00 6.72
LPG motive fuel 1.50 0.18 1.68 6.00 6,72
LPG, P/kg 1.00 0.12 1.12 3.00 3.36
Pushing for Further Competition. In addition to the retail pump prices and quality service dashboard,
which enables the consumers to compare the prices of gasoline, diesel and other petroleum products,
the DOE has been informing the consumers of the Waze app with the petroleum price function and has
partnered with Angkas riders for near real-time reporting of prevailing fuel prices in Metro Manila. This
price monitoring scheme will help consumers to among the gasoline stations that offer better fuel prices
and services. Likewise, Angkas’ riders will also evaluate the state of the gas station and its facilities (e.g.,
restrooms, attendants etc.) to ensure high-quality customer service.

ENERGY ROADMAPS
C. RENEWABLE ENERGY
The DOE remains resolute to attaining a smooth transition to clean and better energy
future for the country – that is more secured and sustainable energy supply for the public.
Despite the COVID-19 pandemic that affected economic activities and disrupted the
supply chain, the DOE still managed to continue its initiatives in clean energy programs
through the issuances and implementation of policy guidelines to further advance the
development of renewable energy (RE) and alternative fuels and increase their shares in
power and non-power applications. These policy guidelines are seen to provide favorable
investment environment for both local and foreign stakeholders.
I. BIOFUELS
The DOE has been pursuing continuous research and development for other sources of biofuel
feedstock to augment domestic production and meet the supply requirements for the mandated
biodiesel and bioethanol blends. This is pursuant to Section 5 of the Biofuels Act of 200692, mandating
all liquid fuels for motors and engines sold in the Philippines shall contain locally-sourced biofuels
components. And to ensure compliance to product quality standards, the DOE likewise conducts regular
monitoring, validation and site inspection to biofuels facilities.
Capacity and Production. As of 2020, total biofuels production capacity stood at 1,088.4 million liters
per year (MLPY), comprised of 707.9 MLPY from the 13 biodiesel accredited facilities, and 380.5 MLPY
provided by the 12 bioethanol accredited facilities. In the same year, production outputs of biodiesel
and bioethanol decreased by 22.3 percent and 19.2 percent, respectively, from previous year’s levels.
As shown in Table 29, biodiesel production went down to 187.7 million liters (ML) from 2019 level of
241.5 ML, while bioethanol decelerated to 279.6 ML from 346.1 ML. Sales for biodiesel dropped by 26.2
percent and 22.2 percent for bioethanol. The reduction in production and sales was mainly due to lower
demand of diesel and gasoline caused by limited mobility brought about by the COVID-19 pandemic. It
should be noted that the local production of bioethanol is not enough to meet the blend requirement,
only providing about half or 52.3 percent of domestic demand.
Aside from these production facilities, two (2) distributors of biodiesel with a total storage capacity of
2.0 million liters are now operational.
Table 29. BIOFUELS CAPACITY AND PRODUCTION

Accredited Biofuel
2019 2020
Biofuel Facilities
(ML) (ML)
(As of 2020)
No. of Capacity Production Sales Production Sales
Projects (MPLY)
Biodiesel 13 707.90 241.50 217.52 187.67 160.42
Bioethanol 12 380.50 346.14 355.55 279.58 276.74
Total 25 1,088.40 587.64 573.07 467.25 437.16
Accreditation. The DOE facilitated the accreditation of two (2) additional biodiesel production plants,
the ARChemicals Corporation (2019) and Econergy Corporation - Polomolok (2020), with combined
capacity of 133.0 MLPY, increasing the total biodiesel production capacity to 707.9 MLPY.
92
Republic Act (RA) 9367 directing the use of Biofuels, establishing for this purpose the Biofuel Program, appropriating funds therefore,
and for other purposes.

ENERGY ROADMAPS
In early 2021, the Asian Alcohol Corporation was awarded with Certificate of Accreditation under the
Biofuels Act of 2006 or Republic Act (RA) 9367 with rated capacity of 30 MLPY. On the other hand,
Universal Robina Corporation - La Carlota Distillery has optimized its production capacity, from 30.0
MLPY to 45.0 MLPY, thereby bringing the total bioethanol production capacity to 425.5 MLPY.
Research and Development. Research and demonstration projects using alternative feedstock such
as Nipa Sap, combined feedstock of various vegetables and used cooking oils were implemented to
address the issue of supply sustainability. These projects were realized in partnership with the following
institutions:
▪ Mariano Marcos State University (MMSU) for the “Establishment of a Community-Based

Bioethanol Industry and Continued Research and Development on the Feasibility of Hydrous
Bioethanol as Biofuel Blend using Nipa Sap as Feedstock;”
▪ University of the Philippines – Los Baños (UPLB) for the “Life Cycle Assessment in terms of
Carbon Debt and Payback Analyses, Carbon Savings and Energetics Studies of Biodiesel
Production from Coconut Oil in the Philippines;” and
▪ Department of Science and Technology – Industrial Technology Development Institute

(DOST– ITDI) for the “Characterization/performance testing of the Biodiesel/diesel Blends from
combined Feedstock of Various Vegetable and Used Cooking Oils.”
An actual on-road and performance testing using five (5) percent biodiesel blend (B5) was initiated in
2017, wherein about 17,000 kilometers (kms) distance of flat and high altitude/elevated terrains with
varying weather conditions were covered as of December 2020. The resumption of the actual on-road
performance testing to cover the remaining 13,000 kms distance has commenced in 2 nd quarter of 2021
to obtain a more conclusive result on mileage savings. Further, various seminars and workshops were
conducted to continuously capacitate the proponents, as well as to develop and research on other
alternative feedstock sources.
Programs. With the implementation of the Social Amelioration and Welfare Program (SAWP),93
several qualified biofuel workers have already benefited and provided with various assistance in their
livelihood, training, education, emergency, social protection and welfare through funds collected from
accredited biofuels producers.
SAWP fund is sourced from the lien94 collected from the accredited biodiesel and bioethanol producers
and planters who are supplying the feedstocks. Lien from the biodiesel sector is equivalent to PhP0.05
for every liter of Coco Methyl Ester (CME) produced and sold. For bioethanol sector, lien is equivalent
to PhP13.43 for every ton cane of sugarcane produced and used as feedstock for bioethanol production,
while PhP0.07 per liter of molasses-based bioethanol.
In 2020, a total of PhP72.1 million was collected from the CME producers, while PhP12.9 million was
generated from sugarcane-based bioethanol producers and PhP71.1 million from molasses-based as
shown in Table 30.
Table 30. SAWP FUND (as of 31 December 2020)

Biofuel Sector Feedstock Collected Fund
(PhP Million)
Biodiesel Coconut 72.09
Bioethanol Sugarcane 12.90
Molasses 71.09
Total 156.08
Source: Department of Labor and Employment (DOLE)
93
By virtue of Section 17 of the Biofuels Act of 2006
94
Lien refers to the levy collected from the production of biofuels (with different feedstock sources) to support the SAWP for biofuels
plant workers.

ENERGY ROADMAPS
The Tripartite Consultative Council (TCC) also issued a referendum in 2020 for the project titled “SAWP-
Adjustment Measures Initiative (SAWP-AMin) for the Biofuel Workers affected by COVID-19 and its
Mitigating Measures” with total approved monetary assistance of PhP19.3 million. Actual beneficiaries
of the said project reached 3,189 biofuel workers with an actual fund utilization of 64.0 percent.
COVID-19 Response. In support of the whole-of-government approach towards fighting the pandemic,
the DOE facilitated the conditional approval of several accredited bioethanol producers’ request to
produce and sell 70% ethyl alcohol to augment market supply of disinfectants, as the country seeks to
contain the spread of COVID-19.
As of 2020, the Ethanol Producers Association of the Philippines (EPAP) has accounted more than 1.5
million liters of 70% / 95% ethyl alcohol donations from local bioethanol producers to various hospitals,
local government units (LGUs), government offices, schools, etc. all over the country.
PLANS AND PROGRAMS
Conforming with the provisions of the Biofuels Act, the DOE works steadily on the expansion of biofuels
application to maximize its contribution to the country’s energy supply mix. These aspirations will
support the government’s thrust of lessening dependence on fossil-based fuels that would improve
public health and quality of the environment.
Figure 32. BIOFUELS ROADMAP
Increasing the biofuel blend requires constant development of locally produced feedstock sources to
ensure supply sustainability. Aside from finding promising feedstock, the DOE remains committed
towards the implementation of the Biofuels Roadmap (Figure 32) and to work closely with other
government agencies, academic institutions, industry stakeholders and international
counterparts/organizations on the conduct of the following undertakings:
▪ Revisit the biofuel blend requirements and available feedstock in coordination with the National
Biofuels Board and other stakeholders;
▪ Research and Development (R&D) activities and demonstration projects using alternative
feedstocks such as Jatropha, Waste Cooking oil, Microalgae and Rubber Seed oil for biodiesel,
while sweet sorghum, Cassava, Microalgae, Nipa sap and Cellulosic material for bioethanol;
▪ Studies on biofuel-blended gasoline and diesel, and/or other biomass-derived fuels for use in
motors and engines including air transport and other vehicle technologies;
▪ Inspection, monitoring and product sampling of accredited facilities nationwide to ensure
compliance with the existing Philippine National Standards (PNS);
▪ Validation and evaluation of existing and proposed biofuels projects; and

ENERGY ROADMAPS
▪ Encourage the project proponents to invest in the production, distribution, and use of local
biofuels and provide fiscal incentives95 to entities engaged in the production of biofuels and
biofuels feedstock.
The proposed updating of the economic impact study on the increase of biodiesel blend to B5 will still
be pursued for the planning period. As the study relates to GDP, it focuses on the economic impacts of
the biodiesel expansion on household welfare, rural development, employment and income generation,
and other sectors of the economy. The increase in blend rate is seen to intensify agriculture production
and agriculture crop prices.
Correspondingly, a sensitivity analysis to determine the break-even price per kilogram of copra and per
liter of coconut oil will still be carried out. The price can be assessed when the mill gate/farm gate prices
of copra to CME are reasonably competitive and beneficial to the farmers. Further deliberation on price
and its effect on the final pump price will also be considered.
Capacity Expansion and Production Targets. With the issuance of Certificate of Registration with
Notice to Proceed (CRNTP)/Certificate of Accreditation (COA) for Construction, three (3) biodiesel
facilities with combined capacity of 277.7 MLPY are expected to be in commercial operation between
2021-2025, while a bioethanol production facility in Cavite with an estimated capacity of 38.0 MLPY is
also foreseen to be operational by 2022 (Table 31).
Table 31. REGISTERED WITH NOTICE TO PROCEED / FOR CONSTRUCTION

Proponent Location Production Capacity (MLPY)
Bioethanol
1. Cavite Biofuels Producers, Inc. Magallanes, Cavite 38.00
Biodiesel
1. Bio Renewable Energy Ventures, Inc. Jasaan, Misamis Oriental 150.00
2. Greentech Biodiesel, Inc. Gumaca, Quezon 100.00
3. Voice Development Corp. Tayabas, Quezon 27.65
Total 315.65
Apart from the newly accredited biofuel facilities, two (2) prospective producers have signified interest
to construct biodiesel facilities with a combined capacity of 101.2 MLPY to provide additional production
by 2025. These biodiesel producers are: (1) Empire Oleochemicals Manufacturing Corporation with
proposed 90.0 MLPY production capacity,
and Seaoil Philippines with 11.23 MLPY Table 32. BIOFUELS PRODUCTION CAPACITY (MLPY)**
capacity. With continued R&D and resource Year Biodiesel Bioethanol***
assessment, additional 686.3 MLPY of 2020 707.90* 380.50*
production capacities for biodiesel are 2025 1,086.78 944.15
targeted for the long-term. 2030 1,086.78 1,354.26
2035 1,331.93 1,913.05
2040 1,733.04 2,579.34
The optimization of the rated production *Existing Capacity
capacities and feedstock supply of the **Cumulative / Under Clean Energy Scenario (CES)
***On the assumption that all bioethanol supply requirement is to be
existing bioethanol producers will allow produced locally
additional production capacity of 60.5
MLPY starting 2025. This is on top of the newly accredited/amended bioethanol facilities coming in
between 2021 and 2022 which are anticipated to provide 83.0 MLPY of capacity. By 2040, new
capacities can possibly reach 2,055.1 MLPY based on available feedstock, increasing the total annual
bioethanol production capacity to 2,579.3 MLPY.
95
Section 6 of RA 9367 provides the incentive scheme for the production, distribution and use of locally-produced biofuels, which include:
(1) Specific Tax on local and imported biofuels component, per liter of volume shall be zero; (2) sale of raw material used in production
of biofuels shall be exempt from the value-added tax (VAT); (3) Water Affluents are considered “reuse” are exempt from wastewater
charges under the system provided under Section 13 of RA 9275, also known as the Philippine Clean Water Act; and (4) shall be
accorded financial assistance that engages in activities involving production, storage, handling and transport of biofuel and biofuel
feedstock with at least 60% capital stock.

ENERGY ROADMAPS
Research, Design and Development. Continued research and development on other alternative
biofuel feedstock sources including second generation biofuels will also be pursued for the planning
period. The “second-generation” biofuels or “advanced” biofuels utilizes feedstock that can be
manufactured from various types of non-food biomass, such as grass and agricultural wastes. A DOE-
registered second-generation bioethanol research and demonstration facility, the NSEBIO Co., LTD
Philippine Branch (NSEBIO), located in Batangas has completed its pilot plant test/research in 2020,
with feedstock capacity of 1-dry ton per day bagasse and napier grass. The NSEBIO’s ethanol yield
showed favorable results and its second-generation process is planned to be integrated into the DOE’s
accredited bioethanol plant, the San Carlos Bioenergy Inc.
The capacity expansion plan for biofuel facilities captures the foreseen increase in biofuels demand
within the planning horizon. As projected in the Energy Demand and Supply Outlook under the Clean
Energy Scenario (CES), biodiesel demand reaches 1,386.4 ML by 2040, which is more than double than
in Reference (REF) Scenario. This is in consideration that the blend rate increases to 5.0 percent by
2022 from the current 2.0 percent blend level. To meet the local supply requirement for biodiesel
demand within the planning horizon, the country needs a total additional production capacity of about
1,000 MLPY taking into account the 80.0 capacity utilization rate. This brings the total production
capacity to 1,733 MLPY by the end of the planning period (Table 33).
On the other hand, the demand on bioethanol grows to 2,063.5 ML by 2040 under the CES, lower by
7.3 percent than the REF scenario. The decline is attributed in the reduction in energy consumption
brought by the implementation of Energy Efficiency and Conservation (EEC) initiatives and
improvements in the vehicle efficiencies and fuel standards.
On the assumption that all bioethanol supply requirement is to be produced locally, around 2,200 MLPY
of additional production capacity (at 80.0 percent capacity utilization rate) is required to provide for
bioethanol demand. At the end of the planning period, total production capacity stands at 2,579.3 MLPY.
However, if only 60.0 percent of bioethanol supply requirement is to be produced locally, additional
production capacity will only be 1,167.1 MLPY (Table 34).
The additional production capacity generates investment and livelihood opportunities, especially in rural
communities. For biodiesel, the required capacity additions necessitate total estimated investments of
PhP4.8 billion (USD 96.8 million96) in CES and PhP279.4 million (USD 5.6 million) in REF. Meanwhile,
bioethanol needs total investments of PhP114.1 billion (USD 2.3 billion) in CES and PhP124.6 billion
(USD 2.5 billion) in REF (Table 33 and 34). The investments in both biodiesel and bioethanol offer an
estimated employment to about 13,500 Filipinos for the operation of the production plants, excluding
the jobs to be created during construction.
Table 33. BIODIESEL ADDITIONAL PRODUCTION CAPACITY AND INVESTMENT REQUIREMENTS*

Capacity Addition
Total Capacity Investment Cost
(80% Utilization Jobs
Year Demand (ML) (MLPY) (PhP Million
Rate) Generation
@2020 Prices)
(MLPY)
REF CES REF CES REF CES REF CES REF CES
2020 184.43 184.43 707.90 707.90 - - - - - -
2025 249.56 590.38 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2030 343.14 791.23 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2035 465.93 1,065.54 707.90 1,331.93 - 624.03 - 2,948.69 - 650
2040 613.62 1,386.43 767.03 1,733.04 59.13 1,025.14 279.39 4,844.01 62 1,067
*Cumulative
On the assumption that PhP4.725 million per MLPY capacity (average)
96

ENERGY ROADMAPS
Table 34. BIOETHANOL ADDITIONAL PRODUCTION CAPACITY AND INVESTMENT REQUIREMENTS*

Capacity Addition
Year Demand (ML) (MLPY) (PhP Million @2020
Rate) Generation
Prices)
(MLPY)
2020 579.30 579.30 380.50 380.50 - - - - - -
2025 798.01 755.32 997.51 944.15 617.01 563.65 32,009.73 29,241.45 3,486 3,185
2030 1,145.37 1,083.41 1,431.71 1,354.26 1,051.21 973.76 54,535.26 50,517.36 5,939 5,502
2035 1,622.29 1,530.44 2,027.87 1,913.05 1,647.37 1,532.55 85,463.24 79,506.59 9,308 8,659
2040 2,225.58 2,063.47 2,781.98 2,579.34 2,401.48 2,198.84 124,585.37 114,072.62 13,568 12,423
*Cumulative
Assumption if all bioethanol supply requirement is to be produced locally with estimated investment of PhP51.9 million per MLPY capacity (average).
II. RENEWABLE ENERGY SYSTEMS

With global innovation and policy support, competitiveness of RE resources and technologies have
significantly progressed over the years. The renewable sources now considered technologically mature,
cost-effective, and an environment-sustainable energy option to support socio-economic development.
1. Accelerated RE Position
Figure 33. MILESTONE ON RE GENERATING CAPACITY
Capacity Additions. The gradual
(MW)
entry of new capacities from
renewables serves as a milestone
of the DOE’s commitment of
ensuring the full and effective
implementation of the RE Act (RA
9513) since its passage in 2008.
From 5,284 megawatt (MW) of
generating capacity in 2008,
renewable capacity increased by
more than 40.0 percent reaching
7,617 MW in 2020 (Figure 33). The
DOE rallied on the formulation and
implementation of additional policy
mechanisms allowing renewables to thrive through the years and heed the challenges for greater
sustainability and brighter opportunities for RE expansion.
Renewables provided 277.5 MW of additional capacity Figure 34. NEWLY INSTALLED RE CAPACITY
in 2019, bulk of which was biomass contributing 166.9
MW (Figure 34). Biomass utilization for power
generation has rapidly increased due to abundance of
this resource, which includes agricultural crop
residues, forest residues, animal waste, agro-
industrial waste, municipal solid waste, and even
aquatic biomass. The most common agricultural
wastes are rice hull, bagasse, coconut shell husk and
coconut coir.
In 2020, renewables added around 70.0 MW, almost

all coming from solar. The dramatic reduction in cost
of solar panels contributed to the installation of
additional capacities from this renewable technology
(52.8 MW in 2019 and 70.9 MW in 2020). Hydro and

ENERGY ROADMAPS
wind projects that completed their gestation period likewise provided 58.1 MW of aggregate capacities
to the grid for the same periods.
Awarded Contracts. With extensive promotion and widespread adoption of cost-competitive

renewable technologies, 932 Renewable Energy Service Contracts (RESCs) have been awarded as of
December 2020 with total capacity of 34.7 gigawatt (GW) (Table 35). Of these, 5.3 GW capacities have
already been installed, while 29.4 GW RE contracts are awaiting full development. Some capacities are
for own-use of the project developer totaling 186.4 MW from 62 projects.
Table 35. SUMMARY OF RE PROJECTS UNDER RE ACT OF 2008 (As of 31 DECEMBER 2020)
Resources No. of Projects Potential Capacity Installed Capacity
Commercial Own-Use Commercial Own-Use Commercial Own-Use
Hydropower 416 2 11,574.75 1.56 1,102.27 -
Ocean Energy 8 - 24.00 - - -
Geothermal 32 - 761.20 - 1,928.69 -
Wind 76 1 3,524.28 - 442.90 0.01
Solar 274 37 13,282.88 8.35 1,083.19 6.43
Biomass 64 22 175.43 - 619.30 170.02
Sub-total 870 62 29,342.54 9.91 5,176.35 176.46
Grand Total 932 29,352.45 5,352.81
Figure 35 shows the plotted maps indicating the locations of the existing RE Service Contracts (SCs)
for exploration and development. Some projects are already in operation, while others are still under
pre-development stage. The full-page illustrations of the RE Maps for each technology are shown in
Annexes 3 to 7 for better appreciation.
Figure 35. MAPS OF EXISTING RESCs (As of December 2020)

ENERGY ROADMAPS
Policy Issuances. The establishment of enabling policies and market support mechanisms facilitated
the rapid deployment of renewables in the country’s energy landscape. Prospective RE developers
continue to avail of the fiscal incentives as provided in Section 15 of the RE Act. Among the incentives
include:
▪ Income tax holiday for the first seven (7) years of the entity’s commercial operations;
▪ Duty-free importation and special realty tax rates on RE machinery, equipment and materials
within the first 10 years;
▪ Net Operating loss carry-over;
▪ Zero percent Value-Added Tax (VAT) rate for the sale of fuel or power generated from
renewable sources;
▪ Cash incentive for missionary electrification, where RE developers shall be entitled to cash
generation-based incentive per kilowatt-hour (KWh) rate generated;
▪ Tax Exemption on carbon credits, wherein all proceeds from the sale of carbon emission credits
shall be exempt from any and all taxes; and
▪ Tax credit on domestic capital equipment and services.
Apart from these provisions, the DOE has been prioritizing the completion of all non-fiscal incentives
stipulated under the RE Act. The issuance of the Renewable Energy Market (REM) Rules 97 marked
the conclusion of the policy mechanisms
provided under the RE law. The REM Rules
establishes the market for the trading of RE
Certificates (RECs) between and among trading
participants. It also prescribes the required
processes for the orderly implementation of the
Renewable Portfolio Standard (RPS) Rules for
both on- and off-grid areas. The Philippine
Renewable Energy Market System (PREMS)
was also launched98 to serve as the online
platform to effectively manage the REC accounts
of the trading participants. PREMS development,
testing, and deployment as well as the Software
Certification Audit and Vulnerability Assessment
and Penetration Testing (VAPT), have already
been completed. However, the Department
Circular (DC) declaring the commercial
operations of the REM is yet to be issued, subject
to the completion of the critical criteria of the
REM Readiness Checklist.
97
DC 2019-12-0016 issued on 04 December 2019
98
17 December 2019

ENERGY ROADMAPS
The Guidelines Governing the Conduct of Green

Energy Auction Program99 (GEAP) was issued Green Energy Option Program
on 14 July 2020 to provide additional market
options by auctioning 2,000 MW renewable
capacities from qualified RE suppliers and to
promote a competitive setting of RE supply in the
country. This supports RE generators in securing
Power Supply Agreements and selling their
energy through the establishment of a fair
baseline price.
Enabling the Green Energy Option Program

(GEOP) provided end-users the option to choose
renewable resources as their source of energy.
GEOP is a voluntary policy mechanism that
allows end-users with 100-kilowatt (kW) and
above demand to source their electricity supply
from RE Suppliers. On 22 April 2020,100 the rules
and procedures in the issuance, administration,
and revocation of GEOP Operating Permits of RE
suppliers were issued. As of 30 June 2021, 13
RE suppliers are already granted GEOP
Operating Permit. The full Implementation of the
GEOP is expected to be rolled-out with the
issuance of the Regulatory Framework by the
Energy Regulatory Commission (ERC) on 22
April 2021.
The energy sector has put forward in

changing the perspective on renewables,
from grid-centered to consumer-
centered approach, making the fruits
of RE development more distributed
across all sectors of society. Enhanced Net-Metering
The DOE also worked on empowering the Program
consumers to become prosumers (consumers
and producers). Through the Net-Metering
Program (NMP), end-users can install up to
100-kW RE systems to reduce their electricity
bills and sell the surplus to the grid. The
amended net-metering rules101 issued on 22
October 2020, simplifies the processing
timeline, and reduces soft installation costs for
prosumers. With the enhancement of the
program, net-metering will now be open in off-
grid areas thereby providing demand-side
management for electricity end-users. As of
May 2021, a total of 4,118 qualified end-users are now registered under the NMP with a total capacity
of 33.21-megawatt peak (MWp).
99
DC 2020-07-0017
100
DC 2020-04-0009
101
DC 2020-10-0022

ENERGY ROADMAPS
Open and Competitive Selection Process (OCSP). Another mechanism that encourages greater
utilization of renewable resources is the regular conduct of OCSP. The OCSP facilitates project
development by offering well-characterized RE sites to project developers. A complementing policy
guideline (through a DC) was issued on 20 October 2020 governing the conduct of the 3rd OCSP in the
awarding of RE SCs.102 The DC
allows 100.0 percent foreign
ownership of large-scale geothermal
exploration, development, and
utilization projects with an initial
investment cost of about USD 50
million capitalization through the
Financial and Technical Assistance
Agreements (FTAAs).
During the launching of OCSP3 on

05 January 2021, 22 Pre-Determined
Areas (PDAs) comprising of 17 hydro
and five (5) geothermal projects
(Figure 36) with an aggregate
capacity of 155.4 MW were offered
to RE developers. This enabled the
submission of 13 bid applications for
the development of 11 PDAs – three
(3) geothermal and eight (8)
hydropower resources. Technical
evaluation of the submitted bid
documents was completed and
currently awaiting the awarding of RE SCs.
Figure 36. GEOTHERMAL OFFERED AREAS
102
DC 2020-11-0024

ENERGY ROADMAPS
2. Created a Favorable Business Setting
Improving the regulatory framework that streamlines bureaucratic processes has been one of the
primary thrusts of the DOE to facilitate the expeditious development of renewable projects. The issuance
of the Omnibus Guidelines Governing the Awarding and Administration of RE Contracts and the
Registration of RE Developers103 enabled the non-issuance of RE contracts for RE projects intended
for own- use and/or for non-commercial uses.
The DOE also issued the Guidelines on the Duty-Free Importation104 on 13 February 2020, governing
the processing and approval of application for Certificate of Endorsement (COE) on duty-free
importation of machinery, equipment, materials, and spare parts used for RE operations. This includes
application of COE involving temporary exportation, sale, transfer, assignment, donation or other modes
of disposition of originally imported capital equipment/machinery including spare parts brought into the
RE facilities by the developer/operator, which availed of duty-free importation.
The ongoing allocation entitlement of Feed-in-Tariff (FiT) scheme for run-of-river (ROR) hydropower
has been extended with the issuance of DOE advisory on 23 December 2020. The implementation of
the FIT scheme offered a guaranteed fixed rate payment on a per kilowatt-hour (kWh) for electricity
sales of qualified renewable energy producers. As of 31 March 2021, a total of 1.3-GW capacity from
the targeted 1.4 GW has been installed under the FIT System. The two-year extension given by the
government after its expiration in 2017 has completed the installation targets for wind, solar and biomass
technologies. However, the remaining FIT scheme for 103.9 MW run-of-river hydro has been extended
until fully subscribed (Table 36).
Table 36. FIT INSTALLATION TARGETS AND FIT RATES (as of March 2021)
Installation ERC Approved With Certificate of Installation
Resources
Target FIT Rates Endorsement to ERC Target Balance
No. of
Capacity (MW) PhP/kWh Capacity (MW) Capacity (MW)
Projects
Hydropower 5.90 5 34.60
250 5.8705**** 1 8.50 103.89
TBD 9 103.01
Wind 200 8.53 3 249.90
0
200* 7.40** 3 144.00
Solar 50 9.68 6 108.90
0
450 8.69** 17 417.05
Biomass 6.19**** 12 117.35
250 6.5969*** 4 14.56 0
TBD 15 125.13
Ocean 10 Deferred - - -
Total 1,410.00 75 1,323.01 103.89
* Additional Installation Targets
** FIT rates for the respective additional installation targets (W - ERCRes14,s2015; S - ERCRes6,s2015)
*** Degressed FIT rates (H&B – ERCRes1,s2017)
**** FIT rates per ERC Resolution No. 6, Series of 2021 published on 28 May 2021
3. Established a Reliable and Efficient Infrastructure
In a bid to enforce operational safety and security measures in the RE sector, the DOE crafted the
Renewable Energy Safety, Health and Environment Rules and Regulations (RESHERR) Code of
Practice. The RESHERR Code of Practice shall set internal and external operational safety guidelines
for all RE facilities. It also contains provisions addressing environmental concerns, such as air, land and
water pollution resulting from RE activities.
103
DC 2019-10-0013 issued on 01 October 2019
104
DC 2020-02-0005

ENERGY ROADMAPS
On 11 June 2021, Secretary Alfonso G. Cusi signed the DCs

espousing the Safety, Health and Environment Code of Practice
for all RE technologies, including Geothermal (DC 2021-06-
0016), Hydropower (DC 2021-06-0017), Solar (DC 2021-06-
0018), Wind (DC 2021-06-0019) and Biomass (DC 2021-06-
0020). The Code also serves as guidelines for RE developers in
conforming with the Energy Resiliency Compliance Plan, which
institutionalizes national adaptive standards against human-
induced and natural disasters.
4. Promoted and Enhanced Research, Design and

Development Agenda
The commencement of Philippine Geothermal Resource Inventory and Assessment Project

(PGRIA) was able to identify six (6) geothermal prospect areas, which include: (1) Buguias-Tinoc
geothermal field in Benguet and Ifugao; (2) Tuba-Pugo geothermal field in Benguet and La Union; (3)
La Trinidad-Tublay-Kibungan geothermal field in Benguet; (4) Mt. Sembrano geothermal field in Rizal;
(5) Coron geothermal field in Palawan; and (6) Mati-Lupon-Tarragona geothermal field in Davao
Oriental. The 2G surveys of these areas, which include geological investigations and geochemical
surveys, were completed in 2019. Further geophysical studies were performed in two (2) areas, Mt.
Sembrano, Geothermal Field and Buguias-Tinoc Geothermal Field, following the favorable results of the
2G surveys. Once the geothermal resources from these prospects are delineated, these can be offered
to investors for energy exploration, development and utilization through the OCSP.
5. Espoused RE Programs and Projects
Aside from implementing policies, the

DOE also formed partnerships with
other government agencies and
private institutions in mainstreaming
RE development across all economic
sectors. Apart from increasing RE
utilization, these partnerships aim to
support the livelihood of farmers,
fishermen and energy consumers in
the remote communities.
A Memorandum of Agreement (MOA)

was signed on 06 August 2020 with
the Department of Agriculture (DA) to
develop and implement a
comprehensive Renewable Energy
Programs and Projects for the
Agriculture and Fisheries Sector
(REP-AFS) as part of the National Renewable Energy Program and Food Security Program. The
collaboration hopes to boost the country’s energy and food security. Among the benefits of utilizing
renewable and other farm-based energy resources for agriculture and fisheries is the reduction of the
production cost of agri-fishery products.
The European Union – Access to Sustainable Energy Program (EU-ASEP) promoted the Productive
Uses of RE (PURE). The program aims to increase household incomes through RE micro-business thus
improving the farmer’s capacity to pay for electricity services provided by Electric Cooperatives (ECs).
Three (3) projects have been completed which benefitted 275 households, as follows:

ENERGY ROADMAPS
▪ Project on Abaca Spindler in

Sitio New Mabuhay, Malita,
Davao Occidental (benefitting
136 households);
▪ Project on Corn Sheller/Miller

and Biomass Dryer in Sitio
Mahayag, Don Marcelino,
Davao Occidental (benefitting
104 households); and,
▪ Rice Post-Harvest Processing

in Sioasio, Sual, Pangasinan
(35 households).
The USD 5.2 million grant for the

Development for Renewable Energy
Applications Mainstreaming and
Market Sustainability (DREAMS)
Project from the Global Environment
Facility (GEF) and United Nations
Development Programme (UNDP)
facilitated the commercialization of the
RE market and eased the barriers to
increase investment in renewable-
based power generation projects. The Figure 37. 25 CANDIDATE CREZs
project has been extended up to 2023.
Among the major projects of DREAMS is
the Support Facility for Renewable
Energy (SF4RE) Project with USD 1.0
million allotted funding assistance, which
was launched on 14 August 2020 to spur
the installation of RE facilities in far-flung
communities with economic potential. As
of 2020, PhP24.0 million of RE projects
were approved benefitting around 2,000
households. These cover the installation of
Solar PV powered portable water system in
Goa, Camarines Sur serving around 842
households, while the Provincial Hospital of
Iloilo will also be equipped with Solar
photovoltaic (PV) systems to ensure the un-
impaired operation of its primary laboratory
facilities during natural calamities and
power outages.
The DOE also entered into a partnership

with the United States Agency for
International Development (USAID) and the
U.S. Department of Energy’s National
Renewable Energy Laboratory (NREL) for
technical support in the development and
implementation of the Competitive
Renewable Energy Zones (CREZs)
process, which supports investments in large-scale transmission expansions/upgrades to accelerate the
utilization of the country’s indigenous renewable resources. Completion of Phase 1 of the CREZ project
was able to identify 25 Candidate CREZs (Figure 37) across the Philippines with an estimated gross

ENERGY ROADMAPS
capacity of 152 GW of new wind and solar PV. The zones also include an estimated 365 MW of
geothermal, 375 MW of biomass, and over 650 GW of hydropower capacity distributed across the
Luzon, Visayas and Mindanao systems.
The DOE has continuously conducted inventory and assessment of the country’s RE resources. Apart
from the PGRIA project, the DOE also led the implementation of the Wind Resource Assessment
Project (WRAP). The WRAP intends to address the gaps of the country’s wind database which can be
utilized by developers, implementers, regulators and policymakers in the conceptualization, design,
implementation, evaluation, planning and policy formulation of relevant to wind energy projects. The
DOE was able to monitor and assess the meteorological mast (Met Mast) in the following sites:
1. Brgy. Malasin, San Jose City, Nueva Ecija;

2. Brgy. East Poblacion, Pantabangan, Nueva Ecija;
3. Brgy. Malacapas, Dasol, Pangasinan;
4. Brgy. Ibis, Bagac, Bataan;
5. Brgy. Puro, Magsingal, Ilocos Sur;
6. Brgy. Pandan, Cabusao, Camarines Sur;
7. Brgy. Happy Valley, San Isidro, Northern Samar;
8. Brgy. Mahawan, Kananga, Leyte; and,
9. Brgy. Centro Norte, Culasi, Antique.
PLANS AND PROGRAMS
Renewable Energy continues to play an essential part of the government’s low emission development
strategy in addressing the challenges of climate change, energy security and access to cleaner energy.
Recognizing such crucial role, the DOE constantly works on setting aspirational targets, pushing
stakeholders to respond to the call for cleaner, sustainable energy, and ensuring equitable access to
affordable energy.
National Renewable Energy Program 2020-2040
The National Renewable Energy Board (NREB) has been responsive to the government’s energy
transition bid with the updating of the National Renewable Energy Program (NREP) 2020-2040. Aligning
with the thrust of the Philippine Energy Plan (PEP), the
NREP works on providing a cost-sensitive, as well
as demand-responsive national RE program.
The aspirational target set in the NREP

2020-2040 adheres to the RPS goal of
at least 35.0 RE percent share in the
total generation mix by 2030 and
looking further at achieving greater
than 50% share by 2040.
To achieve these goals, the NREP

recommends the adoption of other
measures to allow for higher RE
penetration in the system to usher in
energy transition.
The NREP deems it necessary to

increase the mandated 1.0 percent RPS
starting 2023 to allow entry of new
renewable capacities in the system and meet the
aspirational 35 and 50 percent RE share in the total
power generation mix.

ENERGY ROADMAPS
RE Roadmap
The DOE has been providing holistic and cutting-edge policy approaches to reflect the transformative
changes induced by the energy transition in the energy sector, economy and society. Supportive of the
NREP goal, the implementing RE roadmap (Figure 38) draws together the directions and deliverables
required to spur the growth of renewables in the country’s energy system.
Figure 38. RE ROADMAP
1. Accelerating RE positioning
The DOE continues to work on the timely implementation of all the policies afforded by the RE Act, as
well as supporting programs that would elicit RE expansion. Underlying activities for the medium-term
include: (1) Implementation support for the CREZ project; (2) Roll-out of Enhanced NMP in Off-Grid
areas; (3) Implementation of GEAP; (4) Roll-out for GEOP; (5) Crafting of policy on RE Contingency
Supply Augmentation Program (Rooftop Solar Program); and, (6) study on Off-Shore Wind
Development.
Completion and publication of the Net-Metering Guidebook will also provide guidelines, standards, and
procedures for all net-metering arrangements from “Offer to After-Sales Services” by the installers and
practitioners in collaboration with USAID Clean Power Asia (CPA) and C40 Cities Finance Facility (CFF).
Continued assessment of the country’s RE resources and the regular conduct of OCSP will provide the
private sector the needed push to further accelerate the development and utilization of renewables.
These efforts are in conjunction with the continued collaboration with the Development Partners for
Knowledge Exchange in promoting sustainable RE development. Some of the established partnerships
are shown in Figure 39.

ENERGY ROADMAPS
Figure 39. RE DEVELOPMENT PARTNERS
RE Development Partners
Likewise, the DOE is partnering with other government agencies to widen the coverage of RE
implementation. The MOA between the DOE and DA commenced the formation of the RE program for
the Agriculture and Fishery Sector. This is expected to provide beneficial gains to the livelihood of the
local farmers and fishermen. Similar MOAs/Joint Circulars are also in the works with the Department
of Trade and Industry (DTI) on the development of renewable energy technology standards,
Commission on Higher Education (CHED) for the inclusion of renewable energy courses, Department
of Education (DEPED) on energy syllabus, Technical Education and Skill Development Authority
(TESDA) on human development, and with the Department of Labor and Employment (DOLE) on human
development/job opportunities.
2. Building a Conducive Business Environment
Building a favorable market condition continues to be a challenge to entice greater investments on

renewables. A whole-of-government approach is needed to be engaged to facilitate improvement on
regulatory procedures. As such, the DOE will ensure the compliance to the Energy Virtual One-Stop
Shop (EVOSS) Act, Ease of Doing Business (EODB) Act of 2018, Executive Order (EO) 30105,
Administrative Order (AO) 23106 and Energy Application Monitoring System (EAMS) in the
implementation of RE projects.
Apart from harmonizing bureaucratic procedures, the DOE has secured funding support from the World
Bank Group’s Energy Sector Management Assistance Program (WBG-ESMAP) for the development of
Philippine Offshore Wind Roadmap Project. The project aims to identify areas in the Philippines with
high potential for offshore wind development, as well as formulate strategies to successfully integrate
wind in the government’s RE portfolio and set forth recommendations on policies that are necessary to
foster a conducive business environment for offshore wind investors. Early estimates indicated that the
Philippines has relatively vast potential for offshore wind. This has been demonstrated with the awarding
of five (5) Wind Energy Service Contracts (WESC) for offshore wind with combined potential capacity
of 5 GW, which include: (1) Guimaras Strait Wind Power Project (WPP), (2) Aparri Bay WPP, (3)
Guimaras Strait II Wind Project, (4) Frontera Bay WPP, and (5) San Miguel Bay WPP.
Other projects that are in the works include the conduct of a study for the implementation of Expanded
Rooftop Program, development of a Roadmap for Concentrating Solar Thermal Power (CSP) and Micro
hydro market (on- and off-grid) development.
105
Signed in June 2017 creating the Energy Investment Coordinating Council (EICC) to improve transparency and shorten the processing
of the required permits/clearances/certificates for energy projects.
106
Issued on 27 February 2020 to eradicate overregulation and improve the government system in delivering services to the people.

ENERGY ROADMAPS
3. Establish a Reliable and Efficient Infrastructure
As the DOE pushes more safety measures in the RE sector, effective implementation of RESHERR Code
of Practice will be enforced for all RE facilities. This is to ensure adequate safety and protection against
the hazards to health, life, property, as well as pollution of air, land and water are being observed in RE
operations.
Corresponding policy guidelines for all RE technologies (geothermal, hydropower, solar, wind and
biomass) will also be disseminated to provide better appreciation on the general safety guidelines,
workplace safety monitoring and control, requirements needed for electrical work, demolitions, and the
precautionary measures in dealing with hazardous, flammable, and explosive materials.
The DOE will also monitor the compliance of RE facilities on their approved work programs and project
design. Developing a standard for solar technology and issuance of Dam Safety Guidelines will be a
major undertaking for the medium-term.
4. Promoting and Enhancing Research, Design and Development Agenda
The recent improvement and marketability of binary power systems using organic rankine technology
has made low temperature geothermal resources suitable for power generation, agro-industrial and
direct application. Hence, further studies and detailed assessment of possible areas for the development
of low-to-medium temperature geothermal resources have continuously been explored by the DOE.
Also in the drawing board is the conduct of studies on emerging biomass feedstock. Common biomass
technologies used in the Philippines include the use of bagasse as boiler fuel for cogeneration, rice and
coconut husks dryers for crop drying, biomass gasifiers for mechanical and electrical applications,
fuelwood and agricultural wastes for oven; and furnaces and cooking stoves for cooking and heating
purposes.
The rising awareness on the benefits of renewables coupled with an enabling environment for the
development of a sustainable RE market have demanded greater investment opportunities in the
country. As the government is shaping towards clean energy transition, about 65.0 percent (REF) and
80.0 percent (CES) of the total additional required power generating capacity over the planning period
will come from renewables, equivalent to 45.6 GW and 73.9 GW, respectively. Under the CES,
renewables capacity addition is 62.0 percent higher than the REF.
Table 37. SUMMARY OF INVESTMENT COST UNDER PRE-DEVELOPMENT STAGE

Resources Jobs Generation
Addition (MW) (PhP Million) *
REF CES REF CES REF CES
Geothermal 480 480 4,351 4,351 2,240 2,240
Hydro 11,647 16,397 11,647 16,397 17,471 24,596
Biomass 306 486 15 24 306 486
Solar 31,571 45,118 1,602 2,290 5,788 8,272
Wind 1,584 11,387 312 2,242 634 4,555
Total 45,588 73,868 17,927 25,304 26,439 40,149
Note: Although biomass and solar are only required to secure operating contract, pre-development activities are still
needed, such as the conduct of feasibility study and securing of permits.
*Average pre-development investment cost per technology based on the service contracts issued.
The entry of more RE capacities is expected to generate total pre-development investments of PhP17.9
billion in the REF, while the CES necessitates around 40.0 percent additional investment (from REF)
amounting to PhP25.3 billion. These investments can provide estimated job opportunities to 26,439
(REF) and 40,149 (CES) Filipinos.

ENERGY ROADMAPS
D. POWER DEVELOPMENT
Significant reforms in the power sector are fundamental to the country’s stride towards economic
development and the realization of AmBisyon Natin 2040. The reforms achieved in a span of two (2)
decades and the liberalization of the electric power industry are envisioned in Republic Act (RA) 9136
or the Electric Power Industry Reform Act (EPIRA) of 2001.
In 2020, the unprecedented impact of COVID-19 served as a testament that the delivery of electricity
service remained uninterrupted despite the challenges brought by the pandemic. The predicament the
country was facing not only highlighted the power sector’s significance, but it also transformed the
industry to being more attuned to the needs of the nation and the people.
As the country is undergoing an energy transition to low carbon energy future, there is a need to
harmonize economic growth and sustainability. The power system which produces electricity and
serves as a conduit to progress should gradually and seamlessly shift towards becoming more balanced,
flexible, and sustainable.
I. EXISTING POWER SYSTEM

The Philippines being archipelagic is defined by an electricity network that is divided into grid and off-
grid. Luzon, Visayas, and Mindanao represent the three (3) main grids but only Luzon and Visayas are
interconnected. Mindanao remains as an independent grid and its interconnection will come into
realization once the Mindanao-Visayas Interconnection Project (MVIP) is completed by 2022.
The off-grid power system is characterized by missionary areas as these are not yet connected to the
main grid. The provision of electricity supply in off-grid areas is carried out by three (3) entities –
National Power Corporation (NPC) for the small islands and isolated grids (SIIGs), the privately-owned
New Power Providers (NPP) for the larger off-grid areas, and Qualified Third Party (QTP) for remote
and far-flung areas.
Main Grid. The impact of COVID-19 was apparent in the country’s peak demand107 particularly in the
main grid. The recorded peak demand of 15,282 megawatt (MW) in 2020 indicated a decline of 1.9
percent from the previous year’s level of 15,581 MW. The drop was attributed to the restricted
operations of industries supporting the economy and the government’s imposition of community
quarantine throughout the country.
In terms of electricity sales, the residential and industrial sectors were the largest users comprising 41.0
percent and 31.0 percent of the 81,956 GWh of total electricity sales, respectively. Commercial sector
consumption accounted for 25.0 percent while others108 was only 3.0 percent of total.
The installed and dependable capacity from 261 generating companies (GenCos) increased to 25,663
MW (up by 2.8 percent from 25,006 MW in 2019) and 22,954 MW (up by 3.0 percent from 22,397 MW
in 2019), respectively, in 2020. Gross generation reached 100,138 gigawatt-hour (GWh) with coal as
the dominant fuel for power generation contributing 58.0 percent. Renewables contributed 21.0 percent
and natural gas 20.0 percent, while oil-based roughly supplied 1.0 percent.
Serving as link between generation and distribution is the transmission system with a total substation
capacity of 40,051 Megavolt-Ampere (MVA) and a total transmission line length of 22,111 circuit-
kilometers (ckt-km). The main grid’s transmission system remains a government asset and is owned by
107
Non-coincidental peak demand is the aggregate peak demand of the grids which may or may not be at the same time in a year.
108
Electricity used by public buildings and streetlights.

ENERGY ROADMAPS
the National Transmission Corporation (TransCo). The National Grid Corporation of the Philippines
(NGCP) operates and maintains the transmission system through a concession agreement109.
Delivery of electricity to the end-users is the responsibility of the distribution sector. In 2020, there are
126 distribution utilities (DUs) in the main grid. The National Electrification Administration (NEA)
oversees the operation of the 100 Electric Cooperatives (ECs), while the 24 Private Investor-Owned
Utilities (PIOUs) and Enerzones110 including the two (2) LGU-Owned Utilities (LGUOUs) directly report
to the DOE.
Figure 40 shows the related grid and off-grid statistics of the power sector.
Figure 40. EXISTING POWER SYSTEM
Note: The 2020 total installed capacity (grid and off-grid) reaches 26,286 as of July 2021. This varies from what is reflected in the Energy Supply and Demand Outlook
Chapter (Table 78, p. 182 and Table 84, p. 192) due to the addition of 36 MW biomass.
Off-Grid. In 2020, the total installed and dependable capacity of existing power plants in off-grid areas
rose to 623.0 MW (from 526 MW in 2019) and 456.5 MW (from 419 MW in 2019), respectively. The 322
operating power generation facilities in missionary areas are owned, managed, and operated by NPC
(276), NPP (35), DU (4) and QTPs (7). Gross power generation in these areas reached 1,618 GWh with
oil being the major source of fuel at 91.0 percent. The remaining 9.0 percent came from renewable-
based plants.
The transmission system including the substation assets in off-grid areas are owned, managed, and
operated by the NPC-Small Power Utilities Group (SPUG). The total transmission line length and
substation capacity in 2020 reached 1,044 ckt-km. and 190 MVA, respectively.
Like the main grid, the NEA supervises the 21 operating ECs in off-grid areas, while the DOE oversights
the operation of the single multi-purpose cooperative (MPC) and three (3) LGUOUs that serve as local
DUs in the SIIGs. Electricity sales stood at 1,287 GWh with the residential sector accounted for 61.0
percent of total and closely followed by commercial at 21.0 percent.
II. GENERATION
Performance Assessment and Audit (PAA) for Power Sector System. The DOE’s PAA policy111 in
2017 was driven by the goal of achieving higher standards for power service delivery in the country. In
109
The Concession Agreement with NGCP is for 25 years and can still be renewed for another 25 years as contained in Republic Act (RA)
9511 or the NGCP Franchise Law signed on 1 December 2008.
110
Enerzones are duly authorized entities operating within economic zones.
111
Department Circular (DC) 2017-12-0006 titled “Adopting the Guidelines for the Performance Assessment and Audit of All Power
Generation, Transmission, and Distribution System and Facilities” issued on 28 December 2017.

ENERGY ROADMAPS
2020, a series of virtual public consultations were conducted (9 June, 1 and 3 July) on the draft policy
entitled “Adopting General Guidelines for the Conduct of Performance Assessment and Audit for
Electric Power Industry Participants”. The policy objective is to establish a comprehensive and
sustainable mechanism to confirm and validate the electric power industry’s compliance and lay down
the process of accreditation of a third-party auditor. The PAA implementation during the pandemic
entailed the DOE to send letters to various GenCos and DUs to conduct self-assessment on their
compliance to existing laws, policies, and resolutions.
Monitoring of Power Generation Projects. The development of power projects is critical to augment
the existing capacities and meet the future electricity demand of a growing economy. The DOE is closely
monitoring the progress of power generation projects to ensure their timely commissioning and
commercial operation.
The new generating capacities commissioned in 2020 totaled 642.6 MW as shown in Table 38. Coal
power plants comprised 82.0 percent (equivalent to 526.8 MW) of the new capacities, which are located
in Luzon (Zambales) and Mindanao (Lanao del Norte). Solar and oil-based plants accounted for 11.0
percent (70.9 MW) and 6.9 percent (44.6 MW), respectively. The additional solar power plant is located
in Luzon (Tarlac), while Visayas (Cebu) is the host of the new oil-based plant.
Table 38. LIST OF NEWLY COMMISSIONED POWER PLANTS IN 2020 (On-Grid)
Capacity (MW)
Facility Operator Location
Installed Dependable
Luzon 423.0 391.8
Coal 351.8 335.0
Masinloc Power
Masinloc U3 Masinloc, Zambales 351.8 335.0
Partners Co. Ltd.
Hydro 0.3 0.1
Philippine Power and San Pablo City,
Calibato 0.3 0.1
Development Company Laguna
Solar 70.9 56.7
Solar Philippines
Concepcion 2 Solar Concepcion, Tarlac 70.9 56.7
Tarlac Corporation
Visayas 44.6 40.7

Oil 44.6 40.7
Therma Power
TPVI DPP Naga, Cebu 44.6 40.7
Visayas, Inc.
Mindanao 175.0 158.0

Coal 175.0 158.0
GNPower GNPower Kauswagan Kauswagan, Lanao del
150.0 138.0
Kauswagan U4 Ltd. Co. Norte
Powersource
Brgy. Kiwilan, Iligan
PSPE Philippines Energy Inc. 25.0 20.0
City, Lanao del Norte
(PSPE)
Total 642.6 590.5
Power Generation Policies. Policy issuances that aim to enhance grid supply security and reliability
in both the short- and long-term planning horizons are crucial. Two (2) key policies were promulgated
in 2020, namely: Department Circular (DC) 2020-02-0004 titled “Providing Guidelines on the Planned
Outage Schedules of Power Plants and Transmission Facilities and the Public Posting of the Grid
Operating and Maintenance Program (GOMP)” issued on 6 February 2020; and the DOE-AGC-
20005580 titled “Advisory on the Moratorium of Endorsements for Greenfield Coal-Fired Power Projects
in line with Improving the Sustainability of the Philippines Electric Power Industry” issued on 22
December 2020.
The first policy stipulated that GenCos shall submit a three-year planned outage schedule to the NGCP
for the GOMP in accordance with the Philippine Grid Code (PGC), and only allows hydropower plants
to conduct power plant maintenance during the peak quarter (2nd Quarter or April – June). Further, the
NGCP was also directed to publicly post approved GOMP.

ENERGY ROADMAPS
On the other hand, the moratorium on coal power projects

is aligned with the energy sector’s direction towards the
ALERT LEVELS AND NOTICES
Clean Energy Scenario (CES). The advisory covers new
applications on coal power projects. It does not affect IN THE GRID
existing coal power plants with firm expansion plans,
NORMAL STATE
committed coal power projects, and indicative coal power
▪ Working within normal operating limits
projects with significant progress in securing the necessary
of System Frequency, Voltage, and all
permits.
transmission line and equipment
loading.
Luzon Power Outages (May 31 – June 2, 2021). During ▪ Operating margin is sufficient.
the second quarter of 2021 (particularly the period May 31 ▪ Grid configuration allows for
– June 2), Luzon grid was confronted with the problem of interruption and isolation of any fault
insufficient supply. The situation resulted in Luzon grid current.
being placed on red and yellow alerts by the System
Operator (SO). YELLOW ALERT
▪ Contingency Reserve is less than the
The lack or insufficient supply is ascribed to the planned capacity of the largest synchronized
outages, unplanned outages, and deratings of specific generating unit of the grid.
power plants. The total planned outage was equivalent to
RED ALERT
435 MW (San Roque Hydropower Units 1-3). For the
▪ Contingency Reserve is Zero.
unplanned outages, this ranged from 1,263 MW to 1,637
▪ Generation deficiency exists.
MW and include the coal power plants of GNPower, SEM-
▪ There is critical loading.
Calaca, Pagbilao, and Sual. Ilijan is the major power plant
with a derating that is equivalent to 484 MW because of the ▪ Imminent overloading of transmission
Malampaya gas restriction (from 1,200 MW, it had a lines or equipment.
declared capacity of 716 MW). To maintain balance in the ▪ May lead to Manual Load Dropping /
system, the NGCP as the SO implemented manual load Rotating brownouts.
dropping (MLD). This resulted in power interruptions in
some areas being served by the DUs in Luzon.
Source: Philippine Grid Code (PGC)
The DOE issued an Advisory on 21 June 2021 reiterating the implementation of the Ancillary Services
(AS) Policy112 in line with NGCP’s contracting of the required AS or power reserves. The issue and
concerns on the Ancillary Services Procurement Agreement (ASPA) of NGCP was highlighted in the
events of the Luzon power outages. Table 39 details the contracted AS capacities of NGCP for the
reserves – regulating, contingency, and dispatchable. The AS Policy clearly stipulates that NGCP shall
ensure full compliance and availability of the required AS levels and is mandated to have firm ASPAs in
accordance with the guidelines of the Energy Regulatory Commission (ERC).
Table 39. NGCP CONTRACTED AS CAPACITIES FOR RR, CR, AND DR (December 2020)
Regulating Reserve (RR) Contingency Reserve (CR) Dispatchable Reserve (DR)
Grid Contracted Contracted Contracted

Required Required Required
(MW) Firm Non- (MW) Firm Non- (MW) Firm Non-
Firm Firm Firm
% Firm % Firm % Firm
Luzon 491 237 48.27 525 647 180 27.82 395 647 145 22.41 806
Visayas 96 50 166 71 42.77 30 166 94 56.63 145
Mindanao 91 165 150 230 150 308
As a measure to avert any future events or situations on insufficient supply, the DOE will continue to
closely work with enforcement agencies – ERC, the Philippine Competition Commission (PCC), and
Department of Justice (DOJ). This ensures that unplanned, prolonged, and alleged malicious activities
of players in the industry are scrutinized, investigated, and penalized.
112
DC 2019-12-0018 titled “Adopting a General Framework Governing the Provision and Utilization of Ancillary Services in the Grid”

ENERGY ROADMAPS
PLANS AND PROGRAMS
Power Generation Roadmap Figure 41. POWER GENERATION ROADMAP
In this Plan update, the power

sector is looking at a new
approach in terms of carrying
out specific programs on its
revised roadmap. For the
generation sector, the newly
identified action plans replace
the previous action plans
specified in the PEP 2018-
2040 roadmap.
The threefold action plan for

the short-term (2021-2022)
are implementing the coal
moratorium, establishing
guidelines for power plant
decommissioning, and
firming-up privatization plan of
the government’s remaining
power generation assets. The
long-term (2023-2040) action plans are utilizing cleaner technologies in power generation and
increasing flexibility in power generation.
1. Implement the Coal Moratorium
The implementation of the coal moratorium is in congruence with the energy sector’s direction towards
the CES. The decision needs to be complemented by assessment and evaluation as the country is
slowly redesigning the power generation system to becoming more sustainable and flexible in
accommodating new, cleaner, and indigenous technological innovations.
2. Establish Guidelines for Power Plant Decommissioning
Decommissioning is not a common practice in the country as power plants can still run even after their
intended useful economic life or commercial operating life. Corollary to this, the DOE is set to conduct
studies and draft the guidelines to appropriately define, clarify, and direct the power industry on plant
decommissioning. In the long run, if such policy is implemented, the country stands to benefit as newer
capacities will come in providing greater security and reliability for the grid.
3. Firm-up privatization plan of government’s remaining power generation assets
The DOE as mandated under EPIRA will ensure the fulfillment and completion of the privatization of
the remaining NPC assets and Independent Power Producer (IPP) Contracts. Monitoring is also
carried out in the disposal of real estate properties, waste and junk materials, and other unserviceable
assets of the Power Sector Assets and Liabilities Management Corporation (PSALM).
The NPC-owned Agus-Pulangi Hydroelectric Power Plant (HEPP) complexes (currently undergoing
rehabilitation) is the remaining generating asset that is up for privatization. However, its privatization
is subject to consultation and approval of the Congress and the PSALM Board. On the IPP Contracts,
a study is underway on the options including the appropriate privatization structure for the Caliraya-
Botocan-Kalayaan (CBK) and Casecnan HEPP. The study completion is targeted by 2021, while the
sale and turnover to the winning bidder are set to commence by May 2022. In the case of the

ENERGY ROADMAPS
Mindanao Coal-fired thermal power plant, the start of sale activities and turnover to the winning bidder
is eyed by 2022.
The disposal of PSALMS’s real estate assets denotes that there are power plant lots for appraisal and
titling. These lots include the following: a) Masinloc Coal-Fired Thermal Power Plant; b) Panay Diesel
Power Plant; c) Batangas Coal-Fired Thermal Power Plant; d) Previous site of Manila Thermal Power
Plant; e) Puerto Azul Condominium Units and Club Share; f) Diliman Property; g) Magdalena Property;
h) Sudipen Property; i) Loboc Property; j) Calamaniugan Property; k) Mexico Property; l) General
Santos Property; m) Limay Housing Property; n) Bagac Property; o) Tiwi Geothermal Power Plant
Land; p) General Santos City Property; q) Paranaque Properties; r) Bataan Thermal Power Plant
(BTPP) Property; and s) Sucat Property.
4. Utilize cleaner technologies in power generation
Aside from the coal moratorium, the direction towards utilizing cleaner technologies in power generation
also adheres to the CES. The RE Act and its corresponding policy mechanisms and programs –
Renewable Portfolio Standard (RPS), Green Energy Auction Policy (GEAP), Green Energy Option
Program (GEOP), Net-Metering, etc. – are in place to support this action plan for the long-term.
Moreover, considering other technologies (e.g., nuclear and hydrogen) as options for power generation
blend well with the action plan.
5. Increase flexibility in power generation
Power system flexibility pertains to the ability of the system to reliably and cost-effectively manage the
variability and uncertainty of demand and supply across all relevant timescales from ensuring
instantaneous stability of the power system to supporting long-term security of supply.113
In the country’s power generation system, the move is to position natural gas plants as providers for the
intermediate or mid-merit supply requirements in the grid. It may be noted that mid-merit gas plants
are load-following plants wherein it can easily adjust its electricity production relative to demand
fluctuations.
Increasing flexibility also implies greater integration of variable renewables (VRE) – solar and wind.
Flexible power plants (e.g., gas turbines) have the capability to reduce electricity generation instantly
when production from VRE is at its highest. This results in reduction in VRE curtailment and the
maximization of the VRE’s operating capacity.
6. Monitor Implementation of Power Generation Projects
A continuing function and action plan of the DOE is to monitor the committed and indicative power
projects to facilitate their timely completion and provide the needed additional capacity for the grid. As
of December 2020, 40 committed power projects are listed with an aggregate capacity of 8,977.1 MW.
More than 90.0 percent of these capacities are in Luzon equivalent to 8,343.7 MW (Table 40). Coal
accounts for 47.2 percent of the committed power projects followed by natural gas with 39.0 percent.
Renewable-based committed projects comprise 9.4 percent with solar being the largest at 4.6 percent.
The DOE also monitors the 32 battery energy storage system (BESS) committed projects with an
aggregate capacity of 910.0 MW. These BESS projects are accounted for by the Department, however,
their capacity is not added to the total capacity of the committed power projects.
113
Source: International Energy Agency. 2019. Status of Power System Transformation [pdf]. Available at
https://www.iea.org/reports/status-of-power-system-transformation-2019.

ENERGY ROADMAPS
Table 40. SUMMARY OF COMMITTED POWER PROJECTS (as of 31 December 2020)

Luzon Visayas Mindanao Philippines
Rated Rated Rated Rated
Plant Type No. of No. of No. of No. of
Capacity Capacity Capacity Capacity
Projects Projects Projects Projects
(MW) (MW) (MW) (MW)
Coal 4 3,836.00 1 135.00 1 270.00 6 4,241.00
Oil-based 2 311.04 1 70.00 1 11.00 4 392.04
Natural Gas 3 3,500.00 0 0.00 0 0.00 3 3,500.00
Geothermal 4 90.00 1 50.00 0 0.00 5 140.00
Hydropower 16 52.90 2 23.10 4 68.30 22 144.30
Solar 8 408.57 0 0.00 0 0.00 8 408.57
Wind 1 132.00 0 0.00 0 0.00 1 132.00
Biomass 2 13.20 1 3.00 1 3.00 4 19.20
Total 40 8,343.71 6 281.10 7 352.30 53 8,977.11
There are 240 indicative power projects with an aggregate capacity of 33,398.5 MW. Luzon alone has
166 indicative projects with a total capacity of 27,754.0 MW (Table 41). Renewables constitute 62.0
percent of the total indicative projects or 20,713.3 MW. Solar comprises the highest share at 32.3
percent or 10,781.3 MW followed by hydropower at 16.4 percent or 5,473.6 MW. Also included in the
indicative projects are 20 BESS projects with a combined capacity of 412.5 MW.
Table 41. SUMMARY OF INDICATIVE POWER PROJECTS (as of 31 December 2020)

Luzon Visayas Mindanao Philippines
Rated Rated Rated Rated
Plant Type No. of No. of No. of No. of
Capacity Capacity Capacity Capacity
Projects Projects Projects Projects
(MW) (MW) (MW) (MW)
Coal 8 5,820.00 2 600.00 2 628.00 12 7,048.00
Oil-based 4 500.00 2 37.20 0 0.00 6 537.20
Natural Gas 3 5,100.00 0 0.00 0 0.00 3 5,100.00
Geothermal 1 120.00 2 76.00 1 30.00 4 226.00
Hydropower 73 3,830.00 20 789.70 19 853.89 112 5,473.59
Solar 56 9,983.63 6 460.63 9 337.00 71 10,781.26
Wind 18 2,378.40 9 1,814.00 0 0.00 27 4,192.40
Biomass 3 22.00 1 8.00 1 10.00 5 40.00
Total 166 27,754.03 42 3,785.53 32 1,858.89 240 33,398.45
III. TRANSMISSION AND SYSTEM OPERATION

Timely Completion of Transmission Projects. The timely completion and commissioning of
transmission projects is crucial to maintaining the stability of electricity supply across the country. From
2019 to 2020, the NGCP completed a total of 351.5 ckt-km of overhead transmission lines, installed
additional 4,100 MVA of substation capacities, and added 1,707.65 MVAR or reactive power for voltage
improvement (Table 42). The completion of these projects is expected to further improve the operation,
reliability, and integrity of the existing transmission system. The complete list and details of the
completed projects are provided in Annex 8.
Table 42. SUMMARY OF COMPLETED TRANSMISSION PROJECTS, 2019-2020

Transmission Line Substation Capacity Voltage Improvement
Grid Extension (CKT-KM) Upgrading (MVA) (MVAR)
2019 2020 2019 2020 2019 2020
Luzon 17 20.1 1,050 600 1,122.50 300
Visayas - 58 - 200 55 40
Mindanao 38 218.4 2,150 100 175 15
Sub-Total 55 296.5 3,200 900 1,352.5 355
Total 351.5 4,100 1,707.50
Source: Draft 2021-2040 TDP Final Report

ENERGY ROADMAPS
Apart from the right-of-way (ROW) issues, the imposition of strict lockdowns and movement restrictions
due to COVID-19 has caused changes in the timeline of project activities that led to the postponement
of several transmission projects. The list of delayed transmission projects that are expected to be
completed in 2020 is enumerated in Table 43 including the revised target completion dates.
Table 43. DELAYED TRANSMISSION PROJECTS IN 2020

Original Target Revised Target
Project Name
Completion Completion
Luzon
Calamba 230 kV Substation**** Jun 2020 Apr 2021
North Luzon Substation Upgrading Project* Nov 2020 Dec 2021
Luzon PCB Replacement**** Dec 2020 Mar 2021
San Jose–Angat 115 kV Line Upgrading* Jun 2020 Jun 2021
Mariveles–Hermosa 500 kV Transmission Line** Dec 2020 Oct 2021
Tiwi Substation Upgrading* Jun 2020 Dec 2021
Visayas
Cebu–Negros–Panay 230 kV Backbone Stage 1** Dec 2020 Dec 2021
Panitan–Nabas 138 kV Transmission Line 2 Project* Dec 2020 Aug 2021
Visayas Substation Reliability Project II* Jun 2020 Dec 2021
Sta. Rita–Quinapondan 69 kV Transmission Line**** Dec 2020 Jun 2021
Tagbilaran 69 kV Substation Project* Dec 2020 Sep 2021
Naga (Visayas) Substation Upgrading Project* Dec 2020 Dec 2021
Mindanao
Mindanao–Visayas Interconnection Project*** Dec 2020 Dec 2022
Notes: kV – kilovolt; PCB – Power Circuit Breaker
*Implementation Affected by COVID-19
** Implementation affected by COVID-19 and remaining ROW issues
*** Implementation affected by COVID-19, remaining ROW issues, and damaged fiber-optic cable
****Recently completed project
Table 44 provides the summary of the implementation status of transmission projects as of December
2020.
Table 44. SUMMARY OF TRANSMISSION PROJECTS

Project Initiator Project Implementation Stage Number of Projects
TransCo* Under Construction 1
NGCP Under Construction 58
Tendering 33
Pre-Construction 20
Total 112
*Transferred to NGCP
Source: Transmission Project Status Report
Interconnect the Three Major Grids. The DOE is keen to closely monitor the implementation of the
MVIP that will finally link together all three (3) major islands (Luzon, Visayas, and Mindanao) to create
“one country, one grid,” ensuring the sharing and optimization of energy sources in the country.
Deemed as the most critical transmission project, the MVIP was issued with a Certificate of Energy
Project of National Significance (CEPNS) in 2018. However, the project encountered delay due to
quarantine restrictions caused by the pandemic. This was further affected by the submarine fiber optic
cable,114 which was found to have been damaged based on the verification surveys done on 3-6
February 2021. From these incidents, the project completion has been extended to December 2022
from its initial target of December 2020. Table 45 shows the status of the project implementation.
114
350kV High-voltage direct current (HVDC) connection between Cebu and Zamboanga del Norte which was completed only on 15
November 2020. Source: https://pia.gov.ph/news/articles/1067486

ENERGY ROADMAPS
Table 45. STATUS OF MINDANAO-VISAYAS INTERCONNECTION PROJECT, December 2020

Project Components Status of Completion (%)
Submarine Cable Santader CTS-Dapitan CTS HVDC 81.38
Substation Dumanjug Converter Station & Substation 71.85
Lala Converter Station & Substation
Aurora Substation (3-138kV PCB)
Magdugo Substation (2-230kV PCB)
Dumanjug Substation Tendering Stage
Umapad GIS Substation
Transmission Line Dumanjug-Magdugo HVAC Transmission Line 75.25
Kauswagan-Lala HVAC Transmission Line 79.45
Aurora-Lala HVAC Transmission Line
Dumanjug-Santander HVDC OHTL 76.18
Lala-Dapitan HVDC OHTL
Alegria-Dumanjug Electrode Line 71.52
Kolambugan-Lala Electrode Line
Overall Accomplishment 30.85
Notes: CTS–Cable Terminal Station; PCB–Power Circuit Breaker; HVDC–High-Voltage Direct Current; HVAC–High-Voltage Alternating
Current; OHTL–Overheard Transmission Line
Power Plants Siting. To

Figure 42. IDEAL LOCATION OF POWER PLANTS, Luzon
maximize the capacity of
the existing transmission
networks and to serve as a
guide for power generation
investors, the NGCP
included in the
Transmission
Development Plan (TDP)
the recommended
connection points where
new power plants could be
strategically installed.
(Figures 42 to 44) The
most prominent factor in
selecting the optimal
location of power plants is
the available capacity of
existing substations to
accommodate new
generation capacity
additions without requiring
any major transmission
reinforcement.

