ENERGY GENERATION Alex s Regado

Pamantasan ng Lunsod ng Maynila (PLM)GRADUATE SCHOOL OF MANAGEMENT

ENERGY GENERATION Alex s Regado

Pamantasan ng Lunsod ng Maynila (PLM)

PRESENTATION OUTLINE

1. Introduction Department of Energy (DOE)

• Mandate/Mission/Vision

• Performance Pledge

• Core Values

2. Strategic Plan

•Goal

•Strategies

•Time Table

•Budget

•Agencies

•Activities

PRESENTATION OUTLINE

3. Tactical Plan

4. Operational Plan

5. Critiques

6. Recommendation

7. Evaluation

Energy Generation -

Sources of Energy

1. Fossil Fuel Coal –sedimentary rock, cheapest fuel options Oil & Gas – petroleum, Nido Oilfield Natural Gas – Malampaya (clean fuel) 40% of Luzon requirement

2. Renewable Energy Hydropower – more than 10% (2,518 MW) Geothermal – 22% (2nd largest in the world next to USA )

Biomass – bagasse, rice/coconut husks, Solar – dryers, heaters and electricity Wind - over 10,000 sq. kilometers of windy land areas & Ocean – 1,000 sq. km…a potential 170,000 MW

is the segment of the electricity industry, which produces power from sources like coal, diesel, natural gas, hydro and geothermal.

Hydro: (17 Large/14 Small/Mini)

1. Agus 1 –Marawi

2. Atiya – Benguet

3. Agus 6 – Iligan City

4. Ampohaw – Benguet

5. Angat – Bulacan+++

Geothermal: (12)

6. Makiling - Banahaw GPP

7. Tiwi GPP

Windpower: (2)

8. Bangui Wind Farm – Ilocos Norte

9. Phil. WP - Mindoro

Coal: (12++)

10. Sual – Pangasinan

11. Quezon PP

Diesel : (2)

Natural Gas : (4)

1. Ilijan CCPP- Batangas (4)

2. Sta Rita

3. San Lorenzo

4. San Miguel (2016)

Nuclear : (1) Bataan Nuclear Power Plant, Morong, Bataan, Completed but never fueled

LIST OF POWERPLANTS IN THE PHILIPPINES

SOURCES OF ELECTRICAL POWER

GEOTHERMAL

WIND

SOLAR

COAL POWERPLANT

HYDROPLANT DIESEL GENSET

BNPP Construction Cost US 2.3 B Dollars 621 MW Capacity US 1.0 B Dollars to rehabilitate (2010) P40 Million/year for maintenance Reimbursed NAPOCOR P 4.2 B (2011) 31 countries 437 nuclear power plant units (IAEA as of 28 August 2014)

DEPARTMENT OF ENERGY (DOE)

- is the executive department of the Philippine Government responsible for preparing, integrating, coordinating, supervising and controlling all plans, programs, projects and activities of the Government relative to energy exploration, development, utilization, distribution and conservation.

TIMELINES

P.D. No. 1206 -Creation of Ministry of

Energy (Marcos)Nat’l Power CorporationPhil. Nat’l Oil Company

Office of Energy Affairs- headed by Atty. Wenceslao Dela Paz (Cory Aquino)Bureau of Energy Development and Bureau of Energy Utilization

Republic Act No. 7638 otherwise known as the Department of Energy Act of 1992 (Ramos)

RA No. 9136 or the "Electric Power Industry Reform Act of 2001",

RA No. 9367 or "Biofuels Act of 2006", and

RA No. 9513 or "Renewable Energy Act of 2008.

