Philippine Energy Policy Wiki

ARC Framework

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operative
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The ARC Framework is the strategic organizing structure of the Philippine Energy Plan 2023-2050, consolidating the energy sector’s objectives into three pillars: Access to Affordable Energy (A), Reliability and Resiliency (R), and Clean and Sustainable Energy (C) [PEP 2023-2050 Vol. I, p.2, 2023].

The Three Pillars

A — Access to Affordable Energy

Goal: Universal and affordable energy access for all Filipinos.

Key initiatives [PEP 2023-2050 Vol. I, p.3, 2023]:

  • 100% household electrification by 2028 (based on 2020 PSA Census) via the Total Electrification Program
  • Interconnection of off-grid areas to the national grid (Mindanao-Visayas Interconnection Project — targeted for January 2024 completion; 99.3% complete at time of publication)
  • Hybridization and Distributed Energy Systems (DES) in off-grid/missionary areas
  • Microgrid systems in unserved/underserved areas under RA 11646 (Microgrid Systems Act 2022)
  • Competitive Selection Process (CSP) to promote consumer welfare in power procurement
  • Rationalization of Universal Charge for Missionary Electrification (UC-ME) subsidy
  • 100% foreign ownership now permitted in RE projects (geothermal, solar, wind, biomass, ocean, tidal) [PEP 2023-2050 Vol. I, p.21, 2023]

R — Reliability and Resiliency

Goal: Secure, reliable, and resilient energy supply.

Key initiatives [PEP 2023-2050 Vol. I, p.4, 2023]:

  • Smart and Green Grid Plan (SGGP) — modernizes transmission to integrate large-scale RE
  • Grid Operating and Maintenance Program (GOMP) compliance by all generation companies
  • Adequate Ancillary Services (AS) procurement by NGCP
  • LNG as transition fuel to complement variable RE (VRE) intermittency
  • Energy self-sufficiency increase through indigenous resource development
  • CREZ (Competitive Renewable Energy Zones) for proactive transmission planning — see Competitive Renewable Energy Zones (CREZ)
  • Climate-proof and disaster-resilient energy infrastructure design

C — Clean and Sustainable Energy

Goal: Transition to a low-carbon, climate-centered energy system.

Key targets [PEP 2023-2050 Vol. I, p.5, 2023]:

  • RE share in power generation mix: 35% by 2030, 50% by 2040, >50% by 2050 — see Renewable Energy Targets 2023-2050
  • Nuclear capacity: 4,800 MW by 2050 — see Nuclear Energy Program (Philippines)
  • Offshore wind (OSW): 19 GW (CES-1) or 50 GW (CES-2) — see Offshore Wind (OSW)
  • BESS integration to stabilize variable RE
  • 50% EV penetration in road transport by 2040 (CES)
  • Voluntary retirement and repurposing of coal-fired power plants (CFPPs)
  • Hydrogen and ammonia as emerging storage fuels
  • Coal moratorium (2020) — new projects only — see Coal Moratorium (2020)

Alignment

The ARC framework aligns with three higher-level planning documents [PEP 2023-2050 Vol. I, p.2, 2023]:

  1. AmBisyon Natin 2040 — long-term national vision (GDP growth >7.1%/yr, improved Filipino quality of life)
  2. Philippine Development Plan (PDP) 2023-2028 — medium-term plan; Chapter 12 covers energy infrastructure
  3. UN SDG 7 — affordable, reliable, sustainable, and modern energy for all