ENERGY ROADMAPS
Figure 43. IDEAL LOCATION OF POWER PLANTS, Visayas
Figure 44. IDEAL LOCATION OF POWER PLANTS, Mindanao

ENERGY ROADMAPS
Grid Resiliency. The transmission sector has been taking measures to strengthen the ability of the grid
to withstand and appropriately respond from any calamities or widespread system disturbances that
may interrupt the continuous delivery of power. To build more resilience into the transmission grid, the
NGCP incorporated resiliency initiatives to its transmission planning process in support of the Resiliency
Policy115 issued by the DOE. The TDP now incorporates the resiliency plans and programs for the
transmission system by identifying several climate change adaptation measures, to include the asset
condition assessment and prioritization.
Enhance Policies Towards an Adequate and Reliable Grid. The DOE embarked to introduce and
promote new policies for reliable operation of the grid with utmost emphasis in mitigating supply
disruptions, while considering real-time changes in demand, intermittency of variable RE resources and
the entry of emerging technologies, including energy storage systems.
Given the increasingly crucial role of reserve capacity in maintaining the reliability and adequacy of the
power grid, the DOE is rigorously enforcing the implementation of the AS Policy 116 for the NGCP to fulfill
its obligation of providing sufficient levels of ancillary services117. At the height of the issues and
concerns on Luzon power outages last 31 May to 2 June 2021, the DOE issued an Advisory on 21 June
2021 directing the NGCP to fully comply with the AS Policy by procuring the required levels of AS
through firm-contracted arrangements by: (1) converting its existing non-firm contracts to firm contracts
within a 30-day period; (2) procure firm AS only through own competitive selection process (CSP); and
(3) procure firm AS once the DOE promulgated the CSP policy for AS, which is currently being finalized.
Supplementing the AS Policy is the DC 2020-05-0011118 issued on 11 May 2020, which designates the
TransCo as an additional member of the Ancillary Services – Technical Working Group (AS-TWG)119 to
further strengthen the policy making, operational, and technical capability of the body. Subsequently,
the Department Order (DO) 2020-06-0009120 was issued on 23 June 2020 providing the composition
and designation of the AS-TWG. The DOE and the Energy Regulatory Commission (ERC) co-chaired
the AS-TWG together with other relevant power industry stakeholders as members.
Another significant development in the transmission sector is the DOE’s issuance of the Implementing
Rules and Regulations (IRR) on 6 February 2020 through DC2020-02-002 for the Anti-Obstruction of
Power Lines Law121. This provides the prohibited acts, penalties for violations, and the roles of power
line operators and relevant government agencies to keep the power lines clear and free from any
obstructions and right of way issues. It aims to ensure the continuous and uninterrupted delivery of
electricity as well as to protect the integrity and reliability of power lines.
PLANS AND PROGRAMS
1. Improve the Transmission Development Plan
As part of their regular functions, the TransCo and NGCP shall continue improving the TDP formulation
by further enhancing its contents in light of the policy developments in the power sector.
Correspondingly, the plans, programs, and projects in the TDP must fully support the policy initiatives
of the government considering that it is an integral component of the Power Development Plan (PDP)
and the Philippine Energy Plan (PEP). Likewise, the DOE, through the TDP Composite Team, should
pursue the timely review, submission, and approval of the TDP.
115
DC 2018-01-001 or “Adoption of Energy Resiliency in the Planning and Programming of the Energy Sector to Mitigate the Potential
Impacts of Disasters”
116
DC 2019-12-0018 or “Adopting a General Framework Governing the Provision and Utilization of Ancillary Services in the Grid”
117
Ancillary Services (AS), as defined in the EPIRA. are services that are necessary to support the transmission of capacity and energy
from resources to loads while maintaining reliable operation of the transmission system in accordance with good utility practice and
the Grid Code
118
Supplementing Department Circular No. DC2019-12-0018 by Including the National Transmission Corporation in the Membership of
the Ancillary Services - Technical Working Group
119
Section 9 of the DC 2019-12-0018
120
Organizing the Creation and Composition of the Ancillary Services – Technical Working Group
121
Republic Act 11361

ENERGY ROADMAPS
2. Monitor the Timely Completion of Transmission Projects
The DOE is persistently committed to monitor and facilitate the timely completion of priority transmission
projects that are critical to maintaining optimality, reliability, adequacy, and security of the transmission
grid. Some of the transmission infrastructure development requirements include reinforcement and
extension of existing transmission backbones, expansion of substations, and island interconnections.
Among other projects Figure 45. POWER TRANSMISSION ROADMAP

identified in the TDP, the
DOE will give utmost
priority on the completion
of transmission projects
currently under
construction to meet the
demand growth, support
the entry of future
generation capacities
and enable market
competition. To
effectively monitor these
projects, the DOE has
been requiring the NGCP
to submit monthly project
status report, which
details the progress of
various project items, as
well as the status of
securing permits and
clearances. To lessen
delays caused by the
pandemic, the DOE
continues to assist the
NGCP by issuing endorsements allowing the entry of foreign technical personnel in the country, as well
as identification cards certifying NGCP personnel and contractors as essential workers. The DOE also
intervenes and coordinates with other government agencies, as necessary, to address right-of-way and
permitting issues.
2.1 Projects Under Construction in Luzon

Figure 46. TUGUEGARAO – LAL-LO (MAGAPIT) 230 kV TL
2.1.1 Tuguegarao – Lal-Lo (Magapit) 230 kV
Transmission Line (TL) Project
The project aims to address the imminent

overloading of the Tuguegerao–Magapit 69 kV
Line due to the forecasted load growth in the
northern part of Cagayan province. As of 31
December 2020, the transmission line and
substation portions are 53.6 percent and 86.7
percent complete, respectively. Due to the
impacts of pandemic, the expected completion
date of the project has been moved to March
2022. (Figure 46)

ENERGY ROADMAPS
2.1.2 Ambuklao–Binga 230 kV TL Figure 47. AMBUKLAO-BINGA 230 kV TL

Upgrading Project
The Ambuklao–Binga 230 kV Transmission

Line Upgrading project aims to enhance
the existing line in order to address its old
age condition and also to maintain the N-1
contingency provision taking into
consideration the repowering of Ambuklao
Hydroelectric Power Plant (HEPP) and the
proposed generation capacity additions in
the Cagayan Valley area. As of 31
December 2020, the substation portion is
94.4 percent complete and is expected to
be finished by November 2021. (Figure 47)
2.1.3 Binga–San Manuel 230 kV

Transmission Line Project
Figure 48. BINGA-SAN MANUEL 230 kV TL
This project aims to provide N-1
contingency during maximum dispatch of
the generating plants in north Luzon. The
project also considers the repowering of
Ambuklao HEPP, completion of Binga
HEPP, and the proposed generation
capacity additions in the Cagayan Valley
area. As of 31 December 2020, the
transmission line portion is in Tendering
Stage for the preparation of its bidding
documents and the substation portion is
95.0 percent complete. Project’s target
completion date is November 2021.
(Figure 48)
2.1.4 San Manuel – Nagsaag 230 kV

Figure 49. SAN MANUEL-NAGSAAG 230 kV TL
The project aims to address the
overloading of the San Manuel– Nagsaag
230 kV tie line, Pantabangan–Cabanatuan
230 kV Line, and the Nagsaag 500/230 kV
transformer. As of 31 December 2020, the
transmission line portion is 100 percent
complete while the substation portion is
89.4 percent complete. The project is
expected to be completed in December
2021. (Figure 49)

ENERGY ROADMAPS
2.1.5 San Jose–Angat 115 kV Line Figure 50. SAN JOSE-ANGAT 115 kV LINE UPGRADING
Upgrading Project
The San Jose–Angat 115 kV Line

Upgrading Project aims to ensure the
reliability of the existing 115 kV
transmission lines connecting Angat
HEPP to the Luzon Grid. The 300 MVA
capacity per circuit of the project would be
sufficient to provide N-1 contingency
during maximum dispatch of the 246 MW
Angat HEPP. As of 31 December 2020, the
transmission line portion is 88.9 percent
complete and is expected to be finished
by December 2021. (Figure 50)
2.1.6 Western Luzon Backbone Stage 1

(Castillejos–Hermosa 500 kV
Transmission Line Project) Figure 51. WESTERN LUZON BACKBONE STAGE 1
(CASTILLLEJOS-HERMOSA 500 kV TL)
The Western Luzon Backbone (Stage 1:
Castillejos–Hermosa 500 kV Transmission
Line Project) pertains to the construction
of a transmission facility to connect the
2x300 MW RP Energy Coal-Fired Power
Plant (CFPP) to the Luzon Grid through
the Hermosa Substation. It is part of the
proposed long-term plan for 500 kV
backbone loop development from Bolo
(Kadampat) down to Hermosa Substation.
As of 31 December 2020, the transmission
line portion is 84.2 percent complete.
From December 2020, the target time of
completion was pushed to June 2022
because of the pandemic. (Figure 51)
2.1.7 Hermosa–San Jose 500 kV

Figure 52. HERMOSA - SAN JOSE 500 kV TL
The project will serve as a new 500 kV
corridor for the bulk power generation
coming from the existing Limay Combined
Cycle Power Plant (CCPP), Petron Refinery
Solid Fuel-Fired Boiler (RSFFB) Subic
Enron Diesel Power Plant (DPP), Mariveles
CFPP and the programmed generation
capacity additions which include RP
Energy CFPP and SMC CFPP. As of 31
December 2020, the transmission line
portion is 17.1 percent complete while the
substation portion is 36.5 percent
complete. The expected time of completion
of the project was adjusted from March
2021 to December 2021. (Figure 52)

ENERGY ROADMAPS
Figure 53. MARIVELES-HERMOSA 500 kV TL

2.1.8 Mariveles-Hermosa 500 kV
The project aims to allow the connection of

incoming generations in Bataan Peninsula,
which include 2x668 MW GN Power
Dinginin CFPP and 8x150 MW SMC
Consolidated Power Corporation CFPP.
This new backbone will form part of the
loop from Hermosa to Mariveles then to
Cavite/Metro Manila upon completion of
the future submarine cable. As of 31
December 2020, the transmission line and
substation portions are 79.4 percent and
24.9 percent complete, respectively. The
project was due to be completed in March
2021, but it was moved to October 2021
due to the pandemic. (Figure 53) Figure 54. CLARK-MABIGA 69 kV TL
2.1.9 Clark-Mabiga 69 kV Transmission

Line Project
The project aims to relieve the heavy

loading of the existing Mexico-Clark Lines
and address the low voltage issues in the
area. As of 31 December 2020, the
complete. On the other hand, the
transmission line portion is planned to be
re-routed as the proposed original route
was affected by the Malolos-Clark Railway
Project. Because of the pandemic, the
expected time of completion has been
moved from December 2020 to December
2021. (Figure 54)
Figure 55. NAVOTAS 230 kV SUBSTATION
2.1.10 Navotas 230 kV Substation
The project aims to cater the load growth

in Sector 1 of MERALCO and to serve as a
connection point for the Therma Mobile
Inc. and Millennium Power Plants. It will
also maintain the N-1 contingency
provision in Metro Manila. It will be initially
linked to the grid through cut-in connection
along the existing Marilao–Quezon 230 kV
transmission line and will ultimately
terminate in the future Marilao 500 kV
Substation. As of 31 December 2020, the
project is 88.8 percent complete. The
completion date was rescheduled from
June 2020 to March 2022 (due to the
pandemic). (Figure 55)

ENERGY ROADMAPS
2.1.11 Antipolo 230 kV Substation Figure 56. ANTIPOLO 230 kV SUBSTATION
The Antipolo 230 kV Substation aims to

accommodate the demand increase in
Sector 2 of MERALCO and maintain the
N-1 contingency provision for Taytay
Substation. As of 31 December 2020, the
status of the project’s components is as
follow: 1) Site Development is 62.38%
complete; 2) Erection of Primary
Equipment is awaiting the completion of
the site development; and 3) Secondary
Equipment is 65.8 percent complete. The
target completion date has been moved
from March 2021 to April 2022 (due to the
pandemic). (Figure 56)
2.1.12 Taguig 500 kV Substation Figure 57. TAGUIG 500 kV SUBSTATION
The Taguig 500 kV Substation intends to

alleviate the anticipated overloading of San
Jose EHV Substation and provide higher
level of reliability to the 500 kV system of
the Luzon Grid. It will also relieve the
criticality of the existing Quezon–
Muntinlupa 230 kV Line during N-1
contingency. As of 31 December 2020, the
overall accomplishment of the
transmission line and the substation
portion stands at 17.9 percent. The
expected time of completion has been
postponed to September 2022 as affected
by the pandemic. (Figure 57)
2.1.13 Pagbilao 500 kV Substation

Project Figure 58. PAGBILAO 500 kV SUBSTATION
The Pagbilao 500 kV Substation Project

will accommodate the connection of
incoming power plants in Quezon
Province. The Pagbilao Extra High Voltage
(EHV) Substation Project will address the
overloading of Tayabas 500/230 kV
transformers and the fault level issue at
Tayabas 230 kV Substation. As of 31
December 2020, the transmission line
portion is 85.0 percent complete, while the
complete. Due to the circumstances
brought about by COVID-19, the expected
completion date has been adjusted from
March 2021 to January 2022. (Figure 58)

ENERGY ROADMAPS
2.1.14 Tuy 500/230 kV Substation Figure 59. TUY 500/230 kV SUBSTATION

Project/Tuy-Dasmariñas 500 kV PROJECT/TUY-DASMARIÑAS 500 kV
The Tuy 500 kV Substation (Stage 1) aims

to accommodate the connection of the
2x350 MW SRPGC Coal Plant and allow full
dispatch of bulk generation capacity
addition in Batangas. The generation
capacity addition will turn Calaca
Substation into a merging point of more
than 2,000 MW of power generation. As of
31 December 2020, the NGCP has yet to
issue the Notice-to-Proceed for the
transmission line component, while the
substation component is already 59.7
percent complete. The movement
restrictions caused by the pandemic have
pushed the project’s completion from
December 2021 to March 2023. (Figure 59) Figure 60. TIWI 230 kV SUBSTATION
2.1.15 Tiwi 230 kV Substation Project
The project aims to upgrade the old and

deteriorated substation equipment at Tiwi A
and C Substations, augment the power
requirement of Malinao/Ligao Load-End
Substation and establish clear asset
boundaries within the Tiwi Geothermal
Power Plant Complex. As of 31 December
2020, the erection of primary equipment is
already 36.7 percent complete, while the
secondary equipment is at 91.9 percent.
From its original completion date in
December 2020, it was revised to
December 2021 due to the impacts of
pandemic. (Figure 60)
2.1.16 Tower Structure Upgrading of Bicol Figure 61. TOWER STRUCTURE UPGRADING OF
Transmission Facilities BICOL TRANSMISSION FACILITIES
The restoration project aims to reconstruct

the affected transmission lines and towers
destroyed by Typhoon Nina in 2016. It will
provide permanent solution to address the
limitations of the emergency restoration that
made use of provisional light-weight modular
tower and steel pole structures. It will involve
the erection of 82 new steel tower structures,
which are in conformity with the required
design standards considering higher wind
design criteria. As of 31 December 2020, the
overall project completion stands at 98.6
percent. It is expected to be finished by July
2021.122 (Figure 61)
122
Completed and energized on 31 July 2021.

ENERGY ROADMAPS
Figure 62. BATANGAS-MINDORO INTERCONNECTION

2.1.17 Batangas-Mindoro
Interconnection Project
The proposed interconnection of Mindoro

Island with the Luzon grid will allow the
island to have access to bulk generation
sources in the main grid, while at the same
time, export possible excess power once
the generation potentials, including
renewable-based plants, within the island
have been developed. The nearest
connection point in the Luzon grid for the
planned island interconnection project is
the proposed Pinamukan 500 kV
Substation, while Calapan would serve as
the interconnection point in Mindoro Island.
As of 31 December 2020, the NGCP is still
awaiting the approval of the ERC to commence project implementation. (Figure 62)
2.2 Projects Under Construction in Visayas
2.2.1 Cebu-Negros-Panay 230 kV Figure 63. CEBU-NEGROS-PANAY 230 KV BACKBONE

Backbone Project – Stage 1 PROJECT – STAGE 1
The first stage of the backbone project

involves the development of high-capacity
transmission corridor between Negros and
Panay. It is consistent with the long-term
transmission master plan of having a 230 kV
transmission backbone in the Visayas by
establishing a 230 kV interconnection from
Panay to Cebu. As of 31 December 2020,
the project is 98.4 percent complete. The
completion date was moved from July 2020
to December 2021. (Figure 63)
2.2.2 Cebu-Negros-Panay 230 kV

Backbone Project – Stage 2
The Stage 2 Project involves the Figure 64. CEBU-NEGROS-PANAY 230 KV BACKBONE
construction of 230 kV facilities in the PROJECT – STAGE 2
existing Cebu 138 kV Substation and
harmonize its capacity with the 230 kV
transmission backbone to ensure the
effective full generation dispatch of new
power plant. As of 31 December 2020, the
project is 23.5 percent complete. Due to the
circumstances brought about by COVID-19,
the expected time of completion of the
project has been adjusted from December
2020 to December 2021. (Figure 64)

ENERGY ROADMAPS
2.2.3 Cebu-Negros-Panay 230 kV Figure 65. CEBU-NEGROS-PANAY 230 kV BACKBONE

Backbone Project – Stage 3 PROJECT – STAGE 3
The Stage 3 (last) of the project will ensure

the effective transmission of excess power
generation from Panay and Negros
towards Cebu. It involves the construction
of 230 kV facilities that will extend from
Panay to Cebu. The project, which is being
implemented in three (3) phases, is already
75.4 percent complete as of 31 December
2020. The expected time of completion has
been changed from December 2021 to
December 2022 as a result of the
continuing impacts of the pandemic.
(Figure 65)
2.2.4 Cebu-Bohol 230 kV

Interconnection Project
Figure 66. CEBU-BOHOL 230 kV INTERCONNECTION
An outage of the Leyte–Bohol 138 kV
Interconnection will cause power delivery
interruption towards the entire Bohol
Island. Such concern will be addressed by
the Cebu–Bohol 230 kV Interconnection
Project as it would significantly boost the
supply reliability in the island by having a
direct access to the bulk generations
located in Cebu. As of 31 December 2020,
NGCP is still awaiting the approval of the
ERC. The manufacturer’s drawings for the
Corella Substation component are already
subject for checking. The project is
expected to be completed in March 2022.
(Figure 66)
2.2.5 Cebu–Lapu-Lapu 230 kV

Figure 67. CEBU-LAPU-LAPU 230 kV TRANSMISSION
Transmission Project
A new transmission corridor is proposed

between Cebu Substation and Lapu-Lapu
Substation to increase transfer capacity of
the existing corridor and maintain the N-1
contingency provision. As of 31 December
2020, the overall accomplishment of the
project is at 59.4 percent. Due to the
pandemic, the project completion has
been revised to June 2022 from December
2021. (Figure 67)

ENERGY ROADMAPS
2.2.6 Naga (Visayas) Substation Figure 68. NAGA (VISAYAS) SUBSTATION UPGRADING
Upgrading Project
The project intends to replace and upgrade

the existing antiquated and aging
equipment and devices in Naga Substation,
which was commissioned in 1977. This
involves the construction of new steel
tower structures and installation of
associated overhead line component. It will
also use steel tower structures with higher
wind design capability. As of 31 December
2020, its primary and secondary
equipment is 82.88% complete. The
expected completion has been extended to
December 2021 from December 2020 as
affected by the pandemic. (Figure 68)
2.2.7 Panitan – Nabas 138 kV Figure 69. PANITAN – NABAS 138 kV TL – LINE 2
Transmission Line Project– Line 2 (2ND CIRCUIT STRINGING)
(2nd Circuit Stringing)
To cater the entire power requirement of

Nabas Substation even during N-1
condition, a new 138 kV circuit will be
installed between Panitan and Nabas
Substations. This involves the second
circuit stringing of the existing Panitan–
Nabas 138 kV Line, which is already
designed to support two circuits, thus,
improving the reliability of power
transmission towards the northwestern
part of Panay. As of 31 December 2020,
the transmission line component is ready
for energization, while the substation
portion is 98.6 percent complete. The
expected time of completion was moved
from December 2020 to August 2021 as a Figure 70. STA. RITA–QUINAPONDAN 69 kV TL
result of the continuing impacts of the
2.2.8 Sta. Rita–Quinapondan 69 kV

This project involves the construction of a

97-km 69 kV line connecting Sta. Rita and
Quinapondan Substations to improve
system reliability and power quality in
Eastern Samar Area. As of 31 December
2020, the transmission line project is almost
complete at 99.7 percent. The expected
time of completion of the project has been
adjusted from December 2020 to June
2021 due to pandemic.123 (Figure 70)
123
Completed and energized on 04 July 2021.

ENERGY ROADMAPS
2.3 Projects Under Construction in Figure 71. AGUS 2 SWITCHYARD UPGRADING AND
Mindanao REHABILITATION
2.3.1 Agus 2 Switchyard Upgrading

and Rehabilitation Project
The project enhances the operational

stability of the grid that ensures the
continuity of service of the power plant’s
transmission corridor. It involves the
replacement of obsolete power circuit
breakers, capacitive potential
transformers, telecom equipment and
other secondary devices. As of 31
December 2020, the transmission project
is 94.8 percent complete. With the
restrictions brought about by COVID-19,
the expected time of completion of the
project was adjusted from December 2020 to February 2022. (Figure 71)
Figure 72. MSUP
2.3.2 Mindanao Substation Upgrading Project (MSUP)
The MSUP will provide additional transformers, install

capacitor banks, and replace defective, old, obsolete, and
underrated power circuit breakers (PCBs) to ensure
adequate, reliable, and high-quality power transmission
system in Mindanao. It also involves the installation of a
total of 875 MVA power transformers, 52.5 MVAR capacitor
banks, 19 138 kV PCBs and 21 69 kV PCBs. Also included
as project component is the replacement of 11 138 kV and
27 69 kV PCBs in various substations in the grid. The
Project is divided into two (2) stages. Segment of Stage 1
of the Project is already 85.5 percent complete as of 31
December 2020. On the other hand, Stage 2 is already
ongoing and 75.7 percent complete. The MSUP is
expected to be
completed in Figure 73. MSRP – STAGE 1
September 2021.
(Figure 72)
2.3.3 Mindanao Substation Rehabilitation Project (MSRP)

– Stage 1
Mindanao Substation Rehabilitation Project (MSRP) will replace

PCBs in various substations in Mindanao due to defectiveness,
old age, obsolescence, and low fault level capacity.
Implementation of the project will increase the reliability of the
network, reduce/prevent unserved energy, avoid costly
maintenance expenses, improve personnel safety, and
decrease incidents of breaker failures. As of 31 December
2020, Stage 1 of the project is already 66.5 percent complete.
The expected time of completion of the project has been
adjusted from August 2020 to October 2021 because of the

ENERGY ROADMAPS
These ongoing projects are also consistent with the long-term transmission master plan as shown in
Figure 74, which indicates the country’s transmission network outlook in the next 20 years. The list of
other proposed projects is summarized in Annexes 9 and 10.
Figure 74. TRANSMISSION MASTER PLAN
Mindanao-Visayas Interconnection (Dec 2021)
3. Develop supplementary policies for ancillary services
Following the promulgation of the policy governing the operations of the reserve market124 issued on 17
March 2021, the DOE shall also develop supplementary policies for AS particularly on the accreditation
of third-party AS testing entities and conduct of CSP for the procurement of AS contracts, as well as
the cost-recovery and regulatory framework in coordination with the ERC.
4. Implement improvements in the reliability and resiliency of the main grid
In view of improving the full performance of the transmission grid, forced outages and significant
incidents caused or initiated by transmission lines and equipment shall be properly monitored and
evaluated to mitigate its impacts to the overall grid operations. To monitor grid operation, the SO is
required to prepare and submit a Daily Operations Report (DOR) to the DOE, which contains the daily
124
Department Circular No. DC2021-03-0009 “Adopting a General Framework Governing the Operations of the Reserve Market and
Providing Further Policies to Supplement DC2019-12-0018”.

ENERGY ROADMAPS
power demand and supply situation, significant grid incidents, and power outage summary and
evaluation, among others. The DOE shall also look into the NGCP’s grid operations compliance with the
ERC-approved performance indices for reliability and power quality.
The efforts to enhance the reliability and resiliency of the transmission system will not just lessen the
occurrence of power outages but will also limit the scopes and impacts of any system disturbances that
may happen in the grid. To achieve this, the plans and programs on resiliency stipulated in the TDP,
particularly the development of climate-resilient transmission infrastructures, shall be fully adopted and
implemented to assure the long-term resilience of the country’s transmission system.
5. Interconnect the Luzon, Visayas, and Figure 75. MINDANAO-VISAYAS INTERCONNECTION

Mindanao Grids
As the government’s watchdog, the DOE is duly

committed to continually exercise its
supervisory functions over the ongoing
implementation of the MVIP (Figure 75) to
eventually connect the three power grids of the
country into one unified national grid. Amid the
ongoing pandemic, the NGCP is eager to finish
the critical project activities to meet its target
completion in December 2022.
The Luzon–Visayas High Voltage Direct Current

(HVDC) Bipolar Operation is also in the pipeline
to enable greater power supply import and
export between the Luzon and Visayas grid.
With an interconnected grid system, all

available indigenous energy resources, such as
natural gas in Luzon, geothermal in Visayas,
and hydro in Mindanao, will be optimized,
resulting in a more stable and secure power supply in the country.
6. Interconnect Off-Grid Islands to the Main Grid
In line with the Omnibus Guidelines for Off-Grid Areas125, the DOE envisions to build new
interconnection facilities that will link off-grid islands to the main grid, with due consideration to large
island provinces such as Mindoro, Palawan, Marinduque, Masbate and Catanduanes, among others.
This includes the assessment of economic feasibility and timeline for the interconnection. This initiative
will not just benefit these islands in terms of improving their power situation but also all electricity
consumers in the country as this will reduce the missionary subsidies being passed on to them.
IV. DISTRIBUTION
Enhancing Distribution Utility Development Planning. With continuous developments in the electric
power industry, the DOE recognizes the need to enhance the distribution development planning of the
DUs to ensure that the relevant policies, laws, rules, and regulations are integrated accordingly in the
Distribution Development Plan (DDP). For this purpose, the DOE issued DC2021-03-003126 on 02 March
2021, which provides the revised guidelines for the formulation of the DDP using a single, uniform,
detailed and comprehensive format.
DC 2019-01-001 or the Omnibus Guidelines for the Enhancement of Off-Grid Power Development and Operation.
125
Department Circular No. DC2021-03-003 titled “Prescribing the Policy and Guidelines for the Formulation of the Distribution Utilities
126
Distribution Development Plan Integrating the Relevant Laws, Policy Issuances, Rules and Regulations”

ENERGY ROADMAPS
Based on the newly prescribed DDP Form, it must contain the DU’s general profile on captive
connections and contestable customers served by Retail Electricity Suppliers (RES), including the
customers under net-metering and GEOP. The DUs should also provide information related to energy
and demand requirements, capital expenditure projects and financing requirements, electrification
status and activities, compliance with RPS requirements, and strategies towards resilient and smart
distribution system. The Power Supply Procurement Plan (PSPP) must also be included to determine
the CSP activities to be undertaken by the DUs and other mandated entities.
To properly guide the DUs in filling out the new DDP Form, the DOE developed and disseminated the
corresponding instruction manual.
Monitoring of Timely Implementation of necessary Distribution Facilities Projects. The DUs

spurred significant investments on several capital expenditure projects to continually improve the
operational efficiencies and performance of the distribution network, as well as to address the
anticipated increase in load demand of their franchise areas. These projects are mainly consisted of
rehabilitation, upgrading, and expansion of distribution, substation, and sub-transmission facilities,
among others.
In 2019, a total of 5,112 ckt-km of sub-transmission facilities, 109,135 ckt-km of distribution line and
38,871 MVA of substation capacities were completed as part of the network requirements of the existing
distribution system (Table 46).
Table 46. 2019 CAPITAL EXPENDITURES PROJECTS

Sub-transmission Facilities Distribution Facilities Substation Capacity
Grid
(CKT-KM) (CKT-KM) (MVA)
Luzon 4,460 74,247 37,044
Visayas 220 13,038 417
Mindanao 431 21,849 1,410
Total 5,112 109,135 38,871
Source: 2020-2029 Distribution Development Plan
Note: Totals may not add-up due to rounding-off
Implementing the Competitive Selection Process Policy. To ensure reliable and adequate power
supply in the least-cost manner, several DUs have conducted a clear, transparent, and fair procurement
process of their Power Supply Agreements (PSA) pursuant to the CSP Policy127 issued in February
2018. The policy also enumerates instances exempting DUs from the conduct of CSP. As of December
2020, the DOE granted 30 DUs with a Certificate of Exemption as listed in Annex 11.
In addition, the DOE conducted Capability Building Workshops to orient and enhance the capability of
the DUs and their Third-Party Bids and Awards Committee (TPBAC) on the conduct of CSP. In 2020,
the approval of the selection process for the two (2) captive customer representatives to the TPBAC
was included in the DOE's Citizen's Charter.
Monitoring of DUs Reportorial Requirements. The DOE firmly monitors the timely submission of the
required reports, data, and information of the DUs in compliance with their reportorial obligations under
the DC 2010-03- 0003128, DC2013-05-0006129, DC2015-04-0002130, and DC2017-12-0013131. The data
included in these reports is instrumental to develop, maintain and improve the database needed for
energy planning and policy-making functions of the DOE.
127
DC 2018-02-0003 otherwise known as “Adopting and Prescribing the Policy for the CSP in the Procurement by the Distribution Utilities
of Power Supply Agreement for the Captive Market”.
128
Directing All Power Generation Companies, the Transmission Service Provider, and All Distribution Utilities to Ensure Adequate and
Reliable Electric Power Supply in the Country
129
Enjoining All Generation Companies, Distribution Utilities, Suppliers and Local Suppliers to Ensure an Effective and Successful
Transition Towards the Implementation of Retail Competition and Open Access
130
Directing All Generation Companies, Distribution Utilities, and Independent Power Producer Administrators to submit to the Department
of Energy Reportorial Requirements and other Pertinent Data as may be required for the Formulation of the Power Supply and Demand
Forecasts of the Power Development Plan
131
Providing Policies on the Implementation of Retail Competition and Open Access (RCOA) for Contestable Customers in the Philippines
Electric Power Industry

ENERGY ROADMAPS
PLANS AND PROGRAMS
As shown in Figure 76, the following shall be the roadmap for the distribution sector:
1. Improve and Ensure Timely Implementation of Distribution Development Plans
The DOE has been Figure 76. POWER DISTRIBUTION ROADMAP

unwavering in improving
and pursuing the timely
approval and
implementation of the
Distribution Development
Plans (DDPs) of the DUs
with due consideration on
the proposed capital
expenditure projects for
expansion and
enhancement of
distribution facilities.
Correspondingly, the DOE
has closely worked with
ERC in the development of
enabling policies and
identifying the needed
regulatory supports to
facilitate the completion of
distribution projects as
scheduled and targeted.
2. Enhance the Existing Competitive Selection Process Policy
Recognizing the various recommendations of the electric power industry stakeholders to improve the
2018 CSP Policy, the DOE is now in the process of amending some provisions and supplementing the
policy to further ensure its efficiency and effectiveness. Such improvements include the introduction of
other CSP modalities for competitive and transparent PSA. After the conduct of public consultations
in December 2020, the draft policy was again subjected to another round of public consultations held
on 20, 21 and 26 May 2021. The draft policy is expected to be promulgated during the 3rd Quarter of
2021.
3. Monitor the submission of reportorial requirements and ensure compliance of Distribution

Utilities to policy directives
The DOE is constantly monitoring the DUs’ compliance to their reportorial requirements set forth by
existing laws, policies, and regulations of the government. To ensure timely and complete submission
of these reportorial obligations, non-compliant DUs will be reported to the ERC for possible issuance of
a show-cause order.
The DOE is also working on the promulgation of a policy through a DC titled “Providing Policies for the
Effective and Efficient Management of the DOE Reportorial Requirements for the Electric Power Industry
Participants” covering the generation companies, distribution utilities, suppliers, market operator (MO),
SO and other entities that have essential information relevant to the power sector. To guarantee the
quality, accuracy and consistency of reportorial requirements, the draft policy provides the list of all
required data and reports that must be prepared and submitted to the DOE using the structured data
templates and format for easy monitoring and processing of the data.

ENERGY ROADMAPS
Further, the DOE, in collaboration with the concerned agencies, shall regularly conduct monitoring and
inspection activities for the distribution sector to validate the DU’s adherence with the existing policy
directives. This shall form part of the DOE’s evaluation and recommendation before the Congress
regarding their franchise renewal or revocation.
4. Conduct policy review on the regulation and performance of distribution utilities
The DOE deems it necessary to review, evaluate and harmonize the existing laws, policies and
regulatory frameworks currently being applied to and adopted by the DUs. The following are the
primary objectives of this activity:
▪ Evaluate the quality of service provided by the DUs on their respective franchise areas based
on a set performance standards;
▪ Review existing laws, Department Circulars, ERC resolutions, and other issuances related to
DUs’ regulatory framework and ratemaking methodology;
▪ Seek key energy agencies’ evaluation on the current regulations applied to the private DUs
and ECs; and
▪ Recommend solutions to improve the quality of service provided to all electricity consumers,
were both private the DUs and ECs conform to the same operational performance standards.
5. Institutionalize continuous improvement of the reliability and resiliency of distribution

facilities
The reliability of the distribution system is strongly associated to resiliency of distribution infrastructures.
The DOE, alongside with NEA, will continuously supervise and facilitate the timely preparation and
submission of Resiliency Compliance Plan (RCP) of all Distribution Utilities to meet the resilience goals
of the country for the distribution sector, as provided under the Energy Resiliency Policy. Accordingly,
the DOE shall ensure the adoption of the RCP based on their mandates and subject to their established
standards, rules, and regulations.
V. RETAIL ELECTRICITY SUPPLY

Retail Competition and Open Access (RCOA). The RCOA is an enabling policy that allows qualified
electricity end-users or contestable customers (CCs) to choose their electricity supplier at an agreed
contract price. The realization of RCOA expands transparency in the industry and at the same time
empowers consumers.
The electricity industry’s compliance to the conditions set forth in EPIRA paved for RCOA’s effectivity
and declaration by the ERC. To reiterate said conditions, these cover: a) establishment of the Wholesale
Electricity Spot Market (WESM); b) approval of unbundled transmission and distribution wheeling
charges; c) initial implementation of cross subsidy removal scheme; d) privatization of at least 70.0
percent of the generating assets of the NPC in Luzon and Visayas; and, e) transfer of the management
and control of at least 70.0 percent of the total energy output of power plants under contract with the
NPC to the Independent Power Producer Administrators (IPPA).
As a move to address the gaps and ensure RCOA’s implementation, the DOE issued DC 2019-07-
0011132. This removed the mandatory participation of CCs in WESM as it is now optional for them, and
it designated the Independent Market Operator (IMO) as the Central Registration Body (CRB). The
corresponding Retail Rules and Market Manuals were also reviewed and updated. The review
considered the ERC’s Rules Supplementing the Switching and Billing Process and Adopting a
Disconnection Policy for CCs.133 An amendment was proposed by the Independent Electricity Market
Operator of the Philippines (IEMOP) through the WESM-Rules Change Committee (RCC) and submitted
by the Philippine Electricity Market Corporation (PEMC) to DOE on 19 December 2019.
132
DC issued on 29 July 2019 titled “Amending Various Issuances on the Implementation of the Retail Competition and Open Access.”
133
ERC Resolution No. 9 series of 2018

ENERGY ROADMAPS
In a span of eight (8) years (from 2013 – March 2021), the interest in RCOA grew as the total registered
participants reached 1,716 or a 498 percent increase from the 287 participants in March 2013 (Table
47). Contestable customers comprise 92.4 percent (1,585) of the total registered participants. Retail
metering service providers (RMSP), suppliers, and suppliers of last resort (SOLR) consisted of the
remaining shares of 3.3 percent, 2.9 percent, and 1.5 percent, respectively.
Table 47. SUMMARY OF RCOA REGISTRATION

Prospective Registered
Membership Category
June March March 2021 June March March 2021
2013 2021 vs. June 2013 2013 2021 vs. June 2013
Contestable D ≥ 1 MW 892 1,457 63% 240 1,160 383%
Customers 750 kW ≥ D - 667 - - 387 -
>1 MW
500 kW ≥ D - 795 - - 38 -
>750 MW
Total 892 2,919 227% 240 1,585 560%
Suppliers RES 19 45 137% 15 36 140%
LRES 13 25 92% 3 14 367%
Total 32 70 119% 18 50 178%
SOLR 9 47 422% 0 25 -
RMSP 29 56 93% 29 56 93%
Total 962 3,092 221% 287 1,716 498%
PLANS AND PROGRAMS
Supply Subsector Roadmap
In the medium- to long-term, the supply subsector will be an active participant in RCOA with the
development of policies related to its implementation (Figure 77). This is important in the realization of
RCOA’s objective of end-users having the power of choice for their preferred electricity suppliers.
1. Implement retail aggregation in Luzon and Visayas
The DOE in coordination with

Figure 77. SUPPLY ROADMAP
the concerned energy
agencies and stakeholders will
conduct a study to define the
policy and operational and
regulatory framework for retail
market and aggregation. Initial
study was already done by
IEMOP in consultation with the
DOE, which recommended
putting in place procedures
and guidelines on the
following: a) operational
framework to be adopted by
the retail aggregator; b)
licensing procedures and
aggregated customer
certification criteria; c)
standard metering rules and
arrangements; and d)
guidelines for system loss
accounting.

ENERGY ROADMAPS
2. Implement RCOA in Mindanao
Implementing the policy for the grid entails the review of relevant rules and policies, as well as
consultations. These are to be carried out as the Mindanao’s electricity industry is unique compared to
Luzon and Visayas where the RCOA policy is referenced to. The ERC will also develop and implement
separate rules and procedures for RCOA in Mindanao as based on ERC Resolution No. 18 Series of
2018.
3. Adopt lower threshold for RCOA in Luzon, Visayas, and Mindanao
The DOE is carefully examining and looking at the impacts of lowering RCOA’s threshold. The
Department’s proposed study, which will complement with that of PEMC and ERC includes: a) assessing
the readiness of retail market and suppliers for greater RCOA participation; b) evaluating and
harmonizing existing local guidelines and resolutions in support of RCOA; c) analyzing the economic
and technical impact of lowering RCOA thresholds on RES and LRES operated by private entities and
DUs; and d) comparing the current and future RCOA policy and regulatory frameworks with other
jurisdictions having similar market designs.
VI. ELECTRICITY MARKET

WESM Design Improvements / New Market Management System (NMMS). The operationalization
of the electricity market’s trading interval from one (1) hour to five-minutes is contained in the DC titled
“Providing Policies for Further Enhancement of the WESM Design and Operations.”134 The preparations
for the transition as undertaken by the DOE included amendments on the WESM Rules, review and
approval of the ERC of the Price Determination Methodology (PDM), trainings and readiness evaluation
of market participants, and NMMS development, which embedded the features of the five-minute WESM
(i.e., Central Registration and Settlement System or CRSS).
As the pandemic hit the country in 2020, adjustments had to be made on the targets and related
schedule on the WESM Design Enhancements. It was recommended to the DOE by the PEMC Board
through a letter (dated 28 May 2020) to further defer the go-live date from 26 June 2020 to 26 December
2020.
The five-minute WESM has been adopted with the DOE’s issuance of DC 2021-06-0015135 since 25
June 2021. The policy declared the commercial operation date of the Enhanced WESM Design and
Operation (EWDO) effective 26 June 2021. For Luzon and Visayas, the compliance to the Dispatch
Conformance Standards is relaxed for the first three (3) months from commercial operation date. In
Mindanao, the WESM Central Scheduling is set to continue until 25 July 2021 based on the WESM
Central Scheduling guidelines.
Establishment of WESM Mindanao. The excess capacity in Mindanao is a fitting situation for the
operation of an electricity market. It is viewed to prepare the grid for its eventual participation to WESM
that is already in place in Luzon and Visayas.
Mindanao is nearing the establishment of its own electricity market. With WESM having been launched
on 26 June 2017, the next step is the commercial operation of the market, which will only be declared
once all the criteria set forth are complied with - systems and procedure, Trial Operations Program
(TOP), operationalization, trainings, PDM, and NMMS.
134
DC 2015-10-0015 issued on November 2015.
135
“Declaring the Commercial Operations of the Enhanced Wholesale Electricity Spot Market (WESM) Design and Providing Further
Policies” issued last 25 June 2021.

ENERGY ROADMAPS
Table 48. WESM MINDANAO REGISTRATION STATUS (as of 21 May 2021)

Completed Pending Initial
No. of Not Yet Sign-up but For Prudential
Membership
Expected Applied / for Completion of Requirements Registered
Type
Participants Sign-up Submission of Requirements and/or Re-
Requirements submission
Generator 43 4 20 2 18
Electric 28 1 1 11 14 1
Cooperative
(EC)
Private 4 4
Distribution
Utility
Directly 12 1 6 4 20
Connected
Customer
Total 87 2 11 35 20 39
The registration of power industry participants is one of the key criteria in the declaration of commercial
operation. There are 87 expected participants for Mindanao and only two (2) have not yet applied or
signed-up. Registered participants have already reached 39, representing 45 percent of the total
expected participants (Table 48).
There are still some concerns on WESM Mindanao participation, specifically pertaining to Lanao del Sur
Electric Cooperative, Inc. (LASURECO), Maguindanao Electric Cooperative, Inc. (MAGELCO), and
Zamboanga City Electric Cooperative, Inc. (ZAMELCO). LASURECO and MAGELCO’s financial
constraints including the continuous incurrence of liabilities from the PSALM are preventing them from
registering. In response to this, several inter-agency meetings were conducted by the DOE with the
Office of the President (OP), Department of Finance (DOF), PSALM, and NEA to arrive at possible
solutions. The DOE’s proposal is to allow PSALM to assume all power quantities of these ECs during
the market’s three-month transition. The DOE is now finalizing the recommended measures to enable
the said ECs to adopt in the new market environment.
The DOE’s promulgation on the relaxation of the Prudential Requirements136 aimed to further aid the
Mindanao trading participants. The policy essentially removes the 10.0 percent level and replaces the
same with the actual exposure of the DUs including the corresponding rental amount applied to bilateral
contract quantities.
The EWDO encompasses that Mindanao will be under the WESM Central Scheduling until 26 July 2021.
The central scheduling’s purpose is to centrally schedule, or dispatch energy and reserve categories
traded in the electricity spot market. The prices arising in the electricity market during this period is not
binding, which means that contracting parties are not tied to the prices. All energy transactions to be
undertaken by the electricity market participants (trading participants and counterparties) will still be
settled based on their PSA.
The corresponding policy issuances on WESM Amendments are highlighted in Table 49.
Table 49. PROMULGATED DCs RELATED TO WESM AMENDMENTS

DC No. Title Date Issued
2020-06-0013 Adopting Further Amendments to the Wholesale Electricity Spot Market 01 June 2020
(WESM) Rules and Market Manual on Registration, Suspension and De-
registration Criteria and Procedures for the Implementation of
Enhancements to WESM Design and Operations (Provisions for
Registration of New Facility and Harmonization with the Republic Act
No.11234 entitled “An Act Establishing the Energy Virtual One-Stop
Shop)
136
DC 2020-06-0014 entitled “Adopting Further Amendments to the WESM Rules and Market Manual on Billing and Settlement for the
Implementation of Enhancements to WESM Design and Operations” issued on 2 June 2020.

ENERGY ROADMAPS
Table 49. PROMULGATED DCs RELATED TO WESM AMENDMENTS

(WESM) Rules and Market Manual on Billing and Settlement for the
Implementation of Enhancements to WESM Design and Operations
(Provisions for Prudential Requirements)
2020-10-0019 Adopting Further Amendments to the Wholesale Electricity Spot Market 06 October 2020
(WESM) Rules and Market Manual on Registration, Suspension and De-
registration, and Market Network Model Development and Maintenance
for the Implementation of Enhancements to WESM Design and
Operations (Provisions for the New Load Facility of a Registered WESM
Member)
(WESM) Market Manual on Dispatch Protocol for the Implementation of
Enhancements to WESM Design and Operations (Provisions for the
WESM Timetable)
(WESM) (Provisions for the Implementation of Independent Market
Operator)
2021-02-0002 Adopting the Wholesale Electricity Spot Market (WESM) Industry Code 24 February 2021
of Ethics”
2021-03-0004 Adopting Further Amendments to the Wholesale Electricity Spot Market 16 March 2021
(WESM) Rules and Market Manual on Procedures for the Monitoring of
Forecast Accuracy Standards for Must Dispatch Generating Units for
the Implementation of Enhancements to WESM Design and
Operations”
(WESM) Market Manual on Load Forecasting Methodology for the
(WESM) Market Manual on Dispatch Protocol for the Implementation of
Enhancements to WESM Design and Operations
(WESM) Market Manual on Management of Net Settlement Surplus
(WESM) Market Manuals for the Implementation of Policy and
Framework Governing the Operations of Embedded Generators
2021-03-0009 Adopting A General Framework Governing the Operationalization of the 17 March 2021
Reserve Market in the Wholesale Electricity Spot Market and Providing
further Policies to Supplement DC2019-12-0018
(WESM) Rules, Retail Rules and Various Market Manuals for the
(Provisions to Promote Participation in Retail Competition)
PLANS AND PROGRAMS
The electricity market subsector’s roadmap includes continuous improvement of WESM design and
rules and the full operation of WESM Mindanao as the short-term action plans for 2021-2022. For the
long-term, specific action plans point to the establishment of the Renewable Energy Market (REM) and
Reserve Market (RM).

ENERGY ROADMAPS
Implement the five-minute Figure 78. ELECTRICITY MARKET ROADMAP

WESM trading interval in
Luzon, Visayas, and
Mindanao. The issuance of
DC 2021-06-0015 on 25 June
2021 paved for the transition
to a five-minute trading
interval from the then one-
hour interval. This is being
implemented in the WESM
Luzon and Visayas. With
Mindanao still under WESM
Central Scheduling, the
objective is for the electricity
market to also transition to
the five-minute trading
interval once WESM
Mindanao is commercially
operating.
Full commercial operation of the WESM Mindanao. The promulgation of the EWDO in June 2021 is
a step closer towards the commercial operation of WESM in Mindanao. Once operational, transparency
and competition are further enhanced in the grid. The market is also deemed to lower the barriers of
entry in Mindanao’s electricity industry as this entices new generation capacities.
Commercial Operation of the Reserve Market. The AS Policy laid the guiding principles for the
procurement and utilization of reserves capacity to ensure the reliability, quality, and security of supply
of electric power. It also mentioned the co-optimization of energy and reserves in the WESM through
the Reserve Market (RM).
The policy clearly points that prior to the commercial operation of the reserve market, the SO shall
ensure compliance with its obligation of the required levels of AS. 137 Currently, energy and reserves
are jointly optimized in the WESM, and this is a product of various policies 138 aimed at enhancing the
electricity market design and operations.
The DOE is currently working on the policy on Reserve Market Design. Once finalized, this will still be
subject to public consultations prior to its promulgation that is targeted by 2021.
Continuous improvement of WESM Design and Rules. Policy development will be steadily pursued
to further transparency and competitiveness in the market. The improvement of design and rules entails
changes and compliance to WESM Rules, periodic audit of market operations, market operator
performance standards, metering service provider performance standards, and enforcement.
VII. OFF-GRID DEVELOPMENT

Rationalize and Improve Universal Charge for Missionary Electrification (UCME) Subsidy System.
The DOE issued in January 2019 the Omnibus Guidelines for Off-Grid Areas139 that seeks to rationalize
existing tariffs, including the phase-out of the UCME subsidy mechanism in a socially acceptable
137
The required levels of AS pertains to Regulating, Contingency, Dispatchable, Reactive Power Support, and Black Start.
138
DC 2015-10-0015 entitled “Providing Policies for Further Enhancement for the Wholesale Electricity Spot Market (WESM) Design and
Operations” and DC 2015-11-0018 entitled “Declaring the Commercial Operation of the Central Scheduling and Dispatch of Energy
and Contracted Reserves in the WESM and Further Amendments to Its Protocol in Preparation for the Eventual Operation of the WESM
Reserve Market”
139
DC2019-01-0001 otherwise known as “Prescribing the Omnibus Guidelines in Enhancing Off-Grid Power Development”

ENERGY ROADMAPS
manner. This initiative aims to ensure an efficient and well-targeted provision of subsidies and to reduce
the social inequity in the implementation of the program.
For this purpose, the DOE identified detailed measures for rationalization as part of the strategies to
reduce UCME subsidies (Figure 79). Further, the DOE issued an Advisory to provide clarification and
direction that the provision of UCME for both existing and upcoming New Power Providers (NPP) in off-
grid areas shall continue until the DOE releases a new tariff and subsidy rationalization policy, together
with a complementary regulation of the ERC.
Figure 79. STRATEGIES TO REDUCE UCME SUBSIDIES
Notes: TCGR – True Cost Generation Rate; FCCR – Forecast Cost Recovery Rate; SAGR – Subsidized
Approved Generation Rate; SARR – Subsidized Approved Retail Rate
Conduct Policy Studies on UCME Rationalization. The DOE initiated the conduct of a policy study to
provide guidance in establishing a more definitive strategies on the rationalization of missionary
electrification subsidies. In light of this, the DOE tapped the technical assistance of the European Union-
Access to Sustainable Energy Programme (EU-ASEP) to undertake policy research titled “Rationalizing
the UCME Subsidy for Electricity End-Users in Off-grid Areas: A More Targeted, Efficient and
Sustainable Quantitative-based Subsidy System” that will help the policy makers to formulate an
evidence-based policy on the demand side aspects of the rationalization framework.
The study has been finalized and submitted to the DOE, which includes policy recommendations to
enable subsidy rationalization in off-grid areas. It was already presented to nine (9) ECs and one (1)
QTP.
On the other hand, the main grid interconnection of off-grid islands is also being pursued as it relates
to eventual removal of UCME, which is also implied in existing regulations. Thus, the DOE, through the
TransCo, facilitated the conduct of several feasibility studies to interconnect major island provinces,
such as Marinduque and Catanduanes, into the main grid.
Performance Assessment and Audit. As a continuing program for off-grid development, the DOE,
NEA, and NPC have jointly undertaken the Performance Assessment and Audit (PAA) of seven (7)
power generation facilities and three (3) DUs in off-grid areas in 2019. However, no PAA activity was
conducted in 2020 due to the pandemic. The results of the activities are essential in identifying the
issues and challenges including the appropriate policy measures and programs to improve the small
grid power system operations.

ENERGY ROADMAPS
PLANS AND PROGRAMS
As part of the off-grid development roadmap as shown in Figure 80, the following should be pursued
over the short- and long-term period:
1. Monitor and assess the implementation of the Omnibus Policy
To successfully realize the provisions contained in the Omnibus Policy, the DOE shall incorporate on its
Missionary Electrification Development Plan (MEDP) the implementation updates as well as the
strategies of the government on how to fully achieve the policy’s overall objectives. Likewise, policy
review and assessment must be done to understand its effectiveness and to determine the required
policy support for successful and effective implementation of the guidelines.
As part of the continuing efforts

to improve the overall Figure 80. OFF-GRID DEVELOPMENT ROADMAP
development planning in off-
grid areas, the DOE shall
periodically update the MEDP
incorporating the DDPs of the
DUs for their respective off-grid
areas, the NPC’s Missionary
Electrification Plan (MEP), and
the RE and energy efficiency
targets. An off-grid power
monitoring system shall also be
pursued to improve data
management and analytics, as
well as to formulate responsive
policies and programs. Further,
it shall continuously conduct
various capacity building
programs to strengthen the
technical competencies of the
off-grid DUs in power supply planning.
2. Promulgate the policy on UC-ME subsidy rationalization
The pinnacle of the Omnibus Guidelines is to adopt appropriate tariff mechanisms for missionary
electrification subsidies. To achieve this, the DOE seeks to promulgate a policy, which lays down the
holistic framework and detail strategies to achieve the graduation and rationalization of subsidies in
missionary areas. The policy intends to cover the following:
▪ Implementation of optimal generation mix in off-grid areas to reduce the generation cost over
time;
▪ Graduation and customer-level rationalization of subsidies in off-grid areas;
▪ Implementation of energy efficiency programs in off-grid areas; and,
▪ Luzon main grid interconnection plans of large off-grid provinces – Mindoro, Palawan,
Marinduque, Masbate and Catanduanes.
3. Promulgate the policy on off-grid system operations
The DOE recognizes the need to enhance the performance of system operation and management in
off-grid areas for stable operation and optimal dispatch of power in view of reducing the electricity cost
and subsidies.

ENERGY ROADMAPS
In a memorandum issued by Secretary Alfonso Cusi on 4 February 2021, the DOE mandated TransCo
to serve as the off-grid SO for any small grid or off-grid power system with more than one power
supplier. For areas with only one power supplier, the franchise DU will continue to perform its mandate
as off-grid SO. The implementation of this directive will form part of the DOE’s initiative to formulate a
policy on SO for off-grid areas.
As part of the preparatory activities in drafting the policy, the DOE steered Focus Group Discussions
(FGD) with its attached agencies to review all relevant policies and guidelines on SO functions and
performance. The results of this undertaking served as inputs in the draft DC titled “Mandating the
National Transmission Corporation (TransCo) as Small Grid System Operator (SO) in Off-Grid Areas.”
The DOE is now in the process of finalizing the draft policy after subjecting it to a series of public
consultations.
4. Implement rationalized UCME subsidy system
The DOE is currently crafting the policy for the graduation and rationalization of the UCME subsidy in
missionary areas using the technical study conducted by EU-ASEP as the reference to facilitate
customer-level tariff rationalization. Tantamount to this, the ERC is expected to provide the necessary
regulatory support following the promulgation of this policy.
5. Conduct of off-grid policy review and studies
To ensure the timely and effective implementation of the Omnibus Policy within the medium- to long-
term horizons, the DOE will continuously conduct policy review and studies on the following:
▪ Rationalization of UC-ME subsidy system;

▪ Establishing resiliency policies for off-grid power facilities and services to include technical and
operational standards, financial support mechanisms, and incentives;
▪ Improving the institutional cooperation, transparency, and governance of the DOE as the
policymaker, and NEA, NPC, Association of Isolated Electric Cooperatives Inc. (AIEC), NPPs
and QTPs as the administrators and implementers of missionary electrification; and
▪ Strengthening the inter- and multi-disciplinary competence of the DOE, NEA and NPC on
missionary electrification
6. Interconnect off-grid islands to the main grid
Consistent with the previous discussion under the transmission roadmap (Figure 45), the
interconnection of off-grid areas to the main grid is among the top priorities of the government for the
country’s power infrastructure development. Table 13 summarizes the potential small island
interconnections indicating the length of the required facilities and the peak load in the island for 2019
and 2040. As a way forward, the NGCP is set to conduct due diligence leading to the prioritization of
island/off-grid areas proposed to be interconnected to the grid and Techno-Economic Feasibility Study
(Techno-Eco FS) on each proposed interconnection.
Table 50. POTENTIAL SMALL ISLAND INTERCONNECTIONS
2040 Peak Required Transmission Line Length

2019 Peak Main Grid
Demand for the Island Interconnection (km)
Island Demand Interconnection
Forecast
(MW) Point
(MW)
Submarine Overhead Total
Luzon
Catanduanes 13.54 34.39 Presentacion 32 8 40
Marinduque 11.65 31.05 General Luna 23 11 34
Ticao 2.59 7.49 Abuyog 20 35 55
Masbate 21.99 56.12 San Jacinto 16 16 32
Tablas 8.72 23.15 San Jose 61 36 97
Lubang 1.19 4.77 Calaca 54 20 74

ENERGY ROADMAPS
Table 50. POTENTIAL SMALL ISLAND INTERCONNECTIONS

Busuanga 7.85 25.69 San Jose 84 52 136
Visayas
Bantayan 8.9 28.36 Medellin 21 24 45
Siquijor 6.1 23.04 Bacong 20 24 44
Camotes1 3.72 12.51 Isabel 18 8 26
Semirara San Jose 33 0 33
Mindanao
Siargao 10.08 45.29 Cagdiano 13 7 20
Samal2 2.96 19.99 Lasang 9 21 30
Basilan 10.9 25.98 Pitogo 27 12 39
Dinagat 4.4 13.58 Canlanipa 30 15 45
Camiguin 4.76 25.93 Esperanza 30 37 67
Siasi 0.9 1.91 Parang 43 32 75
Sulu 9.44 22.19 Taberlongan 100 34 134
Tawi-Tawi 8.42 34.29 Pagatpat 84 60 144
Source: 2021-2040 TDP Draft Report
Notes: 1 Ponson Island excluded
2
Talicud Island excluded
VIII. TOTAL ELECTRIFICATION PROGRAM

Access to electricity is regarded as a transformative tool that leads to the improvement of the quality of
life of people. The government, mindful of the impact that electricity access brings, is guided with the
goal of attaining 100.0 percent electrification of unserved and underserved 140 areas in the country by
2022. The attainment of the total electrification goal entails the continuous implementation of
electrification programs that are overseen by the Task Force E-Power Mo (TFEM)141 and complemented
by the Total Electrification Masterplan.
The provision of electricity is an obligation to be carried out by DUs and this must be supplied in the
least cost manner subject to the collection of retail rates approved by the ERC.142 The DUs are also
responsible for providing service to unviable areas and in cases wherein there is no viable solution,
these areas may be transferred to another DU (if there is any available). A QTP comes in if DUs are
unable to serve remote and unviable villages. The DOE is responsible for declaring these remote and
unviable areas open for private sector participation. The NPC- Small Power Utilities Group (SPUG)
enters the picture if neither a DU nor a QTP can provide electricity service.
2020 Household Electrification Status. Electrification at the household level stood at 94.5 percent in
2020, an increase of 1.5 percentage points from the 2019 level of 92.9 percent (Figure 81). The rise in
electrification level indicates that 24.12 million households out of the potential 22.98 million 143 are now
with electricity service. The remaining 1.26 million unenergized households are targeted to be provided
with access by 2021 – onwards.
Luzon recorded the highest electrification level at 98.4 percent with 14.9 million energized households.
Visayas closely followed with an electrification level of 95.7 percent equivalent to 4.5 million energized
households. Mindanao remains to have the highest unserved households at 865,236 equating to an
electrification level of only 83.5 percent (Table 51 and Figure 82).
140
Refers to areas with less than 24-hour electricity service.
141
Created through DO 2018-05-0010 signed on 24 May 2018.
142
Section 23 of RA 9136.
143
Potential households based on the 2015 Census. This is the reference potential HH adopted by DOE as directed by TFEM.

ENERGY ROADMAPS
Figure 81. HOUSEHOLD ELECTRIFICATION, 2019 - 2020
Table 51. HOUSEHOLD ELECTRIFICATION BY GRID (as of December 2020)

Electrification
Potential HH* Served HH Unserved HH**
Level (%)
Luzon 13,318,261 14,971,624 210,538 98.42
Visayas 4,401,698 4,545,661 191,102 95.66
Mindanao 5,265,012 4,605,672 865,236 83.57
Philippines 22,984,971 24,122,957 1,266,876 94.49
Note:
* Potential HH based on 2015 PSA Census
** Unserved HH is the actual unserved HH from the DUS/ECs
Figure 82. HOUSEHOLD ELECTRIFICATION BY GRID, 2020
Addressing Barriers to Program Implementation
1. Memorandum of Agreement (MOA) with Department of Interior and Local Government (DILG)
The DOE and DILG signed a MOA on 22 March 2019, which created an inter-agency support group.
The MOA enables the DILG to direct all local government units (LGUs) to cooperate with the DUs in the
conduct of inventory of unserved and underserved areas. The DOE also made a request to DILG on
the possible exemption of qualified households from paying fees related or required to avail of electricity
service connection.

ENERGY ROADMAPS
2. National Task Force to End Local Communist Armed Conflict (NTF-ELCAC)
The NTF-ELCAC144 identified areas that need electricity service. These areas were harmonized with
the DU’s submitted master plans and had an equivalent of PhP4.6 billion funding requirements for the
energization of 1,579 identified areas. The DOE will continue to engage and coordinate with NTF-
ELCAC to fast track electrification in areas with armed conflicts.
Electrification Programs
Grid
1. Nationwide Intensification of Household Electrification (NIHE)
The program reported a total of 186,773 energized households in 2020 out of the 344,090 households
with approved house wiring and kilowatt-hour (kWh) meter subsidy.
The restrictions imposed by community quarantine because of COVID-19 affected and halted
installation activities for the identified beneficiaries. As a move to ensure project completion, the DOE
drafted for approval an Advisory to provide guidance to concerned DUs implementing the program
regarding their concerns on fund releases and inspection upon completion.
2. Energy Regulations 1-94 (ER 1-94)
As a proactive response to the pandemic and with the recognition that initiatives are to be drawn up at
the local level, the DOE issued a policy on Rationalizing the Utilization of Energy Regulation (ER) 1-94
Funds by the LGUs in Response to COVID-19 Public Health Emergency145. The primary objective of
the policy is to provide additional fund sources for host LGUs in addressing COVID-19. It also stipulates
that all ER1-94 funds (EF, DLF & RWMHEEF)146 that are administered and still with the DOE and the
generating companies (last billing quarter of 2019) will be remitted to the host LGUs upon issuance of
letter of intent for the implementation of COVID-19 related projects.
The DOE already disbursed 71.5 percent (PhP4.6 billion of the PhP6.4 billion) of available ER 1-94 funds
to host communities and beneficiaries. Around PhP1.8 billion is still left that will need to be transferred
and remitted (Table 52).
Table 52. STATUS OF RECONCILED VS. REMITTED FUNDS TO HOST BENEFICIARIES (as of August 2021)
Reconciled Available ER Disbursed Remaining
Fund Type 1-94 Funds with DOE ER 1-94 Funds ER 1-94 Funds
(PhP Billion) (PhP Billion) (PhP Billion)
EF 3.436 2.135 1.300
DLF 1.474 1.221 0.253
RWMHEEF 1.516 1.237 0.279
Total 6.425 4.593 1.832
3. Sitio Electrification Program (SEP)
The SEP147 covers the energization of sitios which are territorial enclaves within a barangay which is
distant from the barangay center and composed of at least 30 – 40 households.
In the first quarter of 2021, NEA was able to energize 218 sitios in the country through SEP Phase II.
The program is targeting 11,174 remaining unenergized sitios with equivalent proposed budget of
PhP16.8 billion. The target completion of the program is 2022 (depending on the subsidy funds released
by the national government).
144
Established through Executive Order No. 70
145
DC 2020-04-0008 issued on 6 April 2020.
146
EF refers to Electrification Fund; DLF refers for Development and Livelihood Fund; and RWMHEEF refers to Reforestation, Watershed
Management, Health and Environmental Enhancement Fund.
147
NEA Presentation on Alignment of Plans and Programs for PEP (30 June 2021) submitted to EPPB.

ENERGY ROADMAPS
4. Barangay Line Enhancement Program (BLEP)
The BLEP148 pertains to the connection to the grid of barangays previously energized through small
generating set, solar home systems (SHS), and micro-hydro. The program also covers the improvement
of tapping point and / or installation of underground / submarine cable.
For the period 2022 to 2026, 166 barangays are being targeted by the program with a proposed budget
of PhP2.4 billion (to be proposed in the General Appropriations Act or GAA from 2022 to 2026 and
subject to the subsidy of the national government).
Off-Grid
1. DOE-Solar PV Mainstreaming (PVM)
A program of the DOE that addresses unenergized and highly dispersed remote households that are
far from the distribution lines of ECs. The program financing is both by the DOE (locally-funded) and
EU-ASEP and adopts the Fee-for-Service Business Model where the ECs install the SHS in unenergized
households (located in areas unviable for grid extension) within the EC’s franchise area. The ECs are
the owners of the hardware and responsible for installation, maintenance, repair, and replacement of
the system components. The homeowner’s responsibility covers the household wiring, lights and other
12 volts direct current (DC) loads / appliances.
Table 53. DOE's LOCALLY FUNDED PROJECT (LFP) ON PVM
Province No. of HH Status Remarks
Quezon 1,333 Completed Closed
Busuanga Island, Palawan 3,711 Completed Closed
Bohol 530 Completed Completed
Sulu 2,575 Completed For Final Technical Inspection
Zamboanga del Sur 1,129 Completed For Final Technical Inspection
Iloilo 706 Completed For Final Technical Inspection
Busuanga Island, Palawan (Batch 2) 1,129 Ongoing 3Q 2021
Total 11,113
As of April 2021, around 9,984 households benefited from the project under the DOE’s local funding.
An additional 1,126 households will benefit once installation is completed within 2021 (Table 53).
An endorsement to the ERC was also made by the DOE for the six (6) ECs implementing the PVM
projects – Sultan Kudarat Electric Cooperative, Inc. (SUKELCO), Cotabato Electric Cooperative, Inc.
(COTELCO), ILECO II, Quezon II Electric Cooperative, Inc. (QUEZELCO II), Zamboanga del Sur I Electric
Cooperative, Inc. (ZAMSURECO I), and Sulu Electric Cooperative, Inc. (SULECO). This is related to the
issuance of Order of Approval and in compliance to the ERC Resolution No. 17 series of 2017. 149
2. Access to Sustainable Energy Programme (ASEP)
The program’s PVM component focuses on rural electrification by providing SHS to 40,500 households
in the franchise areas of participating ECs (Table 54). This is divided into two (2) windows where
Window 1 targets 10,000 households (financed by European Union or EU and Global Partnership on
Output-Based Aid Grants or GPOBA) and Window 2 covers the remaining 30,500 households (EU
financed only).
Window 1 was completed in March 2019, and this benefitted 10,000 households within the franchise
areas of COTELCO, Davao del Sur Electric Cooperative, Inc. (DASURECO), South Cotabato II Electric
148
Ibid
149
“Resolution Adopting the Rules Governing the Setting of Regulated Solar Home Systems Tariff for the Provision of Electricity Service
by the Electric Cooperatives.”

ENERGY ROADMAPS
Table 54. EU-ASEP’s PVM COMPONENT (as of December 2020)

Cooperative, Inc. (SOCOTECO II),
Province No. of HH Status
and SUKELCO. The Local
Cotabato 2,500
Government Unit Guarantee
Davao del Sur 2,500
Corporation (LGUGC) managed
Window 1 South Cotabato 2,500 Completed
Window 1.
Sulu 2,500
Sub-Total 10,000
In the case of Window 2, the
Valencia City,
tendering was completed in March 1,000
Bukidnon
2021, but the expected completion
Bukidnon 2,500
date has been moved from
Cotabato 6,100
September 2021 to February 2022.
Window 2 Sultan Kudarat 5,900 Ongoing
The project implementation and
Davao del Sur 7,500
management of Window 2 is under
General Santos,
the purview of the NPC. South Cotabato
7,500
Sub-Total 30,500
3. Qualified Third Party (QTP)
Total 40,500
The provision of electricity service is carried out by the QTPs once the DUs are unable to serve the
remote and unviable areas. The DOE’s issuance of the Revised QTP Guidelines150 on 7 January 2020
further supports the government’s total electrification objective and provides for an environment that is
more conducive to private sector participation. The policy streamlines the QTP participation
procedures, recognizes the greater role of DUs in the selection of areas proposed for private sector
investment, and harmonizes with Renewable Energy Act (RA 9513), particularly the RPS in off-grid
areas. At present, there are three (3) QTP proponents – Powersource Philippines Inc. (PSPI), Sabang
Renewable Energy Corporation (SREC) and FP Island Energy Corporation (FPIEC) – operating in 14
QTP service areas covering the provinces of Palawan, Cebu, Davao Occidental, and Camarines Sur
with around 13,500 households have access to electricity services (Table 55).
A pioneering QTP operator in the country is PSPI. Its successful operation in Riotuba Bataraza, Palawan
transformed and graduated the area from missionary to a commercially viable area. As envisioned in
the QTP Program, once an area has reached a level of socio-economic progress and becomes viable
for the EC to extend the grid, the EC will assume the electricity service in the previously declared QTP
area.
Table 55. QTP PROJECTS (as of December 2020)

Area Technology Target HHs Proponent
Malapascua, Daan-Bantayan, Cebu 750 kW diesel 1,342 PSPI
Hybrid: 1.4 MW solar + 1.2 MW diesel
Sabang, Puerto Princesa City, Palawan 769 SREC
+ 2.3 MWh battery
Candawaga and Culasian, Rizal, Palawan 268 kW diesel 2,151 PSPI
Balut Island, Saranggani, Davao Occidental 690 kW diesel 4,003 PSPI
Liminangcong, Taytay, Palawan 108 kW diesel 1,199 PSPI
Line extension from Brgy.
Tumbod, Taytay, Palawan 395 PSPI
Liminangcong
250 kWp solar + 400 kW diesel + 210
Lahuy Island, Caramoan, Camarines Sur 550 FPIEC
kWh battery
100 kWp solar + 100 kW diesel + 210
Haponan Island, Caramoan, Camarines Sur 87 FPIEC
kWh battery
Quinasalag Island, Garchitorena, Camarines 400 kWp solar + 500 kW diesel + 210
705 FPIEC
Sur kWh battery
Hybrid: 132.8 kWp solar + 144 kW
Brgy. Poblacion, Dumaran, Palawan 497 PSPI
diesel + 351.1 kWh battery
Brgy. Manamoc, Cuyo, Palawan 216 kW diesel 605 PSPI
Hybrid: 200 kWp solar + 609.5 kW
Brgy. Port Barton, San Vicente, Palawan 1,259 PSPI
diesel + 200 kWh battery
150

ENERGY ROADMAPS
QTP Service Areas
The DOE issued Public Notice (PN) 2021-03-0001 on 12 March 2021, which opens 69 QTP Service
Areas for private sector – six (6) are under Negros Occidental Electric Cooperative, Inc. (NOCECO)
and 63 under Palawan Electric Cooperative, Inc. (PALECO). About 26,874 households in Palawan and
3,249 households in Negros Occidental are expected to be provided electricity services once these
areas are served by QTPs. The QTPs serving these areas will be responsible for the generation of
power including the equivalent distribution network.
PLANS AND PROGRAMS
Over the planning period, the government is determined to achieve and realize the following:
1. Achieve 100% electrification of targeted and identified households based on the 2015
Census.
Figure 83. TOTAL ELECTRIFICATION PROGRAM
The energy sector is
keen on achieving its
goal of 100.0 percent
household
electrification by 2022 in
the short-term. With a
year and a half to go
remaining in the
household
electrification timeline,
efforts will be focused in
identifying the unserved
and underserved areas
in the country to reach
the target. The TFEM is
also set to finalize the
targeted households for
2021 and 2022.
A congruent part of the electrification effort is for the DUs to execute and implement swiftly their Total
Electrification Masterplans. These plans define the appropriate strategies including the funding sources
to be utilized in the expansion of electricity access to unserved and underserved areas.
2. Achieve 100% electrification of targeted and identified households based on the latest
available Census.
Once the energy sector achieves its 100 percent household electrification goal by 2022, the next step
is realizing total electrification based on the latest census. The energy sector is likely to be more
pragmatic in its program implementation approach as the baseline is already defined. With reference
or baseline set, the energy sector will continue to implement the appropriate solutions and strategies
for increasing electricity access and adopt more innovative solutions in bringing electricity to
households and communities throughout the country.

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IX. OVERARCHING POLICIES AND PROGRAMS

In the power sector, there are cross- Figure 84. OVERARCHING POLICIES AND PROGRAMS
cutting policies and programs with
scope that covers the entire electricity
industry. These are in place primarily
to assist each power sub-sector on the
implementation of its action plans and
the fulfillment of the objectives set forth
in EPIRA for the planning period.
PLANS AND PROGRAMS
1. Fast-track the Approval

Process for Power Facilities
and Infrastructure
Ensuring energy security, as one of the sector’s strategic directions, is always equated to the assurance
of electricity supply. As a core mandate of the DOE, this necessitates the Department, among other
agencies, to fast track the approval process and permitting for new generation facilities.
The DOE reviews, evaluates, and endorses power-related projects with due diligence and warrants that
this is consistent with existing policies (i.e., EVOSS) and regulatory framework. This is undertaken in
order for the timely completion and commercial operation of power generation projects and facilities.
2. Implement the Smart Grid Policy and Roadmap
It is envisioned that the country will have a smart grid in place by 2040. The transition to a smart grid
system considers the aspects of safety, reliability, efficiency, flexibility/sustainability, resiliency, and
consumer empowerment.
As articulated in the National Smart Grid Policy Framework 151, it is envisioned that the Philippines will
reach a level of smart grid development capable of the following: a) self-healing grid; b) full customer
choice; c) full implementation of RCOA, RPS, GEOP and net metering; d) optimized energy storage
systems (ESS), energy management systems (EMS), and distributed energy resources (DERs)
management systems; e) virtual power plant integration; f) islanding; g) demand response, demand-
side, and peak load management; and h) smart homes and cities.
3. Continuous implementation, evaluation, and adoption of measures to achieve the goals of

EPIRA.
In its effort to further enhance the implementation of the EPIRA, the DOE formulated a draft DC
recommending amendments to certain provisions of the EPIRA-IRR. The proposed amendments
include: a) clarification on the mandates of the DOE, ERC, and TransCo / NGCP on TDP formulation; b)
NEA’s mandate alignment in its authority and responsibility over the ECs viably operating in a
deregulated electricity market and ensuring the total electrification of the country; c) the ERC’s mandate
alignment in ensuring suppliers’ compliance to rules on anti-competitive behavior and market share
limitations, including unbundling provisions as required under Section 36 of the Law; d) accenting
compliance of GenCos including embedded generators and the DUs to the PGC, Philippine Distribution
Code (PDC) and WESM Rules; e) rationalization of subsidies for missionary electrification; f) authority
for TransCo or its buyer/concessionaire to operate, maintain, and develop the transmission system in
any SPUG area that has been identified by the DOE as viable; g) separation of accounts of related
151
DC 2020-02-0003 titled “Providing a National Smart Grid Policy Framework for the Philippine Electric Power Industry and Roadmap
for Distribution Utilities” promulgated on 12 March 2020.

ENERGY ROADMAPS
business of distribution and transmission utilities subsidization among related businesses; h)

determination of remote and unviable areas for the provision of electricity; i) exemption from the
imposition of universal charge (UC) of self-generating entities; j) rationalization of lifeline rates subsidy;
and k) clarification on PSALM’s mandates over the administration of UC.
Privatization of NPC Generation Assets
The government has successfully privatized 74.0 percent (4,610.43 MW out of 6,252.53 MW) of the
NPC’s generating assets in Luzon and Visayas. On the Independent Power Producer (IPP) contracts,
privatization level reached 73.3 percent (3,355.00 MW out of 4,579.95 MW) of the total contracted
capacities.
The remaining generation asset to be privatized is the Agus-Pulangi Hydropower Complexes in

Mindanao. In the case of IPP contracts, the remaining for privatization are Caliraya-Botocan-Kalayaan
HEPPs, Casecnan, and Mindanao Coal-fired Thermal Power Plant.
The generated revenue from the privatization of generation assets, transmission business, and IPP
contracted capacities stood at around PhP907.8 billion as of June 2021. Actual collection already
reached PhP657.9 billion (augmented by interest income on placements and funds from power
receivables) and exclusively utilized for the liquidation of financial obligations amounting to PhP717.9
billion. The PSALM’s collection is at 100.0 percent on the generating assets and decommissioned
plants privatized. The remaining collectibles and balances are from the IPP Administrators (IPPA) and
transmission concession.
Privatization Schedule
There are eight (8) generating assets still up for privatization with an aggregate capacity of 1,651.1 MW
(Table 56). To date, only the Agus-Pulangi Hydropower complexes remain as the 650-MW Malaya
Thermal Power Plant (MTPP) was successfully privatized last 7 May 2021. Fort Pilar Energy Inc. with a
bid of PhP3.1 billion was the winning bidder for the MTPP whose offer surpassed the minimum offer
price of PhP1.8 billion. The sale of the MTPP is on an “As-is Where is” basis which means that it includes
the 300 MW Unit 1, 350 MW Unit 2 and the underlying land in Pililla, Rizal.
Table 56. INDICATIVE PRIVATIZATION SCHEDULE FOR GENERATION ASSETS (as of June 2021)
Contracted Capacity
Asset Type/Plant Name Bid Date
(MW)
Owned Generating Plants
Agus 1 and 2 HEPP 260.00
For rehabilitation. Privatization subject
to consultation with Congress and
PSALM Board's policy direction.
Pulangi 4 HEPP 255.00
Total 1,001.10
Table 57. INDICATIVE PRIVATIZATION SCHEDULE FOR IPP CONTRACTS (as of June 2021)
Contracted Capacity (MW) / Commencement of Turnover
Grid Plant Name
Energy (GWh) Privatization Process Date
Casecnan Multi-
150.00 2021 2022
Purpose Hydro
Luzon Caliraya-Botocan-
Kalayaan (CBK) 796.63 2021 2022
Hydro
Mindanao Coal-
Mindanao 200.00 2022 2022-2023
Fired
Total 1,146.63
On the appointment of IPPA, an aggregate capacity of 1,146.63 MW is still for privatization. The largest
of which is the 796.63 MW Caliraya-Botocan-Kalayaan (CBK) hydroelectric power plant (Table 57)
accounting for 69.5 percent of the total aggregate capacity.

