Bangsamoro Autonomous Region in

Muslim Mindanao (BARMM) Power

Sector Development Roadmap

<insert date of publication>

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Issue record <to be deleted in final report version>

Version Date Details

V1 May 26 2023 1st Version of the Draft Final Report

V2.1 June 20 2023 Work-in-progress 2nd version of the DFR

V2.2 June 26 2023 2nd version of DFR / Exec Summary

V3 June 30 2023 3rd version of DFR / Exec Summary

V4 July 7 2023 4th version of DFR

V4,1 July 13 2023 4th version of DFR with updated tables

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Table of Contents
TABLE OF CONTENTS 3
LIST OF TABLES 5
LIST OF FIGURES 6
ABBREVIATIONS 7
EXECUTIVE SUMMARY 10
BARMM POWER SECTOR ROADMAP TOWARDS CLEAN AND SUSTAINABLE ENERGY SYSTEMS 10
1. Socioeconomic background 10
2. Energy sector and Bangsamoro Government objectives 11
3. Power sector situation and challenges 11
4. Power sector development roadmap and opportunities for energy
transition 13
6. Financing the BARMM power sector development and energy transition19
I. INTRODUCTION 22
Socioeconomic Background 23
Socioeconomic challenges 25
Objectives of the Report 26
Structure of the Report 27
II. BARMM ENERGY AND POWER SECTOR SITUATION 29
Energy supply and demand 29
Distribution 34
Status of Electrification 37
Assessment of Energy Resources 38
Issues and Challenges 41
III. BARMM REGIONAL ENERGY POLICIES 48
The Bangsamoro Organic Law (BOL) 48
The Bangsamoro Development Plan 2023-2028 49
Relevant BARMM Legislations 54
The Intergovernmental Energy Board and Reference to the Philippine Energy Plan
and Mindanao Energy Plan 55
IV. POWER SECTOR DEVELOPMENT IN BARMM 57
On-grid Development 57
Off-grid Development 58

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 Wholesale Electricity Spot Market (WESM) Mindanao 59
Demand Side Management 60
Smart Grid Roadmap 61
Climate Change Resilience 63
V. POWER SECTOR ROADMAP AND NEXT STEPS 65
Power Sector Roadmap 68
Social and Environmental Impacts of Power Sector Development 71
Next Steps 76
VI. ENERGY TRANSITION OPPORTUNITIES 81
Energy Access (and Energy Security) 81
Renewable Energy 81
Energy Efficiency 83
Financing the Power Sector Roadmap and Energy Transition 84
LIST OF REFERENCES 92
VIII. ANNEXES 99
Annex 1: Consolidated FGD Outputs 99
Annex 2: Stakeholders Mapping and Analysis 115
Annex 3: Energy Indicators for Sustainable Energy Development 119
Annex 4: Disaggregated Data of Stakeholder Engagement (Key Informant
Interviews and Focus Group Discussions) 125

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List of Tables

TABLE 1. BARMM DEMOGRAPHIC SUMMARY 23

TABLE 2: BARMM POWER SUPPLY MIX BY FUEL TYPE, 2021 29
TABLE 3: LIST OF GENERATING FACILITIES AND POWER CAPACITY IN BARMM 30
TABLE 4: AGUS HYDROPOWER COMPLEX 30
TABLE 5: ELECTRICITY SUPPLY INSTALLED CAPACITY IN MINDANAO VS. BARMM REGION 30
TABLE 6: DISTRIBUTION UTILITIES SERVING BARMM 35
TABLE 7: ELECTRIFICATION LEVELS OF BARMM 37
TABLE 8 GEOTHERMAL POTENTIAL IN SELECT BARMM PROVINCES 38
TABLE 9: BIOMASS POTENTIAL IN SELECT BARMM PROVINCES 39
TABLE 10 SULU AND TAWI-TAWI OCEAN ENERGY POTENTIAL 39
TABLE 11: MACROECONOMIC TARGETS OF THE BDP 2023-2038 48
TABLE 12 AGUS 2 SWITCHYARD UPGRADING PROJECT 56
TABLE 13: POTENTIAL SOCIAL AND ENVIRONMENTAL IMPACT OF POWER SECTOR STRATEGIES AND PRIORITIES 71
TABLE 14: BARMM REGIONAL EXPENDITURES FOR FY 2023 84
TABLE 15: IRA DEPENDENCY OF REGIONS IN MINDANAO AS OF FY 2020 (BUREAU OF LOCAL GOVERNMENT
FINANCE, DOF) 86
TABLE 16:SOURCES OF REVENUES OF REGIONS IN MINDANAO AS OF FY 2020 (BUREAU OF LOCAL GOVERNMENT
FINANCE, DOF) 87
TABLE 17: COA CONSOLIDATED AUDIT REPORT FOR ODA (FY 2021, 2020, & 2019) 89
TABLE 18 CONSOLIDATED FGD OUTPUTS 98
TABLE 19: TIMELINE AND SPECIFIC TARGETS OF POWER AND ENERGY SECTOR OBJECTIVES 110
TABLE 20: TYPES OF STAKEHOLDERS 115
TABLE 21: POWER - INTEREST MATRIX FOR THE BARMM ENERGY AND POWER SECTORS 117
TABLE 22: EXPANDED SOCIAL AND ENVIRONMENTAL INDICATORSSOURCE: IAEA ET AL. (2005). 123
TABLE 23: FIRST MISSION – FOCUS GROUP DISCUSSION AND KIIS IN COTABATO CITY (27 – 30 MARCH 2023)
124
TABLE 24: SECOND MISSION – FOCUS GROUP DISCUSSION IN DAVAO CITY (27 APRIL 2023) 125
TABLE 25: KEY INFORMANT INTERVIEWS (MARCH TO APRIL 2023) 126
TABLE 26: FINAL WORKSHOP (ONLINE) 11 JULY 2023 128

List of Figures
FIGURE 1 BANGSAMORO AUTONOMOUS REGION IN MUSLIM MINDANAO (SOURCE: MENRE) 21
FIGURE 2: ENERGY DEMAND DISTRIBUTION (%MW) (SOURCE: MENRE) 28
FIGURE 3:ELECTRICITY SUPPLY INSTALLED CAPACITY IN MINDANAO VS. BARMM REGION 31
FIGURE 4: SMALL ISLAND GRIDS IN BARMM (SOURCE OF BASIC DATA: MEDP 2021-2025, P.38) 33

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FIGURE 5: SYSTEM MAP OF DISTRIBUTION UTILITIES OPERATING IN BARMM 36
FIGURE 6: RELIABILITY MAP OF DISTRIBUTION UTILITIES IN BARMM 41
FIGURE 7: ELECTRIFICATION STATUS IN HEALTH FACILITIES 42
FIGURE 8:IMPACT ON AGRICULTURAL AND FISHERIES FACILITIES 42
FIGURE 9: MBHTE PROJECTS IN MAINLAND BARMM 43
FIGURE 10: PROJECT POWER REQUIREMENTS OF MHSD IN THE BARMM REGION 43
FIGURE 11: ENERGY SUPPLY SECURITY IN THE ENHANCED 12-POINT AGENDA OF BARMM 49
FIGURE 12: BARMM ENERGY SECTOR OBJECTIVES 50
FIGURE 13: EXPECTED OUTCOMES OF ENERGY SECTOR OBJECTIVES 51
FIGURE 14: GUIDING PRINCIPLES OF BARMM ENERGY SECTOR DEVELOPMENT 52
FIGURE 15: SMART GRID ROAD MAP FOR DISTRIBUTION UTILITIES 61
FIGURE 16:TIMELINE AND SPECIFIC TARGETS OF POWER AND ENERGY SECTION OBJECTIVES IN BARMM (A) 65
FIGURE 17: TIMELINE AND SPECIFIC TARGETS OF POWER AND ENERGY SECTION OBJECTIVES IN BARMM (B) 66
FIGURE 18: POWER-INTEREST MATRIX 116

Abbreviations
AMI Advanced Metering Infrastructure

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BARMM Bangsamoro Autonomous Region in Muslim Mindanao

BASELCO Basilan Electric Cooperative

BASULTA Basilan, Sulu, and Tawi-Tawi

BCF billion cubic feet

BDP Bangsamoro Development Plan

BEDC Bangsamoro Economic Development Council

BLEP Barangay Line Extension Program

BOL Bangsamoro Organic Law

BPDA Bangsamoro Planning and Development Agency

BTA Bangsamoro Transition Authority

CASELCO Cagayan de Sulu Electric Cooperative

CLUP Comprehensive Land Use Plan

COA Commission on Audit

COLIGHT Cotabato Light and Power Company

COTELCO Cotabato Electric Cooperative

COTELCO-PPALMA Cotabato Electric Cooperative-PPALMA

CSOs Civil Society Organizations

DC DOE Department Circular

DEM digital elevation model

DOE Department of Energy

DOF Department of Finance

DSM Demand Side Management

DUs Distribution Utilities

ECs Electric Cooperatives

EDCB Energy Development Corporation of the Bangsamoro

EE&C Energy Efficiency and Conservation

ERC Energy Regulatory Commission

ETP Energy Transition Partnership

EU European Union

FGDs Focus Group Discussions

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GDP Gross Domestic Product

GEMP Government Energy Management Program

GHG greenhouse gases

GRDP Gross Regional Domestic Product

ICT Information Communications Technologies

IEB Intergovernmental Energy Board

IRA Internal Revenue Allotment

KIIs Key Informant Interviews

LASURECO Lanao del Sur Electric Cooperative

LGUs Local Government Units

MAFAR Ministry of Agriculture, Forestry and Agrarian Reform

MAGELCO Maguindanao Electric Cooperative

MBHTE Ministry of Basic, Higher, and Technical Education

MEDP Missionary Electrification Development Plan

MENRE Ministry of Environment, Natural Resouces, and Energy

MEP Mindanao Energy Plan

MFBM Ministry of Finance and Budget Management

MGSPs Microgrid System Providers

MHSD Ministry of Human Settlements and Development

MinDA Mindanao Development Authority

MMB million barrels

MOE Ministry of Energy

MVIP Mindanao-Visayas Interconnection Project

MW megawatt

NDC Nationally Determined Contributions

NEA National Electrification Administration

NEDA National Economic Development Authority

NGCP National Grid Corporation of the Philippines

NPC-SPUG National Power Corporation Small Power Utilities Group

NPPs New Power Producers

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NREL National Renewable Energy Laboratory

NREP National Renewable Energy Program

NTA National Tax Allotment

NTLs non-technical losses

ODA Official Development Assistance

PCEP Philippine Conventional Energy Contracting Program

PDP Power Development Plan

PEP Philippine Energy Plan

PIA Philippine Information Agency

PNA Philippine News Agency

PURE Productive Uses of Renewable Energy

QTPs Qualified Third Parties

RE Renewable Energy

RETs Renewable Energy Technologies

SEP Sitio Electrification Program

SGA Special Geographic Area

SIASELCO Siasi Electric Cooperative

SUKELCO Sultan Kudarat Electric Cooperative

SULECO Sulu Electric Cooperative

TAWELCO Tawi-Tawi Electric Cooperative

TDP Transmission Development Plan

TRANSCO National Transmission Company

UCME Universal Charge for Missionary Electrification

UNDP United Nations Development Programme

UNOPS United Nations Office for Project Services

WESM Wholesale Electricity Spot Market

WTE waste-to-energy

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Executive Summary

BARMM Power Sector Roadmap Towards Clean and Sustainable Energy Systems
This document provides a synopsis of the Bangsamoro Autonomous Region in Muslim
Mindanao’s power sector development through a low-carbon and sustainable pathway.
The Bangsamoro region has been experiencing economic growth since the Philippines
national government granted its autonomy. However, the energy sector, particularly the
power sector, must be strengthened with clear targets and efficient institutional
framework, policies, and programs. To guide this process, a Power Sector Development
Roadmap has been crafted based on five Strategic Objectives, namely, Sufficient and
Reliable Electric Power Industry; Improved Electrification Level; Potential Energy

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Resources and Facilities Explored, Developed, and Utilized; Energy Institutions
Established, Improved, and Harmonized; and Partnerships Established.

1. Socioeconomic background

The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) in the Philippines

was established following the ratification of the Bangsamoro Organic Law through a
two-part legally binding plebiscite held on January 21 and February 6, 2019. The region
encompasses three cities and 116 municipalities across the six provinces of Lanao del
Sur, Maguindanao del Norte, Maguindanao del Sur, Basilan, Sulu, and Tawi-Tawi. It also
includes the 63 barangays in North Cotabato, collectively called the Special Geographic
Area (SGA), which voted to be part of BARMM.

BARMM’s population, based on the 2020 Census, stands at approximately 4.9 million.
This accounts for 18.84% of Mindanao’s total population and 4.54% of the Philippines’
total population.1 Excluding the SGA, BARMM’s population grew at 3% per annum
between 2015 and 2020.2

Despite being affected by the COVID-19 pandemic, BARMM has had a strong and
balanced economic performance. Its gross regional domestic product (GRDP)
contributed less than 2% of the Philippines’ gross domestic product (GDP) per annum in
2019-2022 but has notably grown twice as fast as the country, at 8.6% compared to the
national GDP growth rate of 4.1% in the same period. The agriculture, fisheries, and
forestry sectors contributed 37% to BARMM’s GRDP and grew 11.3% annually in
2019-2022.3 The services sector also contributed 37% to GRDP and grew 5.5 % in the
same period. The industry sector contributed 26% but grew 9.9% annually during the
pandemic.

With a poverty incidence rate of 37.2% as of 2021, BARMM remains the poorest region
in the country.4 This, however, is a big improvement from 2018, when the poverty
incidence rate was 61.8%, particularly considering that the national poverty incidence
worsened from 16.7% to 18.1% during the same period, largely due to the pandemic.
Per capita income also increased by 21% during this period, from P55,039 to P66,423,
while the country registered only an 8.5% growth in per capita income.

2. Energy sector and Bangsamoro Government objectives

Table ES-1: Overview of the Bangsamoro Organic Law (BOL) and Bangsamoro
Development Plan (BDP) 2023 - 2028

1
PhilAtlas, 2023.
2
PIDS, 2023.
3
PIDS, 2023.
4
PIDS, 2023.

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 Shall make sure that the objectives of power sector investments and public
utility operations, which are among the powers of the BARMM government,
are achieved in a sustainable manner.
Bangsamoro Organic Law
Shall promote low carbon and sustainable power generation.

Shall aggressively promote distributed generation as part of the power

development plan.

Improve energy security through the exploration, development, and

utilization of energy resources, and improvement of the investment climate
Bangsamoro Development
for the energy sector to attract private investment and, in the process,
Plan 2023-2028
generate more jobs, create more revenue sources, and develop human
capital in the BARMM.

The energy sector is critical to BARMM's economic development while transitioning to

full autonomy. Particularly, the primary sectors would need power requirements to
enable their operations and sustain economic activities. The Bangsamoro Organic Law
stipulates that energy security shall be pursued through a low-carbon development
pathway. This is further strengthened in the Bangsamoro Development Plan 2023 -
2028.

3. Power sector situation and challenges

As part of the energy sector, the Bangsamoro Government has identified the power
sector as a priority area for development. It needs to address the following sectoral
challenges and take advantage of the growing regional economic performance of
BARMM.

3.1. The electrification rate in BARMM is less than 50%.

Based on the available data from 2020, the energy demand in BARMM was 119 MW,
which accounted for only 0.77% of the total demand in the Philippines and 5.93% of the
total peak demand in Mindanao. Considering that the region’s population represents
approximately 4% of the country’s total and 17% of Mindanao’s population, this points
to significant underserved and unserved demand for electricity services. Indeed,
according to the Bangsamoro Development Plan (BDP) 2023-2028 and the Department of
Energy (DOE), the household electrification level in BARMM is only 48% which is
significantly lower than the national average of 94.5% and the lowest among the regions
in the country. Excluding Cotabato City, which has an electrification level of 99%, the

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average electrification rate in BARMM provinces was only 43.7% as of December 2022.5
This translates to more than 300,000 households still without access to grid electricity.6

3.2. Poor-performing electric cooperatives serve BARMM.

Overall, BARMM is served by 11 power distribution utilities. This consists of a private
distribution utility, seven electric cooperatives operating within the BARMM territory,
and three electric cooperatives operating outside BARMM but providing electricity to
some municipalities and barangays within the region. These distribution utilities claim
100% coverage of all barangays in BARMM, including those in the SGA. However, all ECs
operating within BARMM are categorized by National Electrification Administration
(NEA) as poor-performing ECs.7 BASELCO, LASURECO, TAWELCO, and SULECO are
declared “ailing” or “red” ECs.8 On the other hand, MAGELCO, SIASELCO, and CASELCO
are “yellow-2” ECs.9 The low or poor performance of these ECs indicates their
unfavorable financial conditions.

5
This is based on the latest available data from the Department of Energy (DOE) and National Electrification
Administration (NEA).
6
Based on the NEA data, more than 350,000 of the potential connections remain unserved and on average, more than
90% of connections are residential or households.
7
NEA, 2022a, Memorandum: Calendar Year 2021 EC Overall Performance Assessment and Size Classification, 13 July
2022,
https://nea.gov.ph/ao39/powered_by_matrixmedia/Memorandum-to-ECs/2022/Memo%20to%20ECs%20No_%202022-33.
pdf

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. Ailing ECs fail to comply with all the criteria of key technical and financial performance standards and parameters,
which include cash general fund, collection efficiency, payment obligations, result of financial operations, net worth,
system loss, and system reliability.
9
NEA 2022b), Compliance Report on the Performance of Electric Cooperatives 4th Quarter 2022,
https://www.nea.gov.ph/ao39/phocadownload/ECs%20Classification/2022/Compliance%20Report%20on%20the%20Perf
ormance%20of%20ECs%20-%204th%20Quarter%20of%202022%20as%20of%205-3-23.pdf Yellow-2 ECs fail to comply
with four or more of the above-mentioned criteria.

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 3.3. Mainland BARMM is connected to the Mindanao Grid, while the island
provinces are off-grid.
A large part of BARMM comprises the province of Lanao del Sur, the two Maguindanao
provinces, Cotabato City, and the SGA represents more than 68% of the region’s land
area and more than 62% of its population. This is part of the Mindanao Grid that is now
interconnected to the Luzon and Visayas Grids. The other part of BARMM, which
comprises the island provinces of Basilan, Sulu, and Tawi-Tawi (BASULTA), represents
about 32% of the region’s total land area and about 38% of its population. This is
off-grid or disconnected from the Mindanao grid and consists of hundreds of small,
medium, and large islands. Electricity supply in BASULTA is available only in 11 island
mini-grids classified from very large island grids to small island grids, nine of which are
powered by the National Power Corporation Small Power Utilities Group (NPC-SPUG)
diesel generator sets (gensets). The rest of the islands in BASULTA (as well as unserved
areas in Lanao del Sur, Maguindanao del Norte, and Maguindanao del Sur) rely on solar
lights or solar home systems to power lamps and small electrical appliances and private
or family-owned diesel gensets or are without access to any electricity service.

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 4. Power sector development roadmap and opportunities for energy
transition

The BARMM Power Sector Development Roadmap aims to address the challenges
mentioned above of the power sector and contribute to the overall objective of the
energy sector, which is improved energy security through a low-carbon and sustainable
pathway.

The Roadmap features five (5) Strategic Objectives, namely: (1) Sufficient and Reliable
Electric Power Industry; (2) Improved Electrification Level; (3) Energy Institutions
Established, Improved and Harmonized; (4) Potential Energy Resources and Facilities,
Explored, Developed, and Utilized; and (5) Partnerships Established. To achieve these
Strategic Objectives, the Roadmap comprises corresponding Strategic Activities and
Targets over the short term (2023-2025), medium term (2026-2030), and long term
(2031-2040), as shown in Figure ES-2.

Beyond addressing the challenges of the power sector and contributing to energy
security, the BARMM Power Sector Roadmap presents opportunities for energy
transition and pursues the low-carbon development goals of the BOL.

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Figure ES-2: BARMM Power Sector Development Roadmap

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 4.1. Sufficient and Reliable Electric Power Industry
The first Strategic Objective highlights five key areas of focus, specifically, (a) improving the viability of
Electric Cooperatives (ECs), (b) putting measures for the effective and efficient institutional
management of the ECs, (c) providing system improvement projects, (d) improving payment or
collection efficiency of/for electricity consumers to 95% while limiting customer rate increases to 10%
or less, and (e) reducing power interruptions by 70% in the medium term. Furthermore, in the
medium to long term, BARMM aims for the electric utilities in the region to participate in the
wholesale electricity market (WESM), implement demand side management (DSM) programs, and
develop and implement smart grid roadmaps and energy resiliency plans. BARMM will work closely
with the National Government, particularly DOE, through the Intergovernmental Energy Board (IEB) to
develop and implement the corresponding policies. The implementation of these national power
sector policies and programs will not only make the BARMM power sector sufficient and reliable but
also efficient and resilient.

4.2. Improved Electrification Level

The second Strategic Objective aims to increase the electrification level to at least 80% by 2030. This
Strategic Objective also intends to improve access to electrification funds and programs in the
medium term and the reliability of the electric distribution network and non-network facilities through
infrastructure rehabilitation and improvement over the long term. To improve electrification levels,
particularly in off-grid areas or those not connected to the Mindanao grid, BARMM will explore
applying and implementing the Microgrid Systems Act, which aims to address the electrification of
unserved and underserved areas. Following the mandates of the BOL, BARMM will focus on
developing distributed renewable energy systems or sustainable power generation options in
implementing the Microgrid Systems Act. Integrating renewables in existing and new power systems
will also reduce electricity costs and thus dependence on subsidies.

