=== pdp-2023-2050-ch1-page-012.pdf === CHAPTER 1. POWER SECTOR HIGHLIGHTS, 2021-2022 POWER DEVELOPMENT PLAN 2023-2050 12 === pdp-2023-2050-ch1-page-013.pdf === CHAPTER I Power Sector Highlights 2021-2022 This chapter demonstrates how the electric power industry demonstrated how it recovered from the pandemic, showcasing its resilience and performance following the easing of COVID-19 restrictions. The industry was assessed in terms of power statistics, implemented policies and programs, and key developments during the years 2021-2022. Despite the nation’s recovery from the pandemic, the power sector faced additional challenges in the form of natural disasters, including earthquakes and strong typhoons posing significant threats to the country's power system. Despite these formidable challenges, the power sector exhibited responsiveness by reconstructing the affected power infrastructures. Throughout these efforts, the power industry remained steadfastly committed to its mission and purpose, ensuring the provision of reliable, affordable, and sustainable energy for the nation. 1. Electricity Demand and Supply 1.1 Peak Demand and Electricity Consumption 17,138 PEAK DEMAND, MEGAWATT (MW) In 2021, the Philippines' total noncoincidental peak demand1 reached 16,036 MW, which slightly fell below the 2021 peak demand forecast by 1.8% (297 MW). Meanwhile, in 2022, the total noncoincidental peak demand was recorded at 16,596 MW, which is 3.2% (542 MW) lower than the projected peak demand forecast (Figure 1). The 2021 actual peak demand has surpassed the pre-pandemic actual peak demand (2019) of 15,581 MW and the pandemic actual peak demand (2020) of 15,282 MW. The increase in peak demand was attributed to the recovery of crucial economic sectors, with increased mobility and the resumption of partial to full normalization of economic activities. 16,036 16,333 16,596 2021 2022 Actual Peak Demand Demand Forecast Figure 1. Actual Peak Demand and Demand Forecast (Year 2021 and 2022) Meanwhile, Figure 2 shows that electricity sales and consumption across the residential, commercial, and industrial sectors returned to pre-pandemic levels. The residential sector has exhibited moderate growth from 34,292 GWh in 2020 to 35,324 GWh in 2022 owing to the continued adoption of hybrid work arrangement by various government agencies and private companies, including classes still being held both virtually and on-site. In 2022, the commercial and industrial sectors consumed 24,294 GWh and 28,844 GWh of electricity respectively, in which the industrial sector 1 DOE Annual Power Statistics 2003-2022 Retrieved through: https://www.doe.gov.ph/energy-statistics/philippine-power-statistics POWER DEVELOPMENT PLAN 2023-2050 13 === pdp-2023-2050-ch1-page-014.pdf === surpassed the pre-pandemic observed levels in 2019. The resurgence in electricity consumption across these sectors serves as a clear indicator of the country's economic rebound, showcasing resilience and adaptability in the wake of the challenges posed by the pandemic. 120000 In Gigawatt-hours (GWh) 110000 100000 9994 90000 8929 2897 80000 70000 10693 9968 9742 9490 2871 8729 3695 8771 2658 28844 28194 25566 27623 25476 20727 21119 24294 30552 34292 34981 35324 2019 2020 2021 2022 60000 50000 40000 30000 20000 10000 0 Electricity Consumption per Year Residential Commercial Industrial Others Own-Use System Loss Figure 2. 2019 to 2022 Electricity Consumption, in GWh The surge in COVID-19 cases in 2020 and 2021 led to a notable rise in the electric consumption category under “Others” sector. This increase was primarily contributed by the utilization of public and government infrastructures and establishment, repurposed as quarantine and isolation facilities to mitigate and control the spread of the epidemic in the country. As the nationwide efforts focused on vaccine distribution gained momentum in 2022 and all the while achieving herd immunity, the use of these facilities was lesser, resulting in a 41% decline or 2,871 GWh consumption level by 2022. The overall use of power increased by about 5.1%, or 5,401 GWh, between 2021 and 2022. This surge in power consumption was notably driven by the resumption of normal operations across various sectors. Specifically, residential, industrial, and commercial sectors had an upward trend, showcasing sustained growth as shown in Figure 3. Residential 35,324 GWh 0.1% increase Commercial 24,294 GWh 15.0% increase Industrial 28,844 GWh 4.4% increase Own-Use 9,490 GWh 26.2% increase System Losses 10,693 GWh 7.3% increase Others 2,871 GWh 41.4% decrease 2022 Total Electricity Consumption 111,516 GWh (5.1% increase) Figure 3. 2022 Electricity Consumption per Sector in GWh, and 2021-2022 Growth Rate POWER DEVELOPMENT PLAN 2023-2050 14 === pdp-2023-2050-ch1-page-015.pdf === 1.2 Installed Capacity and Gross Generation The country’s total grid installed capacity2 increased by 5.1% (1,376 MW) from 26,882 MW in 2021 to 28,258 MW in 2022. Figure 4 visually represents the distribution of these capacities in 2022 according to fuel or power plant types. The increase in the grid installed capacity can be attributed to the commercial operations of 759 MW coal, 279 MW natural gas, and 350 MW RE, most of which comes from biomass and solar farms. Natural Gas 13% Oil Based 14% Geothermal, 7% Renewable Energy 29% Hydro, 13% Biomass, 2% Coal 44% Solar, 5% Wind, 2% Figure 4. 2022 Installed Capacity and Percent Shares Coal, 44.0% 12,428 MW Biomass, 2.2% 611 MW Oil-Based, 13.6% 3,834 MW Geothermal, 6.9% 1,952 MW Renewable Energy, 29.2% 8,264 MW Natural Gas, 13.2% 3,732 MW Energy Storage System (ESS) Solar, 5.4% 1,530 MW Hydro, 13.3% 3,745 MW Wind, 1.5% 427 MW 156 MW Figure 5. 2022 Installed Capacity, in MW Capacity The Philippines’ gross power generation increased by 5.1%, from 106,115 GWh in 2021 to 111,516 GWh in 2022, surpassing the pre-pandemic power generation in 2019. 2 DOE List of Existing Power Plants as of December 2022 Retrieved through: https://www.doe.gov.ph/list-existing-power-plants POWER DEVELOPMENT PLAN 2023-2050 15 === pdp-2023-2050-ch1-page-016.pdf === Natural gas power generation declined by 2.2% in 2021 and further by 6.2% in 2022. The decrease was due to the cessation of gas supply deliveries from the Malampaya Gas Field leading to higher dispatch of newly commercially operating coal plants and the preferential dispatch of renewable energies, replacing natural gas. Further, oilbased plants’ share in power generation expanded from 1.5% to 2.3% (55.8% increase) to compensate for the needed power to meet the demand during peak periods. In terms of share, coal-fired power plants continued to dominate the mix at 59.6%, which is 1.1% higher than its share in 2021. This is followed by RE (22.1%), natural gas (16.0%), and oil-based (2.3%) gross generation as depicted in Figure 6. 120,000 111,516 GWh 106,115 GWh 3.7% 9.0% 3.9% 8.7% 100,000 9.3% Gross Generation, GWh 9.4% 80,000 16.0% 18.0% 2.3% 1.5% 60,000 40,000 59.6% 58.5% 20,000 2021 Coal Hydro Oil-Based Biomass 2022 Year Natural Gas Solar Geothermal Wind Figure 6. 2021 and 2022 Gross Power Generation per Technology, in GWh Note: 1. In 2021, the gross generation share for Biomass was at 1.4%, Solar at 1.4%, and Wind at 1.2%. 2. In 2022, the gross generation share for Biomass was at 1.2%, Solar at 1.6%, and Wind at 0.9%. The performance of the electric power industry improved substantially in 2021 and 2022, underscoring a robust and dynamic recovery of the national economy. The DOE was instrumental in this resurgence, successfully addressing the increasing electricity demand by facilitating the commissioning of an additional 1,376 MW installed capacity in the country’s energy mix. Crucially, this substantial increase was made possible through collaborative efforts within the power sector, showcasing the coordinated endeavors of industry participants to fortify the nation's energy mix. For more information about the 2021 and 2022 Power Statistics, please scan the QR code. Alternate link: https://www.doe.gov.ph/energy-statistics/philippinepower-statistics POWER DEVELOPMENT PLAN 2023-2050 16 === pdp-2023-2050-ch1-page-017.pdf === 1.3 Issued Endorsement for Power Generation Plants and Projects under the EVOSS System Since the passage of the Republic Act (RA) No. 11234 or the “Energy Virtual One-Stop Shop (EVOSS) Act” on 08 March 2019, the DOE has migrated its processing of endorsements to the Energy Regulatory Commission (ERC), the National Grid Corporation of the Philippines (NGCP), National Commission for Indigenous People (NCIP) and other entities issuing permits and licenses for the operation of power generation plants and projects to a more efficient online system called EVOSS. As such, the DOE, processed applications and issued a total of 831 endorsements to concerned entities from August 2020 to December 