ENERGY ROADMAPS
4. Continuous improvement of power development planning
The DOE is also mandated to formulate and update the PDP, which essentially contains the electricity
demand and supply outlook of the country. The enhancement in supply expansion planning entails
utilization of tools that assists the DOE in analyzing and quantifying the impacts of recent policy
issuances and programs (e.g. RPS, GEOP, Energy Efficiency and Conservation Act 152) on different
scenario analysis, which include the business-as-usual, clean energy, and flexible power system
scenarios, among others. The DOE is also looking at further enhancing its demand projections to detail
consumption at the sectoral level.
5. Implement automated submission of reportorial requirements
The DOE shall issue a policy that will facilitate the automated submission of reportorial requirements
by power industry participants based on the following guiding principles:
▪ Promote automation and digital transformation through web portal and paperless submission of
reports;
▪ Consistency of the submitted electronic data shall be ensured;
▪ Structured data templates and format shall be established to support the electronic database;
▪ Schedule of submissions and mode of transfer shall be monitored and used as a compliance
and ease of submission index; and
▪ A focal person shall be identified to facilitate official submissions.
The proposed policy shall address submission compliance, redundancies, inconsistencies, and varying
interpretations of power-related data submitted to the DOE by the participants. It will also require the
submission of additional data and information, which shall be necessary for the continuous development
of the WESM and the impending reserve market operation.
6. Establish an integrated power sector database
As mandated under EPIRA, the DOE is required for the timely and complete provision of information
that can be achieved through a single unified database or system that covers all the power industry sub-
sectors. Undertaking this initiative will involve all the concerned power sector stakeholders from
generation up to distribution.
To date, the DOE’s Electric Power Industry Database Management System (DEPDMS) warehouses
market data and grid information. This is in collaboration with both MO and SO. The vision is to have
a systematic and a central system that processes information from power industry stakeholders in a
safe, secure, timely, and efficient manner.
Database expansion enables the DOE to generate periodic reports containing valuable insights and
conclusive information that will support decisions of the national government for the power sector.
Initiatives were undertaken by the DOE to establish a platform for the online submission of GenCos,
DUs, and RES monthly operation reports to the DOE. These include FGD in March 2021 for the pilot
testing of the web portal for online submission and public consultation in July 2021 on the draft DC for
the effective and efficient management of the various DOE reportorial requirements, among others.
X. INVESTMENT AND EMPLOYMENT OPPORTUNITIES

The energy sector’s course of pursuing the Clean Energy Scenario (CES) translates to putting in place
the required investments in power generation to expand existing supply. This path runs parallel to
achieving sustainable supply security in the long-term.
152
Republic Act No. 11285 “An Act Institutionalizing Energy Efficiency and Conservation, Enhancing the Efficient Use of Energy, Granting
Incentives to Energy Efficiency and Conservation Projects”

ENERGY ROADMAPS
Table 58 shows the capacity addition per scenario including the equivalent investment requirement. In
the Reference Scenario (REF), the country’s total capacity addition of 69.4 GW by 2040 requires an
investment of PhP5,233.7 billion (USD 104.7 billion). The CES being the scenario to be pursued
indicates the entry of more RE-based technologies with a total capacity addition of 92.3 GW by 2040,
higher by 22.9 GW or 33.0 percent compared to the REF. The estimated financing requirement is seen
to be more costly by 10.1 percent, reaching PhP5,762.6 billion (USD 115.3 billion).153
Table 58. INVESTMENT REQUIREMENTS FOR GENERATION PROJECTS (PhP Billion) at 2020 Prices
Reference Scenario (REF) Clean Energy Scenario (CES)
Technology Capacity Addition Capacity Addition
Investment Cost Investment Cost
by 2040 (MW) by 2040 (MW)
Coal 2,641 290.51 2,641 290.51
Natural Gas 20,810 960.60 15,430 744.30
Oil-based 381 13.33 381 13.33
Renewables 45,588 3,969.28 73,868 4,714.47
Total 69,420 5,233.73 92,320 5,762.6
Note: The Build Cost Assumptions per Technology in PhP Million per MW capacity are:
Coal – PhP110 / Internal Combustion Engines (ICE) Diesel–PhP35; / Combined Cycle Gas Turbine – PhP50; /
Open Cycle Gas Turbine– PhP25; / ICE-LNG–PhP35; / Hydro–PhP141.6; / Geothermal – PhP225.15; / Biomass – PhP125;
Solar – PhP37.25 in 2021 down to 32.5 in 2040 (0.7 percent annual average decrease);
and Wind – PhP62.25 in 2021 down to 57.5 in 2040 (0.4 percent annual average decrease).
The entry of additional generating facilities also necessitates the construction of new transmission
projects to increase the grid’s capacity and eventually accommodate these new power plants. In the
next ten years, the transmission sub-sector requires at least PhP348.3 billion (USD 7.0 billion) for the
rehabilitation, expansion, and development of new substations, transmission backbones and island
interconnections (Table 59). Note that the estimated investment does not represent the total financing
requirements, particularly for proposed projects from 2026 to 2030, since only the projects with
available estimated project cost have been considered, while others still need further assessment and
studies.
Table 59. INVESTMENT REQUIREMENTS FOR TRANSMISSION PROJECTS (PhP Billion)

Luzon Visayas Mindanao Total
Proposed Projects (2021-2025) 87.42 71.90 33.14 192.46
Proposed Projects (2026-2030) 13.05 90.22 52.62 155.89
Total 100.47 162.12 85.76 348.35
Source: Draft Transmission Development Plan 2021-2040
Table 60. ESTIMATED JOB GENERATION IN POWER GENERATION PROJECTS

Estimated Job / MW REF CES
Operation Capacity Capacity
Type of Plant Additional Additional
Construction and Addition by Addition by
Jobs Jobs
Maintenance 2040 (MW) 2040 (MW)
Coal 2.50 0.65 2,641 8,319 2,641 8,319
Natural Gas 2.73 0.13 20,810 59,517 15,430 44,130
Oil-based 2.73 0.13 381 1,090 381 1,090
Geothermal 24.55 1.85 480 12,672 480 12,672
Hydropower 8.33 0.55 11,647 103,425 16,397 145,605
Wind 8.00 1.93 1,584 15,729 11,387 113,073
Solar 10.83 1.70 31,571 395,585 45,118 565,329
Biomass 9.80 7.75 306 5,370 486 8,529
Total 69,420 601,707 92,320 898,747
Notes: 1. Construction multiplier based on EPNS submission except for biomass-fired plant. Estimate based on 2013 Research Study
by EPPB titled "The Contribution of the Power Generation Industry to Employment Generation."
2. Operation and maintenance multiplier based on the 2013 DOE-EPPB Study.
3. Construction period varies per plant technology
Apart from expanding the country’s supply, a positive spillover effect with the entry of new generation
capacities is job and employment creation. The estimated jobs created in each type of plant per scenario
is highlighted in Table 60.
153

ENERGY ROADMAPS
E. ENERGY EFFICIENCY AND CONSERVATION
Transitioning to an Energy
Efficient Economy Bright Spots in the EEC Act of 2019
The Philippines is making progress in scaling up ▪ Energy efficient or “green”
clean and sustainable energy through the
businesses or establishments will
implementation of the Energy Efficiency and
Conservation Act of 2019 or Republic Act (RA) enjoy fiscal incentives such as income
11285 and its Implementing Rules and Regulations tax holiday and duty-free
(IRR). Said Act boasts the initiatives to institutionalize importation;
energy efficiency and conservation (EEC) as “A Way
of Life for All Filipinos.” It also aids the country’s ▪ Inefficient products/equipment will
compliance to the United Nation (UN) – Sustainable
now be “weeded out” of the market
Development Goal (SDG) on Clean Energy (SDG 7)
and Climate Action (SDG 13), as well as to our through the Minimum Energy
Nationally Determined Contribution (NDC) to the Performance (MEP) standards for
Paris Agreement, which sets a 75.0154 percent the commercial, industrial, and
reduction in greenhouse gas (GHG) emissions by transport sectors, and energy-
2030 relative to the business-as-usual (BAU) consuming products covering
scenario.
appliances, lighting, electrical
With EEC policies and measures in place, equipment, and machinery, and the
government expects to see a more manageable Mandatory energy labeling for
energy demand resulting in the deferment of products, devices, vehicles, and
additional power capacities and energy equipment.
infrastructures and facilities. Other gains include
environmental health (decrease in GHG emissions) ▪ All new building will now be “green
and creation of green jobs and investments for the
buildings”, in compliance with the
economy.
DOE Guidelines on Energy
To promote a culture that embraces energy Conserving Design on Buildings
efficiency as a “way of life,” following are the Designated establishments / DEs
developments in the implementation of the Act and (based on their energy consumption
its IRR:
threshold) are now required to
regularly submit their energy
Implementation of the EEC Act of 2019. The Inter-
Agency Energy Efficiency and Conservation consumption reports to the DOE, as
Committee (IAEEC) was created to evaluate and well as the appointment of Certified
approve the government energy efficiency projects Energy Conservation Officer/s or
and provide strategic direction in the implementation CECO (for Type 1 establishments) or
of the Government Energy Management Program Certified Energy Manager/s (for
(GEMP). To do this, the IAEECC issued Resolution Type 2 establishments)
No. 1, s. 2020 titled “Directing All Government
Agencies, Including the Local Government Units
(LGUs), and Foreign Service Posts, to Comply with
the Government Energy Management Program,
Ordering the Department of Energy to conduct
Energy Audits and Spot Checks, and Submit
Proposed Improvements to the GEMP.”
154
The GHG reduction target of 75.0 percent will be met through conditional (72.3 percent) and unconditional (2.7 percent) commitments

ENERGY ROADMAPS
The GEMP outlines EEC practices that should be

enforced in all government offices including LGUs to
meet the 10.0 percent reduction in monthly consumption
of electricity and petroleum products. A DOE-authorized
Energy Audit Team (EAT) will oversee the government’s
DOE: Walk the Talk compliance to the GEMP.
The DOE certificate of savings is issued only to agencies

To serve as model for other
which have undergone the energy audit process and
government agencies in have complied with the submission of Monthly Energy
promoting best practices in EEC, Consumption Reports (MECRs) and Monthly Fuel
Consumption Reports (MFCRs).
the DOE implemented a retrofit
project wherein linear and For 2020 to first semester 2021, the DOE-EAT conducted
90 energy audits (69 for 2020 and 21 for the first half of
compact fluorescent lamps were
2021). Energy savings certificates issued from energy
replaced by 16W linear LED and audits showed total electricity savings of 11,616,888.6
non-inverter air- conditioning kWh equivalent to PhP99.8 million of monetary savings.
units (ACUs) with inverter-type
Likewise, the DOE inked a partnership with the
ones. Department of Science and Technology (DOST) to jointly
cooperate and undertake the project on “GEMP
Compliance Assessment of Local Government Units’
For the lighting retrofit, the DOE Offices.” In line with this, the DOE identified 65 LGU
offices for assessment to determine the present
expects to see annual energy operating conditions and their compliance to GEMP.
savings of 65,511.91 kWh (or
Energy Efficiency and Resiliency of Electric
PhP834,143 in monetary
Cooperatives’ (ECs) Power Line Distribution Systems
savings) with a 2.82-year and Facilities. The DOE and the European Union (EU)–
payback period. The ACU Access to Sustainable Energy Programme (EU-ASEP)
conducted a study on energy efficiency opportunities in
retrofit, with a payback period of mini-grids using diesel generators by the National Power
4.75 years, will save the Corporation-Small Power Utilities Group (NPC-SPUG) or
Department about 393,708 independent power producers. The study seeks to
establish energy efficiency programs for both distribution
kWh of electricity and PhP4.7 and power plant performance parameters.
million in funds.
Establish Cross Sectoral Energy Performance and
Rating System. In 2020, the DOE conducted consultative
meetings on two (2) important policies for energy
performance and labelling program, which were
subsequently signed on 15 June 2020:
Department Circular (DC) 2020-06-0015 “Prescribing the Guidelines of the

Philippine Energy Labeling Program (PELP) for Compliance of Importers,
Manufacturers, Distributors and Dealers of Electrical Appliances and other
Energy Consuming Products (ECPs)”
Department Circular (DC) 2020-06-0016 “Prescribing the Minimum Energy

Performance for Products (MEPP) covered by the PELP for Compliance of
Importers, Manufacturers, Distributors, Dealers and Retailers of ECPs”

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Initially, the PELP covers air conditioning units (ACUs), refrigerating appliances, television sets and
lighting products, such as compact fluorescent lamps (CFLs), double-capped fluorescent lamps (DFLs),
single-capped fluorescent lamps (SFLs), lamp ballasts and light emitting diode (LED) lamps. On the
other hand, the MEPP covers window- and split-type room air conditioners (RACs), refrigeration units
(single door, two-door manual defrost and frost-free units) and lighting products.
The PELP Implementing Guidelines were

developed to cover the particular product
requirements (PPR) and the Code of Practice
on Energy Labeling (COPE) of the ECPs, the
registration procedures, enforcement,
monitoring and verification, as well as serves
as compliance mechanisms for
manufacturers, importers, distributors,
dealers and retailers of ECPs. These
guidelines were signed and approved on 11
May 2021 and published in the Daily Tribune
and Business World on 03 June 2021.
A new and enhanced energy label for

products has been developed which features
the star rating system for easy reference in
comparing efficiency of ECPs. The star
rating is equivalent to the product’s energy
efficiency performance rating (EEPR)
dependent on the Cooling Seasonal
Performance Factor (CSPF) for ACUs,
Energy Efficiency Factor (EEF) for
refrigerating appliances and television sets,
and efficacy for lighting products. Also
included in the labels are information on
estimated energy consumption and the
embedded QR code for the end-user’s
reference.
The web-based Online Application and Database System for the PELP, GEMP and the Energy
Database System for Sectors (EDSS) will introduce innovative processing of services from application
of requests (e.g., company/product registration, issuance of energy labels), downloading of PELP forms,
approved labels, submission of energy consumption data/reports, web-based processing, real-time
request (e.g. product information, calculated energy consumption data), and monitoring of status of
applications/submissions, upgrading of database and calculation of approximate energy savings from
PELP, GEMP and EDSS implementation.
For the company registration procedure under the PELP Online Portal155, applicants shall register their
companies whose products and equipment are covered in the program and its PPRs, including both the
manufactured and imported products. The activity starts with the applicant requesting for an Order of
Payment through an on-line form to be filled out through a link found in the DOE Website. The applicant
pays the processing fee for application and submits all the pertinent documents to the DOE through a
link to the PELP Online System. Upon evaluation of completeness and correctness of submitted
documents, company application is approved and included in the Company Registry. The applicant is
then notified of the evaluation results. For the Product Online Registration, an advisory will be issued
as to when it will be available.
On the other hand, the EDSS is the database developed by DBP Data Center Incorporated in line with
the requirements of the DOE to Designated Establishments (DEs) for the reporting of their annual energy
155 The Company Online Registration platform was launched on 12 August 2021.

ENERGY ROADMAPS
consumptions. This includes the migration of form submissions from manual to online through a
dedicated user interface for the DEs.
Information, Education and Communication (IEC) Campaign on EEC Policies, Programs and Best
Practices. The DOE intensified its IEC Campaign efforts through the conduct of online seminars,
workshops, fora, boot camps and energy briefings on various policies and guidelines of the EEC Act.
The DOE Field Offices (Luzon, Visayas and Mindanao) have also been proactive in mainstreaming EEC
in regional communities.
The DOE currently has three (3) levels of information campaign activities, namely:
1. #EPowerMo provides the basic know-how on

energy utilization covering #ESafety,
#ESecure, and #EDiskarte;
2. #EnergyAbility provides the call or invitation

to organize and make energy efficiency and
the use of renewable energy and other
innovative technologies (including ICT) as a
“way of life” and
3. #EnerhiyangAtin which points to the direction

or goal towards energy security, self-
sufficiency and accountability from all energy
users and industry players.
The Energy Efficient Green

Building Award was held in
December 2020 (via virtual
platform) as a culminating
activity of the National Energy
Consciousness Month. This
award is given to government
agencies and commercial
building establishments,
which implemented/
promoted an energy efficient
building in compliance with
the Philippine Green Building
Code and the DOE Guidelines
on the Energy Conserving
Design of Buildings.
For 2020, the Outstanding Award for Small/Medium Building Category was awarded to Hyundai Cebu
South Dealership and Botanika Nature Residences. On the other hand, the Outstanding Award for
Large Building Category was granted to 11 building establishments. From these awardees, eight (8)
were nominated to the ASEAN Energy Efficiency Award. As a result, the Arthaland Century Pacific
Tower received the 2nd Runner-up award under the Green Building Award, while the Tropical Building
Award was given to the Bonifacio High Street.
To further promote EEC projects, the DOE will work on the guidelines for the EEC Excellence Award.
Integrate and Mainstream EEC at the LGU level. A Memorandum of Agreement (MOA) was signed
by/among the DOE, Ateneo de Manila University (through the Ateneo School of Government) and the
Local Government Academy on enhancing the LGU capacities on EEC through relevant competency-

ENERGY ROADMAPS
based training programs. The competency-based capability-building support for LGUs will help develop
and sustain local energy efficiency and conservation plans, programs and activities.
Integrate EEC in the Learning and Education System. To implement RA 11393156 or “An Act
Authorizing Higher Education Curriculum Development and Graduate Training in Advanced Energy and
Green Building Technologies, and Appropriating Funds Therefore,” the DOE is working with the
Commission on Higher Education (CHED) for the formulation of its IRR. The IRR will be subject to
public consultation and expected to be issued by third quarter of 2021.
Meanwhile, the Technical Education and Skills Development Authority (TESDA) has prioritized the
training regulations for the certification of energy conservation officers in compliance with DC 2021-01-
001157 on the “Guidelines for the Qualifications, Assessments, Registration and Certification of
Energy Conservation Officer (CECO), Certified Energy Manager (CEM), and Certified Energy
Auditor (CEA).” The training regulations and modules, which are aligned with the Philippine
Qualifications Framework, will be available for possible adoption by end-2021.
The overall certification process for CEMs is being developed in coordination with the CHED, together
with other concerned energy efficiency practitioners. Meanwhile, the development of the training
courses for CEAs will be in close coordination with relevant stakeholders, including those from the
engineering sector and training institutions.
Enhanced Demand Side Management (DSM) Mechanism. The EEC Act mandates the formulation of
a DSM Program for the electric power industry to promote the reduction in energy consumption through
an effective load management. The Program seeks to migrate power demand from peak to off-peak
periods and encourage energy consumers to efficiently manage their energy loads.
The DOE, with assistance of the EU-ASEP, conducted a series of meetings to discuss the development
of the DSM guidelines for the electric power industry. The DSM guidelines will cover programs for
energy consumers from the commercial, industrial and transport sectors, as well as directly connected
customers, contestable customers, and all other electricity consuming sectors. A series of IECs/public
consultations will be conducted once the guidelines has been drafted and finalized. Further, the DOE
will likewise partner with the USAID-Energy Secure Philippines Project on the conduct of further studies
on the DSM.
Financing Models for EEC Projects. The DOE implements DC 2021-05-0001158 on the “Guidelines
for the Endorsement of EEC Projects to the Board of Investments for Fiscal Incentives,” which
establishes the rules and procedures on the endorsement of projects to the Board of Investment (BOI)
for registration and grant of fiscal incentives to proponents such as income tax holiday and pioneer
incentives. To fully implement this initiative, efforts are ongoing to develop a framework on financing
programs of EEC projects.
Cross Sectoral Policy

Development. Under DC 2020-
12-0026159, the DOE adopted the
“Guidelines on the Energy-
Conserving Design of
Buildings,” which encourages
and promotes energy
conserving design of buildings to
reduce energy use with due
regard to cost effectiveness,
building function, comfort,
health, safety and productivity of
156
Issued on 22 August 2019
157
Issued on 11 January 2021
158
159
Issued on 22 December 2020

ENERGY ROADMAPS
the occupants. This covers new buildings and its systems, including any expansion/ modification of
existing buildings and systems with designed connected electrical loads of at least 112.5 kilovolt-amps
(kVA) or at least 10,000 square meters (m2) in total gross floor area (TGFA).
In compliance with the guidelines, there are now 162 Green Building Projects across the country (Table
61):
Table 61. GREEN BUILDING PROJECTS
Organization Number of Green Building Projects
Building for Ecologically Responsive Design
66
Excellence (BERDE)
Philippine Green Building Council (PhilGBC) 8
Philippine Green Building Initiative (PGBI) 88
Total 162
These projects with total coverage floor area of 198,303 m2 will generate potential energy savings of
19,830,300 kWh of electricity, translated to monetary savings of PhP218 million and reduction of 14,000
metric tons (MT) of GHG emissions from the atmosphere.
Of the PhilGBC projects, seven (7) are registered as Advancing Net Zero Energy Projects. Net Zero
buildings/facilities use resource-efficient technologies, renewable energy solutions, and passive design,
such as the use of natural light and ventilation to reduce costs associated with artificial lighting, heating,
and cooling.
Create a Business Toolkit for Energy Service Companies. For the Energy Service Company (ESCO)
business toolkit, the DOE will develop a program for energy services, incorporating all the systems,
processes, and contracts for the use of the commercial, industrial and transport sector based on
internationally recognized good practices. The toolkit includes standard project development
processes, vetted technology partners/contractors, guaranteed savings and suitable financing scheme.
As provided in DC 2020-09-0018160 on the “Guidelines in the Administration and Classification of

ESCOs,” these service companies are now required to be registered and accredited by the DOE. As
of April 2021, the country now has 43 registered ESCOs providing total investments of PhP689.1 million,
while producing PhP209.8161 million in energy savings as shown in Table 62.
Table 62. INVESTMENTS FROM ESCO PROJECTS

Project Cost Energy Savings
Project Name
(Million PhP) (kWh/year)
Office Building Air-cooled Conversion 77.00 2,565,696
Chilled Water Plant Retrofit 47.50 1,939,798
Water-cooled Packaged A/C System Retrofit 101.50 2,674,736
Replacement of Centrifugal Water-Cooled
19.00 635,000
Chiller
Chilled Water Plant and BMS Retrofit 258.00 5,212,000
Conversion of Air-cooled Chiller Plant to
34.51 4,380,000
Water-cooled Chiller Plant
Industrial Refrigeration Retrofit 56.00 2,564,640
Replacement of Standard efficiency motors
82.16 3,010,200.00
(SEM) with high efficiency motors (HEM)
Lighting System Retrofit 13.38 330,341.52
Total 689.05 23,312,411.52
Note: The above-mentioned sample EE Projects were undertaken by Energy Service Companies (ESCOs) with the corresponding
investment cost and equivalent energy savings.
Cross Sectoral Energy Consumption Monitoring. Based on Memorandum Circular (MC) 2020-05-
001162, all designated establishments (DEs) in commercial, industrial and transport sectors shall
regularly submit energy consumption reports to the DOE. In submitting such report, the DOE provides
160
Issued on 09 September 2020
161
23,312,411.52kWh x PhP9/kWh = PhP209,811,703.68 of energy savings. Rate Assumption: PhP9/kWh
162

ENERGY ROADMAPS
the prescribed forms on the Annual Energy Efficiency

and Conservation Reports (AEECR) and the Annual
Energy Utilization Report (AEUR). Categorization of Designated
Establishments based on their
Further, the DEs are required to appoint their respective energy consumption threshold:
CECO (Type 1 Category) or a CEM (Type 2 Category).
As of April 2021, there 330 CECOs and 383 CEMs in the Type 1: Annual energy
country.
consumption of 500,000 to
In terms of project implementation, various EEC projects 4,000,000 kWh
worth PhP15.3 billion in investments were implemented
by the DEs from commercial, industrial and transport Type 2: Annual energy
sectors. These projects saved the country of about consumption of more than
120,462,478 kWh in electricity savings or PhP1.1 billion 4,000,000 kWh, or those that are
in monetary terms (at PhP9/kWh). Projects implemented classified as “energy intensive
include acquisition of new equipment, conversion to industry sectors” such as steel
efficient lighting systems, electrical system and metal, cement, sugar,
improvements, equipment maintenance, automation of electronics, mining, and business
plant processes, system rehabilitation and upgrade, and process outsourcing
adoption and installation of renewable energy systems.
Table 63 shows the EEC projects based on submission
from 3,700 DEs as of 15 April 2021.
Table 63. EEC PROJECTS OF DEs

Type of EE Projects Quantity Total Investment Cost (PhP) Total Savings (kWh / Year)
Acquisition of New
127 1,830,668,000.00 48,254,906.00
Equipment
Conversion to Efficient
172 188,389,000.00 28,088,560.00
Lightings
Electrical Systems
12 57,268,000.00 1,903,914.00
Improvement
Equipment Maintenance 12 9,016,000.00 96,682.00
Process Plant Automation 5 17,038,000.00 1,523,352.00
Renewable Energy
23 777,420,000.00 17,970,267.00
Projects
System Rehabilitation and
124 12,385,695,000.00 22,624,797.00
Upgrade
Total 475 15,265,494,000.00 120,462,478
PLANS AND PROGRAMS
Energy efficiency, sometimes referred as the fifth fuel as reduced demand means a decrease in
additional supply requirements, provides a most cost-effective and an environment-friendly fuel to help
build greener and more vibrant economies. To reach the country’s EEC goals, the DOE will not only
sustain but accelerate efforts and initiatives to bring in real and positive changes in the lives of energy
consumers and stakeholders.
The EEC Roadmap was designed to be a working document, serving as a reference tool for the
formulation and implementation of policies and programs, technology and standards development, and
information/promotional activities.
The objective of this Roadmap is to build on the collective priorities and strengths of the country’s EEC
goal on reducing energy intensity and consumption, as well as achieve the Clean Energy Scenario
(CES) of the Plan Update. It identifies a variety of paths to help all energy consumers and stakeholders
seize the EEC opportunities available in the country.

ENERGY ROADMAPS
Figure 85. ENERGY EFFICIENCY AND CONSERVATION ROADMAP
The framework of the EEC Roadmap for the medium- to long-term planning horizon focuses on two (2)
sector priority areas, namely on Strengthening and Sustaining of EEC policies and initiatives.
Defined under each priority areas are the specific outcomes and strategies to ensure the timely and
efficient delivery of EEC priorities of the country.
Strengthening EEC Initiatives

(For the Government, Transport, Industrial and Residential Sectors)
Energy Efficiency and Resiliency of the ECs’ Power Line Distribution Systems and Facilities. To
ensure efficiency and resiliency of power infrastructures, the DOE will conduct a study on the NPC-
SPUG areas and the ECs’ distribution lines for assessment on the integrity and efficient operation of
these facilities and infrastructures with respect to energy security and weather-proofing as part of the
nine-point energy agenda of the DOE. Moreover, a baseline study on EEC of the power distribution line
system is targeted within the medium-term horizon.
Information, Education and Communication Campaign on EE&C Policies, Programs and Best
Practices. Information barriers can discourage developing countries from increasing their energy
productivity. In line with this, the DOE will continue to disseminate information and increase awareness
on EEC through the use of audio-visual presentations, radio, social media platform, flyers and brochures.
The conduct of conferences, fora, seminars, public consultations/presentations and company briefings
will also be in the agenda.
The holding of the Annual Energy Efficiency Excellence Awards during the National Energy
Consciousness Month (NECM) will be a regular program to recognize individuals and businesses
complying with EEC practices and technologies.
Integration and Mainstreaming of EEC at the LGU and in the Learning/Education System. The
GEMP will continue to be enforced in all government agencies including LGUs. Assessment of
government compliance to IAEECC issuances on GEMP will be done through energy audits and energy
spot checks.
Capacity building activities will be provided to LGUs to assist them in the formulation of the Local Energy
Efficiency and Conservation Plan (LEECP) and localized EEC policies, as well as development and
implementation of the Government Energy Efficiency Projects (GEEPs).
With the issuance of the “Guidelines on Energy Conserving Design for Buildings,” the DOE will promote
such through a nationwide IEC for greater adoption and implementation by the LGUs in the issuance of
building permits.

ENERGY ROADMAPS
For the academe, coordination activities will be a continuing activity with CHED and other Technical
Working Group (TWG) members and stakeholders on the development of the IRR of RA 11393, which
requires the development of appropriate guidelines for the crafting of the curriculum on “Advance
Energy Systems and Green Building Technology.”
Enhanced Demand Side Management Mechanism. The DSM Program aims to lower electricity
demand, which in turn avoids the cost of building new power plants and transmission lines, as well as
modify consumers’ demand for energy.
The DSM Circular of the EEC Act will be developed in coordination with various relevant stakeholders
and government agencies. Further, the DOE will collaborate with ESCO’s and financial institutions in
implementing EEC projects and technologies.
The DC 2021-05-0011 or the “Guidelines for the Endorsement of Energy Efficiency Projects to the BOI
for Fiscal Incentives” will support the government initiatives on DSM.
Collaboration with Stakeholders for Expanded Financing Models on EEC Projects. To address
existing barriers on financing of EEC projects, the DOE will collaborate with government financing
institutions (GFIs) and other private commercial banks to open-up financing loan windows for this
purpose. Likewise, financing capacity building seminars/fora for GFIs and other commercial banks will
be conducted, as well as facilitate the provision of incentives (fiscal and non-fiscal) as part of the DOE
agenda.
Create Business Toolkit for the ESCOs. Collaboration with financing institutions/entities, EEC
technology suppliers, architectural and engineering firms, and other relevant service providers will be
a continuing initiative to develop the tool kits for the ESCOs.
Energy Efficiency Program for Air and Sea Transport. This initiative is covered by the DOE MC 2020-
05-001 “Directing Establishments under Commercial, Industrial and Transport Sectors to Submit
Energy Consumption Reports.” For the medium to long-term planning horizon, the DOE will conduct
IECs for the air and sea transport sectors on matters pertaining to their compliance to EEC Act and
governing circulars issued by the DOE.
Monitoring will also be done to establish the list of air and sea transport companies relative to their
compliance to the MC.
Sustaining EEC Initiatives

(For the Government, Transport, Industrial and Residential Sectors)
Institutionalize EEC Knowledge Management System (KMS) and Develop Advanced Research
and Development (R&D) Capacity for EEC. To sustain the gains from EEC initiatives, the long-term
strategies will focus on KMS activities and advancing R&D capacities. The KMS will be done through
institutional capacity building, development of resource database, strengthening of advocacy initiatives,
sharing of best practices and promoting consumer engagement.
On the other hand, enhancing the country’s R&D on EEC will serve as a game-changer in the way we
progress towards meeting the clean energy goals of government. The DOE acknowledges the need for
cooperation and networking with the international and local partners to ensure synergies on key and
innovative energy technologies/practices, including the financing opportunities for EEC innovations in
the country.
Strengthening and Sustaining EEC (For the Commercial Sector)
In providing the appropriate market signal on EEC for the commercial sector, the following activities are
included in the EEC Roadmap:

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▪ Establish a mandatory performance disclosure requirement for commercial buildings on sale or

lease;
▪ Develop appropriate policy circular in collaboration with relevant stakeholders in the building
construction and real estate industries;
▪ Monitor sales of household appliances like refrigerator, freezer, room air-conditioner and LED
Lamps, and vehicles;
▪ Implement the DC 2020-10-0023 “Prescribing Policy Framework for the Development of the Fuel
Economy Rating, Fuel Economy Performance, and Related Energy Efficiency and Conservation
Policies for the Transport Sector and other Support Infrastructures” (for proper choice by
consumers on most fuel-efficient vehicles) and DC 2016-04-0005 (Philippine Energy Standards
and Labelling Program) for the most energy-efficient appliances.
In strengthening policies, programs, and institutional structures, the development of guidelines required
under the EEC Act and its IRR is programmed for the medium- to long-term planning horizon. Moreover,
capacity building activities will be conducted for the EEC officers and focal persons in the commercial
sector.
For mobilizing private sector participation in EEC initiatives, the Roadmap has identified the following
activities:
▪ Partner with EEC Associations or Organizations relevant to the needs of the sector/industry;
▪ Participate in any private initiated programs, projects, and activities; and,
▪ Conduct of regular conference or Fora for sustainable engagement with the private sector to
pursue EEC programs of the government.
And to keep up with the growing challenges and opportunities in the energy sector, the EEC Roadmap
will be regularly updated for enhancement.
In addition to building a clean energy future, efforts on EEC will bring in “green” investments and
employment opportunities that are critical to help government pump-prime the economy.
In the initial implementation of the EEC Roadmap, a total of PhP15,955 million (USD 319.1 million163)
was infused in the economy. These investments came from the projects of DEs and ESCOs covering
technologies such as efficient lighting, water-cooled packaged A/C system and high efficiency motors
(Table 64).
Table 64. INVESTMENT OPPORTUNITIES

DOE Program Investments (PhP Million)
Designated Establishments 15,265.50
ESCOs 689.50
In terms of opportunities for employment, an additional 950164 jobs will be created during the
implementation year based on the total investment costs of EE Projects done by the ESCO and DEs in
2020. Moreover, the continuous induced energy savings of about PhP300 million per year will provide
an additional 42165 jobs a year for the next 20 years. In terms of Green Buildings, its potential savings in
2020 will result in additional 30 jobs166 per year for the next 20 years.
163
164
Calculated based on the total investment cost of EE Projects in USD with assumption of 20 jobs/ USD Million due to EE improvements
and 17 jobs/USD Million if BAU is considered. Net jobs are the difference between EE improvements and BAU job creation
165
Calculated based on the projected long-term savings induced by the EE Projects minus BAU. Values are based on the assumption
that EE Improvements provide 17 jobs per USD Million, while BAU provide 10 jobs per USD Million (USD=PhP50.37).
166
Calculated based on the projected long-term savings induced by the EE Projects minus BAU. Values are based on the assumption
that EE Improvements provide 17 jobs per USD Million, while BAU provide 10 jobs per USD Million.

ENERGY ROADMAPS
F. ALTERNATIVE FUELS AND EMERGING

TECHNOLOGIES
Mainstreaming the Alternative Fuels and

Energy Technologies (AFETs) continues
to be a work in progress in pursuit of
diversifying energy mix and greater
supply security. Apart from reducing
dependence on imported fuels, it also
supports the global commitment to
climate change mitigation. Development
and integration of AFETs in energy
systems offers public with options on
advance energy technologies and more
environment-friendly energy fuels.
As a step towards energy security goal,

the DOE has engaged in strong
collaboration with partner stakeholders
from both government institutions and
private sector. Research and studies are being pursued, new policies and enabling mechanisms are
formulated, and policy gaps are identified for improvements. These contribute to the creation of a
conducive business environment for the private sector participation.
Policy Formulation and Issuances. The DOE issued Department Circular (DC) 2020-10-0023167
prescribing the “Policy Framework for the Development of the Fuel Economy Rating, Fuel Economy
Performance, and Related Energy Efficiency and Conservation Policies for the Transport Sector and
Other Support Infrastructures,” which encompasses all manufacturers, importers, distributors, and
dealers of vehicles in the Philippines. Under the DC, the development and operation of Electric Vehicle
(EV) and Electric Vehicle Charging Station (EVCS) shall be structured to facilitate safe operation and
growth, while ensuring equitable non-discriminatory and open access for all. The DC also seeks to
empower the consumers in choosing fuel-efficient transport vehicles, realize energy savings, reduction
of fuel consumption, phase out of fuel inefficient transport vehicles, and the reduction of greenhouse
gas emission (GHG).
A complementing policy framework was also issued, the DC 2021-07-0023168 providing for a “Policy
Framework on the Guidelines for the Development, Establishment, and Operation of EVCS in the
Philippines” or referred to as the EVCS Policy Guidelines. The guidelines cover activities related to the
establishment, use, and operation of EVCS. In preparation for the widespread adoption of EVs, the DOE
has taken the initiative, as outlined in this DC, to further streamline EV adoption and maximize the
combined economic, social, energy security, and environmental benefits. This is also to consolidate and
harmonize all existing issuances to ensure the safe, efficient operations and system reliability, and to
accelerate investments in EVCS in the country.
The DOE likewise extended its collaborative efforts to partner agencies in support to the formulation
and adoption of policies related to AFET through the provision of inputs/ recommendations on the
following:
▪ Philippine National Standards (PNS) promulgations set by the Department of Trade and
Industry-Bureau of Product Standards (DTI-BPS) related to Road and EVs, EVCS, Safety
Management Systems, Intelligent Transport System, Luminaries and Lamp Holders, Rotating
167
Issued on 22 October 2020
168
Issued on 09 July 2021

ENERGY ROADMAPS
Electrical Machines, and household and similar electrical appliances, which may be used as
reference in setting energy performance requirements for energy consuming products.
▪ ASEAN Low Carbon Energy Program’s (LCEP’s) “Adoption of Test Standards for Electric
Motors” Report that recommends and supports minimum and high energy efficiency
performance standards for electric motors. The draft report provided recommendations to five
(5) ASEAN countries, including the Philippines, which covered the energy efficiency component
of ASEAN's LCEP, to adopt relevant international standards in support to the development and
implementation of a minimum energy performance standard (MEPS) and labeling program for
induction motors.
▪ Determining Green Routes under the Local Public Transport Route Plan (LPTRP). An inter-
agency collaboration that discusses the proposed United Nations Development Programme
(UNDP) activity, which is part of the Public Utility Vehicle Modernization Program (PUVMP) of the
Department of Transportation (DOTr). It aims to provide safe, efficient, clean and quality public
transportation. The LPTRP is instrumental to enabling low carbon transport, creating a planning
and policy environment at local government level, and potentially expanding the market space
for entry of low emitting road-based public transport. It also has the power to improve public
transport and integrate it to land use strategies to make the system more efficient and encourage
multimodality.
▪ Assimilation of Low Carbon Urban Transport System in the Philippines to DOTr’s 2020
Annual Work Plan and the Comprehensive Compilation, Analysis, and Recommendation of
Policies and Regulations. The project’s objective is to create an enabling environment for the
commercialization of low carbon urban transport systems including EVs and hybrid electric
vehicles (HEVs) in the Philippines.
Legislative Advocacy. Senate Bill (SB) 1382 and House Bill (HB) 4075 169 were drafted in 2020
providing the policy and regulatory framework for the EV industry. Both Bills support the
commercialization and local adoption of EVs including the infrastructure requirements particularly the
establishment of EVCS. These Bills envision to mainstream the use of EVs in the country by bringing
down the acquisition cost through the provision of fiscal and non-fiscal incentives in the local
manufacturing and importation of EVs. The DOE, in its strong support to the legislative initiatives, also
raised its recommendations on the streamlining of roles and responsibilities of respective government
offices as well as additional provisions related to health, safety and environment, government
procurement of EVs and establishment of dedicated offices to address EV-related concerns. After series
of deliberations, SB 1382 referred to as the Electric Vehicles and Charging Stations Act was passed
and approved by the Senate on 31 May 2021.
Partnership / Leveraging. One of the vital steps towards achieving sustainable, more efficient, and
environmentally safe alternative fuels and energy technologies is to gain public and private sectors’
support. In 2020 up to the first semester of 2021, the DOE entered into partnership with the following
national government agencies (NGAs), state universities and private entities to conduct studies and
demonstration of energy technologies:
▪ Memorandum of Agreement (MOA) between the DOE and Cavite State University (CvSU) 170
for the conduct of various research and development activities:
a. Prototyping of gym and playground equipment that can harness energy from human
kinetics to produce usable electricity;
b. Actual road performance data gathering of the DOE-EVs and HEVs; and,
c. Development of TESDA-aligned Electric Vehicle Technician Course Module with a National
Certification Level II (NC II).
169
An Act Providing the National Energy Policy and Regulatory Framework for the Use of Electric Vehicles and the Establishment of
Electric Charging Stations
170
Signed on 18 September 2019

ENERGY ROADMAPS
▪ Tripartite MOA171 among the DOE, the Department of Science and Technology - Philippine
Council for Industry, Energy and Emerging Technology Research and Development (DOST-
PCIEERD) and University of the Philippines - Electrical and Electronics Engineering Institute (UP-
EEEl) regarding the Determination of Optimal Placement of EVCS in a Local Public Transportation
System. The agreement aims to establish a framework for research collaboration activities
between the DOE and DOST-PCIEERD for the review, evaluation, monitoring and implementation
of programs under the Science and Technology for Energy Application (STEA). It also intends to
identify appropriate emerging technologies for EVs that are aligned to the needs of the industry
and EV roadmap.
▪ Proposed a MOA with the DOST-Industrial Technology Development Institute (lTDl) for the
project titled "Establishment of Fuel Cell Research and Development (R&D) and Testing Facility."
The proposed project establishes a facility that will be dedicated for the conduct of research and
development (R&D), and performance and durability testing of fuels cell technology, which
include materials for the development and innovation for specific cell components that will
address the current limitations of fuel cells.
▪ Amendment to the MOA with Isabela State University on the use of Auto-LPG for farm
equipment172. The amended MOA allows innovation to the conventional fueled internal
combustion engine used for various farm equipment, such as utilizing Auto-LPG as fuel. The
project is designed to demonstrate that the prototype converted farm equipment will highly
benefit the agricultural sector in Isabela province, which is one of the main producers of rice and
grains in the Philippines.
▪ MOA between the DOE and DOST-PCIEERD on prototyping of solar assisted plug-in electric
motor-powered boat173. The project studies the sourcing of “bangka’s” power from the sun with
the use of solar photovoltaic (PV) panels and storage batteries. The project identifies options of
powering motorized boat (watercraft).
▪ Proposed MOU between the DOE and the DTl-BPS for a closer coordination and collaboration
in the development and promulgation of PNS related to energy efficiency and conservation for
energy consuming products (ECPs), devices, equipment, fuel economy performance for
transport vehicles, alternative fuels, and new and advanced energy technologies.
Prioritization / Promotion. The DOE exerted efforts in securing the support of partner agencies and
stakeholders in the
implementation of AFET
initiatives and drafting of
related policies and
guidelines through the
conduct of Information,
Education and
Communication (IEC),
regular public and inter-
agency consultations/fora.
▪ Conduct of IEC
events. Despite the
unprecedented
onset of COVID-19
pandemic and its
accompanying Virtual Public Consultation on the Proposed Department Circular on the Guidelines
restrictions on for the Development, Establishment, and Operation of EVCS in the Philippines
physical gatherings,
171
Signed on 28 December 2020
172
Signed on 14 February 2020
173
Signed on 10 January 2020

ENERGY ROADMAPS
the DOE remained undiminished in holding 16 IEC campaigns in 2020 and nine (9) in early 2021
through virtual platforms. These include various focused group discussions (FGDs), fora,
consultations, and other promotional events on AFETs participated by local government units
(LGUs), national government agencies (NGAs), academe, private stakeholders, and transport
stakeholders. Apart from the conducted lECs, the DOE also participated in two (2) events to
promote AFETs, namely: the Nissan LEAF Test Drive and the 8th Philippine Electric Vehicle (EV)
Virtual Summit, wherein EVs and HEVs vehicles were featured. Also showcased in the events
were the free charging promo for EVs at the DOE’s EVCS.
Technology innovation paved the way to reach out to prospective participants and conduct of
interaction through available virtual channels, thereby achieving more of the public’s deeper
understanding of the DOE’s AFET programs and services.
▪ Consultation and Collaboration with Stakeholders. The DOE participated in partner agencies’
consultations in drafting their energy-related policies with the aim of integrating the Department’s
concerns for its subsequent harmonization with the over-all government policies and guidelines.
Considerably, the DOE actively involved in the FGDs and public consultations in the
implementation of the DOTr’s Public Utility Vehicle Modernization Program (PUVMP) on the use
of advanced energy technologies in public transport, particularly HEV and EV technologies.
Ensuing collaboration activities with other government agencies, academe, and private agency
partners continue to be in the works, such as the monitoring of existing research initiatives in
coordination with DOST-PCIEERD and academe, particularly state universities and colleges
(SUCs), and provision of technical assessment on the review of AFT applications and technology
innovations.
▪ Technical Assistance and Technology Validation. The DOE, as a member of the Inter-Agency
Technical Evaluation Committee (IATEC) under the DOST-Technology Application and
Promotion Institute (TAPI), conducted technology validation and evaluation to identify energy-
related inventions and innovations that are ready for development, prototyping or
commercialization. Provision of technical assistance/inputs were also extended to project
proposals and project demonstrations from partner stakeholders who seek advice and/or
recommendation for their proposed projects. The types of assistance include technology pre-
screening, technology monitoring and evaluation, evaluation of proposal on sustainable cities with
focus on e-mobility, and other similar project endeavors.
Management of Ongoing Programs and Projects and Technology Demonstration. To ensure

successful implementation of AFETs programs and projects, the DOE regularly monitors the progress
of all projects under MOAs with the following academe and partner agencies:
▪ Isabela State University – Development of a prototype farm equipment fueled with LPG and
demonstration of its viability;
▪ Central Mindanao University – Development of a prototype cookstove for the non-wood-based
biomass (Napier) as fuel;
▪ Cavite State University – Various R&D activities for emerging energy technologies as mentioned
above;
▪ Technological University of the Philippines (TUP)-Taguig, Carlos Hilado Memorial State
College and University of Southeastern Mindanao- Integration of Auto-LPG Technician
Course in SUCs curriculum;
▪ DOST- PCIEERD – Various R&D activities also mentioned above; and,
▪ Bureau of Fire Protection – Development of Emergency Response Protocol (ERP) for alternative
fuels vehicles (AFVs).
Liquefied Petroleum Gas (LPG) as Fuel for Vehicles. In 2020, the DOE continued the conduct of its
regular technical working group (TWG) meetings on the implementation and use of auto-LPG as
alternative fuel for transport. Government regulations and protocols were discussed to harmonize
existing policies and standards to ensure the safe and sustainable use of auto-LPG fuel.

ENERGY ROADMAPS
Correspondingly, regional TWGs were established, through the DOE Field Offices, to facilitate in the
development of recommendations for the drafting of applicable policies and guidelines and to support
the mainstreaming and local adoption of auto-LPG at the regional level.
Promotion of Advanced Next Generation Transportation Technologies. Since the Japanese Non-
Project Grant Aid (NPGA) has been extended to the Philippine government in 2013, the DOE has
implemented the deployment of HEVs and EVs with its supporting EVCS to government agencies and
continuously promotes the technology. Owing to the newness of the technology, the DOE provides
training on the basic operation, maintenance, and electric charging to the new drivers of NGA
beneficiaries. The training also maximizes the pool of drivers that are knowledgeable on the proper
maintenance and operation of the EVs. As part of monitoring activities under the MOA 174, the
performance data of the EVs were gathered and the physical status of the units were likewise checked.
Monitoring of the Market Transformation through the Introduction of the Energy-Efficient

Vehicles (E-Trike) Project. The 3,000 units of electric tricyles (e-trikes) were deployed through 37
Deeds of Donation (DOD) to the LGU and NGA beneficiaries. The units are primarily being used for
public transportation in major cities and tourism sites to increase visibility and promote public awareness
on the advantages of this technology. Since the early 2020, e-trikes have been used by LGUs and NGAs
in one or more of the following COVID 19-related activities:
▪ Distribution of relief
goods/food packages/hot
meals;
▪ Transport of front liners
and health care providers;
▪ Mobile markets/palengke;
▪ Transport of patients for
dialysis and
chemotherapy;
▪ COVID-19 street
Donated e-trikes being used by LGUs and NGAs in Covid-19 related
disinfection; activities.
▪ Enhanced Community
Quarantine (ECQ)
monitoring/checkpoints;
▪ social amelioration
activities; and,
▪ information
dissemination/public
address regarding COVID-
19.
PLANS AND PROGRAMS
The AFET Roadmap, as shown in Figure 86, lays down the framework for the adoption and
commercialization of emerging and efficient energy technologies in the country. It contains the
strategies and measures necessary for the development and deployment of AFETs, the regulatory and
infrastructure requirements, as well as the need for deeper collaboration between and among
government agencies, academe, and private sector.
Signed MOA under NPGA:

174
Lot 1 & 3 with Office of the President (OP) - Proper - 5 January 2018
Lot 1 with PCIEERD - 27 December 2018
Lot 2 & 3 with Philippine National Police (PNP) - 5 July 2018
Lot 3 with Department of Interior and Local Government (DILG), DOST, DOTr, DOT, DTI, DFA, DOF, DBM, DENR, NEDA, PIA, OCD - 18
April 2018

ENERGY ROADMAPS
Medium-Term
Identification of Alternative Fuels and Energy Technologies (AFETs) for Application
Advocate for the passage of legislation on the use of AFETs. To ensure a level playing field and
conducive fiscal and market environment, the DOE continues to advocate for the formulation of a
national policy framework to accelerate the deployment of AFETs and put in place the necessary
infrastructures. Where appropriate and necessary, the DOE will strongly support and provide inputs
and position papers for integration in the proposed legislations and policies.
Figure 86. ALTERNATIVE FUELS AND ENERGY TECHNOLOGIES ROADMAP
Harmonize policies of concerned agencies. Harmonizing policies among government agencies

remain a major undertaking of the DOE. Collaborative review and evaluation on existing and new AFET
policies will be implemented within the medium-term.
Pursue energy efficient technologies. To accelerate penetration of energy efficient technologies, the
DOE is committed to work on the implementation of initiatives in the promotion, monitoring and
facilitation of programs and projects on alternative fuels.
▪ While Auto-LPG is recognized as a viable option for transport fuel, the DOE will work on the
Development of Prototyped Original Engine Manufacturer (OEM) for Auto-LPG Jeepney to
be designed compliant with the PNS for Public Utility Vehicles (PUVs). Apart from supporting the
PUVMP of the DOTr, this initiative showcases and demonstrates the safe use and viability of Auto-
LPG as an alternative fuel for the transport sector. It also offers economic benefits as the price
of LPG is much cheaper and stable as compared with conventional fuels like gasoline and diesel.
Further, Auto-LPG is considered to be safe, clean and environment friendly as it has lower GHG
emissions.
▪ The DOE deems crucial the establishment of charging facility to speed up the deployment of EVs.
The signing of MOA with the DOST-STEA in 2020 tenders the technologies that energize EVs
quicker than the usual charging systems. As such, Field Demonstration of EV Fast Charger
will be a continuing activity of the DOE in support of mainstreaming EVs in the transport and
energy industries.

ENERGY ROADMAPS
▪ The partnership with the Isabela State University explores the possibilities of utilizing LPG as fuel
farm equipment in the agricultural sector. Converting the farm equipment engine using LPG
provides beneficial advances in the agricultural operations as it provides an efficient and faster
way of harvesting and processing agricultural products for countrywide development.
▪ Prototyping of Human Kinetic Energy Harvesting Equipment is another program of the DOE
that aims to use ambient energy for small and mobile equipment, sourced or generated form
human motion. Collaborations with government agencies and the academe are now in the works
for the full development of this project.
Collaborate with private sectors, academe and NGAs on the conduct of market survey/study on
energy consuming products (ECP). Pursuant to DC 2020-06-005 prescribing the Guideline of the
Philippine Energy Labelling Program (PELP) for Compliance of Importers, Manufacturers, Distributors,
and Dealers of Electrical Appliances and Other Energy-Consuming Products (ECPs), the DOE shall
formulate, develop, and update the Minimum Energy Performance for Products (MEPP), Code of
Practice on Energy Labeling of Products (COPE), fuel efficiency testing guidelines, fuel economy
performance and other related policies. Creating the guidelines will be in close collaboration with
relevant stakeholders on the conduct of market survey and study on ECPs through market study and
data gathering.
Long-Term
Preparation of the regulatory and infrastructure requirements of the identified AFETs.
Review, update and formulate energy related policies, guidelines, and standards in for
infrastructure development. The DOE supports policies that contribute to the success of the
implementation of programs and projects relative to infrastructure development on AFETs. Instituting
the regulatory framework for the development of required infrastructure will be prioritized in the long-
term, while existing policy measures in collaboration with government and private stakeholders will be
reviewed and modified as necessary for improvement. Also, the DOE will seek possible areas of
cooperation with other countries that have successfully adopted and mainstreamed the use of AFETs,
EVs and EVCS for transfer of technology and sharing of best practices.
Mitsubishi Motors’ i-MiEV compact all-electric vehicle and charging station located at the DOE Compound in Bonifacio
Global City (BGC), Taguig City
The DOE continues to rally the adoption of EVs and the development of EVCS infrastructure,
harmonization of existing policies and promulgation of uniform and streamlined rules, regulations, and

ENERGY ROADMAPS
standards. A Comprehensive Roadmap on EVs (CEVR)175 will be developed in coordination with relevant
national government agencies and LGUs. Correspondingly, the DOE has organized an Inter-Agency
Working Group for the implementation of EVCS to support the country’s e-mobility roadmap and
deployment strategies.
Scale up the use of AFTs. One of the provisions in the Energy Efficiency and Conservation (EE&C) Act
is the implementation of government-wide “Government Energy Management Program (GEMP),”
mandating all GAs to reduce their monthly consumption of electricity and petroleum products through
efficient use of electricity and fuel conservation of government vehicles, among others. Through this
program, the DOE is considering fleet acquisition of vehicles/shuttles and the savings generated from
GEMP can be used to purchase Next Generation Vehicles with preference for AFVs, such as
biofuels, natural-gas, solar and electric power.
Infrastructure Support. One of the country’s directions in the transport industry is geared towards
improving the environment through the utilization of cleaner transportation system. Through close
coordination and collaboration between relevant government agencies and private stakeholders,
infrastructure support is expected to eventually flourished. The approval of SB1382 on EVs and EVCS
will largely boost the growth of industry. It addresses the lack of adequate charging infrastructure issues
that potential EV users are specifically concerned about, as well as the accompanying components
relative thereto.
The projects to reform and provide commuters access to faster and efficient mass transportation system
are being implemented by the transportation department. The fleet modernization under the PUVMP
requires that PUV engines should at least be Euro-4 compliant engine or LPG-powered, electronic, and
hybrid. The modernization is designed to be environment-friendly, secure, and convenient with due
consideration to persons-with-disabilities (PWD) passengers where commuters can get to their
destinations safely and comfortably. The modernized PUVs built according to the requirements set by
Philippine National Standards and adopting the green technology to reduce harm to the environment
can now be seen plying along the metro roads.
Moreover, infrastructure for the active and alternative mode of transportation is now open. This
addresses the growing popularity of alternative mobility choice over bicycles, e-bikes and e-scooters
traversing the roads. The Bayanihan Bike Lane Networks project, co-developed by the DOTr with DPWH
and LGUs spanning a total of 497-kilometer (km) stretch of bicycle lanes has been opened in the
National Capital Region (313 km), Metro Cebu (129 km) and Metro Davao (55 km) to provide a safe
space for the increasing regular cyclists to cross and pedal on.
Formulate necessary particular product requirement (PPRs) for energy consuming products
(ECPs) in relation to the labeling program. In accordance with the Philippine Energy Labeling
Program (PELP), the DOE will undertake the formulation of PPRs for ECPs pertaining to the development
of MEP and COPE policy guidelines that will pave the way for the mainstreaming of AFVs, EVs and other
emerging energy technologies. All manufacturers, importers, distributors, and retailers of ECPs such
as high efficiency motors, household appliances, lighting products, vehicles, etc. shall comply with the
MEP and COPE guidelines set by the DOE.
The MEP for specific ECPs, which include EV and EVCS, shall be developed by the DOE in consultation
with relevant stakeholders involved in the manufacturing sale and use of the products covered. Further,
the DOE continues to conduct performance testing of EVs/HEVs in collaboration with DOST, UP-Diliman
and the Cagayan State University. Performance testing is necessary to gather benchmark data for EV
technology modeling and EV development programs, including the development of required MEP.
175
CEVR refers to a national plan with an annual work plan to accelerate the electrification of transportation in the country with four (4)
components: EVs and charging stations, manufacturing, research and development, and human resource development.

ENERGY ROADMAPS
AF Vehicles Mainstreamed in the Transport Sector
Alternative Fuel Vehicles Mainstreamed in the Transport Sector. Deployment of applicable AFETs
for transport and non-transport purposes will still be a continuing activity within the planning period. The
successful adoption and commercialization of AFETs can be achieved by strengthening collaboration
with relevant government agencies and stakeholder partners.
Among the priority undertakings include:
▪ Foster the establishment of support infrastructure

(i.e., EVCS, parts and supply service centers) for
EVs to make it more commercially competitive;
▪ Encourage expansion to HEVs, which runs by an

internal combustion engine (ICE) and an electric
motor that work together or separately to propel
the vehicle;
▪ Continue to validate the performance of LPG as

fuel for vehicles and collaborate with relevant
government agencies in the formulation of
standards and policies to ensure safety and welfare
of the consuming public. Further research on other
application of LPG will also be pursued;
▪ Establish the commercial viability of Liquefied

Natural Gas (LNG) to include its technical requisites, marketability, and impact of incentives and
public acceptance to the transport sector. Policies and various fiscal and non-fiscal incentives
shall be formulated and provided to cover the standards regarding the vehicle, refueling station,
gas cylinder, and gas quality to support the implementation of the program; and
▪ Explore the potential of Hydrogen Fuel Cell as it provides a wide range of application from
powering cars and trucks, buildings, to portable electronic devices and backup power systems.
Fuel cells can be grid-independent thus, making it an attractive option for critical load functions
such as data banks, telecommunication companies and other similar centers.
For non-transport energy technologies, conduct of evaluation, testing, and validation of emerging
energy technologies for domestic application shall likewise be given equal priority and will continue to
be in place. These include: a) smart sensors at home for energy savings; b) grass-based biomass fuel
(Bugang/Napier) for domestic cooking; and c) alternative fuel derived from waste rubber and plastics.
Continuing Government Initiatives. AFETs adoption will be intensified through strengthening and
building up of local capability for R&D activities in partnership with the DOST, state universities, research
institutions, and other stakeholders. Linkages with partner agencies, learning and research institutions,
commercial/industrial stakeholders, and non-government organizations (NGOs) will be enhanced, as a
way of optimizing the government resources for incubating, developing, promoting, and mainstreaming
the new and advanced energy technologies for adoption and commercialization in the local market.
Instrumental to the implementation to the linkages are MOUs and MOAs between the DOE and
concerned parties for specific concerns and engagements relative to development of prototype,
technology demonstration and performance validation, information campaign.
Conduct of IECs campaigns will still be a regular undertaking of the DOE to further build-up consumer
awareness and appreciation on the importance of cleaner AFETs, and efficient utilization of energy.

ENERGY ROADMAPS
NUCLEAR ENERGY
The DOE continues to explore the feasibility of nuclear energy to support the sustainable development
growth of the country, while waiting for the decision from the Office of the President (OP) to officially
embark on nuclear energy program for power generation. The DOE-Nuclear Energy Program
Implementing Organization (NEPIO) 176 and the Nuclear Energy Program Inter-Agency Committee (NEP-
IAC), which was established through Executive Order (EO) 116 177 issued on 24 July 2020, are tasked to
formulate the national position on nuclear energy program and come up with a national strategy and
roadmap including measures to address the challenges under the Milestones Approach of the
International Atomic Energy Agency (IAEA).178
The Milestones Approach, consisting of 19 Nuclear Infrastructure Issues, provides the IAEA’s member
states with the opportunity to assess their preparedness for a nuclear energy program. The country
recognizes that the gravity of each of the 19 infrastructure issues under this approach varies in every
country. The NEPIO and NEP-IAC summarize these infrastructure issues into four areas tagged as “The
Four Cornerstones Approach” comprising of National Policy, Legislative Framework, Alignment with
International Standards, and Public Awareness.
The four cornerstones are the

major issues that require focus
in the nuclear energy program’
strategies as these contain the
barriers to a successful
implementation of the program.
National Policy. Approval of a

National Position to Embark on
a Nuclear Power Program Bataan Nuclear Power Plant located in Morong, Bataan
accompanied by a supporting
law is necessary to include
nuclear power in the energy
mix. The first step was laid down by the issuance of the EO 116 to expand the membership of
the NEPIO to a multi-sectoral composite team that created the NEP-IAC.
Legislative Framework. Establishment of an Independent Regulatory Body through a Comprehensive

Nuclear Law. Currently, the Substitute Bill 179 for the Comprehensive Atomic Regulation Act, which will
create the Philippine Atomic Regulatory Commission (PARC), was approved by the House of
Representative on 12 May 2021 to provide a safe and secure culture both for non-power and power
application of nuclear. Counterpart Bills are also filed in the Senate.
Alignment with International Standards. The Philippines is a Party to most of the relevant
International Instruments such as: (a) Convention on Nuclear Safety, (b) Joint Convention on the Safety
Management of Spent Fuel and Safety Management of Radioactive Waste, and (c) Amendment to the
Convention on the Physical Protection of Nuclear Materials.
Public Awareness. A broad-based and updated communication plan should be developed to address
stakeholder issues, specifically on negative perception nuclear energy which is still prevalent despite
present technology and access to information. Public awareness and acceptance are critical to making
the nuclear energy program move forward.
176
The NEPIO was created through the issuance of Department Order (DO) 2016-10-0013 on 24 October 2016.
177
“Directing a Study for the Adoption of a National Position on Nuclear Energy Program, constituting a Nuclear Energy Program Inter-
Agency Committee, and for Other Purposes”
178
IAEA Nuclear Energy Series NG-G-3.1 Rev. 1
179
Consolidated 13 House bills supporting the measure.

ENERGY ROADMAPS
NUCLEAR POWER PROGRAM ROADMAP
The Nuclear Power Figure 87. NPP ROADMAP

Program (NPP) Roadmap
(Figure 87) presented in the
PEP 2018-2040 guides the
NEPIO and the NEP-IAC in
the implementation of
activities to address the
ensuing challenges in the
nuclear energy program.
The roadmap was
established as a result of the
energy planning and pre-
feasibility studies for both
the soft and hard
infrastucture issues.
Keeping track of the timeline

of the NPP Roadmap, Table 65 presents the accomplishments of the program:
Table 65. MAJOR ACCOMPLISHMENTS OF THE NUCLEAR ENERGY PROGRAM UNDER THE ROADMAP
Timeline Soft Infrastructure Hard Infrastructure Remarks
Phase 1 ▪ NEPIO conducted Energy Planning ▪ ROSATOM (a State Atomic ▪ Soft and Hard
(2016-2018) Studies, which provided that nuclear Energy Corporation of Russia) infrastructure
can only be considered in the energy and the Korea Electric Power assessments and
mix if taken as mitigation options to Corporation (KEPCO) survey results on
reduce GHG emission. conducted pre-feasibility the use of nuclear
▪ A Pre-feasibility Studies conducted study on the potential energy are
by NEPIO identified the critical rehabilitation of the Bataan favorable for the
infrastructure areas to address. Nuclear Power Plant (BNPP). country’s nuclear
▪ Conducted and submitted to IAEA a ▪ The Korea Hydro and Nuclear energy program.
Self-Evaluation Report (SER) for Power (KHNP) Company ▪ Recommended
Infrastructure Issues. conducted a pre-feasibility for the adoption of
▪ Integrated Nuclear Infrastructure study for the small modular nuclear for power
Review (INIR) was conducted by reactor (SMR) in Cagayan generation in the
IAEA which provided Economic Zone Authority energy mix.
recommendations to relevant (CEZA) in Sta. Ana, Cagayan.
infrastructure issues.
▪ Established the Integrated Work Plan
(IWP) to address the INIR
Recommendations.
▪ Commission Social Weather Station
(SWS) to conduct Public Perception
Survey on Nuclear.
Milestone 1 ▪ NEP-IAC submitted a report to the Pending decision of

OP recommending the adoption of the President for the
nuclear for power generation to be adoption of national
included in the energy mix. policy on Nuclear.
Phase 2 ▪ Filed Substitute Bill for the creation Approved by the

(2019-2022) of the Philippine Atomic Regulatory House of
Commission, an independent Representatives.
regulatory body.

ENERGY ROADMAPS
Current Developments on Nuclear Energy Program
Implementation of Key Activities in 2020-2021 under the New Normal
1. Association of South-East Asian Nations (ASEAN) Meetings
Chairmanship of the Nuclear Energy Cooperation Sub-Sector Network (NEC-SSN) Annual

Meeting. The Philippines chaired the 10th and 11th NEC-SSN Annual Meeting held virtually on 23 June
2020 and 24 March 2021, respectively. The 2020 meeting discussed the progress and plans of NEC-
SSN for the ASEAN Plan of Action for Energy Cooperation (APAEC) Phase I: 2016-2020. For 2021, the
ASEAN Member States (AMS) talked about the implementation of key strategy, outcome-based
strategies, action plans and annual priorities including the engagement of dialogue partners and
international organizations for the APAEC Phase II: 2021-2025.
Group photo of the 11th NEC-SSN Meeting

(Heads of Delegations)
Group photo of the 11th NEC-SSN

Meeting (Heads of Delegations)
First Coordination Meeting between the ASEAN and the IAEA on the Implementation of Practical
Arrangement (PA), 26 April 2021. The first meeting served as a platform for the ASEAN and the IAEA
to discuss and exchange views on the way forward in implementing the PA, which will focus on the
following areas:
▪ Nuclear power application;
▪ Non-power application of nuclear technology;
▪ Nuclear safety and security;
▪ Safeguards; and
▪ Nuclear law.
8th Annual Meeting of the ASEAN Network of Regulatory Bodies on Atomic Energy (ASEANTOM),
05-09 July 2021. This annual meeting serves as a platform for the ASEAN and its dialogue partners to
discuss the implementation of existing and potential cooperation in view of the 5-year work plan (2019-
2023). As part of its participation, the NEC-SSN Chairperson (Philippines) presented the APAEC Phase
II: 2021-2025 Programme Area No. 7-Civilian Nuclear Energy.
2. EO 116
The EO 116 establishes the NEP-IAC, which is tasked to conduct a study for the adoption of the national
position on NPP in accordance with pertinent IAEA guidelines, relevant laws, rules and regulations. The
NEP-IAC is composed of the following agencies and offices:

ENERGY ROADMAPS
Chairperson : Department of Energy (DOE)

Vice-Chairperson: Department of Science and Technology (DOST)
Members : Department of Environment and Natural Resources (DENR)
Department of Interior and Local Government (DILG)
Department of Finance (DOF)
Department of Foreign Affairs (DFA)
National Economic and Development Authority (NEDA)
National Power Corporation (NPC)
National Transmission Corporation (Transco)
Philippine Nuclear Research Institute (PNRI)
Philippine Institute of Volcanology and Seismology (PHIVOLCS)
Additional Members that were invited citing Section 5 (Convergence) of the EO:
Department of Justice (DOJ)

Department of Trade and Insdustry (DTI)
Department of National Defense (DND)
Department of Health (DOH)
Presidential Communications Operations Office (PCOO)
Commission on Higher Education (CHED)
Technical Education and Skills Development Authority (TESDA)
Six (6) subcommittees were also established to study the 19 Infrastructure Issues as shown in Table 66.
Table 66. NEP-IAC SUBCOMMITTEES

Composition
Subcommittees 19 Infrastructure Issues
(Representative agencies)
SC1: Management, Policies, DOE, DOST, NEDA, DOF, DFA, National Position
Financing and Procurement NPC, TransCo Management
Funding and Financing
Electrical Grid
Procurement
SC2: Nuclear Safety, Security, DOE, DOST, PNRI, DILG, DFA, Nuclear Safety
Safeguards and Radiation NPC, DND, DOH Safeguards
Protection Radiation Protection
Nuclear Security
SC3: Legal and Regulatory DOE, DOST, PNRI, DFA, NPC, Legal Framework
DOJ Regulatory Framework
SC4: Human Resource and DOE, DOST, PNRI, DILG, CHED, Human Resource Development
Stakeholder Involvement TESDA, DTI, PCOO Stakeholders’ Involvement
Industrial Involvement
SC5: Siting, Environment, and DOE, DOST, PNRI. PHIVOLCS, Site and Supporting Facilities
Emergency Plan DILG, DENR, TransCo, DND, Environmental Protection
DOH Emergency Planning
SC6: Nuclear Fuel and DOE, DOST, PNRI, DENR, Nuclear Fuel Cycle
Radioactive Waste PHIVOLCS, DFA, DILG Radioactive Waste Management
3. NEP-IAC Workshop
On 08-10 December 2020, the NEP-IAC Workshop was held in Tagaytay City to consolidate the report
to be submitted to the OP. The report was finalized and submitted on 18 December 2020 including the
studies on the adoption of a national position for the nuclear energy program. Also submitted to the
OP is the proposed EO titled “Adoption of a National Position for a Nuclear Energy and for other
Purposes.”

ENERGY ROADMAPS
4. Launching of Education Resource Materials on Nuclear Science and Technology
Representatives from member agencies of the NEP-IAC during the Workshop in both
physical and virtual setting
Under the framework of the Memorandum of

Agreement (MOA) between the DOE and DOST-PNRI
on the “Development of Instructional/Education
Materials on Nuclear Science and Technology for
Secondary Students and Science Teachers,” the
Education Resource Materials on Nuclear Science and
Technology was launched virtually last 06 May 2021.
This project aims to increase the knowledge and

understanding of students, science educators and the
public on the basic facts and benefits of nuclear
science and technology (NST) through the
dissemination of developed educational
resource/instructional materials and modules.
There are 10 types of booklets covering various topics

in NST, 10 instructional materials in video format and
five (5) modules to be installed in the Science Explorer
bus of the DOST-Science Education Institute
accomplished from this project. These nuclear
resource series can also be accessed through the link:
https://services.pnri.dost.gov.ph/nstep/ResourceMaterial.

ENERGY ROADMAPS
5. Implementation of Training Courses, Symposium
In view of the new normal, the DOE-NEPIO has conducted a series of training courses in collaboration
with the Japan Atomic Industrial Forum Inc., (JAIF) International Cooperation Center (JICC). These
training courses were attended by the Technical Working Group (TWG) members of the DOE-NEPIO
and representatives from the DOST-PNRI, DOST-PHIVOLCS, DENR-Environmental Management
Bureau (EMB), NPC and TransCo.
The following were the training courses/seminars held together with JICC in 2021:
▪ Intensive Ground Stability Evaluation (28 April and 7 May 2021);

▪ Advanced Ground Evaluation Stability for a Nuclear Power Plant Site (25 and 30 June and 07
July 2021);
▪ Training Course on Infrastructure Development for NPP Introduction: Construction Site Survey
and Selection (21 July 2021); and
▪ Training Course on Infrastructure Development for NPP Introduction: NPP Design Against Natural
Disasters (11 August 2021).
The DOE-NEPIO also conducted a virtual symposium on nuclear energy in La Concepcion College held
last 16 June 2021 with senior high school students as the audience. The symposium informed the
students on the benefits of nuclear energy in reference to the possibility of introducing nuclear science
related courses in the tertiary education level as one of the efforts being done by the nuclear program.
The NEPIO and NEP-IAC facilitated

the participation of their
representatives to the U.S.
Foundational Infrastructure for the
Responsible Use of Small Modular
Reactor Technology (FIRST)
program, a five-part webinar series
for selected ASEAN countries from
May-September 2021.
Among the sessions included in the

webinar series were the following:
▪ Introduction to Small Modular One of the presentations during the Webinar series
Reactor technology for policy Source: FIRST
makers in the ASEAN region
(18-19 May 2021);
▪ Fundamentals of SMR Financing for Stakeholders (23 June 2021);
▪ SMR Licensing (14 July 2021);
▪ Nuclear Security for SMRs (18 August 2021); and

ENERGY ROADMAPS
▪ Other Technology Applications: Radiological Security and Machine-Based Radiation Generators

to held on 15 September 2021.
WAY FORWARD OF THE NUCLEAR POWER PROGRAM
Development of a Strategic Communication (StratCom) Plan for Nuclear Energy
The DOE entered into a MOA with the Presidential Communications Operations Office (PCOO) and
Bureau of Communications Services (BCS) for the engagement of services on the development of the
comprehensive Strategic Communication (StratCom) Plan on Nuclear Energy, as one of the
collaborative efforts of the NEP-IAC. The StratCom Plan is a broad-based communication plan on
nuclear energy to address the stakeholder issues to change negative perception and solicit public
acceptance and support on nuclear energy program.
Its general objective is to develop a holistic communication campaign to enhance knowledge, attitudes
and behaviors of the target population on nuclear energy program. Among the specific objectives are:
▪ To develop a strategic communication plan on nuclear energy;

▪ To develop key messages in enhancing public perception on nuclear energy;
▪ To develop visual communication tools such as, but not limited to, infographics, interactive
content, motion graphic and other data visualization;
▪ To prepare information, education and communication materials including program-specific
materials for target populations; and
▪ To conduct capacity building activities for the NEPIO and NEP-IAC.
Further Training Courses lined up for 2021
Cooperation with the JICC will continue throughout the year 2021. This is to ensure that the NEPIO and
NEP-IAC members shall remain capacitated in various fields until the country is ready to embark on a
nuclear power program.
The following are the training courses to be implemented by the JICC, NEPIO and NEP-IAC:
▪ Training Course on Public Understanding;

▪ Training Course on Emergency Preparedness and Response and Crisis Management;
▪ Training Course on Radioactive Waste Management;
▪ Training Course on Nuclear Security and Safeguards; and,
▪ Training Course on Environmental Impact Assessment and Radiological Impact Assessment for
Nuclear Power Plants.
HYDROGEN
Seen as the “Fuel of the Future”, the DOE is looking on Hydrogen as another
viable alternative and cleaner source of energy for the Philippines as it has been
globally recognized to provide a diverse range of energy applications, including
distributed power, backup power, portable power, auxiliary power for passenger and
freight vehicles, among others.
As a jumpstart, a study was conducted in November 2020, through the issuance of

a Special Order180 “Directing the Creation of a Hydrogen and Fusion Energy Committee (HFEC) to Make
a Study on Hydrogen and Fusion Energy including Infrastructure Development Methods and Strategies,
Prepare a Framework on their Inclusion in the Energy Mix and for Other Purposes.” The study focused
180
Special Order 2020-11-0041

ENERGY ROADMAPS
on the impact of hydrogen to the country’s

energy mix, as well as its possibility as an
option for power and transport fuel supply.
With the entry of new emerging
Three assumptions were considered in the
study, namely: energy technologies, the vision of
1. Scenario 1: Hydrogen for Power (S1) clean energy transition is expected

- As a back-up power for the grid and to be realized, which in turn shall
an alternative power option for off-grid
areas, especially with variable have beneficial impact for the
renewable sources (solar and wind) for
Filipino people.
power plants;
2. Scenario 2: Hydrogen for Transport

(S2) - About 10 percent penetration rate for hydrogen to replace vehicles using gasoline and
diesel; and,
3. Scenario 3: Combine Power

and Transport (S3) - Power and
transport use based on the
optimal hydrogen production.
For the production of the hydrogen,

three (3) options were identified, (1) the
Grey Hydrogen with coal as its fuel
source in the production; (2) the Blue
Hydrogen using natural gas; and (3) the
Green Hydrogen using renewables,
such as, solar, wind, biomass,
geothermal, and even nuclear.
The study was completed in February

2021 and results have indicated the
potential benefits from tapping hydrogen
as an alternative energy source, subject
to non-fossil fuel as feedstock. It also
recommends pursuing collaborations with interested stakeholders to explore its inclusion in the
country's energy mix and address the current gaps and challenges, particularly on infrastructure and
regulatory framework.
Institutionalized
Development Partnerships
To leverage the potential of

Hydrogen, the DOE has entered
into a partnership with the Star
Scientific Ltd. of Australia with the
signing of a Memorandum of
Understanding (MOU) on 27
January 2021. Under the MOU,
the Philippine government and
Star Scientific expressed their
intention to co-work in exploring
the use of hydrogen as a fuel for
power generation, as well as the
Energy Secretary Alfonso G. Cusi (seated, center) and Robert Briggs, Senior Advisor to
role that hydrogen can play in the the Executive Chairman of Star Scientific Ltd (seated, rightmost) during the signing of
a Memorandum of Understanding (MOU) on 27 January 2021.