BARMM is teeming with economic potential, specifically with rising electricity demands across all
sectors due to peace dividends and national and international attention and support the region
receives. Access to clean and affordable energy will be pivotal for the inclusive and equitable growth
and development of agriculture, commerce, communication, transportation, education, and
healthcare.

4.3. Potential Energy Resources and Facilities Explored, Developed and Utilized
BARMM will harness its abundant renewable energy resources, including solar, geothermal, biomass,
ocean, and hydropower energy, to support the region’s economic growth, improve social inclusion
and long-term environmental sustainability. The third Strategic Objective aspires to formulate and
operationalize roadmaps and master plans immediately and to rationalize an increase in government
spending on energy resource exploration and medium-term development. This Strategic Objective
also requires adopting renewable energy technologies in the short term. It encourages private

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investments in energy resources exploration and development, including policies for public-private
partnerships in the medium to long term. The BARMM government is now working with local
governments to streamline business processes for issuing permits and clearances in renewable
energy project development. Ensuring ease of doing business is expected to attract new capital in the
region further. In addition, the BARMM government, together with local governments, will identify
viable RE sites for development.

Electric cooperatives have roles to play in developing renewable energy resources and utilizing
RE-based power systems, particularly through implementing policy instruments in the Renewable
Energy Act, including net metering, renewable portfolio standard, green energy option, and the green
energy auction program.

4.4. Energy Institutions Established, Improved, and Harmonized

The BARMM energy sector also aims to establish appropriate energy institutions. Primarily, the BOL
also calls for establishing a separate Ministry of Energy (MOE). Thus, the Bangsamoro Transition
Authority (BTA) or the Bangsamoro Parliament has certified this as an urgent priority legislative
measure. Among the main mandates of the proposed MOE is power sector development, including
promoting the use of renewable energy for power generation to achieve sustainable development
goals and low-carbon or sustainable power generation policies. The BARMM energy sector aims to
explore, develop, and utilize potential (indigenous) energy resources and facilities. In this regard, the
BTA has also certified the creation of the Energy Development Corporation of the Bangsamoro (EDCB)
as an urgent priority bill.

4.5. Partnerships Established

This final Strategic Objective aims to establish new partnerships and improve existing ones among all
stakeholders involved in improving energy security in BARMM. This relates to the short, medium, and
long-term efforts needed to establish and/or strengthen the linkages, collaborations, and partnerships
of the BARMM government with the private sector, civil society organizations (CSOs), and international
firms and investors.

4.6. Next Steps

To help accomplish the Strategic Objectives, implement the Strategic Activities, and achieve Targets,
BARMM will undertake, in parallel, enabling activities towards Roadmap implementation. There are
the “Next Steps”, which include the following activities:

1. Building Understanding of the DU Electric Cooperative Model Among Consumers

2. Conducting Baseline Assessment of the Proposed Project Areas

3. Addressing Reliability and Stability Issues in Existing Infrastructure

4. Addressing Energy and Power Needs in a Just Fashion

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 5. Information, Education, and Communication Campaigns

6. Intergovernmental Coordination and Cooperation

7. Gaining Stakeholder Consensus for Energy Initiatives

8. Strengthening Financial Options and Viability

9. Improving Regulatory Mechanisms and Governing Institutions

These Next Steps are expected to enhance BARMM’s low-carbon development and energy transition.

The MOE and EDCB will be the main agencies leading the BARMM Power Sector Development
Roadmap implementation. The MOE and EDCB will also identify the other agencies in BARMM that will
take part in implementing specific strategies and activities. As indicated above, the IEB and the electric
utilities also have specific roles in implementing strategies and activities in the Power Sector
Development Roadmap.

5. Energy transition opportunities beyond power sector development

The development of renewable energy resources will also open job opportunities and encourage the
expansion of regional industries. For instance, using biomass resources can lead to job growth in the
agriculture and forestry industries, and hydropower development can lead to job growth in the
building and upkeep of power plants. Data from DOE shows that variable renewable energy
technologies (RETs, solar and wind) generate more jobs per kW or MW of installed capacity than
conventional RETs (hydropower and geothermal), particularly during construction.

BARMM will also work with the IEB, and other appropriate national and regional agencies, including
the Mindanao Development Agency (MinDA), to implement the policies and programs under the
National Renewable Energy Program 2020-2040. The National Renewable Energy Program (NREP)
2020-2040 aims to contribute to consumer and community empowerment by increasing the adoption
and application of renewable energy in rural areas. NREP aims not only to improve access to electricity
but also to exploit its applications in delivering basic social and economic services, particularly in the
agriculture, fisheries, health, and education sectors.

For example, under NREP’s RE for Agriculture and Fisheries Sector, BARMM will explore the application
and development of RE technologies for the agri-fishery sector, a major economic sector in BARMM.
The objective of the NREP program on Productive Uses of Renewable Energy (PURE) is to open
livelihood opportunities through community-based enterprises, augment income, and build resilience,
especially in off-grid areas. NREP, towards this end, has capacity-building programs for local
governments to undertake local renewable energy planning.

The Energy Efficiency and Conservation (EE&C) Act 2019 provides specific opportunities for the
BARMM regional and local governments to mainstream energy efficiency and conservation locally. The
19
EE&C Act mandates LGUs to set up a Local Energy Efficiency and Conservation Office and prepare a
Local Energy Efficiency and Conservation Plan. The EE&C Act is also institutionalizing and providing
strategic direction to the DOE flagship Government Energy Management Program (GEMP), which aims
to reduce the electricity and fuel consumption of public sector entities.

Developing renewable energy systems and using energy-efficient technologies can help reduce the
amount of harmful pollutants and greenhouse gas emissions that contribute to the problem of
climate change and the country’s Nationally Determined Contributions (NDC) commitment.10

6. Financing the BARMM power sector development and energy transition

The BOL has provisions to ensure the self-reliant, autonomous, and sustainable financing and
resource mobilization of the BARMM plans, programs, and projects, including the power sector.
Following Sections 15 and 18, Article XII of the BOL, the National Government shall provide an annual
block grant which shall be the share of the BARMM in the national internal revenue tax collections of
the Bureau of Internal Revenue and collections of the Bureau of Customs. Block grants are geared
towards enhancing the local government’s effectiveness as part of the broader decentralization goal
of BOL.11 Another factor for such block grants is to primarily control deficits and support the public
service delivery of the BARMM government.

Another source of funds for BARMM is the Special Development Fund, which allocates P5 billion per
year for 10 years from the enactment of the BOL in 2019. This fund is intended for rebuilding,
rehabilitation, and development of conflict-affected communities per Article XIV of the BOL.

To support the development efforts of BARMM, the enactment of the Republic Act No. 11439, or the
Islamic Banking Act in 2019, has instituted the policy framework for the organization and regulation of
Islamic banks in the country. Republic Act No. 6848, or the Charter of the Al-Amanah Islamic
Investment Bank, was also aimed to promote and accelerate the region’s socioeconomic development
by performing banking, financing, and investment operations, in agriculture, commercial and
industrial ventures. The Bank’s role is pivotal in financing the low-carbon transition investments in the
region, including how to make the region dynamic and an integral part of the national economy.

Due to the (still) limited financing and investment space in the region, the BARMM government will
also rely on Official Development Assistance (ODA) from various international and local development
partners. The bulk of the ODA in BARMM comes largely from the UN and the EU.12 The Bangsamoro
Planning and Development Authority (BPDA) has crafted the Official Development Assistance (ODA)

10
Through the NDC, the Philippines commits to a projected GHG emissions reduction and avoidance of 75%, of which 2.71% is unconditional
and 72.29% is conditional, representing the country’s ambition for GHG mitigation for the period 2020 to 2030 for the sectors of agriculture,
wastes, industry, transport, and energy. (REPUBLIC OF THE PHILIPPINES Nationally Determined Contribution Communicated to the UNFCCC
on 15 April 2021 https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Philippines%20First/Philippines%20-%20NDC.pdf
11
Mendoza, R. & Yusingco, M.H., 2029. Dissecting the BARMM Block Grant. ASOG Working Paper 19-011.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3409824
12
COA, 2019, 2020, 2021.
20
handbook that will serve as the basis for coordinating, monitoring, evaluating, and reporting all
proposed foreign-assisted programs and projects implemented in the BARMM.13

In addition, as indicated in the Roadmap, the BARMM encourages private investments, including
through public-private partnerships, towards developing the power sector in the region and achieving
its goal of improved energy security.

Acknowledgements

13
BPDA, 2020.
21
The Southeast Asia Energy Transition Partnership (ETP) brings together governments and
philanthropies to work with partner countries in the region to accelerate the energy transition. ETP
supports the transition towards modern energy systems that simultaneously ensure economic
growth, energy security, and environmental sustainability. Enabling the transition toward greener
energy systems will greatly contribute to achieving the UN's Sustainable Development Goals (SDGs)
and the Paris Climate Agreement objectives.

ETP has engaged Aquatera to develop a Bangsamoro Autonomous Region in Muslim Mindanao
(BARMM) Power Sector Development Roadmap to support the Ministry of Environment, Natural
Resources and Energy (MENRE) team lead by Director Nasiri Abas with team members including Chief
Al-Montazer Mandong, <insert name here of MENRE team> in shaping the region's power sector
policies towards clean and sustainable energy. The Aquatera team has also engaged national experts
to support the delivery of this work: Jessie Todoc (Technical Lead), Dr Michael Lochinvar Abundo and
Dr. Lloyd Bautista, Marianne Eleanor Catanyag and Anna Dominique Ortiz; and the research
assistants: Leonard Edward Travis, Janine Bragais, Jefferson Manrique, Christine Marie Tecson, Bryan
Escoto, Xavier Julian Fernandez, and Jean Rose Baylon. The Aquatera Project Management Team
includes Ian Hutchison and Dr Mary Ann Joy Franco.

The team also acknowledges all the participants of our Key Informant Interviews and Focus Group
Discussions and their valuable contribution to shaping this Report.

22
I. Introduction
The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) encompasses the
predominantly Muslim provinces of Maguindanao del Norte, Maguindanao del Sur, and Lanao
del Sur, which includes the city of Marawi, located in mainland Mindanao. It also includes the
island provinces of Basilan, which incorporates the city of Lamitan and Sulu and Tawi-Tawi. In
addition, the Islamic city of Marawi City in Lanao del Sur is also considered a component city
within BARMM. Notably, BARMM comprises the independent component city of Cotabato City
in Maguindanao del Norte while excluding the City of Isabela in Basilan. Moreover, BARMM
incorporates the Special Geographic Area (SGA) consisting of 63 barangays in North Cotabato,
although not their parent province and municipality. Overall, BARMM encompasses three
cities, 116 municipalities across the five provinces, and a total of 2,590 barangays, including
the SGA.

23
 Figure 1 Bangsamoro Autonomous Region in Muslim Mindanao (Source: MENRE)

BARMM was officially established in 2019 by ratifying the Bangsamoro Organic Law, replacing
the Autonomous Region in Muslim Mindanao (ARMM). This occurred after a two-part
plebiscite held on January 21 and February 6, 2019, in Western Mindanao.

On January 21, 2023, BARMM celebrated its fourth founding anniversary under the theme
"Sama-Samang Pagtataguyod Sa Mas Mapayapa At Mas Masaganang Bangsamoro" (United in
Maintaining a More Peaceful and More Prosperous Bangsamoro).

Socioeconomic Background
BARMM's population, as shown in Table 1, which is based on the 2020 Census, stands at
approximately 4.9 million. This accounts for 18.84% of Mindanao's total population and 4.54%
of the Philippines' overall population.14 Excluding the SGA, BARMM’s population was growing
at 3% per annum between the two census years of 2015 and 2020. Following the division of
Maguindanao into two provinces, Lanao del Sur now holds the largest population within
BARMM, with close to 1.2 million residents, followed closely by Sulu, with a population of one

14
Based on the 2020 Census population of the Philippines and Mindanao from PhilAtlas, https://www.philatlas.com/.

24
million. Additionally, Lanao del Sur retains its status as the largest province in land area,
encompassing 41% of BARMM's total land area. Notably, Cotabato City has the highest
population density in BARMM, with over 1,800 persons per square kilometer.

Table 1 below summarizes BARMM’s demography.

25
Table 1. BARMM demographic summary

Population Area Density

Province Capital Persons per Cities Municipalities Barangays
2020 Census % Sq. km. %
sq. km.
Basilan (except or
City of
excluding Isabela 426,207 8.62 3,453.42 9.38 123 1 11 210
Lamitan
City)
Lanao del Sur Marawi City 1,195,518 24.18 15,055.51 40.88 79 1 39 1,159
Maguindanao del Datu Odin
635,114 12.84 4,748 12.89 134 - 12 221
Norte Sinsuat
Maguindanao del Sur Buluan 707,065 14.30 5,220 14.17 135 - 24 287
Sulu Jolo 1,000,108 20.23 4,547.16 12.35 220 - 19 410
Tawi-Tawi Bongao 440,276 8.90 3,626.55 9.85 121 - 11 203
Cotabato City - 325,079 6.57 176.00 0.48 1,847 1 - 37
Special Geographic
- 215,433 4.36 - - - - - 63
Area (SGA)*
Total 4,944,800 100.00 36,826.64 100.00 128 3 116 2,590

*63 barangays in 6 municipalities of North Cotabato are part of BARMM, but the province and their parent municipalities are not part of BARMM.
Sources:
BARMM | Central Online Portal, http://barmm.ph/about.html
Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Profile – PhilAtlas, https://www.philatlas.com/
MENRE

26
During the start of the COVID-19 pandemic that immediately confronted BARMM following
its establishment, its GRDP contributed less than 2% to the Philippines GDP but has, since
then, grown twice as fast, at 8.6% in 2019-2022, against the GDP growth of 4.1% per annum
in the same period.

The agriculture, fisheries, and forestry sectors play a significant role in BARMM's regional
economy, contributing 37% to GRDP and growing 11.3% annually during the same period.
Notwithstanding the primary sector's contributions, BARMM may be considered a balanced
regional economy with the share of the industry and services sectors at 26% and 37%,
respectively, in 2022, and growing 9.9% and 5.5% in 2019-2022, respectively, despite the
pandemic.

Socioeconomic challenges
With 37.2% poverty incidence among the population as of 2022, BARMM remains the
poorest region in the country (PIDS, 2022). This, however, is a big improvement from 2018,
when the poverty incidence rate was 61.8%, particularly considering that the national
poverty incidence worsened from 16.7% to 18.1% during the same period, largely due to the
pandemic. Per capita income also increased by 21% during this period, from P55,039 to
P66,423, while the country registered only an 8.5% growth in per capita income.

The region's persistent poverty can be attributed to ongoing armed conflict, limited
livelihood opportunities, inadequate social services, weak institutions, and deep political,
cultural, and economic inequities. Generations of systemic injustice and armed violence have
further exacerbated these issues (BPDA 2020 – 2022, p. 2). BARMM experiences some of the
highest infant and maternal mortality levels and exhibits one of the lowest life expectancies
in the Philippines.

Contributing to the high poverty incidence and exacerbating the social conditions in BARMM
is the lack of access to and inadequacy of basic economic and social services and utilities,
including electricity, water, and sanitation. According to the latest data from the National
Electrification Administration (NEA), BARMM has the lowest electricity access in the country,
with an average access rate of only 48%.15 Water supply coverage is also significantly low, at
approximately 48%,16 with only a small portion of the population (7%) having access to Level
3 water supply and 8% with Level 2 access.17 The majority (85%) has limited access at Level

15
MENRE
16
https://water.org/documents/101/PWSF_MASTER_PPT.pdf, p. 20.
17
NEDA Board Resolution No. 12 (1995) defines the levels of water supply services in the country as follows:
● Level 1 (point source). A protected well or a developing spring with an outlet but without a distribution system.
● Level 2 (communal faucet system or stand post). A piped system with communal or public faucets.
● Level 3 (waterworks system) A fully reticulated system with individual house connections based on a daily water demand of
more than 100 liters per person.

27
1.18 Additionally, improved sanitation coverage is only around 20%.19 The COVID-19
pandemic has accentuated the situation's direness, particularly regarding access to water,
sanitation, and hygiene (WASH) facilities.

A 2021 multi-agency study highlighted the compounded impact of the COVID-19 pandemic
on women and children in BARMM Women engaged in the informal economy and temporary
jobs faced greater adverse social and economic effects from the epidemic. Many women
serve as heads of households with limited access to social safeguards. Children's education
was also severely disrupted due to school closures and households' inability to afford
gadgets amid the transition to online learning. The lack of sufficient ICT and energy
infrastructure and support further hindered children's educational progress.

Climate change poses an additional threat to the socioeconomic advancement of BARMM.

Based on the climate vulnerability assessment of the capital town of Bongao Island
(Tawi-Tawi) to sea level rise, storm surge and wave impacts, the islands of Tawi-Tawi will have
high sensitivity or vulnerability to these climate impacts depending on population, seagrass
(seaweeds) and coral cover, and presence of mangrove forests.20 The low-lying sections of
the islands make them highly susceptible to strong winds, storm surges and sea level rise. In
addition, the Tawi-Tawi rate of sea level rise is 8mm/year based on Burias’s estimates of sea
level changes in the Philippines between 1993 and 2009.21 The impact of extreme weather
events was evident when Tropical Storm Paeng struck BARMM in October 2022, affecting
over 500,000 individuals, causing approximately 60 casualties, and resulting in an estimated
loss of P586,096,553 in the agriculture and fishery sectors (Fernandez in PNA, 2022).

Objectives of the Report

With the opportunities created from the establishment of BARMM as well as the drive to
improve further and develop the socio-economic situation of the region, the Ministry of
Environment, Natural Resources and Energy (MENRE) collaborated with the Southeast Asia
Energy Transition Partner (SEA ETP) to lay the groundwork for the drafting of BARMM's
Power Sector Development Plan. ETP has engaged Aquatera to support this endeavor.

Specifically, the objectives of the Report are as follows:

18
https://pidswebs.pids.gov.ph/CDN/PUBLICATIONS/pidsdps2033.pdf, p. 8.
19
NEDA (2018), “The state of the water and sanitation Sector (WSS) in the Philippines,” presentation at the Philippine Water and
Saniation Forum, Ortigas, Pasig City, 10 May 2018. https://water.org/documents/101/PWSF_MASTER_PPT.pdf, p. 21.
20
Halun, Sitti Zayda B. (2014), “Vulnerability assessment of an island in Southern Philippines to climate change,” conference
paper, 99th ESA Annual Convention 2014, August,
https://www.researchgate.net/publication/267293548_Vulnerability_assessment_of_an_island_in_Southern_Philippines_to_clima
te_change
21
Burias, Dahlia P. et. al. (2021), “Climate change vulnerability assessment of islands in Tawi-Tawi, Southwestern Philippines”
(unpublished).

28
 ● To understand BARMM's energy outlook and the current power supply and demand
situation.
● To analyze existing energy sector policies to determine if they promote energy
transition, renewable energy, and energy efficiency.
● To analyze the energy governance structure in BARMM and the roles of relevant
stakeholders in energy planning.
● To assess the challenges and opportunities in energy transition and identify the
drivers of the energy transition process.
● To initiate the drafting of BARMM's Power Sector Development Plan.

To achieve these objectives, a number of Key Informant Interviews (KIIs) and Focus Group
Discussions (FGDs) with BARMM stakeholders were conducted by MENRE and the Aquatera
project team from March to May 2023. KIIs and FGDs served as primary data sources to
analyze BARMM’s energy outlook, policies and governance structure, and donor activities.
The KIIs helped examine the energy transition opportunities and challenges in power sector
development from the perspectives of the key energy and policy stakeholders in BARMM.
The interviews were also sources of stakeholders’ insights on potential solutions and
pathways to address such barriers. The FGDs were useful in validating initial findings and
recommendations. In total, there were 12 KIIs conducted, 2 FGDs with participation from the
following BARMM stakeholders:

● Members of Parliament (Bangsamoro Transition Authority)

● Bangsamoro Economic Development Council
● Bangsamoro International Development Assistance Council
● Bangsamoro Board of Investments
● Bangsamoro Planning and Development Authority
● Ministry of Science and Technology
● Ministry of Human Settlements and Development
● Ministry of Agriculture, Fisheries and Agrarian Reform
● Ministry of Finance and Budget Management
● Ministry of Transportation and Communications
● Ministry of Public Works
● Ministry of Interior and Local Government
● Ministry of Trade, Investments and Tourism

Structure of the Report

This Report is divided into six sections. As shown above, Section I Introduction presents the
socioeconomic background of BARMM and the objectives and structure of the Report.
Section I also acknowledges the consultations conducted with various BARMM ministries that
provided inputs to this Report, particularly the power sector roadmap. The results of these

29
consultations are summarized in the Annexes. Section II discusses the general energy and
power situation in BARMM, particularly its most pressing challenges. Section III presents the
overarching energy policies in BARMM in light of the Bangsamoro Organic Law (BOL) and the
Bangsamoro Development Plan (BDP) 2023-2028.

Section IV focuses on opportunities for developing the power sector in BARMM in the
context of national policies and programs. Building on Sections III and IV and considering the
outputs of stakeholders’ consultations, particularly recommendations to address the power
sector challenges, Section V presents the BARMM Power Sector Roadmap, including the
Strategic Objectives, Activities and Key Targets. This section also proposes as Next Steps a list
of parallel enabling activities while embarking on the Roadmap.

Section VI concludes this report by highlighting the energy transition opportunities in

BARMM in the context of the SDG 7 goal in general and through the Power Sector Roadmap
in particular. The section ends with financing opportunities for the energy transition and
power sector Roadmap.