2022 with details as follows: Table 1. DOE Issued Endorsement for Power Generation, 2020-2022 Year Covered Number of Issued Endorsements SIS NCIP ERC BOI DAR 2020 (Aug to Dec) 12 5 17 1 - 2021 (Jan to Dec) 101 9 280 5 - 2022 (Jan to Dec) 109 20 266 4 2 TOTAL 222 34 563 10 2 Source: DOE – Investments Promotion Office 1.4 Coal Moratorium Updates The DOE issued an Advisory on the Moratorium of Endorsements for Greenfield CoalFired Power Projects in Line with Improving the Sustainability of the Philippines’ Electric Power Industry3 on 22 December 2020. This aligns with the country’s efforts to accelerate the entry of renewable energy sources in the energy mix, promote new technologies, increase system flexibility, and adhere to higher environmental standards. In the said advisory, the DOE will no longer process applications for endorsements of new coal-fired power generation projects However, the moratorium does not affect existing and operational coal-fired power generation facilities as well as any new coal-fired power project considered as (a) committed coal-fired power projects; (b) existing power plant complexes which already have firm expansion plans and existing land site provisions; and (c) indicative power projects with significant progress, such as signed and notarized land acquisition of land or lease agreements and approved permits or resolutions from local government units (city/municipality, province) and Regional Development Council where the power plants are located. 3 Coal Moratorium Advisory Retrieved through: https://www.doe.gov.ph/announcements/advisory-moratorium-endorsements-greenfield-coalfired-power-projects-line-improving POWER DEVELOPMENT PLAN 2023-2050 17 === pdp-2023-2050-ch1-page-018.pdf === Table 2 lists the plants that have been issued with the necessary permits or are actively reporting to the DOE on the project’s construction progress during the two-year period following the implementation of the coal moratorium. Moreover, there are still approximately 11,000 megawatts of coal-fired power projects that has been issued with the Clearance to Undertake System Impact Study by the DOE and may still signify their intention to proceed with the construction of their project. The confirmation of the project’s non-coverage to the Coal Moratorium Advisory will be updated by the DOE in the next PDP updates. Table 2. Coal Power Projects Prior to Issuance of the Coal Moratorium (Grid-Connected) Project Name Mariveles Coal-Fired Power Plant Phase I - Unit 1 Mariveles Coal-Fired Power Plant Phase I - Unit 2 Mariveles Coal-Fired Power Plant Phase I - Unit 3 Mariveles Coal-Fired Power Plant Phase I - Unit 4 MW Capacity 150.000 150.000 150.000 150.000 Masinloc Power Plant - Unit 4 350.000 Masinloc Power Plant - Unit 5 350.000 Mariveles Coal-Fired Power Plant Phase II - Unit 5 Mariveles Coal-Fired Power Plant Phase II - Unit 6 Natural Gas-Fired Combined Cycle Gas Turbine Power Plant Project Phase 1 - Unit 1 (formerly AOE Coal-Fired Power Plant Unit 1) Natural Gas-Fired Combined Cycle Gas Turbine Power Plant Project Phase 1 - Unit 2 (formerly AOE Coal-Fired Power Plant Unit 2) Palm Concepcion Coal-Fired Power Plant Unit II Misamis Oriental 2 x 135 MW Circulating Fluidized Bed Coal Fired Thermal Power Plant RPEI Coal-fired Power Plant SRPGC Coal-Fired Power Plant Project SRPGC Coal-Fired Power Plant Project H & WB PCB Supercritical CoalFired Power Plant - Unit 1 H & WB PCB Supercritical CoalFired Power Plant - Unit 2 Therma Visayas, Inc. Coal - Fired Power Plant Expansion Project San Ramon Power, Inc. Coal-Fired Power Station 2x500 MW KEPCO Pangasinan Coal-Fired Power Plant SMC Circulating Fluidized Bed Coal-Fired Power Plant 300.000 300.000 Owner Mariveles Power Generation Corporation Mariveles Power Generation Corporation Mariveles Power Generation Corporation Mariveles Power Generation Corporation Masinloc Power Partners Co, Ltd. Masinloc Power Partners Co, Ltd. Mariveles Power Generation Corporation Mariveles Power Generation Corporation 600.000 Atimonan One Energy Inc. / Meralco Powergen Corp. 600.000 Atimonan One Energy Inc. / Meralco Powergen Corp. 135.000 270.000 600.000 350.000 350.000 350.000 350.000 150.000 120.000 1000.000 600.000 Palm Concepcion Power Corp. FDC Misamis Power Corporation (Formerly: FDC Utilities Inc.) Redondo Peninsula Energy, Inc. St. Raphael Power Generation Corporation St. Raphael Power Generation Corporation H & WB Asia Pacific (PTE LTD) Corporation H & WB Asia Pacific (PTE LTD) Corporation Therma Visayas, Inc. San Ramon Power, Inc. (SRPI) KEPCO Philippines Corporation SMC Global Power Holdings Corp. Power Project Status Committed Project Committed Project Committed Project Committed Project Committed Project Committed Project Committed Project Committed Project Committed Project – Changed Technology (With application to revert to coal) Committed Project – Changed Technology (With application to revert to coal) Committed Project Committed Project Committed Project but delisted Indicative Project Indicative Project Indicative Project Indicative Project Indicative Project Indicative Project Indicative Project Indicative Project POWER DEVELOPMENT PLAN 2023-2050 18 === pdp-2023-2050-ch1-page-019.pdf === MW Capacity Project Name SMC Circulating Fluidized Bed Coal-Fired Power Plant SMC Loboc Malabuyoc Coal-Fired Power Plant Project SMC Global Negros Coal-Fired Power Plant Project SMC Global PowerCoal-Fired Power Plant 600.000 300.000 300.000 Owner Power Project Status SMC Global Power Holdings Corp. SMC Global Power Holdings Corp. SMC Global Power Holdings Corp. Indicative Project Indicative Project Indicative Project 328.000 SMC Global Power Indicative Project Sarangani Energy Corporation Coal-fired Power Plant Phase 3 105.000 Sarangani Energy Corporation With pending application for noncoverage Grand Total 9,008 MW 1.5 Grid Operating and Maintenance Program (GOMP) Implementation On 06 February 2020, the DOE promulgated Department Circular No. DC2020-0200044 which aims to: (a) Ensure energy security of the country at all times; (b) Enhance transparency, fairness, and accountability in the operation of generation and transmission system and distribution facilities in the country; (c) Promote open competition among electric power industry participants; (d) Attainment of the objectives of the Electric Power Industry Reform Act (EPIRA) to ensure the quality, reliability, security, and affordability of the supply of electric power in the country; and (e) Foster reliable operation and efficient conduct of planned maintenance of power plants. Since its implementation in 2020, the National Grid Corporation of the Philippines (NGCP) has been submitting for the DOE’s approval its proposed three-year schedule for planned and maintenance outages of grid and system operations-monitored power generation facilities, developed in consultation with the generating companies. The submission also includes information on the maintenance schedule for each power plant and its associated units, along with the overall weekly reserve profile per year per grid, which are being submitted to the DOE every 3rd quarter of the year. Additionally, it contains the NGCP’s three-year maintenance program of transmission facilities, aligned with the planned outages of the power generation facilities. Table 3. GOMP Implementation, 2020 to 2022 Particulars Date of Submission to DOE GOMP 2021-2023 09 December 2020 4 Entitled, “Providing Guidelines of the Planned Outage Schedules of Power Plants and Transmission Facilities and the Public Posting of the Grid Operating and Maintenance Program” POWER DEVELOPMENT PLAN 2023-2050 19 === pdp-2023-2050-ch1-page-020.pdf === Particulars Date of Submission to DOE GOMP 2022-2024 26 October 2021 GOMP 2023-2025 25 October 2022 1.6 Formulation of the Decommissioning and Mothballing Policy Pursuant to Section 2.85 of the DOE Department Circular No. DC2010-03-0003, the DOE aims to finalize and complete the Generating Plant or Unit Decommissioning and Mothballing Policy by end of 2022. To gather feedback and recommendations, the DOE has actively engaged in Focus Group Discussions (FGDs) with relevant government agencies, offices, key energy stakeholders and industry players. The Electric Power Industry Management Bureau has successfully completed a total of eight (8) FGDs and three (3) public consultations (PubCon) during this period, as shown in Table 4. Table 4. Decommissioning and Mothballing Policy FGD and Public Consultation FGD and PubCon Dates 13 July 2022 18 July 2022 11 August 2022 16 August 2022 05 September 2022 22 November 2022 24 November 2022 28 November 2022 Agencies Involved Energy Regulatory Commission Philippine Electricity Market Corporation Independent Electricity Market Operator of the Philippines National Grid Corporation of the Philippines National Power