ENERGY ROADMAPS
economy of the Philippines as a whole. Both parties will work together to investigate the following:
▪ Ways in which Star’s HERO (Hydrogen Energy Release Optimizer) technology can be used to
convert existing power assets within the Philippines to unlimited zero-emissions hydrogen assets;
▪ The viability of increased distribution of emission-free power by way of Super Critical CO2 grid
network powered by HERO technology; and
▪ Desalination options for both existing and new systems throughout the Philippines through the
use of the HERO technology.
A similar collaboration agreement with Tokyo-

based Hydrogen Technology Inc. (HTI) was
engaged on 7 April 2021 to also look into the
methods on how to employ hydrogen for power
supply. Through the signing of the MOU, it
enables the DOE to fast-track research and
development on hydrogen, considering the need
to increase the share of renewable energy while
adhering to higher environmental standards for a
better future. This development also sparked the
interest of another country, that is, Israel to
explore the viability of hydrogen as back-up and
off-grid power solutions to the problem of lack of Energy Secretary Alfonso G. Cusi and Hydrogen Technology
energy access by households in some of the Inc. (HTI) President and CEO Yasuhiro Yamamoto signed a
Philippine islands. Memorandum of Understanding (MOU) on 7 April 2021.
Electric Vehicle Industry
The EV industry looks promising with its increasing popularity and wide acceptance across the country.
Through the DOE’s continuous promotion and support, together with relevant government and private
stakeholders/partners, the industry is seen to prosper in the coming years. Establishing policy
guidelines/framework for development and safe operation of EVs and EVCS will encourage investments
and promote wider use of EVs.
The DOE has a continuing collaboration with the EV players, through the Electric Vehicle Association of
the Philippines (EVAP). This is to sustain the development and adoption of EVs in the country through
the conduct of annual EV Summits where manufacturers of EVs, EVCS, batteries, parts and
components, other EV players meet to share experiences, strategies, and best practices to accelerate
the commercial adoption of EVs.
The provision of incentives and standards presented by the DTI, the PUV modernization of the DOTr,
the LGUs’ drive in greening and cleaning up of air in their locality, and industry association represented
by the EVAP share the common effort in strengthening the adoption of EVs.
The SB 1382 provides clear directions on national energy policy and regulatory framework on the use
of EVs and the establishment of EVCS along with other components relative to manufacture,
importation, installation, utilization, and regulation of EVs, parts and components, and batteries.
Relevant government agencies will have their respective roles in this legislation relative to the
formulation and implementation.
Moreover, the government’s established policy measures have spurred investor’s interest to encourage
investments in the EV industry:

ENERGY ROADMAPS
▪ Republic Act No. 11534181 otherwise known as the CREATE Act was signed by President Duterte
on 26 March 2021 to modify several provisions in the old Tax Code, focusing on the lowering of
corporate income tax rates and rationalizing fiscal incentives to encourage both local and foreign
investments in the country. The corporate income tax rates will be reduced from the current 30.0
percent to 25.0 percent, retroactive from 01 July 2020.
▪ Omnibus Investment Code (Executive Order 226) Fiscal and Non-Fiscal Incentives provides
an Income Tax Holiday of six (6) years to a maximum of eight (8) years for new registered pioneering
firms that will engage in the EV business, AFVs, charging stations and environment/climate change
related projects, as well as Duty Free importation on capital equipment, spare parts, and supplies.
▪ Executive Order 488, (s. 2006) modifying the rates of import duty on component, parts, and
accessories for the assembly of hybrid, electric, flexible fuels and CNG motors vehicles to zero rate,
thereby allowing EV manufacturers to import components at a more affordable cost.
▪ Tax Reform for Acceleration and Inclusion (TRAIN) Excise Tax Incentives. Pure Electric
Vehicles shall be fully exempt from the excise tax on automobiles while Hybrid Vehicles will be taxed
fifty percent (50%) of the applicable excise tax rates on automobiles.
▪ Republic Act No. 11285 “Energy Efficiency and Conservation Act”. Minimum Energy
Performance (MEP) Standard prescribes the minimum level of energy performance for the
commercial, industrial and transport sectors, and energy consuming products, including appliances,
lighting, electrical equipment, machinery, and transport vehicles (including EVs and charging
stations).
Based on Land Transportation Office (LTO) data, there are 11,950 registered EVs from 2010-2019
accounting for only 0.09 percent of total registered vehicles in the country (Figures 88 and 89). Of the
total registered EVs, majority are electric tricycles (e-trikes) and two-wheeled vehicles. Accordingly, as
cited by the EVAP, the number increased by 8.5 percent to 12,965 in 2020, based on latest LTO data.
Figure 88. NO. OF EVS REGISTERED PER TYPE OF VEHICLE (2010-2019) Figure 89. NO. OF EVS REGISTERED PER YEAR (2010-2019)
Source: LTO
For this PEP Update as shown in the Demand and Supply Targets for Energy Outlook (Chapter III), the
penetration rate of EVs for road transport (motorcycles, cars, jeepneys, etc.) is at 5.0 percent in
the Reference Scenario (Business as Usual) and 10.0 percent in the Clean Energy Scenario (CES)
by 2040. In Table 67, additional 3.3 million EVs will be on the roads by 2040 under CES, equivalent to
10.0 percent share of total vehicles, and largely contributed by electric motorcycles with 2.2 million.
181
Republic Act 11534 - An Act Reforming the Corporate Income Tax and Incentives System, amending for the Purpose Sections 20,
22, 25, 27, 28, 29, 34, 40, 67, 109,116, 204 and 290 of the National internal Revenue Code Of 1997, As Amended, And Creating
Therein New Title XIII, And for Other Purposes

ENERGY ROADMAPS
Table 67. PROJECTED EV BY 2040

Vehicle Segment Projected EV by 2040 (in Million)
Reference Scenario (REF) Clean Energy Scenario (CES)
5% Penetration rate 10% Penetration rate
Motorcycle (MC) 1.10 2.19
Tricycle (TC) 0.23 0.45
Non-Conventional 2-wheel/3-wheel 0.15 0.29
vehicles (NC)
Passenger Cars (PC) 0.05 0.09
Utility Vehicles (UV) for public use 0.06 0.11
Sports Utility Vehicles (SUV) 0.09 0.19
Buses 0.00 0.00
Trucks (includes all goods vehicles) - -
Total 1.67 3.33
Attributing to the impending passage and enactment of SB1382, with all its supporting provisions in
commercialization, incentives and infrastructure support, an upward trend is expected to flourish in the
EV industry. Despite the unprecedented onset of COVID-19 since 2020 that adversely affecting the local
and the global economy, the Philippines’ EV market continues to be motivated in the promotion of EVs
given its high technology features, low maintenance costs and environmental impact.
The DOE has undertaken various initiatives and firmly pursued the commercialization of EVs in the road
transport with the goal of creating the desired demand, developing the industry, and facilitating
infrastructure development. Hence, the strategic approach the DOE is taking on is lobbying for the
approval of the EV Act. When enacted into law, a Comprehensive EV Roadmap will be developed to
encompass all the factors necessary to accelerate and sustain the country's e-mobility in collaboration
with relevant government agencies and EV stakeholders. The DOE will commission a service provider
to help with the country's baseline local data, as well as an assessment of global and local EV policies
and best practices.
It can also be noted that under the current DTI-Board of Investments’ (BOI) Investments Priorities Plan
(IPP), the manufacture of EVs and its components and the establishment of EVCS are one of the
preferred activities for investments that may be entitled for additional incentives in the CREATE Act.
The data on EVs from the DTI (2018) shows that there are 28 firms engaged in the manufacturing of
various EVs, 11 companies for parts and component manufacturers, and seven (7) importers that
provide employment to 14,840 individuals.

CHAPTER III
STRATEGIC FOCUS AREAS
F
A. ENERGY SUPPLY AND DEMAND OUTLOOK

Promoting Energy Security through Clean Energy Fuels and Technologies
I. Methodologies and Assumptions
Macroeconomic Targets
The energy outlook incorporates the revised growth targets consistent with the updated Philippine
Development Plan (PDP) 2017-2022, cognizant of the reforms instituted, as well as the recovery
programs and pillars that will govern economic expansion post-COVID19 (Figure 90). The country
expects the economy to return to its pre-pandemic or 2019 output levels by 2022 with an 8.0 percent
escalation in gross domestic product (GDP). Reaping the benefits of reforms instituted, the country
maintains its robust trajectory until 2040 with a 7.4 percent growth in economic output.
Other macro-economic variables such as population, inflation rates, peso-dollar exchange rates and oil
prices were sourced from the (a) 2015 Census of Population (POPCEN) of the Philippine Statistics
Authority (PSA),182 (b) Development Budget Coordination Committee (DBCC), (c) International
Monetary Fund (IMF)183 and (d) World Oil Outlook (WOO) 2045 of the Organization of Petroleum
Exporting Countries (OPEC).184
Figure 90. PDP 2017-2022 REFORMS INSTITUTED AND 4-PILLAR SOCIOECONOMIC STRATEGY AGAINST COVID-19
Source: DOF/NEDA
182
Population projections based on the 2015 Census of Population (Philippine Statistics Authority).
183
Crude Oil Price Forecast: 2021, 2022 and Long Term to 2050 (Knoema, published 10 September 2021).
184
World Oil Outlook (WOO) 2045 (OPEC, October 2020).

Energy Demand and Supply Assumptions
Scenario Building
The energy outlook presents the impacts of Reference Scenario (REF) or the Business-as-Usual (BAU)
and the Clean Energy Scenario (CES) to the country’s energy portfolio based on the assumptions stated
in Table 68. As in the previous outlook, regional targets on energy intensity reduction185 and increased
renewable energy (RE) share capacity186 are also taken into consideration, as well as the commitment
to the Sustainable Development Goals (SDG) Goal 7 of ensuring access to affordable, reliable,
sustainable, and modern energy for all. The outlook sets 2020 as the base year, with 2021 the first
projection year.
Table 68. DEMAND AND SUPPLY TARGETS FOR ENERGY OUTLOOK 2020-2040
Scenario Assumptions
Reference Scenario Clean Energy Scenario
(Business as Usual) (Alternative Scenario)
Energy Demand ▪ Supports an accelerated economic ▪ 10.0 percent penetration rate of electric
expansion post-COVID19 (i.e., High GDP vehicles for road transport (motorcycles, cars,
scenario). jeepneys) by 2040.
▪ Maintains current blending schedule for ▪ 1.5 percent increase in aggregate natural gas
biofuels (2.0 percent biodiesel and 10.0 consumption from the Transport and Industry
percent bioethanol) until 2040. sectors between 2020 and 2040.
▪ 5.0 percent penetration rate of electric ▪ 5.0 percent blending for biodiesel starting
vehicles for road transport (motorcycles, 2022.
cars, jeepneys) by 2040. ▪ Up to 5.0 percent energy savings on oil
▪ Current efforts on energy efficiency and products and electricity by 2040.
conservation (EEC) as a way of life
continues until 2040.
Energy Supply ▪ Present development trends and ▪ Assumptions under the Reference, as well as
strategies continue. the following:
▪ Existing power plant as of December ▪ Up to 50.0 percent RE share in generation
2019 and committed power projects as mix by 2040; and
of September 2020. ▪ Achieve at least 12.0 percent reduction in the
▪ 35.0 percent RE share in generation mix greenhouse gas (GHG) emission for the
by 2040. country’s Nationally Determined Contribution
▪ 25.0 percent reserve margin. (NDC).
▪ 70.0 percent load factor for the total
Philippines.
▪ Indigenous production targets: Coal -
282 million metric tons (MMT) at 14.8
MMT/year; Oil – 64 million barrels (MMB)
at 3.4 MMB/year; Natural Gas - 4 trillion
standard cubic feet (SCF) at 4.8 billion
SCF/year.
▪ LNG imports to come in starting 2022 at
349 billion SCF/year to augment supply
from Malampaya gas field.
Note: Reference date for energy and energy-related data, including macroeconomic indicators, used in the simulation for this
Energy Outlook is 10 June 2021.
Methodologies and Energy Models
The outlook uses various internationally accepted energy modeling methodologies and tools to come
up with the energy demand and supply projections for the 2020-2040 period. Modelling software include
a) Simple Econometric Simulation System, Expanded (Simple E2, version 14), an add-in application in
185
Asia-Pacific Economic Cooperation’s (APEC) target of 45.0 percent by 2035 with 2005 as the base year period; and ASEAN Plan of
Action for Energy Cooperation (APAEC) 2016-2025’s of 20.0 percent by 2020 and 32.0 percent by 2025.
186
Under the APAEC aspirational targets for 2025 of 23.0 percent share of RE in Total Primary Energy Supply (TPES) and 35.0 percent
share of RE in installed power capacity.

Microsoft Excel developed by the Institute of Energy Economics, Japan (IEEJ); Low Emissions Analysis
Platform or LEAP (previously known as the Long-range Energy Alternatives Planning System)
developed by Stockholm Environment Institute; and PLEXOS, a Power System Planning and Market
Simulation Software developed by the Energy Exemplar.
Final Energy Consumption
The projection for the final energy consumption uses Simple E and utilizes the transport energy demand
model (for the transport sector energy consumption) developed by the Economic Consulting Associates
(ECA)187 using energy data from the DOE188. The demand forecast considers sectoral roadmaps
including explanatory variables/indicators and information that affect or influence energy consumption
of the different sectors, specifically:
▪ Transport model accounts the consumption of each of the four (4) modes of transportation – road,
rail, air and water. The road transport model considers the number of vehicles as a function of GDP
and the estimation of vehicle fleet using the Winfrey Survival Model combined with average
passenger and vehicle-kilometer traveled and fuel economy to estimate energy consumption. The
rail transport model utilizes the number of passengers of the Philippine National Railways (PNR) and
Metro Rail Transit/Light Rail Transit (MRT/LRT) lines and urban population as indicators. On the
other hand, water and air transport models include the indicators on the number of passengers,
kilometer/ton-kilometer flown, cargo throughput, and sub-sectoral value-added. The outlook
likewise incorporates the expansion plans and new projects/programs of the Department of
Transportation (DOTr), as well as the developments in other related sectors, notably local tourism.
▪ Industry energy demand consists of energy-intensive and less-energy intensive industries. The
energy-intensive industry model covers food processing, sugar, paper and pulp, cement
manufacturing, chemicals, basic metal and machinery, and equipment sub-sectors. Other
manufacturing industries, mining, and construction fall under less-energy intensive industries. Other
variables used as indicators are gross value added (GVA), commodity prices, production targets,
and population for the energy demand model of these sub-sectors.
▪ Household energy demand model employs socioeconomic indicators, such as household final
consumption expenditure (HFCE) and household population sourced from the Philippine Statistics
Authority (PSA) and the results of the 2011 Household Energy Consumption Survey (HECS) for
determining the level of biomass demand.
▪ Services and Agriculture energy demand models make use of GVA for trade and services, and
agriculture, fishery and forestry (AFF), respectively.
Power Demand and Supply
For the power outlook, the DOE builds on the Capacity Expansion Model (CEM) using the PLEXOS to
simulate the power generating capacity mix for the country, given the assumptions on electricity
demand forecast, technology cost and performance, fuel prices, and the corresponding policies and
regulations within the industry. Table 69 presents the specific assumptions for the power outlook.
Table 69. POWER DEMAND AND SUPPLY OUTLOOK ASSUMPTIONS

Particulars Inputs
Electricity Demand ▪ GDP growth for the annual peak demand forecast.
Generator Parameters ▪ Existing power plants as of 31 December 2020, with no derating and retirement
considered.
▪ Committed power plants as of 30 September 2020.
▪ Operating technical parameters of existing power plants.
▪ Forced and Maintenance Outage Rates.
187
Led by Prof. Ronwaldo del Mundo of the University of the Philippines’ (UP), College of Engineering.
188
Through the Energy Policy and Planning Bureau.

▪ Reserve provision classified as regulating, contingency, and dispatchable reserves.

New Build Options ▪ Existing power plant technologies (i.e., coal, oil, gas turbines, geothermal, hydro,
biomass, solar, wind), excluding Battery Energy Storage System (BESS), Nuclear,
Hydrogen, Fuel Cell and Ocean technology
▪ Cost parameters developed by the DOE with inputs from the National Renewable
Energy Board (NREB).
▪ Competitive Renewable Energy Zone (CREZ) technical parameters.
▪ New power plants can provide ancillary services.
▪ Minimum 25.0 percent reserve margin per grid.
The electricity sales forecast for the three (3) main grids combines the grid-connected distribution
utilities (DUs), composed of the private investor-owned utilities (PIOUs), electric cooperatives (ECs) and
local government-owned utilities (LGUOUs), and non-utility and power generator customers of the
National Grid Corporation of the Philippines (NGCP). The electricity sales forecast for grid-connected
DUs uses the derived elasticity of electricity consumption to gross regional domestic product (GRDP),
which results in 0.8 for Luzon, and 1.0 for Visayas and Mindanao. Electricity sales is the volume of
energy sold by the DUs to its customers, which also covers those directly-connected customers. On
the other hand, electricity consumption is derived by adding transmission and distribution losses
(system losses) and own-use of power plants, and transmission and distribution networks to the total
energy sales. Table 70. PARAMETERS FOR PEAK DEMAND FORECAST
Plant Use and
Gross power generation comprises of Load Factor
Grid Transmission
electricity sales forecast, plant use, and (%)190
Losses189 (%)
transmission losses, while the peak Luzon 8.63 70.25
demand forecast is obtained from the sales Visayas 10.63 72.00
forecast and load factors (Table 70).
Mindanao 12.14 67.69
Primary Energy Supply
The LEAP software consolidates the final energy consumption and energy supply (including power
demand and supply) simulation results to generate the overall energy outlook projections. To come up
with an energy demand and supply outlook, the sectoral fuel demand including electricity demand, total
installed capacity, process efficiency, capacity factor, and other parameters serve as exogenous
variables. The resulting GHG emission of the scenarios uses the default emission factor with global
warming potentials at 100-years of integration by the Intergovernmental Panel on Climate Change
(IPCC).
II. Reference Scenario Figure 91. TOTAL FINAL ENERGY CONSUMPTION BY SECTOR
(MTOE), 2000-2040
A. Total Final Energy Consumption
While COVID-19 pandemic resulted in

depressed energy demand in 2020, total
final energy consumption (TFEC)
continues to exhibit an uptrend post-
pandemic with 5.8 percent annual
increment over the planning horizon,
reaching 99.3 million tons of oil equivalent
(MTOE) in 2040. This translates to a three-
fold increase in the TFEC from 2020 level
(Figure 91).
The transport and industry sectors, with

combined average shares of 56.0 percent, account for the biggest contribution to the increase in the
189
Luzon and Mindanao are based on actual 2019 values, while Visayas is based on the actual 2018 value.
190
Actual load factor in 2019

TFEC. Other sectors, such as the household, services and agriculture, contribute an average share of
24.5 percent, 15.5 percent, and 1.4 percent, respectively, to the TFEC. Meanwhile, non-energy (like
naphtha, lubes and other petroleum products as feedstock and raw materials in industrial process) has
2.2 percent share (Figure 92).
Figure 92. TOTAL FINAL ENERGY CONSUMPTION Energy consumption of the transport sector
BY AVERAGE SHARES PER SECTOR increases rapidly with 7.1 percent a year growth rate
(Percent), 2020-2040 driven by improved mobility and connectivity due to
the sector’s major infrastructure projects under the
Build, Build, Build program. Industry and Services,
which are expected to propel the country’s
envisioned economic expansion, demonstrate a 6.6
percent and 6.2 percent growth in energy
consumption, respectively. As the agriculture sector
moves towards its goal to modernize its value chains,
it boosts up its energy requirement by 5.9 percent
annually over the planning period. Meanwhile,
household sector shows a steady 3.6 percent
increment a year, while non-energy use decelerates
at 0.7 percent annually.
Total Final Energy Consumption by Fuel
Despite posting an unprecedented decline in 2020 due to

mobility restrictions imposed to combat COVID-19, domestic oil Oil demand returns to its
consumption returns to its pre-pandemic levels by 2023 and rises pre-pandemic levels by
to 56.3 MTOE in 2040. Oil consumption gets an average share 2023 and posts 6.5
of 53.1 percent to the TFEC (Figure 93), as it increases at 6.5 percent yearly
percent growth per year over the planning horizon. The transport
increments until 2040.
sector consumes the bulk of oil, specifically gasoline and diesel,
with average shares of 41.4 percent and 50.1 percent,
respectively.
Electricity191 remains as the second most consumed energy form after oil, with an average share of 24.5
percent of the TFEC. Its consumption level reaches 25.7 MTOE by end of the planning horizon, which
translates to a 6.6 percent annual increase from 7.2 MTOE in 2020. As most mass railway transit
systems come online, along with an anticipated influx of electric vehicles (EVs), electricity use in the
transport sector escalates by 20.5 percent a
year. This requires 273 thousand ton of oil Figure 93. FINAL ENERGY CONSUMPTION BY FUEL SHARES
(Percent), AVERAGE FOR 2020-2040
equivalent (kTOE) in 2040 vis-a-vis 7 kTOE in
2020. Household and industry sectors
demand the biggest chunk of total electricity
consumption with combined average share of
67.8 percent.
Biomass192 for end-use applications, with an

average share of 13.2 percent to the TFEC,
contracts at 1.1 percent growth rate a year. Its
level drops to 5.6 MTOE by the end of the
planning horizon. This downtrend is
attributable to the shift towards modern and
more efficient fuels for cooking and heating
(such as electricity and LPG), particularly
191
Electricity consumption refers to those supplied by utilities expressed in tons of oil equivalent (TOE)
192
Includes charcoal, fuelwood, rice hull, bagasse, agriculture and animal waste

among households. The sugar manufacturing subsector and food service establishments manage to
sustain their biomass consumption as levels rise steadily by 0.9 percent and 2.5 percent, respectively.
The utilization of coal as a fuel in industrial processes grows at a fastest rate of 9.4 percent a year,
reaching 9.9 MTOE by 2040 equivalent to 7.4 percent share of the TFEC. Aligned with the country’s
continuing infrastructure development, cement and basic metals industry’s coal consumption increases
across the planning period, driven by robust demand for building materials, heavy equipment, and other
related construction products.
Sustained compliance to the 2.0 percent biodiesel and 10.0 percent bioethanol blending mandated
under the Biofuels Act of 2006 results in a more than three-fold increase in the utilization of biofuels, as
levels stands at 1.7 MTOE in 2040 from 0.5 MTOE in 2020. The industry sector records a sluggish 0.6
percent increase in its natural gas consumption across the planning horizon.
Total Final Energy Consumption by Sector
Transport. Realization of the major

mobility projects under the flagship
Build, Build, Build program results in
an upgraded network of roads,
railways and port systems for better
transport connectivity. These
improvements induce the 7.1
percent annual increase in the
sector’s energy requirement and
signals recovery from the depressed
demand due to the impact of
COVID-19 in 2020. Transport rises
its share to 39.1 percent of the TFEC
as its energy demand levels The NLEX–SLEX Connector Road Project is an 8-kilometer all elevated 4-lane toll
increase by four-folds at the end of expressway extending the NLEX southward from the end of Segment 10 in C3 Road
Caloocan City to PUP Sta. Mesa, Manila, and connecting to the Skyway Stage 3,
the planning horizon. and mostly traversing the PNR rail track. (Source: Project Lupad Youtube)
Road transport demands 89.5 percent of the sector’s energy consumption as it accounts for the bulk of
both domestic passenger and freight traffic. Renewed confidence and interest in domestic tourism
activities post-COVID19 drives energy demand in air transport, which results in a significant increment
of 11.3 percent a year as levels rise as much as eight (8) times from 219 kTOE in 2020. Water and rail
transport likewise exhibit upward trends in their energy use across the planning horizon.
Aggregate consumption of oil Figure 94. TRANSPORT FINAL ENERGY CONSUMPTION BY FUEL (MTOE),
consistently represents a substantial 2000-2040
share of around 95.5 percent to
transport energy demand over the
planning period. The automobile
industry regains its momentum post-
COVID-19 driven by a growing
middle class and improving
economic prospects, albeit leading
to increased traffic density. These
factors push the demand for
gasoline and diesel to increase by
7.0 percent and 6.9 percent,
respectively. Their combined
utilization reaches 34.7 MTOE by
2040 and translates to an 89.4
percent share to the sector’s total
energy demand (Figure 94 and Table 71).

Alternative fuels, such as biofuels and electricity, contribute to achieving the goal of a low-carbon,
efficient and sustainable transport sector with lesser dependence on oil. Biodiesel consumption
increases yearly by 6.7 percent, while bioethanol expands by 7.0 percent as the DOE ensures stringent
compliance to E10 and B2 blending schedules. Electricity demand accelerates by 20.5 percent and
reaches 273 kTOE by 2040 with the completion of upgrades to the country’s current roster of mass and
light railway systems and penetration of EVs in road transport. On the other hand, auto-LPG, which
suffers from lack of sufficient infrastructure (e.g., refueling stations), shows a yearly decline of 4.3
percent.
Table 71. TRANSPORT FINAL ENERGY CONSUMPTION BY FUEL (MTOE)

2020 2030 2040 AAGR* (%)
Fuel Type
Levels % Shares Levels % Shares Levels % Shares ‘20-'40
Oil Products 9.42 95.66 18.72 95.50 36.97 95.19 7.08
LPG (Auto-LPG) 0.00 0.04 0.00 0.02 0.00 0.00 -4.33
Aviation Gasoline 0.00 0.03 0.01 0.04 0.02 0.04 9.05
Gasoline 4.15 42.11 8.16 41.63 15.89 40.92 6.95
Jet Fuel 0.22 2.19 0.48 2.44 1.86 4.79 11.37
Diesel 4.91 49.92 9.86 50.27 18.82 48.46 6.95
Fuel Oil 0.13 1.36 0.22 1.10 0.38 0.98 5.36
Biodiesel 0.10 0.99 0.18 0.94 0.35 0.91 6.67
Ethanol 0.32 3.29 0.64 3.27 1.24 3.20 6.96
Electricity 0.01 0.07 0.06 0.29 0.27 0.70 20.50
Total 9.84 100 19.60 100 38.84 100 7.10
*Average annual growth rates (AAGR) for 2020 to 2040
Households. Consistent with the collective vision embodied

under AmBisyonNatin 2040, economic growth trickles down to Household energy
every Filipino and allows for increases in income, improvements demand mix shows the
in quality of life and greater access to energy. This scenario
provides the impetus for the 3.6 percent yearly hike in household
shift towards modern
energy consumption as its level reaches 20.4 MTOE in 2040. and more convenient
During the planning period, the household energy demand mix fuels such as electricity
shows the inclination towards cleaner and convenient fuels such and LPG.
as electricity and liquefied petroleum gas (LPG) vis-a-vis biomass
and kerosene (Figure 95 and Table 72).
By 2040, electricity becomes the primary fuel for household activities with a 42.2 percent share or 8.6
MTOE. The Development for Renewable Energy Applications Mainstreaming and Market Sustainability
(DREAMS) Project by the United Nations
Development Programme (UNDP)
supports the mainstreaming of
renewables through increased
investment in RE-based power
generation projects. Among its major
projects is the Support Facility for
Renewable Energy (SF4RE) Project
involving installation of solar photovoltaic
(PV) to boost electrification target, as well
as to power portable water system in far-
flung areas. Aside from the DOE’s 100.0
percent household electrification target,
the rising popularity of smart home that
allows for the remote automation of Smart home technology is making strides in making it easier for homes
to adapt and quickly realise the benefits of home automation.
household appliances for lighting, heating
(Source: Carbon Track Intelligent Energy Management)

and cooling devices, home security, and home entertainment also drives electricity demand to exhibit
a yearly increase of 5.5 percent.
As more households benefit from the passage of legislation that ensures effective and safe usage of
LPG, its consumption increases by as much as six (6) times from 2020 level of 1.2 MTOE to 7.7 MTOE
by 2040, which translates to a 9.9 Figure 95. HOUSEHOLD FINAL ENERGY CONSUMPTION BY FUEL
percent growth rate a year. (MTOE), 2000-2040
Given the trends in electricity and LPG,

biomass193 consumption, primarily for
cooking and heating, contracts at 1.9
percent per year and drops to 4.0 MTOE
by 2040 from 5.8 MTOE in 2020. Fuel
substitution significantly reduces
biomass share to household demand mix
from 58.3 percent in 2020 to 19.6
percent by 2040. Kerosene also shows
the same downtrend and declines by half
of its 2020 level of 51 kTOE to 24 kTOE
at the end of the planning period.
Table 72. HOUSEHOLD FINAL ENERGY CONSUMPTION BY FUEL (MTOE)

2020 2030 2040 AAGR* (%)
Fuel Type
Oil Products 1.24 12.34 2.94 22.07 7.79 38.21 9.64
LPG 1.19 11.83 2.90 21.81 7.77 38.10 9.85
Kerosene 0.05 0.51 0.03 0.26 0.02 0.12 -3.77
Electricity 2.95 29.40 4.64 34.85 8.60 42.17 5.50
Biomass 5.84 58.26 5.74 43.08 4.00 19.62 -1.87
Total 10.03 100 13.32 100 20.40 100 3.61
Key Growth Sectors: Industry, Services 194 and Agriculture
Effective implementation of economic stimulus packages and major policy reforms, such as the
Corporate Recovery and Tax Incentives Reform Act (CREATE), the Philippine Inclusive Innovation
Industrial Strategies (i3s), the Financial Institutions Strategic Transfer (FIST), Comprehensive Tax
Reform Program (CTRP), the Energy Virtual
One-Stop Shop (EVOSS),195 among others,
would revive business and consumer
confidence post-COVID19. Being the major
drivers of economic growth and employment,
the Industry, Services and Agriculture
sectors, continue to rely on energy to sustain
their revenue-generating activities.
Industry. To achieve its industrialization

targets, the industry sector boosts its energy Information and Communication Technology (ICT) serves as the
demand with a 6.6 percent annual rate of backbone of business activities in the manufacturing industry.
Picture shows the Intel Powering Industry 4.0 for Smart
increase, requiring 22.3 MTOE or 21.1 percent Manufacturing and Data-Centric Transformation (Source: Intel
of the TFEC in 2040 (Figure 96 and Table 73). Newsroom)
193
Includes charcoal, fuelwood, agriculture waste.
194
Excluding the transportation sub-sector.
195
Republic Act (RA)11234, “An Act Establishing the Energy Virtual One-Stop Shop for the Purpose of Streamlining the Permitting
Process of Power Generation, Transmission, and Distribution Projects, signed 08 March 2019.

Electricity maintains its position as the Figure 96. INDUSTRY FINAL ENERGY CONSUMPTION BY FUEL
primary fuel as its consumption grows (MTOE), 2000-2040
by 7.0 percent a year to reach 8.5 MTOE
by the end of the planning period. This
is driven by technological innovations
and digitization, i.e., tapping of artificial
intelligence (AI), across industrial
processes that also aims to improve
long-run productivity196.
The Construction Industry Roadmap

2020 to 2030197 and the timely passage
of the 30-Year National Infrastructure
Program Act of 2021 recognize the role
of the construction subsector and
guarantee continuity of key
infrastructure projects. In response to
the demand for building materials, aggregate coal consumption registers a significant growth rate of 9.7
percent annually, with demand level stands at 9.6 MTOE by 2040. The cement, petrochemical and
basic metals subsectors account for most of coal consumption with other manufacturing industries,
such as paper production and beverages, also contribute to the 33.1 percent average share of coal in
the sector’s energy mix over the planning period.
Technological innovations and Diesel as a fuel for production machinery ramps up by 3.8
digitization across all industrial percent annually with demand stands at 1.8 MTOE in 2040
processes drives the sector’s and contributing an average share of 10.5 percent to the
demand for electricity to increase sector’s energy mix. Biodiesel follows the uptrend and
by four (4) times its 2020 level of records a 5.0 percent annual increase from 13 kTOE in
2.2 MTOE to 8.5 MTOE by 2040. 2020. LPG consumption, specifically in food manufacturing
industries, escalates by 7.7 percent per year to 788 kTOE
by 2040. On the other hand, fuel oil registers an average
contraction of 0.6 percent across the planning horizon due to technological innovations that favor
electricity over the latter.
Table 73. INDUSTRY FINAL ENERGY CONSUMPTION BY FUEL (MTOE)

2020 2030 2040 AAGR* (%)
Fuel Type
Oil Products 1.56 25.10 2.20 18.72 3.07 13.75 3.45
LPG 0.18 2.87 0.41 3.48 0.79 3.53 7.71
Kerosene 0.02 0.27 0.02 0.21 0.05 0.21 5.25
Diesel 0.83 13.38 1.23 10.47 1.77 7.91 3.85
Fuel Oil 0.53 8.58 0.54 4.56 0.47 2.10 -0.63
Coal 1.49 24.08 3.93 33.43 9.56 42.84 9.73
Natural Gas 0.04 0.60 0.04 0.34 0.04 0.19 0.65
Biodiesel 0.01 0.21 0.02 0.21 0.03 0.16 5.01
Electricity 2.20 35.43 4.57 38.83 8.53 38.19 7.01
Biomass 0.91 14.59 1.00 8.48 1.09 4.87 0.92
Total 6.21 100 11.77 100 22.32 100 6.61
Biomass198 and natural gas for end-use applications complete the sector’s demand mix with their
combined average share of 9.0 percent. The sugar production, food and other manufacturing industries
196
Updated-Philippine-Development-Plan-2017-2022, page 32.
197
Crafted by the Department of Trade and Industry (DTI) through the Construction Industry Authority of the Philippines (CIAP) and the
Philippine Contractors Association (PCA).
198
Includes charcoal, fuelwood, rice hull, bagasse, agriculture and animal waste

remain as primary users of biomass, with

an aggregate consumption of 1.1 MTOE
by 2040. Natural gas consumption
registers a languid 0.6 percent average
growth rate a year during the planning
horizon.
Services. The services sector has been

the fastest-growing component of the
Philippine economy and consistently
accounts for more than two-thirds of
GDP. The Services Sector Roadmap199
aims to bank on its potential for higher
outputs, creation of quality jobs and Cebu Exchange is an P8-billion Grade-A green office development designed
to address the IT and business process outsourcing (BPO) industry’s growing
greater participation in global value- demand for quality space. It has been pre-certified for Leadership in Energy
chains, particularly in the information and Environmental Design (LEED) and on track for a Building for Ecologically
technology and business process Responsive Design Excellence (BERDE) certification. (Source: SUGBO.ph)
management (IT-BPM), tourism, real

estate, and trade. As such, the goal of Figure 97. SERVICES FINAL ENERGY CONSUMPTION BY FUEL
(MTOE), 2000 – 2040
becoming the core of services trade in
the Southeast Asia and the Asia-Pacific
regions pushes the sector’s aggregate
energy requirement by 6.2 percent per
year, equivalent to 15.3 MTOE by 2040.
Electricity consumption expands at an

average rate of 7.4 percent between
driven by the increased demand for
smart office technologies and state-of-
the-art amenities that cater to the
requirements of businesses and
individuals alike. Its average share to the
sector’s demand mix stands at 44.9
percent across the planning horizon as
its level reaches 7.4 MTOE in 2040 (Figure 97 and Table 74).
Table 74. SERVICES FINAL ENERGY CONSUMPTION BY FUEL (MTOE)

2020 2030 2040 AAGR* (%)
Fuel Type
Oil Products 2.47 53.50 4.33 49.31 7.28 47.60 5.56
LPG 0.46 10.05 0.79 8.96 1.63 10.66 6.50
Diesel 1.88 40.71 3.35 38.12 5.41 35.36 5.44
Fuel Oil 0.13 2.74 0.20 2.23 0.24 1.58 3.29
Biodiesel 0.04 0.80 0.07 0.75 0.11 0.70 5.44
Electricity 1.78 38.65 3.98 45.33 7.38 48.20 7.36
Biomass 0.33 7.05 0.40 4.61 0.54 3.51 2.54
Total 4.61 100 8.78 100 15.30 100 6.18
Aggregate consumption of oil products stands at 7.3 MTOE by the end of the planning period with
corresponding annual growth rate of 5.6 percent a year. Increased demand from establishments
engaged in food, accommodations, and other related services drives LPG to increase at a fastest rate
among oil products with 6.5 percent a year growth or 1.6 MTOE by 2040. Diesel, fuel oil and biodiesel
also contribute substantially to the sector’s demand mix with their combined average share of 40.8
199
Board of Investments (BOI) Industry Development Roadmaps: Services Sector

percent. Food establishments and restaurants continue to rely on biomass as an auxiliary fuel for
cooking and heating, as its consumption reaches 537 kTOE in 2040.
Agriculture. The agriculture sector plays an

important role in inclusive growth and
serves as the backbone of the economy,
specifically in the countryside. Mindful of its
crucial role, the government has
implemented the Rice Competitiveness
Enhancement Program (RCEP) and the
Farm Mechanization Program (FMP) under
Republic Act (RA) 11203 or the Rice Trade
Liberalization (RTL) Law. The European
Union-Access to Sustainable Energy
Programme (EU-ASEP) project on
Productive Uses of Renewable Energy
(PURE) for agricultural processes, as well as
The Rice/Corn Combine Harvester makes the harvesting process easier by
DOE-Department of Agriculture (DA) combining six operations such as gathering, transporting, reaping,
partnership on Renewable Energy Program threshing, cleaning and bagging into one machine. (Source: ADAMCO)
for the Agriculture and Fishery Sector (REP-
AFS) also designed to enhance productivity Figure 98. AGRICULTURE FINAL ENERGY CONSUMPTION BY FUEL
in the sector. Through the policy (kTOE), 2000 – 2040
mechanisms, energy consumption in the
sector triples to 1.4 MTOE in 2040. The
sector remains as the least contributor to
the TFEC at 1.4 percent share despite its 5.7
percent average growth rate across the
planning horizon (Figure 98 and Table 75).
Modernization and industrialization of

agriculture processes contribute to the hike
in the sector’s energy consumption.
Electricity consumption increases rapidly at
7.4 percent per year to 918.8 kTOE by 2040,
with an average share of 58.8 percent
during the planning horizon. Next to
electricity, diesel contributes 38.8 percent
share, as its utilization rises at an annual rate
of 3.7 percent to 406.9 kTOE by 2040. As a result, biodiesel demand registers 8.0 kTOE by 2040. Other
fuels used for farm equipment, crop production and fishery, such as fuel oil and gasoline, round up the
sector’s demand mix with combined average share of 2.5 percent.
Table 75. AGRICULTURE FINAL ENERGY CONSUMPTION BY FUEL (kTOE)

2020 2030 2040 AAGR* (%)
Fuel Type
Oil Products 210.90 48.28 316.05 40.84 436.88 32.04 3.71
Kerosene 0.52 0.12 0.34 0.04 0.25 0.02 -3.56
Diesel 198.41 45.42 296.63 38.33 406.90 29.84 3.66
Gasoline 9.75 2.23 15.22 1.97 24.76 1.82 4.77
Fuel Oil 2.22 0.51 3.87 0.50 4.96 0.36 4.11
Biodiesel 3.92 0.90 5.85 0.76 8.03 0.59 3.65
Electricity 221.98 50.82 451.92 58.40 918.84 67.38 7.36
Total 436.81 100 773.83 100 1,363.75 100 5.86

B. Power Supply and Demand
Peak Demand and Electricity Sales
Peak demand refers to the peak load or the highest electricity consumption occurred in a given day or
year, which also depicts the trend of electricity sales forecast with a uniform load factor 200. The
country’s peak demand increases by almost four-folds with 6.6 percent annual increment for the 20-
year period, from 15,282 megawatt (MW) in 2020 to 54,655 MW in 2040 (Table 76). With greater
economic growth prospects based on the projected GRDP, Mindanao exhibits the highest annual growth
at 7.9 percent, followed by Visayas at 7.3 percent and Luzon at 6.2 percent.
Similarly, electricity sales also increase by almost four (4) times, equivalent to a nearly 7.0 percent
growth rate a year, which stands at 335, 691 gigawatt-hour (GWh) by end of the planning from 91,369
GWh in 2020. On a per grid basis, Luzon still gets about two-thirds of the total electricity sales, while
the remaining is shared by Visayas with 16.9 percent and Mindanao with 16.0 percent.
Table 76. PEAK DEMAND AND ELECTRICITY SALES

Year Luzon Visayas Mindanao Philippines
Peak Electricity Peak Electricity Peak Electricity Peak Electricity
Demand Sales Demand Sales Demand Sales Demand Sales
(MW) (GWh) (MW) (GWh) (MW) (GWh) (MW) (GWh)
2020 11,103 65,908 2,201 13,472 1,978 11,989 15,282 91,369
2025 14,978 92,171 3,160 19,934 2,881 17,083 21,019 129,188
2030 20,358 125,277 4,495 28,361 4,275 25,350 29,128 178,988
2035 27,532 169,425 6,387 40,296 6,290 37,293 40,209 247,014
2040 36,631 225,414 8,982 56,664 9,042 53,613 54,655 335,691
AAGR (%)* 6.15 6.34 7.28 7.45 7.90 7.78 6.58 6.72
*Average annual growth rates (AAGR) from 2020 to 2040
Total Gross Generation Figure 99. GROSS GENERATION OUTPUT BY FUEL (TWh), 2000-2040
Under the REF, power generation

more than triples reaching 364.4
terawatt-hour (TWh) in 2040,
increasing at a rate of 6.6 percent
a year from 101.8 TWh in 2020.
Coal share of total power
generation decelerates by about
half from a high of 57.0 percent in
2020 to 24.6 percent in 2040.
Generation from coal only
increases at 2.2 percent annually
as only committed projects are the
added capacity over the planning
period (Figure 99 and Table 77).
Natural gas overtakes coal as

major fuel for power generation with its share increasing significantly to 40.0 percent of total from nearly
20.0 percent in 2020. This is attributed to the flexibility of its fuel to support the higher penetration of
renewables in the generation mix, specifically solar and wind. However, with the depletion of natural
gas from the Malampaya gas field, the country needs to import liquefied natural gas (LNG) to meet its
fuel requirements. LNG is seen to come in starting 2022 as assumed in this outlook through the
completion and commercial operation of two (2) LNG import terminals – composed of a floating storage
and regasification unit (FSRU) terminal and onshore regasification terminal with floating storage unit
(FSU) terminal.
200
Refers to the average load divided by the peak load in a specified time period.

The aggregate share of renewables in the generation mix reaches 35.0 percent by 2030 and maintains
it until the end of the planning period. Solar contributes 15.0 percent in the total power generation.
Hydro likewise provides 14.0 percent, while geothermal with 4.4 percent, wind with 1.4 percent and
biomass with less than 1.0 percent share of total.
Table 77. GROSS GENERATION OUTPUT BY FUEL (TWh)

2020 2030 2040 AAGR* (%)
Fuel Type
Coal 58.18 57.17 87.75 45.16 89.72 24.62 2.19
Natural Gas 19.50 19.16 37.51 19.30 146.86 40.30 10.62
Oil 2.47 2.43 1.03 0.53 0.28 0.08 -10.39
Renewable 19.29 21.24 68.04 35.01 127.54 35.00 9.28
Geothermal 10.76 10.57 15.63 8.04 16.18 4.44 2.06
Hydro 7.19 7.07 15.87 8.17 51.55 14.15 10.35
Wind 1.03 1.01 3.31 1.70 5.12 1.41 8.37
Solar 1.37 1.35 32.06 16.50 53.06 14.56 20.05
Biomass 1.26 1.24 1.16 0.60 1.63 0.45 1.29
Total 101.76 100 194.33 100 364.40 100.00 6.59
Total Installed Capacity
To meet the projected peak demand and electricity sales under the reference scenario (REF), the
country needs to increase the total installed capacity to 95.7 GW in 2040, a four-fold expansion from
26.3 GW in 2020, which will come from committed and new build power generation capacities. This
translate to total additional capacity of 69.4 GW, about two-thirds (45.6 GW) of which will be contributed
by RE technologies. Solar, having the lowest capacity factor, provides 70.0 percent of the total
renewable capacity addition (Figure 100 and Table 78).
Figure 100. TOTAL INSTALLED CAPACITY (EXISTING, COMMITTED, AND NEW BUILD) (MW), 2021 – 2040

Table 78. INSTALLED CAPACITY BY FUEL (MW)

Total Capacity Capacity Additions Total Capacity
Fuel Type 2020 2021-2030 2031-2040 2040
Levels % Shares Levels % Levels % Shares Levels % Shares
Coal 10,944 41.69 2,641 Shares
9.23 0 - 13,585 14.2
Natural Gas 3,453 13.15 3,570 12.48 17,240 42.24 24,263 25.36
Oil 4,237 16.14 381 1.33 0 - 4,618 4.83
Renewable 7,617 29.02 22,014 76.96 23,574 57.76 53,205 55.61
Geothermal 1,928 7.35 400 1.40 80 0.20 2,408 2.52
Hydro 3,779 14.40 1,987 6.95 9,660 23.67 15,426 16.12
Wind 443 1.69 772 2.70 812 1.99 2,027 2.12
Solar 1,019 3.88 18,639 65.16 12,932 31.69 32,590 34.07
Biomass 447 1.70 216 0.75 90 0.22 753 0.79
Total 26,250 100 28,606 100 40,814 100 95,670 100
Note: Reference date for 2020 total capacity is 10 June 2021
Solar expands its share to 34.1 percent of the total installed capacity by 2040. This is due to its declining
capital cost from 750 USD/KW to 650 USD/KW in 2040, resulting in the lowest levelized cost of electricity
(LCOE) among renewable technologies. Natural gas (25.4 percent share) and hydro (16.1 percent
share) also contribute significantly to total installed capacity with additional capacity of 20.8 GW and 11.
6 GW, respectively. Coal drops to 14.2 percent in 2040 from 41.7 percent in 2020 with no new
additional capacity except its committed projects due to the DOE’s declaration on coal moratorium201
for greenfield coal power plants. Other resources or technologies provide 1.0 to 5.0 percent of the total
installed capacity such as oil, geothermal, wind and biomass.
C. Total Primary Energy Supply
The accelerated economic expansion post-COVID19 and the present development trends and
strategies of the energy sector boost the country’s total primary energy supply (TPES) to an annual
growth rate of 5.2 percent from 56.4 MTOE in 2020 to 155.6 MTOE in 2040 (Table 79).
Table 79. TOTAL PRIMARY ENERGY SUPPLY BY FUEL (MTOE)

2020 2030 2040 AAGR* (%)
Fuel Type
Coal 17.34 30.76 26.71 29.05 33.06 21.24 3.28
Natural Gas 3.29 5.83 6.67 7.25 26.50 17.03 11.00
Oil 16.45 29.19 29.70 32.30 56.40 36.24 6.35
Renewable 19.29 34.22 28.89 31.41 39.67 25.49 3.67
Geothermal 9.25 16.41 13.44 14.61 13.92 8.94 2.06
Hydro 1.79 3.18 3.95 4.30 12.83 8.25 10.35
Wind 0.09 0.16 0.28 0.31 0.44 0.28 8.37
Solar 0.12 0.21 2.76 3.00 4.56 2.93 20.05
Biomass 7.56 13.42 7.52 8.18 6.17 3.97 -1.01
Biofuels 0.48 0.85 0.93 1.01 1.75 1.12 6.67
Total 56.37 100 91.97 100 155.62 100 5.21
Self-Sufficiency (%) 52.65 43.57 39.67
Self-sufficiency drops to 39.7 percent by 2040, which indicates a growing reliance on imported energy,
particularly on LNG that fills the gap due to the expected depletion of reserves of the Malampaya gas
201
DOE Advisory on the Moratorium of Endorsements for Greenfield Coal-Fired Power Projects in Line with Improving the Sustainability
of the Philippines' Electric Power Industry (Issued 22 December 2020).

field. In 2040, energy supply for power generation comprises 52.7 percent of the TPES, while supply
for non-power applications accounts for the remaining 47.3 percent.
Energy Supply for Power Application. An aggregate fuel input to power generation grows by 5.0
percent from 31.0 MTOE in 2020 to 82.0 MTOE in 2040. Of this total, the combined RE fuel input
constitutes the bulk with 39.4 percent share of the input mix and increasing yearly at 5.2 percent. On
the other hand, natural gas accounts for 32.3 percent share, as its level increases significantly by 11.4
percent a year. Despite the moratorium on new power plants, coal remains a significant fuel for power
generation with its 28.3 percent share of fuel mix under the REF for the same period. It registers annual
increments of 2.0 percent from 15.7 MTOE in 2020 to 23.2 MTOE in 2040. Meanwhile, oil contribution
to the fuel mix is nil with average growth rate of only 0.3 percent a year including biodiesel, which also
forms part of the mix as provided under the Biofuels Law of 2006 (Figure 101).
Figure 101. 2040 ENERGY SUPPLY FOR POWER Figure 102. 2040 ENERGY SUPPLY FOR NON-POWER
APPLICATIONS, REFERENCE SCENARIO – APPLICATIONS, REFERENCE SCENARIO –
FUEL SHARES (%) FUEL SHARES (%)
Energy Supply for Non-Power Application. Non-power requirements intensify at an annual rate of
5.5 percent, reaching 73.6 MTOE in 2040. End-use sectors maintain the current blend rate for biofuels
(2.0 percent biodiesel and 10.0 percent bioethanol), while the transport sector displaces 5.0 percent of
combustion engine vehicles for road transport (motorcycles, cars, jeepneys) with that of the EVs by
2040. Likewise, the implementation of EEC as a way of life continues until 2040 (Figure 102).
Indigenous Supply
➢ Fossil Fuels
Domestic oil production, including condensate, grows at a rate of 5.8 percent a year from 0.5 MTOE
in 2020 to 1.4 MTOE in 2040, and contributes a 2.3 percent share to the country’s total indigenous
supply during the same year. Together with Galoc and Alegria oil fields, which are already producing,
and other potential sources of crude oil ramp up indigenous production to 64.0 MMB by 2040.
Indigenous coal supply accounts for 29.8 percent share to total indigenous supply in 2040, as its level
rises by 5.1 percent per year to 18.4 MTOE from 6.8 MTOE in 2020. It complements the requirement of
coal-fired power plants, as well as demand from the industry sector, specifically for cement and basic
metal productions. By 2040, target coal production climbs up to 282 million metric tons (MMMT).
Natural gas supply decreases at an average rate of 0.8 percent a year from 3.5 MTOE in 2020 to 2.8
MTOE in 2040. As the Malampaya gas field nears its depletion, other fields are expected to supplement
indigenous gas towards the end of the planning period. Malampaya, which has been producing gas
since 2001 to fuel the natural gas power plants, starts to decline its pressure bringing down the
production output from 370 million standard cubic feet (MMSCF) in 2021 to 250 MMSCF in 2024.

➢ Renewable Energy
The RE target of 35.0 percent from 2030 to 2040 in power generation provides a push for the
implementation of the mandated Renewable Portfolio Standard (RPS) under the RA 9513 or the RE Act
of 2008. It results in a 3.7 percent yearly expansion in renewable supply levels to 39.1 MTOE by 2040,
equivalent to a hefty 63.4 percent share of total indigenous energy during the same year.
Geothermal energy remains the country’s major RE source as its production stands at 13.9 MTOE in
2040 from 9.3 MTOE in 2020. With a steady growth of 2.1 percent a year, it accounts for nearly 9.0
percent share of the TPES by 2040. The government now allows 100.0 percent foreign participation in
large-scale geothermal exploration and development.
Hydro and solar both exhibit the fastest growth rate at 10.3 percent and 20.0 percent, respectively.
Hydro supply rises to 12.8 MTOE in 2040 and contributes 8.2 percent to the TPES. Solar expands to
4.6 MTOE by 2040 and accounts for a 2.9 percent share of the TPES. Meanwhile, wind supply
accelerates at 8.4 percent per year across the planning horizon, increasing four-fold from 0.1 MTOE in
2020 to 0.4 MTOE by 2040.
Biomass202 for power and end-use applications contributes 4.0 percent share to the TPES in 2040,
albeit posting an annual decline of 1.0 percent due to increasing access to modern fuels in the
household sector. Of this, household accounts for 94.0 percent, and the rest for power generation.
Completing the renewable mix is biofuels with mandated blends maintained at existing levels for
biodiesel and bioethanol push domestic aggregate production to 1.2 MTOE in 2040 from 0.3 MTOE in
2020.
Net Energy Imports

Figure 103. NET ENERGY IMPORTS, BY FUEL TYPE, REFERENCE
Net oil imports increase by 6.4 SCENARIO (kTOE), 2021 – 2040
percent a year from 16.0 MTOE in
2020 to 55.0 MTOE in 2040, and
account for a 35.3 percent share of the
TPES. Finished oil products comprise
the bulk of net oil imports because of
the closure of Pilipinas Shell Refinery
in Batangas in 2020. To sustain the
supply for their customers, Shell
resorts to importing finished oil
products (Figure 103).
Coal continues to augment the

country’s energy supply amidst the
declaration of moratorium on
greenfield power plants. Net coal imports post a 1.7 percent increment a year, which translates to 14.6
MTOE by 2040 with a 9.4 percent share of the TPES.
Imports of LNG boost the supply for natural gas starting in 2022 through the commissioning of two (2)
LNG receiving terminals, out of the seven (7) LNG projects identified in this PEP update, with a combined
capacity of 8.26 million tons per annum (MTPA). By 2040, the annual LNG imports reach 23.7 MTOE.
To guarantee continuous compliance with the mandated blending schedule, 0.5 MTOE of bioethanol
imports complete the country’s net importation mix in 2040.
202
Includes charcoal, fuelwood, rice hull, bagasse, agriculture, municipal and animal waste

D. Greenhouse Gas Emissions
The GHG emission increases at an annual growth rate of 5.8 percent to 370.9 million metric tons of CO2
equivalent (MtCO2e) by 2040 from 120.0 MtCO2e in 2020. By 2040, the transformation sector
contributes 42.3 percent, followed by the transport sector with a 30.3 percent share. The industry
accounts for a 12.8 percent share, while services, households, and agriculture sectors contribute for
the remaining 14.6 percent. In terms of fuel, coal generates 35.3 percent of the GHG emissions in 2040,
driven by its utilization for power generation. On the other hand, emission from oil-based fuels, primarily
consumed in the transport sector, puts in 47.9 percent share, while natural gas completes the GHG
emission mix with its 16.8 percent share (Figure 104).
Figure 104. GHG EMISSION, BY SECTOR (left) AND BY FUEL (right): REFERENCE SCENARIO (in MTCO2e), 2020 – 2040
Short-Term Energy Demand and Supply Outlook for 2021-2024
A. Assumptions for Short-Term Energy Supply and Demand for 2021-2024
This an update to the August 2020 assessment of the impact of COVID-19 to the level of energy demand
and supply, which now extended cover up to 2024. The following are assumptions considered in the
short-term outlook:
▪ Base year for projections is 2020 actual data from the Energy Balance Table (EBT) as of 10 June
2021;
▪ Projections for 2021-2024 rely on the macroeconomic targets set by the NEDA-DBCC. In August
2021, NEDA-DBCC placed the rate of economic rebound in 2021 to 4.5 percent, followed by an
8.0 percent expansion in 2022 and sustained increments of 6.5 percent each year for 2023 and
2024, while also factored in the inflation, peso-dollar exchange rates and crude oil price projections.
In terms of energy data available, oil demand as of Q1 2021, along with the projected peak demand
and sales of electricity, were used;
▪ In general, the short-term energy supply and demand outlook made use of the relationship between
energy and economic activity, i.e., energy elasticity and intensity. Thus, the assumed effect of
programmed economic stimulus packages and recovery plans serve as major factors considered
in estimating energy demand-supply trends for the short-term; and,
▪ The projected levels of the TFEC adopts the assumptions from the Clean Energy Scenario (CES)
of the PEP 2018-2040. The estimates also reflect the impact of COVID-19 quarantine protocols per
issuances of the Inter-Agency Task Force on Emerging Infectious Diseases (IATF-EID).

B. Economic Setting Post COVID-19 (2021-2024)
▪ The government aims to achieve an economic rebound in 2021, as real GDP increases by 4.5
percent vis-à-vis its a year-ago contraction of 9.7 percent.
▪ The recovery program taps the whole-of-government approach for the implementation of four (4)
socio-economic strategies against COVID-19 amounting to P2.76 trillion: 1) emergency support
for vulnerable groups; 2) marshalling resources to fight COVID-19; 3) monetary actions to keep
the economy afloat and other financing support for emergency response and recovery initiatives;
and 4) economic recovery program to create jobs and sustain growth.203
▪ Amidst impending threats of community transmission of COVID-19 Delta variant, the timely
implementation of the vaccination program also ushers in a calibrated safe reopening of the
economy in 2021.
▪ As such, the country’s growth momentum expects to pick up with the eventual easing of
quarantine restrictions, effect of programmed economic stimulus packages and recovery plans,
and accomplished infrastructure projects. With the implementation of the said pillars, the
domestic economy achieves a fast-phased growth of 8.5 percent in 2022, combined with a
sustained 6.5 percent growth per year for 2023 and 2024.
C. Energy Demand Outlook for 2021 - 2024
Under the REF, the gradual resumption of economic activity among end-use sectors triggers the rise in
the TFEC by 5.6 percent in 2021, as the level reach 34.2 MTOE. By 2023, the TFEC exceeds its pre-
pandemic level at 37.2 MTOE. It reverts to its growth path prior to COVID-19 with 39.1 MTOE by 2024
(Table 78).
▪ Achievement of herd immunity combined with indicates stabilization as most industrial

continued compliance to minimum public health establishments resume operations. By 2024,
standards encourages the resumption of all energy consumption accelerates to 7.9 MTOE
transportation modes. It drives energy with increases in production capacity and
consumption in the transport sector to increase robust activities in the construction subsector
by 9.6 percent in 2021 to 10.8 MTOE. spurred by increased allocation for
Subsequent lifting of mobility restrictions, along infrastructure investment.
with the fully operational and upgraded
transport infrastructures, push the sector’s ▪ Through the successful calibration and safe
energy utilization to 12.8 MTOE by 2024 which reopening of businesses, energy consumption in
translates to yearly increment of 5.9 percent the services sector picks up at 6.8 percent
between 2021 and 2024. growth in 2021. Technological innovations and
digital transformations that provide growth
▪ Continuing new normal set-up (such as opportunities post-COVID19 also drive the
alternative work schemes, online selling and sector’s energy demand to 6.1 MTOE by 2024,
conduct of academic classes, etc.) sustains the representing a 9.6 percent a year average
annual increase in household energy increase from its level in 2021.
consumption – from 10.2 MTOE in 2021 to 10.5
MTOE in 2024. ▪ Cognizant of its role in speeding up recovery,
poverty reduction and inclusive growth in the
▪ Major policy reforms and government funding country, the agriculture sector ramps up its
supports provide the needed recovery stimulus energy use by 3.1 percent in 2021.
for the industry, services, and agriculture – key Modernization programs and initiatives in the
growth sectors of the Philippine economy. sector start to take hold and contribute to the 6.6
percent increase in energy demand from 2021,
▪ Energy requirement in the industry sector as its level reaches 529 KTOE in 2024.
records an upturn of 6.5 percent in 2021 and
203
DOF Opening Remarks: Pre-SONA Economy Development and Infrastructure Clusters Forum (26 April 2021)

Oil and electricity register the fastest rebound in 2021 vis-à-vis other fuels. With anticipated resumption
of major infrastructure in succeeding years, coal demand posts significant increments starting in 2022.
Biomass moves sluggishly, owing to fuel switching among households.
The TFEC under the Clean Energy Scenario (CES) registers cumulative reduction of 1.7 MTOE from
2021-2024 vis-à-vis its level under the REF for the same years. The transport sector maintains its large
share of this reduction owing to fuel diversification. All sectors also post lower energy consumption
through the implementation of the EEC practices in the utilization of both oil products and electricity.
Meanwhile, biodiesel demand increases in response to the increased in mandated blend that begins
in 2022 (Figure 105 & Table 80).
Table 80. TFEC UNDER REFERENCE SCENARIO BY SECTOR, 2019-2024
Actual (MTOE) Short-Term Outlook (MTOE) Growth Rates (%)

Sectors
2019 2020 2021 2022 2023 2024 ’20-‘21 ’21-‘24
Agriculture 0.47 0.44 0.45 0.48 0.50 0.53 3.07 5.55

Industry 7.31 6.21 6.61 7.00 7.47 7.93 6.47 6.27
Services 4.94 4.61 4.93 5.31 5.60 6.07 6.82 7.23
Household 9.71 10.03 10.15 10.28 10.44 10.53 1.24 1.24
Transport 12.70 9.84 10.78 11.19 11.95 12.80 9.55 5.89
Non-Energy 1.14 1.26 1.27 1.25 1.23 1.21 0.56 -1.66
Total 36.26 32.39 34.19 35.51 37.19 39.08 5.56 4.56
Table 81. TFEC UNDER REFERENCE SCENARIO BY FUEL, 2019-2024

Fuels
2019 2020 2021 2022 2023 2024 ’20-‘21 ’21-‘24
Coal 2.36 1.63 1.65 1.84 2.02 2.23 0.96 10.66
Natural Gas 0.06 0.04 0.04 0.04 0.04 0.04 1.08 0.63
Oil Products 18.46 16.01 17.15 17.82 18.77 19.85 7.10 4.98
Biofuels 0.56 0.47 0.51 0.53 0.56 0.60 7.19 5.79
Electricity 7.49 7.16 7.75 8.20 8.71 9.28 8.34 6.16
Biomass 7.33 7.07 7.09 7.09 7.08 7.08 0.24 -0.03
Total 36.26 32.39 34.19 35.51 37.19 39.08 5.56 4.56
Figure 105. SECTORAL (left) AND FUEL (right) LEVEL DIFFERENCE, CLEAN ENERGY VS REFERENCE, 2021-2024 (MTOE)

D. Energy Supply Outlook for 2021 - 2024
Under the REF, the TPES in 2021 escalates by 7.0 percent to 60.3 MTOE. This supports the increasing
energy requirements with the gradual resumption of economic activities.
Between 2021 and 2024, the TPES grows at an annual rate of 4.0 percent. Of the 67.8 MTOE in 2024,
coal accounts for 32.4 percent share, followed by oil with 29.4 percent, while natural gas contributes
5.3 percent. Renewables register an aggregate share of 32.9 percent during the same year (Table 82).
Table 82. TPES UNDER REFERENCE SCENARIO BY FUEL, 2019-2024

Source
2019 2020 2021 2022 2023 2024 ’20-‘21 ’21-‘24
Coal 17.48 17.34 18.24 19.92 20.93 21.97 5.20 6.40
Natural Gas 3.63 3.29 3.61 3.61 3.61 3.62 9.9 0.1
Oil 19.05 16.45 17.17 17.84 18.79 19.91 4.4 5.1
Renewable 19.69 19.29 21.30 21.38 21.76 22.29 10.4 1.5
Hydro 2.00 1.79 2.16 2.19 2.19 2.21 20.9 0.7
Geothermal 9.19 9.25 11.00 11.00 11.00 11.02 18.9 0.1
Solar 0.11 0.12 0.11 0.11 0.46 0.82 -8.5 96.8
Wind 0.09 0.09 0.13 0.15 0.15 0.15 44.1 6.4
Biomass 7.74 7.56 7.39 7.40 7.39 7.47 -2.3 0.4
Biofuels 0.57 0.48 0.51 0.53 0.56 0.60 5.9 5.9
Total 59.85 56.37 60.32 62.75 65.10 67.79 7.0 4.0
RE Share (%) 32.90 34.22 35.31 34.07 33.42 32.88
Under the CES, the TPES estimates slows down by 0.4 percentage points compared with the REF
due to the EEC measures and
Figure 106. LEVEL DIFFERENCE, CLEAN ENERGY VS. REFERENCE, 2021-2024 (MTOE)
practices, use of more
efficient technology and
higher penetration of
renewables.
Oil and coal register the

largest cumulative reduction
between the two (2)
scenarios for 2021 to 2024.
Coal drops by as much as 4.3
MTOE from the REF because
of the impact of the coal
moratorium issued in
December 2020 for the
endorsements of greenfield
coal power plants. Oil
likewise declines by 1.8
MTOE vis-à-vis the REF.
The increase in the contribution of renewables from 22.3 MTOE in the REF to 22.9 MTOE in the CES
reduces coal and oil shares. Renewables, being locally produced, serve as reliable fuel during the
pandemic. Unlike imported sources of energy supply, which bear the risk of the country source
imposing controls for their supply security. Natural gas supply increases by 19.0 percent from 3.6
MTOE in the REF to 4.3 MTOE in the CES, which displaces coal in power generation due to the
imposition of coal moratorium.

Net imports under the REF marks up by 8.3 percent to reach around 36.7 MTOE in 2024, considering
the Pilipinas Shell Refinery closure in 2020. This decreases under the CES by 0.8 percentage points
with the displacement from renewables that are not using fuels like solar and wind.
Energy self-sufficiency drops to 45.7 percent in 2024 under the REF and 46.7 percent under the CES
from 52.6 percent in 2020. The decline is a result of the depleting supply of gas from Malampaya as
LNG imports start to augment gas supply by 2022.
III. Clean Energy Scenario
A. Total Final Energy Consumption
Achieving the targets of the EEC and higher penetration of alternative fuels (electricity, natural gas and
biofuels) under the CES leads to 0.4 percentage points reduction in the annual growth rate of the TFEC
vis-à-vis the REF across the planning horizon.
By 2040, the TFEC tapers down to 93.4 MTOE or 6.0 percent lower than its 99.3 MTOE level in the REF.
The transport sector reduces its share in the TFEC as compared with its level in the REF in 2040 for the
same year, while minimal increases in shares are observed for other sectors. In terms of fuel, the
aggregate share oil slightly declines, but other fuels, such as electricity, coal and biomass, demonstrate
marginal improvement in their shares that compensate the reduction. It is significant to note that with
higher blend rate of biodiesel to diesel, its share of the TFEC doubles under CES.
Figure 107. SECTORAL (left) and FUEL (right) SHARES, 2040 REFERENCE VS. CLEAN ENERGY SCENARIO
Changes by Sector
Figure 108. LEVEL CHANGES IN TFEC BY SECTOR (CES-REF) (MTOE), 2021– 2040
The transport sector accounts

for 55.6 percent of the 6.0 MTOE
reduction in energy consumption
between the two (2) scenarios in
2040. The volume of oil products
consumed in the sector drops by
10.5 percent towards the end of
the planning period. This is
driven by the combined impact
of the EVs for road transport and
fully operational mass railway
transport systems, increased
blend rate of biodiesel and
improvements in vehicle
efficiencies and fuel standards in the transport sector. Notably, electricity consumption in the sector
surges to 471 kTOE, while that of biodiesel escalates to 779 kTOE by the end of the planning horizon.

On the other hand, the decline in energy consumption of other sectors primarily comes from the gains
in the implementation of the EEC in the utilization of oil products and electricity.
Changes by Fuel
Gains from the implementation of a Figure 109. LEVEL CHANGES IN TFEC BY FUEL (CES-REF) (MTOE), 2021–2040
10.0 percent energy savings on oil
products and electricity leads to an
economy-wide reduction in their
consumption levels by 4.2 percent
and 8.8 percent in 2040,
respectively, vis-à-vis the REF.
In addition to EEC, efficiency

improvements and fuel
diversification also contribute to the
cutback in the utilization of coal for
industrial purposes. Meanwhile, the
increased biodiesel blend from 2.0
percent to 5.0 percent effective
2022 results in the doubling of its
consumption to 1.1 MTOE by 2040.
B. Power Supply and Demand
Changes in Electricity Sales and Peak Demand
As EEC initiatives continue, electricity sales decrease under the CES. This tapers the impact of doubling
the penetration rate of the EVs in the transport sector, resulting in 6.4 percent annual growth rate of the
sales forecast, while the level is 14.0 TWh lower at 321.7 TWh vis-à-vis the REF in 2040.
Figure 110. LEVEL CHANGES IN ELECTRICITY SALES (TWh) AND PEAK DEMAND (MW) (CES-REF), 2021–2040
Changes in Gross Generation
The sales forecast trend under the CES echoes in the total generation estimates for the total Philippines,
while meeting the 50.0 percent RE target by 2040. Power generation under the CES increases by 6.4
percent a year, which is translated to 350.1 TWh by 2040 from 101.8 TWh in 2020. More than a fourth
of the total generation comes from natural gas with a 26.6 percent share. Coal contributes 23.1 percent
share, while solar and hydro contribute 20.6 percent and 18.0 percent, respectively. Geothermal, wind,
biomass, and oil provide an aggregate share of 11.7 percent.

Figure 111. 2040 GROSS GENERATION MIX BY FUEL SHARES, Reference vs Clean Energy
REF Total: 364.40 TWh CES Total: 350.07 TWh
The target of 50.0 percent RE share by 2040 provides the window for the variable renewable energy or
VRE (solar and wind) to further improve their contributions in the generation mix due to the significant
reduction in capital cost brought by improvement in learning curve of producing these renewable
technologies. Solar expands its share by 6.0 percentage points and wind by 4.8 percentage points by
2040 as compared with the REF. However, entry of more solar, wind and hydro displace natural gas
by about one-third from 146.9 TWh under REF to 93.2 TWh under CES in 2040 (Table 83).
Table 83. GROSS GENERATION BY FUEL (TWh), 2020 vs. 2040 for REF vs. CES
2020 2040 % Pts Diff in
Source Actual REF CES Shares CES
Levels % Shares Levels % Shares Levels % Shares vs REF
Coal 58.18 57.17 89.72 24.62 80.83 23.09 -1.53
Natural Gas 19.50 19.16 146.86 40.30 93.24 26.63 -13.67
Oil-based 2.47 2.43 0.28 0.08 0.52 0.15 0.07
Renewable 21.61 21.24 127.54 35.00 175.49 50.13 15.13
Geothermal 10.76 10.57 16.18 4.44 16.18 4.62 0.18
Hydro 7.19 7.07 51.55 14.15 63.14 18.03 3.89
Wind 1.03 1.01 5.12 1.41 21.77 6.22 4.81
Solar 1.37 1.35 53.06 14.56 72.01 20.57 6.01
Biomass 1.26 1.24 1.63 0.45 2.39 0.68 0.23
Total 101.76 100 364.40 100 350.07 100 -
Changes in Total Installed Figure 112. LEVEL CHANGES IN INSTALLED CAPACITIES BY FUEL (CES-
Capacity REF) (MW) 2021 – 2040
Total installed capacity under CES

increases by 23.9 percent from
95.7 GW under the REF to 118.6
GW. Renewables installed
capacity increases to 81.5 GW in
2040, equivalent to 68.7 percent
of the CES. Of this, solar
contributes 46.1 GW, wind with
11.8 GW, and hydro with 20.1 GW.
On the other hand, natural gas
capacity drops to 18.9 GW (from
23.3 GW in the REF) (Figure 112
and Table 84).