30
II. BARMM Energy and Power Sector Situation

Energy supply and demand

Based on available data from 2020, the energy demand in BARMM was 119 MW, which
accounted for only 0.77% of the total demand in the Philippines and 5.93% of the total peak
demand in Mindanao (see Figure 2). Considering that the region's population represents
approximately 4% of the country's total and 17% of Mindanao's population, this strongly
indicates a significant underserved and/or unserved demand for electricity.

Figure 2: Energy Demand Distribution (%MW) (Source: MENRE)

According to the DOE Power Statistics updated in December 2021, fossil energy sources for
power generation constitute 91.6% of the main energy sources in BARMM provinces, while
renewable energy sources contribute the remaining 8.4%. Two years later, a 180-degree shift
in the energy mix was seen, with RE now taking 56.40% of the supply. Meanwhile,
fossil-based electricity generation only accounts for 43.60% of the mix. Shown in Table 5 is
the current installed capacity distribution of the energy mix in BARMM.

31
Table 2: BARMM Power Supply Mix by Fuel type, 2021
Fuel Type Installed Capacity (in MW) % SHARE
Coal 10.000 7.23
Oil-based sources 50.305 36.37
Hydropower 78.010 56.40
Biomass - -
Solar - -
Wind - -
Total 138.315 100.00
Source: MENRE

Table 2 above shows that the power sector energy mix in BARMM currently is now
predominantly RE. It is important to consider that the composition of the energy mix in the
region is affected by several factors. These include power plant availability, demand
dynamics, and fuel prices. Moreover, there is significant potential for the growth of
renewable energy sources such as hydropower and biomass (see Section Assessment of
Energy Resources). It is projected that by 2028, 90% of BARMM's energy requirements will be
supplied by renewable energy sources.22

BARMM hosts power generation sources that supply the region and the whole of Mindanao,
though they account for only 6.35% of all power plants connected to the Mindanao grid (see
Figure 3). The main power plant in BARMM is the Agus Hydropower Complex, situated in and
around Lake Lanao. Agus 1 and 2 in Lanao del Sur, with a combined capacity of 260.5 MW,
account for 34.9% of the total capacity of the hydropower complex (see Table 4) and
contribute 90.3% of the grid-connected and embedded power plants in BARMM (see Table
3). In addition to hydropower, diesel power plants on power barges cater to the electricity
needs of isolated island provinces, municipalities, and barangays. As of December 2022, the
total capacity of off-grid power plants in BARMM amounted to 50.425 MW, representing 51%
of all off-grid power plants in Mindanao (see Table 5 and Figure 3).

22
Authors.

32
Table 3: List of Generating Facilities and Power Capacity in BARMM
% Share of
Generation Facilities Installed Capacity (MW)
RE
Grid Connected* 288.40
Hydroelectric 260.50
Agus 1 and 2 260.50
Biomass 18.30
96.67
Lamsan Power Corp. *15.00
Green Earth Enersource Corp. (GEEC) 3.30
Embedded (Oil-based) 9.60
Cotabato Light and Power Co. (CLPC) 9.60
Off-grid** 50.425
Basilan PPs 10.600
0
Sulu PPs 16.000
Tawi-Tawi PPs 23.825
Total capacity in BARMM 338.825 82.28
RE = “Renewable Energy”
PPs = Total installed capacities of all Power Plants in the province.
Sources:
*DOE, List of Existing Power Plants (Grid Connected) as of December 2022 URL:
https://www.doe.gov.ph/sites/default/files/pdf/electric_power/03_Mindanao%20Grid.pdf
** MENRE report on Off-Grid Power Plants
DOE, List of Existing Power Plants (Off-Grid) as of December 2021 URL:
https://www.doe.gov.ph/sites/default/files/pdf/announcements/electric_power_plants_04_lvm_offgrid_
december_2021.pdf?withshield=1
NPC Profiles of Existing generation facilities in the island provinces
https://docs.google.com/presentation/d/10JHEjZesvISQ6LSj2qsxvHzdwwLNc0gG/edit?usp=drive_link&
ouid=103967319804902408425&rtpof=true&sd=true

Table 4: Agus Hydropower Complex

Agus Complex Installed Capacity (MW) Region
HEPP-1: Agus 1 and 2 260.50 BARMM
HEPP-2: Agus 4 to 7 486.10 Region 10
Total Agus Complex 746.60
% share of HEPP-1 34.89

Note: HEPP-1 = Hydroelectric Power Plants supplying within BARMM (i.e., AGUS 1 and 2)
HEPP-2 = Hydroelectric Power Plants energizing outside BARMM (i.e., AGUS 4 to 7)

Table 5: Electricity Supply Installed Capacity in Mindanao vs. BARMM Region

Area/Region Grid Connected (MW) Off-grid (MW)
Mindanao 4,542.0 98.862
BARMM 288.4 50.425

33
Figure 3:Electricity Supply Installed Capacity in Mindanao vs. BARMM Region

Lake Lanao, an ancient lake in Lanao del Sur, holds significant historical and cultural
importance as part of the ancestral domain of the Muslim people. It serves as a vital
resource for both power generation and livelihood, not only in Lanao but for the entire
Mindanao region. Constructed between the 1970s and 1990s, the Agus Hydropower complex
consists of six cascading power plants with a total installed capacity of 746.6 MW.23 However,
over the years, these facilities have experienced challenges such as ageing infrastructure,
inadequate maintenance, and other issues, resulting in a decline in their combined
dependable capacity to only 619 MW (as of December 2022).24 Given the heavy reliance on

23
DOE, List of Existing Power Plants (Grid Connected) as of December 2022 URL:
https://www.doe.gov.ph/sites/default/files/pdf/electric_power/03_Mindanao%20Grid.pdf
24
Ibid.

34
these power plants, the reduced capacities prompted the introduction of coal-fired power
plants in Mindanao, providing affordable and reliable baseload power, particularly to
address the Mindanao power crisis in 2012.25 However, the increasing global coal prices
subsequently led to a surge in electricity prices, adversely affecting businesses and
livelihoods. Moreover, the COVID-19 pandemic, while reducing electricity demand due to
plant and business shutdowns, caused logistical difficulties that further impacted coal
supply, exacerbating the region's crisis.

Recognizing the need to address the price volatility of coal and integrate cleaner energy
sources, the government has initiated plans to rehabilitate the Agus-Pulangi Hydropower
Complex. With a budget of P16.71 billion, this endeavor aims to revitalize the hydropower
assets, especially considering that Mindanao is already interconnected to the Visayas and
Luzon grids through the Mindanao-Visayas Interconnection Project (MVIP). The MVIP will
enable other parts of the Philippines to access the surplus capacity of Mindanao. However, it
should be noted that the rehabilitation of the Agus-Pulangi complex and the interconnection
of Mindanao with the rest of the Philippines will primarily benefit the BARMM areas
connected to the Mindanao grid.

The majority of BARMM, which comprises the province of Lanao del Sur, the two
Maguindanao provinces, and the 63 barangays of North Cotabato and represents 68% of the
region’s land area26 and more than 60% of its population, is part of the Mindanao Grid.
Lanao del Sur is part of District 2 (Lanao Area). At the same time, Maguindanao del Norte
and Maguindanao del Sur are part of District 6 (Southwestern Mindanao Area) of the
Mindanao Transmission System, divided into six districts. District 2, or Lanao Area, generates
the biggest power supply for the Mindanao grid, mainly because it hosts the Agus-Pulangi
Hydropower Complex.27 It is projected that the Lanao Area's generation will reach close to
3,000 MW by 2040.28 This will include the four hydropower projects in Lanao del Sur, totalling
157 MW, awarded to a lone developer.29 In Maguindanao, three biomass projects totalling 24
MW were being developed.30

While the Lanao Area generates the biggest power supply, it has the lowest demand in the
whole Mindanao Grid, projected at 444 MW in 2040 from 128 MW in 2022, representing
about only 5% of the 8,751 MW projected in 2040 for the whole of Mindanao.31 Based on
these data from the Transmission Development Plan 2022-2040 (TDP 2022-2040), peak demand

25
Most of the coal power plants in Mindanao were commissioned after this year, which as of December 2022 accounted for
88% of the total coal installed capacity in Mindanao (DOE).
26
Excluding the total land area of the SGA.
27
NGCP, TDP 2016-2040, pp. 19-20.
28
Ibid., p. 195.
29
Ibid., p. 206.
30
Ibid., p. 208.
31
NGCP, TDP 2022-2040, p. 25.

35
in the Lanao Area is projected to grow only 7.1% per annum compared to 7.9% for the whole
Mindanao Grid during this 18-year period.

The other part of BARMM that comprises the island provinces of Basilan, Sulu, and Tawi-Tawi
and represents about 38% of the region’s population and more than 30% of the region’s total
land area32 is off-grid or not connected to the Mindanao grid. Electricity supply in these
off-grid areas consists of island mini-grids classified from very large island grids to small
island grids. Mainland Basilan is served by BASELCO and, with a peak demand of 11.534 MW,
is classified as a very large island grid.33 Jolo Island in Sulu, served by SULECO and with a
peak demand of 9.150 MW, is classified as a large island grid.34 Bongao in Tawi-Tawi, served
by TAWELCO and with a peak demand of 4.2 MW, is classified as a medium island grid.35 The
other off-grid mini-grids in BARMM are classified as small island grids, shown in Figure
4below.

Figure 4: Small Island Grids in BARMM (Source of basic data: MEDP 2021-2025, p.38)

Except for mainland Basilan and Bongao, Tawi-Tawi, these off-grid mini-grids are supplied by
diesel gensets owned and operated by NPC-SPUG. Mainland Basilan is supplied by a diesel

32
Again, excluding the SGA.
33
MEDP 2021-2025, p. 29.
34
Ibid., p. 31.
35
Ibid., p. 33.

36
genset owned by Kaltimex Rural Energy Corporation, a private generator, and Bongao by a
diesel genset owned by BASELCO.

Distribution
Overall, the BARMM region is served by 11 power distribution utilities, consisting of eight
electric utilities operating within BARMM territory and three electric utilities operating
outside of BARMM but providing electricity to some municipalities and barangays within the
region. The electric utilities operating within BARMM are BASELCO (Basilan Electric
Cooperative), LASURECO (Lanao del Sur Electric Cooperative), MAGELCO (Maguindanao
Electric Cooperative), TAWELCO (Tawi-Tawi Electric Cooperative), SULECO (Sulu Electric
Cooperative), COLIGHT (Cotabato Light and Power Company), SIASELCO (Siasi Electric
Cooperative), and CASELCO (Cagayan de Sulu Electric Cooperative). On the other hand, the
electric utilities operating outside of BARMM but serving the region are FIBECO (First
Bukidnon Electric Cooperative), SUKELCO (Sultan Kudarat Electric Cooperative), and
COTELCO-PPALMA (Cotabato Electric Cooperative-PPALMA).

Table 6 provides information on the number of municipalities and barangays in BARMM

served by each utility, while Figure 5 geographically shows the franchise areas of the
respective distribution utilities.

37
Table 6: Distribution Utilities serving BARMM
Distribution Utilities
Province Capital Cities Municipalities Barangays
(Number of municipalities/barangays served)
Basilan (except or excluding
City of Lamitan 1 11 210 BASELCO (12/210) \b
Isabela City)
Lanao del Sur Marawi City 1 39 1,159 LASURECO (38/1,116); FIBECO (2/43) \c
Maguindanao del Norte Datu Odin Sinsuat - 12 221 MAGELCO (12/194); COLIGHT (2/27) \d
Maguindanao del Sur Buluan - 24 287 MAGELCO (18/214); SUKELCO (6/73)
Sulu Jolo - 19 410 SIASELCO (2/66); SULECO (16/330); BASELCO (1/14)
Tawi-Tawi Bongao - 11 203 TAWELCO (9/186); CASELCO (2/17)
Cotabato City - 1 - 37 COLIGHT (37)
Special Geographic Area \a - - - 63 COTELCO-PPALMA (63)
Total* 3 116 2,590
\a 63 barangays in six municipalities of North Cotabato are part of BARMM, but the province and their parent municipalities are not part of BARMM. Population, area and densities exclude SGA.
\b BASELCO also serves the City of Isabela.
\c While FIBECO provides electricity to 2 municipalities of Lanao del Sur, it seems it serves only 2 of the 17 barangays of Bumbaran (Amai Manabilang). Which EC serves the remaining 15 barangays in Lanao del Sur?
\d Includes the municipalities of Sultan Kudarat (Nuling) and Datu Odin Sinsuat (Dinaig) that are partly energized by MAGELCO.
Sources:
BARMM | Central Online Portal
Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) Profile – PhilAtlas
NEA, The Rural Electrification Chronicle 2018-2020.

38
 Figure 5: System Map of Distribution Utilities operating in BARMM

Status of Electrification
According to the BDP 2023-2028 and DOE (Department of Energy) reports, the household
electrification level in BARMM is only at 48%. This is significantly lower than the national average of
94.5% for the entire Philippines and the lowest among the regions in the country. Excluding Cotabato
City, which is served by Cotabato Light and Power Company and has an electrification level of more
than 99%, the Department of Energy (DOE) and National Electrification Administration (NEA) reported
that the average electrification rate in BARMM provinces was 43.7% as of 2022 (Table 7). Among the
provinces, Basilan has the highest electrification rate at 66.6%, followed by Lanao del Sur at 59%. Sulu
and Tawi-Tawi have average electrification rates of less than 30%. The two Maguindanao provinces
that is served by MAGELCO have an average electrification rate of less than 40%.

39
Table 7: Electrification levels of BARMM
CONNECTIONS

ELECTRIC DISTRIBUTION UTILITIES

Potential 2015 Served HHs as of Unserved HHs per
%
Census Q4 2022 DU

1. TAWELCO 62,321 13,597 48,724 21.82

2. SIASELCO 17,162 4,258 12,904 24.81

3. SULECO 116,930 33,638 83,292 28.77

4. BASELCO 87,041 58,000 29,041 66.64

5. CASELCO 5,208 3,269 1,939 62.77

6. LASURECO 149,267 88,012 61,255 58.96

7. MAGELCO 150,406 56,347 94,059 37.46

Total 588,335 257,121 331,214 43.70

Source: DOE, Status of Household Electrification as of December 2022.

This translates to more than 300,000 households still without access to grid electricity in
BARMM. Many barangays, especially those located inland, along the coast, and on islands in
Basilan, Sulu, and Tawi-Tawi, remain without grid electricity. In Tawi-Tawi alone, only eight out
of the 307 islands and islets36 in the province are served by NPC-SPUG (National Power
Corporation Small Power Utilities Group) and a private generator. The other island barangays
not covered by NPC-SPUG generally rely on solar lighting or solar home systems for their
electricity needs.

Assessment of Energy Resources

BARMM is one of the richest regions in Mindanao regarding indigenous energy resources,
including oil and natural gas, coal, hydropower, solar energy, geothermal, biomass, and ocean
renewable energy.

BARMM hosts the country's two large oil and gas basins—Sulu Sea Basin and Cotabato Basin.
The Sulu Sea Basin in Western Mindanao covers an area of 115,000 square kilometers. It is
estimated to have an oil potential of 130 million barrels (MMB) and a gas potential of 405
billion cubic feet (BCF). The Cotabato Basin, with an area of 14,000 square kilometers, is
estimated to have an oil potential of 84 MMB and a gas potential of 418 BCF.37 The Cotabato
Basin is adjacent to and partly overlaps the Ligwasan Marsh, which stretches through
36
Provincial Government of Tawi-Tawi, Provincial Development and Physical Framework Plan 2016-2021.
37
NGCP, TDP 2016-2040, p. 55.

40
Maguindanao, North Cotabato, and Sultan Kudarat. In addition to oil and gas, the Ligwasan
Marsh is rich in fisheries and aquatic resources.

The DOE has predetermined areas (PDA) in BARMM—one in Cotabato and three in Sulu.
Furthermore, the Philippine Conventional Energy Contracting Program (PCECP) now allows
prospective investors to suggest places outside the PDAs, including one in Sulu. BARMM also
has one of the country's biggest potential coal reserves, located in Maguindanao and is
estimated at 108 million metric tons.

Regarding renewable energy resources, the DOE has identified 17 potential hydropower sites
in BARMM that could provide a total aggregate capacity of 27.15 MW.38 Elevation data is only
considered for mapping this resource since hydropower plants produce power directly
proportional to the head, which is highly dependent on the digital elevation model (DEM). The
DEM across all BARMM provinces is at a high of 1,982.82 meters and a low of -9.2835.

According to studies conducted by the National Renewable Energy Laboratory (NREL), the
whole of Mindanao has high solar irradiation that averages 5 to 5.5 kW/m2/day.39 BARMM can
tap into this potential by developing decentralized or distributed solar PV systems. Two hybrid
solar PV-diesel mini-grids are now close to commissioning in Sibutu and Sitangkai in Tawi-Tawi
province. NPC-SPUG, on the other hand, is hybridizing with solar PV its diesel genset in
Tandubas.

The global horizontal irradiance (GHI) is the basis for computing the flat panel PV output. All
BARMM provinces record an average daily global irradiance of 3 to 5.5 kWh/m2, except for
Sulu, which records 4.0 to 5.5 kWh/m2.

BARMM also has geothermal potential estimated at 27.15 MW out of the 290 MW estimated
for the whole of Mindanao. Seventeen geothermal sites have been identified in Maguindanao,
Lanao del Sur and Sulu, which require pre-development investments amounting to around
P2.9 billion. See Table 8.

Table 8 Geothermal potential in select BARMM provinces

Pre-development
Province Number of sites Potential Capacity (MW) Investment Requirement
(PHP million)
Maguindanao 8 5.23 562.23
Lanao del Sur 7 11.29 1,213.68
Sulu 2 10.63 1,142.73
Total 17 27.15 2,918.64
Source: DOE

38
Source to be confirmed.
39
Source to be confirmed.

41
The assessment of biomass resources, although limited to coco husks, coco shells, corn cobs,
and rice husks, indicates significant biomass resources in BARMM. In Cotabato City, the
potential for waste-to-energy from municipal solid waste is also significant. Based on one
commissioned study, Cotabato City generates 108.61 tons of municipal solid waste per day at
an average of 0.35 kg per capita.40 According to a waste-to-energy expert, the minimum is 100
tons per day for a viable waste-to-energy facility.41 See Table 9.

Table 9: Biomass potential in select BARMM provinces

Province Biomass resource Biomass available potential (MJ/Ha)
Basilan coco husks, coco shells 2,626 to >7,000
coco husks, coco shells, corn cobs, rice
Lanao del Sur 2,626 to > 7,000
husks
coco husks, coco shells, corn cobs, rice
Maguindanao up to 3,500
husks
Sulu coco husks, coco shells 1 to >7,000
Tawi-Tawi coco husks, coco shells up to >7,000

Because of its archipelagic nature, BARMM also has ocean energy potential. Two sites have
been identified in Sulu and three in Tawi-Tawi. Those sites have an accumulated potential of 8
MW. See Table 10.

Table 10 Sulu and Tawi-tawi ocean energy potential

Province Site Estimated Capacity (MW)
Sulu Baculus-Bulaan Island 1.00
Lugus-Tapul Island 2.50
Tawi-Tawi Northern Sibutu 2.50
Sibutu Island 1.00
Simunul 1.00
Total 8.00
Source: DOE, Mindanao Energy Plan 2018-2030

MENRE has identified 13 sites in the five provinces with potential renewable energy
resources.42 The areas under assessment include Sifaran, Nituan, Micolabo, Bulingan,
Tumbok, Baitalmal, Salisip, and four waterfalls. Among these sites, Sifaran Falls was named
the area with the highest potential, with an estimated power generation capacity of 500 to
1000 kilowatts.

40
JICA (2022), Data Collection Survey on Urban Infrastructure Development in Greater Cotabato City, final report, volume I.
https://openjicareport.jica.go.jp/pdf/12369138_01.pdf
41
Mr. Lars Moller.
42
Biwang, Allan, Jr. (2021), “BARMM government identifies renewable energy sources,” Philippine Information Agency (PIA),
https://pia.gov.ph/news/2021/08/09/barmm-govt-identifies-renewable-energy-sources. Although the citation is not specific, it
defines renewable energy sources as a mixture of solar and run of river opportunities.

42
Developing the above-mentioned renewable energy resources, whether as on-grid power
plants (connected to the Mindanao grid) or distributed energy resources, would improve
electrification in BARMM.

Issues and Challenges

Notwithstanding the abundant indigenous energy resources, the low level of household
electrification has been the greatest challenge in the BARMM energy and power sector. This
has resulted in the inadequate and poor delivery of other basic government social and
economic services. The low electrification level has been associated with insufficient and
unreliable electric power systems, of which the central issue has been the poor performance
of electric cooperatives serving BARMM.

Low household electrification and insufficient and unreliable electricity supply

As already discussed, only 43.7% of households outside Cotabato City have access to
electricity. It can be seen from Figure 6 below that a large portion of BARMM is still not
electrified. There are three reasons for this: 1) unstable peace and order situation, 2) poor
infrastructure, and 3) remote distance of many households from distribution lines and power
generation facilities.

43
 Figure 6: Reliability Map of Distribution Utilities in BARMM

In addition to low electrification, BARMM suffers from insufficient and unreliable distribution
infrastructure that hampers the delivery of quality electricity services to consumers. In the
first place, the geographical makeup of BARMM makes it difficult to connect and electrify
households, especially those living in the island provinces of Basilan, Sulu, and Tawi-Tawi, as
well as those residing in the Marsh lands of Lanao del Sur and the Maguindanao provinces. In
areas with access to electricity supply, old age and poor maintenance limit and affect the
capacity of generation, transmission, and distribution facilities to deliver electricity and meet
the growing power demand. Indeed, in the cities and other towns in BARMM that have
relatively high electricity access, electric utilities have to meet the growing power demand
brought about by increasing income and urbanization. Heavy vegetation along power lines is
prevalent and affects maintenance. It is also reported that some barangays cannot use their
electric equipment for domestic and productive energy use because of severe under-voltage
issues, with voltages reaching as low as 56 volts. Businesses with 3-phase equipment cannot
operate in some areas since the existing line is single-phase only.