Corporation National Transmission Corporation Philippine Independent Power Producers Association Power Sector Assets and Liabilities Management Department of Environment and Natural Resources Board of Investments RE Associations a) PHILHYDRO Association, Inc. b) National Geothermal Association of the Philippines c) Wind Energy Developers Association of the Philippines d) Biomass Renewable Energy Alliance e) Philippine Solar and Storage Energy Alliance f) Confederation of Solar Power Developers of the Philippines Visayas Leg - Public Consultation Bai Hotel Cebu, Mandaue City, Cebu Mindanao Leg – Public Consultation Apo View Hotel, Davao City Luzon Leg – Public Consultation The Marquis Events Place, BGC, Taguig City The draft policy aims to help generation companies understand the definitions and processes involved in the decommissioning and mothballing. It also seeks to provide clear guidelines for applicants, enhance the DOE’s ability to plan and monitor the power supply profile in coordination with System Operator, ensure that the generation 5 Section 2.8 of DOE DC No. DC2010-03-0003 provides that Generating Companies shall seek prior clearance from the DOE regarding any plans for deactivation or mothballing of existing generating units or facilities critical to the reliable operation of the Grid POWER DEVELOPMENT PLAN 2023-2050 20 === pdp-2023-2050-ch1-page-021.pdf === companies comply with the requirements set by relevant agencies, and clarify the roles and responsibilities of each agency involved. 2. Transmission and System Operation 2.1 Existing Transmission Facilities In December 2022, the total substation capacity being managed by the National Grid Corporation of the Philippines (NGCP) reached 48,801 MVA with a total transmission line length of to 21,027 circuit-km (ckt-km), as summarized in Table 5. Luzon has the largest substation capacity, followed by Mindanao and Visayas. Mindanao’s total transmission line length is more significant than the Visayas due to the grid’s larger geographical size. Table 5. Existing Transmission Facilities, 2021-2022 Grid Substation Capacity (MVA) Transmission Line Length (ckt-km) 2021 2022 2021 2022 Luzon 29,955 35,641.00 9,617.42 9,631.90 Visayas 5,287.50 5,848.50 5,297.99 5,393.49 Mindanao 6,091 7,311.00 5,864.14 6,001.60 Total 41,333.50 48,800.50 20,779.55 21,027.00 Source: Transmission Development Plan (TDP) 2023-2040 Consultation Report To ensure that the voltages across the transmission network are compliant with the prescribed levels in the Philippine Grid Code (PGC), capacitor banks and shunt reactors have been installed in appropriate locations in Luzon, Visayas, and Mindanao. As of December 2022, the total Capacitor Banks and Shunt Reactors installed were recorded at 5,787 MVAR. 2.2 Transmission Projects The NGCP completed 31 transmission projects or portions of a project from January 2021 to December 2022 based on the December 2022 Transmission Project Status Report, which is classified into three types, namely substation capacity upgrading, transmission line (TL) extension, and voltage improvement. These projects are expected to support the increasing electricity demand, accommodate the upcoming power generation capacities, and enhance the system reliability. Table 6. Completed Transmission Projects, 2021-2022 Grid Project Name Energization Luzon Luzon Voltage Improvement Project 3 30 August 2021 Luzon Luzon PCB Replacement 31 Jan 2021 Luzon Luzon Voltage Improvement Project 6 01 May 2021 Luzon North Luzon S/S Upgrading Project 12 December 2021 POWER DEVELOPMENT PLAN 2023-2050 21 === pdp-2023-2050-ch1-page-022.pdf === Grid Project Name Energization Luzon Calamba 230kV S/S 17 May 2021 Luzon Luzon Voltage Improvement Project 4 30 May 2021 Luzon Tower Resiliency of Bicol Transmission Facilities 05 October 2021 Luzon Balsik (Hermosa) - San Jose 500 kV TL 19 December 2022 Luzon Mariveles – Balsik (Hermosa) 500kV TL 09 April 2022 Luzon San Jose – Angat 115kV TL Upgrading 20 May 2022 Luzon Luzon Voltage Improvement Project 3 13 October 2022 Luzon Pagbilao 500kV S/S Project 26 October 2022 Luzon South Luzon S/S Upgrading Project 2 14 December 2022 Luzon Clark – Mabiga 69kV TL Project 10 October 2022 Luzon South Luzon S/S Upgrading Project 07 November 2022 Luzon Ambuklao – Binga 230kV TL Project 17 July 2022 Visayas Sta. Rita-Quinapondan 69kV TL Project 04 July 2021 Visayas Permanent Restoration for the Panitan-Nabas 138kV TL affected by Typhoon Ursula (14 Towers) 06 October 2021 Visayas Cebu – Negros Panay 230kV Backbone, Stage 3 24 December 2022 Visayas Panitan – Nabas Line 2 Stringing Project 28 April 2022 Visayas Tagbilaran 69kV S/S Project 06 November 2022 Visayas Mindanao-Visayas Interconnection Project 10 December 2022 Visayas Cebu-Negros-Panay 230kV Backbone, Stage 2 15 December 2022 Mindanao Zamboanga Peninsula Voltage Improvement 23 April 2022 Mindanao Mindanao S/S Upgrading Project 22 November 2021 Mindanao Mindanao S/S Upgrading Project 04 June 2022 Mindanao Kauswagan-Lala 230kV TL Project 23 February 2022 Mindanao Polanco – Oroquieta 138kV TL Project 11 April 2022 Mindanao Eastern Mindanao Voltage Improvement Project 21 August 2022 Mindanao Mindanao-Visayas Interconnection Project 09 December 2022 Mindanao Agus 2 Switchyard Upgrading/Rehabilitation 11 September 2022 Source: NGCP’s Transmission Project Status Report as of December 2022 2.3 Ancillary Services – Competitive Selection Process Following the promulgation of Department Circular No. DC2021-10-00316 on 04 October 2021, the DOE is continuously monitoring the implementation of the Competitive Selection Process (CSP) of the System Operator (SO). Out of the 38 bidders issued with Notice of Award from the result of the CSP, only the Ancillary 6 Entitled “Prescribing the Policy for the Transparent and Efficient Procurement of Ancillary Services by the System Operator” POWER DEVELOPMENT PLAN 2023-2050 22 === pdp-2023-2050-ch1-page-023.pdf === Services Procurement Agreements (ASPA) for the 36 bidders were executed and filed with the ERC due to non-acceptance of the award of two winning bidders. 2.4 Issued Endorsement for Transmission Projects under the EVOSS System From January 2021 to December 2022, the DOE has issued 57 Certificate of Endorsement to Energy Regulatory Commission for the Point-to-Point (P2P) Limited Transmission Facilities. In November 2022, this process was integrated into the EVOSS system, resulting to two (2) endorsements being issued online as listed in Table 7. Table 7. DOE Issued Endorsement for Transmission Projects, 2021-2022 2021 2022 November 2022 – EVOSS System 37 18 2 2.5 Direct Connection Updates With the promulgation of RA No. 110327 and RA No. 112348, the process “Approval of Application for Direct Connection to the Grid” adopted the Quality Management System and conformed with the requirements of the ISO 9001:2015 to continually improve the process by ensuring that all strategic efforts are geared towards the established quality policy and objectives. 3. Distribution 3.1 Number of Customers The distribution utilities (DUs) registered a total of 20.3 million captive customer connections in 2020. About 92% of them are residential customers, while the remaining are commercial, industrial, and others (other customer categories composed of government, streetlights, irrigation, etc.,) as summarized in Table 8. Table 8. 2020 Captive Customer Connections, in million Grid Residential Commercial Industrial Others Total per Grid Luzon 12.27 0.84 0.02 0.16 13.29 Visayas 3.55 0.18 0.01 0.08 3.82 Mindanao 2.90 0.21 0.02 0.07 3.19 Total per Sector 18.72 1.23 0.05 0.31 20.31 Source: 2021-2030 Distribution Development Plan (DDP) Note: Totals may not add up due to rounding 7 Entitled, “Ease of Doing Business and Efficient Government Service Delivery Act of 2018” 8 Entitled, “Energy Virtual One-Stop Shop Act” or “EVOSS Act” POWER DEVELOPMENT PLAN 2023-2050 23 === pdp-2023-2050-ch1-page-024.pdf === In 2021, 22.6 million captive customer connections were recorded by the DUs with an 11% annual growth rate from the 2020 level. Majority of the customers are residential, comprising 92% of the total number of customers, as shown in Table 9. Table 9. 2021 Captive Customer Connections, in million Grid Residential Commercial Industrial Others Total per Grid Luzon 13.17 0.90 0.02 0.17 14.25 Visayas 3.87 0.19 0.01 0.09 4.15 Mindanao 3.85 0.25 0.02 0.10 4.21 Total per Sector 20.88 1.33 0.05 0.35 22.62 Source: 2022-2031 DDP (Note: Totals may not add up due to rounding) 3.2 Capital Expenditures The DUs have implemented various capital expenditure projects, which include electrification, network, and non-network projects, among others. As of 2020, the DUs have completed a total of 2,736 ckt-km of sub-transmission facilities, 67,515 ckt-km of distribution facilities, and 20,461 MVA of substation capacities as shown in Table 10. These projects were necessary to ensure that the load growth and development in the franchise area of the DU will be supported by a reliable and efficient distribution system. Table 10. 