Table 84. INSTALLED CAPACITY BY FUEL (MW), CLEAN ENERGY SCENARIO

Total Capacity Capacity Additions Total Capacity
Fuel Type 2020 2021-2030 2031-2040 2040
Levels % Shares Levels % Shares Levels % Shares Levels % Shares
Coal 10,944 41.69 2,641 9.20 0 - 13,585 11.46
Natural Gas 3,453 13.15 3,750 13.07 11,680 18.36 18,883 15.93
Oil 4,237 16.14 381 1.33 0 - 4,618 3.89
Renewable 7,617 29.02 21,920 76.40 51,948 81.64 81,485 68.72
Geothermal 1,928 7.35 400 1.39 80 0.13 2,408 2.03
Hydro 3,779 14.40 1,987 6.93 14,410 22.65 20,176 17.02
Wind 443 1.69 763 2.66 10,624 16.70 11,830 9.98
Solar 1,019 3.88 18,554 64.67 26,564 41.75 46,137 38.91
Biomass 447 1.70 216 0.75 270 0.42 933 0.79
Total 26,250 100 28,692 100 63,628 100 118,570 100
Note: Reference date for 2020 total capacity is 10 June 2021
The CES requires 92.3 GW of capacity addition, which is 33.0 percent higher than the REF (69.4 GW).
Renewables provide 80.0 percent aggregate share of the total capacity addition, corresponding to 73.9
GW with solar contributing 61.0 percent. The capacity addition from renewables is up by 62.0 percent
or 28.3 GW increment from 45.6 GW of capacity addition in the REF.
C. Total Primary Energy Supply
Reflecting the slowdown of the TFEC with increasing energy efficiency and biodiesel blend at 5.0 across
all sectors, the TPES under the CES registers an annual growth rate of 4.8 percent or 0.4 percentage
points lower than its growth under the REF. By 2040, the aggregate supply level stands at 144.9 MTOE,
which is 10.7 MTOE lower vis-à-vis the REF for the same year (Figure 113).
Figure 113. TPES BY FUEL, LEVELS (left) (2020-2040) AND DIFFERENCES FOR CES-REF (right), (MTOE), 2021 – 2040
By 2040, fossil fuels (oil, coal, and natural gas) reduce their levels by 2040 with lower shares under the
CES of 35.5 percent, 20.8 percent, and 11.6 percent, respectively. Meanwhile, the RE target set forth
under the CES improves its aggregate share to 32.0 percent vis-à-vis 25.5 percent under the REF during
the same period.
Changes in Energy Supply for Power Application
Similar to the REF, fuel inputs for electricity generation in the CES comprise more than half (52.6
percent) of the TPES in 2040, albeit 7.1 percent lower due to the EEC measures and the use of more
efficient technologies in power generation. With the target penetration from renewables, coal and
natural gas inputs drop to 20.7 MTOE and 16.8 MTOE, respectively (Table 85).

Table 85. FUEL INPUT TO POWER GENERATION BY FUEL (MTOE), REF vs. CES
2020 2040 % Change
Source Actual REF CES in Levels
MTOE % Shares MTOE % Shares MTOE % Shares CES-REF
Coal 15.70 50.62 23.17 28.26 20.71 27.20 -10.61
Natural Gas 3.07 9.91 26.45 32.26 16.80 22.06 -36.51
Oil-based 0.51 1.64 0.07 0.09 0.14 0.18 93.37
Renewable 11.74 37.83 32.30 39.39 38.50 50.56 19.20
Geothermal 9.25 29.81 13.92 16.97 13.92 18.27 0.00
Hydro 1.79 5.77 12.83 15.65 15.72 20.64 22.47
Wind 0.09 0.28 0.44 0.54 1.87 2.46 325.21
Solar 0.12 0.38 4.56 5.56 6.19 8.13 35.71
Biomass 0.49 1.58 0.55 0.67 0.80 1.06 46.59
Total 31.02 100 81.99 100 76.15 100 -7.13
Changes in Energy Supply for Non-Power Application
Under the CES, non-power Table 86. NON-POWER REQUIREMENTS BY FUEL (MTOE), REF VS. CES
requirements account for a
share of 47.4 percent of the %Change in
2020 2040
Levels
TPES in 2040. By the end of
Actual REF CES CES-REF
the planning period, the
Coal 1.63 9.89 9.44 -4.60
biodiesel level is up by more
Natural Gas 0.04 0.04 0.05 18.42
than 100.0 percent as the
Oil 16.01 56.33 51.36 -8.82
blend rate more than
Biodiesel 0.15 0.50 1.14 125.94
doubles. Natural gas supply
Ethanol 0.32 1.24 1.15 -7.28
for the end-use sector
Biomass 7.07 5.63 5.60 -0.45
ramps up to 18.4 percent by
Total 25.23 73.63 68.73 -6.65
2040 under the CES. The
EEC target effectively reduces the requirements from the rest of the fuels – coal, oil, ethanol, and
biomass. As such, the aggregate non-power requirement under the CES is 6.7 percent lower than the
REF (Table 86).
Figure 114. LEVEL CHANGES IN INDIGENOUS ENERGY BY FUEL (CES-REF)
Changes in Indigenous Energy (MTOE), 2021 – 2040
The country’s indigenous energy

supply for the CES improves by
16.0 percent to 71.6 MTOE in 2040,
from 61.7 MTOE under the REF
(Figure 114). This is attributed to
higher penetration of renewables in
the power sector. Heightened
promotion and exploration of the
domestic energy sources likewise
contributes to the hike in indigenous
energy, particularly coal, hydro, and
wind. Higher mandated blend rate
also boosts up local biodiesel
production. With these
developments, the country’s energy self-sufficiency under the CES improves to 49.4 percent from only
39.7 percent in the REF. However, the energy self-sufficiency in both the CES and REF are lower than
the 2020 level of 52.6 percent due to the increasing share of natural gas in the energy mix utilizing
imported LNG for power generation.

Changes in Net Energy Imports Figure 115. LEVEL CHANGES IN NET ENERGY IMPORT BY FUEL
(CES-REF) (MTOE), 2021 – 2040
By 2040, net energy imports for the
CES declines by 22.0 percent vis-à-vis
the REF as demand slowdowns in both
the power and end-use sectors. Of the
20.6 MTOE difference in net energy
imports between the REF and the CES
in 2040, natural gas accounts for a
45.8 percent share because of greater
penetration of renewables in the
power generation. With increased
target share, renewables displace
natural gas in the CES. On the other
hand, aggressive development of
indigenous energy resources pulls
down net coal imports by 6.3 MTOE in
the CES than its level under the REF by 2040. Fuel substitution in the transport sector, increased
biodiesel blend, and EEC targets lead to reduced dependence on oil with 4.9 MTOE drop in net oil
imports by 2040 (Figure 115).
Changes in Greenhouse Gas Emissions
A more robust mitigation measure Figure 116. LEVEL CHANGES IN THE GHG EMISSION BY SECTOR (CES-
applied to both non-power and REF) (MTCO2e), 2021 – 2040
power sectors, emission level
under the CES decreases to 321.2
MtCO2e in 2040 or 13.4 percent
below the REF. The GHG emission
also slows down under the CES by
0.8 percentage points compared
with the REF.
By Sector. Emission from energy

consumption of all sectors
improves under the CES with a
13.4 percent emission reduction
level in 2040 as the country’s
energy mix gears up towards clean
fuels. The transformation sector
registers a significant emission Figure 117. LEVEL CHANGES IN THE GHG EMISSION BY FUEL
(CES-REF) (MTCO2e), 2021–2040
reduction level at 20.6 percent.
Emission from the end-use sector
also improves under the CES with
the following reductions - transport
sector by 10.5 percent, industry
sector by 5.1 percent, and other
sectors (services, households, and
agriculture) by 5.7 percent (Figure
116).
By Fuel. By 2040, oil contribute

50.5 percent to the total GHG
emissions. On the other hand, coal
adds 37.2 percent and natural gas
12.3 percent. Compared with the
REF, natural gas shows a large
reduction of 36.4 percent due to

the displacement from renewables, while coal and oil reduce their emissions by 8.9 percent and 8.6
percent, respectively. The emission reduction from fossil fuel sources is a consequence of the higher
renewable share in power generation (Figure 117).
IV. Policy Implications
A. Economic Sustainability
The energy sector’s primary agenda is greater energy security for the country, through ensuring the
availability of energy supply, while mitigating the challenges that may be brought by either human-
induced or natural disasters.
Energy Independence
Figure 118. SELF-SUFFICIENCY EXCLUDING TRADITIONAL BIOMASS
The archipelagic nature of the
Philippines makes it vulnerable to
supply disruption as it is highly
dependent on imported fossil fuels,
i.e., coal and oil for its supply since
these are transported via waters.
Currently, the net imports account for
about 54.0 percent of the
commercially available supply in the
country. To address its impact, the
country needs to increase its
dependence on indigenous resources.
For this, the energy self-sufficiency
level excluding traditional biomass204 is
being look at as one of the measures on energy security. Under the REF, self-sufficiency decreases to
36.4 percent by 2040 due to the entry of LNG as a replacement for the Malampaya gas. However, the
increased utilization of renewables under the CES increases this to 49.2 percent (Figure 118)
Resiliency of the Energy Infrastructure
The country is prone to natural disasters like typhoons and earthquakes that may impact the reliability
of indigenous resources, including energy infrastructures if measures are not put in place to address
such. Technologies that are most vulnerable to hazard due to typhoons are wind and solar power plants,
notwithstanding the impacts on transmission and distribution lines.
Figure 119. VARIABLE RE SHARE TO TOTAL GENERATION In 2020, VRE share in power
generation accounted for only 2.4
percent of the total power
generation, which considerably
leaps to 18.2 percent by 2030 for
both the REF and the CES. By
2040, the share of VRE under
CES increases to 26.9 percent
(Figure 119). The influx of VRE,
particularly solar, decreases grid
reliability. Thus, there is a need to
tap other solar technologies to
reduce reliance on solar PV and
mitigate its intermittency.
204
Traditional biomass refers to the use of wood, charcoal, agricultural residues and animal dung for cooking and heating in the residential
sector (source: IRENA).

Grid reliability
The largest units in the three (3) main grids are 647 MW for the Luzon grid,
The country is visited by an
and 150 MW each for Visayas and Mindanao, equivalent to almost 1,000 average of 20 tropical cyclones
MW. Following the required level of ancillary services per Department annually where six (6) to nine (9)
Circular (DC) 2019-12-0018,205 the regulating reserve is equal to 4.0 make significant landfalls that
percent of the system peak demand, while the contingency and impact on the physical
dispatchable reserves are equivalent to the largest and second-largest landscape and the economy.
According to scientists, this
generating unit connected to the grid, respectively. The dispatchable happens for two reasons:
reserve replenishes the contingency reserve if a generating unit trips or a
loss of a single transmission interconnection occurs. ▪ Location near the equator
makes the surrounding body
If the contingency reserve is less than the capacity of the largest unit in the of waters warmer than other
areas around the globe. The
grid, this may lead to yellow alert status. It may arise due to the continuous western pacific average
occurrence of the forced outage in the system or during the sudden water temperature is 28
shutdown of large power plants. On the other hand, red alert status degrees Celsius or 82.4
happens if the contingency reserve is zero. Fahrenheit, a temperature
where a typhoon usually
occurs. The Colin Price
In the power demand outlook, peak demand reaches 52,400 MW by 2040 Atmospheric Scientist for Tel
under the CES, nearly thrice its level in 2020. The regulating reserve of Aviv University tagged this as
4.0 percent is equivalent to 2,200 MW, which is twice the total largest “the warm pool phenomenon
single-unit in the whole system. The Luzon grid alone reaches 34,600 MW around the Philippines and
Indonesia”;
by 2040, three-folds of its peak demand in 2020. The required regulating
reserves for this is about 1,400 MW, which is two (2) times its largest single ▪ Geographical location in the
unit in 2020. Adding the equivalent largest and second largest units in the western pacific basin makes
system for the contingency and dispatchable reserves translates to almost it a part of the “typhoon belt,”
2,700 MW capacity requirement to cover the grid required operating which extends between 10 to
40 degrees’ latitude, among
reserves. the countries that
experiences the most
The significant share of VRE requires more ancillary capacity due to its ravaging storms.
intermittency during peak hours. For the 25.0 percent reserve margin
estimates, the power outlook considers capacity credit206 of 60.0 percent https://fulgararchitects.com/references/tw
o-reasons-why-the-philippines-is-prone-
for solar and 20.0 percent for wind. Reducing this to 20.0 percent for solar to-typhoon/
and zero for wind fits the required capacity for 25.0 percent reserve margin
for both scenarios as shown in Figure 120. If we set the capacity credit to zero, the reserve capacity
Figure 120. PEAK DEMAND, 25% RESERVE MARGIN Figure 121. RESERVE MARGIN WITH VRE CAPACITY
VIS-À-VIS NET CAPACITY BY SCENARIO CREDIT = ZERO
0: Net Capacity without VRE Note: On reserve capacity, forced outages are not considered.
1: Net Capacity at 20.0 percent capacity credit for solar
205
Issued on 04 December 2019
206
Capacity credit is defined as the fraction of the rated capacity considered firm for the purposes of calculating the reserve margin
(source: LEAP).

reduces to 10.0 percent by 2030, and dwindles to 7.0 percent mark by 2040, which meets only the
required regulating reserves and a portion of the contingency reserves towards 2040 under the CES.
Figure 121 exhibits this impact on the system. With the anticipated increase in peak demand by
2040, the operational reserves shrink by half from 16.4 percent in 2020 to 7.5 percent 2040. With
a large share of VREs in the grid, its intermittency may result in grid instability. This requires revisiting
the policy for operational reserves vis-à-vis tripling of peak demand level by 2040 to ensure grid
reliability.
To address the issue on intermittency of VREs, 10.0 percent to 20.0 percent of the solar capacity
needs to include or consider the following technologies:
▪ Battery storage;
▪ Hybridized with clean stable source of energy i.e., LNG, hydropower and biomass; and,
▪ Circulating Solar thermal.
As a way forward to further improve the power outlook, the following are being considered to be
undertaken:
▪ Conduct of additional studies to Figure 122. REDUCTION TARGETS OF ENERGY INTENSITY (2005=100)
update the Philippines’ Reliability
Indices;
▪ Develop more scenarios to
examine the effect of entry of new
emerging technologies and future
policies, such as power plant
decommissioning; and
▪ Conduct sectoral demand
forecasting to examine the impacts
of increased deployment of
distributed solar PV system, EVs
utilization, demand-side
management programs, and
energy efficiency improvements in
the future.
Figure 123. RE CAPACITY SHARES TARGET BY 2025 OF ASEAN
Regional Energy Targets
The Asia-Pacific Economic Cooperation

(APEC) sets an aspirational target to
reduce aggregate energy intensity by
25.0 percent in 2030 to 45.0 percent by
2035 based on 2005 level. Meanwhile,
the Association of Southeast Asian
Nations (ASEAN), under its ASEAN Plan
of Action for Energy Cooperation
(APAEC) 2016-2025, targets a reduction
in energy intensity of 20.0 percent by
2020 and 32.0 percent by 2025 with 2005
as the base year. Figure 122 shows that both REF and CES meet these regional targets, which imply
that EEC implementation as a way of life suffices these targets.
Both APEC and ASEAN have also recognized the importance of setting a target for RE penetration in
the energy mix to accelerate transition to clean energy future. The APEC endorsed a goal of doubling
the share of renewables in the TFEC207 and power generation mix by 2030 as compared to 2010 levels.
On the other hand, the APAEC adopted the target of 23.0 percent share of renewables in the TPES and
207
Excluding traditional biomass from residential, commercial, and agricultural sectors.

35.0 percent in installed power capacity by 2025. In this Energy Outlook, the country falls short to
achieving the APEC RE target due to already high share of renewables, but exceeds the APAEC target
as shown in Figure 123.
Economic structure and Pattern of Energy Use In developed countries, modern

energy services (lighting, heating,
The current impact of COVID-19 is eminent in the pattern cooking, etc.) are almost universally
of energy use. Changes in economic structure and pattern available. The energy is clean, safe,
of energy use for the household and transport sector are reliable, and affordable.
apparent due to the restrictions in movement of people to
combat the COVID-19. Fuel switching is also evident in - International Atomic Energy Agency (IAEA)
the household sectors because of the work from home
scheme. This requires updating of the Household Energy
Consumption Survey (HECS) as well as surveys for other sectors.
B. Social Sustainability
Figure 124. BLENDED COST OF ELECTRICITY GENERATION
Social dimension measures the
country’s ability to provide universal
access to reliable, affordable, and
abundant energy for domestic and
commercial use. It captures basic
access to electricity and clean fuel
and technology for cooking, access to
prosperity-enabling levels of energy
consumption, and affordability of
electricity, gas, and fuel.208
Blended Cost of Electricity

Generation
*Forex: PhP50/USD exchange rate
Based on the generation mix, the
blended cost of electricity is cheaper in the CES vis-à-vis the REF by 1.0 percent in 2030 or PhP2.97
per kilowatt-hour (KWh), and by 5.0 percent or PhP3.41/KWh in 2040 (Figure 124). The decrease is
evident between 2035 and 2040 as the share of solar generation increases during these periods. If the
blended cost represents the average generation cost to the end-user, other costs such as transmission,
distribution, and governments taxes escalate the cost. Adding up these costs doubles the blended cost
for residential, two-fifth for commercial, and one-third for industrial end-users. This is because half of
the electricity rate accounts for generation cost for residential, while three-fifths and two-thirds for
commercial and industrial end-users, respectively.209
Table 87. ELECTRICITY RATES IN PH BASED ON BLENDED COST (USD/kWh)

Sectors
Year
Residential Commercial Industrial
REF 0.113 0.097 0.084
2025
CES 0.112 0.096 0.084
REF 0.122 0.104 0.090
2030
CES 0.120 0.103 0.089
REF 0.134 0.115 0.100
2035
CES 0.133 0.113 0.098
REF 0.145 0.124 0.108
2040
CES 0.138 0.118 0.102
208
IAEA Energy Indicators for Sustainable Development (EISD), Chapter 2 (2005)
209
DOE, Philippine Energy Plan 2018-2040 Update

FIGURE 125. COMPARATIVE ELECTRICITY RATES (USD/KWH) IN ASEAN REGION Comparing the electricity
(as of June 2021) rates among the ASEAN
region, the Philippines has
the highest. With the mark
up in the blended cost, the
cost registers 0.14
USD/KWh for residential,
0.12 USD/KWh for
commercial and 0.10
USD/KWh for industrial
end-user by 2040 under the
CES (Table 85). These
costs are comparable to
that of Singapore electricity
rates in July 2021 (Figure
125).
The capital cost of solar PV decreases because of improvement in learning curve, from USD750
USD/KW in 2020 to 650 USD/KW in 2040. However, mitigating its intermittency entails additional cost.
This cost may add up for the installation of technologies like battery storage, hybridized with clean stable
source of energy (i.e., LNG, hydropower and biomass and concentrating solar thermal). The
implementation of the Competitive Selection Process (CSP) and Green Energy Auction Program
(GEAP) may alleviate this cost impact to the electricity users.
The CSP mandates all DU’s to undergo this process in securing power supply agreement (PSA) for an
adequate and proper power supply contracting through a transparent procedure. This is to protect end-
users with unnecessary exposure in the volatility of spot prices in the Wholesale Electricity Spot Market
(WESM) which redounds to least cost supply of electricity.
Meanwhile, the GEAP introduces greater competition among RE developers and generators and assists
them in mitigating market exposure and risks related to renewable projects, thus easing the effect on
cost. It also facilitates economies of scale due to the aggregation of energy requirements based on RPS
mandates. The deployment of and access to clean technology also provides a window for technology
innovation that can bring down cost through localization. Article 10 of the Paris Agreement 2015
includes a provision of technology transfer aspect for the deployment of technologies that mitigate and
adapt to the adverse effect of climate change
Per Capita Consumption for Modern Fuel
Energy per capita

Figure 126. MODERN FUEL ENERGY CONSUMPTION PER CAPITA VS. GDP PER CAPITA
consumption excluding
the conventional biomass
for end-use increases by
5.7 percent in the REF by
2040 and 0.3 percentage
points lower for the CES,
while population increases
by an average growth of
1.0 percent annually.
Figure 126 shows that per
capita consumption is
directly proportional to
GDP per capita. Per
capita consumption of
modern fuel corresponds
to 0.6 ton of oil equivalent
(TOE) per PhP100,000 of GDP (TOE/PhP100k).

C. Environmental Sustainability Figure 127. GHG INTENSITY, 2005-2040
GHG Intensity
Policy measures for clean energy to reduce the

GHG emission result in a decline of the GHG
intensity under the REF by 1.6 percent annually
from 0.68 tons of CO2 equivalent per PhP100k
of GDP (tCO2e/PhP100k) at 2018 prices in 2020
to 0.49 tCO2e/PhP100k by 2040. The rate of
reduction in the GHG intensity under CES is
faster by 0.7 percentage point as it reaches 0.43
tCO2e/PhP100k by 2040. This indicates that the
GHG mitigation initiative is leading towards
energy transition (Figure 127).
Figure 128. GHG EMISSION PER CAPITA
GHG per Capita
Per capita emission increases faster at 5.7

percent a year than the country’s population.
Under REF, per capita emission slowly moves up
to 2.4 tCO2e in 2040 from 1.9 tCO2e in 2020,
which is equivalent to a 4.7 percent growth rate
a year. For the CES, its growth is lower by 0.8
percentage points.
Meanwhile, per capita emission to GDP per

capita equates to 0.6 tCO2e/PhP100k of GDP.
This relationship is similar to the per capita
consumption of modern fuels, which indicates
that as the country climbs up the peak of the
economy, the GHG emission increases (Figure Figure 129. GHG EMISSION PER CAPITA VS. GDP PER CAPITA
128 & 129).
Impact on Land-use
The Philippines comprises of 298 thousand

square kilometers (km2). In 2018, 51.6 percent
covers forest land, 38.6 percent for agricultural
land, 6.5 percent for grassland, 2.3 percent for
inland water and 1.0 percent for the built-up land
and the rest for barren land. Built-up land covers
land-use of buildings, establishments, and
pavements. (Figure 130)
Using the rule of thumb of 1.0 hectare of land for

every 1.0 MW of solar PV, the built-up land increases by 7.8 percent for the REF and 11.1 percent for
the CES. The influx of solar for both the REF (31.6 GW) and the CES (45.1 GW) by 2040 requires 325.9
km2 and 461.4 km2, respectively. This reduces agricultural land since it is the most viable land for solar
use as it is under flatlands, where solar radiation is easily captured (Figure 131).
This effect necessitates land-use policy for agriculture vis-a-vis energy use to mitigate the negative
impact on food security. The conduct of a study on RE resource assessment, as well as solar rooftop
installation assessment is also necessary for the availability of areas to reduce the land requirements
for solar. Further, a study must also be conducted on climate, land, energy, and water nexus to balance
the interrelationships among other sectors of the economy.

Figure 130. 2018 PHILIPPINE LAND COVER

DISTRIBUTION BY TYPE Figure 131. SOLAR LAND REQUIREMENTS
Energy Transition
In energy transition, clean and modern Figure 132. IMPACT OF ENERGY TRANSITION TO FUEL SHARES
energy accounts for a higher share in the (%) in the Generation (top) and Energy Mix (bottom)
TPES and power generation mix. Such
represents the combine share of natural gas
and renewable energy excluding traditional
biomass. For power generation, the country
reached a transition with the entry of natural
gas from Malampaya starting in 2002 until
2014. This narrowed the gap in the total
supply or the TPES with 12.0 percentage
points difference between clean energy vis-
à-vis the combined share of oil and coal
from 2006 and 2009. Clean energy share
under the TPES reached around 44.0
percent within this period. However, its
share declined towards 2020 with the influx
of large coal-fired power plants from 2015
amidst the promotion of renewables in
power generation, which also led to a wider
gap in the TPES coupled with the increases
of oil in the transport sector.
Figure 132 shows the impact of the CES on

the shares of fossil fuels against renewables
in the electricity generation and energy mix.
Consistent with the push for renewables as
envisioned under the National Renewable
Energy Program (NREP) 2020-2040, RE
share is higher under the CES, allowing for
lesser dependence on fossil fuels. This
means that the energy transition starts in 2028 in the power sector.
However, for the whole energy sector, the share of clean energy only reaches to 41.4 percent by 2040.
This provides an avenue for the improvement of mitigation measures in the non-power sector,
specifically on transport. The PURE project for agriculture processes and the DREAMS projects by
UNDP that cater to households in far-flung areas under the SF4RE project encourages expanded access
to and increased clean energy among end-use sectors. Likewise, increasing the EEC target offers the
most cost-effective measure among the mitigation options towards clean energy. There is also a
window to amplify biofuel blending as it reduces oil consumption among sectors, particularly in the
transport sector. Further, to replace coal for baseload generation, it is imperative to explore and harness
other clean technologies like nuclear and hydrogen.

B. ENVIRONMENTAL MANAGEMENT
The DOE has strived to achieve a balance between energy development and environmental
sustainability and shall continue to pursue this path even when confronted with new challenges and
pressing issues such as unforeseen event like the pandemic. The energy sector agenda integrated the
efforts on the promotion and adoption of clean, efficient, reliable, resilient and sustainable energy as a
contributor to the country’s economic development, with a sound environmental management (Figure
133) as a significant part of the sector’s strategic directions.
Over the years, securing the energy supply requirements for the country’s growing economy has been
at the forefront of the sector’s programs and initiatives. However, the environmental issues from energy
exploration and development to transformation and delivery of energy services to end-users should be
addressed through stakeholders’ commitments to lessen or mitigate the impacts, such as the effects of
climate change, to the public. The following are the best practices on environmental management in
the country’s energy sector:
▪ Integration of environmental issues in business decisions through the use of management

systems;
▪ Integration of health, safety and environmental management systems;
▪ Consideration of all environmental components (air, water, land, people and biodiversity) in
decision making at strategic and operational levels;
▪ Implementation of appropriate pollution prevention techniques, including the re-use and/or
recycling of waste components;
▪ Evaluation of alternatives on a cost, benefit and risk bases that include environmental values;
▪ Minimization of resource inputs through efficiency measures; and,
▪ Innovation and improvement on environmental protection.
Figure 133. ENVIRONMENTAL MANAGEMENT
ENVIRONMENTAL
MANAGEMENT

The Philippines Environmental Impact Statement System and Environmental Impact Assessment
Reports of Energy Projects
In 1979, the Philippines Environmental Impact Statement System (PEISS) was established through
Presidential Decree (PD) 1586. This required project proponents to prepare and submit an
Environmental Impact Statement (EIS) that describes the potential effects of a project on environment
and the corresponding mitigating measures, as well as the Environmental Performance Report and
Management Plan (EPRMP) for existing projects that will undergo expansion or change major project
components.
These documents assess the possible environmental impacts of the projects to the host community and
incorporate environmental management measures in project design to address such impacts. The
identified measures should in included in the Environmental Management Plan (EMP), Environmental
Monitoring Plan (EMoP), Social Development Plan (SDP), and at the same time determine and lay down
the project’s proposed compliance to the Clean Air Act, Clean Water Act, Solid Waste Management Act,
and Toxic Substances and Hazardous Waste Management Act.
For project’s undergoing EPRMP, the project’s environmental and socio-economic performance in the
last five (5) years, if applicable, are assessed together with the additional environmental impacts that
will be posed by the project’s expansion vis-à-vis the additional mitigating measures proposed by the
proponent.
There are four (4) project categories under the PEISS and depending on the capacity, location, project
components and specific undertakings, energy projects can fall in any one of the following categories:
▪ Category A projects or undertakings classified as Environmentally Critical Projects (ECPs), as

they pose high risks or negative environmental impacts (e.g., energy facilities and infrastructure
projects, power plants);
▪ Category B projects or undertakings classified as ECP under Category A, and significantly affect
the quality of environment due to their location in an Environmentally Critical Area (ECA) – an
ecologically, socially, or geologically sensitive area (e.g., renewable energy projects);
▪ Category C projects or undertakings, not classified under Category A or B, that intend to directly
enhance the quality of environment or directly address existing environmental problems; and,
▪ Category D projects or undertakings that are deemed unlikely to cause significant adverse
impact on the quality of environment. These projects are not covered by PEISS.
Categories A and B are required to secure an Environmental Compliance Certificate (ECC), while
Categories C and D only need to obtain a Certificate of Non-Coverage (CNC).
The DOE, as a member of the Environmental Impact Assessment Review Committee (EIARC)210, acts
either as a Resource Person or Technical Reviewer. Likewise, the DOE actively participates in the
continuous enhancement and/or improvement specifically on the procedures and requirements in the
conduct and review of EIA Studies and in the Environmental Compliance Monitoring and Validation
Reporting.
The ECC issued to energy projects describes and outlines all the major project components together
with the environmental management activities that the project must undertake from construction,
operation and maintenance, and project decommissioning. The General Conditions and Restrictions
identify the project’s commitments based on all the environmental laws, policies and programs.
Meanwhile, the Project Assessment Tool provides guidance to project developers on the various
permitting and other regulatory requirements from national government agencies and local government
units (LGUs).
210
Composed of various experts (land, air, water, and social sectors) that review and evaluate the project impacts based on the submitted
EIS and EPRMP

There are 10 ECCs issued from 2019-2020 to different energy projects including coal-fired power
plants, oil-based power plant, hydro plants, waste to energy power plants and coal resource
development.
Environmental Compliance and Monitoring
The DOE conducts environmental compliance monitoring of energy projects together with stakeholders
to ensure that social and environmental standards are met and that the necessary measures to the
project’s environmental impacts are implemented. As a mechanism for monitoring compliance, the
Multi-partite Monitoring Team (MMT)211 is established as one of the ECC conditions for ECPs and
projects located in ECAs. The MMT ensures public participation from project construction to
decommissioning.
The quarterly monitoring of the measures for the different modules outlined in the EMP, EMoP and SDP
is undertaken to determine if the project has adverse impacts to the environment and host community.
Correspondingly, this is validated through the preparation of the semestral Compliance Monitoring and
Validation Report (CMVR) of the MMT to the regional and central offices of the Environmental
Management Bureau (EMB) of the Department of Environment of Natural Resources (DENR). The
CMVR is signed off by members of the MMT and includes recommendations on how to improve the
project’s environmental performance.
Further, the MMT also ensures that expertise and experiences are shared among its members and the
project has received public and social acceptance, including the regular conduct of Information,
Education and Communication (IEC) activities to all concerned stakeholders. To operationalize its
environmental compliance monitoring and verification activities, the MMT prepares its Annual Work and
Financial Plan (AWFP) that covers air and water quality, biophysical and socioeconomic monitoring.
Addressing Climate Change
Energy is one of the key sectors in the National Climate Change Action Plan (NCCAP), which identifies
both mitigation and adaptation initiatives to address climate change. The energy sector takes into
consideration the need to institutionalize various policies and measures to mitigate the effects of climate
change.
Mindful of the country’s commitment to the United Nations Framework Convention on Climate Change
(UNFCCC), the energy sector prepared its inputs to the country’s Nationally Determined Contributions
(NDC) based on the PEP 2018-2040 strategies, targets, and projections. On 15 April 2021, the
Philippines submitted its NDC that aims to reduce the country’s 2030 greenhouse gas (GHG) emissions
by 75.0 percent as an aspirational target as compared with the Business-as-Usual (BAU) forecasts. This
comprises of 72.29 percent conditional and 2.71 percent unconditional targets. The energy sector GHG
emissions are mainly from the combustion of fossil fuels and other activities related to the energy
production.
In the NDC commitment, the DOE also intends to achieve improved energy security and reliability,
energy access and affordability of energy products and services. In addition, the policies and programs
to be implemented should not result in additional burden to energy consumers. The targets and
timelines in both the NCCAP and the NDC are harmonized with the PEP in aggressively pursuing
enhanced initiatives on energy efficiency and conservation, renewable energy and alternative fuels
development and utilization, entry of new and emerging clean technologies, implementation of energy
resiliency standards, and even the adoption of information and communication technology from the
transformation sector to end users.
The country’s NDC commitment covers all the GHG-emitting sectors with 2010 as the base year for the
emission with projection until 2030. The DOE maintains that the commitment of the energy sector
211
Composed of representatives from the relevant government agencies, LGUs, non-government organizations (NGOs), and peoples’
organizations (POs), the community, the women’s sector, and whenever necessary, from the academe and other sectors.

should be based on sound technical assessment or evidence. The energy sector GHG emission
commitment is 2.8 percent reduction from 2020-2030, which includes both conditional and
unconditional targets, using the Clean Energy Scenario (CES) of the PEP 2018-2040. This is equivalent
to GHG emission reduction of about 45.9 million tons carbon dioxide equivalent (MTCO2e) or about 1.37
percent of the country’s NDC target.
Table 88. GHG EMISSIONS AND NDC (MTCO2e)

2020
2010 2015
NDC BAU Actual
Transformation 33.02 47.8 81.39 70.78
Industry 12.04 13.0 15.99 10.62
Others 8.05 7.0 12.51 11.17
Total 53.11 67.8 109.89 92.57
Table 88 shows the growth of the country’s GHG emissions from 2010 to 2020, which reflected an
increase of more than 74.3 percent for the period or about 5.9 percent growth a year, from 53.1 MTCO2e
in 2010 to 92.6 MTCO2e. The transformation sector or electricity generation increased its emission by
114.4 percent, followed by the other sectors with 38.8 percent growth, while the industry exhibited a
decrease of 11.8 percent for the same period. Compared with NDC targets under the BAU, the 2020
actual total emission was lower by 15.8 percent, translated to 17.3 MTCO2e of GHG avoidance. Aside
from these emission reductions, an additional of 47.5 MTCO2e of GHG emissions was avoided from the
21.6 terawatt-hour (TWh) of electricity generated from renewables in 2020.
PLANS AND PROGRAMS
The energy sector has put emphasis on incessantly conducting monitoring and validation activities, and
at the same time implementing mitigation measures as a function of adaptation strategies. These
approaches are geared toward fully embracing the country’s direction of transitioning to clean, efficient,
reliable, resilient and sustainable energy supply, while reducing and/or avoiding GHG emissions. The
sector’s NDC likewise adopted the same in coming up with its targets. Further, policies, plans,
programs and projects are carefully being recalibrated to facilitate the transition and achieve a
sustainable and low carbon energy future.
Climate Change Mitigation
Taking off from the PEP 2018-2040, the mitigation measures to reduce the energy sector’s GHG
emissions shall be pursued through accelerated development of renewable energy and increased
application of energy efficiency and conservation measures, accompanied by monitoring/accounting,
reporting and verification of potential emission reduction. And to address the challenges on cost and
financing, and data access and transparency, the DOE shall improve the integration of GHG mitigating
measures in policies, plans, strategies, and measures including developing guidelines and establishing
a system on monitoring/accounting, reporting and validation. Likewise, the conduct of research,
dissemination of knowledge and best practices on mitigation and financing mechanisms are considered
vital in strengthening efforts toward this end. These critical initiatives facilitate the attainment of the
NDC target and contribute to the just energy transition goal of this Plan.
Climate Change Adaptation
Energy facilities and infrastructures have been affected by the continuously onslaught of extreme
weather events and other natural calamities. The energy sector is not spared from the impacts of
climate change, thus adopting the principle of “Build Back Better” to be more resilient from devastation.
The principles of sustainable energy, disaster pro-active and responsive power system together with
environmental protection through the establishment of energy resilient infrastructures should be
incorporated in the planning process and implementation of energy projects. Given the short- and
medium-term impacts of climate change to the energy sector and the economy, the ultimate objective

is for these guiding principles on adaptation be imparted to all stakeholders, and for energy
infrastructure projects, facilities and system to be climate proofed to withstand extreme weather events.
The Energy Resiliency Roadmap and the formulation of Energy Resiliency Standards complement
programs, strategies, and activities on climate change adaptation.
The vulnerability assessment of energy infrastructures and systems, as well as the development of
models on climate change impacts to energy supply along with energy resiliency policy shall be
implemented as part of the sector’s climate change adaptation strategy over the planning period.
Improvement of transmission and distribution networks together with enhanced fuel distribution system
shall likewise be pursued with technological innovations supported by sustainable financing
mechanisms.
Development of the National GHG Inventory Management and Reporting System
As stipulated under EO 174212, the DOE leads the GHG inventory of the energy sector and is tasked to
conduct, document, archive and monitor the GHG emissions inventory from the combustion of fossil
fuels in stationary sources, mobile sources, and fugitive emissions. The GHG emissions inventory
serves as a tool for the government to determine areas where emissions can be reduced and identify
measures to be implemented in reducing such, which also aids in realizing the NDC targets.
Building on the 2010 GHG Emission Inventory Report of the energy sector submitted to the Climate
Change Commission (CCC) as part of the NDC, the DOE is currently completing the 2015 and 2020
GHG Emission Inventory. The current initiative is applying the findings of the quality assurance
conducted by the experts from the UNFCCC. The GHG Inventory Report will be incorporated in the
validation of the NDC targets assessment, the preparation of the Third National Communication (TNC)
and the Biennial Update Report and/or Biennial Transparency Report as required by the UNFCCC and
the Paris Agreement.
The DOE GHG Inventory Team, which was recently reconstituted to incorporate the developments
brought about by the Republic Act (RA) 11825 (Energy Efficiency and Conservation Act of 2019), will
continue to pursue this endeavor by improving capacity on data collection and actual inventory process.
UNFCCC and the Paris Agreement
In 1992, the UNFCCC was adopted as an inter-governmental treaty and international political response
to combat dangerous human interference with the climate system and sets out a framework for action
aimed at stabilizing atmospheric concentrations of GHG. Under the UNFCCC, the Paris Agreement, a
new legally binding framework for an internationally coordinated effort to tackle climate change, was
signed and adopted by 196 UN member states at the Conference of Parties (COP 21) in December
2015. It recognizes the different responsibilities and actions that each Party can take to achieve the
goal of limiting the increase of global temperature to below 2.0 degrees Celsius (°C) in terms of
mitigation, finance, and capacity building. It has also outlined additional efforts that all Parties must
undertake focusing on the preparation of the NDC, adaptation plan, loss and damage, technology
transfer and development and transparency.
Article 3 of the Agreement provides the general guiding principles on nationally determined
contributions to the global response to climate change by all Parties, while recognizing the need to
support developing country Parties for the effective implementation of this Agreement. Meanwhile,
Article 4 states that all Parties should act to protect the climate system on the basis of equality and
"common but differentiated responsibilities and respective capabilities." Likewise, developed country
Parties should take the lead role in mitigating emissions, provide the developing country Parties with
new and additional financial resources to meet the full cost that will be incurred to reduce emissions
and implement adaptation actions, as well as incremental costs of technology, capacity building and
other mitigation measures.
212
“Institutionalizing the Philippine Greenhouse Gas Inventory Management and Reporting System” issued in November 2014.

Parties to the UNFCCC continue to meet regularly to take stock of the progress in implementing their
obligations and consider future actions to address climate change, which include the Kyoto Protocol
and its Doha Amendment and the Paris Agreement.
In December 1997, the Kyoto Protocol was signed, which commits the industrialized countries and
countries in transition to a market economy to achieve GHG emission reduction targets by an average
of 5.2 percent (below the 1990 levels). To extend the commitment period under this Protocol from 2012
to 2020, the Doha Amendment was adopted in 2014.
Energy Sector NDC
The energy sector remains as the country’s major source of GHG emissions, which is also not spared
from impacts of climate change affecting the day-to-day operations of various energy and power
facilities and infrastructures. The DOE maintains that the NDC is a two-pronged complementary
approach that highlights adaptation actions with mitigation co-benefits in the transformation, industry
and other sectors, while the transport sector is treated separately given that the lead national
government agency for its NDC preparation is the Department of Transportation (DOTr).
The 2020-2030 CES, when compared to the NDC target submitted to the UNFCCC based on the PEP
2018-2040 (includes both conditional and unconditional emission reduction) of about 2.8 percent or
around 45.9 MTCO2e, will increase by almost seven (7) times at 316.8 MTCO2e. This is about 19.1
percent reduction in terms of aggregate emission reduction for the same period, from 1,659.5 MTCO2e
in PEP 2018-2040 BAU to 1,341.0 MTCO2e in PEP 2020-2040 CES (Table 89).
Table 89. NDC TARGET ASSESSMENT HIGHLIGHT YEARS (MTCO2e)

Total Total
2020 2025 2030 2035 2040
2020-2030 2020-2040
PEP 2018-2040: BAU 109.89 151.50 192.26 1,659.52 246.15 339.48 4,277.59
Transformation 81.39 115.19 145.69 1,254.84 185.55 259.48 3,241.16
Industry 15.99 20.63 27.00 230.72 36.26 50.08 612.53
Other Sectors 12.51 15.67 19.56 173.96 24.34 29.93 423.90
NDC Reduction Targets 2.71 3.76 10.22 45.92 39.16 92.73 525.59
PEP 2020-2040: CES 92.57 120.91 152.40 1,341.00 187.05 220.77 3,238.15
Transformation 70.78 89.75 105.83 982.10 118.57 124.58 2,159.81
Industry 10.62 14.75 21.81 168.85 32.03 45.05 505.51
Other Sectors 11.17 16.41 24.76 190.05 36.45 51.13 572.83
GHG Reduction from

17.32 30.59 39.85 316.78 59.10 118.72 1,039.44
PEP 2018-2040: BAU
This is mainly due to the decreased electricity generation from coal with the policy issuance on
moratorium for greenfield coal power projects, as replaced by increased electricity generation from
renewables through the implementation of various programs and mechanisms including the Renewable
Portfolio Standard (RPS), Green Energy Auction Program (GEAP), Green Energy Option Program
(GEOP), and Net Metering, among others. The greater penetration of renewables is also supported by
enabling laws that reduce the processing of required securing permits and clearance from both the
national government and LGUs like the Energy Virtual One-Stop Shop (EVOSS) Act of 2019 (RA 11234).
A similar trend is also observed when the 2020-2040 CES is compared with the NDC targets (Table 89
and Figure 134). The aggregate NDC GHG reduction target of 525.6 MTCO2e over the planning period
nearly doubles to 1,039.4 MTCO2e under the CES, equivalent to 24.3 percent reduction from the BAU.
Taking into account the GHG reduction and the GHG avoidance of 1,875.3 MTCO 2e from renewable-
based electricity generation, the energy sector realizes a 68.1 percent reduction/avoidance from BAU.

Figure 134. GHG EMISSIONS AND AVOIDANCE OF NDC TARGETS AND 2020–2040 CES
The projected emission reduction and avoidance based on the energy sector’s initiatives send the signal
that the country is doing its part to mitigate climate change’s impacts. It should be noted that the
country is not a major GHG emitter, but rate considered as one of the most vulnerable to climate change.
The DOE’s submission of the energy sector NDC, particularly the conditional target, emphasizes that it
should not result in an increase in energy cost to consumers. To be able to carry out these initiatives
wherein there are attendant costs for implementation, it is therefore important that sustainable financing
mechanisms are crafted and enabled.
It is also imperative that the energy sector stakeholders maximize and capitalize all resources available
to attain the NDC targets. The realization of the CES, a scenario that will support the country’s NDC
initiatives, necessitates the infusion of USD 119 billion investment, which covers the build cost for
additional renewable energy capacities. This amount of investment is necessary to aid the country in
transforming and transitioning the energy system into a clean and sustainable one.
Accordingly, incremental costs of the required capacity-building and technology applications in relation
to the NDC efforts should be provided through capital (new and additional) emanating from developed
countries that utilize public and private investments. This is central in the DOE’s call for climate justice
as it pertains to the commitments that developed countries must undertake in reference to Article 4 of
the Paris Agreement.
Energy Transition
The move towards attaining a just energy transition compelled the energy sector to recalibrate its
policies, programs, strategies, and measures. The main objective of the transition is not the total
elimination of fossil fuels but rather on maximizing the gains and benefits from renewable energy
installations, energy efficiency and conservation, and utilization of clean alternative fuels for transport.
With this backdrop, the sector will be steered in its path to creating a sustainable future.
The envisioned transformation and transition should integrate climate change mitigation and adaptation
strategies and support the United Nation’s Sustainable Development Goal (SDG), specifically on
Affordable and Clean Energy (SDG 7). As such, the sector’s responses are articulated to be more
robust over the planning period and likely to result in utilizing new and advanced technologies and
increasing capacity-building initiatives and adopting of innovative financing mechanisms.
In the energy transition, the country’s power generation shifts from being a coal-dependent to a more
diverse one with substantial contribution from renewables and natural gas. Natural gas is deemed as
the transition fuel that supports renewable-based generation. The combination share of these energy

resources reaches more than 75.0 percent of the total power generation in the CES by 2040. In the
REF, the average share of fossil-fuel based (coal and oil) generation stands at 46.4 percent as compared
with 54.0 percent of aggregate share of renewables and natural gas as shown in Figure 135.
A look at the CES depicts that RE-based capacity takes an average share of 50.6 percent of the total
system capacity within the planning period reaching a high of almost 69.0 percent in 2040. To highlight
CES aggressive push for renewables, the total capacity addition from renewables in this scenario
reaches 73,868 MW, representing 80.0 percent of total power projects be installed over the period.
Solar contributes 61.1 percent of the total renewable capacity, followed by hydro (22.2 percent) and
wind (15.4 percent). The gains from the implementation of the moratorium on greenfield coal power
projects is also evident as there are less coal added in the capacity mix. The last coal projects added
and considered are only those committed to be installed by 2025 in both the REF and the CES.
In terms of power generation, this plan demonstrates a decreasing reliance on coal for the country’s
electricity needs. And as targeted in this plan, renewables provide 35.0 percent of the total power
generation in 2030 onwards in the REF, while half of the generation in the CES in 2040 comes from
renewables.
Bearing a perspective of having diverse power generation technologies aiding the transition and
transformation, the energy sector does not discount the entry of new and other emerging technologies
such as nuclear, hydrogen, and ocean thermal energy conversion (OTEC). Additionally, information
and communication technology (ICT) will play an important role in this sustainable transition.
The energy sector welcomes and is open into fast tracking the transformation and transition. What
remains as a fundamental requirement in this bold move is that it should stem to affordability of energy
services to consumers, expand energy access, advance energy security, and ensure reliability.
Figure 135. POWER SECTOR TRANSITION

C. RESILIENCY AND SECURITY OF ENERGY

SYSTEM
The adverse effects of climate change and other natural calamities have been evident in the energy
sector over the past decades. In order to mitigate the negative impacts in the energy system and
facilities, policy measures, plans and strategies must be in place to ensure continuous delivery of energy
services.
The Philippines, like other countries in the Asia Pacific Region, is highly exposed to natural hazards such
as sea level rise, increased frequency of extreme weather events and heavy rainfalls, rising
temperatures, earthquakes, and volcanic activities. These continue to threaten the energy
infrastructures and have placed certain parts of the country into a vicious cycle of energy poverty
caused by the disruption in power supply due to damaged energy infrastructures. The pursuit for
sustainable solutions, such as renewables, could not discount vulnerability to climate change and natural
hazards. The solar photovoltaic (PV) system, a proven technology that closes the gap on energy access
and security, is one of the most exposed to the devastation of strong typhoons. Thus, the challenge
remains for the country to have a more resilient energy system.
The security of energy infrastructure and facilities, apart from resiliency, is also a paramount concern
to support the growth of the economy. Keeping the energy supply chain fully functional and protected
from human induced hazards (e.g., cyber-attack and other forms of terrorist attacks) is among the
primary agenda of the government through the national security agencies.
Against these backdrops, the DOE has been adamant to formulating and implementing policies,
strategies and measures to improve energy resiliency and security of energy infrastructure and facilities
in partnership with stakeholders and concerned government agencies.
Strengthen Energy System Resiliency
I. Assessment of the Resiliency Compliance Plan during the COVID-19 Pandemic
The energy industry stakeholders have been responsive and proactive in implementing the following
guiding principles as outlined in the Department Circular (DC) 2018-01-0001213 or the “Energy
Resiliency Policy” (ERP):
▪ Institutionalize the development, promotion, and implementation of a comprehensive Resiliency

Compliance Plan (RCP) to improve capacity, promote a safety culture and disaster preparedness,
and enhance response mechanisms of the energy sector;
▪ Strengthen existing infrastructure facilities to adapt to and withstand adverse conditions and
disruptive events;
▪ Incorporate mitigation improvements into the reconstruction and rehabilitation of damaged
infrastructure in accordance with the Build Back Better Principles;
▪ Improve operational and maintenance standards and practices to ensure efficient restoration of
energy supply in the aftermath of disruptive events; and
▪ Develop resiliency standards for future construction of energy facilities to ensure minimal damage
and adoption of measures for timely recovery and restoration of energy supply.
In the ERP, all energy industry players should formulate and submit their respective RCP, which contains
an inventory of all plans, programs and activities pertaining to improvement of infrastructure and
systems, stockpiling, and response and recovery measures. Its submission across the different sectors
provides an overall picture of the engineering and non-engineering measures with equivalent cost
estimates and investments to upscale the resiliency of the whole energy supply chain (Figure 136).
213
Issued on 17 January 2018

Figure 136. COMPLIANCE RATE OF ACTIVE PROJECTS PER SECTOR (as of 2020)
Assessment of the RCP submissions serves as the initial essential step in determining the baseline of
energy resiliency measures from existing policies and ongoing programs and activities. This will be
followed with the establishment of a sectoral benchmark on energy resiliency along with a roadmap. As
a way forward, the DOE and the United States Agency for International Development (USAID) – Energy
Secure Philippines (ESP) will jointly work on a study project that aims to thoroughly evaluate the
submitted RCPs with the following objectives:
▪ Determine the common and smart practices;

▪ Identify the gaps and challenges in the energy resiliency planning and programming;
▪ Measure the extent of the risks and vulnerabilities;
▪ Identify indicators and practical mitigation measures;
▪ Gauge the resiliency cost requirements; and
▪ Determine the cost impact and risks of energy resiliency investments.
The results of the RCP assessment shall be the basis in the formulation of the energy framework and
roadmap, which will include sectoral resiliency policies, protocols, program designs, standards,
institutional arrangements, and financing mechanisms.
II. Energy Sector’s Preparedness Measures for “The Big One”
In line with the government’s thrust to prepare for the potential impact of a magnitude 7.2 earthquake
from the West Valley Fault (WVF) in Metro Manila (Figure 137), the DOE in partnership with the
Philippine Disaster Resilience Foundation, Inc. (PDRF) conducted a series of meetings with key
stakeholders from the power and oil sector to discuss the updating of the National Energy Contingency
Plan (NECP) for The Big One.
The updated NECP is designed specifically for the threat of “The Big One” that may originate from the
WVF. It aims to craft a harmonized multi-sectoral disaster response and recovery plan and measures
from various energy stakeholders in preparation for the possible effects and impacts of the said
earthquake in the Greater Metro Manila Area. The NECP also incorporates the response measures and
protocols required in a pandemic scenario. It focuses on responses and early recovery measures,
specifically: a) emergency response and the immediate restoration of power services for pre-
determined critical facilities; b) strategic allocation and rationing of petroleum products for disaster
response and critical activities; and c) requirements for the rehabilitation and recovery of energy
services. The support mechanisms of the energy sector to other sectors or entities in government shall
likewise be outlined to ensure a well-coordinated and robust action plan.

The updated NECP for “The Big One” is currently being drafted in partnership with PDRF and is targeted
to be release by December 2021. Figure 138 shows the timeline of activities on the NECP updating in
2019 and 2021.
Figure 137. GENERATED ESTIMATED EFFECTS FROM GROUND SHAKING HAZARD IN NCR
USING THE RAPID EARTHQUAKE DAMAGE ASSESSMENT SOFTWARE (REDAS)
Figure 138. TIMELINE OF ACTIVITIES ON THE NECP UPDATING

III. Energy Sector Response during Emergencies and Disasters in 2020
The year 2020 was an equally eventful compared to the previous years.
The energy sector first responded to the Taal Volcano Eruption in January. About 4,000 MW of power
supply (intended for Metro Manila and nearby provinces) was threatened within the 14-kilometer (km)
radius of Taal Volcano. The extension to a 30-km radius in the worst-case scenario projected a loss of
5,000 MW of power supply because large capacity power plants are situated in the Batangas area.
On 11 March 2020, the World Health Organization (WHO) declared the COVID-19 pandemic, which
prompted the energy sector to immediately respond to mitigate the effects in Metro Manila and other
provinces. The DOE issued several policies and advisories to ensure uninterrupted delivery of energy
services, protect the energy consumers, and contributed to COVID-19 responses.
While in the later part of the year, Figure 139. TASK FORCE ON ENERGY RESILIENCY (TFER)
response was carried out to three (3)
major weather disturbances by the
Task Force on Energy Resiliency
(TFER) that brought severe impact on
numerous energy facilities. The
TFER primarily deals with the
management of disaster responses
(Figure 139). Its activation is
triggered by the occurrence of the
hazards, and it is convened for the
preparedness measures, regular
situation updates and coordination of
response actions. The harmonized
efforts in disaster response are
coordinated at all levels – national,
regional, provincial, and municipal.
For the energy sector, the situation is coordinated with the National and Regional Disaster Risk
Reduction and Management Council (NDRRMC) and reported to the Office of the President (OP).
The hazards accounted and responded to accordingly by the energy sector amidst the ongoing
pandemic are shown in Figure 140.
Figure 140. TIMELINE OF DISASTER EVENTS RESPONDED BY THE ENERGY SECTOR IN 2020

1. 2020 Taal Volcano Eruption
The Taal Volcano is one of the most active volcanoes in the country located in Batangas. On 12 January
2020 at around 2:30 pm, it started spewing ashes driven by steam (phreatic eruption), which the
Philippine Institute of Volcanology and Seismology (PHIVOLCS) raised the alert status to Level 2. The
alert level was then raised to Level 3 at 4:00 PM after an observed magmatic eruption characterized by
weak lava fountaining accompanied by thunder and flashes of lightning. With the relentless eruption,
alert status was raised to Level 4 (hazardous eruption imminent) at 7:30 PM as ashes and rock fragments
column reached up to 10–15 kms. During this time, heavy ash fall had covered the power facilities
within the 14-km radius from the Taal main crater. Municipalities situated within the 7-km permanent
danger zone (PDZ) were on lockdown and power services were cut off by the electric cooperatives
(ECs) in the area as a safety measure. The grid system operator (SO) declared market intervention due
to unimplementable Real Time Dispatch (RTD) as electricity generated by the power plants in Batangas
cannot pass through the affected transmission facilities covered by the ash fall. The event caused
multiple circuits to trip due to line fault and several gasoline stations in the affected areas temporarily
closed as thick ashes fall covered the facilities.
By January 13, magmatic eruption continued, and ash plumes had reached portions of Cavite, Bulacan,
Rizal, and Metro Manila due to the changing wind directions. Volcanic earthquakes ranging from
intensity II to V were also felt in nearby areas of Batangas and Laguna. The volcanic activity of Taal
persisted until January 25. The alert level status was downgraded to level 3 by PHIVOLCS after levels
of the volcanic parameters decreased substantially.
Response Activities
The corresponding activities were undertaken in relation to Taal’s eruption:
▪ Conducted initial
assessment of energy
facilities and initiated
restoration activities
done by the respective
energy stakeholders;
▪ Organized, together
with other energy
stakeholders, a
humanitarian
assistance to the
affected areas of the
eruption; and,
▪ Activated the Task
Force Disaster
Preparedness for
Power Restoration and
CSR/Rescue operation.
NGCP Linemen cleaning the transmission lines covered by ash fall

MERALCO’s power restoration efforts in the affected areas.
2. Typhoon “Quinta” (Molave) Figure 141. TRACK OF TYPHOON “QUINTA” (MOLAVE)
A strong Tropical Cyclone with maximum

sustained winds of 130 km/hour (hr) near
the center and gustiness of up to 180
km/hr. It initially formed as a Low-
Pressure Area (LPA) east of Mindanao on
23 October 2020 and intensified into a
Typhoon before making its first landfall in
Tabaco City, Albay on 25 October 2020.
The eye of the Typhoon barreled through
the vicinities of Malinao, Albay; San
Andres, Quezon; Torrijos, Marinduque;
and Pola, Oriental Mindoro before moving
westward over the West Philippine Sea
(Figure 141). Typhoon Quinta caused
flooding, landslides and toppling of trees
which resulted in power outages affecting
Albay, Sorsogon, Batangas and Cavite
provinces.
Response Activities
▪ Emergency restoration commenced immediately after passage of typhoon in affected

transmission and distribution lines, and facilities of the National Power Corporation-Small Power
Utilities Group (NPC-SPUG).
▪ Power restoration teams composed of line crews from North Luzon, National Capital Region
(NCR) and Visayas were organized for the quick restoration of transmission and distribution lines
in the affected areas.
3. Super Typhoon “Rolly” (Goni)
Entered the Philippine Area of Responsibility (PAR) on 29 October 2020 and rapidly intensified into a
Typhoon, while moving westward over the Philippine Sea. In the early morning of 01 November 2020,
“Rolly” further intensified into a Super Typhoon Category with a maximum sustained winds of 225 km/hr
near the center and gustiness of up to 310 km/hr before making its first landfall in Bato, Catanduanes.

It weakened into a typhoon category after its subsequent landfall in Tiwi (Albay), San Narciso (Quezon)
and Lobo (Batangas). The typhoon further weakened as it crossed over the West Philippine Sea before
exiting PAR.
Typhoon Rolly brought catastrophic violent winds and intense torrential rainfall over Catanduanes,
Camarines Norte, Camarines Sur, Albay, and southern portion of Quezon. This caused power outages
in several areas in its path. The NPC-SPUG facilities in Catanduanes were badly hit by the Super
Typhoon, while the power generation facilities incurred minor damages. About 90.0 percent of the
distribution lines in the Catanduanes grid was damaged.
Response Activities
▪ The TFER Chairperson visited Catanduanes to assess the energy situation and address pressing
concerns.
▪ Task Force Kapatid organized by the National Electrification Administration (NEA) in cooperation
with the Philippine Rural Electric Cooperatives Association, Inc. (PHILRECA) assisted in the power
restoration works in Catanduanes, Camarines Sur, Albay, Marinduque, and Mindoro. A total of
70 teams with 404 linemen from the different ECs in Regions I, II, III, IV-A, V, CAR, VI, and VIII
were mobilized. The Manila Electric Company (MERALCO) deployed 4 teams with 206 personnel
and 64 vehicles, while the Visayan Electric Company (VECO) organized an 11-man team for the
restoration affected facilities (transmission and distribution lines).
4. Typhoon “Ulysses” (Vamco)
A week after the devastation of Typhoon Rolly, Typhoon Ulysses was another tropical cyclone that
threatened the country. It was a tropical cyclone, which initially formed outside the PAR on 08
November 2020. It quickly developed into a Tropical Depression the same day and intensified into a
Typhoon Category on 11 November 2020, while moving closer towards the Quezon-Aurora area. It
made a landfall in the vicinity of Patnanungan, Quezon with maximum sustained winds of 150 km/hr
near the center and gustiness of up to 205 km/hr moving West Northwestward at 15 km/hr. It made its
2nd landfall in Bordeos, Quezon and 3rd landfall in General Nakar, Quezon, while maintaining its strength
as it continued to move westward. Ulysses re-intensified into a Typhoon as it moved outside PAR on 13
November 2020.
Typhoon Ulysses brought heavy rains in Central Luzon and the nearby provinces including Metro
Manila. The heavy rains caused severe flooding, and increased the dams’ water level near their spilling
points, which triggered the dams to release large amounts of water. Such resulted in widespread
flooding in Cagayan province.
Response Activities
▪ Emergency response and restoration activities resumed after passage of Typhoon Ulysses.
▪ Deployment of Task Force Kapatid organized by NEA in cooperation with PHILRECA to assist in
the power restoration works in Bicol Region. A total of 201 linemen from 31 ECs and 41 personnel
from MERALCO were deployed in Catanduanes.
▪ The NPC-SPUG Task Force with 15 linemen deployed for the power restoration works in
Catanduanes.
▪ The NPC provided two (2) generator sets for the energization of Baras and Gigmoto in
Catanduanes.
▪ The NPC energized the NDRRMC’s Water Filtration Equipment at Brgy. Marinawa, Bato,
Catanduanes.

Power Restoration in Catanduanes
Website: www.philreca.org; email address: core@philreca.org

Summary of Estimated Damage Cost of Electric Cooperatives, 2014-2020
As cited by the NEA, the onslaught of typhoons is the major contributing factor to the PhP6.55 billion
worth of damages incurred by the ECs for the period 2014 to 2020 (Table 90). It was also observed
that those ECs situated in the eastern seaboard of the country suffered much from typhoons as the
location being often the place of the first landfall.
Table 90. SUMMARY OF ESTIMATED DAMAGE COST OF ELECTRIC COOPERATIVES, 2014-2020

Estimated
Hazard Year Damage Cost
(PhP Million)
TY LUIS, TY MARIO, TY GLENDA, TY RUBY, TY SENIANG 2014 1,182,31
TY INENG, TY LANDO, TY NONA 2015 1,035.39
TY KAREN, STY LAWIN, TY NINA, 2016 1,312.00
TD AURING, TY VINTA, TS URDUJA, M6.7 Earthquake 2017 127.01
TS INDAY, TD JOSIE, TD USMAN, TD SAMUEL, TY ROSITA, TY OMPONG 2018 358.75
Batanes Twin Earthquake, TY TISOY, TY URSULA 2019 1,567.14

Taal Volcano Eruption, TY AMBO, TY QUIEL, TY RAMON, TD SARAH, TY
2020 964.93
QUINTA, STY ROLLY, TY ULYSSES, TD VICKY
Total 6,547.53
Tropical Cyclone Intensity Scale: Tropical Depression (TD): ≤61 km/h; Tropical Storm (TS): 62–88 km/h, Severe Tropical Storm (STS):
89–117 km/h; Typhoon (TY): 118–220 km/h; Super Typhoon (STY): >220 km/h.
Source: NEA
The Republic Act (RA) 11039 or the “Electric Cooperatives Emergency and Resiliency Fund (ECERF)
Act” provides financial relief in the mitigation, recovery, and rehabilitation of the affected ECs. Further,
the policy ascertains the submission of a comprehensive disaster management programs to include
Vulnerability and Risk Assessments (VRAs), Emergency Response Plans (ERPs) and RCPs from the
ECs, which will consequently be used for robust rehabilitation program based on the Build, Back, Better
Principle.
IV. Energy Sector COVID-19 Responses and Measures
The WHO’s declaration of COVID-19 as a pandemic on 11 March 2020 led to the President’s issuance
of Proclamation No. 929 on 16 March 2020 wherein the country was placed under a State of Calamity
due to the threat and widespread disruption of COVID-19. This was followed with the passage of RA
11469 (Bayanihan Act 1) and RA 11494 (Bayanihan Act 2) in March and September 2020, respectively.
The Bayanihan Acts granted the President additional authority in combatting the pandemic with the goal
of flattening the curve of the cases and preparing the healthcare system for the long-haul fight, while
waiting for the vaccine.
On the part of the energy sector, the DOE implemented set of policies, programs, and activities to curb
the spread of COVID-19 and assist in the government’s mitigation and responses to COVID-19, while
maintaining a reliable and sufficient energy services for the public as shown in Table 91.

Table 91. ENERGY SECTOR COVID-19 RESPONSES AND MEASURES

Key Result Areas Energy Sector Response and Measures
1. Social a. ER 1-94214 Disbursement Reaches PhP4.59 billion to Fight COVID-19: Since the
Amelioration outbreak of the COVID-19 pandemic, the Department of Energy (DOE) was able to remit a
cumulative total of PhP4.59 billion (September 2019 – 19 September 2021) from the
Energy Regulations No. 1-94 (ER 1-94) funds to host local government units (LGUs)
nationwide to support the fight against the spread of the virus and manage the effects of
the health crisis. Total ER 1-94 Funds transferred to host LGUs during ECQ already
amounted to PhP3.66 billion (16 March 2020 – 19 September 2021).
b. Implemented Corporate Social Responsibility (CSR) - To mitigate the economic impact

of COVID-19, the NEA supported the CSR initiatives of the PHILRECA and the National
Association of General Managers of Electric Cooperatives (NAGMEC). Through
Memorandum No. 2020-017 dated 14 April 2020, the NEA approved the realignment of
ECs’ 2020 Corporate Operating Budget (COB), which allowed the reallocation of funds for
working capital requirements necessary to sustain and ensure the continuity of the EC
operations and its CSR measures such as the “Pantawid Liwanag” program. The concept
and legal frameworks for the Pantawid Liwanag Program” are being crafted to provide
details on the implementation of the program to “consumers-beneficiaries” who are living
below the poverty line.
2. Issuance of a. Issued the COVID-19 Response Protocol for the Energy Sector: The DOE formulated
Pertinent Covid- the COVID-19 Response Protocol for the energy sector. Secretary Alfonso G. Cusi signed
19 Policies the Administrative Order (AO) 2020-05-0001 on 22 May 2020 providing the COVID-19
Response Protocol for the energy sector.
The TFER oversees the implementation of the policy, which covers the DOE, its attached
agencies, and all energy industry players. Likewise, the TFER ensures compliance to the
issuance through the preparation of relevant checklists, daily monitoring toolkits, and the
establishment of a feedback mechanism.
The Protocol identifies six key intervention areas to uphold the occupational health and
safety of all personnel, as the industry ensures the unimpeded delivery of energy goods
and services during this time.
b. Adopted the DOE Public Service Continuity Plan (PSCP) on COVID-19 to Ensure
Continuous Delivery of Quality Public Service: The DOE adopted the PSCP to ensure
that the health and safety of its personnel and stakeholders remain protected as they
pursue their commitment to provide quality public services during the pandemic.
c. Submission of the energy players, stakeholders, and energy agencies of their

respective Business Continuity Plan (BCP) under the Enhanced Community
Quarantine (ECQ): Secretary Cusi instructed the submission of the BCPs to ensure that
contingency and emergency response plans are in place in case of disruptions or disaster
events during the pandemic.
A total of 325 BCPs were submitted with the following breakdown:

▪ Power Generation Companies (123)
▪ Distribution Utilities/DUs (75)
▪ Off-Grid Generation Companies (7)
▪ Power Projects (12)
3. Food Security a. Duterte’s Kitchen Food Outreach Program: The DOE organized the Duterte Kitchen
Food Outreach Program through bread giving operations from 19 March to 31 May 2020
for health workers of hospitals, checkpoint frontliners, and depressed areas in NCR and
outlying areas. The Duterte Kitchen resulted in the distribution of 377,714 pieces of bread,
8,140 liters of milk, 78 kilograms of condensed milk and 9 cauldrons of various dishes.
b. The National Transmission Corporation (TransCo) and the Philippine National Oil
Company (PNOC) donated food packs and other in-kind goods to frontliners,
marginalized and affected communities by the lockdowns.
214
The ER 1-94 is a policy under the Electric Power Industry Reform Act of 2001 (EPIRA), which stipulates that host communities will get
a share of one centavo for every kilowatt-hour (P0.01/kWh) of the validated total electricity sales of generation facilities and/or energy
resource development projects located in all barangays, municipalities, cities, provinces, and regions.

▪ The TransCo distributed 342 daily food packs to healthcare workers from April to 31
May 2020.
▪ The PNOC donated 1,000 sacks of rice to Mariveles and Limay in Bataan, as well as
the SOS children’s Village (also in Bataan). In addition, 900 food packs (300 each)
were given to Taguig Pateros District Hospital, Manila Naval Hospital, and Philippine
Army Hospital.
4. Covid-19 a. Issued IATF215 IDs to Essential Energy Personnel: In order to have unimpeded delivery
Management and and supply of energy services during the ECQ, the DOE facilitated the issuance of IATF IDs
Response to the employees from the upstream petroleum and downstream oil industry players, power
sector industry players, renewable energy stakeholders, coal industry players and the DOE
Workforce. This led to a total of 173,669 IATF IDs issued to the energy industry players.
Issuances per energy industry players as follows:

▪ Power Industry – 78,170
▪ Renewable Energy Stakeholders – 9,268
▪ Oil Industry – 83,295
▪ Coal Industry – 1,002
▪ Upstream Petroleum Industry – 962
▪ DOE Workforce –972
b. Augmented Supply of Alcohol during the COVID-19 Crisis: A proposed Executive Order
(EO) titled "Temporary Suspension of the Imposition of Bioethanol Blend (E10)
Requirements for the Downstream Oil Industry and Mandating Local Biofuel Producers to
Sell for Production and/or Produce Medical Alcohol During the Covid-9 Pandemic State of
National Emergency". The proposal desires to augment the available supply of medical
alcohol urgently needed by our health care industry and the public in the battle against
COVID-19. Given the uncertainties, suspending the utilization of locally produced
bioethanol will have the net effect of reducing the cost of gasoline, which would, in turn,
further benefit our consumers.
c. Offered the use of available lodging facilities of the TransCo and the Power Sector
Assets and Liabilities Management Corporation (PSALM) for healthcare
workers/frontliners.
▪ The TransCo housed 42 frontliners of the Lung Center of the Philippines including
provision for food and shuttle services.
▪ The PSALM converted three (3) habitable cottages into a temporary medical facility to
accommodate up to 20 patients suffering from non-COVID19 ailments. There was a
total of 269 patients that were given medical relief and healthcare. The use of the
transition houses at PSALM’s Bagac Property operated from 02 April 2020 until 15
January 2021.
d. Donated E-trikes to LGUs used for Emergency Transport: The DOE coordinated with
Pasay, Valenzuela, Carmona Cavite, Malabon, Binan Laguna, Echague Isabela, Tuguegarao
Cagayan, Pasig, Mandaluyong, Batangas, and Quezon City LGUs for the use of donated e-
trike units for food distribution, transport for COVID frontliners, and transport of patients for
dialysis, and chemotherapy.
5. Ensuring a. Deferment of payments of obligations and dues relative to the ECQ in Luzon:
uninterrupted Secretary Cusi signed a Memorandum on 16 April 2020 directing all concerned power
supply of power sector participants, including private and public corporations, LGUs, as well as consumers
to implement and adhere to existing guidelines on the deferment of payments of obligations
and dues relative to the extension of the ECQ in Luzon, which was extended until 30 April
2020.
▪ The PSALM extended the remittances of Universal Charge (UC) Collecting Entities due
on 15 April 2020 to 15 May 2020 (extended ECQ).
▪ The 82 Collecting Entities availed of extension for payment falling due on 15 April 2020
to 15 May 2020.
▪ The 78 Collecting Entities for payment falling due on 15 May 2020 to 14 June 2020.
b. No Disconnection Advisory: The DOE issued an advisory on 6 August 2021 encouraging

all DUs to implement a “no disconnection policy” for all electricity consumers (within the
215
Inter-Agency Task Force for the Management of Emerging Infectious Diseases

identified provinces and cities) due to non-payment of bills falling on the period of ECQ and
Modified ECQ (MECQ). In addition, consumers were advised to coordinate with their DUs
for amicable payment engagement. For consumers with the capacity to pay, it was
encouraged that these consumers continue to settle their bills on the original due date to
help manage the cash flow in the energy supply chain and ensure continuous operation of
entities providing electricity and associated services.
c. Advisory to Generation Companies (GenCos) and DUs to Ensure Reliable Power

Supply for Vaccine Rollout: The DOE ordered all GenCos and DUs to ensure continuous,
reliable, and stable power supply for COVID-19 vaccine cold storage and health care
facilities through back-up generating sets and/or distribution system configuration. The
DOE further instructed them to update their emergency response protocols and BCPs to
be responsive to the prioritization of the COVID-19 vaccines' cold storage facilities in cases
of power outages. All DUs were also instructed to intensify vegetation management
programs to eliminate power interruptions and provide the necessary support for COVID-
19 vaccine storage and healthcare facilities by installing their own back-up supply.
d. The NEA issued Memorandum 2021-018 dated 17 May 2021 titled “Power Supply in
COVID-19 Vaccine Storage Facilities and Administration Sites:” The NEA encouraged
ECs to observe due diligence to ensure and safeguard continuity of power supply in
COVID19 cold storage facilities and administration sites.
6. Ensuring a. The DOE Monitored Proper Implementation of Additional 10.0 Percent Tax on
continuous Petroleum Products: President Rodrigo R. Duterte signed EO 113 on 2 May 2020,
supply and temporarily imposing an additional 10.0 percent import tax on petroleum products to help
availability of augment government funding for COVID-19.
fuels
The additional tax shall be reflected in price adjustments only after the oil companies have
exhausted existing inventories that were purchased prior to the issuance of the EO.
Projections based on their inventory reports indicated that the added costs might be
included beginning the third week of June (14-20 June 2020).
The DOE ensured the proper implementation of the additional tax on crude and petroleum
products as provided in the said EO.
V. Disaster Preparedness and Management for Compound Disaster
The COVID-19 pandemic continues to impact and disrupt the daily operations of the energy sector. At
the same, the energy sector prepares for the potential effects of natural hazards such as typhoons,
volcanic eruption, and earthquakes. In 2020, the country was confronted with a series of compound
disasters216 with a volcanic eruption and typhoons occurring one after the other, while in the middle of
global pandemic.
During the power restoration activity after the passage of Super Typhoon ROLLY (Goni), a lineman who
was part of the Task Force Kapatid met a fatal accident, which resulted in brief disruption of the power
restoration in the affected area. Further, two (2) linemen from the Power Restoration Rapid
Deployment (PRRD) Task Force Kapatid tested positive for COVID-19 disease. The linemen were part
of the 294 personnel from 42 ECs mobilized by the PHILRECA, NEA and DOE to assist in the immediate
restoration of damaged power lines in Catanduanes and the other areas in the Bicol Region after the
onslaught of Typhoon ROLLY and ULYSSES. Consequently, the Provincial Disaster Risk Reduction
Management Office (PDRRMO) alerted those possible close contacts who had exposure with the two
linemen, especially those who were billeted separately in two (2) Parish Churches in the area. All
contingents deployed also had to undergo the quarantine requirements upon returning to their
respective provinces during the Christmas season.
Within this backdrop, there is a need to update and adjust the disaster plans amidst the pandemic to
address the complexities arising from multi-hazards and other events. Hence, the TFER recommends
A compound disaster refers to two or more catastrophic events or disasters (multi-hazard), which amplifies the effect of the other and
216
causing adverse consequences such as prolonged response and recovery.

the re-evaluation of existing strategies in anticipation of other possible disruptions through scenario
planning that provide more preparations and innovative and efficient remedial measures.
VI. Rehabilitation of Damaged Energy Facilities through Build Back Better Principle
A key principle of the energy resiliency policy is to determine specific resiliency standards to be
incorporated in the mitigation measures to improve the reconstruction and rehabilitation of affected
energy facilities consistent with the Build Back Better Principle.
The DOE, with USAID-ESP’s assistance, will evaluate the RCPs to determine how to improve resiliency
standards and for possible adoption. The energy resiliency standards aim to strengthen existing
infrastructure and reduce the risks and vulnerabilities from hazards to improve the reliability of power
services. One of the expected outcomes would be the reduction of disruptions or power outages per
year in the power system.
The mitigation and rehabilitation plans and programs that will be developed shall address the risks and
vulnerabilities from existing threats and hazards per region. The level of hazards or risks shall be
determined and analyzed using exposure maps and validation of relevant science-based government
agencies, such as the Department of Science and Technology (DOST) and its attached agencies.
VII. Energy Resiliency Development Cost Financing and Insurance Management
Achieving the desired level of energy resiliency through the modernization of existing energy systems
comes with associated costs. The adoption of energy resiliency standards involves investments with
equivalent financing requirements that may possibly affect the rates of energy services. Corollary to
this, the DOE shall form a study team guided with the objectives of looking at cost implications of energy
resiliency and finding pragmatic financing solutions and recommendations that consider consumer
welfare. The protection of future investments on energy resiliency requires undertaking the
establishment of an insurance mechanism. This mechanism to be developed addresses the risks and
financial impacts faced by the sector and will serve as an enabler for future investments composed of
more resilient energy infrastructures and systems.
VIII. Plans and Programs
Recognizing the growing occurrence and intensified impact of climate change in the energy system
enables the energy sector to plan and design practicable solutions in order to safeguard and increase
the reliability of its system in any fortuitous events that may potentially result in a disruption or systemic
failure, and consequently crippled the economic activities vital in the growth of the country. This
encapsulates the purpose of mainstreaming energy resiliency in the planning and programming of the
energy sector through DC 2018-01-0001. Considering the myriad of uncertainties and emerging risks,
the ERP ensures that the goals and sectoral targets indicated in the Philippine Energy Plan (PEP) will
be pursued accordingly within the set timelines.
In order to realize this, the following key activities have been identified:
▪ Developing a sector-based preparedness plan encompassing capacity building, energy

response activities including standard operating procedures and other operational manuals
linkages;
▪ Designing and programming the disaster risk and reduction (DRR) activities of the energy
sector;
▪ Conducting researches on related disaster risk reduction programs, policies, and activities of
the energy sector;
▪ Formulating the disaster risk reduction and management (DRRM) assessment and plan,
framework, and policies of the energy sector;
▪ Disseminating information and raise public awareness of DRRM related activities of the energy
sector;
▪ Conducting continuous monitoring and mobilizing personnel during emergencies;

▪ Establishing linkages with the stakeholders before, during and after emergencies and disasters;
▪ Conducting comprehensive damage and loss assessment in the energy sector;
▪ Conducting periodic monitoring and inspection of rehabilitation programs and projects of the
energy sector;
▪ Formulating standards for rehabilitation development for inclusion in the DRRM measures of
the energy sector; and,
▪ Assisting in processing and evaluating proposals for funding of projects and activities.
Way Forward
Energy resiliency remains a flagship program of the DOE. With lessons learned from previous tropical
cyclones, earthquakes and even human-induced disasters, the promulgation of the ERP propelled the
advocacy to mainstream energy resiliency into programs, plans and activities of all industry participants.
With the changing landscape of disaster risk reduction and management, the energy resiliency policy
puts priority actions (Figure 142) to improve the whole value chain of the sector in terms of
strengthening the ability of the energy system to withstand the impact of hazards and recover from any
disruption of the energy supply.
Figure 142. ERP PLANS AND PROGRAMS
The submission of the RCP, along with the set programs, paves the way for the formulation of the ERP
that constitutes short-, medium- and long-term plans, programs, and activities. The NECP for oil and
power will also be updated to strengthen preparedness, mitigation, and response and recovery
measures to have continuous energy supply during emergencies and disasters. It is the government’s
priority to have a faster recovery from projected threat of the “Big One.” As an end goal and to
institutionalize resiliency mechanisms, energy resiliency standards will be formulated to safeguard
energy facilities.
As a contribution to the fight against COVID-19 pandemic and for future similar diseases, the DOE
formulated the COVID-19 Response Protocol, and the PSCP, which shall be updated periodically. With
an overall objective of mainstreaming the DRRM plans, frameworks and policies into the energy sector,
the Energy Resiliency Roadmap, together with the development of the Energy Resiliency Standards, will
set the course and direction of the sector toward achieving a higher level of resiliency to disaster. This
will be developed in sectoral approach to include the upstream oil and gas, downstream oil and gas,
power, renewable energy, and energy utilization. The roadmap will be aligned to and guided with the
principles stipulated in the ERP. Moving forward for an energy resilient Philippines with a shared vision
of stable, secure, sufficient, accessible, and reasonably-priced energy, the DOE continues to strive for
greater energy supply security as a precursor for sustainable economic development.