SENATE

S.No. 2352‘ 14 AUG 12 P2 :50

Introduced by Senator Ralph G. Recto

AN ACT PROMOTING THE DEVELOPMENT AND UTILIZATION OF RENEWABLE ENERGY IN ALL GOVERNMENT BUILDINGS AND

OFFICES, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES

Explanatory Note

Energy security is a critical factor in achieving our economic growth targets in the short-,medium- and long-term set at 6.5% this year, at 7.5% in 2015-16 and at 8.4% in 2017-20. At the same time, our government is hard-pressed to fulfill its commitments to de-carbonize the energy industry for Scenario 450 \ achieve 60% energy independence and pursue higher electrification rates2 , even as the population continuous to grow at an average of2.2% in 2010-2020 and 1.6% in 2020-2030.

DOE MANDATE/MISSION/VISION

 

Mandate

The Department is mandated by RA 7638 (Department of Energy Act of 1992) to prepare, integrate, coordinate, supervise and control all plans, programs, projects and activities of the Government relative to energy exploration, development, utilization, distribution and conservation.

Mission

We at the Department of Energy, in partnership with our stakeholders, shall improve the quality of life of the Filipino by formulating and implementing policies and programs to ensure sustainable, stable, secure, sufficient, and accessible energy.In pursuit of this mission, we commit to render efficient service with utmost integrity and professionalism.

Vision

The ideal Energy State towards 2030:Ensuring the best energy choices for a better quality of life. 

PERFORMANCE PLEDGE

We, at the Department of Energy, commit to :

S E R V E right the first time and every time

thereafter

L I S T E N with utmost courtesy, respect and

understanding

R E S P O N D promptly, efficiently, and

effectively

E X C EL to exceed the needs and expectations

of the general public.

CORE VALUES

In support of the DOE PERFORMANCE PLEDGE, we adhere to these CORE VALUES:

Commitment to Service Basta Enerhiya, Sagot Kita

Respect for People Kapwa at sarili, Igalang sa

bawat sandali

Integrity Sa publiko, Serbisyong Marangal at totoo

Teamwork Gawain ay kayang-kaya,

kung tayo ay sama-sama

Philippine Energy Plan 2012 - 2030

Guided by the overall vision of providing “ Energy Access for More” , the 2012 – 2030 Philippine Energy Plan (PEP) seeks to mainstream access of the larger populace to reliable and affordable energy services to fuel, most importantly, local and countryside development.

For the medium term, the 2012 -2030 PEP is basically anchored on the policy framework set in place with the formulation of the Energy Reform Agenda (ERA)

The DOEs’ proposal consisting of these following three cornerstones that will have an important impact within the next 18 years on the country’s energy future:

1. Ensure Energy Security2. Achieve Optimal Energy Price3. Develop Sustainable Energy System Mechanisms

GOAL(PHILIPPINE ENERGY PLAN 2012 - 2030)

Ensure Energy Security Expand use of RE Accelerate

exploration of petroleum and oil

Expand Energy Access

Promote Low-Carbon Future Make energy

efficiency a way of life for Filipinos

Promote use of clean alternative fuels and technologies

Climate proof the energy sector

Develop Regional Energy Plan

Promote Investment in the Energy Sector

Identify and implement energy sector reforms

STRATEGIES“ENERGY REPORM AGENDA (ERA)”

TIME TABLE

PEP 2012 - 2030

Total Primary Energy, by Fuel

BUDGET

P 3.174 Trillion in investments for power generation

projects in order to make it energy sufficient by 2030

---- DOE Sec. Carlos Jericho Petilla Project Description Cost

1. Downstream Natural Gas Supply P 1.212 Trillion

2. Alternative Fuels P 959.7 Billion

3. Renewable Energy Projects P 556.7 Billion

4. Power Generation Project P 397.1 Billion

5. Upstream Resource Devt. P 48 Billion

AGENCIES INVOLVEDOE – Department of Energy

NAPOCOR NEA

NEDA – National Economic Development Agency

DBM – Department of Budget and Management

DoF – Department of Finance

ERC – Energy Regulatory Commission

DTI – Department of Trade and Industry

SEC – Securities and Exchange CommissionCCC – Climate Change Commission, DILG, Senate,Congress

ACTIVITIES

Reforms in the Power Sector Retail Competition and Open Access

(RCOA) Adapt Smart Grid Technologies Grid Interconnection Electricity Spot Market RE Market Accelerated Rural Electrification

ACTIVITIES

Rural Electrification Achieved 90% household electrification

by 2017 and 100% sitio electrification by 2015.