2020 Capital Expenditures Projects Grid Sub-transmission Facilities (ckt-km) Distribution Facilities (ckt-km) Substation Capacity (MVA) Luzon 2,456 48,943 19,819 Visayas 236 16,923 429 Mindanao 44 1,649 213 Total 2,736 67,515 20,461 Source: 2021-2030 DDP (Note: Totals may not add-up due to rounding) In 2021, a total of 2,660 ckt-km of sub-transmission facilities, 48,509 ckt-km of distribution facilities, and 21,340 MVA of substation capacities (Table 11) were implemented by the DUs and added to their existing distribution assets. Table 11. 2021 Capital Expenditures Projects Grid Sub-transmission Facilities (CKT-KM) Distribution Facilities (CKT-KM) Substation Capacity (MVA) Luzon 2,398 36,253 20,995 Visayas 216 11,826 189 Mindanao 46 430 156 POWER DEVELOPMENT PLAN 2023-2050 24 === pdp-2023-2050-ch1-page-025.pdf === Grid Sub-transmission Facilities (CKT-KM) Distribution Facilities (CKT-KM) Substation Capacity (MVA) Total 2,660 48,509 21,340 Source: 2022-2031 DDP (Note: Totals may not add-up due to rounding) 3.3 Distribution Utilities – Competitive Selection Process To streamline the conduct of CSP and the responsibilities of the DOE, Energy Regulatory Commission (ERC), and National Electrification Administration (NEA) under the Republic Act (RA) No. 9136 or the Electric Power Industry Reform Act (EPIRA), the DOE issued Department Circular No. DC2023-06-00219 on 30 June 2023, which took effect on 18 July 2023 after publication at The Daily Tribune and Business World on 04 July 2023. Pursuant to the said policy, the conduct of CSP shall be in accordance with the guidelines of the ERC and the NEA, in the case of Electric Cooperatives (ECs). 4. Supply 4.1 Retail Competition and Open Access Updates Retail competition and open access (RCOA) participants have grown significantly since its establishment in 2013. Initially, the threshold was set at a monthly average peak demand of one (1) MW but later adjusted to 750 kW and 500 kW moving towards the EPIRA vision of customer choice. Despite the increasing number of contestable customers, there is still a notable number of qualified end-users under the captive market who haven’t switched yet to RCOA especially in the 500 kW to 749 kW threshold. Table 12. Captive vs. Contestable Customer Statistics Prospective Endusers under Captive Registered Contestable Customers December 2022 December 2022 291 1,222 231 426 649 275 Sub-Total 1,171 1,923 RES - 38 Local RES - 15 Sub-Total - 53 Retail Market Participants Average Peak Demand ≥ 1MW Contestable Customers Suppliers 750kW ≥ Average Peak Demand > 1MW 500kW ≥ Average Peak Demand > 749 kW 9 Entitled, “Prescribing the Policy for the Mandatory Conduct of the Competitive Selection Process by the Distribution Utilities for the Procurement of Power Supply for Their Captive Market” POWER DEVELOPMENT PLAN 2023-2050 25 === pdp-2023-2050-ch1-page-026.pdf === Supplier of Last Resort - 25 Retail Metering Services Provider - 63 Grand Total - 2,073 On 29 July 2019, the DOE promulgated Department Circular No. DC2019-07-001110, which amended some provisions of DC2013-07-0013 and DC2018-01-0002 to clarify voluntary participation in the RCOA, designate the Independent Market Operator (IMO) as the central registration body and reduce barriers to entry for qualified contestable customers. To further promote competition and develop the retail market, the ERC adopted ERC Resolution No. 12, Series of 202011, which expanded RCOA participation to end-users with at least 500kW average monthly peak demand. Meanwhile, studies on the implementation of retail aggregation are being coordinated with the IMO to allow aggregation of lower threshold consumers contiguously situated for them also to exercise customer choice. Currently, the pilot implementation of the Retail Aggregation has commenced last 24 June 2022, in partnership with the ERC, Manila Electric Company (MERALCO), and UP Diliman, pending the implementation in UP Diliman while addressing their issues on the CSP. 4.2 Net Metering Net-Metering refers to a system, not exceeding 100kW, appropriate for distributed generation, in which a distribution grid user has a two-way connection to the grid and is only charged for his net electricity consumption and is credited for any overall contribution to the electricity grid. This allows an end-user to be a prosumer (both a consumer and energy producer), but not a net power generator. As of December 2022, a total of 7,583 qualified end-users covering 65 DUs, were registered in the program, with a total rated capacity of 63.2MWp. 4.3 Green Energy Option Program The supply sector became broader and more competitive with the promulgation of the Green Energy Option Program (GEOP). On 18 July 2018, the DOE issued Department Circular No. DC2018-07-001912. However, it was only after the issuance of the ERC Resolution No. 8, series of 2021 or the “Rules for the GEOP” in August 2021 that the program became fully operational. The GEOP is a non-regulated voluntary policy mechanism that allows electricity endusers with 100kW and above demand to source their electricity supply from RE sources through RE Suppliers. As of December 2022, the DOE has issued 18 GEOP Operating 10 Entitled, “Amending Various Issuances on the Implementation of the Retail Competition and Open Access (RCOA)” 11 Entitled, “A Resolution Prescribing the Timeline for the Implementation of Retail Competition and Open Access” 12 Entitled, “Promulgating the Rules and Guidelines Governing the establishment of the Green Energy Option Program Pursuant to the Renewable Energy Act of 2008” POWER DEVELOPMENT PLAN 2023-2050 26 === pdp-2023-2050-ch1-page-027.pdf === Permits to RE Suppliers through Department Circular No. DC2020-04-000913. A total of 199 customers in Luzon and Visayas have already switched to the GEOP, which is equivalent to 60.99MW non-coincidental peak demand. 5. Electricity Market 5.1 Wholesale Electricity Spot Market (WESM) Mindanao The establishment of WESM Mindanao serves as a mechanism for efficiently scheduling, dispatching, and settling energy transactions in the Mindanao Grid. Under the WESM regime, the DOE aims to rectify all grid arrangements, particularly those that do not comply with existing applicable rules and regulations. In DC2022-12-0039, the DOE declared the launch of commercial operation of WESM Mindanao on 26 January 2023. WESM in Mindanao will be vital in facilitating the import-export of energy through the MVIP. Through the implementation of WESM and the connection of Visayas and Mindanao, the reliability and security of electric power supply, not only in the Mindanao but also in Visayas and Luzon, will be realized. 5.2 Reserve Market The Reserve Market provides a new avenue for the procurement of reserves to augment the current procurement of Ancillary Services (AS) via CSP to satisfy the required AS levels and ensure a sustainable, reliable, affordable, and secure energy supply in the country through the co-optimization of energy and reserves in the WESM and Reserve Market. The full commercial operations of the Reserve Market will encourage more investments in the energy sector to satisfy the growing energy demand and ensure the reliability and stability of the Grid. The DOE intends to release a Department Circular in the third quarter of 2023, to officially announce the commercial operations of the Reserve Market. The goal is to initiate full commercial operations by December 2023, at which point transactions will become financially binding and the complete co-optimization of energy and reserves will be achieved. 5.3 Preferential Dispatch for Renewable Energy Through the DOE Department Circular No. DC2022-10-003114 issued on 05 October 2022, all intermittent and Feed-in-Tariff (FIT) eligible RE generating units, including wind, solar, run-of-river hydro, and ocean are given preference in the WESM dispatch schedule to ensure its maximum output injection to the grid. Biomass, geothermal, and impounding hydro have the option to enjoy preferential dispatch, taking into consideration the contractual obligations with their respective customers. 13 Entitled, “Guidelines Governing the Issuance of Operating Permits to Renewable Energy Suppliers under the Green Energy Option Program” 14 Entitled, “Declaring All Renewable Energy Resources as Preferential Dispatch Generating Units in the Wholesale Electricity Spot Market Amending for this Purpose Department Circular No. DC2015-03-0001” POWER DEVELOPMENT PLAN 2023-2050 27 === pdp-2023-2050-ch1-page-028.pdf === 6. Missionary Electrification 6.1 Demand and Supply Statistics Figure 7. 