44
Poor electricity access leads to poor access to other socioeconomic services and other
infrastructures.
The inadequate access to energy resources and electricity infrastructure and services
contribute to BARMM’s poor access to socioeconomic services and other infrastructures,
including affordable and decent housing, health facilities, education facilities, agro-fishery
facilities (like cold storage), airports and seaports, and ICT (telecommunications towers).

Figure 7: Electrification Status in Health Facilities

The lack of or unreliable access to electricity supply limits the opening hours of healthcare
facilities and the operation of essential medical devices and emergency equipment. See Figure
7.

45
 Figure 8:Impact on Agricultural and Fisheries Facilities

The poor power quality (shown by fluctuating and intermittent voltage supply) impacts the
proper operation and functioning of Ministry of Agriculture, Forestry, and Agrarian Reform
(MAFAR) projects and facilities, such as cold storage facilities, farm input processing facilities,
food processing facilities, and others, resulting in food spoilage, lower production, and
reduced productivity. See Figure 8.

Figure 9: MBHTE projects in Mainland BARMM

The poor or lack of electricity access impacts the school projects of the Ministry of Basic,
Higher, and Technical Education (MBHTE). For example, this limits the use of essential
technology to maximize the teaching and learning experience through interactive learning
activities. The difficulties teachers face in delivering their lessons effectively because of
insufficient and unreliable electricity services impact the quality of education in the region.
See Figure 9.

46
 Figure 10: Project Power requirements of MHSD in the BARMM region

The inadequate and poor access to electricity services also impacts the housing programs and
projects of the Ministry of Human Settlements and Development (MHSD) (see Figure 9).
Lighting and cooling are basic electricity services for any household. Electricity is also essential
for delivering other basic community services, including water supply, sanitation, and hygiene.
See Figure 10.

Poorly performing Electric Cooperatives (ECs)

A major stumbling block in addressing the insufficient and unreliable electricity supply and
providing these needed electricity services is the weak financial capability of the ECs. All of
BARMM’s electric cooperatives fall under either category C or D (low or poor performance).43
BASELCO, LASURECO, TAWELCO, and SULECO (including three other ECs nationwide) are also
declared as “ailing” or “red” ECs.44 On the other hand, MAGELCO, SIASELCO, and CASELCO are
among the “yellow-2” ECs.45

Under RA 10531, Sec 20 Ailing ECs, an EC may be declared “ailing” when it falls to the following
circumstances:46

● Has negative net worth for the last three years. Negative net worth shall mean as the
financial condition of an EC in which its liabilities are greater than its assets.

43
NEA (2022a), Memorandum: Calendar Year 2021 EC Overall Performance Assessment and Size Classification, 13 July 2022,
https://nea.gov.ph/ao39/powered_by_matrixmedia/Memorandum-to-ECs/2022/Memo%20to%20ECs%20No_%202022-33.pdf
44
Ibid. “Ailing ECs fail to comply with all of the key performance standards and parameters, which include cash general fund,
collection efficiency, payment obligations, result of financial operations, net worth, system loss, and system reliability. See NEA
(2022b), Compliance Report on the Performance of Electric Cooperatives 4th Quarter 2022, p. 5.
https://www.nea.gov.ph/ao39/phocadownload/ECs%20Classification/2022/Compliance%20Report%20on%20the%20Performance
%20of%20ECs%20-%204th%20Quarter%20of%202022%20as%20of%205-3-23.pdf
45
Yellow-2 ECs fail to comply with four or more of the key performance standards and parameters, which include cash general
fund, collection efficiency, payment obligations, result of financial operations, net worth, system loss, and system reliability. See
NEA (2022b), p. 5.
46
NEA (2022b)

47
 ● Has accumulated 90 days arrearages in power supply purchases from generating
companies and power suppliers/source of electricity, and the transmission charges by
the Transco or its concessionaire.

● Unable to provide electrical service due to technical and/or financial inefficiencies

and/or institutional problems.

● Unable to efficiently perform its electric distribution utility obligations or continue in

businesses due to organizational, external, and internal factors when an EC has failed
to meet other operational standards established by the NEA, and

● Unable to set up or continually support its wholesale electricity stock market (WESM)
prudential requirements.47

For example, the outstanding debt of the Lanao del Sur Electric Cooperative, Inc. (LASURECO)
was estimated to be worth P13.1 billion as of June 30, 2022.48 On the other hand, with only
17%, poor collection efficiency emerged as the primary bottleneck of MAGELCO, which
resulted in massive load curtailment across its service areas.49 Based on the latest available
data from NEA, TAWELCO, SULECO, and BASELCO also suffer from low collection efficiency,
respectively, at 19% (as of 2018), 36% (2020), and 57% (2020).50

A main issue regarding collection efficiency is that people do not see the point of paying for
electricity service that, on the one hand, is generated from an energy resource hosted (or
owned) by them and, on the other hand, that is not sufficiently providing for their needs. The
concept of their membership in the electric cooperative also adds to their attitude of not
needing to pay to receive electricity service. The other issue is that many people in BARMM
cannot afford to pay because of poverty and must prioritize other basic social and economic
needs.

The transmission operator, NGCP, had threatened to cut power in the franchise areas of
LASURECO and MAGELCO due to ballooning and unpaid debts. Because of this, the
Bangsamoro government has intervened and is negotiating with the national government to
solve the regional power crisis. For its part, the National Electrification Administration (NEA)
has commenced the transfer of its authority to supervise electric cooperatives (ECs) in the

47
WESM Mindanao started commercial operations only in January 2023, so this was not applicable to the categorization.
48
Gigje, Claire (2022), “MENRE-BARMM steps in energy crisis of Lanao Sur,” PIA, 24 July,
https://pia.gov.ph/news/2022/07/24/menre-barmm-steps-in-energy-crisis-of-lanao-sur. See also “Pinutulan! DOF asks 2 electric
cooperatives in BARMM to pay P16-B bills,” POLITIKO Mindanao, 8 June 2022,
https://mindanao.politics.com.ph/pinutulan-dof-asks-2-electric-cooperatives-in-barmm-to-pay-p16-b-bills2/
49
“BARMM intervenes on MAGELCO power outage issue,” bangsamoro.gov.ph, 8 April 2022,
https://bangsamoro.gov.ph/news/latest-news/barmm-intervenes-on-magelco-power-outage-issue/
50
NEA, The Rural Electrification Chronicle 2018-2020. SIASELCO reported a high collection efficiency of 94%, while CASELCO and
LASURECO did not report a collection efficiency.

48
Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to the Bangsamoro
government.51

Notwithstanding, MENRE maintains its position that electric cooperatives remain the most
important partner in ensuring a vibrant and working power industry and that establishing a
strong partnership with the electric cooperative is imperative in pursuing a highly developed
Bangsamoro region.52

Other issues
The absence of CLUP in most LGUs does not help in addressing electricity access, particularly
in unserved areas. Even if there is sufficient land use inventory, electrification also needs to
deal with converting agricultural lands to industrial lands (so these lands could be used for
new electrification projects and network expansion).

Stakeholders claim that government electrification subsidies through the NEA’s grid
expansion programs, namely, the Sitio Electrification Program (SEP) and Barangay Line
Extension Program (BLEP), are being mismanaged because of organizational continuity and
transition issues (within both the NEA and the ECs), resulting in the non-liquidation of funds).

The goal of viability cannot be separated from achieving effective and efficient institutional
management of the ECs. NEA’s mandates include assisting the ECs in this regard; however, it
faces difficulties exercising its mandate over BARMM ECs. The stakeholders call for stronger
regulatory control over the BARMM ECs to resolve this issue.

51
NEA spins off transfer of mandate to supervise ECs to BARMM government | Lenie Lectura (businessmirror.com.ph)
52
MENRE Minister Brahim meets with several BARMM Electric Cooperatives | Ministry of Environment, Natural Resources and
Energy (bangsamoro.gov.ph)

49
III. BARMM Regional Energy Policies

The Bangsamoro Organic Law (BOL)

The Bangsamoro Organic Law (BOL) serves as the foundational document or "constitution" for
the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). It sets the basis for
energy policies in the region. Section 8, Article IX, which outlines the Rights of Access to basic
services, includes power and electricity as essential services. Furthermore, Section 2, Article V,
identifies power sector investments and public utilities operations as among the powers of
the BARMM government. Section 3, Article XIII Regional Economy and Patrimony, mandates
the BARMM government to develop comprehensive frameworks for sustainable development
through proper conservation, utilization, and development of natural resources.

Specifically, under Section 36 Energy and Power Generation, Article XIII, BARMM:53

● Shall promote low carbon sustainable power generation

● Shall notify the national government insofar as power generation investments are
concerned

● Shall have the authority to build power generation and distribution utilities operating
exclusively in the Bangsamoro Autonomous Region through the Ministry of Energy it
shall create

● Shall aggressively promote distributed generation as part of its power development

plan

● May assist electric cooperatives operating exclusively in the Bangsamoro Autonomous

Region in accessing funds and technology to ensure their financial and operational
viability

● Shall have preferential rights over acquiring Agus 1 and 2, which are the plants located
inside BARMM

● Shall cooperate and coordinate with the national government through the
Intergovernmental Energy Board (IEB) insofar as the utilization of water from Lake
Lanao

Article VI of the BOL, which focuses on Intergovernmental Relations, establishes the

Intergovernmental Infrastructure Board (Section 6), Intergovernmental Energy Board (Section
7), and Bangsamoro Sustainable Development Board (Section 8). These intergovernmental
bodies play a crucial role in developing the energy sector in BARMM.

53
Derived from Sec 36 Energy and Power Generation, Art XIII Regional Economy and Patrimony, BOL.

50
The Bangsamoro Development Plan 2023-2028
The Bangsamoro Development Plan 2023-2028 highlights the development thrusts and
priorities of the Bangsamoro government during this period or for the next six years. In
formulating and preparing the BDP 2023-2028, the Bangsamoro Economic Development
Council (BEDC) adopted a “whole-sector approach” to ensure that it is “an inclusive plan that is
responsive to the needs of all sectors in BARMM,” which is “a vast region in terms of
geographic feature and terms of culture.”54

The macroeconomic targets of BARMM, which will also form the basis for planning the
development of the energy and power sectors, are listed below in Table 11.

Table 11: Macroeconomic targets of the BDP 2023-2038

● 8 % to 9 % Gross Regional Domestic Product (GRDP) Annual Average Growth Rate

● 6 % to 9 % GRDP Annual per capita-Annual Average Growth Rate

● 10 % to 12 % Annual double-digit real growth of Industry and Services Sectors

● 18 to 20 Gross Capital Formation (GCF) as a percentage of GRDE/GRDP

● 2 % to 4 % Inflation Rate

● 3 % to 5 % Unemployment Rate

● 4 % to 7 % Underemployment Rate

● 20 % to 25 % Poverty incidence

Source: BDP 2023-2028

The strategies in the 2nd BDP are solidly aligned with the national energy and development
plans, the Mindanao plans, President Marcos’ 8-point socioeconomic agenda, the Philippine
Development Plan, the 17 Sustainable Development Goals, and the Enhanced 12-Point Priority
Agenda of the BARMM, which aims to improve energy security, among other overarching
goals as shown in Figure 11 below.

54
“2nd Bangsamoro Development Plan sets path for ‘empowered, cohesive, progressive’ BARMM in 6 years,”
https://bangsamoro.gov.ph/news/latest-news/2nd-bangsamoro-development-plan-sets-path-for-empowered-cohesive-progressiv
e-barmm-in-6-years/

51
 Figure 11: Energy Supply Security in the Enhanced 12-point Agenda of BARMM

According to the BDP 2023-2028, the BARMM energy sector's overall objective of improved
energy security is translated into specific objectives, strategies, and priorities regarding
legislative and policy agenda and research and capacity development in Figure 12. The
expected outcomes for each specific objective are shown in Figure 13.

These objectives will be achieved by the following guiding principles: Sustainability,

Partnerships, Affordability and Accessibility, Reliability and Resilience, and Clean and
Climate-Smart (SPARC), described in Figure 14. These principles cannot overemphasize the
importance of sustainability, which is the main governing principle of the Bangsamoro
Government as provided in the BOL. The other principles are all aspects of Sustainability.

52
Figure 12: BARMM Energy Sector Objectives

53
Figure 13: Expected Outcomes of Energy Sector Objectives

54
Figure 14: Guiding principles of BARMM energy sector development

55
Relevant BARMM Legislations

An urgent priority of the BARMM Parliament under the BTA is the establishment of a separate
Ministry of Energy, which has been envisioned in the BOL. As mentioned in the draft Ministry
of Energy Bill, “(t)he Bangsamoro Government needs more than just an office under MENRE to
strengthen its efforts relating to the exploration, exploitation, and development of energy
resources and to address the power woes in the region.”55 Further, the draft MOE Bill argues
that “(a) separate Ministry of Energy can better focus on ensuring a continuous, adequate, and
economic supply of energy in the region.” The Bill also outlines the energy policy of the
Bangsamoro Government:

(1) to ensure a continuous, adequate, and economic supply of energy,

(2) to promote the use of renewable energy for power generation to achieve the
sustainable development goals, and

(3) to promote low (carbon) sustainable power generation policies.

The proposed structure of the BARMM Ministry of Energy mirrors that of the Philippine DOE,
including the Energy Resource Development Bureau (ERDB), Energy Utilization Management
Bureau (EUMB), Energy Industry Administration Bureau (EIAB), Energy Planning and
Monitoring Bureau (EPMB), Renewable Energy Management Bureau (REMB), and
Administrative Support Services (ASS). In addition, the MOE will be steered by a Council of
Advisers on Energy Affairs and the Intergovernmental Energy Board (IEB).

The main mandate of the proposed MOE is power sector development, and its objectives
towards this end are:

● Ensure the reliability, quality, and security of the supply of electric power
● Encourage private sector investments
● Facilitate and encourage reforms in the structure and operations of distribution
utilities (including restructuring, privatization and modernization) for greater efficiency
and lower costs.
● Promote a system of incentives to encourage industry participants to provide
adequate and reliable electricity capacity and supply, including reserve requirements.
● Establish the WESM and formulate WESM rules.

55
Bill-No.-14-MP-Amilbahar-Mawallil-CREATING-THE-MINISTRY-OF-ENERGY,
https://parliament.bangsamoro.gov.ph/wp-content/uploads/2022/09/Bill-No.-14-MP-Amilbahar-Mawallil-CREATING-THE-MINISTRY
-OF-ENERGY.pdf

56
The MOE Bill also calls for establishing a Bangsamoro Energy Regulatory Commission to
regulate the BARMM power system through the Philippine Grid Code.

Another urgent and priority legislative measure for energy sector development in BARMM is
the creation of the Energy Development Corporation of the Bangsamoro (EDCB).56 The EDCB,
which will have an initial term of 50 years, shall have the following purposes:

1) To engage in the exploration, utilization, and development of energy resources within

the territorial jurisdiction of the Bangsamoro

2) To engage in the transportation, storage, importation, exportation, refining, supply,

sale and distribution of crude oil, refined petroleum and petroleum-based products,
whether imported or produced by local refineries

3) To foster conditions relating to energy resources utilization conducive to a balanced

and sustainable growth of the economy

4) To undertake, by itself or otherwise, exploration, utilization, and development of all

energy resources of the territorial jurisdiction of the Bangsamoro, including surveys
and related activities.

In other words, the EDCB is envisioned to be an energy resource development company for
both renewable and conventional energy resources and a vertically integrated company in
terms of oil and gas energy resources.

The Intergovernmental Energy Board and Reference to the Philippine Energy Plan and
Mindanao Energy Plan

The BOL mandated the creation of the Intergovernmental Energy Board (IEB), which will serve
as an advisory body primarily tasked with recommending policies to the National and
Bangsamoro Governments and monitoring the implementation of energy policies and
regulations. This requires coordination and cooperation between the two parties. Through
IEB, the National Government and Bangsamoro Government coordinate and resolve issues on
intergovernmental relations concerning energy through regular consultations and continuing
negotiations.

In addressing the current challenges of the power sector concerning delivering sufficient and
reliable electricity services and increasing household electrification and notwithstanding the
present structure and organization of the power sector in BARMM, the Bangsamoro

56
Bill-No.-33-Government-of-the-day-CREATING-THE-ENERGY-DEVELOPMENT-CORPORATION-OF-THE-BANGSAMORO,
https://parliament.bangsamoro.gov.ph/wp-content/uploads/2022/09/Bill-No.-33-Government-of-the-day-CREATING-THE-ENERGY-
DEVELOPMENT-CORPORATION-OF-THE-BANGSAMORO-1.pdf

57
Government will collaborate with the DOE through the IEB in the appropriate application or
implementation in BARMM of relevant national policies and programs. The Bangsamoro
Government will also collaborate with MinDA, which plays an active role in the energy and
power sector development in Mindanao and is also a member of the IEB.

BARMM will also refer to the Philippine Energy Plan (PEP), which is authored by the DOE, and
particularly the Mindanao Energy Plan (MEP), which both DOE and MinDA co-author, as both
encompass and intend to benefit as well the Bangsamoro regional economy. Both plans
communicate the sustainable energy and power sector policies of the National Government.

58
IV. Power Sector Development in BARMM
The development of the power sector in BARMM will consider different aspects of power
development based on national plans, policies and programs. These aspects could serve as
relevant and beneficial for power sector development planning in BARMM in the context of
national policies and programs. This section is divided into the following subsections on-grid
expansion, off-grid development, renewable energy development, the impact of expanding
the Wholesale Electricity Spot Market (WESM) to Mindanao, demand-side management, smart
grid implementation, resilience, and regional context.

On-grid Development

The long-awaited interconnection of the Luzon, Visayas, and Mindanao grids, originally
envisioned for 2020, was finally realized on April 30, 2023.57 The P52-billion Mindanao-Visayas
Interconnection Project (MVIP)58 has a transfer capacity of 450 MW that is expected to be fully
achieved in the third quarter of 2023.

The interconnection of the three major island grids is expected to lessen power interruptions
nationwide, maximize the use of local energy resources, promote sustainable energy sources,
and ensure sharing of energy resources across the country.59

Besides the MVIP, other programs and projects under the Transmission Development Plan
(TDP) will benefit BARMM.

One of these projects for the Mindanao Transmission System is the Agus 2 Switchyard
Upgrading Project. Agus 2 is one of the Agus plants hosted by BARMM, as mentioned in
Section II. See Table 12.

Table 12 Agus 2 Switchyard Upgrading Project

“The development of the Agus 2 Switchyard will improve operational capability to efficiently
respond (to) any system disturbance. The project will enhance operation stability which
ensures the continuity of service of the power plant’s transmission corridor. It also aims to
provide clear demarcation of asset boundaries between NGCP and the power plant. The
Agus 2 Switchyard is an old transmission facility which is having difficulties in operation and

57
Davis, Marivic Omandam (2023), “NGCP energizes Mindanao-Visayas Interconnection Project,” Minda News, 4 May,
https://www.mindanews.com/top-stories/2023/05/ngcp-energizes-mindanao-visayas-interconnection-project/
58
The MVIP will use 184 circuit-kilometers of submarine cables and 422 circuit-kilometers of overhead wires to connect Lala
Converter Station in Lanao del Norte to Dumanjug Converter Station in Cebu using High-Voltage Direct Current (HVDC) cables,
plus 104 circuit-kilometers of overhead wires from Magdugo Subgionstation to Dumanjug Converter Station using High-Voltage
Alternating Current (HVAC) in Cebu. “The Mindanao-Visayas Interconnection Project,” NGCP MVIP,
https://ngcp.ph/mvip/#:~:text=The%20Mindanao-Visayas%20Interconnection%20Project%20%28MVIP%29%20is%20the%20link,t
he%20sharing%20of%20energy%20sources%20across%20the%20network.
59
“The Mindanao-Visayas Interconnection Project,” NGCP MVIP,
https://ngcp.ph/mvip/#:~:text=The%20Mindanao-Visayas%20Interconnection%20Project%20%28MVIP%29%20is%20the%20link,t
he%20sharing%20of%20energy%20sources%20across%20the%20network.

59
 maintenance. The outmoded installed equipment in the switchyard struggles in
maintenance due to scarcity of spare parts in the market.

“The project implementation involves the replacement of obsolete power circuit breakers,
capacitive potential transformers, telecom equipment and other secondary devices. The
(upgrading of) the switchyard facility includes expansion and renovation of the control
building with the installation of new monitoring, switching, metering, annunciation and
control equipment in order to have full control of the switchyard.”

Source: NGCP, TDP 2016-2040, p. 97.

Off-grid Development
Following the EPIRA 2001, DOE periodically prepares and updates the Missionary
Electrification Development Plan (MEDP). The MEDP covers the development plans and
programs of the government to increase access to sustainable energy in off-grid areas in the
country and improve the efficiency of energy use in these areas. It integrates all the plans and
programs of the government, the private sector, and other stakeholders in off-grid
electrification, including those of the DOE, NEA, NPC-SPUG, TRANSCO, DUs, QTPs, NPPs, and
RE developers. The latest version is the MEDP 2021-2025. It “provides the policy directions and
programs of the Government in relation to the provision of quality, secured, adequate,
reliable, and efficient electricity services in missionary areas and other off-grid power systems
all over the Philippines.”60 To support this overall objective, the MEDP 2021-2025 will also
reduce dependence on imported fossil fuels through increased utilization of indigenous and
renewable energy sources in these areas, rationalize the tariff subsidies or the universal
charge for missionary electrification (UCME), promote mini-grid modernization and efficiency
improvements, and facilitate greater coordination and cooperation among stakeholders.