Strengthening Energy Security
National Security refers to the sovereign power for a state to chart its own course without internal or
external interferences. Based on the National Security Policy, its definition goes beyond the
conventional association with national defense and regime survival, but also covers the overall well-
being of the citizens, the promotion of economic development, and protection of the environment and
natural resources.217 These are reflected in the elements of national security, which amplify national
interests and deems the psycho-social aspects and economic plans and programs of the government.
With this, the National Security Policy is responsive to the global call for action to end poverty, protect
the earth’s environment and climate, and ensure that people everywhere can enjoy peace and
prosperity as outlined in the United Nations (UN) Sustainable Development Goals (SDGs).
In the energy landscape, energy security is attributed to supply diversification and grid resiliency
(generation, transmission, and distribution). For the security sector, the context of energy security is
the physical protection of the critical energy infrastructures and systems.
The 2017-2022 National Security Policy initiated by the National Security Council (NSC) includes energy
security as one of the strategic lines of action wherein the concept is merged and transformed into an
encompassing definition having a holistic perspective and approach. With the implementation of the
12-point National Security Agenda, the DOE enjoins other concerned government agencies and
institutions to achieve the national security vision. Further, the National Security Strategy (NSS) aligns
and supports the energy sector goals and agenda through its strategic actions, specifically the
accelerated implementation of the PEP.
Energy Security Challenges
Energy security in the country is affected by international, regional, and national uncertainties (Table
92). For the international and regional situation, energy security is mainly affected by geopolitical issues
and overlapping territorial and maritime claims. On the other hand, the national energy situation is at
risk from local security threats and transnational security threats such as cyber-attack, terrorism,
organized crime, and smuggling.
The West Philippine Sea (WPS) contains a vast potential oil and gas resource. However, the exploration
has been delayed due to the multilateral dispute over the Spratlys Islands (or the Kalayan Islands Group)
and the recurrent tensions caused by suspected military structures, as well as occasional encroachment
into the Philippine Exclusive Economic Zone (EEZ) by one claimant country in the disputed areas.
The oil price and supply in the country are also vulnerable to changes in the supply production of the
Organization of the Petroleum Exporting Countries (OPEC), which accounts for almost 80.0 percent of
the world’s proven oil reserves or equivalent to an estimated 1,189.80 billion barrels in 2018.218
Moreover, the geopolitical tension and collapse of talks between OPEC members and allies pose great
risk in oil security. In recent years, the heightened tensions from the attack of Saudi oil facilities and the
internal disputes among OPEC members ensued a price war and increased volatility in world market
price of oil. Further, another vulnerability emanates from the increased insecurity in the oil supply chain
pathways located in the Straits of Hormuz and the Straits of Malacca. In 2020, the Covid-19 pandemic
also triggered unexpected headwinds in OPEC as oil demand deteriorated with the fallout of economies
around the world.
The local security situation poses as a threat by targeting critical energy infrastructures. Several
incidents have been recorded on the bombing of transmission lines. In 2015 and 2017, the National Grid
Corporation of the Philippines (NGCP) transmission towers were bombed causing a blackout in the
Mindanao grid. Also, the power transmission system around the world has become a primary target of
cyber-terrorism with the motivation of geopolitics, sabotage, and financial reasons. The NGCP revealed
that it experiences hundreds of cyber-attacks originating from outside the country.
217
National Security Strategy, 2018. National Security Council.
218
OPEC Annual Statistical Bulletin 2019 (https://www.opec.org/opec_web/en/data_graphs/330.htm)

Most of these uncertainties are beyond the purview of the energy sector and necessitates intervention
and collaboration from other concerned agencies.
Table 92. ENERGY SECURITY CHALLENGES

EXTERNAL ENVIRONMENT:
Energy Security Criteria INTERNAL: National Situation
International / Regional Situation
Access and availability of supply ▪ Malampaya Gas depletion by
▪ Securing the supply chain 2024.
▪ Emergency supply ▪ Smuggling of petroleum
▪ West Philippine Sea Dispute
products.
impeding oil and gas
▪ Threats of cyber-attack in the
exploration.
power transmission grid
system and smart distribution
▪ Oil Supply disruption from
system.
OPEC countries due to
Reliable & uninterruptible ▪ The Philippines as net
international conflicts.
supply importer of oil products and
▪ Import/Export of Fuels coal.
▪ ASEAN holds the smallest oil
▪ Grid/Off-Grid Power ▪ Maintenance of power
reserves in the world.219
Generation, generation facilities.
Transmission, and ▪ Security threats on the
▪ Effect of environmental policies
Distribution physical infrastructures of the
on coal producing/ exporting
energy system (power
countries.
generation, transmission and
distribution facilities, oil depot
and terminals, etc.).
Affordability/ competitive supply ▪ Prices of crude oil and ▪ Electricity/Oil Price is market
▪ Energy Market Price petroleum products driven by driven
▪ Managing oversupply the world market.
1. Oil and Gas Security
Exploration of Indigenous Oil and Gas Resources. The maritime security issues in the WPS continue
as a geopolitical uncertainty directly affecting the energy supply security of the country. With the nearing
depletion of the Malampaya natural gas reserves, the much-needed oil and gas exploration activities at
the WPS had been delayed significantly due to harassment incidents in the disputed waters, as well as
the government-imposed moratorium on the exploration activities in deference to the case filed by the
Philippine government before the International Court of Arbitration (ICA).
The DOE lifted the moratorium on oil and gas activities in the WPS and the resumption of all committed
work program in the area. This is consonance to President Duterte’s policy on the promotion of energy
security and exercise of the Philippines sovereign rights consistent with the South China Sea Arbitral
Award. The affected Service Contracts (SCs) include SCs 54 and 58 (Nido Petroleum Phils. Pty. Ltd in
Northwest Palawan), SC 59 (PNOC-EC in Southwest Palawan), SC 72 (Forum Ltd. in Recto Bank), and
SC 75 (PXP Energy Corp. in Northwest Palawan).
Oil Supply Disruption. The Philippines is a net importer of oil and petroleum products. In 2020, crude
oil imports reached 5,238 million liters (ML), while petroleum products import totaled 16,394 ML. The
Middle East is the country’s primary source for crude oil imports accounting for 73.0 percent (Saudi
Arabia at 45.7 percent and Kuwait at 24.3 percent). Meanwhile, petroleum products are mostly sourced
from China (31.2 percent), Singapore (17.6 percent), South Korea (15.5 percent) and Malaysia (9.2
percent).
The occasional crisis and conflicts in the Middle East, the world’s largest source of oil and gas, pose as
a geopolitical security threat in the Association of Southeast Asian Nations (ASEAN) Region. Moreover,
any deviation from the normal supply and demand from the OPEC drive oil prices in the world market
and consequently the local price of petroleum products.
219
ASEAN Centre for Energy, 2018. How ASEAN Should Respond to Oil Price Hike (https://aseanenergy.org/how-asean-should-
respond-to-oil-price-hike/)

One of the measures established in the ASEAN to address supply disruptions is the ASEAN Petroleum
Security Agreement (APSA)220. On the domestic front, the DOE intends to establish a Strategic
Petroleum Reserve (SPR) Stockpiling through the PNOC 221.
The DOE is moving for the institutionalization of an Oil Contingency Task Force (OCTF) under the
umbrella of the Inter-Agency Energy Contingency Committee (IECC) to address the scenarios on any
oil disruptions. The OCTF shall comprise of member agencies and will be primarily tasked to develop
and implement the National Oil Contingency Plan. Moreover, the OCTF shall also support in the creation
of a Strategic Petroleum Reserve Program through the drafting of a bill.
Malampaya Gas Depletion in 2024. The DOE is looking at the liquefied natural gas (LNG) portfolio as
one the supply measures that will address the impending depletion of Malampaya. The focus is on LNG
importation through the development and operation of LNG receiving facilities.
There are already approved applications for seven (7) potential LNG terminals in the country specifically
in the provinces of Batangas and Quezon. These potential projects have been issued with Notice to
Proceed (NTP) and Permit to Construct permits. The active monitoring and coordination on the
progress of these projects is vital to ensure that the target commercial operation dates are met.
Smuggling of Petroleum Products and Other Illegal Activities. The energy sector is also plagued
with criminal activities such as oil smuggling, illegal activities of the LPG industry, and even piracy and
armed robberies at sea targeting transport of energy products. These criminal activities affect the
importation of primary energy, and the supply and production of secondary energy sources.
Another prevailing security concern is the proliferation of the “bote-bote” business and illegally filled
butane canisters with LPG, especially observed in the countryside. Aside from having its negative effects
on the perspective of consumer welfare, and seemingly trivial and localized, it also has its security
implication. Based on military reports, the enemies of the state utilize these for their gasoline-based
tools, equipment, or weapon in the conduct of their terroristic or criminal activities.
To address this, the DOE is firm in its formulation of appropriate national standards covering fuel and
facilities. Strict monitoring is done to ensure that policies relevant to the safety standards are followed
and practiced by the oil industry stakeholders. Moreover, the DOE engages with concerned agencies
such as the Department of Trade and Industry-Bureau of Products and Standards (DTI-BPS) in the
implementation of Philippine National Standards (PNS) on fuels and facilities. Some of the PNS/DOE
facilities standards include the Code of Safety Practices for liquid petroleum products (LPP) in retail
outlets (PNS/DOE FS 10:2017), LPG refilling plants (DPNS/FS 2:2018), handbook on code of safety
practices in LPG refilling plant, code of safety practices in LPP depots, and modules of instruction for
LPG cylinder refillers.
2. Power System Security
Cybersecurity Threat in the Transmission Grid System and Smart Distribution Grid System. A
growing national security concern and of significance is the vulnerability of the transmission grid system
from cyber-attacks. The NGCP revealed in the Senate energy hearings in February 2020 that the
transmission grid has indeed experienced several cyber-attacks emanating from outside the country.
The government, through the TransCo, owns the transmission assets of the country, while the operation
and maintenance are with the NGCP. Any terroristic activity directed at the transmission system or
facilities can seriously compromise and wreak havoc in the overall power system and potentially cripple
economic activities in the country. To address this, the DOE, together with the TransCo, has initially
requested for the conduct of full technical audit of the system operation (SO).
220
The APSA aims to “enhance petroleum security, either individually or collectively, and minimize exposure to an emergency situation,
through the implementation of short-, medium-, and long-term measures.” It establishes a petroleum sharing scheme for crude oil
and/or petroleum products to assist the ASEAN Member State (AMS) in distress which is experiencing a shortfall of at least 10 percent
of the normal domestic requirement for a continuous period of at least 30 days.
221
A draft DC has been drafted on the SPR Stockpiling prescribing the guidelines for the PNOC. The DOE also issued a Memorandum
Order (MO 2019-11-0001) directing the PNOC to undertake a study for the establishment of an SPR.

Expansion of Rural Electrification Program in Vulnerable Communities and Conflict Areas. The
inadequacy to deliver basic services has been long pointed as one of the root causes of insurgencies,
internal disturbances and tensions, and other armed conflicts in vulnerable communities throughout the
country.
The National Task Force to End Local Communist Armed Conflict (NTF ELCAC) has been created, along
with the adoption of the National Peace Framework (NPF) to prioritize and harmonize the delivery of
basic services and social development packages in conflict-affected areas and vulnerable communities,
facilitate societal inclusivity and ensure active participation of all sectors of society in the pursuit of the
country’s peace agenda. In terms of contribution to the goals of NTF-ELCAC, the major
projects/activities of the DOE that is most relevant to the Task Force is on providing access to electricity
to households.
The NTF-ELCAC identifies the areas needing electricity services, which are harmonized with submitted
master plans of DUs through the Task Force E-Power Mo (TFEM). The DOE continues to coordinate as
well as engages with NTF-ELCAC to fast track the electrification of areas with armed conflicts.
Way Forward
The emerging threats to energy security, including the risks and uncertainties that exist at the different
levels of the energy system – from domestic, regional and global energy security – may ensue from
geopolitical issues, criminal activities and terrorism, and effects of climate change. As such, policy
measures and strategies require greater need for collaboration among relevant agencies at different
levels. The DOE will either act as an initiator or a contributor depending on the issues being addressed.
A robust strategy at the Strategic Level is needed, which will require a proactive response and support
from other government agencies as well.
As a way forward, the following are recommended for inclusion in the NSS Strategic Actions:
▪ Formulate a national security plan specific for critical energy infrastructure (especially those in
remote locations and conflict-affected areas, as well as those energy explorations within
overlapping territorial claims (WPS, Benham Rise, Batanes);
▪ Identify focal agencies that will implement the national security plans for critical energy
infrastructures;
▪ Create a technical working group to discuss/handle security issues on energy infrastructure
projects;
▪ Analyze infrastructure vulnerabilities and recommend security measures (e.g., critical
infrastructure program);
▪ Strengthen energy sector cybersecurity preparedness and coordinate cyber incident response
and recovery;
▪ Expand the sources of crude oil and refined petroleum products;
▪ Improve reliability of the power supply chain to avert shortages in supply and reserves;
▪ Promote diversified use/source of domestic and imported coal;
▪ Continue to pursue existing international cooperation on energy security under ASEAN and
APEC:
ASEAN
o ASEAN Petroleum Security Agreement (APSA)
o Trans-ASEAN Gas Pipeline
APEC
o Energy Security Initiatives
▪ Coordinate and closely work with the Task Force on Energy Resiliency (TFER);
▪ Maintain an updated and detailed map information of the country’s power system to mitigate the
consequences of possible attacks by saboteurs and terrorists;
▪ Continue to intensify maritime security in transit areas where most the country’s fuel imports are
transported to address the threats of maritime piracy and armed robbery; and
▪ Pursue the establishment of the country’s SPR to reduce the impact of any oil supply disruption.

D. COLLABORATION WITH THE ATTACHED

AGENCIES
I. PHILIPPINE NATIONAL OIL COMPANY

The Philippine National Oil Company (PNOC) was created by virtue of
Presidential Decree (PD) 334 in response to the 1973 oil crisis. Under PD 334,
the PNOC has the following mandates: (a) provide and maintain an adequate and
stable supply of oil and petroleum products for the domestic requirement; (b)
promote the exploration, exploitation and development of local oil and petroleum
sources; and, (c) foster oil or petroleum operation conditions conducive to a
balanced and sustainable growth of the economy.
Subsequently, various amendments have been made to the PNOC’s charter to

include exploration, exploitation, and development of all energy resources in the country. As provided
in Republic Act (RA) 7638 or the Department of Energy Act of 1992, the PNOC is tasked as the
government’s corporate arm in terms of exploration of indigenous oil and non-oil energy resources to
build a robust energy sector and greater energy supply security for the country.
National Strategic Petroleum Reserve (SPR). In 2019, the DOE mandated the PNOC through
Memorandum Order (MO) 2019-11-0001222 to formulate an Implementation Plan for the Establishment
and Operation of the National Strategic Petroleum Reserve223 (SPR).
The SPR aims to provide an oil PETROLEUM

stockpile (crude oil, finished RESERVES
petroleum products or both)
equivalent to 90 days of the
country’s domestic oil
requirements. Such magnitude and
considerable funding required for
an all‐encompassing SPR will
necessitate the implementation of
the program in phases, depending
on the resources available.
Activities identified within the

planning horizon towards the
realization of the SPR cover: a) Journal of Petroleum Technology / PNOC
Procurement of the Transaction
Advisor (TA); b) Conduct of Detailed Feasibility Study by the TA; c) Project approval by the National
Economic Development Authority – Investment Coordinating Council (NEDA-ICC) and NEDA Board; d)
Front-End Engineering Design (FEED); and e) Project Financial Close and Acceptance of Final
Engagement Report of the TA.
Targeted Fuel Relief Program (TFRP). In the interim, the formulation of TFRP will jumpstart the
initiative and lay the foundation for the need to establish a SRP that is responsive to the current and
future requirements of the people. In October 2020, the PNOC conducted an in-house study on Interim
Oil Stockpiling Program (IOSP) and the pre-feasibility study for the TFRP. The PNOC Board’s approval
of the studies, as well as the signed Memorandum of Understanding (MOU) with the Inter-Agency
Energy Contingency Committee (IAECC) is targeted before the end of 2021.
222
Issued 14 November 2019
223
SPR refers to large stockpiles of crude oil and/or petroleum products, stored in facilities located around the country (and possibly
overseas)

Sale/Monetization of Banked Gas.224 As of the first quarter of 2021, the PNOC already sold a total of
3.107 Petajoules (PJ) to Pilipinas Shell Petroleum Corporation (PSPC) out of its contracted volume of
6.324 PJ. However, negotiations are still ongoing on the terms of PSPC’s pending termination.
Energy Supply Base (ESB) Port Development. The PNOC continues to efficiently manage and
operate the ESB located in the municipality of Mabini, Batangas covering total area of 19 hectares (ha).
Aside from the continuous rehabilitation and repair of existing facilities, the PNOC has programmed the
development of the port to allow extension of the piers to reach the 12-15 meters depth of the Batangas
Bay.
In 2020, PNOC has completed the following activities: (a) Detailed Feasibility Study; (b) Detailed
Engineering Design; and, c) Environmental Impact Assessment. For 2021, the PNOC will seek the
Board’s Approval of the Detailed Feasibility Study and accomplish 70.0 percent of construction of new
fence at the main gate of the facility.
Development of Potential Business Ventures in the LNG Industry. The PNOC remains active in
pursuing potential investment opportunities in the Liquefied Natural Gas (LNG) industry through
coordination with prospective investors which include proponents with Notice to Proceed (NTP) permits
from the DOE.
In October 2020, the PNOC signed an MOU with the US-based firm New Fortress Energy (NFE). Under
the MOU, both parties will identify possible investment opportunities and potential locations of LNG
facilities. The MOU will contribute to bridging the gap in the Philippine Downstream Natural Gas Industry
(PDNGI) value chain towards a thriving LNG industry.
A. PNOC-Exploration Corporation
Starting as an Exploration Department of PNOC, the PNOC-Exploration

Corporation (PNOC-EC) was incorporated as a subsidiary on 20 April 1976
pursuant to PD 927 broadening the powers of the PNOC to include exploration,
development and production of local oil, gas, and coal resources.
The PNOC-EC continues to accomplish its mandate of providing additional energy

supply for the country through its active involvement in the exploration,
development and production activities to
harness indigenous sources of energy.
The priority projects of the PNOC-EC as operator or active

partner in several onshore and offshore exploration blocks
include the following:
Service Contract (SC) 38 in Northwest Palawan with

estimated resource of 100 billion cubic feet (BCF) has been
contributing significantly to the country’s energy needs. With the
impending end of contract of Malampaya, production of natural
gas may still be expected until 2027.
Ongoing activities under SC 38 are evaluation and studies on

portfolio maturation, such as seismic reprocessing, seismic
inversion, and basin modeling. Also form part of the priority
program in 2021 is the Camago development, which covers
subsurface and engineering analyses. Further, drilling activities SC 38- Malampaya Project
in the Malampaya East (MAE) is scheduled to commence by
2022 which is targeted for completion by 2023.
224
Banked gas is the accumulated unused gas of the Ilijan Power Plant as a result of the underutilization of the plant’s Take-or-Pay quantity
(TOPQ)

SC 37 in Cagayan Basin is under exploration stage with 165

BCF estimated reserves. Upon completion of its development,
petroleum production may be generated beginning 2025.
Currently, passive Seismic Tomography is already 36.0
percent completed, wherein geophysical survey has been
conducted in Chico Prospect and San Antonio/Arabiat areas.
Starting 2022, other activities programmed for implementation

are: the remediation of Mangosteen-1 well, drilling of one (1)
exploration well, and one (1) Appraisal well. Subsequently,
upon confirmation of presence of gas reserve, gas production
facilities will be constructed.
The PNOC-EC has 28.0 percent stake in SC 57 in Calamian

project with estimated reserves of up to 178 million barrels
(MMB). SC 57 is within the prolific Northwest (NW) Palawan
block and is host to the Bantac 1 well, a non-commercial oil
discovery by Occidental Petroleum. With the farm-in of China
National Offshore Oil Company (51.0 percent) and Mitra SC 57- Calamian in NW Palawan
Energy Limited (21.0 percent), additional 2,200 kilometers
(kms) of 2D seismic data was acquired on top of the 3,300
kms acquired by the previous contractors.225
As the Deed of Assignment for the partners of PNOC-EC has

yet to be formalized, SC 57 is still under force majeure.
Exploration activities will resume once approval from the
Office of the President is granted.
Two (2) projects under Coal Operating Contract (COC) 41

(Mine 3 Coal Project and Lower Butong) have a combined
identified coal reserve of up to 4.2 million metric ton (MMMT).
The establishment of all surface building facilities have
already been completed in 2020, while construction and
rehabilitation of rail networks and mine equipment are
currently ongoing. Once development of the areas has been
finalized, production may be expected beginning end of 2022
or 2023.
COC 41 Zamboanga Sibugay Coal Project
COC 122 or the 55-MW Power Plant (Pit 3), located within
the province of Isabela in Cagayan Valley Region, has proven reserves of over 25 MMMT of lignite coal
in a minable area covering about 2,000 ha. The project is a pioneering undertaking of the PNOC-EC,
which utilizes low rank indigenous coal to fuel a mine-mouth power plant employing “progressive mining
and rehabilitation method” and “clean coal” technology. The reserves are enough to fuel 100 MW mine-
mouth power plant for 25 years, with an upside potential of at least 100 percent. 226
Upon completion of the development phase, production is expected to start by 2025. Apart from serving
the local energy requirements of the province of Isabela and Luzon, it also brings widespread economic
benefits to the province.
Other prospective projects under exploration and development stage include SC 58 in West Calamian,
SC 59 in West Balabac, SC 74 in Linapacan and SC 75 in Northwest Palawan, as well as three (3)
projects under COC 41 (Lalat Development, Malongon/Sta. Barbara and Gotas North Limb) and COC
186 (Imelda-Malangas).
225
https://pnoc-ec.com.ph/projects/service-contract-no-57-calamian
226
https://pnoc-ec.com.ph/projects/coc-122-isabela-coal-mine-mouth-and-power-plant-project

B. PNOC-Renewables Corporation
The PNOC-Renewables Corporation (PNOC-RC) is a fully-owned subsidiary of
the PNOC created to serve as the government’s technical/research arm for the
development and implementation of sustainable renewable energy and energy
efficiency programs and projects. It is also a partner agency of the national
government and local government units (LGUs) in the implementation of Energy
Efficiency and Conservation law.
Since its establishment in 2008, the PNOC-RC has developed several renewable
projects, which include the 32-MW Maibarara Geothermal Project in Batangas, 1-
MW Hydropower Project in Nueva Ecija, and Solar PV Rooftop Projects in Metro Manila and Cebu. A
2-kWp Off-Grid Solar PV was also installed in 2019 that powered a Multi-Media Learning Center for the
students in Kagay Elementary School (Kagay ES) in Talipao, Sulu. The project was one of the flagship
projects of the DOE under the “Adopt-a-School” program, which was funded by Upsilon Sigma Phi
Batch 1993 in cooperation with the Armed Forces of the Philippines (AFP) Western Mindanao Command
(WesMinCom).
2-kWp Off-Grid Solar PV in 32-MW Maibarara Geothermal 1-MW Rizal Hydro Power Plant
Kagay ES in Talipaw, Sulo Plant in Sto. Tomas, Batangas in Rizal, Nueva Ecija
Waste-to-Energy (WTE) Project in Baguio City. A Joint Venture Agreement between the PNOC-RC
and the City Government of Baguio City was signed in January 2019 through an MOU for the
development of a WTE project and for the establishment of a sustainable solid waste management for
the city. The detailed feasibility study was completed in June 2020, which consequently awarded a
Biomass Energy Operating Contract (BEOC) in January 2021 by the DOE. The target completion date
of the project is 2023.
ARIS (NIA) Hydropower project. A Memorandum of Agreement (MOA) with the National Irrigation
Administration (NIA) was also signed in 2020 for the development and implementation of the 1-MW
Agno River Irrigation System (ARIS) Mini-Hydropower Project in San Manuel, Pangasinan. 227 The project
aims to utilize ARIS in producing clean energy while supplying the energy requirement of over 2,000
households. Likewise, the project is seen to provide livelihood opportunities in the community within the
area. From the project, about 11- ton of carbon dioxide emission (CO2) is expected to be avoided
annually. Initially, the project was scheduled to be in October 2020, but the issuance of licenses and
permits has been delayed due to pandemic.
Solar Rooftop Projects. Adopting the concept of the DOE’s “Installation of Solar Photovoltaic (PV)
Facilities for Own-Use by Private Academic Institutions” project in 2014, the PNOC-RC initiated its
Rooftop Solar PV installations for government agencies in 2015. To date, PNOC-RC has already installed
and maintained a total of 2,750 kWp capacity of solar PV in 10 government agencies, which include the
City Government of Naga in Cebu under the government-to-government (G2G) agreement (Table 93).
The implementation of these solar PV rooftop projects enabled displacement of 12.0 GWh electricity
and 6,821 million tons of CO2, and generated government savings of around PhP6.4 million, which
effectively recouped government capital of about PhP63.21 million.
227
https://pnoc-rc.gov.ph/index.php/news-and-events/61-moa-signing-for-aris-mini-hydropower-project

Further, collaborations with other government Table 93. LIST OF SOLAR PV PROJECTS
institutions are still in the works with the ongoing Capacity
review of the proposed MOA with the following Establishment
(kWp)
agencies: (1) Technical Education and Skills 1. PHC – Quezon City 100
Development Authority (TESDA) with estimated
2. DOST PCIEERD – Taguig City 100
capacity of 100kWp, (2) Social Security System
(SSS) (175kWp), (3) Mariano Marcos State 3. DENR EMB – Quezon City 100
University (MMSU) (200 kWp), (4) Department of 4. PCA – Quezon City 80
Budget and Management (DBM) (430 kWp), (5)
5. UP Diliman – Quezon City 240
Quirino Memorial Medical Center (QMMC) (220
kWp), (6) Department of Agriculture (DA) (140kWp), 6. COA – Quezon City 200
(7) Government Service Insurance System (GSIS) 7. BSP EDPC – Manila City 200
(400 kWp), (8) Department of Agrarian Reform
8. BSP SPC – Quezon City 400
(DAR) (200 kWp), (9) Department of Science and
Technology (DOST) - 200 kWp, (10) Bangko Sentral 9. PICC – Pasay City 1,050
ng Pilipinas (BSP) (1,835 kWp), and (11) 10. LGU Naga City, Cebu 100
Department of Public Works and Highways (DPWH)
(2,710kWp).
Alongside these initiatives, the PNOC-RC continues to facilitate the implementation of mini- or micro-
grid RE systems for electrification. These are small-scale decentralized RE generation systems with the
capacity to integrate different energy sources, hybrid RE systems (i.e., solar with battery energy storage
or BES, wind, and biodiesel) and energy storage technologies on a modular basis. Technical
Consultancy Services on renewable energy and energy efficiency projects for LGUs and government
agencies will still be priority undertaking in the long-term.
II. NATIONAL ELECTRIFICATION ADMINISTRATION
The primary mandate of the National Electrification Administration

(NEA) is to implement the Rural Electrification Program, in accordance
with the Section 2 of the Republic Act No. 1053 or the NEA Reform Act of
2013. Amidst the challenges that come with the COVID-19 pandemic, the
NEA is relentless to its commitment of providing electricity up to the
remotest and most isolated areas in the countryside in pursuit of
promoting sustainable development through rural electrification.
In support of the energy sector development agenda, the NEA is

continuously pursuing several programs and initiatives to expand
electricity access with utmost importance on the promotion and utilization of renewable energy-based
resources as part of its strategies to accelerate rural electrification.
Sitio Electrification Program. The NEA, in partnership with the electric cooperatives (ECs), seeks to
bring power to the remaining 11,174 unelectrified sitios until 2026 through the Sitio Electrification
Program (SEP) Phase II with an estimated cost of PhP16.8 billion. In the 2021 budget, the PhP1.6 billion
was earmarked for the energization of 1,085 sitios nationwide, wherein 362 sitios have already been
energized/completed as of April 2021.
Barangay Line Enhancement Program. The implementation of Barangay Line Enhancement Program
(BLEP) aims to connect to the grid the 166 barangays that were previously energized by small
generating sets and solar home systems. The project requires an estimated cost of PhP2.4 billion and
is targeted for completion in 2026. Still, the realization of this target is subject to the subsidy funds
release by the national government.
Strategized Sitio Electrification Program. The NEA’s Strategized Sitio Electrification Program (SSEP)
is designed for areas that cannot be connected to the grid, specifically those isolated sitios that cannot

be energized by either SEP or BLEP. The project has an appropriated budget of PhP12 million for the
conduct of “Feasibility Study on Establishing Mini-Grid System with Renewable Energy Source” for the
development of either mini-grid community using only renewable source or hybrid mini-grid energy
system. The project will benefit six (6) off-grid localities in the franchise areas of four (4) ECs, namely
QUEZELCO II, ZANECO, DASURECO and SOLECO.
Strategized Household Electrification Program. Another ongoing program being undertaken by the
NEA for off-grid electrification is the Strategized Household Electrification Program (SHEP). It aims to
energize dispersed and isolated households which are unviable for grid connection for the next five
years. With an allocated budget of PhP153 million, it intends to bring electricity to at least 5,000
households in off-grid areas using 50 watt-peak (Wp) Solar Home System (SHS) units until 2022. As of
the first quarter of 2021, the NEA already installed a total of 796 SHS units.
Assisted Projects under EU-ASEP. As a partner of the government in the energization projects, the
European Union – Access to Sustainable Energy Program (EU-ASEP) is continuously implementing
three (3) electrification programs through the use of renewable energy source.
The Solar PV Mainstreaming (PVM) Program uses SHS to provide electricity to dispersed
households in remote and off-grid areas. Offered in two (2) windows, Window 1 and Window 2 were
programmed to install SHS units to 10,000 and 30,500 households, respectively. The
implementation was completed in 2020. The program will be operated and maintained by the
participating ECs under a fixed monthly tariff approved by the ERC.
Another component under EU-ASEP is the Rural Network Solar (RNS). It involves the development
of small - grid connected solar PV power plants to be installed in locations close to the ECs’
distribution substations in cooperation with the private sector. It provides subsidy of Euro 7.0 million
for seven (7) projects at Euro 1.0 million per EC. The ECs will shoulder 30.0 percent (maximum) as
equity and secure Certificate of Registration (COR) for Own-Use.
With Euro 4.5 million worth of funding from the EU, the Integration of Productive Uses of
Renewable Energy for Sustainable and Inclusive Energization in Mindanao (I-PURE Mindanao)
aims to provide renewable energy solutions for the livelihood activities and household energization
in marginalized and disadvantaged communities. The NEA is closely working with the Mindanao
Development Authority (MinDA) and some Mindanao ECs to implement this project.
In addition to the electrification programs, initiatives for the improvement on supply of power are
currently underway to meet the increasing demand. As such, the NEA is now reviewing the draft
guidelines for the development of Electric Cooperative-Owned Distributed Generation Facility. This
will allow all ECs to have its own 1.0 MW distributed generation facility through renewable energy and/or
other sources, either wholly owned or partly owned through joint venture and other schemes.
Moreover, the NEA continues to be directly involved on the implementation of Competitive Selection
Process (CSP) for the procurement of EC’s power supply requirements. As of the first quarter of 2021,
NEA has reviewed nine (9) Terms of Reference (TOR) and one (1) Power Supply Agreement (PSA). It
also issued six (6) Notices to Proceed (NTPs) for the conduct of CSP and one (1) NTP for signing of
final PSA.
To attract alternative service providers and private investments in rural electrification, the NEA continues
to assist the DOE in implementing and monitoring the Qualified Third Party (QTP) Program in remote,
unserved and underserved areas covered by the EC franchise. In a public notice228 that was published
on 15 March 2021, a total of 69 QTP service areas have been declared in Negros Occidental and
Palawan – six (6) are within franchise area of Negros Occidental Electric Cooperative, Inc. (NOCECO),
while 63 are under the Palawan Electric Cooperative, Inc. (PALECO).
228
DOE PN 2021-03-0001

With regard to emergency and resiliency management in the energy sector, the NEA provides financial
assistance to the ECs through the Electric Cooperatives Emergency and Resiliency Fund (ECERF) for
immediate restoration and rehabilitation of their damaged distribution infrastructures after calamities or
force majeure. For 2021, the ECERF has an approved budget of PhP750 million. Same amount has
been included in their proposed budget for 2022, as well as the PhP200 million for Quick Response
Fund (QRF).
On the effects of COVID-19 pandemic to the country’s agri-food system, the NEA has also taken steps
to support the government’s program in addressing the pressing problems on food supply. To serve as
a support mechanism, the NEA urged all ECs to actively participate on the implementation of the
“Palamigan ng Bayan Program”229 and “Kadiwa ni Ani at Kita Program”230 by extending all necessary
assistance and providing electricity to farms in the rural areas for greater production towards food
sufficiency.
III. NATIONAL POWER CORPORATION

As part of its missionary electrification function, the National Power
Corporation (NPC) remains committed in its endeavor of bringing power to off-
grid islands and far-flung communities through the Small Power Utilities Group
(SPUG). Responding to the development need of missionary areas, the NPC is
set to carry out the following plans and programs to keep the country on track
to its goal of achieving total electrification in support to the administration’s call
for inclusive development.
24/7 Operations of NPC-SPUG Plants. The NPC is aiming for the full-time operation of its 124231 power
plants by the end of 2022, 87 of which were already granted 24-hour operation. Also, part of the program
is the re-fleeting of generating sets to replace/refurbish ageing and inefficient units, as well as the right
sizing of fuel storage tanks in plants.
Capacity Addition. The NPC laid out its capacity addition programs to provide sufficient power supply
and eventually extend the operating hours of electricity services in missionary areas. To supplement
the existing power plants, around 33.4 MW and 11.9 MW of new capacities are scheduled to be added
in 2021 and 2022, respectively. Out of the 45.3 MW of total capacity planned in the next two years, 40.4
MW is for existing areas and 4.9 MW is for new areas (mini-grid).
In areas where the franchised distribution utility (DU) has already expressed the intent to conduct a
CSP, the NPC continues its power generating function through leasing of generating sets for easy
phase-out in the area until the New Power Provider (NPP) has established its operation. For 2021, the
NPC has leased a total of 37.7 MW generating sets to meet the demand in areas with power deficiency.
Transmission and Substation Projects. For 2021, the NPC plans the construction and installation of
71.3 circuit-kilometers (ckt-km) of transmission lines and 45 megavolt-ampere (MVA) of substation
capacities. These projects include the 69 kilovolt Roxas to Taytay transmission line in Palawan;
upgrading of the 20 MVA Mobo Substation in Masbate, transfer of the 5 MVA substation from Narra to
Brookes Point in Palawan, and the construction of the 20 MVA Mogpog substation in Marinduque.
Decommissioning Program. This program is for redundant, non-operational, or highly inefficient power
facilities and generating units. Part of the decommissioning process are: (1) study options on the sale,
lease, transfer or disposal; (2) verification; (3) appraisal of assets; and, (4) environmental assessment
and site remediation, among others. The NPC plans to decommission 13.9 MW of total capacity by 2021,
with 15 generating units scheduled for disposal.
229
Promotes the use of refrigerated container vans as cold storage to help local fishermen preserve their catch and to address concerns
on food quality and productivity.
230
Direct marketing scheme where producers (farmers/fisherfolk) are directly linked with the consuming public, making available food
commodities at reasonable prices to consumers through accessible Kadiwa retail stores.
231
2015 Baseline; Excluding the Philippine Rural Electrification Service (PRES) in Masbate (133 plants)

Electrification. Pursuant to the TEP of the government, the NPC is committed to achieve 100 percent
electrification of targeted/identified unserved households (based on 2015 Census) in all missionary
areas by 2022. As of November 2020, the NPC-SPUG already energized 1,080,242 out of 1,554,087
targeted households. The NPC is expected to bring power to the remaining 335,938 unserved
households in the missionary areas.
Renewable Energy Program. Responding to the DOE’s strategic directive of promoting a low carbon
future and in compliance with the Renewable Portfolio Standards (RPS) for off-grid areas, the NPC has
become more proactive in utilizing renewable energy in SPUG areas.
One of its flagship programs is the Solar Hybridization of SPUG Diesel Power Plants, which combines
the diesel generator with a solar PV and battery system. Four (4) power plants with a total capacity of
595 kilowatt-peak (kWp) are now programmed for hybridization, which are due for completion in 2022.
The solar hybrid facilities will be located in Cuaming, Bohol (55 kWp), Palumbanes in Catanduanes (40
kWp), Sabtang in Batanes (250 kWp), and Itbayat in Batanes (250 kWp). For the following years up to
2025, hybridization projects are concentrated in existing SPUG areas as operational data is already
established.
To accelerate the electrification of sparsely populated areas, the NPC is undertaking its own PV
Mainstreaming Program, which involves the provision of SHS to 1,706 households for 2021 and 8,481
households for 2022. It is also implementing the same program under the EU-ASEP and World Bank
Projects.
The NPC is also carrying out resource assessment for other renewable energy sources, such as wind
and mini/micro hydro, to harness their power generation potential. In 2021, it has identified five (5)
potential wind sites and five (5) potential hydro sites for assessment. There are also four (4) wind sites
for assessment in 2022 and 2023. Target areas that will qualify or pass the resource assessment may
proceed to the pre-construction stage and then to the implementation stage.
Management of Remaining Power Assets and IPP Contracts. The NPC is still the government entity
in charge of operating and maintaining the country’s remaining power assets, such as the Agus-Pulangi
Hydroelectric Power Plants in Mindanao and the Ilijan Natural Gas Receiving Facility (INGRF) including
its natural gas pipeline. It likewise undertakes the preservation and maintenance of the Bataan Nuclear
Power Plant.
For and on behalf of Power Sector Assets and Liabilities Management Corporation (PSALM), the NPC
continues to manage the remaining eight (8) Independent Power Producer (IPP) contracts with a total
contracted capacity of 5,509.8 MW and ensures that it is available to the main grid. It also assists in the
settlement of IPP billings with PSALM including the concerns and challenges relating to contracts. To
guarantee the agreed capacity levels, the NPC actively supervises and ensures the conduct of capacity
tests in all IPP power plants.
Agus-Pulangi Rehabilitation Project. The NPC is currently in the preparatory stage for the
implementation of the Agus-Pulangi Rehabilitation Project (APRP) with the involvement of the
Department of Finance (DOF), the DOE and PSALM. Funded through the Official Development
Assistance (ODA), the project aims to restore the original combined capacity of about 1001MW and
extend their economic life to another 30 years. The NPC will prepare the Feasibility Study utilizing the
grant from the World Bank. Further, the Multiple Options Study (MOS) has been substantially
completed, while the conduct of Environmental and Social Impact Assessment (ESIA) is already in
progress.
Apart from these ongoing programs and initiatives, the NPC is accelerating its efforts toward enhancing
the efficiency and reliability of its power plant facilities through the conduct of performance and energy
efficiency audits. Some of the ongoing programs include Quality Assurance Program, Heat Rate
Improvement Program, and Reliability Centered Maintenance Program.

In line with the privatization of SPUG’s power generation function, the NPC upholds its commitment to
assist off-grid ECs in the conduct of CSP to select their NPP. Further, the NPC will continue to support
and closely collaborate with the DOE in enacting the policy on rationalization of tariffs and phase-out of
the Universal Charge for Missionary Electrification (UCME) subsidy in missionary areas.
On top of its electrification mandate, the NPC aspires to contribute to sustainable hydro and geothermal
power generation through the effective and proper management of watershed areas and dams
throughout the country. To fulfill this mandate, the NPC will continue to inspect and assess the large
dams for structural integrity and safety. The NPC will likewise pursue watershed rehabilitation, intensify
forest protection and law enforcement, and implement regulatory programs on the use of watershed
resources.
IV. NATIONAL TRANSMISSION CORPORATION

The National Transmission Corporation (TransCo) is a government-
owned and controlled corporation created under the Republic Act
(RA) 9136, otherwise known as the Electric Power Industry Reform Act
(EPIRA) of 2001. Primarily, the TransCo is responsible for the
operation and management of the country’s power transmission system that links power plants to the
electric distribution utilities nationwide. However, after the National Grid Corporation of the Philippines
(NGCP) secured a congressional franchise to operate the transmission network through RA 9511,
TransCo turned over the management and operation of its nationwide transmission system to the NGCP
in 2009.232
While the ownership of all transmission assets remains with the TransCo, it is mandated to protect the
national government’s interests by ensuring the NGCP’s compliance with the terms and conditions of
the Concession Agreement and the policies of the DOE, as well as handle all existing cases, including
right-of-way and claims, which
accrued prior to the turnover in
2009. The TransCo is also
responsible of divesting the
remaining sub-transmission
assets to technically and
financially qualified DUs
nationwide, undertake the
operation, maintenance,
consultancy and other technical
services for the Philippine
Economic Zone Authority
(PEZA), and administer the
Feed-in-Tariff Allowance Fund
for renewable energy
generators.
System Operator in Small/Off-Grid Areas. In an effort to improve the electric service in off-grid areas,
the DOE has mandated TransCo by virtue of Memorandum Circular issued by Secretary Alfonso G. Cusi
on 4 February 2021 to perform as the off-grid system operator (SO) for any small grid or off-grid power
system with more than one power supplier. This is also to support and effectively implement the policies
set under the DOE issued “Omnibus Guidelines233 on Enhancing Off-Grid Power Development and
Operation.”
Currently, preparatory works for the development of a business plan for the islands of Palawan, Mindoro,
Catanduanes and Marinduque, which involves organizational, operational, legal, financial, and
232
https://www.transco.ph/about
233
DC 2019-01-0001 issued on 25 January 2019

regulatory aspects are underway. The launch of the full operations for the Island control centers and
the National Control Center for Island SO is targeted in August 2022.
Accessibility to high-speed internet is another priority project of the TransCo for 2021. The Project
AirGig aims to deliver internet service along the TransCo’s transmission lines without the use of cables,
satellites, and fibers. The project is targeted for completion by the last quarter of 2021.
Alongside these planned programs for implementation, the TransCo continues to conduct regular
inspection of transmission facilities and projects to ensure quality, reliable, affordable, and secured
supply of electricity across the country. Sourcing of funds for the feed-in-tariff (FiT) eligible RE
Developers will be continuously pursued including the timely filing of FiT-All application.
V. POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT

CORPORATION
The Power Sector Assets and Liabilities Management Corporation
(PSALM) has three core functions, in accordance with the EPIRA: (1)
privatization of the NPC’s generation and the TransCo’s transmission
assets; (2) liability management of existing NPC debts, capital lease
payments to IPPs, and outstanding obligations of the ECs to the NEA
and other agencies; and, (3) the administration of Universal Charge.
On the privatization of the remaining power plants and energy contracts

under its portfolio, the PSALM has successfully privatized the Malaya Thermal Power Plant (MTPP) and
its underlying property for PhP3.1 billion through a negotiated sale on 7 May 2021. This is a significant
achievement for PSALM as the offer exceeds the Board's minimum bid price of PhP1.8 billion. The
Notice of Award was issued to Fort Pilar Energy Inc. (FPEI) on 02 June 2021 after it passed the post-
qualification process. The proceeds from the privatization will be used solely to cover the remaining
stranded contract cost and debts assumed by the PSALM.
Following the successful negotiated sale of the MTPP, the PSALM intends to complete the sale structure
and valuation of the Casecnan Multipurpose Power Plant and Caliraya-Botocan-Kalayaan Hydroelectric
Power Plants for these assets to be ready for privatization in 2022 and 2023, respectively. Moreover,
the PSALM is now focusing on privatizing its real estate assets (REAs) and disposing other assets from
various locations.
In coordination with the NPC, the PSALM is committed to actively participate in the activities relative to
the Agus-Pulangi Rehabilitation Project. As the owner, the PSALM will be monitoring the progress of
the project. Similarly, it will support the pre-development of hydropower projects, which will take interest
in using the land and facilities of the Agus-Pulangi Hydro Electric Power Plants (HEPPs). Presently, there
are two (2) renewable energy developers that have been awarded with Hydropower Service Contract
for the development of about 10 MW low head hydroelectric power facility at the headworks of Pulangi
IV HEPP. To ensure that they are consistent with existing law and do not interfere with the continuous
operation of the subject power plant, the PSALM has established parameters that project proponents
must follow in the development, design, construction, and operation of their respective hydroelectric
power plant projects.
To further support its liability management program, the PSALM is optimistic to maintain the high
collection efficiency through aggressive collection policy in the settlement of overdue and delinquent
accounts of power customers and other entities. Likewise, it will work closely with partner agencies and
seek interventions to obtain funding for stranded contract costs and stranded debts from the PhP208
billion Malampaya funds, subject to fiscal space, as provided in the Murang Kuryente Act.

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E. FORGING STRATEGIC ALLIANCES WITH

THE INTERNATIONAL COMMUNITY
Energy trends and prospects in the global and regional arena can affect the domestic
energy landscape. Accordingly, partnership and collaboration across countries are
recognized as key element to further develop and circumvent the external factors affecting
the industry. Various fora have been established from these partnerships for
intergovernmental cooperation, and political and socio-cultural integration.
The Philippines maximizes these engagements by promoting national interests particularly

in optimizing energy mix to attain energy security. This agenda is backed by solid policies
and programs that are favorable to the Filipinos and attractive to foreign investors and
development partners. As a result, the Philippines has established agreements with several
countries in 2020 and 2021, in addition to the agreements in recent years that are still
active. These agreements encompass renewable and other alternative sources of energy,
energy efficiency, and energy security.
In terms of cooperation efforts, the Philippines shares its best practices and technical
insights in high-level assemblies and conferences, and implements activities of joint
undertakings contained in the different work plans and programs. In addition, the
Philippines enforces domestic policies to help address emerging cross-sectoral challenges
that is common across countries.
Global and Regional Energy trends
Energy is a global agenda that drives countries in the race towards industrialization
The global energy system, traditionally founded on fossil fuels, has posed significant problems on
energy security and sustainability, and directly linked with climate change. These threats have united
countries worldwide to strengthen partnerships and collaboration aimed at implementing commitments
that promote and invest in providing solutions towards reliable, affordable, secure and sustainable clean
energy system.
In 2021, the global energy demand is set to increase by 4.6 percent, requiring investments of up to USD
1.9 trillion, rebounding nearly 10.0 percent from 2020. Moreover, energy investment is returning to pre-
pandemic levels and continues to shift towards electricity with renewables projected to account for 70.0
percent of the total investment, exceeding the traditional oil and gas supply for the sixth year in a row. 234
Despite an overall improvement in the trend, the world is falling behind on achieving the 2.6 percent
reduction target in energy intensity in 2030.235
In the ASEAN region, progress is evident in meeting the energy demand and the targets under the
Sustainable Development Goal 7 (SDG 7), particularly ensuring access to electricity and clean fuel and
technology for cooking, increasing renewable energy share, and accelerating energy efficiency. In
234
IEA (2021), World Energy Investment 2021, IEA, Paris https://www.iea.org/reports/worl-energy-investment-2021
235
Regional Energy Trends Report: Tracking SDG 7 in the ASEAN Region. 2020. United Nations Economic and Social Commission for
Asia and the Pacific (ESCAP). Retrieved from: https://www.unescap.org/publications/regional-energy-trends-report-2020-tracking-
sdg-7-asean-region

2019, ASEAN Member States (AMS), excluding Cambodia and Myanmar had electrification rates above
90 percent.236 Similarly, access to clean fuel and technology for cooking showed an increasing trend.
Renewable energy installations are on an upward trend. Likewise, the region’s energy intensity remains
among the world’s lowest but is expected to achieve an annual improvement rate of 2.2 percent by
2030.237
Elevating the Philippine Energy Sector in the International Arena
The development of the energy sector is a key priority to improve the quality of life of Filipinos as
determined in the Philippine Development Plan 2017-2022, specifically in “Foundations for Sustainable
Development: Accelerating Strategic Infrastructure Development.” Likewise, the DOE is committed to
mainstream SDG 7, which is the “Golden Thread” that supports the other SDGs, through intensified
programs on household electrification, renewable energy, energy efficiency, emerging clean energy
technologies, energy resiliency, and climate change mitigation and adaptation as discussed in the
previous chapters. Some of these programs are in partnership with international organizations.
In line with this, the DOE works steadily across borders consistent with its thrust of fostering stronger
international relations and partnerships meant to elevate the country’s energy programs and projects
to attract foreign investments in harnessing indigenous energy resources. Further, the DOE also
maximizes various international fora to support the country’s call for climate justice following the Paris
Agreement, which considers the economic and social development and poverty eradication as the first
and overriding priorities of the developing country Parties, as well as strengthening their capacities to
recover from climate change impacts.
As part of the strategy to gain support in the regional and international arena, the DOE proactively
participates in various bilateral and multilateral engagements, among of which are:
1. Association of Southeast Asian Nations (ASEAN);

2. Asia Pacific Economic Cooperation (APEC);
3. East Asia Summit (EAS);
4. Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA),
5. United Nations Framework Convention on Climate Change (UNFCCC);
6. Economic Partnership and Free Trade Agreements; and,
7. other bilateral and regional energy related undertakings.
Drawing from the goals of the international community, the Philippines continues to support programs
and projects that are congruent with the DOE’s current thrusts as proof of commitments in addressing
cross-sectoral concerns, such as energy security, energy transition, resilience and trade in the
international community.
Efforts in advancing the Philippine Energy Sector’s goals:
▪ Participation in high-level meetings such as ASEAN Ministers on

Energy Meeting/Senior Officials Meeting on Energy (AMEM/SOME)
and its Associated Meetings, ASEAN Centre of Energy Governing
Council, ASEAN+3 (China, Japan, and Korea) Energy Policy and
Governing Group (EPGG) Fora, ASEAN Senior Economic Officials for
Association of the ASEAN Economic Ministers Meeting (SEOM).
Southeast Asian
Nations
236
Practical Experience and Prospects for Electricity Accessibility in ASEAN. 2020. ASEAN Centre for Energy, China Renewable Energy
Engineering Institution. Retrieved from: https://aseanenergy.org/practical-experience-and-prospects-for-electricity-accessibility-in-
asean/
237
Regional Energy Trends Report: Tracking SDG 7 in the ASEAN Region. 2020. United Nations Economic and Social Commission for
Asia and the Pacific (ESCAP). Retrieved from: https://www.unescap.org/publications/regional-energy-trends-report-2020-tracking-
sdg-7-asean-region

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▪ Chairmanship of the Nuclear Energy Cooperation Subsector Network

(NEC-SSN) with the primary objective of increasing the capacities of
the AMS in policy, technology, and regulatory aspects of nuclear
energy.
▪ Chairmanship of the Final Board of Judges (BOJ) meeting for the

ASEAN Coal Awards 2021 which is a priority deliverable under the
ASEAN Plan of Action for Energy Cooperation (APAEC) Phase II 2021-
2025 that gives due recognition on Clean Coal Technology application
and best practices in the coal industry.
▪ Participation in various Specialized Bodies/Sub-sectors Network (SBs

/ SSNs) Meetings to track progress in implementing various Work Plans
under the APAEC – renewable energy, energy efficiency and
conservation, energy policy and planning, coal, civilian nuclear, power
interconnection and gas pipeline interconnection network.
▪ Continuous voluntary work for the attainment of regional goals of 45.0

percent reduction in energy intensity by 2035 and doubling the share
of renewable energy (RE) in the APEC’s overall energy mix by 2030
based on 2010 levels.
▪ Participation in the APEC Energy Working Group (EWG) Meeting and

Associated Meetings and several workshops that needs technical
expertise, sharing of best practices and notable developments.
▪ The Philippines and the United States (U.S.) co-chairs the APEC Task
Force on Energy Resiliency.
▪ Participation in the BIMP-EAGA Mini Clusters/Working Groups

Strategic Planning Meeting (SPM); BIMP-EAGA Power and Energy
Infrastructure Cluster (PEIC) Mini Strategic Planning Meeting (SPM);
BIMP-EAGA Strategic Planning Meeting (SPM)/Senior Officials
Meeting (SOM);
Brunei Darussalam,
Indonesia, ▪ Participation and provision of resource persons to the BIMP-EAGA
Malaysia, Energy Online Conference & Exhibition (BECE)
Philippines – East
ASEAN Growth
Area (BIMP-EAGA)
Participation in various inter-agency trade-related activities and

Trade, Bilateral and undertakings, such as the Committee for ASEAN Economic Community of
Multilateral the ASEAN Matters Technical Board (AMTB) and the Technical Board on
Cooperation APEC Matters (both under the Philippine Council for Regional
Cooperation), the Committee on Trade in Goods, and the Philippine
Working Group on Services.
The DOE is likewise involved in the following bilateral cooperation:
▪ Philippines-US Economic Briefing;

▪ Philippines-Scottish Renewable Energy Opportunities Meeting;
▪ Philippine-Canada Joint Commission for Bilateral Cooperation;
▪ Philippines-European Union Partnership Cooperation Agreement Sub-
Committee on Trade, Investment, and Economic Cooperation;
▪ Philippines-Switzerland Joint Economic Commission;

▪ Philippines-Russia Political Consultations Meeting;

▪ Philippines-France Joint Economic Commission;
▪ Philippines-Japan High level Joint Committee on Infrastructure
Development and Economic Cooperation Meeting; and,
▪ Philippines-Hungary Joint Commission on Economic Cooperation.
The DOE enters into bilateral and multilateral agreements in relevant areas
of development that are aligned with the energy sector’s agenda. In
addition to the partnerships in recent years that are still active to date, the
DOE has established new partnerships in 2020 and 2021 particularly with
Japan, Russia, New Zealand, and Australia. Major agreements include
provision of technical expertise through review of existing plans, conduct
of study for electrification using renewable sources, pre-feasibility study for
alternative sources of energy such as hydrogen and nuclear energy, and
enhancement of energy cooperation for geothermal energy.
These agreements in the form of Memorandum of Understanding (MOU),

Memorandum of Agreement (MOA) and Letter of Intent (LOI) normally have
three (3) years effectivity period. However, the term is extended when both
governments/parties find the collaboration mutually beneficial.
The Energy Sector’s Commitments in the Regional and International Fora
The DOE continues to cooperate and fulfill its commitments with the international community. These
include implementing activities contained in the different work plans such as the conduct of joint
research studies for policy development, technology transfer, sharing of technical expertise as well as
human capacity building that benefits the whole region and beyond.
➢ ASEAN
ASEAN was established on 8 August 1967 by the Founding Fathers namely Indonesia, Malaysia,
Philippines, Singapore, and Thailand. Subsequently, Brunei Darussalam, Vietnam, Lao PDR, Myanmar,
and Cambodia, joined making up the 10 Member States of ASEAN. This inter-governmental organization
was established with the signing of the ASEAN Declaration, a document affirming mutual aims,
principles, and purposes for a harmonious regional cooperation.
ASEAN Plan of Action on Energy Cooperation Phase II: 2021-2025. On the maiden year of
implementing the APAEC Phase II, the DOE remains committed to fulfilling its part in advancing energy
cooperation in the region. With a sub-theme of “Accelerating Energy Transition and Strengthening
Energy Resilience through Greater Innovation and Cooperation,” the DOE puts emphasis on activities
identified on pandemic recovery efforts, cross-cutting issues such as climate change and
decarbonization, energy transition, energy investment and financing of projects, new and emerging
energy technologies, and digitalization of the energy sector.
Engagement in various SBs and SSNs focuses on the seven (7) APAEC Program Areas, namely:
▪ ASEAN Power Grid (APG) – expand regional multilateral electricity trading, strengthen grid
resilience and modernization, and promote clean and renewable energy integration;
▪ Trans-ASEAN Gas Pipeline (TAGP) – pursue the development of a common gas market for
ASEAN by enhancing gas and LNG connectivity and accessibility;
▪ Coal and Clean Coal Technology – optimize the role of clean coal technology in facilitating the
transition towards sustainable and lower emission development;
▪ Energy Efficiency and Conservation – reduce energy intensity by 32.0 percent in 2025 based
on 2005 levels and encourage further energy efficiency and conservation efforts, especially in
transport and industry sectors;

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▪ Renewable Energy – increase the component of RE share to 23.0 percent in total primary
energy supply (TPES) based on 2005 levels and share in installed power generation capacity
to 35.0 percent by 2025.
▪ Regional Energy Policy and Planning – advance energy policy and planning to accelerate the
region’s energy transition and resilience; and,
▪ Civilian Nuclear Energy – build human resource capabilities on nuclear science and technology
for power generation.
38th ASEAN Ministers on Energy Meeting held on 19 November 2020
➢ APEC
APEC is a regional economic forum established in 1989 to leverage the growing interdependence of
the Asia-Pacific. It envisions to ensure that goods, services, investment, and people move easily across
borders. It operates as a cooperative, multilateral economic and trade forum. Member economies
participate based on open dialogue with utmost respect to the views of all participating economies. All
economies have an equal say and decision-making is reached by consensus. Unlike in ASEAN, there
are no binding commitments or treaty obligations required. Commitments are undertaken on a voluntary
basis and capacity building projects help members implement the APEC initiatives.
Energy Working Group (EWG). Established under the APEC umbrella is the EWG, a voluntary and
region-based forum launched in 1990, which formally meets twice a year. The EWG is composed of
government officials and technical experts from APEC member economies who work with experts in
other APEC fora, academia, private industry, and regional and international organizations to build
capacity aimed at:
▪ Strengthening regional and domestic energy security and resilience across the region;
▪ Lowering the carbon intensity of energy supply and use;
▪ Promoting the diversification of fuels and sources; and
▪ Training on gender-inclusive energy workforce.
The EWG’s work incorporates guidance from APEC Economic Leaders and Ministers, and Energy
Ministers to form a solid foundation for APEC energy cooperation, including:

▪ Working towards the APEC aspirational target of reducing aggregate energy intensity by 45.0
percent from 2005 levels in
2035 through collaboration
on analysis of available
energy efficient
technologies, energy
efficiency standard
harmonization and peer
review on energy
efficiency;
▪ Thriving towards achieving
the APEC aspirational
target on “doubling the
share of renewables in the
region’s energy mix
(excluding traditional
biomass), including in
61st Meeting of the APEC Energy Working Group
power generation” from
2010 levels by 2030;
▪ Making further progress toward rationalizing and phasing out of inefficient fossil fuel subsidies,
while providing energy access to those in need;
▪ Improving resiliency of energy infrastructure to natural disasters and climate change within the
region through the “APEC Initiative for Enhancing the Quality of Electric Power Infrastructure,”
and conducting vulnerability assessment on energy infrastructure;
▪ Supporting community-based low carbon development in the region through the APEC Low
Carbon Model Town Project, APEC Energy Smart Community Initiative Knowledge Sharing
Platform, and APEC Cooperation Initiative for Jointly Establishing an Asia-Pacific Urbanization
Partnership;
▪ Implementing Oil and Gas Security Initiative to address the challenges and improve security
exercises, as well as create favorable conditions for trade and investments to support a
diversified, flexible, and integrated natural gas market in the APEC region through “APEC
Regional LNG Trade Facilitation Initiative;”
▪ Implementing “APEC Green Energy Finance Initiative” to ensure financial sustainability of green
energy development in the region; and,
▪ Strengthening cross-fora collaboration and public private partnership on APEC energy issues.
Energy Security Initiative (ESI). The ESI was developed and endorsed by the EWG and APEC
Economic Leaders in 2001 to respond to any energy supply disruptions and address broader energy
challenges in the region by providing both short- and long-term measures. Overtime, its scope has
expanded with the inclusion of energy resiliency and the creation of the Energy Resilience Task Force.
During the 58th EWG Meeting held in October 2019, member economies agreed to further revise the
ESI scope to reflect a wider understanding of what energy security encompasses given the changes in
the energy supply and demand structure. Australia, China, and the United States are working on the
new ESI with inputs from member economies including the Philippines. The new ESI intends to provide
a framework for the EWG to undertake activities that support the energy security goals of APEC member
economies on greater access to affordable, reliable, resilient, and sustainable energy. It is expected to
be finalized soon for possible endorsement of the APEC Leaders, Senior Officials and Energy Minsters.
APEC Putrajaya Vision 2040. The Putrajaya Vision 2040 aims to build an “Open, Dynamic, Resilient,
and Peaceful Asia-Pacific for the Prosperity of all our People and Future Generations.” This vision will
be achieved by pursuing three (3) economic drivers, namely: trade and investments, innovation and
digitalization, and strong, balance, secure, sustainable and inclusive growth. Among other sectoral
goals, the distinct role of the energy sector reflects the target driven by the EWG through the ESI, which
is to accelerate the progress towards doubling RE over 2010 baseline and to reduce the aggregate
energy intensity by 45.0 percent from 2005 levels by 2035.

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➢ BIMP-EAGA
The BIMP-EAGA initiative was established in 1994 by four (4) countries as a shared strategy to
accelerate socio-economic development of the less developed and geographically remote areas in the
member countries. This regional cooperation agreement covers the entire sultanate of Brunei
Darussalam; the provinces in Kalimantan, Sulawesi, Maluku and Papua in Indonesia; the states of Sabah
and Sarawak and the federal territory of Labuan in Malaysia; and the entire island of Mindanao and the
province of Palawan in the Philippines. From its inception, the cooperation program adopted a public-
private approach to development with private sector serving as the engine of growth and the public
sector taking an enabling role.
The BIMP-EAGA Power and Energy Infrastructure Cluster (PEIC) formulated a nine (9)-year Roadmap
(2017-2025) to achieve a resilient and improved energy sector for sustainable development with reliable
and stable power supply, and enhanced electrification in the respective member countries by optimizing
the use of domestic energy resources. The PEIC likewise intends to improve the regional energy
security through power interconnection, renewables, rural electrification, and energy efficiency and
conservation projects as included in the final BIMP-EAGA Vision 2017-2025 (BEV2025). The Cluster
need to come up with enclave power connection (in-country) or interconnection (two or more countries
involve) projects coupled with renewable projects, and energy efficiency and conservation programs
within the sub-region.
Several studies were conducted including the pre-feasibility study on East Kalimantan, Borneo-
Mindanao Power Interconnection in response to the power supply shortage in Mindanao. A similar
study was conducted by the Asian Development Bank (ADB) for the Palawan-Sabah Interconnection,
which envisioned to import cheaper power to Palawan from Sabah.
➢ United Nations Framework Convention on Climate Change (UNFCCC)
As one of the major contributors to greenhouse gas (GHG) emissions, the energy sector is directly
involved on issues relating to climate change. The DOE represents the energy sector in providing
technical and expert views on what climate change mitigation pathways and adaptation strategies the
country needs to take.
The Conference of the Parties (COP) under the UNFCCC is the highest decision-making authority. It is
an association of all the countries that are Parties to the Convention. The COP is responsible for keeping
international efforts to address climate change on track. It reviews the implementation of the UNFCCC
and examines the commitments of Parties in light of the Convention’s objectives, and new scientific
findings and experiences gained in implementing climate change policies.
A key task for the COP is to review the progress made by Parties as reported in their submitted national
communications and GHG emission inventories.
The Philippines, along with the other 196 UN member states, signed the historic Paris Agreement during
France’s hosting of COP 21 in December 2015. The universal agreement’s main aim is to keep a global
temperature rise this century well below 2.0 degrees Celsius (°C) and to drive efforts to limit the
temperature increase even further to 1.5 °C above pre-industrial levels. Following the Agreement, the
next step is for the country to develop its first Nationally Determined Contributions (NDC) building from
the submitted Intended Nationally Determined Contributions (INDC) to the UNFCCC.
It should also be noted that Article 4 of the Agreement stipulates that all Parties should act to protect
the climate system based on "common but differentiated responsibilities and respective capabilities,"
and developed country Parties should "take the lead" in addressing climate change. Likewise, Article 4
states that the extent to which developing country Parties will effectively implement their commitments
depends on the effective implementation by developed country Parties of their commitments under the
Convention related to financial resources, transfer of technology and capacity building.