2022 Off-Grid Demand and Supply Statistics In 2022, the off-grid areas had a total demand of 332 MW, with Luzon having the highest share of 79% since it includes the very large island grids of Mindoro, Marinduque, Palawan, Catanduanes, and Masbate, while Visayas and Mindanao having 8% and 13% share respectively as shown in Figure 7. Figure 8. 2022 Off-Grid Total Demand as of 31 December 2022 As of December 2022, the total supply in off-grid areas in terms of the rated and dependable capacity is 674 MW and 548 MW, respectively, which is dominated by the New Power Providers (NPPs) as shown in Figure 8. POWER DEVELOPMENT PLAN 2023-2050 28 === pdp-2023-2050-ch1-page-029.pdf === 6.2 Off-Grid Transmission and Substation Systems 6.2.1 Existing Transmission and Substation Systems Table 13 shows the summary of existing transmission system facilities of the National Power Corporation (NPC) in five (5) areas of Luzon namely Mindoro, Palawan, Catanduanes, Masbate, and Marinduque as of December 2022. Table 13. 2022 Existing 69kV Transmission and Substation Systems in Off-Grid Areas Area/Island Transmission Line Length (ckt-km) Substation Capacity (MVA) Mindoro 449.03 95 Palawan 359.30 60 Catanduanes 99.67 20 Masbate 149.21 20 Marinduque 58.51 20 Total 1,115.72 215 Source: NPC’s Missionary Electrification Plan (MEP) 2023-2027 6.2.2 Off-Grid Transmission and Substation System Projects Table 14 shows the summary and status of NPC’s transmission system projects as of December 2022 in five (5) off-grid areas. Table 14. List of On-Going Transmission System Projects in the Off-Grid Areas Target Year of Completion Status 1. Construction of Roxas – Taytay 69kV TL (36.6 ckt-kms.) (Schedule 1) 2022 100% Completed 2. Construction of Roxas – Taytay 69kV TL (34.7 ckt-kms.) (Schedule 2) 2022 100% Completed 3. Upgrading of Roxas Substation from 5 MVA to 10 MVA Capacity 2023 On-going procurement 1. Construction of San Miguel – Viga 69kV TL (23.0 ckt-kms.) 2022 80.08% Completed 2. Construction of 5 MVA New Viga Substation 2023 45.31% Completed Project Name • • • Palawan Catanduanes Masbate POWER DEVELOPMENT PLAN 2023-2050 29 === pdp-2023-2050-ch1-page-030.pdf === Project Name Target Year of Completion Status 1. Construction of Tap – Uson 69kV TL (1.2 cktkm) 2023 On-going procurement 2. Upgrading of Mobo Substation from 10 MVA to 20 MVA Capacity 2022 100% Completed 1. Construction of Mogpog – Buenavista 69kV TL (32.0 ckt-km) 2023 On-going procurement 2. Construction of 20 MVA New Mogpong Substation 2022 100% Completed 2026 Tendering • • Marinduque Sulu Construction of Jolo Tie Line (5.0 ckt-km) Source: NPC’s MEP 2023-2027 6.3 Missionary Electrification Development Plan (MEDP) Publication The DOE has published the 2021-2025 Missionary Electrification Development Plan (2021 MEDP) dated 17 February 2023 on the DOE Website. The 2021 MEDP provides major updates to the 2016-2020 MEDP to introduce new policies, strategies, and governance reforms for off-grid power development and missionary electrification in accordance with Department Circular No. DC2019-01-000115. The main objectives of the 2021 MEDP are to support the following strategic goals of the Government as shown in Figure 9. Figure 9. MEDP Objectives 15 Entitled, “Prescribing the Omnibus Guidelines on Enhancing Off-Grid Power Development and Operation” POWER DEVELOPMENT PLAN 2023-2050 30 === pdp-2023-2050-ch1-page-031.pdf === 7. Total Electrification Access to electricity is regarded as a transformative tool that leads to the improvement of the quality of life of people. The government, mindful of the impact that electricity access brings, is guided with the goal of attaining 100.0% electrification in the country by 2028. The attainment of the total electrification goal entails the continuous implementation of electrification programs that are overseen by the Total Electrification Steering Committee (TESC) composed of the DOE, NEA, and NPC and complemented by the National Total Electrification Roadmap (NTER) which is the consolidated Local Total Electrification Roadmap (LTER) of the DUs. The provision of electricity is an obligation to be carried out by DUs and this must be supplied in the least cost manner subject to the collection of retail rates approved by the ERC. The DUs are also responsible for providing service to unviable areas and in cases wherein there is no viable solution, these areas may be transferred to another DU (if there is any available). A Microgrid Service Provider (MGSP), pursuant to RA No. 1164616 or the “Microgrid Systems Act”, comes in if DUs are unable to serve remote and unviable areas. The DOE is responsible for declaring these remote and unviable areas open for private-sector participation. The NPC may enter if neither a DU nor an MGSP can provide electricity service. 7.1 Total Household Electrification by 2028 To achieve the goal of 100.0% Household electrification by 2028, the National Total Electrification Framework (NTEF), as shown in Figure 10 below, has been thoughtfully designed to overcome past challenges and ensure the success of electrification plans and programs. This comprehensive framework encompasses key factors, such as electrification strategies, funding sources, and project implementers. Figure 10. National Total Electrification Framework 16 Entitled, “An Act Promoting the Use of Microgrid Systems to Accelerate the Total Electrification of Unserved and Underserved Areas Nationwide” or “Microgrid Systems Act” POWER DEVELOPMENT PLAN 2023-2050 31 === pdp-2023-2050-ch1-page-032.pdf === 7.1.1. 2022 Household Electrification Status Electrification at the household (HH) level stood at 96.2% in 2022 based on the 2015 PSA census, an increase of 0.74 percentage points from the 2021 level of 95.4%. The rise in electrification level indicates that 25.91 million households out of the potential 22.98 million are now with electricity service. 30,000,000 96.2% 95.4% 90.00% 80.00% 70.00% No. of Households 20,000,000 60.00% 50.00% 15,000,000 40.00% 30.00% 10,000,000 % Electrification 25,000,000 100.00% 20.00% 10.00% 5,000,000 2021 2022 Unserved HH 1,055,722 879,232 Served HH 25,016,841 25,914,019 95.41% 96.17% % Electrification 0.00% Figure 11. Household Electrification Status, 2021 – 2022 Luzon recorded the highest electrification level at 98.9% with 16.1 million energized households. Visayas closely followed with an electrification level of 97.6% equivalent to 4.83 million energized households, while Mindanao remains to have the highest number of unserved households at 625,687 equating to an electrification level of only 88.1%. Table 15. Household Electrification Status, 2022 (Per Island Group) Potential HHs (2015 PSA) Served HHs (4th Quarter 2022) Unserved HHs, per DU per Province % HH Electrification Luzon 13,318,261 16,092,459 176,479 98.9 Visayas 4,401,698 4,834,595 105,110 97.6 Mindanao 5,265,012 4,987,091 625,687 88.1 Grand Total 22,984,97 25,914,073 879,232 96.2 Major Island Group In terms of electrification level aggregated by DUs, ECs stand at 94.2% electrification level accounting for 14,311,409 households. For the private sector, MERALCO already has achieved 100.0% electrification in its franchise area equivalent to 6.4 million households. Electrification remains a challenge for the unviable areas served by the MGSP (formerly Qualified Third-Party or QTP) with an electrification level of 62.6% or 23,696 households. POWER DEVELOPMENT PLAN 2023-2050 32 === pdp-2023-2050-ch1-page-033.pdf === Table 16. Household Electrification Status, 2022 (Per DUs) Potential HHs (2015 PSA) Served HHs (4th Quarter 2022) Unserved HHs, per DU per Province % HH Electrification 14,311,409 15,420,243 829,287 94.2 EC-QTP/NPC-SPUG 23,696 15,194 8,873 62.6 MERALCO 6,478,982 8,207,684 0 100.0 Other DUs 2,170,884 2,270,952 41,072 98.1 Grand Total 22,984,971 25,914,073 879,232 96.2 DUs ECs 7.1.2. Addressing Barriers to Program Implementation a) Policy Guidelines for the Implementation of the DOE-Locally Funded Projects – Total Electrification Project The DOE issued two (2) policies on the implementation of the Locally Funded Projects – Total Electrification Project (LFP-TEP). The DOE issuance of TEP 1 – Policy Guidelines on the implementation of LFP-TEP which provides allocation to NEA and NPC and the DUs to implement the application of electrification strategies for un-energized households in both grid and off-grid areas. The other policy is TEP 2 – which provided the policy guidelines for the provision of portable solar home systems to energize conflict-affected and vulnerable areas by the DOE in partnership with the concerned ECs. Another policy on the implementation of TEP will be issued for the participation of other qualified implementers such as State Universities and Colleges, and private groups, aside from NEA and NPC. This will address the issues of absorptive capacity to implement the projects and