The Microgrid Systems Act, approved in July 2021, promotes the development of microgrid
systems towards the electrification of the country's unserved and underserved areas. Under
this new law, microgrid system providers (MGSPs) may provide integrated power generation
and distribution services in these areas identified by the ECs and published by the DOE.
MGSPs will not be considered a public utility but shall secure an Authority to Operate from the
ERC. Qualified Third Parties (QTPs) will now be called MGSPs. The development of microgrid
systems under this law will prioritize low-cost, indigenous, renewable, and
environment-friendly resources and technologies. The development of microgrid systems will
undergo a competitive selection process in which even the ECs can participate.

60
MEDP 2021-2025, p. 18.

60
The Microgrid Systems Act presents a huge opportunity to address the sufficiency as well as,
in fact, reliability of electricity services in BARMM. The new law requires ECs and DUs to
declare underserved and unserved areas within their respective franchises. Then DOE will
auction, and ERC will award these areas to qualified parties.

The development of microgrid systems or mini-grids in the islands of the BASULTA area and
remote areas in Lanao del Sur and Maguindanao through implementing the Microgrid
Systems Act will address the lack of electricity access in these areas. Hybrid solar PV mini-grids
(with battery energy storage systems (BESS) and diesel gensets) are being developed in
Tawi-Tawi. BARMM also presents an opportunity for replicating smart solar networks that
basically consist of interconnected solar home systems (SHS) that benefit from sharing
surplus electricity generated by the SHS. Smart solar networks are not yet a popular option
for rural electrification. So far, only two such systems have been installed in the country.61

In the meantime, NPC-SPUG intends to hybridize diesel gensets with renewable energy
nationwide. In BARMM, NPC-SPUG is already developing a 300-kW solar PV in Tandubas Island
to hybridize its diesel gensets serving the island, which has a total installed capacity of I,655
kW and dependable capacity of 1,100 kW.62

The “Omnibus Guidelines for the Enhancement of Off-Grid Power Development and
Operation” (Department Circular 2019-01-0001) also includes the assessment of economic
feasibility and timeline for the eventual interconnection of off-grid areas into the main grid. It
also requires the NGCP to prepare a report or an annual program for the interconnection of
off-grid areas into the main grid to be integrated into the TDP. Thus, notwithstanding the
thrust for distributed power generation and microgrid development, NGCP is assessing the
potential interconnection of Basilan, Siasi, Sulu, and Tawi-Tawi to the main grid. Based on its
initial assessment, a total of 392 km of both submarine and overhead cables would be
required to interconnect the four island groups.63 TDP 2022-2040 maintained the assessment
of the potential interconnections to Siasi, Sulu, and Tawi-Tawi, equivalent to 353 km of both
submarine and overhead cables.64

Wholesale Electricity Spot Market (WESM) Mindanao

The WESM, an electricity trading market and one of the industry reforms under the Electric
Power Industry Act of 2001, “is seen as a medium for providing an efficient scheduling,

61
Solar smart networks that have been installed in Busuanga, Palawan and Palasan Island, Quezon show a net increase in the
average electricity supply for each household connected to the system (as against isolated or independent SHS). These systems
could be an economically more attractive option than isolated solar home systems (SHS) and could serve as a transition to hybrid
solar PV mini-grids.
62
NPC-SPUG
63
DOE, PDP 2020-2040, p. 95.
64
NGCP, TDP 2022-2040, p. 162.

61
dispatch and settlement of energy withdrawal and injections in the grid”.65 Generators can
choose to sell and distribute utilities, while electric cooperatives can choose to buy electricity
through the WESM.66 Moreover, with the interconnected Luzon-Visayas-Mindanao grids, the
WESM will take advantage of Mindanao's excess or uncontracted capacities. As of January
2023, Mindanao has 4,321 MW of installed capacity, while its peak demand is only 2,167 MW.67
However, besides sustaining investments and economic activities in the region, the most
important expectation from WESM Mindanao is the lowering of electricity prices to
consumers.68

WESM Mindanao was officially launched effective June 26, 2017, following DOE Circular No.
DC2017-05-009 dated 4 May 2017.69 The said DOE Circular aimed to provide sufficient time for
the Market Operator (MO), System Operator (SO), and WESM Participants to prepare and
familiarize themselves with WESM operations. The 2017 DOE Circular likewise mandated the
National Grid Corporation of the Philippines (NGCP) and the WESM participants to implement
the Interim Mindanao Dispatch Protocol. The DOE held regular WESM Mindanao Readiness
Assessment (WMRA) meetings in coordination with PEMC/Market Operator (MO) and the
NGCP System Operator (SO), and other concerned agencies to ensure market preparedness
before the commercial operations date (COD) of WESM in Mindanao. Meanwhile, DOE Circular
No. 2022-12-0039 declared January 26, 2023, as the COD of WESM Mindanao.70

Distribution utilities directly connected customers, grid-connected generation companies, and

embedded generation companies are required or mandated to register in the WESM. As of 19
January 2023, Cotabato Light and Power Company, LASURECO and MAGELCO are registered
among the WESM participants.71

Demand Side Management

Demand Side Management (DSM) refers to the portfolio of measures to improve the energy
system at the side of consumption72 or reduce energy consumption through effective load
65
DOE (2019), Mindanao Energy Plan 2018-2040, p. 87.
66
WESM started commercial operations in the Luzon grid in June 2006 and in the Visayas grid in December 2010.
67
“PBBM: Launching of Mindanao power spot market to lower electricity rates in the region,” Presidential Communications Office,
https://pco.gov.ph/news_releases/pbbm-launching-of-mindanao-power-spot-market-to-lower-electricity-rates-in-the-region/
68
Parrocha, Azer (2023), “WESM Mindanao to significantly cut power rates: Marcos,” Philippine News Agency,
https://www.pna.gov.ph/articles/1194477
69
“ERC Directs Mindanao DUs’ to Comply with All WESM Requirements,” Energy Regulatory Commission,
https://www.erc.gov.ph/ContentPage/61891
70
Lectura, Lenie (2023), “WESM in Mindanao to start operations this month–DOE, BusinessMirror,
https://businessmirror.com.ph/2023/01/02/wesm-in-mindanao-to-start-operations-this-month-doe/
71
“Mindanao Participants Registration Status,” IEMOP (Independent Market Operator of the WESM),
https://www.iemop.ph/market-reports/mindanao-participants-registration-status/
72
Palensky, Peter and Dietmar Dietrich (2011), “Demand side management, demand response, Intelligent energy systems, and
smart loads,” IIEE Transactions on Industrial Informatics, volume 7, pp. 381-388,
https://www.researchgate.net/publication/224243498_Demand_Side_Management_Demand_Response_Intelligent_Energy_Syste
ms_and_Smart_Loads

62
management, resulting in the decrease of power demand and the migration of power
demand from peak to off-peak periods. DSM also includes measures undertaken by
distribution utilities to encourage end users to properly manage their loads to efficiently
utilize fixed infrastructure in the systems using energy efficient and/or renewable energy
technologies and systems.73 The EE&C Act of 2019 requires or mandates distribution utilities
to develop and implement a DSM Plan.

DSM measures also include sophisticated real-time control of distributed energy resources
(DERs), which are renewable energy units or systems commonly located at houses or
businesses to provide power.74 Also called “behind the meter”, DERs include rooftop solar PV
units, battery storage, thermal energy storage, electric vehicles and chargers, smart meters,
and home energy management technologies.75

While DSM has been associated with utilities serving on-grid areas, DSM could reduce total
costs, thus customer payments, and/or increase renewable energy utilization in island grids
and off-grid areas.76

In any case, the effective implementation of DSM programs also requires adopting smart grid
technologies.77

Smart Grid Roadmap

“A smart grid is an electricity network that uses digital and other advanced technologies to
monitor and manage the transport of electricity from all generation sources to meet the
varying electricity demands of end users. Smart grids coordinate the needs and capabilities of
all generators, grid operators, end users and electricity market stakeholders to operate all
parts of the system as efficiently as possible, minimizing costs and environmental impacts
while maximizing system reliability, resilience and stability.”78

DOE Circular 2020-02-0003, “Providing a National Smart Grid Policy Framework for the
Philippine Electric Power Industry and Roadmap for Distribution Utilities”, provides the policy
framework for the smart grid for the Philippine electric power industry. While the policy scope
includes generation and transmission, the DOE Circular mandates a smart grid roadmap for
73
Energy Efficiency and Conservation Act of 2019.
74
“Distributed energy resources,” Australian Renewable Energy Agency (ARENA),
https://arena.gov.au/renewable-energy/distributed-energy-resources/
75
Ibid.
76
Cepeda, Juan Carlos Oviedo et. al. (2020), “Design of a methodology to evaluate the impact of demand-side management in the
planning of isolated/islanaded microgrids,” Energies, volume 13, https://www.mdpi.com/1996-1073/13/13/3459
77
Please see. for example, Davito, Brandon et. al. (2010), “The smart grid and the prommise of demand-side management,”
McKinsey on Smart Grid, Summer 2010,
https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/EPNG/PDFs/McK%20on%20smart%20grids/MoSG_DSM_VF.
aspx
78
IEA (2022), Smart Grids, September. https://www.iea.org/reports/smart-grids

63
distribution utilities, including electric cooperatives. This roadmap is depicted in Figure 15
below.

Figure 15: Smart grid road map for distribution utilities

Source: DOE, DOE Circular 2020-02-0003

NEA has already issued a memorandum asking the ECs to comply with the policy framework
of DOE, specifically developing and implementing a smart distribution utility roadmap.79

As shown in the roadmap, installing smart meters is Level 1 or the first stage in switching to a
smart grid. Smart meters, including prepaid and postpaid electricity services, are “technology
that will create a two-way communications network between electric customers and the
utility. It will enable near real-time meter reading and more efficient response to outages
following severe weather events, assisting crews in identifying the cause and location of an
outage.”80 Prepaid meters, in particular, “allow for distribution of electricity in developing and
politically unstable countries.”81 Prepaid meters can contribute to reducing non-technical
79
“Electric cooperatives told go digital,” Bilyonaryo.com,
https://bilyonaryo.com/2022/07/23/electric-cooperatives-told-go-digital/#gsc.tab=0
80
Willis, David P. (2021), “Smart meters mean shorter blackouts, Atlantic City Electric promises,” Energy Central News, 16 July,
https://energycentral.com/news/smart-meters-mean-shorter-blackouts-atlantic-city-electric-promises?utm_medium=eNL&utm_ca
mpaign=DAILY_NEWS&utm_content=0&utm_source=2021_07_19
81
Franek, Lesek et. al. (2013), “Prepaid energy in time of smart metering,” IFAC Proceedings Volumes, vol. 46, issue 28, pp. 428-433.
https://www.sciencedirect.com/science/article/pii/S1474667015373651

64
losses (NTLs) in distribution systems.82 With a pre-paid meter, households purchase electricity
through a voucher from the utility company, at sales points such as grocery stores, online or
through mobile phones. They can use the electricity only if there is credit on the meter.83
Prepaid meters are particularly advantageous for off-grid electricity consumers and electric
cooperatives operating in off-grid areas.

The installation of smart meters is, in turn, the first step towards adopting advanced metering
infrastructure (AMI), the main feature of Level 2 in the smart grid roadmap. “Advanced
metering infrastructure (AMI) is an integrated system of smart meters, communications
networks, and data management systems that enables two-way communication between
utilities and customers. The system provides a number of important functions that were not
previously possible or had to be performed manually, such as the ability to automatically and
remotely measure electricity use, connect and disconnect service, detect tampering, identify
and isolate outages, and monitor voltage. With customer technologies like in-home displays
and programmable communicating thermostats, AMI also enables utilities to offer new
time-based rate programs and incentives that encourage customers to reduce peak demand
and manage energy consumption and costs.”84

BARMM ECs may consider investing in prepaid meters to improve collection efficiency, which
at the same time, encourages the optimized use of electricity only as needed and is akin to
the objectives of smart grids.

Climate Change Resilience

In BARMM, Tawi-Tawi is among the country's most vulnerable to climate change impacts and
has the lowest adaptive capacity,85 which is aggravated by having the lowest electricity, water
access, and sanitation in the Philippines. Tawi-Tawi is located in a region where the rate of sea
level rise is 8mm/year based on the map of rates of sea level changes in the Philippines
between 1993 and 2009.86

The Climate Change Act of 2009 and the Philippine Disaster Risk Reduction and Management
Act of 2010, including the corresponding national plans mandated by these laws, are the
national response to climate vulnerabilities. For its part, local governments are mandated to

82
ibid.
83
Kelsey, Jack et. al. (2019). “Pre-paid electricity metering and its effects on the poor,” IGC blog, 11 September 2019.
https://www.theigc.org/blogs/pre-paid-electricity-metering-and-its-effects-poor
84
USDOE (2016), Advanced Metering Infrastructure and Customer Systems: Results from the Smart Grid Investment Grant
Program , p. 4.
https://www.energy.gov/sites/prod/files/2016/12/f34/AMI%20Summary%20Report_09-26-16.pdf
85
Burias, Dahlia P. et. al. (2021), “Climate change vulnerability assessment of islands in Tawi-Tawi, Southwestern Philippines”
(unpublished).
86
Burias, Dahlia P. et. al. (2021), “Climate change vulnerability assessment of islands in Tawi-Tawi, Southwestern Philippines”
(unpublished).

65
develop their local response through local climate change action plans and disaster risk
reduction and management plans. In parallel, the DOE issued DC 2018-01-0001, “Adoption of
Energy Resiliency in the Planning and Programming of the Energy Sector to Mitigate Potential
Impacts of Disasters”, to institutionalize the Energy Resiliency Policy. The Energy Resiliency
Policy (ERP) aims to:

1. Strengthen existing infrastructure facilities to adapt to and withstand adverse

conditions and disruptive events;
2. Incorporate mitigation improvements into the reconstruction and rehabilitation of
infrastructure damaged in accordance with the Build Back Better principle;
3. Improve operational and maintenance standards and practices to ensure expeditious
restoration of energy supply in the aftermath of disruptive events; and
4. Develop resiliency standards for future construction of energy facilities to ensure
minimal damage and adoption of measures in place for timely recovery and
restoration of facilities for the continued delivery of (energy) supply.

The policy calls for a multistakeholder effort towards a resilient energy infrastructure, or the
ability to restore and sustain the availability and accessibility of energy in the most timely and
efficient manner in the aftermath of natural and man-made disasters.

The policy also requires all industry participants, energy, and power companies, including
electric cooperatives, oil companies and power producers, to prepare a five-year Resiliency
Compliance Plan (RCP). Aimed at strengthening the energy sector's capacity, safety culture,
and disaster preparedness and response capability, the RCP shall, at a minimum, contain
adaptation measures that include structure and non-structural measures to gauge
infrastructure and human resource preparedness during and in the aftermath of disruptive
events. The RCP will also incorporate improvements in the restoration, reconstruction,
rehabilitation activities, operational and maintenance standards and practices, and resiliency
standards for the future construction of distribution facilities. The resiliency measures
identified in the RCP and the capital expenditure programs of DUs shall be integrated into
their DDPs. The RCP will be reviewed regularly every three years. The DOE will consolidate the
respective individual energy industry participants' RCP and prepare the Energy Resiliency Plan
for the Energy Sector.

66
V. Power Sector Roadmap and Next Steps
Building on Sections III and IV and considering the outputs of stakeholders’ engagements,
particularly recommendations to address the power sector challenges, this Section presents
the BARMM Power Sector Roadmap, including the Strategic Objectives, Activities and Key
Targets. This section also proposes as Next Steps a list of parallel enabling activities while
embarking on the Roadmap.

During the key informant interviews (KIIs) and focus group discussions (FGDs) with
representatives from various BARMM ministries, the challenges, gaps, and issues concerning
the specific objectives and outcomes of the energy sector, as presented in Chapter III, were
discussed. The discussions generated recommendations for addressing these challenges, a
timeline, and specific targets for achieving the objectives. These are shown below. All of these
are laid out in this Section, while specific details are discussed and presented in Annex 1.

See Figures 16 and 17 for an illustration of the Timeline and Specific Targets of Power and
Energy Sectors.

67
Figure 16:Timeline and specific targets of power and energy section objectives in BARMM (a)

68
Figure 17: Timeline and specific targets of power and energy section objectives in BARMM (b)

69
Power Sector Roadmap

Overall Objectives

Guided by the BOL and towards implementing the BDP 2023-2028, the BARMM Power Sector
Development Roadmap aims to contribute to the overall and specific objectives of the
energy sector and address the challenges of the power sector.

The Roadmap has four elements: the Energy Sector Strategic Objectives, strategic activities to
achieve the Strategic Objectives, the corresponding targets to quantify the strategic activities,
and the timeline. The Strategic Objectives correspond to the specific objectives or strategic
milestones to address the current challenges in BARMM’s energy and power sector and
ultimately achieve the overall goal of improved energy security in the region. The BARMM
Power Sector Roadmap features five (5) Strategic Objectives, namely:

(1) Sufficient and Reliable Electric Power Industry,

(2) Improved Electrification Level

(3) Energy Institutions Established, Improved and Harmonized

(4) Potential Energy Resources and Facilities, Explored, Development and Utilized

(5) Partnerships Established.

Each of the Strategic Objectives is discussed below. Strategic activities are the potential steps
to achieve the Strategic Objectives. The Roadmap also articulates the corresponding targets
that are quantifiable and measurable pathways to carry out the strategic activities. Finally, the
timeline is divided into short-term (2023-2025), medium-term (2026-2030), and long-term
(2031-2040).

The BARMM Power Sector Roadmap is summarized and depicted in the Figure ES-2 below.

70
Figure ES-2: BARMM Power Sector Development Roadmap

71
Sufficient and Reliable Electric Power Industry
The first Strategic Objective highlights five key areas of focus, specifically, (a) improving the
viability of Electric Cooperatives (ECs), (b) putting measures for the effective and effective
institutional management of the ECs, (c) providing system improvement projects, (d) improve
payment or collection efficiency of/for electricity consumers to 95% while limiting customer
rate increases to 10% or less, and (e) reduce power interruptions by 70% in the medium term.
Furthermore, BARMM aims for the electric utilities in the region, in the medium to long term,
to participate in the wholesale electricity market (WESM), implement demand side
management (DSM) programs, develop and implement smart grid roadmaps, and develop
and implement energy resiliency plans. BARMM will work closely with the National
Government, particularly DOE, through the Intergovernmental Energy Board (IEB) to
implement the corresponding policies.

BARMM stakeholders have previously acknowledged the need to improve the power industry,
including setting up a system to ensure consumers pay their electric bills. Specific
recommendations also emerged from the FGDs and KIIs, including the opportunity for
underground cabling, citing the three major islands of Batanes as examples. The project was
said to spare Batanes from power interruptions during natural calamities.

Improved Electrification Level

The second Strategic Objective aims to increase the electrification level to at least 80% by
2030. The other objectives of this vector include improving access to electrification funds and
programs in the medium term and improving the reliability of the electric distribution network
and non-network facilities through infrastructure rehabilitation and improvement over the
long term. To improve electrification levels, particularly in off-grid areas, BARMM stakeholders
call for effective implementation of the Microgrid Systems Act (Republic Act 11646) and for
DUs to identify unserved and underserved communities so that the DOE can place these for
bidding on additional supplies/microgrid implementations. Following the BOL, BARMM will
focus on developing distributed renewable energy systems or sustainable power generation
options in implementing the Microgrid Systems Act. In areas of BARMM part of the Mindanao
Grid, the BARMM government will work closely with the national government through the IEB
in the exploration and development of renewable energy resources, both those that could sell
to the Mindanao Grid or embedded to the distribution network as well as grid-tied renewable
energy systems serving directly electricity consumers, particularly rooftop solar PV.

Potential Energy Resources and Facilities Explored, Developed and Utilized

The third Strategic Objective aspires, in the short to medium term, to formulate and
operationalize roadmaps and master plans and to Increase government spending (P200M to
P300M per year over three years) in energy resource exploration and development. This
Strategic Objective also aims to adopt renewable energy technologies in the short term. It

72
encourages private investments in energy resources exploration and development, including
policies for public-private partnerships in the medium to long term. Towards the development
of the renewable energy sector in BARMM, it will also work with the IEB, and other
appropriate national and regional agencies, including the Mindanao Development Agency
(MinDA), in the implementation of the policies under the Renewable Energy Act 2008 and
programs under the National Renewable Energy Program 2020-2040.

Energy Institutions Established, Improved, and Harmonized

The BARMM energy sector, under the fourth Strategic Objective, also aims to establish
appropriate energy institutions. In the first place, the BOL also calls for establishing a separate
Ministry of Energy (MOE). Thus, the Bangsamoro Transition Authority (BTA) or the
Bangsamoro Parliament has certified this as an urgent priority legislative measure. Among the
main mandates of the proposed MOE is power sector development, including promoting the
use of renewable energy for power generation to achieve sustainable development goals and
low (carbon) sustainable power generation policies. The BARMM energy sector aims to
explore, develop, and utilize potential (indigenous) energy resources and facilities. In this
regard, the BTA has also certified the creation of the Energy Development Corporation of the
Bangsamoro (EDCB) as an urgent priority bill.

Partnerships Established
This final Strategic Objective stresses the need to establish new partnerships and improve
existing partnerships by and between all stakeholders involved in improving energy security in
BARMM. This relates to the short, medium, and long-term efforts needed to establish and/or
strengthen the linkages, collaborations, and partnerships of the BARMM government with the
private sector, civil society organizations (CSOs), and international firms and investors.