Formulate Household Electrification Development Plan

Pursue development and implementation of innovative service delivery mechanisms to increase household connections

Indigenous Energy Development Continue the conduct

of Contracting Rounds to offer prospective areas

Promote use, development and localization of appropriate and clean technologies Coal liquifaction,

coal gasification and CBM

Develop a framework for pricing of local resources

Continue international cooperation on energy resources e.g. establishment of ASEAN Coal Supply Agreement

Encourage further investment on resource development Established one-stop

shop for investors

ACTIVITIES

ACTIVITIES

Renewable Energy Promote the National Renewable Energy

Program (Triple installed capacity by 2030) Implement the RE law policy mechanisms Continuous assessment of RE resources Evaluate new and emerging technologies Develop/Tap local capacity and expertise

TACTICAL PLAN

Diversify energy sources/fuels Accelerate rural electrification in

coordination with other agencies Improve system efficiency Promote decentralized energy facilities Monitor and review sector pricing

policies to ensure transparency

OPERATIONAL PLAN

Intensify the development, exploration and use of indigenous energy

Promote investments and livelihood activities in energy projects

Promote energy efficiency and conservation program

Pursue joint ventures with other countries

Implementation of Demand Side Management Programs and other energy conservation measures to reduce the country’s demand for supply of electricity.

Interruptible Load Program (ILP).-

CRITIQUE/REACTION

High electricity rates and lack of adequate power supply remained the biggest stumbling blocks to attracting more foreign investments in the country.We are much dependent on oil to run the energy sectors such as in generation and transportation, that government must intensify its program by using alternative source of energy like solar and wind energy which has vast potential for development.

RECOMMENDATION

1. Committed power - plants should be commissioned as schedule to prevent the impact of widespread black outs in the nearest possible time.

2. Renewable energy must be harness particularly solar and wind energy to prevent pollution of the environment particularly in support of the Climate Change program.

3. A Secretary of DOE must be a technical person that can rightfully know the ropes in power generation forecasting

4. Immediate passage of Senate Bill 2352 introduced by Sen. Ralph G. Recto on the “Development of RE”

5. Increase the Feed-In-Tariff (FIT) in Solar Projects

6. Effective implementation of the following goals:

(a) accelerating the exploration; development and utilization of indigenous energy resources;(b)intensifying renewable energy resource

development; (c)increasing the use of alternative fuels; and,(d) enhancing energy efficiency and conservation.

7. Operation of the mothball Bataan Nuclear Plant.

EVALUATION MODEL, HOW?

INVESTMENT- DRIVEN STAGE

Access to energy has become essential to the functioning of the modern economies. The scarcity of supply, inequitable distribution, rising costs of fossil fuel such as oil and gas, as well as the adverse environmental impacts of energy development create a need to diversify to more sustainable and secure energy sources in the foreseeable future. As a determinant of economic performance and political stability, energy security strikes as a strategic intervention to channel our efforts in providing “Energy Access for More”.

The Energy Plan for the period 2012-2030 mentions three broad policy thrusts based on the concept of enabling better energy choices for a better quality of life.

REFER

ENCES

:

1. Department of Energy (DOE) PEP 2012 – 2030

2. DOE Energy Reform Agenda

3. DBM –GAA 2014

4. Assorted news clippings

5. Philippine Energy Study Report, Approtech Asia, August 2005.

6. Philippine Country Report, Power Situation and Current Status on R&D, Miguel T. Escoto Jr.

7. DOE Accomplishment Report 2008 -2012

8. Video: https://www.youtube.com/watch?v=VoZJX8lQcns