fund liquidation. On 05 October 2022, the NEA and NPC submitted to the DOE their updated Work and Financial Plans for TEP fiscal year (FY) 2022 Funds. The submission was in consideration of the new timeline and project costing for their respective prioritized electrification projects. In addition, NPC has submitted the details of the PhP195 million allocated budget for the implementation of electrification projects in Missionary Areas. Lastly, Executive Order (EO) No. 156, Series of 202117 Composite Team has approved the final list of projects to be funded under the TEP FY2022, including the electrification project of NPC for Missionary Areas. The corresponding Notices of Award to NEA and NPC were issued on 20 December 2022 and the Memorandum of Agreement for the approved project was signed, notarized, and issued on the same day. 17 Executive Order No. 156, Series of 2021 entitled “Instituting Measures to Ensure Consistent and Reliable Electricity Service in Inadequately Served Areas, Improve Performance of Ineffective Distribution Utilities, and Achieve Total Electrification of the Country” POWER DEVELOPMENT PLAN 2023-2050 33 === pdp-2023-2050-ch1-page-034.pdf === b) Institutionalization of Total Electrification Steering Committee On 12 December 2021, the former President Rodrigo R. Duterte signed EO 156, s. 202118, which directs DOE to carry out the following: a) identify inadequately served areas; b) mandate the DUs to submit a comprehensive electrification master plan (CEMP) and modify or reject such if not in accordance with the total electrification objective; c) take appropriate steps to ensure electrification of inadequately served areas; d) formulate mechanism for the LGUs and communities to determine if they are inadequately served; e) determine and identify all underperforming and ineffective DUs; f) conduct performance review of DUs and agencies involved in total electrification; and g) promulgate rules and regulations for the entry and integration of microgrids, distributed energy resources (DERs), and other alternative service providers. To accelerate and fully realize the implementation of the EO 156, s. 2021, the DOE issued the Department Order No. DO2022-02-000219 which created the Composite Team as the lead responsible for the overall implementation of the EO under direct supervision and guidance of the DOE and established a Technical Working Group (TWG) that will provide technical support and assistance in the planning and operation of the Composite Team. On 21 January 2022, RA No. 11646 was issued by President Duterte while the IRR was released on 24 May 2022 as Department Circular No. DC2022-05001720. The DOE recognizes the need to organize a new steering committee dedicated to supervising and providing directions in the implementation of various plans and programs for the provision of electricity access to communities that are identified as unserved and underserved by the DUs and other responsible entities. On 21 December 2022, the DOE issued Department Order No. DO2022-12001621 TESC which supervises and provides direction in the formulation of NTER. The NTER shall be the consolidation of the LTER of DUs nationwide which includes areas declared as unserved and underserved areas, in accordance with RA No. 11646 and its implementing rules and regulations. The Steering Committee shall also monitor and conduct periodic reviews of the implementation of the NTER and direct adjustments as necessary, to consider, among others, demographic changes, new approaches to electrification, and identification of alternative support to expand energy access. Provide timely resolution to policy gaps and implementation issues affecting the achievement of the total electrification target. 18 Ibid 19 Entitled, “Implementing Framework of Executive Order No. 156 s. 2021” 20 Entitled, “Rules and Regulations to Implement Republic Act No. 11646” 21 Entitled, “Creating the Total Electrification Steering Committee to Accelerate the National Total Electrification” POWER DEVELOPMENT PLAN 2023-2050 34 === pdp-2023-2050-ch1-page-035.pdf === c) Republic Act (RA) No. 11646 The enactment of the Microgrid Systems Act (MGSA) on 21 January 2022 serves to complement the government’s continuing efforts towards total electrification. MGSA was enacted to pursue sustainable rural development and poverty reduction, promote private sector participation, provide a competitive environment and level playing field for different kinds of energy sources with a preference for low-cost, indigenous, and renewable, and ultimately to accelerate total electrification and ensure the provision of quality, reliable, secure, and affordable supply of electrification of underserved and unserved areas. In compliance with the MGSA, the DOE promulgated and published Department Circular No. DC2022-05-0017 or MGSA-IRR which took effect on 25 June 2022, 15 calendar days following its publication on 09 June 2022. Under the said Act, those qualified to apply as an MGSP are entities, including private corporations, local government units (LGUs), cooperatives, nongovernment organizations, generation companies and their subsidiaries, and DUs and their subsidiaries who are capable and willing to comply with the technical, financial, and other requirements through CSP. d) National Total Electrification Roadmap (NTER) The passage of RA No. 9136 or the EPIRA provides the policy of the state to ensure and accelerate the total electrification of the country. With the fastchanging economic and demographic landscape, the DOE, being mandated to ensure that this objective is attained, has initiated various programs such as the Accelerated Barangay Electrification Program and the Expanded Rural Electrification Program, that led to an estimated 100.0% barangay electrification in 2008. While substantial progress has been made in electrifying barangays, household electrification remains a challenge, prompting not only the DOE but other government instrumentalities as well to formulate programs to support 100.0% electrification. The challenges include ensuring 24/7 electricity services to all areas in the country up to the remote barangays and islands. Meanwhile, the framework must consider that demand for connection services in areas with access to the grid will continue to increase alongside population and household growth. Total electrification of the country remains a priority amid population and economic expansion. The Philippine Energy Plan (PEP) 2023-2040 emphasized the goal of achieving total electrification in the country, particularly in bringing electricity services to consumers in off-grid or missionary areas, to which the involvement of the private sector is imperative. Recognizing the importance of proper planning in total electrification, RA No. 11646 mandated the DOE to prepare and publish annually on its website the NTER, upon consultation with public and private stakeholders. The NTER is a comprehensive national strategic plan including a work plan to accelerate POWER DEVELOPMENT PLAN 2023-2050 35 === pdp-2023-2050-ch1-page-036.pdf === total electrification in the country considering the various LTERs and the DDPs which shall be incorporated in the PEP. 7.2 Grid and Off-Grid Electrification 7.2.1. Grid a) Nationwide Intensification of Household Electrification (NIHE) The program reported a total of 274,035 energized households in 2022 out of the 344,090 households with approved house wiring and kilowatt-hour (kWh) meter subsidy. The restrictions imposed by community quarantine because of COVID-19 affected and halted installation activities for the identified beneficiaries. As a move to ensure project completion, the DOE drafted for approval an Advisory to provide guidance to concerned DUs implementing the program regarding their concerns on fund releases and inspection upon completion. b) Sitio Electrification Program (SEP) The SEP covers the energization of sitios, which are territorial enclaves within a barangay that is distant from the barangay center and composed of at least 30 – 40 households. As of December 2022, NEA was able to energize 951 sitios out of the 1,085 DBM-approved sitios to be energized under the 2022 General Appropriation Act (GAA) with an estimated project cost of Php1.27 billion. c) Barangay Line Enhancement Program (BLEP) The BLEP pertains to the connection to the grid of barangays previously energized through small generating sets, solar home systems (SHS), and microhydro. The program also covers the improvement of tapping points and/or installation of underground / submarine cables. For the period 2022 to 2026, 166 barangays are being targeted by the program with a proposed budget of PhP2.4 billion (to be proposed in the GAA from 2022 to 2026 and subject to the subsidy of the national government). 