The MOE and EDCB will be the main agencies leading the BARMM Power Sector Development
Roadmap implementation. The MOE and EDCB will also identify the other agencies in BARMM
that will take part in implementing specific strategies and activities. As indicated above, the
IEB and the electric utilities also have specific roles in implementing strategies and activities in
the Power Sector Development Roadmap.

Social and Environmental Impacts of Power Sector Development

Another aspect to consider in the Power Sector Development Plan are the social and
environmental impacts of developing the power sector itself. Table 13 below lays out the
potential results of initial social and environmental impact assessments of the energy and
power sector strategies of BARMM, which, as presented in Figure ES-2, support the Strategic
Objectives.

73
A more comprehensive economic, social, and environmental impact assessment of the energy
and power sector (or the power sector separately) may be undertaken using the IAEA
Indicators for Sustainable Energy Development presented in Annex 3.

74
Table 13: Potential social and environmental impact of power sector strategies and priorities87
Strategies

Priority/strategy Impact

● Enhanced provision of power to BARMM development projects

Ensure effective management of electric power industry, including improvement of distribution
network and non-network facilities and sufficient energy supply
● Improved efficiency of energy conversion and distribution
● Improved reliability of electricity service
● Improved energy infrastructure leading to88 :
o Improved production/output across sectors
o Enhanced delivery of key public services such as health and education
o Improved household well-being and efficiency gains such as in time savings,
communication, and educational investments.

● Power sector modernized

● Energy sources diversified resulting to improved energy security, therefore a more stable
power supply.
● Power development agenda integrated into BARMM’s development programs.
● Reduced dependence on imported fossil fuels. Avoid volatile oil prices that could increase
cost of goods and services.
● Increased expenditure on the power sector: investments, exploration, R&D, environmental
control, etc.
Pursue the exploration, development, and utilization of potential renewable and non-renewable
● Increased number of jobs in the power sector
energy resources within the Bangsamoro region and promotion of energy investment
● Increased generation capacity
opportunities
● Improved energy infrastructure leading to89 :
o Improved production/output across sectors
o Enhance delivery of key public services such as health and education
o Improve household well-being and efficiency gains such as in time savings,
communication, and educational investments.
● Improved adoption of renewable and non-renewable technologies
● Greenhouse gas emissions from the energy sector avoided or reduced.
● Ambient air pollutants from fossil fuel power plants avoided or reduced

87
For reference please see also Figure Energy Sector Objectives in Section III.
88
Kelsey, Jack (2022), “How much do we know about the development impacts of energy infrastructure,” World Bank blogs, 29 March.
https://blogs.worldbank.org/energy/how-much-do-we-know-about-development-impacts-energy-infrastructure
89
Ibid.
75
 ● Reduced (or increased) deforestation attributed to energy use
● Institutions established. Mandates and responsibilities are defined, harmonized, and
streamlined.
● Energy code/energy policies enacted.
Promulgate and operationalize effective and efficient enabling policies, and aid in the
● Local energy efficiency office (LGU-level), energy advisory board or energy technical
establishment of energy sector institutions
committee institutionalized.
● Improved citizen’s access/participation in energy sector planning and development
● Strengthened dissemination of information and delivery of power-related services

● Improved citizen’s access/participation in energy sector planning and development

Institutionalize co-management mechanisms between National Government and Bangsamoro ● More inclusive policymaking and implementation of programs.
Government, and strengthen partnership with Government, Private Sector, CSOs, and ● Improve public-private partnership, cooperation between government and various sectors.
International Partners ● Improved governance and accountability in the public sector.
● More efficient use of government resources
● Best practices and knowledge are shared across sectors
Priority legislative and policy agenda

Priority/strategy Impact

BARMM resources are allocated for the exploration, development, and utilization of renewable
Creation of the Ministry of Energy and non-renewable energy resources

● Increased control and oversight on the side of the BARMM government to accelerate energy
security and energy access.
Creation of the Bangsamoro Power GOCC (Electrification, Generation, and Regulation) ● Minimized confusion and overlapping functions of institutions involved in electrification,
generation, and regulation.

● Enhanced transparency in government procurement processes

● Procurement/awarding procedures have been applied properly and guidelines met.
Creation of IEB-Board/Committee for Service Contract Awarding ● Efficient use of government resources and value-for-money delivery of services are
guaranteed.

Strengthening the IEB TWG Seven Areas of Cooperation ● Improved capacity to respond to the needs and challenges of the seven areas of cooperation

Priority research and capacity development agenda

Priority/strategy Impact

76
Formulation and updating of Energy Development Plan Overall strategy remains responsive and relevant to changing socioeconomic and environmental
needs.

● Potential of renewable and non-renewable energy is identified and measured based on sound
evidence.and best available data.
Formulation of Resource Assessment Studies (Renewable & Non-renewable)
● Government and power sector investors have bases for program formulation and investment
decision making.

● Multi-sector participation in power development and planning

● Improved participation (or access to information) of women, other genders, youth and other
Strengthening linkages with Government, Private Sector, CSOs, and International Partners
sectors in realizing BARMM power development agenda
● Enhanced network of partners

● Overall strategy identified based on local context

Formulation of Renewable Energy Investment Plan ● Increased investment in renewable and non-renewable power

Utilization of renewable energy technologies Diversified energy solutions to address power sector concerns

77
Next Steps
To help accomplish the Strategic Objectives and achieve the targets through the
activities outlined, the following are enabling parallel activities towards roadmap
implementation.

1. Building Understanding of the DU Electric Cooperative Model Among Consumers

2. Conducting Baseline Assessment of the Proposed Project Areas
3. Addressing Reliability and Stability Issues in Existing Infrastructure
4. Addressing Energy and Power Needs in a Just Fashion
5. Information, Education, and Communication Campaigns
6. Intergovernmental Coordination and Cooperation
7. Gaining Stakeholder Consensus for Energy Initiatives
8. Strengthening Financial Options and Viability
9. Improvement of Regulatory Mechanisms and Governing Institutions

Building Understanding of the DU Electric Cooperative Model Among Consumers

There is a basic misunderstanding of the DU Electric Cooperative model among many
consumers. Consumers expect dividends, and discounts, among others, to be evident
due to being part of an electric cooperative. However, in thinking about the term
“Cooperatives”, the constituents envision the use as it may be commonly seen in
everyday life. Based upon this, consumers typically expect dividends and discounts,
among others, to be evident due to being part of an “electric cooperative.” The concept
of the DU Electric Cooperative still needs to be better explained and understood by the
constituents. This also shows that there may be possible issues with consumer
perceptions regarding the pricing structure or billing system, causing consumers to feel
that they are paying too much for too little. This has led some consumers to resort to
electricity pilferage. Electricity pilferage is a serious concern, as it could start fires and
lead to overloading of the existing distribution network, degrading the life expectancy of
equipment and leading to more frequent downtime of the infrastructure. Increased
downtimes lead to further consequences, including lower bill collection rates. This
suggests that there may be a need for more enforcement or monitoring of the
electricity infrastructure and highlights the need for better communication and
engagement with consumers and more robust measures to prevent illegal connections
and address safety risks. The underserved and unserved areas could be critical
priorities for the government and electric cooperatives to improve overall electricity
access and address underlying issues. Additionally, misconceptions about the benefits
of being part of a cooperative, which may be due to a lack of understanding or mutual

78
trust, could be addressed through information, education, and communication
campaigns and efforts that help consumers understand the cooperative model and the
potential benefits of being a member.

Conducting Baseline Assessment of the Proposed Project Areas

Conducting a validation in proposed settlement areas before proposing a new project is
a responsible approach to development. A baseline assessment of the site could
establish more accurately assessed potential economic, social and environmental
impacts of the new project and any necessary mitigating measures to help minimize
possible negative effects on the environment and the local community. Additionally,
improved coordination between ministries increases the project's effectiveness and
efficiency as it facilitates sharing knowledge and resources, identifying potential
challenges, and developing effective strategies to address them. Overall, this approach
can improve outcomes for the development project and the local community.

Addressing Reliability and Stability Issues in Existing Infrastructure

There have been improvements in electrification in BARMM, but significant challenges

remain. The frequent rotating brownouts indicate issues with the reliability and stability
of the electricity supply, which has severe implications for the daily lives of people in the
region, mainly if they rely on electricity for essential services such as healthcare and
education. Therefore, it is necessary to upgrade and expand the electricity
infrastructure in the region. This could involve improving existing power plants, building
new facilities, or exploring alternative renewable energy sources. The inventory of idle
lands in BARMM that can cater to power plants addresses the need to identify potential
locations for power plants that can help improve energy access and reliability. It is
crucial to ensure that these lands are suitable for such use and that any environmental
and social impacts are considered. Adopting a RE-inclusive strategy recognizes the
importance of transitioning towards renewable energy sources to reduce the carbon
footprint and mitigate the effects of climate change while ensuring energy security and
reducing dependence on fossil fuels.

Addressing Energy and Power Needs in a Just Fashion

Energy access, specifically electricity, is critical for communities to thrive. However, it is
often given low priority compared to other services, such as social, healthcare,
education, food and water, peace and order, etc. Complicating this is the need for
distribution utilities to access financial resources to improve their infrastructure, expand
their distribution lines and accommodate the increasing demand for electricity from
housing and infrastructure projects. The DUs may be constrained by their debts,
regulations, and social issues that limit their ability to raise tariffs to cover the cost of
new investments. Moreover, the non-payment of consumers due to the source of power
being in the vicinity and/or due to poor quality of electricity services, not to mention the

79
capacity to pay, are additional issues that need to be addressed. Addressing the issue of
consumer reluctance to pay could make it easier for energy providers to invest in
necessary infrastructure improvements, which could help the problem of frequent
brownouts.

Information, Education, and Communication Campaigns

One possible action that can address these challenges is to develop and strengthen the
information, education, and communication (IEC) campaigns that help increase
awareness and understanding of the benefits of reliable electricity access and educate
stakeholders on the importance of paying for the services they receive. Also, involving
the Local Government Units (LGUs) in the planning and implementation of
electrification projects can provide valuable input on the specific needs and challenges
of their communities, as well as contribute to the funding and maintenance of
distribution utilities and to the capacity building on developing a detailed engineering
design and systems design for distributed generation. By intensifying IEC and involving
LGUs in infrastructure development, the region may obtain dependable electrical
services to enhance their quality of life, foster economic growth, and support
sustainable development. These approaches can also guarantee that the initiatives are
sustainable in the long run, with local ownership and involvement.

Intergovernmental Coordination and Cooperation

Exploring, developing, and utilizing potential energy resources and their facilities raise
several essential considerations for energy development in BARMM. These key areas to
be considered include inter-agency collaboration and communication, environmental
sustainability, energy source utilization, political stability, community involvement, and
financial viability. Creating clear communication channels and procedures between the
many government departments participating in energy development is crucial to
address inter-agency collaboration and communication. By doing this, diverse
perspectives, concerns, and solutions are heard and included, if necessary. And when
creating energy policies and projects, it is vital to consider the political situation in
BARMM to ensure political stability, which is required for the development of the energy
sector by 2025, as described in the roadmap above.

Gaining Stakeholder Consensus for Energy Initiatives

Exploring renewable energy choices and reducing the environmental impact of power
plants that produce carbon can both help to improve environmental sustainability. This
can entail converting as quickly as possible to green energy, using coal to satisfy energy
needs in the short term, and securing the permission of indigenous peoples if energy
extraction is to take place on their territory. Additionally, utilizing renewable energy
sources through publicly owned and controlled systems can encourage community

80
involvement. This may result in more community support and participation in energy
initiatives, which may contribute to the success and sustainability of those projects.
Though, the need to obtain the consent of indigenous peoples if energy extraction is to
be done on their lands is a critical consideration. This reflects the region's commitment
to respecting the rights and interests of indigenous peoples and ensuring that energy
development is carried out ethically and sustainably.

Identifying underutilized land that may accommodate power plants, modernizing

existing facilities to provide quality service, and working with independent power
producers are critical to diversifying energy sources and boosting competition in the
energy industry to promote energy sources. The suggestion to tap into independent
power producers, including foreign companies like Kaltimex, is a positive step towards
diversifying the region's energy sources and promoting competition in the energy
sector.

Strengthening Financial Options and Viability

Financial viability is essential for attracting investment into this area and promoting the
development of financially sustainable energy projects. Consideration of the returns on
investment for investors and promotion of energy project development that are
financially viable and sustainable may also be part of this.

There is a need for effective financial institutions serving the energy sector that can
oversee, regulate, and coordinate energy projects and policies in the region. Due to the
(still) limited financing and investment space in the region, the BARMM GOVERNMENT
will also rely on Official Development Assistance (ODA) from various international and
local development partners. Most of the ODA in BARMM comes largely from the UN and
the EU (COA, 2019, 2020, 2021). The Bangsamoro Planning and Development Authority
(BPDA) has crafted the Official Development Assistance (ODA) handbook that will serve
as the basis for coordination, monitoring, evaluation, and reporting of all proposed
foreign-assisted programs and projects implemented in the BARMM (BPDA, 2020).
Establishing and improving financial institutions serving the energy sector (e.g., public,
private, development banks, etc.) is critical for ensuring that energy projects in BARMM
are implemented effectively, efficiently, and sustainably.

Improving Regulatory Mechanisms and Governing Institutions

The absence of a regulatory office for power distribution and telecommunications

highlights the need for improved regulatory mechanisms to ensure effective oversight
and governance of these critical sectors. By establishing effective enabling policies and
institutions, there can be a more transparent framework for energy projects to operate
within, promoting greater transparency, accountability, and consistency.

81
Another example of how energy institutions (such as MENRE, DUs/ECs, energy
regulators, etc.) can contribute effectively to developing an efficient energy system is by
establishing and operationalizing Coordinated Management and Coordination
Arrangements between the Bangsamoro Government and the national government.
Energy institutions can play an essential role in reducing redundancies and improving
the efficiency of energy projects, ultimately helping to encourage a more stable
development of energy resources through efficient coordination and implementation of
energy policies and projects. Enhancing coordination between ministries and
establishing a coordination mechanism between development partners can also help
address debt issues facing electric cooperatives and difficulties faced by the NEA in
exercising its mandate over ECs in BARMM. Energy institutions can contribute to
reducing power cooperatives' financing burdens and ensuring that NEA can better
enforce its mandate through practical cooperation.

Overall, establishing, improving, and harmonizing energy institutions is critical for

ensuring that energy projects and policies are implemented sustainably and effectively.
Energy institutions can contribute to energy security, reduce energy poverty, and
promote sustainable regional development through greater coordination, transparency,
and accountability.

82
VI. Energy Transition Opportunities
With the Power Sector Development Roadmap in place and its implementation, BARMM
could take advantage of the energy transition opportunities that come with power
sector development under the UN’s sustainable development framework.

As one of the main foundations of the Roadmap, the BOL provides the overall enabling
framework for energy transition by promoting sustainable development through proper
conservation, utilization, and development of natural resources and low-carbon
sustainable power generation. This section discusses opportunities for the energy
transition in BARMM, which the power sector development roadmap would bring about.

Meanwhile, energy transition is framed in the context of the SDG7 goals, that is,
universal and inclusive access to clean, modern, affordable, and reliable energy and
increased energy efficiency and renewable energy penetration. SDG7 is aligned with the
national and regional energy plans and international agreements. The concluding
section ends with financing opportunities for the energy transition and power sector
Roadmap.

Energy Access (and Energy Security)

Access to clean and affordable energy is pivotal to the growth and development of
agriculture, commerce, communication, transportation, education, and healthcare. The
inadequate supply and access to energy have lasting negative impacts on
socioeconomic and human security. Energy security is closely associated with energy
access, which is defined by the International Energy Agency as the uninterrupted
availability of energy resources at an affordable price.

As shown earlier, BARMM is teeming with economic potential for inclusive and equitable
growth, specifically with rising electricity demands across all sectors due to peace
dividends and the national attention it receives, as well as international support. The
macroeconomic target for the next five years is a sustained Regional GDP growth rate of
6.0% to 6.5% and a reduced unemployment rate from 5.6% in July 2022 to 3.0% to 4.0%
by 2023.90

Renewable Energy
The abundant renewable energy resources, such as solar, geothermal, biomass, ocean,
and hydropower, can be harnessed to support the region’s growth and expansion.
Besides expanding its power generation capacities in BARMM, the National Power

90
Bangsamoro Transition Authority, 2022.

83
Corporation-Small Power Utilities Group (NPC-SPUG), is hybridizing diesel gensets with
solar PV in off-grid areas. The integration of other renewables in the system will reduce
electricity costs and subsidies and increase NPC-SPUG operation to 24 hours in certain
areas.91

The abundant and diverse renewable energy resources also provide the private sector
with wide space (over land and seas) for financing and investing in renewable energy
development.

The newfound peace and stability have increased investor confidence in BARMM. The
BARMM regional government is now working with local governments to streamline
business processes for issuing permits and clearances in renewable energy project
development. Ensuring ease of doing business is expected to attract new capital in the
region further. In addition, the BARMM government, together with local governments,
will identify viable RE sites for development. Renewable energy looks promising for the
region with the right incentives, regulatory regimes, and enabling market environment
to attract private sector participation.

The National Renewable Energy Program (NREP) 2020-2040 aims to contribute to

consumer empowerment by increasing the adoption and application of renewable
energy in rural areas. This is not only to increase access to electricity but also to exploit
its applications in delivering basic social and economic services, particularly in the
agriculture, fisheries, health, and education sectors.

Given the thrust of the BARMM government in sustainable and distributed power
generation, the NREP support strategies should be extended to BARMM through the
IEB. These programs and strategies include, in particular, the following:

1. RE program for the Agriculture and Fisheries Sector

2. Productive Uses of Renewable Energy

3. Local Renewable Energy Planning

4. Waste-to-Energy (particularly in Cotabato City)

For example, MENRE and MAFAR can collaborate in the application and development of
RE technologies for the agri-fishery sector, a major economic sector in BARMM. This
should be supported by the DOE and the DA through the appropriate
intergovernmental relations body.

91
Mindanao Development Authority, 2018

84
The program's objective on Productive Uses of Renewable Energy (PURE) is to open up
livelihood opportunities through community-based enterprises, augment income, and
build resilience, especially in off-grid areas.

LGUs in BARMM can pursue local renewable energy planning to complement the
delivery of basic social and economic services, including housing, health, education,
sanitation, and water supply. In this regard, the Ministry of Health (MOH), Ministry of
Human Settlements and Development (MHSD), and Ministry of Basic, Higher, and
Technical Education (MBHTE) can collaborate with MENRE in the planning of their
respective programs and infrastructure projects towards the application of distributed
renewable energy to supply the electricity needs of such facilities and services, even if
grid electricity is not available.

The Local Government of Cotabato City, in collaboration with MENRE, Cotabato Light
and Power Corporation, and with policy, technical and even financial support from DOE,
can explore waste-to-energy (WTE) opportunities in the city, mainly as a solid waste
management strategy of the city as well as compliance of the utility on renewable
portfolio standards.

All renewable energy development in BARMM shall contribute to the NREP target of a
35% share of RE in the country's total power generation by 2030.

Beyond energy and power sector development, using renewable energies can help
reduce the amount of harmful pollutants and greenhouse gas emissions that contribute
to the problem of climate change and thus contribute to the country’s NDC
commitment.92

Additionally, developing these resources will spur job creation opportunities and
encourage the expansion of local SMEs and industries. For instance, using biomass
resources can lead to job growth in agriculture and forestry. Hydropower development
can lead to job growth in the building and upkeep of power plants. Data from DOE
shows that variable renewable energy technologies (RETs, solar and wind) generate
more jobs per kW or MW of installed capacity than conventional RETs (hydropower and
geothermal), particularly during construction.

Energy Efficiency

Energy utilization and environmental sustainability are intrinsically linked. Like

renewable energy, efficient use is directly associated with environmental protection and
92
Through the NDC, the Philippines commits to a projected GHG emissions reduction and avoidance of 75%, of which
2.71% is unconditional and 72.29% is conditional, representing the country’s ambition for GHG mitigation for the period
2020 to 2030 for the sectors of agriculture, wastes, industry, transport, and energy. (REPUBLIC OF THE PHILIPPINES
Nationally Determined Contribution Communicated to the UNFCCC on 15 April 2021
https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Philippines%20First/Philippines%20-%20NDC.pdf

85
decreases greenhouse gas (GHG) emissions. While the demand for energy increases in a
community, sustainability must not be compromised.

The people’s consciousness towards energy efficiency is fundamentally built on the

governance reforms, such as enabling policies, reorganization, research and
development, continuing education, information dissemination, and harmonization of
efforts. It is a rare opportunity that there is a unified government in BARMM since the
ruling political party in power controls both the executive and legislative departments.
Thus, the formulation and enactment of legislation are not delayed due to ideological
differences and bureaucratic red tape. The BARMM government has established inter
and intra-ministry coordinative mechanisms to speed up consensus and
decision-making.

The Energy Efficiency and Conservation (EE&C) Act 2019 provides specific opportunities
for BARMM local governments to mainstream energy efficiency and conservation locally.
The EE&C Act mandates LGUs to set up a Local Energy Efficiency and Conservation
Office and prepare a Local Energy Efficiency and Conservation Plan.

The EE&C Act also institutionalized and provides strategic direction to the DOE flagship
Government Energy Management Program (GEMP). The GEMP refers to the
government-wide program of reducing the monthly consumption of electricity and
petroleum products by at least 10%. This is achievable through efficiency and
conservation in electricity use, fuel use of government vehicles, and the employment of
renewable energy systems, among others. GEMP provides specific EE&C opportunities
to both the BARMM regional and local governments.

Financing the Power Sector Roadmap and Energy Transition

The Republic Act No. 11504, or Bangsamoro Organic Law (BOL), has provisions to
ensure the self-reliant, autonomous, and sustainable financing and resource
mobilization of the BARMM government plans, programs and projects.