Table 94. KEY ARTICLES OF THE AGREEMENT

Article 2 Long-term Goal “Well below” 2°C and “pursue efforts” to limit the temperature rise
to 1.5°C
Article 3 Nationally Ambitious and progressive efforts to achieve the objective
Determined
Contribution
Articles 4 to 6 Mitigation Reducing emissions fast to achieve the temperature goal
Article 7 Adaptation Strengthening ability to deal with climate impacts
Article 8 Loss and Damage Strengthening ability to recover from impacts
➢ Multilateral and Bilateral Free-Trade Agreements
The DOE is also engaged in free trade areas/regional trade areas such as the World Trade Organization
(WTO), ASEAN Free Trade Area (AFTA), and Regional Comprehensive Economic Partnership (RCEP)
Agreement, among others. Other bilateral trade agreements include the Philippines-Japan Economic
Partnership Agreement (PJEPA) and the Philippine-European Free Trade Association, etc.
Following the signing of the RCEP in 2020, participating countries are now in the process of ratifying
the Agreement for a possible entry-into-force in early 2022. At this stage, the Philippines is preparing
the requisite documents for the ratification of the RCEP Agreement, including the Certificates of
Concurrences (COCs) of agencies that were involved in the negotiations, including the DOE.
The RCEP will provide a framework to lowering or removing trade barriers and securing improved
market access for goods and services in the region through:
▪ Recognition of ASEAN Centrality in the emerging regional economic architecture and the
interests of ASEAN’s FTA Partners (AFPs) in economic integration, and strengthening regional
economic cooperation;
▪ Provisions to facilitate trade and investment, and to enhance transparency in trade and
investment relations between and among the participating countries;
▪ Facilitate engagements in global and regional supply chains; and
▪ Broaden and deepen ASEAN’s economic engagement with its FTA Partners.
Some of the upcoming ASEAN bilateral trade areas include:
▪ ASEAN-Organization for Economic Co-operation and Development (OECD);

▪ ASEAN- European Free Trade Association;
▪ ASEAN-Canada; and,
▪ ASEAN-United Kingdom.
The DOE is also part of the negotiation in different multilateral and bilateral fora primarily to look after
our local energy industry. In particular, the DOE wants to safeguard the country’s energy goods and
services to make it competitive with what other countries are offering. These agreements are
comprehensive in nature involving negotiations in trading of goods and services, economic cooperation,
and investments, among others, which are seen to bring economic benefits and energy supply security
for the country. With this, the Philippine trade negotiating delegation require the active participation
and strong representation from the inter-agency members and relevant government agencies including
the DOE during the discussions specific to energy goods and services.
➢ Collaboration with International Organizations and Other Countries
The DOE strengthens its collaboration with international organizations and other countries to provide
the necessary assistance in achieving the country’s energy transition targets. Among these
collaboration efforts include:

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▪ Building Low Emission Alternatives to Develop Economic Resilience and Sustainability (B-
LEADERS)
The B-LEADERS (2014-2019) is a 5-year program by the United States Agency for International
Development (USAID) to support the Philippines and its key partners in planning, designing, and
implementing Low Emission Development Strategies (LEDS). In its completion, the B-LEADERS
accomplished its two (2) major tasks: (1) strengthened in-country capacity on low emission
development (LED); and (2) increased investments in clean energy.
The projects implemented through this program resulted in the reduction, sequestration, or
avoidance of GHG emissions of about 563,648 metric tons of carbon dioxide
equivalent (MTCO2e), increase in power generation from clean energy sources equivalent to 242
megawatts (MW) of capacity, and the mobilization of investments in clean energy projects and
activities valued at USD 579 million. By 2030, these projects could cumulatively contribute to a
total GHG reduction of at least 6.0 million MTCO2e.
▪ Access to Sustainable Energy Program (ASEP)
The Delegation of the European Union (EU) has been supporting the country attain its household
electrification targets through the Access to Sustainable Energy Programme or ASEP since 2016.
It has committed a total grant of Euro 60 million or about PhP3.7 billion to help the country meet
its rural electrification targets through the utilization of renewable energy, while promoting energy
efficiency.
As a result of ASEP renewable energy (RE) investments and the facilitation of RE investments by
the private sector, around 100,000 to150,000 poor households in remote areas will have access
to electricity, and/or utilize innovative energy solutions. Further, 20 megawatts (MW) of RE
generation capacity will be installed, and GHG emissions equivalent to that discharged by a 50
MW coal-fired power plant is to be avoided by the end of the project in 2022.
In April 2020, the Delegation of the EU provided additional funding amounting to Euro 6.0 million
(equivalent to PhP336 million) to continue supporting the DOE’s efforts in improving access to
sustainable energy for remote areas. About PhP4.5 million of which will be used to fund livelihood
and electrification projects using renewable energy solutions in the marginalized and
disadvantaged communities in Mindanao.
▪ Development for Renewable Energy Applications Mainstreaming and Market Sustainability

(DREAMS)
In partnership with the Global Environment Facility (GEF) and the United Nations Development
Programme (UNDP), the DOE is implementing the Development for Renewable Energy
Applications Mainstreaming and Market Sustainability (DREAMS) Project from 2016-2023 with a
total grant amount of USD 5.2 million.
The DREAMS project aims to reduce GHG emissions through the promotion and
commercialization of RE market, and removal of barriers to investments in RE-based power
generation projects. The project benefitted about 20,000 sitio-based households now with
access to electricity using renewable sources. This will lead to an estimated total direct GHG
emission reduction at 2,445 kiloton CO2 (KTCO2), and indirect reductions ranging from 4,889 to
141,000 KTCO2.
▪ Energy Transition Council Meeting
The DOE joined the first Energy Transition Council (ETC) meeting on 4 December 2020 in
preparation for the UN COP26. During the meeting, the Council agreed to explore specific
opportunities for collaboration in the following areas:

a. Making clean power technologies the preferred option for countries investing in new
power generation, with the aim of doubling the rate of investment in clean power by
2030;
b. Developing policy and regulatory frameworks to attract the private sector to help deliver
and finance the investment needs;
c. Supporting people and communities heavily reliant on the coal economy to make a
secure and just transition to clean power and other economic opportunities, ensuring
that no one is left behind; and,
d. Enabling the delivery of Sustainable Development Goal (SDG) 7, harnessing centralized
and decentralized clean energy solutions to achieve universal access to sustainable,
affordable, modern energy by 2030, increase energy efficiency, and maximize the wider
development benefits of the energy transition.
▪ Southeast Asia Energy Transition Partnership (ETP) Program by the UN Office for Project
Services (UNOPS)
The Southeast Asia ETP Program is a multi-stakeholder platform that seeks to accelerate energy
transition in Southeast Asia and deliver the Paris Agreement targets on climate change by
bringing together governmental and philanthropic donors and partner governments to support
the energy transition in the Southeast Asian region. The donors blend and align funding with the
ETP for capacity building and technical assistance. The ETP also supports coordination and
dialogue to enhance its objectives.
The DOE has been in discussion with UNOPS in pursuit of an MOU that is equally suitable and
acceptable to both parties. In addition, the DOE already transmitted its comments to the proposed
2021 Workplan, which entails four (4) outcomes: (i) strengthened enabling policies; (ii) increased
investment in energy efficiency and renewable; (iii) extended smart grids; and (iv) capacity and
knowledge development.
▪ Japan’s Asia Energy Transition Initiative
The Special Meeting of the ASEAN Ministers on Energy and the Ministry of Economy, Trade, and
Industry of Japan (AMEM-METI) on 21 June 2021 discussed proposal for new initiatives that
support realistic energy transitions in Asia.
The Philippines reported that it has carefully recalibrating the country’s energy policies and
measures to ensure a just energy transition in pursuit of both domestic and regional goals of
attaining a sustainable energy future. As part of this effort, the DOE updated its Clean Energy
Scenario (CES) which envisions the pathway towards a low carbon sustainable energy future.
In line with this mutual objective, the ASEAN member states including the Philippines welcomed
and supported Japan’s Asia Energy Transition Initiative (AETI). The AETI desires to include a
variety of support for the realization of various and pragmatic energy transitions in Asia in the
areas of finance, capacity building, technology development and deployment support, and
knowledge sharing.
▪ Hydrogen Initiative
In accordance with the government’s thrust to ensure energy security and sustainability, the DOE
considers adoption of emerging clean energy technologies important, such as hydrogen. Thus,
the DOE has established MOUs with Star Scientific Ltd., an Australian-based research and
development company, and with Hydrogen Technology Inc. (HTI) of Japan to explore hydrogen
as a cleaner source of energy for the country

si
Energy Resilience
The Philippine Department of Energy co-chairs the Energy Resiliency Task Force (ERTF) with the United
States with the main objective to promote energy resiliency ins the APEC region anchored on the four
(4) strategic priority sub-themes identified in the Cebu declaration:
▪ Climate-proofing energy infrastructures;

▪ Providing an avenue for cutting-edge energy efficient technologies;
▪ Advocating community-based clean energy use in energy poverty-stricken areas; and,
▪ Improving energy-related trade and investment in APEC.
The ERTF facilitates discussions and exchange of information in support of energy resiliency, policies,
trainings and workshops, innovations, emergency preparedness and contingency plans.
More recently, the Philippines accepted the invitation of Japan as a co-sponsor for the “APEC Energy
Resiliency Enhancement Project,” which is expected to run from January 2022 to 2023. The project
aims to enhance the ability to secure stable energy supply by effectively dealing with disasters and
implementing follow-up actions in the APEC Energy Resiliency Principle. The key activities of this project
are:
▪ Identifying, collecting, and assessing indicators to evaluate energy resiliency in the APEC
economies;
▪ Developing a sectoral guideline focused on energy infrastructure companies, and
▪ holding a workshop for capacity building on energy resilience through dissemination of the
APEC Energy Resiliency Principle.
Access to Sustainable Finance
The DOE will explore funding from various sources to finance important projects and undertakings. The
sources may come from development partners such as but not limited to World Bank, ADB, UN-system,
Japan International Cooperation Agency (JICA), Korean International Cooperation Agency (KOICA),
United States Agency for International Development (USAID), and the available funds from APEC and
ASEAN.
The development partners normally have priority thrusts in funding programs and projects where the
DOE can present energy programs and projects requiring funding support in a Donors’ Forum or the
Development Partners Forum. During the forum, prepared concept notes are presented, and matching
is done based on the thrusts of the development partners. The DOE prioritizes the proposals to be
offered to willing donors.
The DOE has also been exploring funding from APEC and ASEAN that usually course through call for
proposals of the ASEAN SSNs, the EWG Experts Groups and ASEAN/APEC Secretariat. The DOE shall
implement firmer schedule on call for proposals from all possible funding sources to increase and
improve batting average of approval.

ANNEXES
Annex 1. Biodiesel Additional Production Capacity and Investment Requirements

Annex 2. Bioethanol Additional Production Capacity and Investment Requirements
Annex 3. Biomass Energy Service Contracts (As of December 2020)
Annex 4. Geothermal Energy Service Contracts (As of December 2020)
Annex 5. Hydropower Service Contracts (As of December 2020)
Annex 6. Solar Energy Service Contracts (As of December 2020)
Annex 7. Wind Energy Service Contracts (As of December 2020)
Annex 8. Completed Transmission Projects, 2019-2020
Annex 9. Proposed Transmission Projects, 2021-2025
Annex 10. Proposed Transmission Projects, 2026-2030
Annex 11. DUs with a Certificate of Exemption from the Conduct of Competitive Selection
Process (CSP), as of December 2020
Annex 12. Capacity Additions (MW), Reference Scenario (REF)
Annex 13. Capacity Additions (MW), Clean Energy Scenario (CES)
Annex 14. Investment Requirements for Generation Projects (PhP Million) at 2020 Prices, REF
Annex 15. Investment Requirements for Generation Projects (PhP Million) at 2020 Prices, CES
Annex 16. Total Final Energy Consumption, By Sector, Reference Scenario (MTOE)
Annex 17. Total Final Energy Consumption, By Sector, Clean Energy Scenario (MTOE)
Annex 18. Total Final Energy Consumption, By Fuel, Reference Scenario (MTOE)
Annex 19. Total Final Energy Consumption, By Fuel, Clean Energy Scenario (MTOE)
Annex 20. Electricity Sales Forecast, 2020-2040, GWh
Annex 21. Peak Demand Forecast, 2020-2040, MW
Annex 22. Installed Generating Capacity, Reference Scenario (GW)
Annex 23. Installed Generating Capacity, Clean Energy Scenario (GW)
Annex 24. Power Generation, Reference Scenario (Terawatt-hour, TWh)
Annex 25. Power Generation, Clean Energy Scenario (Terawatt-hour, TWh)
Annex 26. Fuel Input to Power Generation, Reference Scenario (MTOE)
Annex 27. Fuel Input to Power Generation, Clean Energy Scenario (MTOE)
Annex 28. Total Primary Energy Supply, Reference Scenario (MTOE)
Annex 29. Total Primary Energy Supply, Clean Energy Scenario (MTOE)
Annex 30. Greenhouse Gas Emission (GHG), By Fuel, Reference Scenario (MTCO2e)
Annex 31. Greenhouse Gas Emission (GHG), By Fuel, Clean Energy Scenario (MTCO2e)
Annex 32. Greenhouse Gas Emission (GHG), By Sector, Reference Scenario (MTCO2e)
Annex 33. Greenhouse Gas Emission (GHG), By Sector, Clean Energy Scenario (MTCO2e)
Annex 34. Total Indigenous Energy Supply, Reference Scenario (MTOE)
Annex 35. Total Indigenous Energy Supply, Clean Energy Scenario (MTOE)
Annex 36. Net Imported Energy, Reference Scenario (MTOE)
Annex 37. Net Imported Energy, Clean Energy Scenario (MTOE)

ANNEXES
Annex 1. BIODIESEL ADDITIONAL PRODUCTION CAPACITY AND INVESTMENT REQUIREMENTS*
Capacity Addition
Year Demand (ML) (MLPY) PhP Million
Rate) Generation
@2020 Prices
(MLPY)
2020 184.43 184.43 707.90 707.90 - - - - - -
2021 197.41 196.59 707.90 707.90 - - - - -
2022 208.27 321.02 707.90 707.90 - - - - -
2023 222.12 538.53 707.90 707.90 - - - - -
2024 236.14 570.47 707.90 713.09 - - - 24.50 - 5
2025 249.56 590.38 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2026 263.93 624.33 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2027 281.61 660.84 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2028 300.71 699.81 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2029 321.19 742.55 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2030 343.14 791.23 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2031 365.96 842.69 707.90 1,086.78 - 378.88 - 1,790.30 - 394
2032 389.74 896.13 707.90 1,120.16 - 412.26 - 1,948.04 - 429
2033 414.45 951.45 707.90 1,189.31 - 481.41 - 2,274.77 - 501
2034 440.09 1,008.58 707.90 1,260.73 - 552.83 - 2,612.25 - 575
2035 465.93 1,065.54 707.90 1,331.93 - 624.03 - 2,948.69 - 650
2036 494.05 1,127.82 707.90 1,409.77 - 701.87 - 3,316.51 - 731
2037 522.42 1,189.88 707.90 1,487.35 - 779.45 - 3,683.07 - 811
2038 551.57 1,253.14 707.90 1,566.42 - 858.52 - 4,056.71 - 894
2039 581.47 1,317.43 726.84 1,646.79 18.94 938.89 89.49 4,436.49 20 977
2040 613.62 1,386.43 767.03 1,733.04 59.13 1,025.14 279.39 4,844.01 62 1,067
*Cumulative

ANNEXES
Annex 2. BIOETHANOL ADDITIONAL PRODUCTION CAPACITY AND INVESTMENT REQUIREMENTS*
Capacity
Total Capacity Addition (80% Investment Cost PhP Jobs
Year Demand (ML)
(MLPY) Utilization Rate) Million @2020 Prices Generation
(MLPY)
2020 579.30 579.30 380.50 380.50 - - - - - -
2021 621.36 619.12 776.70 773.89 396.20 393.39 20,554.26 20,408.79 2,239 2,223
2022 638.14 634.64 797.68 793.30 417.18 412.80 21,642.49 21,415.26 2,357 2,332
2023 678.86 650.91 848.57 813.64 468.07 433.14 24,283.03 22,470.60 2,645 2,447
2024 732.23 699.58 915.28 874.47 534.78 493.97 27,743.86 25,626.61 3,022 2,791
2025 798.01 755.32 997.51 944.15 617.01 563.65 32,009.73 29,241.45 3,486 3,185
2026 850.32 807.02 1,062.89 1,008.78 682.39 628.28 35,401.71 32,594.10 3,856 3,550
2027 911.72 862.74 1,139.65 1,078.43 759.15 697.93 39,383.54 36,207.61 4,289 3,943
2028 983.30 930.17 1,229.13 1,162.72 848.63 782.22 44,025.60 40,580.29 4,795 4,420
2029 1,061.05 1,003.35 1,326.32 1,254.19 945.82 873.69 49,067.72 45,325.65 5,344 4,936
2030 1,145.37 1,083.41 1,431.71 1,354.26 1,051.21 973.76 54,535.26 50,517.36 5,939 5,502
2031 1,233.73 1,167.44 1,542.16 1,459.30 1,161.66 1,078.80 60,265.25 55,966.79 6,563 6,095
2032 1,326.28 1,255.04 1,657.85 1,568.80 1,277.35 1,188.30 66,267.09 61,647.20 7,217 6,714
2033 1,423.03 1,346.05 1,778.78 1,682.56 1,398.28 1,302.06 72,541.00 67,549.20 7,900 7,357
2034 1,524.08 1,440.40 1,905.10 1,800.51 1,524.60 1,420.01 79,094.37 73,667.98 8,614 8,023
2035 1,622.29 1,530.44 2,027.87 1,913.05 1,647.37 1,532.55 85,463.24 79,506.59 9,308 8,659
2036 1,739.21 1,638.21 2,174.02 2,047.76 1,793.52 1,667.26 93,045.20 86,495.35 9,420
10,133
2037 1,854.02 1,741.73 2,317.53 2,177.17 1,937.03 1,796.67 100,490.38 93,208.58 10,944 10,151
2038 1,973.11 1,847.26 2,466.39 2,309.07 2,085.89 1,928.57 108,213.33 100,051.78 11,785 10,896
2039 2,096.41 1,954.17 2,620.52 2,442.72 2,240.02 2,062.22 116,209.04 106,984.99 12,656 11,652
2040 2,225.58 2,063.47 2,781.98 2,579.34 2,401.48 2,198.84 124,585.37 114,072.62 13,568 12,423
*Cumulative
Assumption if all bioethanol supply requirement is to be produced locally.

ANNEXES
Annex 3. BIOMASS ENERGY SERVICE CONTRACTS

ANNEXES
Annex 4. GEOTHERMAL ENERGY SERVICE CONTRACTS

ANNEXES
Annex 5. HYDROPOWER SERVICE CONTRACTS

ANNEXES
Annex 6. SOLAR ENERGY SERVICE CONTRACTS

ANNEXES
Annex 7. WIND ENERGY SERVICE CONTRACTS

ANNEXES
Annex 8. LIST OF COMPLETED TRANSMISSION PROJECTS (2019-2020)

Date of
Project Name/Components MVA MVAR CKT-KM Completion/
Energization
LUZON
Hermosa–Floridablanca 69 kV Transmission Line - - 17 Feb 2019
San Jose 500 kV Substation (4th Bank) 750 - - Apr 2019
North Luzon Substation Upgrading Project 1 – 300 - - Oct 2019
Malaya Substation
Luzon Voltage Improvement Project 3, Stage 1
· Cabanatuan Substation (Capacitor Bank 2) - 50 - Mar 2019
· Cabanatuan Substation (Capacitor Bank 1) - 25 - Oct 2019
· Tuguegarao Substation (Capacitor Bank 1) - 200 - Mar 2019
· San Jose Substation (Capacitors Banks 5 & 6) - 200 - Mar 2019
· Mexico Substation (Capacitor Banks 3 & 7) - 25 - Apr 2019
· Tuguegarao Substation (Power Shunt Reactor) - 90 - Aug 2019
· Nagsaag Substation (Shunt Reactor) - 7.5 - Aug 2019
· Bantay Substation (Capacitor Bank) - 25 - Sep 2019
· Laoag Susbtation (Shunt Reactor) - 50 - Sep 2019
· Laoag Substation (Capacitor Banks) - 50 Sep 2019
Luzon Voltage Improvement Project 4, Stage 1
· Biñan Substation (Capacitor Bank 3 & 4) - 200 - Apr 2019
· Dasmariñas Substation (Capacitor Bank 3 & 4) - 200 - Apr 2019
Tower Structure Upgrading of Bicol Transmission
Facilities (formerly Permanent Restoration Works
of Toppled Towers by Typhoon Nina)
· Naga–Tiwi C Transmission Line 2 (36 Towers) - - - Apr 2019
Luzon Voltage Improvement Project 3
· Mexico Substation - 100 - Mar 2020
Luzon Voltage Improvement Project 3
· Mexico Substation - 200 - Aug 2020
San Jose–Quezon 230 kV Line 3 - - 19.5 Nov 2020
San Manuel–Nagsaag 230 kV Substation and Tie 600 - 0.6 Dec 2020
Line
VISAYAS
Visayas Voltage Improvement Project, Stage 1
· Compostela Substation - 40 - Dec 2019
· Corella Substation - 15 - Dec 2019
Visayas Substation Reliability Project 1
· Maasin Substation 50 - - Feb 2020
Bagolibas Substation 50 - - Mar 2020
Visayas Voltage Improvement Project
· Cebu Substation - 40 - Mar 2020
San Carlos-Guihulngan Transmission Line - - 58 Aug 2020
New Naga Substation (Colon Substation) 100 - - Dec 2020

ANNEXES
Annex 8. LIST OF COMPLETED TRANSMISSION PROJECTS (2019-2020)

Date of
Project Name/Components MVA MVAR CKT-KM Completion/
Energization
MINDANAO
Matanao–Toril–Bunawan 230kV Transmission - - 38 Dec 2019
Line
Mindanao 230 kV Backbone, Stage 1
· Bunawan Substation 600 - - Oct 2019
· Toril Substation 600 - - Nov 2019
· Culaman Substation 50 - - Dec 2019
Balo-i–Kauswagan–Aurora 230 kV Substation 300 - - Jun 2019
Phase 1
Mindanao 230 kV Backbone, Stage 2
· Villanueva Substation 600 - - Nov 2019
· Villanueva Substation (Shunt Reactor) - 70 - Sep 2019
Mindanao Substation Reliability Project 1
· Maco Substation (Capacitor Bank 3) - 7.5 - Oct 2019
· Nabunturan (Capacitor Bank 5) 7.5 - Oct 2019
Mindanao Substation Upgrading Project 1
· Pitogo Substation (Capacitor Banks 3 & 4) - 15 - Dec 2019
· Butuan Substation (Capacitor Banks 4 & 5) 22.5 Oct 2019
· Placer Substation (Capacitor Banks 2 & 3) - 15 - Oct 2019
· San Francisco Substation (Capacitor Banks 22.5 Oct 2019
1, 2, & 3)
· Gen. Santos Substation (Capacitor Bank 4) - 7.5 - Oct 2019
· Tacurong Substation (Capacitor Bank 4) 7.5 Nov 2019
Matanao-Toril 230 kV Transmission Line - - 38 Jan 2020
Sultan Kudarat (Nuling) Substation Capacitor - 15 - Jul 2020
Butuan–Placer Transmission Line Project - - 96.4 Oct 2020
Schedule I & II
Toril–Bunawan Transmission Line Project - - 84 Nov 2020
Mindanao Substation Upgrading Project
· Placer Substation 100 - - Dec 2020
Total 4100 1707.5 351.5

ANNEXES
Annex 9. PROPOSED TRANSMISSION PROJECTS (2021-2025)

Estimated Time of
Name of Project
Completion (ETC)
LUZON
Santiago–Magat 230 kV Transmission Line Recoductoring Project Dec 2022
Malaya 230 kV Collector Station Project Dec 2022
Concepcion–Sta. Ignacia 69 kV Transmission Line Aug 2022
Nagsaag–Tumana 69 kV Transmission Lin Aug 2022
North Luzon Substation Upgrading 2 Oct 2022
Pinili 230 kV Substation May 2023
San Simon 230 kV Substation May 2023
South Luzon Substation Upgrading Project 2 Dec 2023
Porac 230 kV Substation Dec 2023
Pinamucan 500 kV Substation Jun 2024
Pagbilao–Tayabas 500 kV Transmission Lin Mar 2025
Marilao 500 kV Substation July 2024
Abuyog 230 kV Substation Feb 2024
Tuguegarao–Enrile 69 kV Transmission Line Oct 2024
Castillejos 230 kV Substation Feb 2024
Tanauan 230 kV Substation Aug 2025
Sampaloc 230 kV Substation Dec 2025
Luzon Voltage Improvement Project 5 Dec 2025
Capas 230 kV Substation Oct 2025
Tower Resiliency of Bicol Transmission Facilities Dec 2025
Western Luzon 500 kV Backbone (Stage 2) Dec 2025
Taguig–Taytay 230 kV Transmission Line Dec 2026
VISAYAS
Cebu–Negros–Panay 230kV Backbone Project - Stage 2 Dec 2021
Permanent Restoration of Panitan–Nabas 138 kV Line affected by Typhoon Ursula Aug 2021
Permanent Restoration of Colon– Samboan 138 kV Lines 1 and 2 affected by Landslide June 2021
Visayas Substation Upgrading Project 1 Nov 2021
Panay–Guimaras 138 kV Interconnection Project Oct 2022
Nabas–Caticlan– Boracay Transmission Line Project Jun 2022
Cebu–Bohol 230 kV Interconnection Project Sept 2022
Lapu-lapu 230 kV Substation Project Dec 2022
Negros–Panay 230 kV Interconnection Line 2 Project Mar 2023
Visayas Substation Upgrading Project 2 Mar 2023
Barotac Viejo– Natividad 69 kV Transmission Line Project Oct 2023
Banga 138 kV Substation Project Dec 2024
Amlan–Dumaguete 138 kV Transmission Project Feb 2025
Babatngon–Palo 230 kV Transmission Line Oct 2025
Calbayog–Allen 138 kV Transmission Line Project Nov 2025
MINDANAO
Zamboanga Peninsula Voltage Improvement Project Dec 2022
Laguindingan 230 kV Substation Project Jun 2023
Mindanao Substation Expansion 4 Project (MSE4P) Jun 2023
Nasipit Substation Bus-In Project Jun 2023
Mindanao Substation Upgrading 2 Project (MSU2P) June 2023
Sultan Kudarat – Pinaring 69 kV Line Upgrading Project Dec 2023
San Francisco – Tago 138 kV Transmission Line Project Dec 2023
Mindanao Substation Expansion 3 Project (MSE3P) Jul 2025
Kabacan 138 kV Substation Project Sep 2025
Mindanao Substation Expansion 3 Project (MSE3P) Jul 2025
Maco – Mati 138 kV Transmission Line Project Aug 2025
Eastern Mindanao Voltage Improvement Project (EMVIP) Dec 2025
Polanco – Oroquieta 138 kV Transmission Line Project (Initially energized at 69 kV) Apr 2028

ANNEXES

Estimated Time of
Name of Project
Completion (ETC)
LUZON
Nagsaag–Santiago 500 kV Transmission Line Aug 2027
Tuy 500/230 kV Substation (Stage 2) Oct 2027
Northern Luzon 230 kV Loop Dec 2027
La Trinidad–Sagada 230 kV Transmission Line Dec 2028
Palauig 500 kV Substation Dec 2027
Cabanatuan– Sampaloc–Nagsaag 230 kV Transmission Line Feb 2028
Luzon–Visayas HVDC Bipolar Operation Apr 2028
Bolo–Balaoan 500 kV Transmission Line Apr 2028
Balaoan–Laoag 500 kV Transmission Line Apr 2028
Bolo 5th Bank Dec 2028
Pinamucan–Tuy 500 kV Line Jan 2029
Tagkawayan 500 kV Substation Dec 2028
Load Growth
North Luzon 69 kV Transmission Line Upgrading 1 Mar 2021
South Luzon 69 kV Transmission Line Upgrading 1 Jun 2021
Marilao 500 kV Substation Expansion Dec 2026
Taguig EHV Substation Expansion Dec 2027
Plaridel 230 kV Substation Feb 2026
Luzon Voltage Improvement Project 6 Mar 2026
Kawit 230 kV Substation May 2026
Silang 500 kV Substation Feb 2027
Daraga–Bitano 69 kV Transmission Line June 2027
Dasol 230 kV Substation Dec 2027
Magalang 230 kV Substation Dec 2027
San Agustin 230 kV Substation Dec 2027
Apalit 230 kV Substation Dec 2027
San Fabian 230 kV Substation Mar 2028
Valenzuela 230 kV Substation Dec 2030
Iriga 230 kV Substation Dec 2028
Malvar 230 kV Substation Dec 2028
Balanga 230 kV Substation Dec 2028
San Isidro 230 kV Substation Dec 2028
FBGC 230 kV Substation Dec 2028
Baler 230 kV Substation Project Feb 2029
Guagua 230 kV Substation Dec 2028
San Antonio 500 kV Substation Dec 2030
Alaminos EHV Substation Dec 2030
Nuvali 230 kV Substation Dec 2030
Cabatuan 230 kV Substation Dec 2030
Minuyan 115 kV Switching Station Feb 2026
Taguig–Silang 500 kV Transmission Line Dec 2027
Marilao–Mexico 230 kV Transmission Line Aug 2027
San Jose–San Rafael 230 kV Transmission Line Upgrading Oct 2027
Bauang–La Trinidad 230 kV Transmission Line Upgrading Dec 2027
Olongapo 230 kV Substation Upgrading Mar 2028
Mexico–Clark 69 kV Transmission Line Upgrading Apr 2028
Cabanatuan–San Rafael–Mexico 230 kV Transmission Line Upgrading Apr 2028
Bauang–Balaoan 230 kV Transmission Line Upgrading Dec 2028
Hermosa–Mexico 230 kV Transmission Line Upgrading Dec 2028
Calaca–Salong 230 kV Transmission Line 2 Dec 2028
Baras 500 kV Substation Feb 2029
Pasay–Taguig 230 kV Transmission Line Dec 2030
Navotas–Pasay 230 kV Transmission Line Dec 2030
Naga–Presentacion 230 kV Transmission Line Dec 2030
Baras–San Antonio 500 kV Transmission Line Dec 2030
Baras–Pinamucan 500 kV Transmission Line Dec 2030
Limay–Pasay 230 kV Transmission Line Dec 2030

ANNEXES

Luzon Voltage Improvement Project 7 Dec 2027
VISAYAS
Laray 230 kV Substation Project (Initially energized at 138 kV Nov 2026
Sumangga 138 kV Substation Project May 2027
Granada 230 kV Substation Project Sep 2027
Tigbauan 138 kV Substation Project Sep 2027
Carmen 230 kV Substation Project Sept 2028
La Carlota 138 kV Substation Project Oct 2028
San Isidro–Catarman 138 kV Transmission Line Project Dec 2028
Bool 138 kV Substation Project June 2029
Laray–Cordova 230 kV Interconnection Project June 2029
Sipalay 138 kV Substation Project Dec 2029
Laray–Alpaco 230 kV Energization Project Dec 2030
Luzon–Visayas HVDC Bipolar Operation Project Apr 2028
Corella–Ubay 138 kV Line 2 Stringing Project Sep 2028
Barotac Viejo–Unidos 230 kV Transmission Line Project Nov 2028
Panay–Guimaras 138 kV Interconnection Line 2 Project Sep 2026
Nivel Hills 230 kV Substation Project Apr 2027
Tabango–Biliran 69 kV Transmission Line Project Jun 2027
Siaton–Bayawan 138 kV Transmission Line (Initially energized at 69 kV Dec 2027
Visayas Substation Upgrading Project 3 Dec 2027
Taft–Bobolosan 138 kV Transmission Line Project (Initially energized at 69 kV) Dec 2028
Cebu–Leyte 230 kV Interconnection Lines 3 and 4 Project May 2029
Babatngon–Sta. Rita 138 kV Transmission Line Upgrading Jun 2029
Kananga–Babatngon 230 kV Transmission Line Project Nov 2029
Bayawan–Sipalay 138 kV Transmission Line (Initially energized at 69 kV) Dec 2030
Visayas Voltage Improvement Project 2 Jun 2027
Visayas Voltage Improvement Project 3 Dec 2027
MINDANAO
Nasipit–Butuan 69 kV Transmission Line Project Jan 2026
Placer – Luna 69 kV Transmission Line Project Dec 2026
Opol – Carmen 69 kV Transmission Line Project Dec 2026
Davao – Toril 69 kV Transmission Line 2 Project Dec 2026
Villanueva – Kinamlutan 230 kV Transmission Line Project Jan 2027
Koronadal 138 kV Substation Project Aug 2027
Agus 6 – Kiwalan – Lugait 69 kV Transmission Line Project Oct 2027
Tigbao 138 kV Substation Project Dec 2027
Maco – Tagum 69 kV Transmission Line Project Dec 2027
Naga Min – Pangi 69 kV Transmission Line Project Dec 2027
Marawi – Malabang 69 kV Transmission Line Project Dec 2027
Tumaga 138 kV Substation Project May 2028
Naga Min – Salug 138 kV Transmission Line Project (Initially energized at 69 kV) Jul 2028
Midsayap 138 kV Substation Project Dec 2028
Nabunturan – Monkayo 69 kV Transmission Line Project Dec 2029
Matanao 230/138 kV Transformer Project Dec 2030
Placer – Madrid 69 kV Transmission Line Projec Dec 2030
Mindanao Substation Expansion 5 Project (MSE5P Dec 2030
Sultan Kudarat – Tacurong 230 kV Transmission Line Project (Initially energized at 138 kV) Oct 2026
Eastern Mindanao 230 kV Transmission Line Project (Initially energized at 138 kV) Aug 2027
Opol Substation Bus-in Project Sep 2027
Lala – Naga Min – Zamboanga 230 kV Transmission Line Project Jul 2029
Lala–Malabang– Sultan Kudarat 230 kV Transmission Line Project Dec 2030
Siom – Sindangan – Salug 69 kV Transmission Line Project Dec 2030
Davao – Samal 69 kV Interconnection Dec 2030
Zamboanga – Basilan 69 kV Interconnection Dec 2030

ANNEXES
Annex 11. LIST OF DUs GRANTED WITH EXEMPTION FROM THE CONDUCT OF CSP (as of Dec 2020)
DU CSP Exemption Date Approved
Iloilo II Electric Cooperative, Inc. (ILECO II) Renewal of CSEE with PSALM 9-Jan-2020
Manila Electric Company (MERALCO) Negotiated procurement of PSA with PEDC 15-Jan-2020
Manila Electric Company (MERALCO) Extension of PSA with MEI 6-Feb-2020
CSEE with PSALM for two years with a
Cebu I Electric Cooperative, Inc (CEBECO I) 6-Feb-2020
capacity of 7 MW
CSEE with PSALM with the ff capacity:
Samar II Electric Cooperative, Inc (SAMELCO - January-Feb. – 10 MW
6-Feb-2020
II) - March-August – 18 MW
- Sept. – Dec. – 5 MW
CSEE with PSALM with a contracted capacity
Biliran Electric Cooperative, Inc. (BILECO) 6-Feb-2020
of 10 MW
CSEE with PSALM with the ff capacity:
Leyte IV Electric Cooperative, Inc. (LEYECO - January-Feb. – 12 MW
6-Feb-2020
IV) - March-August – 20 MW
CSEE with PSALM for the ff. capacity:
Northern Samar Electric Cooperative, Inc.
- January – August – 20 MW 6-Feb-2020
(NORSAMELCO)
Nueva Ecija I Electric Cooperative, Inc.
Extension of 31 MW PSA with APRI 6-Feb-2020
(NEECO I)
Eastern Samar Electric Cooperative, Inc CSEE with PSALM for the following capacity:
6-Feb-2020
(ESAMELCO) 15 MW-26 December 2019 – 25 August 2020
Bantayan Island Electric Cooperative, Inc.
Emergency Procurement of 3MW 19-Feb-2020
(BANELCO)
Southern Leyte Electric Cooperative, Inc.
17 MW-26 December 2019 – 25 August 2020 2-Mar-2020
(SOLECO)
10 MW-26 August 2020 –25 December 2020
Leyte V Electric Cooperative, Inc.
17 MW-26 December 2020 – 25 August 2021 2-Mar-2020
(LEYECO V)
19 MW-26 August 2021 –25 December 2022
Don Orestes Romualdez Electric Cooperative, - January – February – 13MW
02 March 2020
Inc. (DORELCO) - March – August – 15MW
- September – Dec. -7MW
Leyte II Electric Cooperative, Inc
CSEE with PSALM for the 25 MW 18-Mar-2020
(LEYECO II)
CSEE with PSALM
Bohol II Electric Cooperative, Inc. (BOHECO II) 12MW-26 Dec.2019 – 25 Aug.2020 18-Mar-2020
5MW-26 Aug.2020 – 25 Dec.2020
Negotiated Emergency Procurement for the
Basilan Electric Cooperative, Inc. (BASELCO) 19-Mar-2020
2.5 MW
Zamboanga City Electric Cooperative, Inc.
18 MW Modular GenSets 21-Apr-2020
(ZAMCELCO)
CSEE with PSALM
Samar I Electric Cooperative, Inc. (SAMELCO January – February = 12 MW
22-Apr-2020
I) March – August = 15MW
Sept. – Dec. = 7MW
MORE Electric and Power Corp. (MEPC) 10 MW emergency PSA with APRI 24-Apr-2020
Oriental Mindoro Electric Cooperative, Inc.
10 MW emergency power procurement 6-May-2020
(ORMECO)
Leyte III Electric Cooperative, Inc. (LEYECO III) Extension of CSEE with PSALM – 7MW 6-May-2020
Misamis Oriental I Rural Electric Cooperative, Extension of CSEE with PSALM – 3MW firm
20-Jun-2020
Inc. (MORESCO I) contract
Occidental Mindoro Electric Cooperative, Inc.
Emergency procurement of 29 MW 26-Jun-2020
(OMECO)
Tablas Island Electric Cooperative, Inc.
Emergency Power Procurement – 1.545 MW 7-Jul-2020
(TIELCO)

ANNEXES
Annex 11. LIST OF DUs GRANTED WITH EXEMPTION FROM THE CONDUCT OF CSP (as of Dec 2020)
Guimaras Electric Cooperative,Inc.
CSEE with PSALM - 2.5 MW 14-Jul-2020
(GUIMELCO)
Capiz Electric Cooperative, Inc.(CAPELCO) CSEE with PSALM – 6 MW 5-Aug-2020
CSEE with PSALM Corporation
March – April –5 MW
May – 6 MW
Bohol Light Company Inc. (BLCI) June – 7 MW 14-Aug-2020
July – August – 8 MW
September – October – 4 MW
November – December – 3 MW
Pampanga II Electric Cooperative, Inc. (PELCO
CSEE with PSALM Corporation – 40MW 3-Nov-2020
II)
Emergency procurement of 10 MW with
Iloilo 1 Electric Cooperative, Inc. (ILECO I) 4-Nov-2020
PCPC
Emergency procurement of 62 MW and 20
MORE Electric and Power Corp. (MEPC) 4-Nov-2020
MW with PPC
CSEE with PSALM
Davao Light and Power Company (DLPC) 23-Dec-2020
141.919 MW or 872,065.471 MWh

264
Annex 12. CAPACITY ADDITIONS (MW), REFERENCE SCENARIO
ANNEXES
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTAL
Coal 1,636 - - - 1,005 - - - - - - - - - - - - - - - 2,641
Oil-Based 381 - - - - - - - - - - - - - - - - - - - 381
Natural Gas - - 650 - 40 1,100 - 60 500 1,220 1,200 1,600 1,620 1,560 1,920 1,400 2,100 1,960 1,920 1,960 20,810
Geothermal - - - - 150 200 50 - - - - - - - - - - 10 50 20 480
Hydro 32 28 7 15 - - 260 560 405 680 435 800 465 855 990 905 1,115 1,285 1,335 1,475 11,647
Biomass 62 - - 154 - - - - - - - - - - - - - - 45 45 306
Solar 240 21 2,406 2,489 2,396 2,448 2,715 1,586 2,154 2,184 1,606 1,090 2,194 1,378 1,186 1,299 1,510 1,088 807 774 31,571
Wind 132 0 0 0 0 16 150 140 298 36 150 21 0 15 84 148 6 102 139 147 1,584
Total 2,483 49 3,063 2,657 3,591 3,764 3,175 2,346 3,357 4,120 3,391 3,511 4,279 3,808 4,180 3,752 4,731 4,445 4,296 4,421 69,420
Annex 13. CAPACITY ADDITIONS (MW), CLEAN ENERGY SCENARIO

2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTAL
Coal 1,636 0 0 0 1,005 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2,641
Oil-Based 381 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 381
Natural Gas 0 0 650 0 40 1,100 0 60 900 1,000 1,240 1,340 1,500 1,360 1,700 800 860 840 840 1,200 15,430
Geothermal 0 0 0 0 150 200 50 0 0 0 0 0 0 0 0 50 30 0 0 0 480
Hydro 32 28 7 15 0 0 180 600 400 725 400 800 520 980 1,275 1,330 1,700 2,145 2,460 2,800 16,397
Biomass 62 0 0 154 0 0 0 0 0 0 0 0 0 0 45 45 45 45 45 45 486
Solar 240 21 2,406 2,489 2,396 2,431 2,883 1,462 2,135 2,091 2,947 2,566 3,145 2,698 2,373 2,966 2,702 2,418 2,385 2,364 45,118
Wind 132 0 0 0 0 28 150 146 300 7 150 150 207 163 150 1,164 1,771 1,903 2,342 2,624 11,387
Total 2,483 49 3,063 2,657 3,591 3,759 3,263 2,268 3,735 3,823 4,737 4,856 5,372 5,201 5,543 6,355 7,108 7,351 8,072 9,033 92,320
Annex 14. INVESTMENT REQUIREMENTS FOR GENERATION PROJECTS (PhP Million) at 2020 Prices, REFERENCE SCENARIO
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 TOTAL
Coal 179,960.00 - - - 110,550.00 - - - - - - - - - - - - - - - 290,510.00
Oil-Based 13,334.93 - - - - - - - - - - - - - - - - - - - 13,334.93
Natural Gas - - 32,500.00 - 1,400.00 55,000.00 - 2,100.00 23,500.00 51,700.00 60,000.00 80,000.00 70,700.00 69,600.00 88,200.00 65,000.00 92,500.00 89,600.00 89,200.00 89,600.00 960,600.00
Geothermal - - - - 33,772.50 45,030.00 11,257.50 - - - - - - - - - - 2,251.50 11,257.50 4,503.00 108,072.00
Hydro 7,205.48 6,304.20 1,666.11 3,309.70 - - 58,539.00 126,084.00 91,185.75 153,102.00 97,940.25 180,120.00 104,694.75 192,503.25 222,898.50 203,760.75 251,042.25 289,317.75 300,575.25 332,096.25 2,622,345.24
Biomass 7,737.50 - - 19,200.00 - - - - - - - - - - - - - - 5,625.00 5,625.00 38,187.50
Solar 8,939.91 777.00 88,420.50 90,848.50 86,855.00 88,128.00 97,061.25 56,303.00 75,928.50 76,440.00 55,808.50 37,605.00 75,144.50 46,852.00 40,027.50 43,516.50 50,207.50 35,904.00 26,429.25 25,155.00 1,106,351.41
Wind 8,217.00 0.00 0.00 0.00 0.00 976.00 9,112.50 8,470.00 17,954.50 2,160.00 8,962.50 1,249.50 0.00 885.00 4,935.00 8,658.00 349.50 5,916.00 8,027.25 8,452.50 94,325.25
Total 225,394.82 7,081.20 122,586.61 113,358.21 232,577.50 189,134.00 175,970.25 192,957.00 208,568.75 283,402.00 222,711.25 298,974.50 250,539.25 309,840.25 356,061.00 320,935.25 394,099.25 422,989.25 441,114.25 465,431.75 5,233,726.33
Annex 15. INVESTMENT REQUIREMENTS FOR GENERATION PROJECTS (PhP Million) at 2020 Prices, CLEAN ENERGY SCENARIO

2,021.00 2,022.00 2,023.00 2,024.00 2,025.00 2,026.00 2,027.00 2,028.00 2,029.00 2,030.00 2,031.00 2,032.00 2,033.00 2,034.00 2,035.00 2,036.00 2,037.00 2,038.00 2,039.00 2,040.00 TOTAL
Coal 179,960.00 - - - 110,550.00 - - - - - - - - - - - - - - - 290,510.00
Oil-Based 13,334.93 - - - - - - - - - - - - - - - - - - - 13,334.93
Natural Gas - - 32,500.00 - 1,400.00 55,000.00 0.00 2,100.00 43,500.00 45,000.00 61,400.00 63,900.00 67,500.00 64,600.00 82,500.00 40,000.00 42,100.00 41,400.00 41,400.00 60,000.00 744,300.00
Geothermal - - - - 33,772.50 45,030.00 11,257.50 - - - - - - - - 11,257.50 6,754.50 - - - 108,072.00
Hydro 4,531.62 3,964.80 1,047.84 2,081.52 - - 25,488.00 84,960.00 56,640.00 102,660.00 56,640.00 113,280.00 73,632.00 138,768.00 180,540.00 188,328.00 240,720.00 303,732.00 348,336.00 396,480.00 2,321,829.78
Biomass 7,737.50 - - 19,200.00 - - - - - - - - - - 5,625.00 5,625.00 5,625.00 5,625.00 5,625.00 5,625.00 60,687.50
Solar 8,939.91 777.00 88,420.50 90,848.50 86,855.00 87,516.00 103,067.25 51,901.00 75,258.75 73,185.00 102,408.25 88,527.00 107,716.25 91,732.00 80,088.75 99,361.00 89,841.50 79,794.00 78,108.75 76,830.00 1,561,176.41
Wind 8,217.00 - - - - 1,708.00 9,112.50 8,833.00 18,075.00 420.00 8,962.50 8,925.00 12,264.75 9,617.00 8,812.50 68,094.00 103,160.75 110,374.00 135,250.50 150,880.00 662,706.50
Total 222,720.97 4,741.80 121,968.34 112,130.02 232,577.50 189,254.00 148,925.25 147,794.00 193,473.75 221,265.00 229,410.75 274,632.00 261,113.00 304,717.00 357,566.25 412,665.50 488,201.75 540,925.00 608,720.25 689,815.00 5,762,617.13
Annex 16. TOTAL FINAL ENERGY CONSUMPTION, By Sector, Reference Scenario (in Million Tons of Oil Equivalent, MTOE)
Actual Outlook Average Average Annual Growth Rates (%)

Sector Shares % (2020-
2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Agriculture 0.35 0.40 0.45 0.52 0.44 0.47 0.44 0.45 0.48 0.50 0.53 0.56 0.60 0.64 0.69 0.73 0.77 0.82 0.86 0.91 0.96 1.02 1.08 1.15 1.22 1.31 1.36 1.37 4.92 5.89 5.81 5.86
Industry 6.53 6.75 7.45 7.93 7.52 7.31 6.21 6.61 7.00 7.47 7.93 8.44 9.01 9.64 10.29 11.00 11.77 12.59 13.47 14.40 15.37 16.40 17.48 18.61 19.79 21.02 22.32 21.15 6.32 6.61 6.69 6.61
Services 3.40 3.37 3.86 4.40 4.67 4.94 4.61 4.93 5.31 5.60 6.07 6.46 6.88 7.32 7.78 8.26 8.78 9.33 9.90 10.50 11.12 11.76 12.43 13.12 13.83 14.55 15.30 15.53 7.13 6.65 6.44 6.18
Households 8.49 8.73 9.03 9.19 9.43 9.71 10.03 10.15 10.28 10.44 10.53 10.85 11.22 11.63 12.14 12.70 13.32 13.95 14.58 15.21 15.79 16.42 17.10 17.84 18.63 19.48 20.40 24.52 1.24 2.88 3.34 3.61
Transport 9.13 10.56 11.42 11.82 12.24 12.70 9.84 10.78 11.19 11.95 12.80 13.74 14.60 15.67 16.87 18.18 19.60 21.10 22.68 24.34 26.08 27.82 29.83 31.86 33.97 36.19 38.84 35.19 6.80 7.13 7.17 7.10
Non-Energy 0.60 1.18 1.31 1.61 1.42 1.14 1.26 1.27 1.25 1.23 1.21 1.19 1.18 1.17 1.16 1.15 1.15 1.14 1.14 1.14 1.13 1.13 1.12 1.12 1.11 1.10 1.10 2.25 -1.11 -0.96 -0.75 -0.71
Total 28.51 30.99 33.53 35.47 35.72 36.26 32.39 34.19 35.51 37.19 39.08 41.24 43.47 46.07 48.93 52.03 55.39 58.93 62.63 66.49 70.46 74.56 79.05 83.69 88.56 93.66 99.32 100 4.81 5.51 5.72 5.76
Annex 17. TOTAL FINAL ENERGY CONSUMPTION, By Sector, Clean Energy Scenario (in Million Tons of Oil Equivalent, MTOE)

Sector Shares % (2020-
2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Agriculture 0.35 0.40 0.45 0.52 0.44 0.47 0.44 0.45 0.47 0.50 0.52 0.56 0.59 0.63 0.67 0.71 0.75 0.79 0.84 0.88 0.93 0.98 1.04 1.10 1.17 1.25 1.30 1.38 4.62 5.62 5.55 5.60
Industry 6.53 6.75 7.45 7.93 7.52 7.31 6.21 6.57 6.95 7.40 7.83 8.32 8.86 9.46 10.08 10.75 11.48 12.26 13.08 13.95 14.86 15.82 16.82 17.87 18.96 20.09 21.29 21.33 6.00 6.34 6.44 6.36
Services 3.40 3.37 3.86 4.40 4.67 4.94 4.61 4.89 5.26 5.54 5.99 6.36 6.75 7.17 7.60 8.05 8.54 9.05 9.59 10.14 10.72 11.31 11.93 12.56 13.21 13.87 14.55 15.63 6.75 6.36 6.17 5.92
Households 8.49 8.73 9.03 9.19 9.43 9.71 10.03 10.12 10.24 10.38 10.47 10.77 11.12 11.51 12.00 12.53 13.11 13.71 14.30 14.89 15.42 15.99 16.61 17.28 18.00 18.77 19.60 24.90 1.08 2.72 3.16 3.41
Transport 9.13 10.56 11.42 11.82 12.24 12.70 9.84 10.63 11.07 11.62 12.42 13.07 13.93 14.85 15.91 17.07 18.38 19.79 21.26 22.80 24.41 25.99 27.82 29.63 31.50 33.43 35.52 34.46 5.99 6.45 6.69 6.63
Non-Energy 0.60 1.18 1.31 1.61 1.42 1.14 1.26 1.27 1.25 1.23 1.21 1.19 1.18 1.17 1.16 1.15 1.15 1.14 1.14 1.14 1.13 1.13 1.12 1.12 1.11 1.10 1.10 2.31 -1.11 -0.96 -0.75 -0.71
Total 28.51 30.99 33.53 35.47 35.72 36.26 32.39 33.93 35.24 36.67 38.44 40.27 42.42 44.80 47.42 50.26 53.42 56.74 60.20 63.79 67.46 71.22 75.34 79.56 83.95 88.52 93.35 100 4.38 5.13 5.39 5.44
Annex 18. TOTAL FINAL ENERGY CONSUMPTION, By Fuel, Reference Scenario (in Million Tons of Oil Equivalent, MTOE)

Fuel Shares % (2020-
2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40

Coal 2.42 2.35 2.85 3.16 2.57 2.36 1.63 1.65 1.84 2.02 2.23 2.47 2.74 3.05 3.38 3.75 4.16 4.59 5.06 5.56 6.09 6.65 7.24 7.86 8.50 9.18 9.89 7.45 8.16 9.80 9.82 9.43
Natural Gas 0.08 0.05 0.06 0.05 0.06 0.06 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.07 0.74 0.67 0.65 0.65
Oil Products 12.90 15.04 16.56 17.80 18.17 18.46 16.01 17.15 17.82 18.77 19.85 21.11 22.37 23.89 25.59 27.44 29.44 31.56 33.78 36.13 38.59 41.09 43.88 46.72 49.68 52.78 56.33 53.14 5.51 6.28 6.48 6.49
Biodiesel 0.13 0.15 0.16 0.17 0.17 0.18 0.15 0.16 0.17 0.18 0.19 0.20 0.22 0.23 0.25 0.26 0.28 0.30 0.32 0.34 0.36 0.38 0.40 0.43 0.45 0.48 0.50 0.50 6.37 6.41 6.37 6.19
Bioethanol 0.25 0.28 0.31 0.34 0.35 0.38 0.32 0.35 0.36 0.38 0.41 0.45 0.48 0.51 0.55 0.59 0.64 0.69 0.74 0.80 0.85 0.91 0.97 1.04 1.10 1.17 1.24 1.14 6.03 7.05 7.11 6.96
Electricity 5.45 5.83 6.38 6.69 7.10 7.49 7.16 7.75 8.20 8.71 9.28 9.89 10.54 11.25 12.00 12.82 13.70 14.63 15.62 16.65 17.75 18.91 20.13 21.41 22.77 24.19 25.69 24.54 6.70 6.71 6.69 6.60
Biomass 7.29 7.29 7.21 7.26 7.29 7.33 7.07 7.09 7.09 7.08 7.08 7.09 7.10 7.11 7.12 7.12 7.14 7.12 7.07 6.97 6.77 6.58 6.39 6.19 6.00 5.81 5.63 13.15 0.04 0.10 -0.48 -1.14
Total 28.51 30.99 33.53 35.47 35.72 36.26 32.39 34.19 35.51 37.19 39.08 41.24 43.47 46.07 48.93 52.03 55.39 58.93 62.63 66.49 70.46 74.56 79.05 83.69 88.56 93.66 99.32 100 4.81 5.51 5.72 5.76
Annex 19. TOTAL FINAL ENERGY CONSUMPTION, By Fuel, Clean Energy Scenario (in Million Tons of Oil Equivalent, MTOE)

Fuel Shares % (2020-
2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Coal 2.42 2.35 2.85 3.16 2.57 2.36 1.63 1.64 1.82 2.00 2.20 2.43 2.69 2.99 3.31 3.66 4.05 4.47 4.91 5.38 5.88 6.41 6.96 7.54 8.15 8.78 9.44 7.51 7.82 9.52 9.55 9.17
Natural Gas 0.08 0.05 0.06 0.05 0.06 0.06 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.08 0.40 1.93 1.65 1.50
Petroleum Products 12.90 15.04 16.56 17.80 18.17 18.46 16.01 16.96 17.54 18.12 19.11 20.06 21.27 22.61 24.12 25.76 27.60 29.56 31.61 33.76 36.00 38.24 40.75 43.26 45.85 48.52 51.36 51.91 4.51 5.59 5.97 6.00
Biodiesel 0.13 0.15 0.16 0.17 0.17 0.18 0.15 0.16 0.26 0.44 0.47 0.48 0.51 0.54 0.57 0.61 0.65 0.69 0.73 0.78 0.83 0.87 0.92 0.97 1.03 1.08 1.14 1.12 32.62 15.68 12.40 10.61
Bioethanol 0.25 0.28 0.31 0.34 0.35 0.38 0.32 0.35 0.35 0.36 0.39 0.42 0.45 0.48 0.52 0.56 0.61 0.65 0.70 0.75 0.81 0.86 0.92 0.97 1.03 1.09 1.15 1.12 4.83 6.46 6.69 6.56
Electricity 5.45 5.83 6.38 6.69 7.10 7.49 7.16 7.70 8.13 8.62 9.16 9.74 10.36 11.03 11.74 12.51 13.34 14.22 15.14 16.12 17.15 18.23 19.38 20.59 21.86 23.20 24.62 24.75 6.36 6.43 6.43 6.37
Biomass 7.29 7.29 7.21 7.26 7.29 7.33 7.07 7.09 7.09 7.08 7.08 7.08 7.09 7.10 7.11 7.11 7.13 7.11 7.06 6.95 6.76 6.56 6.37 6.17 5.98 5.79 5.60 13.50 0.02 0.08 -0.50 -1.16
Total 28.51 30.99 33.53 35.47 35.72 36.26 32.39 33.93 35.24 36.67 38.44 40.27 42.42 44.80 47.42 50.26 53.42 56.74 60.20 63.79 67.46 71.22 75.34 79.56 83.95 88.52 93.35 100 4.38 5.13 5.39 5.44
ANNEXES
265
266
ANNEXES
Annex 20. ELECTRICITY SALES FORECAST, 2020-2040, in GWh Annex 21. PEAK DEMAND FORECAST, 2020-2040, in MW
Luzon Visayas Mindanao Philippines Luzon Visayas Mindanao Philippines
Year Year
Low High Low High Low High Low High Low High Low High Low High Low High
2020* 65,908 65,908 13,472 13,472 11,989 11,989 91,369 91,369 2020* 11,103 11,103 2,201 2,201 1,978 1,978 15,282 15,282
2021 72,862 73,368 15,104 15,218 12,437 12,729 100,403 101,315 2021 11,841 11,923 2,394 2,412 2,098 2,147 16,333 16,482
2022 76,226 77,298 15,949 16,192 13,180 13,614 105,355 107,104 2022 12,387 12,561 2,528 2,567 2,223 2,296 17,138 17,424
2023 80,766 81,905 16,982 17,245 14,202 14,670 111,950 113,820 2023 13,125 13,310 2,691 2,733 2,395 2,474 18,211 18,517
2024 85,643 86,854 18,239 18,523 15,319 15,824 119,201 121,201 2024 13,917 14,114 2,891 2,936 2,584 2,669 19,392 19,719
2025 90,882 92,171 19,628 19,934 16,537 17,083 127,047 129,188 2025 14,769 14,978 3,111 3,160 2,789 2,881 20,669 21,019
2026 96,505 97,877 21,071 21,402 17,867 18,457 135,443 137,736 2026 15,683 15,906 3,340 3,392 3,013 3,113 22,036 22,411
2027 102,549 104,012 22,617 22,975 19,321 19,959 144,487 146,946 2027 16,665 16,902 3,585 3,642 3,259 3,366 23,509 23,910
2028 109,035 110,594 24,227 24,615 20,908 21,600 154,170 156,809 2028 17,719 17,972 3,840 3,902 3,526 3,643 25,085 25,517
2029 116,008 117,671 25,985 26,405 22,642 23,391 164,635 167,467 2029 18,852 19,122 4,118 4,185 3,819 3,945 26,789 27,252
2030 123,502 125,277 27,905 28,361 24,538 25,350 175,945 178,988 2030 20,070 20,358 4,423 4,495 4,138 4,275 28,631 29,128
2031 131,373 133,267 29,960 30,453 26,561 27,441 187,894 191,161 2031 21,349 21,657 4,748 4,827 4,480 4,628 30,577 31,112
2032 139,642 141,660 32,151 32,685 28,722 29,674 200,515 204,019 2032 22,693 23,020 5,096 5,181 4,844 5,005 32,633 33,206
2033 148,322 150,470 34,486 35,063 31,024 32,053 213,832 217,586 2033 24,103 24,452 5,466 5,558 5,232 5,406 34,801 35,416
2034 157,433 159,718 36,974 37,597 33,479 34,590 227,886 231,905 2034 25,584 25,955 5,860 5,959 5,646 5,834 37,090 37,748
2035 166,996 169,425 39,624 40,296 36,095 37,293 242,715 247,014 2035 27,138 27,532 6,280 6,387 6,088 6,290 39,506 40,209
2036 177,029 179,609 42,462 43,186 38,882 40,173 258,373 262,968 2036 28,768 29,187 6,730 6,845 6,557 6,775 42,055 42,807
2037 187,549 190,286 45,479 46,259 41,845 43,235 274,873 279,780 2037 30,478 30,923 7,208 7,332 7,057 7,292 44,743 45,547
2038 198,563 201,467 48,684 49,523 44,995 46,490 292,242 297,480 2038 32,268 32,740 7,716 7,850 7,588 7,841 47,572 48,431
2039 210,092 213,169 52,087 52,988 48,339 49,946 310,518 316,103 2039 34,141 34,641 8,255 8,399 8,152 8,423 50,548 51,463
2040 222,155 225,414 55,696 56,664 51,888 53,613 329,739 335,691 2040 36,101 36,631 8,827 8,982 8,751 9,042 53,679 54,655
*Actual Values *Actual Values

Annex 22. INSTALLED GENERATING CAPACITY, Reference Scenario (in Gigawatt, GW)

Energy Source Shares %
(2020-2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Oil 3.48 3.61 3.62 4.15 4.29 4.26 4.24 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 9.47 2.18 0.86 0.58 0.43
Natural Gas 2.86 2.86 3.43 3.45 3.45 3.45 3.45 3.45 3.45 4.10 4.10 4.14 5.24 5.24 5.30 5.80 7.02 8.22 9.82 11.44 13.00 14.92 16.32 18.42 20.38 22.30 24.26 15.96 4.41 7.36 10.25 10.24
Coal 5.71 5.96 7.42 8.05 8.84 10.42 10.94 12.58 12.58 12.58 12.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 26.95 3.54 2.19 1.45 1.09
Renewable 5.90 6.33 6.96 7.08 7.23 7.40 7.62 8.08 8.13 10.55 13.20 15.75 18.41 21.59 23.87 26.73 29.63 31.82 33.73 36.39 38.64 40.90 43.25 45.88 48.37 50.74 53.20 47.63 14.74 14.55 11.86 10.21
Geothermal 1.92 1.92 1.92 1.92 1.94 1.93 1.93 1.93 1.93 1.93 1.93 2.08 2.28 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.34 2.39 2.41 4.46 0.00 1.90 1.26 1.12
Hydro 3.54 3.60 3.62 3.63 3.70 3.76 3.78 3.81 3.84 3.85 3.86 3.86 3.86 4.12 4.68 5.09 5.77 6.20 7.00 7.47 8.32 9.31 10.22 11.33 12.62 13.95 15.43 12.08 0.54 4.32 6.20 7.29
Wind 0.28 0.43 0.43 0.43 0.43 0.43 0.44 0.57 0.57 0.57 0.57 0.57 0.59 0.74 0.88 1.18 1.21 1.36 1.39 1.39 1.40 1.48 1.63 1.64 1.74 1.88 2.03 1.96 6.74 10.62 8.40 7.90
Solar 0.02 0.17 0.77 0.89 0.90 0.92 1.02 1.26 1.28 3.69 6.18 8.57 11.02 13.73 15.32 17.47 19.66 21.26 22.35 24.55 25.93 27.11 28.41 29.92 31.01 31.82 32.59 27.86 56.89 34.44 24.45 18.92
Biomass 0.13 0.22 0.23 0.22 0.26 0.36 0.45 0.51 0.51 0.51 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.71 0.75 1.26 10.33 4.01 2.66 2.64
Total 17.94 18.77 21.43 22.73 23.82 25.53 26.25 28.73 28.78 31.85 34.50 38.09 41.86 45.03 47.38 50.74 54.86 58.25 61.76 66.04 69.84 74.02 77.78 82.51 86.95 91.25 95.67 100 7.07 7.65 7.16 6.68
Annex 23. INSTALLED GENERATING CAPACITY, Clean Energy Scenario (in Gigawatt, GW)

(2020-2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Oil 3.48 3.61 3.62 4.15 4.29 4.26 4.24 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 4.62 9.19 2.18 0.86 0.58 0.43
Natural Gas 2.86 2.86 3.43 3.45 3.45 3.45 3.45 3.45 3.45 4.10 4.10 4.14 5.24 5.24 5.30 6.20 7.20 8.44 9.78 11.28 12.64 14.34 15.14 16.00 16.84 17.68 18.88 14.12 4.41 7.63 9.96 8.87
Coal 5.71 5.96 7.42 8.05 8.84 10.42 10.94 12.58 12.58 12.58 12.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 13.58 26.13 3.54 2.19 1.45 1.09
Renewable 5.90 6.33 6.96 7.08 7.23 7.40 7.62 8.08 8.13 10.55 13.20 15.75 18.41 21.67 23.88 26.71 29.54 33.03 36.55 40.42 44.26 48.11 53.66 59.91 66.42 73.65 81.48 50.56 14.74 14.51 13.07 12.58
Geothermal 1.92 1.92 1.92 1.92 1.94 1.93 1.93 1.93 1.93 1.93 1.93 2.08 2.28 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.33 2.38 2.41 2.41 2.41 2.41 4.33 0.00 1.90 1.26 1.12
Hydro 3.54 3.60 3.62 3.63 3.70 3.76 3.78 3.81 3.84 3.85 3.86 3.86 3.86 4.04 4.64 5.04 5.77 6.17 6.97 7.49 8.47 9.74 11.07 12.77 14.92 17.38 20.18 11.99 0.54 4.32 6.52 8.74
Wind 0.28 0.43 0.43 0.43 0.43 0.43 0.44 0.57 0.57 0.57 0.57 0.57 0.60 0.75 0.90 1.20 1.21 1.36 1.51 1.71 1.88 2.03 3.19 4.96 6.86 9.21 11.83 3.16 6.74 10.54 10.67 17.85
Solar 0.02 0.17 0.77 0.89 0.90 0.92 1.02 1.26 1.28 3.69 6.18 8.57 11.00 13.89 15.35 17.48 19.57 22.52 25.09 28.23 30.93 33.30 36.27 38.97 41.39 43.77 46.14 29.82 56.89 34.38 26.17 21.00
Biomass 0.13 0.22 0.23 0.22 0.26 0.36 0.45 0.51 0.51 0.51 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.66 0.71 0.75 0.80 0.84 0.89 0.93 1.26 10.33 4.01 3.11 3.74
Total 17.94 18.77 21.43 22.73 23.82 25.53 26.25 28.73 28.78 31.85 34.50 38.09 41.85 45.12 47.38 51.12 54.94 59.68 64.53 69.91 75.11 80.65 87.01 94.11 101.46 109.54 118.57 100 7.07 7.67 7.77 7.83
ANNEXES
267
268
Annex 24. POWER GENERATION, Reference Scenario (in Terawatt-hour, TWh)
ANNEXES

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (2020-2040) '20-'24 '20-'30 '20-'35 '20-'40
Oil 5.71 5.89 5.66 3.79 3.17 3.75 2.47 0.09 0.07 0.10 0.28 0.26 0.32 0.34 0.80 1.37 1.03 1.13 0.72 0.73 0.60 0.36 0.53 0.38 0.33 0.30 0.28 0.97 -42.19 -8.43 -12.13 -10.39
Natural Gas 18.69 18.88 19.85 20.55 21.33 22.35 19.50 20.24 20.24 20.24 20.29 21.06 21.84 22.69 26.73 31.54 37.51 45.66 54.80 63.99 74.09 84.85 95.52 107.66 120.04 133.20 146.86 23.57 1.00 6.76 10.30 10.62
Coal 33.05 36.69 43.30 46.85 51.93 57.89 58.18 64.57 70.40 73.58 76.81 79.66 82.51 85.44 86.51 87.06 87.75 88.09 88.44 88.82 88.95 89.10 89.50 89.38 89.53 89.54 89.72 45.42 7.19 4.20 2.88 2.19
Renewable 19.81 20.96 21.98 23.19 23.33 22.04 21.61 25.11 25.58 29.66 34.22 39.28 44.87 51.06 56.20 61.85 68.04 72.66 77.54 82.70 88.13 93.87 99.93 106.32 113.04 120.11 127.54 30.04 12.18 12.15 10.29 9.28
Geothermal 10.31 11.04 11.07 10.27 10.44 10.69 10.76 12.79 12.79 12.79 12.82 13.88 15.30 15.63 15.67 15.63 15.63 15.63 15.67 15.63 15.63 15.63 15.67 15.63 15.69 16.05 16.18 8.42 4.49 3.81 2.52 2.06
Hydro 9.14 8.67 8.11 9.61 9.38 8.03 7.19 8.70 8.80 8.82 8.89 8.87 8.87 9.82 11.90 13.35 15.87 17.48 20.47 22.13 25.28 28.97 32.45 36.45 41.17 46.04 51.55 9.00 5.45 8.24 9.73 10.35
Wind 0.15 0.75 0.98 1.09 1.15 1.04 1.03 1.48 1.77 1.77 1.78 1.77 1.81 2.18 2.53 3.22 3.31 3.68 3.74 3.73 3.76 3.94 4.28 4.28 4.50 4.79 5.12 1.40 14.76 12.41 9.39 8.37
Solar 0.02 0.14 1.10 1.20 1.25 1.25 1.37 1.26 1.32 5.38 9.58 13.61 17.74 22.28 24.93 28.47 32.06 34.71 36.50 40.07 42.32 44.25 46.38 48.81 50.56 51.85 53.06 10.54 62.53 37.04 26.05 20.05
Biomass 0.20 0.37 0.73 1.01 1.10 1.04 1.26 0.89 0.91 0.91 1.15 1.15 1.15 1.15 1.16 1.17 1.16 1.16 1.16 1.14 1.13 1.07 1.16 1.15 1.11 1.38 1.63 0.68 -2.26 -0.82 -1.09 1.29
Total 77.26 82.41 90.80 94.37 99.76 106.04 101.76 110.00 116.29 123.58 131.59 140.26 149.54 159.53 170.24 181.82 194.33 207.55 221.50 236.23 251.78 268.17 285.49 303.74 322.94 343.15 364.40 100 6.64 6.68 6.67 6.59
Annex 25. POWER GENERATION, Clean Energy Scenario (in Terawatt-hour, TWh)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (2020-2040) '20-'24 '20-'30 '20-'35 '20-'40
Oil 5.71 5.89 5.66 3.79 3.17 3.75 2.47 0.09 0.07 0.10 0.27 0.37 0.48 0.59 0.70 0.81 0.86 0.76 0.67 0.62 0.56 0.53 0.50 0.47 0.44 0.50 0.52 0.35 -42.37 -10.07 -9.80 -7.54
Natural Gas 18.69 18.88 19.85 20.55 21.33 22.35 19.50 20.10 20.07 20.02 20.03 22.22 24.44 26.70 29.82 33.12 36.91 42.41 49.30 56.14 62.93 70.04 74.70 79.78 84.32 88.95 93.24 21.37 0.68 6.59 8.90 8.14
Coal 33.05 36.69 43.30 46.85 51.93 57.89 58.18 64.14 69.81 72.81 75.83 76.87 77.95 79.06 81.03 83.17 85.55 85.31 85.17 85.00 84.88 84.59 84.22 83.27 82.67 81.67 80.83 43.49 6.85 3.93 2.53 1.66
Renewable 19.81 20.96 21.98 23.19 23.33 22.04 21.61 25.03 25.48 29.49 33.95 38.90 44.36 50.37 55.31 60.73 66.35 73.65 80.18 87.40 95.41 104.02 115.73 128.65 142.90 158.65 175.49 34.79 11.96 11.87 11.05 11.04
Geothermal 10.31 11.04 11.07 10.27 10.44 10.69 10.76 12.79 12.79 12.79 12.82 13.88 15.30 15.63 15.67 15.63 15.63 15.63 15.67 15.63 15.63 15.63 15.67 15.63 15.69 16.05 16.18 8.11 4.49 3.81 2.52 2.06
Hydro 9.14 8.67 8.11 9.61 9.38 8.03 7.19 8.64 8.72 8.72 8.78 8.73 8.71 9.34 11.50 12.87 15.16 17.45 19.73 21.51 24.98 29.47 34.13 39.70 46.77 54.47 63.14 9.58 5.11 7.74 9.86 11.47
Wind 0.15 0.75 0.98 1.09 1.15 1.04 1.03 1.47 1.76 1.76 1.76 1.75 1.81 2.17 2.52 3.19 3.21 3.56 3.91 4.37 4.74 5.04 7.24 10.34 13.57 17.46 21.77 2.24 14.39 12.06 11.20 16.50
Solar 0.02 0.14 1.10 1.20 1.25 1.25 1.37 1.25 1.31 5.32 9.46 13.41 17.40 22.10 24.49 27.90 31.22 35.89 39.90 44.78 48.94 52.57 57.12 61.22 64.88 68.48 72.01 14.18 62.01 36.68 27.51 21.90
Biomass 0.20 0.37 0.73 1.01 1.10 1.04 1.26 0.89 0.90 0.90 1.14 1.13 1.13 1.13 1.13 1.13 1.13 1.12 0.96 1.11 1.11 1.31 1.57 1.77 1.98 2.20 2.39 0.68 -2.57 -1.11 0.24 3.24
Total 77.26 82.41 90.80 94.37 99.76 106.04 101.76 109.35 115.43 122.42 130.09 138.36 147.22 156.72 166.87 177.83 189.66 202.14 215.30 229.16 243.78 259.18 275.15 292.17 310.33 329.78 350.07 100 6.33 6.42 6.43 6.37
Annex 26. FUEL INPUT TO POWER GENERATION, Reference Scenario (in Million Tons of Oil Equivalent, MTOE)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (2020-2040) '20-'24 '20-'30 '20-'35 '20-'40
Oil 1.38 1.41 1.23 0.97 0.73 0.79 0.51 0.02 0.02 0.02 0.07 0.07 0.07 0.08 0.21 0.37 0.27 0.29 0.19 0.19 0.15 0.14 0.12 0.10 0.08 0.08 0.07 0.31 -40.13 -6.24 -8.45 -9.36
Natural Gas 2.85 2.70 3.08 3.08 3.32 3.41 3.07 3.58 3.58 3.58 3.59 3.71 3.82 3.98 4.69 5.54 6.63 8.05 9.65 11.33 13.15 15.08 17.01 19.25 21.52 23.94 26.45 16.92 3.93 7.99 11.18 11.36
Coal 8.23 9.26 10.23 12.31 13.78 15.12 15.70 16.59 18.09 18.91 19.73 20.47 21.20 21.95 22.15 22.36 22.56 22.61 22.71 22.87 22.92 22.98 23.03 23.07 23.13 23.13 23.17 42.82 5.88 3.69 2.57 1.96
Renewable 11.22 11.87 12.00 11.81 11.94 11.79 11.74 13.70 13.76 14.11 14.60 15.85 17.43 18.38 19.16 19.88 20.83 21.46 22.37 23.12 24.12 25.22 26.31 27.52 28.93 30.60 32.30 39.94 5.61 5.90 5.23 5.19
Geothermal 8.86 9.50 9.52 8.83 8.97 9.19 9.25 11.00 11.00 11.00 11.02 11.93 13.16 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.50 13.80 13.92 25.55 4.49 3.81 2.52 2.06
Hydro 2.27 2.16 2.02 2.39 2.34 2.00 1.79 2.16 2.19 2.19 2.21 2.21 2.21 2.44 2.96 3.32 3.95 4.35 5.10 5.51 6.29 7.21 8.08 9.07 10.25 11.46 12.83 8.85 5.45 8.24 9.73 10.35
Wind 0.01 0.06 0.08 0.09 0.10 0.09 0.09 0.13 0.15 0.15 0.15 0.15 0.16 0.19 0.22 0.28 0.28 0.30 0.31 0.32 0.33 0.34 0.37 0.37 0.39 0.41 0.44 0.48 14.76 12.41 9.39 8.37
Solar 0.00 0.01 0.09 0.10 0.11 0.11 0.12 0.11 0.11 0.46 0.82 1.17 1.53 1.92 2.14 2.45 2.76 2.98 3.14 3.45 3.64 3.80 3.99 4.20 4.35 4.46 4.56 4.24 62.53 37.04 26.05 20.05
Biomass 0.07 0.14 0.28 0.39 0.43 0.40 0.49 0.30 0.31 0.31 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.39 0.40 0.41 0.42 0.43 0.44 0.46 0.47 0.55 0.81 -5.73 -2.27 -1.01 0.56
Total 23.68 25.24 26.54 28.18 29.77 31.11 31.02 33.89 35.44 36.62 37.99 40.09 42.53 44.38 46.20 48.15 50.28 52.42 54.92 57.50 60.34 63.41 66.46 69.95 73.66 77.73 81.99 100 5.19 4.95 4.88 4.98
Annex 27. FUEL INPUT TO POWER GENERATION, Clean Energy Scenario (in Million Tons of Oil Equivalent, MTOE)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (2020-2040) '20-'24 '20-'30 '20-'35 '20-'40
Oil 1.38 1.41 1.23 0.97 0.73 0.79 0.51 0.02 0.03 0.04 0.06 0.07 0.08 0.09 0.10 0.12 0.13 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.27 -42.59 -12.92 -8.29 -6.32
Natural Gas 2.85 2.70 3.08 3.08 3.32 3.41 3.07 3.55 3.79 4.03 4.27 4.51 4.75 4.99 5.23 5.82 6.52 7.48 8.68 9.94 11.17 12.44 13.30 14.26 15.12 15.99 16.80 15.57 8.58 7.81 9.77 8.86
Coal 8.23 9.26 10.23 12.31 13.78 15.12 15.70 16.48 17.02 17.56 18.10 18.64 19.18 19.72 20.26 20.30 20.33 20.37 20.41 20.45 20.48 20.52 20.56 20.60 20.63 20.67 20.71 40.77 3.61 2.62 1.80 1.39
Renewable 11.22 11.87 12.00 11.81 11.94 11.79 11.74 13.68 14.08 14.49 14.93 16.25 17.88 18.57 19.00 19.70 20.57 21.58 22.53 23.44 24.71 26.17 28.00 30.07 32.55 35.49 38.50 43.39 6.20 5.77 5.49 6.12
Geothermal 8.86 9.50 9.52 8.83 8.97 9.19 9.25 11.00 11.00 11.00 11.02 11.93 13.16 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.50 13.80 13.92 26.57 4.49 3.81 2.52 2.06
Hydro 2.27 2.16 2.02 2.39 2.34 2.00 1.79 2.15 2.25 2.35 2.46 2.56 2.66 2.76 2.86 3.20 3.77 4.34 4.91 5.36 6.22 7.34 8.50 9.88 11.64 13.56 15.72 9.96 8.22 7.74 9.86 11.47
Wind 0.01 0.06 0.08 0.09 0.10 0.09 0.09 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.22 0.27 0.28 0.31 0.34 0.38 0.41 0.43 0.62 0.89 1.17 1.50 1.87 0.80 15.37 12.06 11.20 16.50
Solar 0.00 0.01 0.09 0.10 0.11 0.11 0.12 0.11 0.39 0.68 0.96 1.25 1.53 1.82 2.11 2.40 2.68 3.09 3.43 3.85 4.21 4.52 4.91 5.26 5.58 5.89 6.19 5.16 69.04 36.68 27.51 21.90
Biomass 0.07 0.14 0.28 0.39 0.43 0.40 0.49 0.30 0.31 0.32 0.33 0.34 0.35 0.36 0.37 0.38 0.39 0.40 0.41 0.42 0.43 0.44 0.53 0.60 0.67 0.74 0.80 0.90 -9.54 -2.27 -0.72 2.50
Total 23.68 25.24 26.54 28.18 29.77 31.11 31.02 33.73 34.93 36.13 37.35 39.46 41.89 43.37 44.59 45.93 47.55 49.57 51.76 53.97 56.50 59.28 62.00 65.07 68.44 72.28 76.15 100 4.75 4.36 4.41 4.59
Annex 28. TOTAL PRIMARY ENERGY SUPPLY, Reference Scenario (in Million Tons of Oil Equivalent, MTOE)