7.2.2 Off-Grid a) DOE- PV Mainstreaming (PVM) Solar PV Mainstreaming Program is the DOE’s program to address unenergized highly dispersed, remote HHs who are far from the distribution lines of the ECs. It is financed by both the DOE’s LFP and the European Union through the Access to Sustainable Energy Program (ASEP). The program adopts the Fee-for-Service Business Model where the ECs install the SHS in unenergized households (located in areas unviable for grid extension) within the EC’s franchise area. The ECs are the owners of the hardware and are responsible for the installation, maintenance, repair, and replacement of the system components. The homeowner’s responsibility covers the household wiring, lights, and other 12-volt direct current (DC) loads/appliances. POWER DEVELOPMENT PLAN 2023-2050 36 === pdp-2023-2050-ch1-page-037.pdf === The Program under the DOE’s LFP has completed seven (7) projects implemented by seven (7) ECs in Luzon, Visayas, and Mindanao. A total of 11,113 households benefited from the Projects for the reporting period. All participating ECs namely: Sultan Kudarat Electric Cooperative, Inc. (SULECO), Busuanga Island Electric Cooperative, Inc. (BISELCO), Quezon II Electric Cooperative, Inc. (QUEZELCO II), Iloilo II Electric Cooperative, Inc. (ILECO II), Zamboanga Sur I Electric Cooperative, Inc. (ZAMSURECO I) and Bohol II Electric Cooperative, Inc. (BOHECO II) were already technically and financially completed and liquidated. An endorsement to the ERC was also made by the DOE for all the completed PVM Projects. This is in relation to the issuance of an Order of Approval and in compliance with the ERC Resolution No. 17 series of 201722. Table 17. DOE’s Locally Funded Project (LFP) on PVM Electric Cooperative No. of HH Status Remarks QUEZELCO II 1,333 Completed Closed BISELCO 3,711 Completed Closed BOHECO II 530 Completed Closed SULECO 2,575 Completed Closed ZAMSURECO I 1,129 Completed Closed ILECO II 706 Completed Closed BISELCO (Batch 2) 1,129 Ongoing Closed QUEZELCO II 1,333 Completed Closed Total 11,113 b) Access to Sustainable Energy Programme (ASEP) The program’s PVM component focuses on rural electrification by providing SHS to 40,500 households in the franchise areas of participating ECs. This is divided into two (2) windows where Window 1 targets 10,000 households (financed by the European Union or EU and Global Partnership on OutputBased Aid Grants or GPOBA) and Window 2 covers the remaining 30,500 households (EU financed only). Table 18. EU-ASEP’s PVM Component Electric Cooperative Window 1 No. of HH COTELCO 2,500 DASURECO 2,500 SOCOTECO II 2,500 Status Completed 22 Entitled, “A Resolution Adopting the Rules Governing the Setting of Regulated Solar Home System (SHS) Tarriff for the Provision of Electricity Service for Rural Electrification by Electric Cooperatives (ECs)” POWER DEVELOPMENT PLAN 2023-2050 37 === pdp-2023-2050-ch1-page-038.pdf === Electric Cooperative Window 2 No. of HH SUKELCO 2,500 Sub-Total 10,000 FIBECO 1,000 BUSECO 2,500 COTELCO 6,100 SUKELCO 5,900 DASURECO 7,500 SOCOTECO II 7,500 Sub-Total 30,500 Total Status On-going 40,500 ● The first window of PVM (10,012 SHS installation) was completed by the first implementation agency, Local Government Unit Guarantee Corporation (LGUGC) in March 2019 and the installed SHS are operational, and this benefitted 10,000 households within the franchise areas of COTELCO, Davao del Sur Electric Cooperative (DASURECO), South Cotabato II Electric Cooperative (SOCOTECO II), and SUKELCO. ● The second window of PVM (30,500 SHS installation) was completed by the National Power Corporation (NPC) as of September 30, 2022. ● The implementation of the PVM program was carried out through several funding sources. More than half of the total installations were funded through ASEP as shown in Figure 12. Figure 12. PVM-SHS Installations per Funding Sources PVM Funding Sources CFP-2019-REACH PVM-GOP-2019 500 1,129 ASEP I-PURE 3,077 PVM-CFP-2019-YAMOG 3,777 PVM-GOP-2018 4,410 NEA 2019 5,039 PVM-GOP-2017 5,574 PVM-CFP-2019-MAHINTANA 5,640 PVM-EU-ASEP-W1 PVM-EEU-ASEP-W2 10,202 30,217 c) Microgrid Systems Act Last 21 January 2022, former President Rodrigo R. Duterte approved RA No. 11646 or the Microgrid Systems Act (MGSA). MGSA was enacted to pursue sustainable rural development and poverty reduction, promote private sector POWER DEVELOPMENT PLAN 2023-2050 38 === pdp-2023-2050-ch1-page-039.pdf === participation, provide a competitive environment and level playing field for different kinds of energy sources with a preference for low-cost, indigenous, and renewable, and ultimately to accelerate total electrification and ensure the provision of quality, reliable, secure, and affordable supply of electrification of UUAs. In compliance with the MGSA, the DOE promulgated and published DC2022-05-0017. The MGSA-IRR took effect on 25 June 2022, 15 calendar days following its publication on 09 June 2022. d) Micro Grid Service Providers (MGSP) As of December 2022, a total of 10 existing MGSP Sites in the Philippines as shown in Table 19, are being Operated by three (3) MGSP Operators namely Power Source Philippines, Inc. (PSPI), Sabang Renewable Energy Corporation (SREC) and First Philippines Island Energy Corp. (FPIEC). The QTP operators transitioned into MGSP in June 2022. Table 19. Existing MGSPs as of December 2022 Project Location Malapascua, Daan-Bantayan, Cebu Liminangcong, Taytay, Palawan Candawaga & Culasian, Rizal, Palawan Sitio Sabang, Puerto Princesa City, Palawan Average Demand Load (kW) Proponent Technology PSPI Diesel 1.455 MW <=40kWh = PhP12/kWh; >40kWh = PhP 15/kWh 1,163 9,733.46 (Daily) PSPI Diesel- .805 MW PhP 9.12/kWh 1,020 3,682.50 (Daily) PSPI Diesel - .43 MW PhP 9.9082/kWh 1,062 2,934.52 (Daily) SREC Diesel - 1.2 MW Solar1.452 MWp Battery Storage 2.44 MWh PhP12/kWh for Residential & Public Bldgs; PhP15/kWh for Commercial Bldg. 588 2,589.65 (Daily) N/A 940 93,003.75 (Monthly) Lahuy Island, Caramoan, Camarines Sur FPIEC Haponan Island, Caramoan, Camarines Sur FPIEC Quinalasag Island Garchitorena, Camarines Sur FPIEC Brgy. Manamoc, Cuyo, Palawan Served Customers Approved Tariff PSPI 250 kWp Solar + 468 kW Diesel + 232 kWh Battery 107 kWp Solar + 104 kW Diesel + 232 kWh Battery 404 kWp Solar + 585 kW Diesel + 232kWh Battery 0.216 MW Diesel 133 1,376 659 28,125 (Daily) POWER DEVELOPMENT PLAN 2023-2050 39 === pdp-2023-2050-ch1-page-040.pdf === Project Location Brgy. Port Barton, San Vicente Palawan Balut Island, Saranggani, Davao Occidental Proponent Technology PSPI 0.61 MW Diesel PSPI 0.71 MW Diesel Approved Tariff Served Customers Average Demand Load (kW) 610 3,138.71 (Daily) 3570 6000 kW (Daily) 9.5530/kWh The DOE issued Public Notice (PN) 2021-03-0001 on 12 March 2021, which opens 69 QTP Service Areas for the private sector – six (6) are under Negros Occidental Electric Cooperative (NOCECO) and 63 under Palawan Electric Cooperative (PALECO). About 26,874 households in Palawan and 3,249 households in Negros Occidental are expected to receive electricity services once these areas are served by QTPs/MGSPs. The QTPs/MGSPs serving these areas will be responsible for the generation of power including the equivalent distribution network. Meanwhile, on 05 January 2022, the DOE issued Public Notice No.PN2022-01001: Declaration of QTP Service Areas (updating PN 2021-03-001), wherein thirty-nine (39) areas within the PALECO’s franchise area were declared open for private sector participation under the QTP Program. Pursuant to DC2019-110015, a Notice to Proceed dated 04 October 2021 was issued by the NEA authorizing PALECO to conduct a CSP for the provision of QTP Services in the declared unserved areas. The CSP Process was conducted by PALECO in April 2022 and a Notice of Award was given to Maharlika Clean Power Holdings Corporation (MCPHC) in consortium with Clean Grid Partners Pte. Ltd. and WEnergy Global Pte Ltd., with Special Purpose Vehicle – Archipelago Renewable Corporation (ARC) for a total of twelve (12) lots as follows, last 17 June 2022. Table 20. MGSP Service Areas Awarded to ARC MGSP Service Areas DU Sto. Tomas, Dumaran PALECO Potential HHs MGSP Capacity/ Technology ARC Solar - 151kwp BSS -193 kwh Diesel -83 kW ARC Solar - 227kwp BSS -226 kwh Diesel -112 kW 678 Bohol, Dumaran PALECO Sarong, Bataraza PALECO 448 ARC Solar - 151 kwp BSS -193 kwh Diesel -83 kW Taratak, Bataraza PALECO 426 ARC Solar - 227 kwp BSS -226 kwh Diesel -112 kW Catalagbak, Quezon PALECO 381 ARC Solar - 227 kwp BSS -226 kwh Diesel -112 kW Taburi, Rizal PALECO 1400 ARC Solar - 365 kwp BSS -411 kwh Diesel -224 kW POWER DEVELOPMENT PLAN 2023-2050 40 === pdp-2023-2050-ch1-page-041.pdf === MGSP Service Areas DU Potential HHs MGSP Capacity/ Technology Solar - 151 kwp BSS -193 kwh Diesel -83 kW Canipaan, Rizal PALECO 645 ARC Solar - 227 kwp BSS -226 kwh Diesel -112 kW Latud, Rizal PALECO 560 ARC