Under Sections 15 and 18, Article XII of the BOL, the national government shall provide
an annual block grant which shall be the share of the BARMM Government in the
national internal revenue tax collections of the Bureau of Internal Revenue and
collections of the Bureau of Customs. Block grants are geared towards enhancing the
local government’s effectiveness as part of the broader decentralization goal of BOL
(Mendoza & Yusingco, 2019). Another factor for such block grants is to primarily control
deficits and support the public service delivery of the BARMM government. The grant
can be utilized at the local level to finance activities at the direct control of the
communities themselves.

86
In Section 16, Article XII of the BOL, the amount of the block grant is equal to the 5% of
the net national internal revenue tax collection of the Bureau of Internal Revenue (BIR)
and the Bureau of Customs (BOC) in the third fiscal year preceding the current fiscal
year. The block grant is now the principal source of revenue, estimated to be 80% of its
total revenue since 2020. It has to be automatically appropriated in the General
Appropriations Act of Congress and be directly released without further action or
conditions. This accounts for the current P64.755 billion in the National Expenditure
Program for FY 2023.

Another source of funds for BARMM government is the Special Development Fund that
provides for an allocation of P5 billion per year for 10 years from the enactment of the
BOL (in 2019) intended for rebuilding, rehabilitation, and development of
conflict-affected communities following Article XIV of the BOL.

For the FY 2023 Bangsamoro Expenditure Program (BEP), the BARMM government
distributed the P85.3 billion budget as seen in Table 14 below:

Table 14: BARMM Regional Expenditures for FY 2023

Ministries Allocation (In billions) %
Ministry of Basic, Higher and Technical
27.20 31.89%
Education
Ministry of Public Works 16.47 19.31%
Office of the Chief Minister 5.90 6.92%
Ministry of Health 5.70 6.68%
Bangsamoro Transition Authority 3.90 4.57%
Ministry of Social Services and Development 2.90 3.40%
Ministry of the Interior and Local Government 2.04 2.39%
Ministry of Agriculture, Fisheries and Agrarian
1.50 1.76%
Reform
Ministry of Environment, Natural Resources
0.83 0.97%
and Energy
Ministry of Transportation and
0.54 0.63%
Communications
Others 18.32 21.48%
TOTAL 85.30 100.00%
Source: Bangsamoro Transition Authority (2022)

It should be noted, however, that despite the BARMM being considered an autonomous
subnational government, its constituent Local Government Units (LGUs) are still
subjected to national laws, budgeting rules and regulations imposed by the Department
of Budget and Management and Department of Interior and Local Government.

The provisions of Republic Act No. 7160, or the Local Government Code of 1991, on
using LGUs within BARMM of their internal revenue allotment (IRA) or National Tax
Allotment (NTA)93 shall remain fiscally independent from the BARMM government. The

93
NTA is the new name for IRA (National Tax Allotment (NTA) (dbm.gov.ph)).

87
NTA released by the national government to LGUs in BARMM consisted of over 90% of
their total annual revenue (internal and external sources). Thus, it is the largest source
of funding among LGUs within BARMM.

As to locally generated revenues, BARMM has the lowest among the other regions in
Mindanao. For the local sources, BARMM has an 87% percentage difference against the
average of Regions 9 to 13. For tax revenue, the difference is 992%, and for non-tax
revenue, it is 763% on average. Thus, it has to be capacitated in local tax administration
and raising revenues from public services and economic enterprises.

To support the development efforts of the BARMM, the enactment of the Republic Act
No. 11439, or the Islamic Banking Act in 2019, has instituted the policy framework for
the organization and regulation of Islamic banks in the country. Republic Act No. 6848,
or the Charter of the Al-Amanah Islamic Investment Bank, was also aimed to promote
and accelerate the region's socio-economic development by performing banking,
financing, and investment operation, particularly in agriculture, commercial and
industrial ventures. The bank’s role is pivotal in financing the low-carbon transition
investments in the region, including how to make the region an active and integral part
of the national economy. The bank's authorised capital stock was P1 billion divided into
ten million par value shares.

Section 34, Article XII of BOL likewise provides that all generated from the exploration,
development, and utilization of all natural resources, including mines and minerals in
the Bangsamoro territorial jurisdiction, shall pertain fully to the BARMM government.94
See Tables 15 and 16.

94
In the case of uranium and fossil fuels such as petroleum, natural gas, and coal, there will be co-management and
equal sharing between the NG and the BARMM government. The BARMM government share will be apportioned as
follows: 30% BARMM government; 20% to the provinces; 15% to the cities; 20% to the municipalities; and 15% to the
barangays (Article XII, Section 35).

88
Table 15: IRA dependency of Regions in Mindanao as of FY 2020 (Bureau of Local Government Finance, DOF)
REGION IX REGION X
REGION XI REGION XII REGION XIII
Particulars (In millions) (Zambo (Northern BARMM
(Davao) (SOCCSKSARGEN) (Caraga)
Peninsula) Mindanao)
TOTAL INTERNAL & EXTERNAL SOURCES 26,266,750.22 40,435,119.21 39,531,721.71 29,731,350.85 27,770,079.70 29,857,494.73
Internal Revenue Allotment 21,245,876.30 28,727,697.57 26,383,208.51 23,374,809.37 21,592,495.02 27,091,682.01
Other Shares from National Tax
10.98 701.51 143.48 27.33 800.32 151.70
Collections
Inter-Local Transfer 28.09 207.31 216.86 92.45 148.02 32.59
Extraordinary
1,819.79 2,263.66 2,402.73 1,768.21 1,551.78 1,969.21
Receipts/Grants/Donations/Aids
IRA Dependency 80.9% 71.0% 66.7% 78.6% 77.8% 90.7%

89
Table 16:Sources of Revenues of Regions in Mindanao as of FY 2020 (Bureau of Local Government Finance, DOF)
REGION IX REGION X Ave of % difference
Particulars (In REGION XI REGION XII REGION XIII
(Zambo (Northern BARMM Region IX of BARMM
millions) (Davao) (SOCCSKSARGEN) (Caraga)
Peninsula) Mindanao) to XIII from Ave
LOCAL SOURCES 3,162.02 8,534.94 10,385.45 4,468.56 3,677.47 612.31 6,045.68 887%
TAX REVENUE 1,581.93 5,124.48 6,965.51 2,375.34 2,109.94 332.43 3,631.44 992%
Real Property Tax 567.30 2,273.79 2,643.38 974.95 607.66 96.31 1,413.42 1368%
Tax on Business 924.03 2,625.20 3,825.24 1,266.81 1,371.58 187.96 2,002.57 965%
Other Taxes 90.60 225.49 496.89 133.57 130.70 48.16 215.45 347%
NON-TAX REVENUE 1,580.09 3,410.45 3,419.94 2,093.22 1,567.53 279.88 2,414.24 763%
Regulatory Fees
201.95 491.33 593.76 290.27 295.89 71.65 374.64 423%
(Permit and Licenses)
Service/User Charges
425.31 1,078.33 977.30 857.20 592.92 58.49 786.21 1244%
(Service Income)
Receipts from
Economic Enterprises 690.48 1,666.67 1,629.21 746.82 584.50 91.20 1,063.54 1066%
(Business Income)
Other Receipts (Other
262.33 174.13 219.66 198.93 94.22 58.54 189.85 224%
General Income)

90
Due to the limited financing and investment space in the region, the BARMM
government receives significant foreign assistance in the form of Official Development
Assistance through the support of various international and local development
partners.95 In fact, the Bangsamoro Planning and Development Authority (BPDA) has
crafted the Official Development Assistance (ODA) handbook that will serve as the basis
for coordination, monitoring, evaluation, and reporting of all proposed foreign-assisted
programs and projects implemented in BARMM. (Bangsamoro Planning & Development
Authority, 2020).

They are excluded from the total amount of loans, credits, and indebtedness, excluding
interests, which the President is authorized to incur, which shall not exceed 10 billion
United States Dollars (USD) or its equivalent in other foreign currencies and terms of
payment of not less than 10 years, except those contracted in the interest of national
security and rehabilitation resulting from natural calamities. A case in point is the
foreign-assisted USAID’s Alliance for Mindanao Off-Grid Renewable Energy (AMORE) for
electrification in off-grid areas, the Growth with Equity in Mindanao (GEM) and the
Multi-donor trust fund’s ARMM Social Fund Project (ASFP) for port development. Table
17 below lists the ODA projects in BARMM.

It appears from the ODA list that low-carbon energy transition has not been prioritized
in the region. Thus, it is important to strengthen and promote the activation of
intergovernmental mechanisms that will work for a more coordinated and synchronized
national government and BARMM government development plans and policies on
infrastructure, fiscal policies, legislative initiatives, and energy issues as well as
sustainable development policy and practice in BARMM. This specifically refers to the
Intergovernmental Energy Board which is the body that resolves all matters on energy
and power generation.

95
Republic Act 8182, or the Official Development Act of 1996, refers to loans and grants administered to promote
sustainable social and economic development and welfare of the Filipinos. It must be contracted with the governments of
foreign countries with whom the Philippines has diplomatic, trade relations, or bilateral agreements, or which are
members of the United Nations, their agencies, and international or multilateral lending institutions.

91
Table 17: COA Consolidated Audit Report for ODA (FY 2021, 2020, & 2019)
Amount of the Grant
Year Project Source USD PHP

Scaling Up the Joint Programme on risk-informed shock-responsive social protection in

FAO 0.65 33.22
BARMM amid COVID-19

2021 Strengthening BARMM's Preparedness and Response Capacity for Effective COVID-19
IOM 2.73 139.02
Prevention and Control

Agri-business development in Bangsamoro Region EU 22.71 1,160.17

Promoting conflict prevention, social cohesion and community resilience in BARMM in the time
of COVID-19 UN System 134.43
1.60

2020 Capacity Development of the New BARMM Cadre and Reintegration/Transformation of Female
Ex- Combatants into Gender-related Social Service Work for Sustained Peace in BARMM New Zealand 0.26 14.98

Ensuring inclusive risk-informed shock-responsive SP resulting in more resilient BARMM

communities UN System 0.96 57.04

Support to Agriculture and Agribusiness Enterprises in Mindanao for Sustainable Development UN System 5.80 294.65
2019
Technical Support in Enhancing Climate Resilient Agriculture in Vulnerable Communities in
Bangsamoro UN System 0.15 7.62

92
To conclude, the BARMM Government will establish key financial institutions and
agencies to ensure that the basic financial management functions are in place and
operating effectively. These arrangements are essential to support public policy and
planning, particularly in mobilizing and dispersing the funds required for public spending
priorities, approved allocations, and project requirements (World Bank, 2019). In terms
of energy transition programs and initiatives, funds should be available in a timely
manner to meet the expenses and pay for the goods and capital investments. Internal
controls will be set up to identify risks, errors and omissions in order to institute
corrective actions. Documents and other records will be maintained to assure
multilateral donors that the funds are utilized for their intended purpose with utmost
efficiency and economy. In addition, the role of financial intermediaries and official
development assistance can buttress the drive of the BARMM government toward
energy transition to clean and sustainable renewable investments.

93
List of References

1. Al-Amanah Islamic Investment Bank of the Philippines (2020). 2020 Annual

Report: Amanah opens possibilities.
https://amanahbank.gov.ph/images/pdf/annual_rpt/Annual_Report_2020.pdf

2. Bangasamoro Planning & Development Authority (2020). BPDA to craft official

development assistance handbook. https://bpda.bangsamoro.gov.ph

3. Bangsamoro Planning and Development Authority . (2022). 1st Bangsamoro

Development Plan (2020-2022). Cotabato, BARMM; Bangsamoro Planning and
Development Authority (BPDA) - BARMM. BARMM, 1st Bangsamoro Development
Plan 2020-2022. https://bpda.bangsamoro.gov.ph/1stbpd/1st-bdp-2020-chapters/

4. Bangsamoro Government. Official Website of Bangsamoro Autonomous Region in

Muslim Mindanao. Retrieved from https://bangsamoro.gov.ph/

a. “2nd Bangsamoro Development Plan sets path for ‘empowered, cohesive,

progressive’ BARMM in 6 years,”
https://bangsamoro.gov.ph/news/latest-news/2nd-bangsamoro-developm
ent-plan-sets-path-for-empowered-cohesive-progressive-barmm-in-6-year
s/

b. “BARMM intervenes on MAGELCO power outage issue,”

bangsamoro.gov.ph, 8 April 2022,
https://bangsamoro.gov.ph/news/latest-news/barmm-intervenes-on-mage
lco-power-outage-issue/

5. Bangsamoro Government. (2020). About. Bangsamoro Autonomous Region in

Muslim Mindanao. Retrieved from http://barmm.ph/about.html

6. Bangsamoro Parliament. Bangsamoro Government. Retrieved from

https://parliament.bangsamoro.gov.ph/

a. Bill-No.-14-MP-Amilbahar-Mawallil-CREATING-THE-MINISTRY-OF-ENERGY,
https://parliament.bangsamoro.gov.ph/wp-content/uploads/2022/09/Bill-
No.-14-MP-Amilbahar-Mawallil-CREATING-THE-MINISTRY-OF-ENERGY.pdf

b. Bill-No.-33-Government-of-the-day-CREATING-THE-ENERGY-DEVELOPMEN
T-CORPORATION-OF-THE-BANGSAMORO,
https://parliament.bangsamoro.gov.ph/wp-content/uploads/2022/09/Bill-
No.-33-Government-of-the-day-CREATING-THE-ENERGY-DEVELOPMENT-C
ORPORATION-OF-THE-BANGSAMORO-1.pdf

94
7. Bangsamoro Transition Authority (2022). The Chief Minister Budget Message:
Ahod Balawag Ebrahim, Al-Hajj.
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102
VIII. Annexes
Annex 1: Consolidated FGD Outputs
Table 18 Consolidated FGD Outputs
Sufficient and Reliable Electric Power
Industry
-Improve the viability of Electric Cooperatives
-Effective and efficient institutional
management of ECs
-Improve power supply level reliability
-Provide projects for system improvement
-Establishment of Sufficient and reliable electric
distribution network and non-network facilities
Challenges, Gaps, Issue
Huge debt of the ECs
National government wants the payment of
debts be shouldered by BARMM
NEA having difficulties in fully exercising their
mandate over the EC’s in BARMM
Change of leadership in Electric Coops
The ECs do not provide reliable services despite
collecting high rates
Hours of brownout exceed powers of electric
connectivity.
Brownouts are very frequent in the area
Infrastructures are prone to damage (e.g.
bombings, extortion activities)
Recommended Strategies, Actions, Measures Comments/Remarks
Debt condonation
Privatization of the ECs (including Public-Private
Partnerships)
Need for policy structure, ex. Establishment of a
GOCC
continue discussions over EC Issues to come up
with a resolution
Overhaul of cooperatives (back to zero), BARMM
can also take over but with just compensation
Regulatory control for Electric Cooperatives and
resolve issues
One solution is conversion to underground
Upgrading of facilities to ensure the delivery of
cables, or use of underground cables in new or
good service
unserved areas.
Microgrids can be done in BARMM. LGU are
capacitated to do
103

Conversion of agricultural lands to industrial
lands requires certification from MAFAR but
remains pending in some facilities (e.g. CLPC
substation)
Absence of CLUP in most if nor majority of LGUs
Telecommunications towers need power
DUs have no finance to put up new distribution
lines to accommodate housing and
infrastructure projects
The geographical make up of BARMM especially
of the island provinces make it hard to electrify
households.
Some people reside in Marsh areas which make
it hard to electrify households in the area.
There are many areas that are
unserved/underserved by the ECs
Fire ensues in areas because of illegal jumpers
Expansion of urban growth will entail higher
energy consumption
1. Regional Inter-agency Committee – facilitate
veracity, legitimacy of land ownership, land
classification
2. Data gathering – inventory of resources,
existing facilities
Opportunity for renewable distributed
generation (i.e. towers powered by hybrid
stand-alone renewable energy systems)
capacity building on developing a detailed
engineering design and systems design for
distributed generation
Particularly with respect to extending the grid in
the case of Lanao del Sur and the Maguindanao
provinces and with respect to constructing
mini-grids in the BASULTA area (logistics
requirements increase the cost of
electrification).
But this situation presents opportunities for
distributed generation solutions, including
microgrids. The Microgrid Systems Act is an
enabling legislation in this regard.
The Microgrid Systems Act requires ECs and Dus
Inventory of idle lands in BARMM that can cater
to declare underserved and unserved areas
to power plants
within their respective franchises. Then DOE will
Adoption of Renewable Energy Strategy
auction these areas to qualified parties.
Indeed, electrical safety is an important issue
including in an urban setting. This could be
Use education, information dissemination, and
addressed by strict compliance to the Philippine
religious consequences of using illegal power
Electrical Code, including solar PV systems and
source
microgrids. But enforcement of the PEC that
rests with the LGUs is a big issue altogether.
This should actually improve the viability of
distribution utilities.
104

-Improve payment efficiency of electric
consumers
Improved Electrification Level
-Improved access to electrification funds and
programs
People do not see the point of paying because
they think they should not pay in the first place
or there are not benefits to them
Misconceptions about the benefits of being a
cooperative. Consumers expect dividends,
special discounts etc that is why they are saying
they don’t need to pay
People cannot afford to pay and have to
prioritize their other basic needs
LGU resources not enough to establish RE, help
DUs
Govt subsidies (SEP, BLEP) but not being
accessed due to non-liquidation;
mismanagement; continuity/transition issues;
Electrification is a least priority among LGUs
relative to other social and economic services.
Lack of awareness of value of electricity services
Lack of access to stable power supply for ARBs
(Agrarian Reform Beneficiaries)
Housing projects lack electricity supply.
Identified housing projects are in the “red” area
of MENRE status of electrification
Redirect Mindset of people in BARMM (right
now people don’t want to pay for bad service.)
and Non-payment because the source of power
is in the vicinity
Some LGUs pay the power bills of their
constituents, their own initiative; no agreement
Digitalization to improve collection efficiency
Clearly define roles of ECs, DUs
Technical assistance to capacitate personnel
(LGU-MENRE relationship)
Sustainable budget and funds allocation Not to mention ER1-94 in the case of Lanao del
Inclusive approach Sur which hosts Agus 1 and 2
Intensify IEC
Secure counterpart funding from LGUs
Enabling ordinances, LGU policies
capacity building of citizens
capacity building of LGU to sustain and manage
alternative sources of energy,
can tap the Local Inter-Agency Committee for
the turnover of housing and implementation of
housing development plan
conduct validation in the proposed settlement
area/s first before proposing a new project
(baseline)
improved coordination between ministries
105

Airport and seaport developments, including
rehabilitation, modernization and digitalization
of such facilities, are hampered by lack of (and
unstable/unreliable) electricity supply
Development of alternatives to grid supply need
expertise and technical assistance
-Improving the reliability of electric distribution
network and non-network facilities through
infrastructure rehabilitation and improvement
projects
Potential Energy Resources and Facilities
Explored, Developed and Utilized
Perception of investors
-Access to Investments on Energy Resource
Exploration and Development established
Community pushback because of fear of
-Exploration, Development, and Utilization of
exploitation and displacement
potential conventional and renewable energy
Connectivity (logistics)
sources
Conflicting claims
Local disputes
The airports are hosted by major towns and
cities; so opportunity to underground cabling to
improve reliability.
Seaports in unserved and underserved areas
and islands present opportunity for hybrid
decentralized RE systems.
Mini-grid as technology solution for housing and
for MOTC facilities – this can already be
integrated into the project proposal
Tap MENRE into providing technical expertise in
providing power supply solutions (menu of
options)
We need to have guidelines or policy from
legislative authorities what can be applied in the
infrastructure.
existing policies should be strengthened and
there should be IEC on applicable laws; one
example is the Green Building Code
Resolve issue about Electric Cooperatives
Opportunity for underground cabling. For
example, the three major islands of Batanes is
100% served by underground cables, and has
been spared of power interruptions even during
calamaties.
Block grant from BARMM to initiate energy
development
Tap independent power producers (even
foreign like Kaltimex)
(Ensure) ROI of investors
Incorporate in the Revenue Code admin fees,
make RE more attractive than coal-based
projects; not too restrictive for renewables;
fiscal incentives
106
Exploitation of local politicians Local and Regional Energy Code should include
Capacity of local companies fiscal incentives for RE devt projects
Invest in R&D for energy devt for local resource
exploitation
Explore WTE since BARMM has lots of
agricultural wastes
Explore Marine RE
Energy resource inventory
Extraction of energy resources should be done
with consent of Ips if it will be done in
indigenous peoples sites
Harness renewable energy sources through
systems that are controlled and owned by
people
lack of finance to utilize potential energy
sources i.e. solar power, Natural gas
capacity building on the technical utilisation and
access to finance for solar panels, street lights
lack of capacity in utilizing energy resources
information dissemination on EE and
conservation
difficulty in upgrading to energy-efficient and
clean-energy technologies for housing and
industry infrastructure
lack of a waste management system in BARMM
i.e. collect and dump to landfill and water
bodies
future plan in consideration: waste-to-energy in
human settlement areas - needs further
research and financing
Permits are signed by DOE, LGU, MENRE, MIPA
The only concern with Carbon generated power
plants is its impact to our environment. If there
are options for renewable energy we should
look into it as well
BARMM shall use coal first like the national
government then explore green energy