(2020-2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Oil 14.42 17.21 18.55 19.67 19.99 19.05 16.45 17.17 17.84 18.79 19.91 21.18 22.44 23.97 25.80 27.81 29.70 31.85 33.97 36.32 38.74 41.23 44.00 46.82 49.77 52.85 56.40 32.21 4.88 6.09 6.32 6.35
Natural Gas 3.04 2.85 3.27 3.23 3.60 3.63 3.29 3.61 3.61 3.61 3.62 3.74 3.86 4.01 4.73 5.58 6.67 8.09 9.69 11.37 13.19 15.12 17.05 19.29 21.56 23.98 26.50 9.19 2.46 7.33 10.70 11.00
Coal 10.64 11.61 13.09 15.47 16.35 17.48 17.34 18.24 19.92 20.93 21.97 22.94 23.94 25.00 25.53 26.11 26.71 27.20 27.77 28.43 29.01 29.62 30.26 30.93 31.63 32.31 33.06 28.01 6.10 4.42 3.64 3.28
Renewable 18.89 19.59 19.69 19.59 19.77 19.69 19.29 21.29 21.38 21.76 22.29 23.59 25.22 26.22 27.07 27.86 28.89 29.58 30.50 31.22 32.10 33.09 34.07 35.18 36.49 38.06 39.67 30.59 3.68 4.12 3.66 3.67
Geothermal 8.86 9.50 9.52 8.83 8.97 9.19 9.25 11.00 11.00 11.00 11.02 11.93 13.16 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.50 13.80 13.92 14.01 4.49 3.81 2.52 2.06
Hydro 2.27 2.16 2.02 2.39 2.34 2.00 1.79 2.16 2.19 2.19 2.21 2.21 2.21 2.44 2.96 3.32 3.95 4.35 5.10 5.51 6.29 7.21 8.08 9.07 10.25 11.46 12.83 4.79 5.45 8.24 9.73 10.35
Wind 0.01 0.06 0.08 0.09 0.10 0.09 0.09 0.13 0.15 0.15 0.15 0.15 0.16 0.19 0.22 0.28 0.28 0.30 0.31 0.32 0.33 0.34 0.37 0.37 0.39 0.41 0.44 0.26 14.76 12.41 9.39 8.37
Solar 0.00 0.01 0.09 0.10 0.11 0.11 0.12 0.11 0.11 0.46 0.82 1.17 1.53 1.92 2.14 2.45 2.76 2.98 3.14 3.45 3.64 3.80 3.99 4.20 4.35 4.46 4.56 2.29 62.53 37.04 26.05 20.05
Biomass 7.36 7.43 7.49 7.65 7.72 7.74 7.56 7.39 7.40 7.39 7.47 7.47 7.48 7.49 7.50 7.51 7.52 7.51 7.45 7.37 7.18 7.00 6.82 6.64 6.46 6.28 6.17 8.24 -0.31 -0.05 -0.52 -1.01
Biofuels 0.38 0.43 0.48 0.52 0.53 0.57 0.48 0.51 0.53 0.56 0.60 0.65 0.69 0.74 0.80 0.86 0.93 1.00 1.06 1.14 1.22 1.29 1.38 1.47 1.56 1.65 1.75 0.99 5.88 6.79 6.81 6.67
Bioethanol 0.25 0.28 0.31 0.34 0.35 0.38 0.32 0.35 0.36 0.38 0.41 0.45 0.48 0.51 0.55 0.59 0.64 0.69 0.74 0.80 0.85 0.91 0.97 1.04 1.10 1.17 1.24 0.69 -3.79 5.16 7.11 5.94
Biodiesel 0.14 0.15 0.17 0.18 0.18 0.19 0.16 0.16 0.17 0.18 0.19 0.21 0.22 0.23 0.25 0.27 0.29 0.31 0.32 0.34 0.36 0.38 0.41 0.43 0.45 0.48 0.50 0.30 -7.26 3.84 6.14 4.73
Total 46.99 51.27 54.59 57.96 59.72 59.85 56.37 60.32 62.75 65.10 67.79 71.45 75.46 79.21 83.13 87.36 91.97 96.72 101.93 107.34 113.05 119.06 125.38 132.22 139.45 147.20 155.62 100 4.72 5.02 5.11 5.21
Self-Sufficiency (%) 56.62 52.43 53.86 50.92 50.20 51.64 52.65 48.86 46.86 46.32 45.84 44.88 45.28 45.04 44.58 43.99 43.57 42.83 42.37 41.92 41.49 41.13 40.67 40.39 40.15 39.91 39.67
Annex 29. TOTAL PRIMARY ENERGY SUPPLY, Clean Energy Scenario (in Million Tons of Oil Equivalent, MTOE)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 (2020-2040) '20-'24 '20-'30 '20-'35 '20-'40
Oil 14.42 17.21 18.55 19.67 19.99 19.05 16.45 16.98 17.57 18.16 19.16 20.13 21.35 22.71 24.22 25.88 27.73 29.70 31.75 33.90 36.13 38.38 40.88 43.40 45.99 48.66 51.49 31.66 3.88 5.36 5.81 5.87
Natural Gas 3.04 2.85 3.27 3.23 3.60 3.63 3.29 3.59 3.83 4.07 4.31 4.56 4.80 5.04 5.28 5.86 6.57 7.52 8.72 9.99 11.22 12.49 13.35 14.31 15.17 16.03 16.85 8.47 7.02 7.16 9.31 8.51
Coal 10.64 11.61 13.09 15.47 16.35 17.48 17.34 18.12 18.84 19.56 20.30 21.07 21.87 22.71 23.57 23.96 24.38 24.84 25.32 25.83 26.37 26.93 27.52 28.14 28.78 29.45 30.15 26.89 4.03 3.47 2.98 2.80
Renewable 18.89 19.59 19.69 19.59 19.77 19.69 19.29 21.27 21.79 22.38 22.86 24.23 25.93 26.69 27.20 27.98 28.95 30.03 31.02 31.93 33.10 34.46 36.21 38.19 40.59 43.45 46.39 32.98 4.34 4.14 3.94 4.49
Geothermal 8.86 9.50 9.52 8.83 8.97 9.19 9.25 11.00 11.00 11.00 11.02 11.93 13.16 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.50 13.80 13.92 14.53 4.49 3.81 2.52 2.06
Hydro 2.27 2.16 2.02 2.39 2.34 2.00 1.79 2.15 2.25 2.35 2.46 2.56 2.66 2.76 2.86 3.20 3.77 4.34 4.91 5.36 6.22 7.34 8.50 9.88 11.64 13.56 15.72 5.36 8.22 7.74 9.86 11.47
Wind 0.01 0.06 0.08 0.09 0.10 0.09 0.09 0.13 0.14 0.15 0.16 0.17 0.18 0.19 0.22 0.27 0.28 0.31 0.34 0.38 0.41 0.43 0.62 0.89 1.17 1.50 1.87 0.43 15.37 12.06 11.20 16.50
Solar 0.00 0.01 0.09 0.10 0.11 0.11 0.12 0.11 0.39 0.68 0.96 1.25 1.53 1.82 2.11 2.40 2.68 3.09 3.43 3.85 4.21 4.52 4.91 5.26 5.58 5.89 6.19 2.77 69.04 36.68 27.51 21.90
Biomass 7.36 7.43 7.49 7.65 7.72 7.74 7.56 7.39 7.40 7.40 7.41 7.42 7.44 7.46 7.47 7.49 7.51 7.51 7.46 7.37 7.18 7.00 6.89 6.77 6.65 6.53 6.40 8.53 -0.52 -0.06 -0.51 -0.83
Biofuels 0.38 0.43 0.48 0.52 0.53 0.57 0.48 0.51 0.62 0.81 0.86 0.91 0.96 1.03 1.10 1.17 1.26 1.35 1.44 1.53 1.63 1.73 1.84 1.95 2.06 2.17 2.29 1.37 15.65 10.10 8.92 8.12
Bioethanol 0.25 0.28 0.31 0.34 0.35 0.38 0.32 0.35 0.35 0.36 0.39 0.42 0.45 0.48 0.52 0.56 0.61 0.65 0.70 0.75 0.81 0.86 0.92 0.97 1.03 1.09 1.15 0.68 4.83 6.46 6.69 6.56
Biodiesel 0.14 0.15 0.17 0.18 0.18 0.19 0.16 0.16 0.26 0.44 0.47 0.49 0.51 0.54 0.58 0.61 0.65 0.69 0.74 0.78 0.83 0.88 0.93 0.98 1.03 1.08 1.14 0.69 31.48 15.33 12.15 10.42
Total 46.99 51.27 54.59 57.96 59.72 59.85 56.37 59.96 62.04 64.17 66.64 69.99 73.95 77.14 80.26 83.68 87.63 92.09 96.81 101.64 106.81 112.27 117.96 124.04 130.53 137.60 144.88 100 4.28 4.51 4.70 4.83
Self-Sufficiency (%) 56.62 52.43 53.86 50.92 50.20 51.64 52.65 49.36 48.14 48.16 47.82 46.74 47.34 46.96 46.20 45.97 45.70 45.35 44.99 44.86 44.74 44.97 45.62 46.47 47.36 48.43 49.44
ANNEXES
269
270
Annex 30. Greenhouse Gas Emission (GHG), By Fuel, Reference Scenario (in Million Tons of CO2 equivalent, MTCO2e)
ANNEXES
Actual Outlook Average Shares Average Annual Growth Rates (%)

Fuel
% (2020-2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Coal 40.93 44.81 50.37 59.78 63.16 67.66 67.10 72.62 79.35 83.35 87.47 91.32 95.30 99.51 101.59 103.85 106.21 108.09 110.33 112.92 115.18 117.58 120.35 122.71 125.46 128.13 131.08 48.11 6.85 4.70 3.81 3.41
Natural Gas 7.11 6.68 7.66 7.55 8.43 8.49 7.70 8.49 8.49 8.49 8.52 8.80 9.07 9.43 11.11 13.11 15.67 19.01 22.76 26.72 31.00 35.52 40.06 45.33 50.67 56.34 62.26 9.24 2.56 7.37 10.73 11.02
Oil 41.50 45.97 49.22 51.15 51.73 53.89 45.21 51.60 53.78 56.83 60.36 64.40 68.50 73.44 79.27 85.69 91.79 98.67 105.49 113.02 120.82 128.68 137.76 146.78 156.28 166.23 177.60 42.65 7.49 7.34 7.22 7.08
Total 89.53 97.46 107.25 118.48 123.32 130.03 120.01 132.71 141.62 148.67 156.34 164.52 172.87 182.38 191.97 202.65 213.68 225.77 238.58 252.66 266.99 281.78 298.17 314.82 332.41 350.70 370.95 100 6.84 5.94 5.86 5.80
.
Annex 31. Greenhouse Gas Emission (GHG), By Fuel, Clean Energy Scenario (in Million Tons of CO2 equivalent, MTCO2e) .

Fuel
% (2020-2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Coal 40.93 44.81 50.37 59.78 63.16 67.66 67.10 72.13 78.32 82.12 86.11 87.76 89.93 92.32 95.69 99.48 103.50 104.66 106.30 108.20 110.04 111.78 113.50 114.67 116.41 117.78 119.41 48.69 6.44 4.43 3.46 2.92
Natural Gas 7.11 6.68 7.66 7.55 8.43 8.49 7.70 8.44 8.43 8.41 8.42 9.29 10.15 11.09 12.40 13.78 15.43 17.68 20.50 23.46 26.36 29.35 31.37 33.63 35.63 37.68 39.58 8.52 2.26 7.20 9.33 8.53
Oil 41.50 45.97 49.22 51.15 51.73 53.89 45.21 51.00 52.89 54.81 58.07 61.25 65.23 69.66 74.62 79.99 85.94 92.15 98.67 105.52 112.67 119.89 127.94 136.02 144.37 153.06 162.26 42.79 6.46 6.63 6.72 6.60
Total 89.53 97.46 107.25 118.48 123.32 130.03 120.01 131.57 139.64 145.35 152.60 158.30 165.32 173.08 182.71 193.25 204.88 214.50 225.47 237.19 249.07 261.02 272.80 284.32 296.42 308.52 321.25 100 6.19 5.49 5.32 5.05
Annex 32. Greenhouse Gas Emission (GHG), By Sector, Reference Scenario (in Million Tons of CO2 equivalent, MTCO2e)

Sector
% (2020-2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Transformation* 44.12 47.80 51.58 58.92 65.28 70.40 70.78 76.62 82.61 85.92 89.39 92.60 95.85 99.26 102.11 105.44 108.49 112.11 115.95 120.55 124.92 129.47 134.62 139.70 145.20 150.86 156.93 51.02 5.60 4.20 4.00 3.98
Industry 12.68 12.99 15.05 16.36 13.07 12.96 10.62 11.31 12.23 13.10 14.03 15.08 16.27 17.64 19.13 20.74 22.52 24.44 26.48 28.66 30.97 33.41 35.97 38.66 41.47 44.41 47.47 10.72 12.50 9.90 9.33 8.82
Transport 25.69 29.71 32.15 33.20 34.44 35.57 27.44 31.37 32.57 34.77 37.24 39.91 42.40 45.51 48.99 52.78 56.88 61.21 65.76 70.54 75.57 80.60 86.37 92.20 98.29 104.66 112.31 26.78 7.87 7.54 7.43 7.29
Others 7.04 6.96 8.47 10.01 10.52 11.10 11.17 13.41 14.20 14.88 15.67 16.92 18.34 19.98 21.75 23.68 25.78 28.02 30.39 32.89 35.53 38.30 41.21 44.26 47.45 50.77 54.24 11.48 7.21 8.07 8.13 7.89
Total 89.53 97.46 107.25 118.48 123.32 130.03 120.01 132.71 141.62 148.67 156.34 164.52 172.87 182.38 191.97 202.65 213.68 225.77 238.58 252.66 266.99 281.78 298.17 314.82 332.41 350.70 370.95 100 6.84 5.94 5.86 5.80
Annex 33. Greenhouse Gas Emission (GHG), By Sector, Clean Energy Scenario (in Million Tons of CO2 equivalent, MTCO2e)

Actual Outlook Average Annual Growth Rates (%)
Average Shares
Sector
% (2020-2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Transformation* 44.12 47.80 51.58 58.92 65.28 70.40 70.78 76.11 81.58 84.69 88.05 89.75 91.86 94.15 97.70 101.59 105.83 107.55 110.21 113.19 115.93 118.57 120.15 121.28 122.63 123.62 124.58 50.64 5.61 4.10 3.50 2.87
Industry 12.68 12.99 15.05 16.36 13.07 12.96 10.62 11.23 12.04 12.87 13.75 14.75 15.88 17.18 18.60 20.13 21.81 23.61 25.54 27.59 29.75 32.03 34.41 36.91 39.52 42.23 45.05 11.09 6.67 7.46 7.64 7.49
Transport 25.69 29.71 32.15 33.20 34.44 35.57 27.44 30.90 32.16 33.30 35.58 37.39 39.82 42.45 45.44 48.74 52.47 56.46 60.63 64.99 69.52 73.97 79.10 84.16 89.37 94.71 100.48 26.58 6.71 6.70 6.83 6.71
Others 7.04 6.96 8.47 10.01 10.52 11.10 11.17 13.33 13.86 14.49 15.23 16.41 17.75 19.29 20.97 22.79 24.76 26.86 29.08 31.42 33.87 36.45 39.14 41.96 44.90 47.96 51.13 11.69 8.06 8.29 8.20 7.90
Total 89.53 97.46 107.25 118.48 123.32 130.03 120.01 131.57 139.64 145.35 152.60 158.30 165.32 173.08 182.71 193.25 204.88 214.50 225.47 237.19 249.07 261.02 272.80 284.32 296.42 308.52 321.25 100 6.19 5.49 5.32 5.05
*power generation, oil refining
Annex 34. TOTAL INDIGENOUS ENERGY SUPPLY, Reference Scenario (in Million Tons of Oil Equivalent, MTOE)

Energy Source Shares % (2020-
2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Oil 0.85 0.71 0.70 0.62 0.59 0.52 0.46 0.45 0.47 0.50 0.53 0.56 0.59 0.63 0.67 0.71 0.75 0.80 0.85 0.90 0.96 1.02 1.09 1.16 1.23 1.31 1.40 1.89 3.70 5.11 5.51 5.76
Natural Gas 3.04 2.85 3.27 3.23 3.60 3.63 3.29 3.61 3.12 3.12 3.13 2.41 2.44 2.46 2.48 2.51 2.53 2.56 2.58 2.60 2.63 2.65 2.68 2.70 2.73 2.75 2.78 7.09 -1.19 -2.58 -1.42 -0.84
Coal 4.01 3.89 5.92 6.30 6.20 7.26 6.84 4.27 4.59 4.93 5.30 5.70 6.13 6.59 7.05 7.62 8.19 8.78 9.54 10.62 11.60 12.61 13.56 14.83 16.02 17.14 18.43 21.87 -6.14 1.82 4.17 5.08
Renewable 18.71 19.42 19.52 19.37 19.58 19.50 19.10 21.14 21.22 21.59 22.11 23.39 25.01 26.00 26.86 27.60 28.60 29.29 30.22 30.87 31.72 32.69 33.68 34.73 36.01 37.55 39.13 69.14 3.73 4.12 3.65 3.65
Geothermal 8.86 9.50 9.52 8.83 8.97 9.19 9.25 11.00 11.00 11.00 11.02 11.93 13.16 13.44 13.48 13.44 13.44 13.44 13.48 13.44 13.44 13.44 13.48 13.44 13.50 13.80 13.92 31.78 4.49 3.81 2.52 2.06
Hydro 2.27 2.16 2.02 2.39 2.34 2.00 1.79 2.16 2.19 2.19 2.21 2.21 2.21 2.44 2.96 3.32 3.95 4.35 5.10 5.51 6.29 7.21 8.08 9.07 10.25 11.46 12.83 11.24 5.45 8.24 9.73 10.35
Wind 0.01 0.06 0.08 0.09 0.10 0.09 0.09 0.13 0.15 0.15 0.15 0.15 0.16 0.19 0.22 0.28 0.28 0.32 0.32 0.32 0.32 0.34 0.37 0.37 0.39 0.41 0.44 0.61 14.76 12.41 9.39 8.37
Solar 0.00 0.01 0.09 0.10 0.11 0.11 0.12 0.11 0.11 0.46 0.82 1.17 1.53 1.92 2.14 2.45 2.76 2.98 3.14 3.45 3.64 3.80 3.99 4.20 4.35 4.46 4.56 5.43 62.53 37.04 26.05 20.05
Biomass 7.36 7.43 7.49 7.65 7.72 7.74 7.56 7.39 7.40 7.39 7.47 7.47 7.48 7.49 7.50 7.51 7.52 7.51 7.45 7.37 7.18 7.00 6.82 6.64 6.46 6.28 6.17 18.50 -0.31 -0.05 -0.52 -1.01
Biofuels 0.20 0.26 0.31 0.30 0.34 0.38 0.29 0.36 0.37 0.40 0.42 0.46 0.48 0.52 0.56 0.60 0.64 0.69 0.74 0.79 0.84 0.89 0.95 1.01 1.07 1.14 1.20 1.59 10.36 8.42 7.89 7.45
Bioethanol 0.07 0.09 0.13 0.13 0.17 0.20 0.15 0.16 0.17 0.18 0.19 0.20 0.22 0.23 0.25 0.26 0.28 0.30 0.32 0.34 0.36 0.38 0.40 0.43 0.45 0.48 0.50 0.70 -4.55 4.29 6.21 5.06
Biodiesel 0.13 0.16 0.18 0.17 0.17 0.18 0.13 0.20 0.20 0.21 0.23 0.25 0.27 0.29 0.31 0.33 0.36 0.39 0.42 0.45 0.48 0.51 0.55 0.58 0.62 0.66 0.70 0.89 -11.59 6.58 9.48 6.71
Total 26.61 26.88 29.40 29.51 29.98 30.91 29.68 29.47 29.41 30.15 31.08 32.07 34.17 35.68 37.06 38.43 40.07 41.42 43.19 45.00 46.91 48.97 51.00 53.41 55.98 58.75 61.73 100 1.16 3.05 3.40 3.73
Annex 35 . TOTAL INDIGENOUS ENERGY SUPPLY, Clean Energy Scenario (in Million Tons of Oil Equivalent, MTOE)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2040) '20-'24 '20-'30 '20-'35 '20-'40
Oil 0.85 0.71 0.70 0.62 0.59 0.52 0.46 0.45 0.47 0.50 0.53 0.56 0.59 0.63 0.67 0.71 0.75 0.80 0.85 0.90 0.96 1.02 1.09 1.16 1.23 1.31 1.40 1.83 3.70 5.11 5.51 5.76
Natural Gas 3.04 2.85 3.27 3.23 3.60 3.63 3.29 3.59 3.10 3.09 3.09 2.36 2.37 2.38 2.40 2.41 2.43 2.44 2.46 2.47 2.49 2.50 2.52 2.54 2.55 2.57 2.58 6.69 -1.52 -2.98 -1.80 -1.20
Coal 4.01 3.89 5.92 6.30 6.20 7.26 6.84 4.44 4.59 4.93 5.30 6.15 6.83 7.17 7.05 7.62 8.19 8.78 9.54 10.62 11.60 12.87 14.41 16.19 17.89 19.79 21.76 22.06 -6.14 1.82 4.31 5.96
Renewable 18.71 19.42 19.52 19.37 19.58 19.50 19.10 21.12 21.71 22.38 22.94 23.65 25.22 26.04 26.97 27.73 28.68 29.74 30.71 31.60 32.74 34.09 35.80 37.76 40.14 42.97 45.89 69.43 4.69 4.15 3.94 4.48
Geothermal 8.86 9.50 9.52 8.83 8.97 9.19 9.25 11.00 11.13 11.34 11.55 11.93 13.16 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.44 13.50 13.80 13.92 31.05 5.70 3.81 2.52 2.06
Hydro 2.27 2.16 2.02 2.39 2.34 2.00 1.79 2.15 2.17 2.17 2.19 2.17 2.17 2.32 2.86 3.20 3.77 4.34 4.91 5.36 6.22 7.34 8.50 9.88 11.64 13.56 15.72 11.15 5.11 7.74 9.86 11.47
Wind 0.01 0.06 0.08 0.09 0.10 0.09 0.09 0.13 0.15 0.15 0.15 0.15 0.16 0.19 0.22 0.27 0.28 0.31 0.34 0.38 0.41 0.43 0.62 0.89 1.17 1.50 1.87 0.91 14.39 12.06 11.20 16.50
Solar 0.00 0.01 0.09 0.10 0.11 0.11 0.12 0.11 0.39 0.68 0.96 1.25 1.53 1.82 2.11 2.40 2.68 3.09 3.43 3.85 4.21 4.52 4.91 5.26 5.58 5.89 6.19 5.97 69.04 36.68 27.51 21.90
Biomass 7.36 7.43 7.49 7.65 7.72 7.74 7.56 7.39 7.40 7.40 7.41 7.42 7.44 7.46 7.47 7.49 7.51 7.51 7.46 7.37 7.18 7.00 6.89 6.77 6.65 6.53 6.40 18.07 -0.52 -0.06 -0.51 -0.83
Biofuels 0.20 0.26 0.31 0.30 0.34 0.38 0.29 0.36 0.46 0.65 0.69 0.72 0.77 0.81 0.87 0.92 0.99 1.06 1.13 1.20 1.28 1.36 1.44 1.52 1.61 1.70 1.79 2.28 24.52 13.21 10.93 9.59
Bioethanol 0.07 0.09 0.13 0.13 0.17 0.20 0.15 0.20 0.20 0.21 0.22 0.24 0.25 0.27 0.29 0.32 0.34 0.37 0.40 0.42 0.45 0.48 0.52 0.55 0.58 0.62 0.65 0.82 9.28 8.25 7.88 7.45
Biodiesel 0.13 0.16 0.18 0.17 0.17 0.18 0.13 0.16 0.26 0.44 0.47 0.48 0.51 0.54 0.57 0.61 0.65 0.69 0.73 0.78 0.83 0.87 0.92 0.97 1.03 1.08 1.14 1.46 37.32 17.30 13.45 11.39
Total 26.61 26.88 29.40 29.51 29.98 30.91 29.68 29.60 29.86 30.91 31.87 32.71 35.01 36.22 37.08 38.47 40.05 41.76 43.56 45.60 47.79 50.48 53.82 57.65 61.82 66.64 71.63 100 1.80 3.04 3.61 4.50
Annex 36. NET IMPORTED ENERGY, Reference Scenario (in Million Tons of Oil Equivalent, MTOE)

2040)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 '20-'24 '20-'30 '20-'35 '20-'40
Oil 14.42 17.21 17.84 19.05 19.40 18.53 16.00 16.72 17.36 18.30 19.38 20.62 21.85 23.35 25.14 27.11 28.96 31.06 33.13 35.42 37.79 40.21 42.91 45.67 48.54 51.54 55.00 55.74 4.92 6.11 6.34 6.37
Natural Gas 3.04 2.85 - - - - - - 0.49 0.49 0.49 1.33 1.42 1.55 2.25 3.07 4.14 5.53 7.11 8.77 10.56 12.46 14.37 16.59 18.84 21.23 23.72 10.28 0.00 30.57 28.27 24.06
Coal 10.64 11.61 7.17 9.18 10.14 10.22 10.50 13.97 15.33 16.00 16.66 17.23 17.81 18.41 18.45 18.50 18.53 18.40 18.18 17.81 17.42 17.01 16.67 16.10 15.61 15.17 14.63 33.44 12.24 5.84 3.27 1.67
Bioethanol - - 0.17 0.22 0.19 0.19 0.19 0.15 0.16 0.17 0.18 0.19 0.21 0.22 0.24 0.26 0.28 0.30 0.32 0.35 0.37 0.40 0.42 0.45 0.48 0.51 0.54 0.54 -2.14 3.67 4.84 5.26
Total Net Import 28.10 31.68 25.19 28.44 29.74 28.95 26.69 30.84 33.34 34.95 36.71 39.38 41.29 43.53 46.07 48.93 51.90 55.29 58.74 62.34 66.14 70.08 74.38 78.81 83.47 88.45 93.90 100 8.30 6.88 6.65 6.49
Annex 37. NET IMPORTED ENERGY, Clean Energy Scenario (in Million Tons of Oil Equivalent, MTOE)

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2040) '20-'24 '20-'30 '20-'35 '20-'40
Oil 14.42 17.21 17.84 19.05 19.40 18.53 16.00 16.54 17.08 17.64 18.64 19.52 20.70 22.08 23.66 25.30 27.09 29.00 30.94 33.03 35.18 37.30 39.78 42.22 44.74 47.35 50.10 58.20 3.90 5.41 5.81 5.87
Natural Gas 3.04 2.85 - - - - - - 0.49 0.49 0.49 1.60 1.95 2.34 2.88 3.45 4.14 5.08 6.26 7.51 8.73 9.99 10.83 11.78 12.61 13.47 14.26 9.53 0.00 30.58 26.10 20.60
Coal 10.64 11.61 7.17 9.18 10.14 10.22 10.50 13.67 14.44 14.98 15.47 15.98 16.10 16.29 16.42 16.22 16.09 15.96 15.75 15.17 14.77 14.12 13.14 11.98 10.91 9.66 8.38 31.74 10.18 4.36 2.00 -1.12
Bioethanol - - 0.17 0.22 0.19 0.19 0.19 0.15 0.15 0.16 0.17 0.18 0.20 0.21 0.23 0.24 0.26 0.28 0.31 0.33 0.35 0.37 0.40 0.42 0.45 0.48 0.50 0.57 -3.25 3.10 4.43 4.86
Total Net Import 28.10 31.68 25.01 28.22 29.55 28.76 26.50 30.36 32.17 33.27 34.78 37.28 38.94 40.92 43.18 45.21 47.58 50.32 53.25 56.05 59.03 61.78 64.14 66.40 68.72 70.95 73.25 100 7.03 6.03 5.81 5.22
ANNEXES
271
POLICIES AND STANDARDS
POLICIES, REGULATIONS
AND STANDARDS
POLICIES
POLICY NO. TITLE DATE ISSUED
Conventional Energy
2020
Department Circular Upstream Petroleum Operations Safety, Health and Environment 22 April 2020
(DC) 2020-04-0010 Rules and Regulations
DC 2020-02-0006 Rules and Regulations for the Selection, Review and Approval 03 February 2020
of Farm-out of PNOC Exploration Corporation (PNOC EC)
Petroleum Service Contracts (PSCs) in Favor of Third Parties
and Farm-in of PNOC EC into Existing PSCs
2019
Executive Order Rationalizing the Rules for the Engagement of Third-Party 28 May 2019
(EO) 80 Participants under Petroleum Service Contracts, Repealing for
the Purpose Executive Order No. 556
2018
DC 2018-12-0028 Coal Mine Safety and Health Rules and Regulation 28 December 2018
DC 2018-03-0006 Omnibus Rules and Regulations Governing Tax-Exempt 15 March 2018
Importations for Petroleum Operations under Presidential
Decree No. 87, as amended and Coal operations under
Presidential Decree No. 972, as amended
2017
DC 2017-12-0017 Adopting the Philippine Conventional Energy Contracting 27 December 2017
Program (PCECP) of Awarding Petroleum Service Contracts
(PSCs) and Creating the Review and Evaluation Committee
(REC)
DC 2017-09-0010 Adopting the Philippine Conventional Energy Contracting 13 September 2017
Program (PCECP) of Awarding Coal Operating Contracts (COC)
and Creating the Review and Evaluation Committee (REC)
Downstream Industry
2021
DC2021-09-0029 Guidelines on Notices and Reportorial Requirements Pursuant to 16 September 2021
the Downstream Oil Industry Deregulation Act
DC2021-09-0028 Establishing the Philippine Strategic Petroleum Reserve 16 September 2021
Program
DC 2021-06-0014 Revised Circular on Accreditation and Submission of Notices 03 June 2021
and Reports by Refiners, Importers and Own Users of Gasoline
and Diesel pursuant to Biofuels Act.
2020
DC 2020-12-0025 Implementing the Philippine National Standards Specification for 09 December 2020
Kerosene (PNS/DOE QS 009:2019)
DC 2020-05-0012 Guidelines Implementing the Temporary Modification of Import 11 May 2020
Duty Rates on Crude Petroleum Oil and Refined Petroleum
Products as Provided Under Executive Order (E.O.) No. 113.
EO 113 Temporarily Modifying the Rates of Import Duty on Crude 02 May 2020
Petroleum Oil and Refined Petroleum Products under Section


1611 of Republic Act (RA) No. 10683, Otherwise known as the
“Customs Modernization and Tariff Act”
DC 2020-03-0007 Amending Certain Sections of Department Circulars No. 2007- 26 February 2020
02-0001 entitled "Guidelines Implementing the Registration of
Fuel Additives under Republic Act Nos. 8479 and 8749"
2019
DC 2019-06-0009 Implementing the Modified Philippine National Standard 06 June 2019
Specifications for Liquefied Petroleum Gases (PNS/DOE QS
005:2016 and PNS/DOE QS 012:2016)
DC 2019-05-0008 Revised Guidelines for the Monitoring of Prices in the Sale of 28 May 2019
Petroleum Products by the Downstream Oil Industry in the
Philippines
DC 2019-05-0006 Implementing the Specifications for PNS/DOE QS 004:2017 15 May 2019
CME-Blended Automotive Diesel Oil and PNS/DOE QS 013:2017
CME-Blended Industrial Diesel Oil –Specifications
DC 2019-02-0005 Proper Retention of Duplicate Liquid Petroleum Fuel Samples in 13 February 2019
Depots and Retail Outlets
DC 2019-02-0002 Implementing the Specifications for PNS/DOE QS 008:2018, E- 07 February 2019
Gasoline Fuel – Specification
DC 2019-02-0004 Implementing the Natural Gas Quality Standard for all Natural 01 February 2019
Gas Supply in the Philippines
2018
DC 2018-07-0020 Prescribing the Guidelines for the Development and Utilization of 18 July 2018
Small or Sub-Commercial Deposits of Natural Marsh Gas or
Methane Gas in the Philippines, and Granting Gratuitous Permits
Thereof
DC 2018-03-0006 Omnibus Rules and Regulations Governing Tax-Exempt 15 March 2018
Importations for Petroleum Operations under Presidential
Decree No. 87, as amended and Coal operations under
Presidential Decree No. 972, as amended
DC 2018-03-0004 Prohibiting the Sale and Distribution of Small-sized 2.7 Kg 01 February 2018
Capacity and Below LPG Cylinders Without the Required "For
Outdoor Use Only" Marking in Addition to the Usual Mandatory
Markings for LPG Cylinders, and for Other Purposes
Renewable Energy
2021
DC 2021-06-0016 Geothermal Safety, Health and Environment Code of Practice 11 June 2021
DC 2021-06-0017 Hydropower Safety, Health and Environment Code of Practice 11 June 2021
DC 2021-06-0018 Solar Safety, Health and Environment Code of Practice 11 June 2021
DC 2021-06-0019 Wind Safety, Health and Environment Code of Practice 11 June 2021
DC 2021-06-0020 Biomass and Biofuels Safety, Health and Environment Code of 11 June 2021
Practice
2020
DC 2020-10-0022 Prescribing the policies to Enhance the Net-Metering Program 22 October 2020
for Renewable Energy Systems. The DC aims to encourage and
further promote electricity End-Users’ participation in the Net-
Metering Program by enhancing the current policies and
commercial arrangements, while ensuring the economic and
technical viability of the DU
DC 2020-11-0024 Adopting the Guidelines Governing the 3rd Open and 20 October 2020
Competitive Selection Process (OCSP3) in the Award of
Renewable Energy Service Contract, and for Other Purposes
DC 2020-07-0017 Promulgating the Guidelines Governing the Policy for the 14 July 2020
Conduct of Green Energy Auction in the Philippines" or simply
“Green Energy Auction Program (GEAP). It sets the framework
for which the DOE shall facilitate the procurement of supply from
RE projects by the mandated participants under the RPS on-grid
rules through a competitive process for compliance with the RPS
program and as applicable for their long-term power supply
requirements
DC 2020-04-0009 Guidelines Governing the issuance of Operating Permits to 22 April 2020
Renewable Energy Suppliers under the Green Energy Option


Program prescribing the guidelines and procedures in the
issuance, administration, and revocation of GEOP Operating
permits to RE Suppliers.
Administrative Order Eliminate overregulation and improve the government system in 27 February 2020
(AO) 23 delivering services to the people.
DC 2020-02-0005 Guidelines on the Duty-Free Importation and Monitoring of the 13 February 2020
Utilization of RE machinery, equipment, materials and spare
parts and their transfer and other disposition.
2019
DC 2019-12-0016 Promulgating the Renewable Energy Market Rules issued on 4 04 December 2019
December 2019. This establishes the market for the trading of
RE Certificates (RECs) between and among trading participants.
DC 2019-10-0013 Promulgating the Omnibus Guidelines governing the awarding 01 October 2019
and administration of RE contracts and the registration of RE
developers. Under said DC, RE projects for own-use and/or RE
projects for Non-Commercial Purposes shall not require the
issuance of RE Contracts but shall comply with the registration
requirements provided under the circular.
2018
Department Order Adopting the Guidelines for the Operationalization of the 23 October 2018
(DO) 2018-10-0018 Renewable Energy Trust Fund (RETF) issued on 23 October
2018. The RETF shall be used to finance research, development,
demonstration, and promotion of the widespread and productive
use of RE systems both for power and non-power applications.
DC 2018-09-0027 Establishment and Development of Competitive Renewable 13 September 2018
Energy Zones (CREZ) and upgrade and expand transmission
facilities through policy initiatives and activities that shall enable
the optimal use of the indigenous RE resources of the country
DC 2018-08-0024 Promulgating the Rules and Guidelines Governing the 24 August 2018
Establishment of Renewable Portfolio Standards for Off-Grid
Areas
DC 2018-07-0019 Promulgating the Rules and Guidelines Governing the 18 July 2018
Establishment of the Green Energy Option Program which
provides end-users the option to choose RE resources as their
source of energy.
2017
DC 2017-12-0015 Renewable Portfolio Standard (RPS) for On-Grid Areas issued 22 December 2017
on 22 December 2017. The RPS is a market -based policy
mechanism under the RE law that requires load-serving entities
to source an agreed portion of their energy supply from eligible
RE facilities.
DO 2017-04-005 Prescribing the new guidelines in the processing of applications 07 April 2017
for Renewable Energy Service/Operating Contacts that shortens
evaluation of RE applications
Power Development
2021
DC 2021-09-0030 Amending Certain Provisions of and Supplementing Department 24 September
Circular No. 2018-02-0003 on the Competitive Selection Process 2021
in the Procurement by the Distribution Utilities of Power Supply
Agreement for the Captive Market
DC 2021-07-0024 Adopting Further Amendments to the Wholesale Electricity Spot 09 July 2021
Market (WESM) Rules for the Operation of the Renewable Energy
Market
DC 2021-07-0022 Adopting Further Amendments to the Wholesale Electricity Spot 25 June 2021
Market (WESM) Market Manuals on Constraint Violation
Coefficients and Pricing Re-runs for the Implementation of
Self-Scheduled Generation)
DC 2021-06-0015 Declaring the Commercial Operations of the Enhanced Wholesale 25 June 2021
Electricity Spot Market (WESM) Design and Providing Further
Policies


DC 2021-06-0013 Adopting A General Framework Governing the Test and 03 June 2021
Commissioning of Generation Facilities for Ensuring Readiness to
Deliver Energy to the Grid or Distribution Network
Market (WESM) Rules, Retail Rules and Various Market Manuals
Operations (Provisions to Promote Participation in Retail
Competition)
DC 2021-03-0009 Adopting A General Framework Governing the Operationalization 17 March 2021
of the Reserve Market in the Wholesale Electricity Spot Market
and Providing further Policies to Supplement DC2019-12-0018
DC 2021-03-0004 Adopting Further Amendments to the Wholesale Electricity Spot 16 March 2021
Market (WESM) Rules and Market Manual on Procedures for the
Monitoring of Forecast Accuracy Standards for Must Dispatch
Generating Units for the Implementation of Enhancements to
WESM Design and Operations
Market (WESM) Market Manual on Load Forecasting
Methodology for the Implementation of Enhancements to WESM
Design and Operations
Market (WESM) Market Manual on Dispatch Protocol for the
Implementation of Enhancements to WESM Design and
Operations
Market (WESM) Market Manual on Management of Net
Settlement Surplus
Market (WESM) Market Manuals for the Implementation of Policy
and Framework Governing the Operations of Embedded
Generators
DC 2021-03-003 Prescribing the Policy and Guidelines for the Formulation of the 02 March 2021
Distribution Utilities Distribution Development Plan Integrating the
Relevant Laws, Policy Issuances, Rules and Regulations
DC 2021-02-0002 Adopting the Wholesale Electricity Spot Market (WESM) Industry 24 February 2021
Code of Ethics
2020
DC 2020-10-0021 Adopting Further Amendments to the Wholesale Electricity Spot 22 October 2020
Market (WESM) (Provisions for the Implementation of
Independent Market Operator)
DC. 2020-10-0019 Adopting Further Amendments to the Wholesale Electricity Spot 06 October 2020
Market (WESM) Rules and Market Manual on Registration,
Suspension and De-registration, and Market Network Model
Development and Maintenance for the Implementation of
the New Load Facility of a Registered WESM Member)
DC 2020-10-0020 Adopting Further Amendments to the Wholesale Electricity Spot 06 October 2020
Market (WESM) Market Manual on Dispatch Protocol for the
Operations (Provisions for the WESM Timetable)
DO2020-06-0009 Organizing the Creation and Composition of the Ancillary 23 June 2020
Services – Technical Working Group
Market (WESM) Rules and Market Manual on Billing and
Settlement for the Implementation of Enhancements to WESM
Design and Operations (Provisions for Prudential Requirements)
Market (WESM) Rules and Market Manual on Registration,
Suspension and De-registration Criteria and Procedures for the
Operations (Provisions for Registration of New Facility and


Harmonization with the Republic Act No.11234 entitled “An Act
Establishing the Energy Virtual One-Stop Shop)
DC 2020-05-0011 Supplementing Department Circular No. DC2019-12-0018 by 11 May 2020
Including the National Transmission Corporation in the
Membership of the Ancillary Services - Technical Working Group
DC 2020-04-0008 Rationalizing the Utilization of ER 1-94 by LGUs in Response to 06 April 2020
COVID-19 Public Health Emergency
DC 2020-01-0002 The Implementing Rules and Regulations of Republic Act No. 06 February 2020
11361, Otherwise known as the “Anti-Obstruction of Power Lines
Act”
DC2020-02-0002 The Implementing Rules and Regulations of Republic Act No. 06 February 2020
11361, otherwise known as the "Anti-Obstruction of Power Lines
Act
DC 2020-02-0003 Providing a National Smart Grid Policy Framework for the 06 February 2020
Philippine Electric Power Industry and Roadmap for Distribution
Utilities
DC 2020-02-0004 Providing Guidelines on the Planned Outage Schedules of Power 06 February 2020
Plants and Transmission Facilities and the Public Posting of the
Grid Operating and Maintenance Program
DC 2020-01-0001 Prescribing the Rules Governing the Review and Evaluation of 9 January 2020
Direct Connection Applications of Industrial, Commercial and
Other Electricity End-Users
2019
DC 2019-12-0017 Adopting Further Amendments to the Wholesale Electricity Spot 04 December 2019
Market (WESM) Rules and Market Manual on Guidelines on
Significant Variations In and between Trading Intervals to Refine
Publication Procedures
DC 2019-12-0018 Adopting a General Framework Governing the Provision and 04 December 2019
Utilization of Ancillary Services in the Grid
DC 2019-11-0015 Prescribing Revised Guidelines for Qualified Third Party 22 November 2019
DC 2019-08-0012 Providing a Framework for Energy Storage System in the Electric 01 August 2019
Power Industry
DC 2019-07-0011 Amending Various Issuances on the Implementation of the Retail 29 July 2019
Competition and Open Access (RCOA)
DC 2019-06-0010 Prescribing the Administrative Operating Guidelines for the 14 June 2019
Availment and Utilization of Financial Benefits by the Indigenous
Cultural Communities/Indigenous Peoples pursuant to the DOE
Department Circular No. DC2018-03-0005
DC 2019-02-0003 Providing for the Framework Governing the Operations of 08 February 2019
Embedded Generators
DC 2019-01-0001 Prescribing the Omnibus Guidelines on Enhancing Off-Grid 25 January 2019
Power Development and Operation
2018
DC 2018-09-0026 Adopting Framework for Uniform Monthly Electricity Bill Format 24 August 2018
Market (WESM) Rules and Market Manuals (Transitory Provisions
for the Implementation of WESM in Mindanao)
DO 2018-05-0010 Creation of a Task Force to Ensure Access to Electricity for the 24 May 2018
Communities that Remain Unserved and Underserved by
Distribution Utilities
DC 2018-05-0016 Adopting Further Amendments to the Wholesale Electricity Spot 18 May 2018
Market (WESM) Rules and Market Manual on Dispute Resolution
DC 2018-05-0015 Adopting Further Amendments to the Wholesale Electricity Spot 16 May 2018
Market (WESM) Rules and Market Manuals for the
Operations
Market (WESM) Rules and Market Manuel on Dispatch Protocol
Operations
Market (WESM) Market Manuals on Billing and Settlement and


Load Forecasting Methodology for the Implementation of
DC 2018-04-0009 Adopting Further Amendments to the Retail Rules and Its Market 28 March 2018
Manual on Metering Standards and Procedures for the
Operations
Market (WESM) Rules, Retail and Retail Market Manual on
Metering for Clarifications on Retail Market Integration
Market (WESM) Market Manual on Market Operator Information
Disclosure and Confidentiality for the Implementation of
Market (WESM) Market Manuals on Price Determination
Methodology and Constraint Violation Coefficients and Pricing
Re-Run for the Implementation of Enhancements to WESM
Design and Operations
DC 2018-03-0005 Prescribing the Guidelines Recognizing the Rights of Indigenous 09 February 2018
Cultural Communities (ICCs)/Indigenous Peoples (IPs) in their
Ancestral Domains and Access to the Financial Benefits as Host
Communities under the ER 1-94 Program and Rule 29 (A) of the
Implementing Rules and Regulations of Republic Act No. 9136,
Otherwise Known as, "Electric Power Industry Reform Act of
2001"
DC 2018-02-0003 Adopting and Prescribing the Policy for the Competitive Selection 01 February 2018
Process in the Procurement by the Distribution Utilities of Power
Supply Agreement for the Captive Market
DC 2018-01-0001 Adoption of Energy Resiliency in the Planning and Programming 17 January 2018
of the Energy Sector to Mitigate the Potential Impacts of Disasters
DC 2018-01-0002 Adopting Policies for the Effective and Efficient Transition to the 17 January 2018
Independent Market Operator for the Wholesale Electricity Spot
Market
2017
DC 2017-04-0004 Adopting Further Amendments to the Wholesale Electricity Spot 20 April 2017
Market (WESM) Rules and Market Manuals (Provisions on
Registration)
DC 2017-12-0006 Adopting the Guidelines for the Performance Assessment and 28 December 2017
Audit of All Power Generation, Transmission, and Distribution
System and Facilities
DC 2017-12-0016 Adopting the Guidelines for the Performance Assessment and 28 December 2017
Audit of All Power Generation, Transmission and Distribution
Systems and Facilities
DC 2017-12-0015 Promulgating the Rules and Guidelines Governing the 22 December 2017
Establishment of the Renewable Portfolio Standards for On-Grid
Areas
DC 2017-12-0013 Providing Policies on the Implementation of Retail Competition 29 November 2017
and Open Access (RCOA) for Contestable Customers in the
Philippines Electric Power Industry
DC 2017-12-0014 Providing Policies on the Implementation of Retail Competition 29 November 2017
and Open Access (RCOA) for Retail Electricity Suppliers (RES) in
the Philippine Electric Power Industry
DC 2017-05-0009 Declaring the Launch of the Wholesale Electricity Spot Market 04 May 2017
(WESM) In Mindanao And Providing for Transition Guidelines
DC 2017-05-0008 Providing for the Policies and Guidelines on the Conduct of 03 May 2017
Performance Assessment and Audit for All Power Generation,
Transmission and Distribution Systems and Facilities
DC 2017-04-0003 Adopting the wholesale electricity spot market (WESM) Market 20 April 2017
Manual on Guidelines Governing the Constitution of PEM Board
Committees and its Further Amendments


DC 2017-04-0005 Adopting the Wholesale Electricity Spot Market (WESM) Market 20 April 2017
Manual on the Management of Net settlement Surplus and its
Further Amendments
DC 2017-04-0006 Adopting Further Amendments to the WESM Rules and Market 20 April 2017
Manuals
DC 2017-04-0007 Adopting the Wholesale Electricity Spot Market (WESM) Market 20 April 2017
Manual on Dispatch Protocol and Its Further Amendments
DC 2017-03-0002 Adopting the various wholesale electricity spot market (WESM) 20 March 2017
market manuals and their further amendments for the
implementation of must dispatch and priority dispatch generating
units in the WESM
2016
DC 2016-10-0014 Adopting Further Amendments to the WESM Rules 14 October 2016
(Enhancements to WESM Design and Operations)

2021
IAEEC Resolution Directing All Government Entities, Including the Local 7 October 2021
No. 3, s. 2021 Government Units (LGUs) And Foreign Service Posts, To
Use Inverter Type Air-Conditioning Units Or Similar
Equivalent Technologies In Government Buildings And
Facilities As A Requirement For Compliance To The
Government Energy Management Program (GEMP)
DO2021-09-0014 Guidelines on Energy Efficiency Excellence Awards 15 September
2021
Inter-Agency Directing All Government Agencies, including the LGUs 17 June 2021
Energy Efficiency and Foreign Service Posts, to use Energy Efficient Light
and Conservation Emitting Diode (LED) Lamps in Government Buildings and
Committee Facilities as a Requirement for Compliance to the
(IAEECC) Government Energy Management Program (GEMP)
Resolution No. 2,
s. 2021
PELP IG AC Implementing Guidelines for the Philippine Energy 11 May 2021
Labeling Program for Air Conditioners
PELP IG REF Implementing Guidelines for the Philippine Energy 11 May 2021
Labeling Program for Refrigerating Appliances
PELP IG TV Implementing Guidelines for the Philippine Energy 11 May 2021
Labeling Program for Television Sets
PELP IG LIGHT Implementing Guidelines for the Philippine Energy 11 May 2021
Labeling Program for Lighting Products
PELP REMVCM Implementing Guidelines for the Philippine Energy 11 May 2021
Labeling Program on Registration, Enforcement,
Monitoring, Verification, and Compliance Mechanism
DC2021-05-0011 Guidelines for the Endorsement of Energy Efficiency Projects to 11 May 2021
the Board of Investments for Fiscal Incentives
DC 2021-01-0001 Guidelines for the Qualifications, Assessments, Registration, and 11 January 2021
Certification of Energy Conservation Officers CECO), Energy
Managers (CEM), and Energy Auditors (EA)
Inter-Agency Energy Directing All Government Agencies, including the LGUs and
Efficiency and Foreign Service Posts, to use Energy Efficient Light Emitting
Conservation Diode (LED) Lamps in Government Buildings and Facilities as a
Committee Requirement for Compliance to the Government Energy
(IAEECC) Resolution Management Program (GEMP)
No. 2, s. 2021
2020
DC 2020-12-0026 Adoption of the Guidelines on Energy Conserving Design of 22 December 2020
Building
DC 2020-10-0023 Prescribing Policy Framework for the Development of the Fuel 22 October 2020
Economy Rating, Fuel Economy Performance, and Related


Energy Efficiency and Conservation Policies for the Transport
Sector and other Support Infrastructures
DC 2020-09-0018 Guidelines in the Administration, Classification and Certification 09 September 2020
of Energy Service Company (ESCO)
IAEECC Directing All Government Agencies, including the LGUs 03 September
Resolution No. 1, and Foreign Service Posts, to Comply with GEMP, 2020
s. 2020 Ordering the Department of Energy to Conduct Energy
Audits and Spot Checks, and Submit Proposed
Improvements to the GEMP
DC 2020-06-0015 Prescribing the Guidelines of the Philippine Energy Labeling 15 June 2020
Program (PELP) for Compliance of Importers, Manufacturers,
Distributors and Dealers of Electrical Appliances and other
Energy-Consuming Products (ECP)
DC 2020-06-0016 Prescribing the Minimum Energy Performance for Products 15 June 2020
(MEPP) covered by the Philippine Energy Labeling Program
(PELP) for Compliance of Importers, Manufacturers, Distributors,
Dealers and Retailers of Energy-Consuming Products
Memorandum Directing All Designated Establishments under Commercial, 13 May 2020
Circular (MC) 2020- Industrial and Transport Sectors to Submit Energy Consumption
05-001 Reports
DO 2020-01-0002 Operationalization of the Strengthening of the Energy Utilization 28 January 2020
Management Bureau (EUMB), Support Services and Field
Offices in Accordance with Republic Act No. 11285 or the
Energy Efficiency and Conservation Act (EEC Act)
DO 2020-01-001 Organizing the Inter-Agency Energy Efficiency and Conservation 09 January 2020
Committee
DC 2020-01-0001 Prescribing the Rules Governing the Review and Evaluation of 09 January 2020
Direct Connection Applications of Industrial, Commercial, and
other Electricity End-users
IAEECC Resolution Directing All Government Agencies, including the LGUs and
No. 1, s. 2020 Foreign Service Posts, to Comply with GEMP, Ordering the
Department of Energy to Conduct Energy Audits and Spot
Checks, and Submit Proposed Improvements to the GEMP
2019
DC 2019-11-0014 Implementing Rules and Regulations of Republic Act No. 11285 21 December 2019
(Energy Efficiency and Conservation Act)
2016
DC 2016-04-0005 Declaring the Compliance of Importers, Manufacturers, 28 April 2016
Distributors and Dealers of Electrical Appliances and Other
Energy-Consuming Products with the Philippine Energy
Standards and Labelling Program (PESLP) as a policy of the
Government
Alternative Fuels Energy Technology
2021
DC 2021-07-0023 Providing for a Policy Framework on the Guidelines for the 09 July 2021
Development, Establishment, and Operation of Electric Vehicle
Charging Stations (EVCS) in the Philippines
2020
DC 2020-10-0023 Prescribing Policy Framework for the Development of the Fuel 22 October 2020
Economy Rating, Fuel Economy Performance, and Related
Energy Efficiency and Conservation Policies for the Transport
Sector and other Support Infrastructures
EO 116 Directing a Study for the Adoption of a National Position on 24 July 2020
Nuclear Energy Program, constituting a Nuclear Energy Program
Inter-Agency Committee, and for Other Purposes”
2019
DO 2019-07-0015 Creation of the Special Financial Audit Team for the Alternative 18 July 2019
Fuels (AF) under the Natural Gas Vehicle Program for Public
Transport (NGVPPT).
2016


Joint Administration Creating the Technical Working Group (TWG) on the Use of Auto 15 October 2016
Order (JAO) No. 1 LPG as Fuel for Public Transport and for Other Related Purposes
Series of 2016
REGULATIONS
REGULATION TITLE DATE ISSUED
2020
Administrative Order Providing for a COVID-19 Response Protocol in the Energy 21 May 2020
(AO) 2020-05-0001 Sector
Energy Investment Coordinating Council
2020
DILG-DOE Joint Guidelines for LGUs to Facilitate the Implementation of Energy 30 April 2020
Memorandum Projects
Circular No. 2020-01
2019
DC 2019-05-0007 Rules and Regulations Implementing Republic Act No. 11234 28 May 2019
(Energy Virtual One-Stop Shop Act)
2018
DC 2018-04-0013 Implementing Rules and Regulations of Executive Order No. 30, 25 April 2018
series of 2017, Creating the Energy Investment Coordinating
Council in Order to Streamline the Regulatory Procedures
Affecting Energy Projects
Creating Wealth for The Filipino
RA 11310 An Act Institutionalizing the Pantawid Pamilyang Pilipino 27 May 2012
Program (4Ps)
RA 7042 Foreign Investments Act of 1991 13 June 1991
Conventional Energy
RA 11054 Bangsamoro Organic Law 10 August 2019
Renewable Energy
RA 9513 Renewable Energy Act of 2008 16 December 2008
RA 9367 Biofuels Act of 2006 12 January 2007
RA 9275 Philippine Clean Water Act of 2004 22 March 2004
Power Development
RA 11552 An Act Extending and Enhancing the Implementation of the 27 May 2021
Lifeline Rate, amending for the Purpose Section 73 of RA 9136,
otherwise known as the “EPIRA Act of 2001”, as amended by
RA 10150
RA 11234 An Act Establishing the Energy Virtual One-Stop Shop 08 March 2019
RA 9136 Electric Power Industry Reform Act (EPIRA) of 2001. 08 June 2001
RA 11393 An Act Authorizing Higher Education Curriculum Development 22 August 2019
and Graduate Training in Advanced Energy and Green Building
Technologies, and Appropriating Funds Therefore
RA 11285 Energy Efficiency and Conservation Act of 2019 22 May 2019
Alternative Fuels and Energy Technology
RA 11534 An Act Reforming the Corporate Income Tax and Incentives 26 March 2021
System, amending for the Purpose Sections 20, 22, 25, 27, 28,
29, 34, 40, 67, 109,116, 204 and 290 of the National internal
Revenue Code Of 1997, As Amended, And Creating Therein
New Title XIII, And for Other Purposes
RA 10963 An Act Amending Sections 5, 6, 24, 25, 27, 31, 32, 33, 34, 51, 19 December 2017
52, 56, 57, 58, 74, 79, 84, 86, 90, 91, 97, 99, 100, 101, 106, 107,
108, 109, 110, 112, 114, 116, 127, 128, 129, 145, 148, 149, 151,
155, 171, 174, 175, 177, 178, 179, 180, 181, 182, 183, 186, 188,
189, 190, 191, 192, 193, 194, 195, 196, 197, 232, 236, 237, 249,
254, 264, 269, and 288; Creating New Sections 51-A, 148-A,

REGULATION TITLE DATE ISSUED

150-A, 150-B, 237-A, 264-A, 264-B, and 265-A; and Repealing
Sections 35, 62, And 89; All Under Republic Act No. 8424,
Otherwise Known as the National Internal Revenue Code of
1997, as Amended, and for Other Purposes
Collaboration with the Attached Agencies
RA 1053 NEA Reform Act of 2013 15 May 2013
RA 7638 An Act Creating the Department of Energy Rationalizing the 09 December 1992
Organization and Functions of Government Agencies Related
To Energy and for Other Purposes
Promoting Energy Security Through Clean Energy Fuels and Technologies

RA 11203 An Act Liberalizing the Importation, Exportation and Trading of 14 February 2019
Rice, Lifting for the Purpose the Quantitative Import Restriction
on Rice, and For Other Purposes
QUALITY STANDARDS
TITLE DESCRIPTION DATE ISSUED
Product Quality Standards
I. Biofuels and Biofuels Blend
PNS/DOE QS PNS under the Biofuels Act 2009 (RA9367) in preparation for 27 November 2015
010:2015 – High the eventual mandate for Higher blend
Fame-Blended Diesel
Oils (B5) This is a new standard developed/formulated to addresses the
Specification** technical requirements of high FAME-blended diesel oil (B5)
and suitable test methods.
This is in support of future energy policy towards the integration

of higher biodiesel blends in the petroleum/fuel sector.
PNS/DOE QS PNS specifies the requirements for biodiesel (B100) for blending 27 November 2015
002:2015 – Coconut to diesel oil in the production of B2.
Methyl Ester (B100)
Specification* This standard is a revision/update of PNS/DOE QS 002:2007).
Said PNS specifies the requirement for coconut methyl ester

(B100) suitable for blending to diesel fuel for use in various types
of compression ignition engines and other similar types of
engines.
PNS/DOE QS PNS specifies the requirements for biofuel grade ethanol in pure 29 January 2014
007:2014 – form and denature for use as blending component in the
Anhydrous production of E10.
Bioethanol &
Bioethanol Fuel This standard is a revision/update of PNS/DOE QS 007:2005.
(E100 & E98)
Specification* Said PNS specifies the requirement for biofuel grade ethanol in
pure form (E100) and denatured (E98) for use as blending
component of automotive gasoline suitable for various types of
automotive spark ignition engine and other similar types of
engines.
II. Petroleum and other Petroleum Related Products
PNS/DOE QS This standard is a revision/update of PNS/DOE QS 009:2007 on 23 December 2019
09:2019 – property of flash point with two limits based on test method use
Implementing the and limiting the scope of kerosene to energy related
Philippine National applications, as well as updating the test method.
Standard
Specification for
Kerosene
PNS/DOE QS This standard is a revision/update of 2005 LPG specs. In this 22 December 2016
005:2016 – Liquefied edition improvement was made in the requirements on the use
Petroleum Gases


(LPG) As Non-Motor of odorant for health and safety consideration and updating of
Fuel Specification* test method.
Said PNS provided only the requirements for LPG as non-motor

fuel separate from LPG as motor fuel for effective
implementation and monitoring.
PNS/DOE QS This standard is a revision/update of 2005 LPG specs. In this 22 December 2016
012:2016 – Liquefied edition, a new PNS number was created to separate the
Petroleum Gases application of LPG as motor fuel from LPG as non-motor fuel
(LPG) As Motor Fuel (domestic, commercial and industrial fuel) which carried the
Specification* original designation PNS/DOE QS 005 for more effective
implementation and monitoring.
Said PNS provided only the requirements for LPG as motor fuel
separate from LPG as non-motor fuel for effective
implementation and monitoring. This is also in support of the
Philippine Government’s effort to promote the utilization of
alternative and clean fuel technology.
PNS/DOE ASTM The standard is derived from ASTM D 910-07A Standard 2010
D910:2010 – Aviation Specification for Aviation Gasoline and is limited only for Grade
Gasoline Grade 100ll 100LL all other grades are excluded for the purpose of
Specification** complying with the Clean Air Act of the Philippines.
PNS/DOE QS This standard is a revision/update of 1992 2T specs. In this
003:2003 – Two- edition the CME is consider as possible feedstock
Stroke (2t)
Lubricating Oil
Specification**
Facilities Standards and Code Safety Practices
Modules of The Modules aim to uphold and promote competency among 29 October 2019
Instruction for LPG the LPG Cylinder Refillers, which provide methodologies and set
Cylinder Refillers of conditions to ensure proficiency in the operational level.
Handbook on Code The Code constitutes good industry practices for oil terminals/ 19 September 2019
of Safety in Liquid depots and is designed to prevent accidents at LPP terminal/
Petroleum Products depot facilities and ensure product quality.
(LPP) Depot
PNS 05:2019 Road Code of practice for the use of liquefied petroleum gas (LPG) 30 August 2019
vehicles system in international combustion engine
PNS/DOE FS 9:2016 This Code of Safety Practices is intended for 2016
– Code of Safety managers/operators collectively referred to as Responsible
Practice in Auto-LPG Officer of Auto-LPG dispensing station focusing on safety and
Dispensing Pumps** good practice procedures with reference to relevant health and
safety standards. A retail outlet must have a Responsible officer
knowledgeable in:
a) Worker safety in the conduct of:
b) dispensing operation
c) product receiving
d) Personal Protective Equipment and its use
e) Relevant environmental regulations
f) Petroleum Product Material handling (MSDS)
g) Emergency response
PNS/DOE FS 8:2013 This standard covers operation and maintenance, reporting 2013
Transportation of requirements and other applicable provisions in the on-shore
Petroleum Product transportation via pipeline (as defined hereafter) of liquid
by Pipeline** petroleum products for white (such as but not limited to
gasoline, diesel, kerosene and jet A-1) and (such as but not
limited to) black (bunker fuel) products to ensure the safety of
the general public and pipeline workers and the protection of
the environment against the risk of petroleum contamination, fire
and other similar hazards in areas where the pipeline system
operates and/or traverses.


An operator may make arrangements with a third party for the
performance of any action required by this standard. However,
the operator is not thereby relieved from the responsibility for
compliance with any requirement of the same.
PNS/DOE FS 6:2011 This standard describes good engineering practices, as well as 2011
– Storing and safety, environmental and fire protection requirements for the
Handling f E-Gasoline storing and handling of E-gasoline in retail outlets.
In Retail Outlets**
This standard is an additional requirement that complements
PNS/DOE FS 1-1 to 1-4:2005 (Retail Outlet –Health, Safety and
Environment, Underground Storage Tank, Piping System and
Dispensing Pump).
PNS/DOE FS 7- This section covers the facilities, clearances and distances 2011
1:2011 – Storing and therein intended for retail outlets storing and handling up to B5
Handling of B-5 In and applicable to all kind of locations either with mid-block lot,
Retail Outlet – Health, corner lot and passing-thru lot.
Safety and
Environment**
PNS/DOE FS 7- This standard specifies the requirements for the following: 2011
2:2011 Storing and a) The tank for petroleum products used in retail outlet, refers
Handling of B-5 In to gasoline, diesel (up to B5), and kerosene tanks. It does
Retail Outlet – not include tanks for lube oils, aviation fuels, chemicals,
Underground solvents, asphalt, waste oil, water etc.
Storage Tank** b) Tank design performance and construction.
c) The installation and location of tanks at retail outlet.
d) Operations, periodic maintenance and eventual disposal of
the underground tank.
PNS/DOE FS 7- These recommended guides and procedures are applicable to 2011
3:2011 – Storing and sites where underground piping system for petroleum products
Handling of B-5 In will be used.
Retail Outlet – Piping
System ** This document covers the medium in which petroleum product
shall be conveyed from the point where the product is received
on its way to its storage tank, from the storage tank to the final
point of connection at the dispensing pump, and tank ventilation.
These guides are applicable for use with the following petroleum
products; gasoline, kerosene and diesel only.
Above ground piping for petroleum products are not covered by

these guidelines.
PNS/DOE FS 7- This standard shall include the design, installation and 2011
4:2011 – Storing and commissioning of self-contained dispensing pumps (suction
Handling of B-5 In pump) and dispenser (pressurized pump), and the connection
Retail Outlet – of product supply pipework, hoses and nozzles, electrical wiring
Dispensing Pumps** and communication cables.
Operation, periodic maintenance, decommissioning and

eventual disposal of the aboveground dispensing pumps and
dispensers.
Requalification of reconditioned pumps.

PNS/DOE FS 5:2010 This standard describes practices and requirements for the 2010
– Storing and storing, handling and fire protection of CME and CME diesel
Handling of Coco- blend at Liquid Petroleum Product Depots. For purposes of this
Methyl Ester (CME) standard Biodiesel is referred to as CME.
and CME -Diesel
Blends at Liquid
Petroleum Product
Depot**


PNS/DOE FS 4:2007 This standard covers the design and construction of depots and 2007
– Liquid Petroleum associated facilities involved in marketing/ redistribution of liquid
Product Depot** petroleum product. For purposes of this standard, liquid
petroleum products shall only refer to gasoline, diesel, kerosene
and bunker fuel. Biofuels and biofuel-blended petroleum
products shall be covered by a separate standard. Depot, also
referred to as terminals or installations consist of tank farms,
loading and unloading areas, pipeline manifolds, storage areas,
warehouses, docks, garages laboratories, and office buildings.
Products may be received, blended, and/or distributed by
pipeline, marine facilities (docks, piers, jetties, wharves), or
truck. Petroleum depots may also store and distribute petroleum
products in package and container quantities.
PNS/DOE FS 3:2006 This standard covers the requirements for the installation of 2006
– Auto-LPG auto-LPG dispensing stations for retail operation and garage-
Dispensing Pumps** based sites for on vehicle dispensing of LPG for vehicles of any
type.
If any dispensing for the general public can occur, the

installation becomes a retail station as defined, and specific
additional requirements apply. The additional requirement for
retail station is to adequately ensure public safety attendant to
the nature of operation.
This standard does not apply to forklift cylinder refilling. Only
fixed and vehicle-mounted fuel tanks are permitted for filling at
dispensing stations.
LPG cylinders for household use shall not be allowed for refill
in an auto-LPG dispensing station.
PNS/DOE FS 1- This standard covers the facilities, clearance and distances 2005
1:2005 Petroleum therein intended for retail outlet applicable to all kind of lots from
Products Retail mid-block lot, corner lot and passing thru-lot.
Outlet – Health,
Safety and
Environment**
PNS/DOE FS 1- This standard specifies the requirements for the following: 2005
2:2005 – Petroleum a) The tank for petroleum products used in Retail Outlet. This
Products Retail refers to gasoline, diesel, and kerosene tanks.
Outlet – b) Tank design performance and construction
Underground c) The installation and location of tanks at retail outlet
Storage Tank** d) Operations, periodic maintenance, and eventual disposal
of the underground tank
e) It does not include tanks for lube oils, aviation fuels,
chemical, solvents, asphalt, waste oil, water etc.
PNS/DOE FS 1- This standard is applicable to sites where underground piping 2005
3:2005 – Petroleum system for petroleum products will be used.
Products Retail
Outlet – Piping This standard covers the medium in which petroleum products;
System** gasoline, kerosene and diesel only.
Applicable for use with the following petroleum products;

gasoline, kerosene, and diesel only.
Aboveground piping for petroleum products are not covered
by these guidelines
PNS/DOE FS 1- This standard specifies: 2005
4:2005 –Petroleum The design, installation and commissioning of self-contained
Products Retail dispensing pumps (suction pump) and dispenser (pressurized
Outlet – Dispensing pump), and the connection of product supply pipework, hoses,
Pumps** nozzles, electrical wiring and communication cables; The
operation, periodic maintenance, decommissioning and
eventual disposal of the aboveground dispensing pumps and
dispensers; and the requalification of reconditioned pumps.


PNS/DOE FS 2:2018 This amends the existing standard to reduce the minimum
Amendment 1:2020 – separation distance between each of the fixed storage tank of
Liquefied Petroleum the bulk plant and the nearest point of the cylinder filling hall
Gas (LPG) Refilling from fifteen (15) to as low as three (3) meters provided that the
Plant – General specified conditions are met.
Requirements
* Mandated PNS with corresponding DC
** PNS serves only as reference or voluntary standard

For inquiries, please contact:
Felix William B. Fuentebella

Undersecretary
Jesus T. Tamang
Director, Energy Policy and Planning Bureau
Michael O. Sinocruz
Asst. Director, Energy Policy and Planning Bureau
PHILIPPINE ENERGY PLAN

Published Annually by the Department of Energy
DEPARTMENT OF ENERGY
Energy Center, Rizal Drive, Bonifacio Global City (BGC)
Taguig City, Philippines 1632
Telephone Nos. 8840-1780; 8479-2900 local 288,328
www.doe.gov.ph facebook.com/doe.gov.ph twitter.com/doe_ph

PEP 2020-2040 Signed 01102022

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Department

President Rodrigo R. Duterte sees climate change as a

And what does this hold for every Filipino?

It will mean a more energy-secured and resilient Philippines.

Mabuhay and keep safe everyone!

PHILIPPINE ENERGY PLAN 2020 - 2040

II. ENERGY ROADMAPS

PHILIPPINE ENERGY PLAN 2020 - 2040

ii PHILIPPINE ENERGY PLAN 2020 - 2040

Energy Efficiency and Conservation

Energy Supply and Demand Outlook

PHILIPPINE ENERGY PLAN 2020 - 2040 iii

Resiliency and Security of Energy Infrastructures

Collaboration with the Attached Agencies

Forging Strategic Alliances with the International Community

iv PHILIPPINE ENERGY PLAN 2020 - 2040

PHILIPPINE ENERGY PLAN 2020 - 2040 v

Energy Efficiency and Conservation

Alternative Fuels and Emerging Technologies

Energy Supply and Demand Outlook

vi PHILIPPINE ENERGY PLAN 2020 - 2040

Resiliency and Security of Energy Infrastructures

PHILIPPINE ENERGY PLAN 2020 - 2040 vii

viii PHILIPPINE ENERGY PLAN 2020 - 2040

PHILIPPINE ENERGY PLAN 2020 - 2040 ix

x PHILIPPINE ENERGY PLAN 2020 - 2040

EEC Efficiency in Electricity Consumption

PHILIPPINE ENERGY PLAN 2020 - 2040 xi

GPOBA Global Partnership on Output-Based Aid Grants

xii PHILIPPINE ENERGY PLAN 2020 - 2040

KMS Knowledge Management System

PHILIPPINE ENERGY PLAN 2020 - 2040 xiii

MSME Medium-Small and Micro-sized Establishment

xiv PHILIPPINE ENERGY PLAN 2020 - 2040

PALECO Palawan Electric Cooperative, Inc.

PHILIPPINE ENERGY PLAN 2020 - 2040 xv

PUVMP Public Utility Vehicle Modernization Program

xvi PHILIPPINE ENERGY PLAN 2020 - 2040

SFLs Single-Capped Fluorescent Lamps

PHILIPPINE ENERGY PLAN 2020 - 2040 xvii

UC-EC Universal Charge – Environment Charge

xviii PHILIPPINE ENERGY PLAN 2020 - 2040

Paving the path of transition into a more

To carry out the President’s instructions,

PHILIPPINE ENERGY PLAN 2020 - 2040 1

Cost Implications of Clean Energy Scenario

Philippines Commitment in the UNFCCC

2 PHILIPPINE ENERGY PLAN 2020 - 2040

Energy Roadmaps and Sustainable Development Goals

The PEP 2020-2040 Update is

PHILIPPINE ENERGY PLAN 2020 - 2040 3

The Energy Roadmaps provides an assessment

The Strategic Focus Areas depicts how the

Sustainable Path Towards Clean Energy

4 PHILIPPINE ENERGY PLAN 2020 - 2040

I. ENSURING ENERGY SERVICES 24/7

I. Total Final Energy Consumption

Total Final Energy Consumption by Fuel

Biomass4 for end-use applications contributed 21.8

Total Final Energy Consumption by Sector

PHILIPPINE ENERGY PLAN 2020 - 2040 5

Total industry output contracted by 13.2 percent as only the

Power Generation and Fuel Input