107

-Roadmaps & Master Plans Formulated &
Applied/Operationalized
-Renewable and non-renewable energy
technologies adopted and implemented
Energy Institutions Established, Improved
and Harmonized
-Effective enabling policies and institutions
Established
afterward. Perhaps when the national govt has
also adopted a greener energy
Due to BARMM’s current needs we shall utilize
the most available source. We will use it in the
meantime especially during the transition
period (2025)
Invest in capacity building for BARMM
Invest in the education sector
Technical expertise
Incorporate power development in
comprehensive plans
Term-based as against long-term development
of the energy sector
The political landscape in BARMM by 2025 will
be very different. We cannot waste time to wait
for availability of renewable energy
Resistance for power development in the area
due to environmental concerns; trust issues
Blue Economy program/projects
with investors;
LGUs are a bit defensive
Nuclear energy is the cheapest and most
reliable. Safety precautions should be executed
to ensure security of area
Harmonization of national and local policies
Fully enabled and well-funded Ministry of
Unclear devolution of powers
Energy
No regulatory office for power distribution
Strengthen legislative support
Multi-sectoral approach
Politics is a big challenge since BARMM is new.
There is no local governance code and IP code
yet
There are sufficient number of engineers,
specialists, etc. but there are no job
opportunities in BARMM
108

-Establish and operationalize Co Management &
Coordination Mechanisms between BARMM
government & national government
-Strengthened partnerships with Government,
Private Sector, CSOs, and International Partners
There should be legislation that tackles energy
sources in BARMM should be exclusively
distributed to BARMM ONLY. (e.g. Lamsan Inc.
produces surplus of biomass power and
distributes it outside of BARMM)
Projects should be consulted to all ministries
concerned. Consolidation of actions and
recommendations for the project are coursed
through the BPDA
Who should have final jurisdiction over the ECs
and DUs in BARMM?
-MENRE is hesitant to accept full authority due
to the underlying problems (debt, capacity to
handle/manage); terms should be properly
defined before management is turned over;
-Expected resistance of the ECs (on any change
of jurisdiction)
LASURECO/MAGELCO do not have power supply
contracts even with PSALM;
BARMM does not have legal authority over the
ECs
Establish good relationship with the LGU;
Lack of clear agreement between the LGUs and involve them and establish sense of ownership.
the ECs Institutionalize inter-agency roles
Lack of community support (not an immediate improve the coordination between ministries
concern) establish a coordination mechanism between
development partners
Partnership with the private sector
109
Table 19: Timeline and specific targets of power and energy sector objectives

Objectives 2023 (Baseline) 2025 2028 2040

Sufficient and Reliable Electric Power Industry
1. Improve the viability of Electric Cooperatives

2. Effective and efficient institutional management of

ECs
3. Improve power supply level reliability
3-6 hours in areas
close to generator,
3.1. Power interruptions (brownouts) 70% reduction
12 hours in areas far
from generator
4. Provide projects for system improvements
5. Establishment of Sufficient and reliable electric
distribution network and non-network facilities
6. Improve payment efficiency of electric consumers
6.1. Collection efficiency 60-70% 95%
Less than 10%
6.2. Electricity tariffs P9-12 per kWh
increase in 2028
Improved Electrification Level
Electricity access 48% 70% 80-85%

110
 Objectives 2023 (Baseline) 2025 2028 2040
by 2031-33
1. Improved access to electrification funds and
programs

2. Improving the reliability of electric distribution

network and non-network facilities through
infrastructure rehabilitation and improvement
projects
Potential Energy Resources and Facilities
Explored, Developed and Utilized
1. Access to Investments on Energy Resource
Exploration and Development established
P200-300 million per
P11 million
1.1. Government spending year in the next
three years
2. Renewable and non-renewable energy
technologies adopted and implemented
2.1. Share of RE (in BARMM regional power 64% 64%
generation mix)
2.2. Number of RE projects 2 projects per year in the next 6 years

111
 Objectives 2023 (Baseline) 2025 2028 2040
3. Exploration, Development, and Utilization of
potential conventional and renewable energy
sources
4. Roadmaps & Master Plans Formulated &
Applied/Operationalized
Energy Institutions Established, Improved and
Harmonized
1. Effective enabling policies and institutions
established
Pass the energy
1.1. Energy Development Corporation of the Development
Bangsamoro Corporation Law by
end of 2023
Establishment of the
1.2. Ministry of Energy Ministry of Energy by
2024
Bangsamoro Local
Government Code
by May 2023
1.3. Other legislations
Indigenous Peoples
Code by December
2023

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 Objectives 2023 (Baseline) 2025 2028 2040
2. Establish and operationalize Co Management &
Coordination Mechanisms between BARMM
government & national government
3. Strengthened partnerships with Government,
Private Sector, CSOs, and International Partners

113
Annex 2: Stakeholders Mapping and Analysis
Stakeholder analysis is the process of identifying groups, offices, individuals, and
personalities that are likely to affect or be affected by a proposed action and sorting
them according to their impact on the action. It is used as a scoping tool to help in
the understanding of how they affect plans, programs, policies and institutions, and
it facilitates to identify winners and losers and highlights challenges in changing
behavior, developing capabilities, and addressing inequalities (International Institute
for Environment and Development, 2001).

In this Report, there are three types of stakeholders identified as to their impact on
the formulation, development and implementation of the BARMM Power Sector
Development Plan.

1. Primary stakeholders are those who have a direct, positive and close
proximity to the issue of energy security, access, affordability, and availability.
They have the power, influence, and legitimate interests to shape and
navigate the outcome of the issue.
2. Secondary stakeholders are those who are indirectly affected, benefitted or
harmed by the issue. They can push forces to support or oppose the issue
but have not enough influence, power and resources towards it.
3. Tertiary stakeholders are those whose proximity to the issue is far, distant
and might neither be directly or indirectly affected, but can still pose some
concerns.

In the workshop conducted with officers and staff of MENRE in Al-Nor Hotel and
Convention Center, Cotabato City on March 28, 2023, the wide array of stakeholders
has been organized, classified and located according to their respective type.

114
Table 20: Types of Stakeholders

Primary stakeholders Secondary stakeholders Tertiary stakeholders

1. Electric Cooperatives
2. Energy Management and
Development Services - MENRE
3. Office of the Chief Minister
4. Members of the Parliament
5. Intergovernmental Energy Board
6. Joint Body of Zone Joint
Cooperation 1. COTABATO LIGHT + POWER CO
7. Ministry of Finance and Budget 2. LGUs
Management 3. Environmentalists
1. CSOs, NGOs, and Pos
8. Department of Energy 4. Office of the Presidential Adviser
2. Ministry of Public Works
9. National Electrification on Peace, Reconciliation and
3. Academe
Administration Unity
4. Religious Sector
10. National Power Corporation/ 5. Protected Area Management
5. Consumers
NPC-SPUG Board
11. Power Sector Assets and 6. Non State Armed Groups
Liabilities Management 7. Investors / Business Sector
12. National Grid Corporation of the
Philippines
13. Energy Regulatory Commission
14. Ministry of Indigenous Peoples
Affairs
15. Bangsamoro Economic
Development Council
16. Bangsamoro Planning and
Development Authority
17. Multilateral donors and partners
18. Future GOCCs

The Stakeholder Mapping is undertaken to guide the principal owners of the Plan to
navigate and engage the different stakeholders. The basic tool for conducting the
stakeholder analysis is the Power-Interest Matrix. This matrix defines the
stakeholders from two perspectives:

115
 1. Power is the ability of the stakeholder to influence the project or project
resources

2. Interest is how interested the stakeholder is for the project to succeed

Figure 18: Power-Interest Matrix

Stakeholders are plotted on the Power-Interest matrix. The purpose for this is to
establish the level of communication that the project will devote to the stakeholder.
The position of the stakeholders on the grid determines the appropriate
communication actions needed with them. The grid helps prioritize the stakeholders
in terms of the amount of time and effort in communicating with them, or the
communication resources to allot for them.

1. High power, highly interested people (Manage Closely). The aim is to fully
engage these stakeholders, making the greatest efforts to manage and
influence them diligently.
2. High power, less interested people (Keep Satisfied) The aim here is to put
enough work with these stakeholders to keep them satisfied, but not so much
as to impose our influence on them.
3. Low power, highly interested people (Keep Informed). This calls for
adequately informing these stakeholders and talking to them to ensure that
no major issues are left out or will arise.

116
 4. Low power, less interested people (Monitor). There should be a conscious
effort to not lose these stakeholder groups with excessive engagement.
However, there is a need to keep an eye to check if their levels of interest or
power change (and thus their position in the matrix).

The Power-Interest Matrix for the BARMM energy and power sector are shown
below.

Table 21: Power - Interest Matrix for the BARMM energy and power sectors

Keep satisfied Manage closely

● Joint Body of Zone of Joint ● Energy Management & Devt

Cooperation Services (MENRE)
● Bangsamoro Planning & Devt ● Office of the Chief Minister
Authority ● Intergovernmental Energy
● DOE Board
● National Grid Corporation of the ● Ministry of Indigenous Peoples
Philippines Affairs
● Bangsamoro Economic Devt ● Members of the Parliament
Council ● NPC-SPUG
● OPAPRU ● Ministry of Finance & Budget
● Non-state Armed Groups Management
● Ministry of Public Works ● Electric Cooperatives
● Environmentalists ● PSALM
● Investors/Business Sector ● ERC
● NEA
● LGUs

Just Monitor Keep informed (in the loop)

● PAMB ● Multilateral donors and

● Cotabato Light partners
● Consumers ● CSOs, NGOs, and POs
● Academe
● Religious Sector

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Annex 3: Energy Indicators for Sustainable Energy Development

The International Atomic Energy Agency (IAEA) in cooperation with other

international organizations developed from late 1990s to early 2000s a
comprehensive set of indicators specifically addressing the energy sector with the
following general objectives: (1) to supplement the general indicators of sustainable
development (ISD) already developed at that time; and (2) to allow the use of the
indicators for sustainable energy development (ISED) for making necessary
modifications to the relevant databases and analytical tools and structuring
assistance to member states in the formulation of their energy strategies in
conformity with the objectives of sustainable development. In 2005, the
International Atomic Energy Agency (IAEA) published the Energy Indicators for
Sustainable Development (EISD) and corresponding methodologies and guidelines.
The EISD includes indicators focusing on delivering essential energy services to
reduce poverty and improve living conditions, while others focus on environmental
effects. Analysts and researchers can select, weigh and present to policy makers
appropriate indicators according to the local context.

118
 LIST OF INDICATORS FOR SUSTAINABLE ENERGY DEVELOPMENT96
Social
Theme Sub-theme Energy indicator Components
Share of households (or population) -Households (or population) without electricity or
without electricity or commercial energy, commercial energy, or heavily dependent on non-
Accessibility SOC1
or heavily dependent on non- commercial commercial energy
energy -Total number of households or population
-Household income spent on fuel and electricity
Share of household income spent on fuel
Affordability SOC2 - Household income (total and poorest 20% of
and electricity
Equity population)
-Energy use per household for each income group
(quintiles)
Household energy use for each income -Household income for each income group
Disparities SOC3
group and corresponding fuel mix (quintiles)
-Corresponding fuel mix for each income group
(quintiles)

Accident fatalities per energy produced by -Annual fatalities by fuel chain

Health Safety SOC4
fuel chain -Annual energy produced

Economic
Theme Sub-theme Energy indicator Components
Use and -Energy use (total primary energy supply, total
Overall Use ECO1 Energy use per capita
Production final consumption and electricity use)
96
Sales and Promotion Unit, Publishing Section, IAEA. (2005). Energy Indicators for Sustainable Development: Guidelines and methodologies. International Atomic Energy Agency.
https://www.iaea.org/publications/7201/energy-indicators-for-sustainable-development-guidelines-and-methodologies

119
Patterns -Total population
Overall -Energy use (total primary energy supply, total
productivi ECO2 Energy use per unit of GDP final consumption and electricity use)
ty -GDP
-Losses in transformation systems including
Supply Efficiency of energy conversion and
ECO3 losses in electricity generation, transmission and
efficiency distribution
distribution
-Proven recoverable reserves
ECO4 Reserves-to- production ratio
-Total energy production
Production
-Total estimated resources
ECO5 Resources-to- production ratio
-Total energy production
-Energy use in industrial sector and by
ECO6 Industrial energy intensities manufacturing branch
-Corresponding value added
-Energy use in agricultural sector
ECO7 Agricultural energy intensities
-Corresponding value added
-Energy use in service/ commercial sector
ECO8 Service/ commercial energy intensities
-Corresponding value added
End use
-Energy use in households and by key end use
ECO9 Household energy intensities -Number of households, floor area, persons
per household, appliance ownership
-Energy use in passenger travel and freight sectors
ECO1 and by mode
Transport energy intensities
0 -Passenger-km travel and tonne-km freight and
by mode

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 -Primary energy supply and final consumption,
electricity generation and generating capacity
ECO1 by fuel type
Fuel shares in energy and electricity
1 -Total primary energy supply, total final
consumption, total electricity generation and
total generating capacity
-Primary supply, electricity generation and
Diversificati ECO1 Non-carbon energy share in energy and generating capacity by non-carbon energy
on (fuel mix) 2 electricity -Total primary energy supply, total electricity
generation and total generating capacity
-Primary energy supply, final consumption and
electricity generation and generating capacity
ECO1 Renewable energy share in energy and by renewable energy
3 electricity -Total primary energy supply, total final
consumption, total electricity generation and
total generating capacity
ECO1 End-use energy prices by fuel and by
Prices -Energy prices (with and without tax/subsidy)
4 sector
ECO1 -Energy imports
Imports Net energy import dependency
5 -Total primary energy supply
Security
Strategic ECO1 Stocks of critical fuels per corre- -Stocks of critical fuel (e.g. oil, gas, etc.)
fuel stocks 6 sponding fuel consumption -Critical fuel consumption

Environmental
Theme Sub-theme Energy indicator Components

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 GHG emissions from energy production -GHG emissions from energy production and use
Climate change ENV1
and use per capita and per unit of GDP -Population and GDP

Atmosphere Ambient concentrations of air pollutants

ENV2 -Concentrations of pollutants in air
in urban areas
Air quality
Air pollutant emissions from energy
ENV3 -Air pollutant emissions
systems
Contaminant discharges in liquid effluents
Water Water quality ENV4 from energy systems including oil -Contaminant discharges in liquid effluents
discharges
Soil area where acidi- fication exceeds -Affected soil area
Soil quality ENV5
critical load -Critical load
Rate of deforestation attributed to -Forest area at two different times
Forest ENV6
energy use -Biomass utilization
Ratio of solid waste generation to -Amount of solid waste
ENV7
units of energy produced -Energy produced

Land Ratio of solid waste properly disposed of -Amount of solid waste properly disposed of
ENV8
Solid waste to total generated solid waste -Total amount of solid waste
generation -Amount of radioactive waste (cumulative for a
and Ratio of solid radioactive waste to units
ENV9 selected period of time)
management of energy produced
-Energy produced
Ratio of solid radioactive waste awaiting
ENV1 -Amount of radioactive waste awaiting disposal
disposal to total generated solid
0 -Total volume of radioactive waste
radioactive waste
Table 22: Expanded Social and Environmental IndicatorsSource: IAEA et al. (2005).

122
Annex 4: Disaggregated Data of Stakeholder Engagement (Key Informant Interviews and Focus
Group Discussions)

Table 23: First Mission – Focus Group Discussion and KIIs in Cotabato City (27 – 30 March 2023)
# DESIGNATION ORAGNISATION SEX
MENRE Energy Management and
1 Director II M
Development Services (EMDS)
2 Chief, Energy Regulatory Officer MENRE EMDS M

3 Engineer III MENRE EMDS M

4 Engineer III MENRE EMDS M

5 Engineer II MENRE EMDS M

6 Engineering Assistant MENRE EMDS M

7 Project Coordinator BPDA/ SDF-PMO M

8 Driver II MENRE EMDS M

9 Expert Consultant/Team Lead Aquatera UK M

10 Expert Consultant Aquatera UK M

11 Expert Consultant Aquatera UK M

12 Research Assistant M
Chief Science and Research Specialist
13 Ministry of Science and Technology M
Advance Science and Technology Division
Chair
14 Board of Investments M

Bangsamoro Planning and Development

15 Director General M
Authority
16 Minister MENRE M

17 Administrative Aide MENRE EMDS F

18 Project Evaluation Officer MENRE EMDS F

19 Project Evaluation Assistant MENRE EMDS F

20 Programme Officer UNOPS ETP F

21 Programme Management Intern UNOPS ETP F

22 Expert Consultant Aquatera UK F

23 Expert Consultant Aquatera UK F

24 Project Manager Aquatera UK F

25 Research Assistant F

Subtotal 16 9

TOTAL 25

Table 24: Second Mission – Focus Group Discussion in Davao City (27 April 2023)
# DESIGNATION ORAGNISATION SEX
MENRE Energy Management and
1 Director II M
Development Services (EMDS)

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2 Chief, Energy Regulatory Officer MENRE EMDS M

3 Engineer III MENRE EMDS M

4 Expert Consultant/Team Lead Aquatera UK M

5 Expert Consultant Aquatera UK M

6 Expert Consultant Aquatera UK M

7 Project Director Aquatera UK M

8 Research Assistant of Dr. Mike Abundo M

Bangsamoro Planning and
9 Director General M
Development Authority
BTA Member / Member Committee on
10 Bangsamoro Parliament M
Environment, Natural Resources and Energy
Under the office of MP Suharto
11 Chief of Staff M
Esmael
Ministry of Interior and Local
12 Director General M
Government
BTA Member / Deputy Parliament Speaker,
13 Member of Committee on Environment, Bangsamoro Parliament M
Natural Resources and Energy
14 Office of MP Nuredha Misuari BTA - BARMM M

15 Office of MP Nuredha Misuari BTA - BARMM M

16 Under the office of MP Marasul Estino M

LSO- IV
17 Director General MOST M

18 Chief MOTC M

19 Chief Chief of Staff of MP Abdullah Hashim M

20 Staff Chief of Staff of MP Abdullah Hashim M

21 Chief MTIT M

22 Chief MAFAR M

23 Director MIPA M

24 Project Coordinator BPDA/ SDF-PMO M

25 POC BDPA M

26 POC BDPA M

27 MENRE EMDS M

28 Senior Engineer OceanPixel M

29 Chief Division MHSD M

30 Engineer 1 MOTC M

31 tbc tbc M

32 tbc MENRE EMDS M

33 PEO MENRE EMDS M

34 Asst Division Chief MILG M

35 Senior Program Manager UNOPS ETP M

36 Project Evaluation Officer MENRE EMDS F

37 Project Evaluation Assistant MENRE EMDS F

38 Programme Officer UNOPS ETP F

39 Programme Management Intern UNOPS ETP F

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 40 Expert Consultant Aquatera UK F

41 Expert Consultant Aquatera UK F

42 Project Manager Aquatera UK F

43 Research Assistant of Dr. Lloyd Bautista F

44 Revenue code project officer MFBM F

45 Engineer MHSD F

46 Engineer III MAFAR F

47 tbc tbc F

48 Liason Officer Aquatera F

49 Rapporteur / RA of Jessie Todoc F

Subtotal 35 14

TOTAL 49

Table 25: Key Informant Interviews (March to April 2023)

# DESIGNATION ORAGNISATION SEX

1 Minister MENRE M
MENRE Energy Management and
2 Director II M
Development Services (EMDS)
3 Engineer MENRE Environment M

4 Engineer III MENRE EMDS M

5 Expert Consultant/Team Lead Aquatera UK M

6 Expert Consultant Aquatera UK M

7 Expert Consultant Aquatera UK M

Bangsamoro Planning and
8 Director General M
Development Authority
Chief Science Research Specialist, Advance
9 Ministry of Science and Technology M
Science and Technology Division
10 Chairperson Bangsamoro Board of Investments M
Bangsamoro Planning and
11 Infrastructure Planning M
Development Authority
Infrastructure Planning, Special Development Bangsamoro Planning and
12 M
Fund Projects Development Authority
Bangsamoro Economic Development Council Bangsamoro Planning and
13 M
Secretariat Development Authority
Ministry of Agriculture, Fisheries and
14 OIC Division Chief M
Agrarian Reform
Ministry of Transportation and
15 Infrastructure Division M
Communications

16 tbc Ministry of Public Works M

BTA Member / Deputy Parliament Speaker,

17 Member of Committee on Environment, Bangsamoro Parliament M
Natural Resources and Energy

Bangsamoro Economic Development Council Bangsamoro Planning and

18 F
Secretariat Development Authority

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 Bangsamoro International Development Bangsamoro Planning and
19 F
Assistance Committee Secretariat Development Authority
Ministry of Agriculture, Fisheries and
20 Engineering Section F
Agrarian Reform
Ministry of Finance and Budget
21 Director F
Management
22 Expert Consultant Aquatera UK F

23 Project Manager Aquatera UK F

Ministry of Human Settlements and
24 Engineer F
Development
Subtotal 35 14

TOTAL 49

Table 26: Final Workshop (Online) 11 July 2023

DESIGNATION ORGANIZATION SEX
NAME

MENRE Energy Management and

Nasiri Abas Director II M
Development Services (EMDS)

Chief, Energy Regulatory Officer MENRE EMDS M

Al-Montazer Mandong

Engineer III MENRE EMDS M

Zurhaidin Engga

Engineering Assistant MENRE EMDS M

Syyed Brien Kadil

Technical Team MENRE EMDS M

Shariff Pagayao

Philippines Country Coordinator

Frizie Vergel ETP F

Philippines Programme Management

Yoshiko de Villa ETP
Officer F

Anna Dominique Ortiz Expert Consultant Aquatera UK

F

Mary Ann Joy Q. Franco Project Manager Aquatera UK

F

Janine Irish Bragais Research Assistant of Dr Lloyd Bautista

F

Jessie Todoc Expert Consultant/Team Lead Aquatera UK M

Michael Lochinvar Sim Expert Consultant Aquatera UK M

Abundo

126
 Expert Consultant Aquatera UK M
Lloyd Bautista

5
TOTAL 8

127