Solar - 151 kwp BSS -193 kwh Diesel -83 kW Alacalian, Taytay PALECO 631 ARC Solar - 365 kwp BSS -411 kwh Diesel -224 kW Bantulan, Taytay PALECO Solar - 151 kwp BSS -193 kwh Diesel -83 kW 773 Silanga, Taytay ARC Solar - 227 kwp BSS -226 kwh Diesel -112 kW PALECO Solar - 365 kwp BSS -411 kwh Diesel -168 kW Caruray, San Vicente PALECO Binga, San Vicente PALECO 351 ARC Solar - 302 kwp BSS -275 kwh Diesel -168 kW Bebeladan, El Nido PALECO 435 ARC Solar - 365 kwp BSS -411 kwh Diesel -168 kW 980 ARC Solar - 151 kwp BSS -193 kwh Diesel -83 kW 7.3 Energy Regulations (ER) 1-94 Program Update As a proactive response to the pandemic and with the recognition that initiatives are to be drawn up at the local level, the DOE issued Department Circular No. DC202004-000823. The primary objective of the policy is to provide additional fund sources for host LGUs in addressing COVID-19. It also stipulates that all available ER1-94 funds comprised of Electrification Funds (EF), Development and Livelihood Fund (DLF), Reforestation, Watershed Management, Health and/or Environment Enhancement Fund (RWMHEEF) that was administered and still with the DOE and the generating companies (last billing quarter of 2019) will be remitted to the host LGUs upon issuance of letter of intent for implementation of COVID-19 related projects. The DOE already disbursed 78.7% (PhP5.06 billion of the PhP6.4 billion) of available ER 1-94 funds to host communities and beneficiaries. Around PhP1.3 billion is still available that will need to be transferred and remitted to the host LGUs and concerned DUs. 23 Entitled, “Rationalizing the Utilization of Energy Regulation (ER) 1-94 Funds by the Host LGUs in Response to COVID- 19 Public Health Emergency” POWER DEVELOPMENT PLAN 2023-2050 41 === pdp-2023-2050-ch1-page-042.pdf === Table 21. Status of Reconciled Vs. Remitted Funds to Host Beneficiaries (as of Dec 2022) Fund Type Reconciled Available ER 1-94 Funds with DOE (Php Billion) Disbursed ER 1-94 Funds (Php Billion) Remaining ER 1-94 Funds (Php Billion) EF 3.436 2.422 1.012 DLF 1.474 1.304 0.170 RWMHEEF 1.516 1.328 0.187 Total 6.425 5.055 1.370 7.4 Indigenous People/Indigenous Cultural Communities The DOE has broadened the policy framework for the equitable, sustainable, and inclusive sharing of financial benefits under the ER 1-94 Program by including Indigenous Peoples and Indigenous Cultural Communities (IPs/ICCs) through Department Circular No. DC2018-03-000524 and has provided the mechanisms to undertake it via Administrative Operating Guidelines through Department Circular No. DC2019-06-001025. As of December 2022, the DOE has already enlisted 59 Host IPs/ICCs whose ancestral lands are host to 27 power generation facilities/energy resources that cover seven (7) regions, namely: Regions CAR, II, III, V, VI, XI, and XII. These DOE policies uphold the rights of indigenous peoples and give them access to financial benefits as provided through the power development projects within their ancestral lands. The DOE is in continuous coordination and collaboration with the National Commission on Indigenous Peoples (NCIP) of the necessary documentary requirements needed to allow for the direct remittance of financial benefits to the IPs/ICCs that host power generation facilities/energy resource development projects under the ER 1-94 (Benefits to Host Communities) Program. Through this, the host IPs/ICCs beneficiaries can immediately avail and utilize the financial benefits to augment or support their identified development projects within their Ancestral Domain as well as help support the DOE’s pursuit of energy selfsufficiency, power development, and total electrification without sacrificing the country’s ecological and cultural concerns. 24 Entitled, “Prescribing the Guidelines Recognizing the Rights of Indigenous Cultural Communities (ICCs)/Indigenous Peoples (IPs) in their Ancestral Domains and Access to the Financial Benefits as Host Communities under the ER 1-94 Program and Rule 29 (A) of the Implementing Rules and Regulations of Republic Act No. 9136, Otherwise Known as, "Electric Power Industry Reform Act of 2001" 25 Entitled. “Prescribing the Administrative Operating Guidelines for the Availment and Utilization of Financial Benefits by the Indigenous Cultural Communities/Indigenous Peoples pursuant to the DOE Department Circular No. DC201803-0005” POWER DEVELOPMENT PLAN 2023-2050 42 === pdp-2023-2050-ch1-page-043.pdf === 8. Overarching Policies and Program Implementation 8.1 EVOSS Additional Process Flows The passage of the EVOSS Act on 08 March 2019 paved the way for streamlining and expediting the permitting process for energy projects in the Philippines. From August 2020 to December 2022, the following endorsement and/or approval has been issued by the Electric Power Industry Management Bureau (EPIMB) to industry participants: Table 22. No. of Issued Endorsement of EPIMB No. of Issuances and Approval EVOSS Process Approval of TPBAC Process 28 Certificate of Endorsement for Point-toPoint Limited Transmission Facilities 2 Certificate of Endorsement to BOI 10 Certificate of Endorsement to ERC 563 Clearance to Undertake SIS 222 Direct Connection Application 11 Letter of Endorsement to BOI 2 Letter of Endorsement to NCIP 34 Letter of Endorsement to PNP 3 QTP Certificate of Endorsement to ERC Source: DOE - Investment Promotion Office 10 Envisioned to improve efficiency, reduce bureaucratic barriers, and encourage private-sector participation and investment in the energy sector, the DOE has added four (4) new processes as part of the DOE’s aim to enhance and integrate new processes in the EVOSS System. The EPIMB and Investment Promotion Office (IPO) conceptualized and developed these additional processes from 2021 to 2022 and will be further enhanced and integrated EVOSS online platform by the first quarter of 2023. The new additional processes (Figure 13) including their respective checklist of requirements may be accessed through the EVOSS website (https://www.evoss.ph). Generation • Letter of Endorsement to the Department of Agrarian Reform for Land Use Conversion1 • SIS Exemption for Power Projects under 20 MW for Luzon and 5MW for Visayas and Mindanao Transmission Total Electrification • Certificate of Endorsement Point-to-Point (P2P) Limited Transmission Facilities Process • Certificate of Endorsement to ERC for Microgrid Systems Provider Figure 13. EVOSS Additional Process Flow POWER DEVELOPMENT PLAN 2023-2050 43 === pdp-2023-2050-ch1-page-044.pdf === 9. Major Policies Issued Related to the Electric Power Industry From January 2021 to June 2023, the DOE has successfully promulgated significant laws and policies within the various power industry subsectors. In alignment with the DOE’s mission and the EPIMB’s mandate to supervise the electric power industry by ensuring an adequate, efficient, and reliable supply of electricity in the country, the DOE has issued sixty-five (65) policies covering the period. Table 23. Major Policy Issuances (January 2021 - June 2023) No Reference Number 1 DO2023-05-0015 2 DO2023-06-0018 3 DC2021-10-0031 4 DC2023-06-0021 5 DC2021-09-0030 6 DC2021-03-0003 7 DC2022-05-0014 8 DC2023-04-0006 9 DC2023-03-0005 10 DC2022-02-0001 Policy Title Generation (1) Enjoining the Energy Regulatory Commission (ERC) and Other Concerned Entities to Ensure Non-Discriminatory Treatment of Generating Facilities Utilizing Liquefied Natural Gas (LNG) in Accordance with their Respective Mandates Transmission and System Operation (2) Creating the Performance Assessment and Audit Team for the Operations of the Transmission Network Provider and System Operator (PAAT-TNPSO) and Providing for its Responsibilities Prescribing the Policy for the Transparent and Efficient Procurement of Ancillary Services by the System Operator Distribution (3) Prescribing the Policy for the Mandatory Conduct of the Competitive Selection Process by the Distribution Utilities for the Procurement of Power Supply for Their Captive Market Amending Certain Provisions of and Supplementing Department Circular No. DC2018-12-0003 on the Competitive Selection Process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market Prescribing the Policy and Guidelines for the Formulation of the Distribution Utilities Distribution Development Plan Integrating the Relevant Laws, Policy Issuances, Rules, and Regulations Supply (1) Amending Department Circular No. DC2020-01-0001 on Rules Governing the Review and Evaluation of Direct Connection Applications of Industrial, Commercial and Other Electricity End-Users Database Management System (3) Providing Supplemental Policy for the Systematic Management of the DOE Reportorial Requirements for the Electric Power Industry Participants-Retail Electricity Suppliers Providing Supplemental Policy for the Systematic Management of the DOE Reportorial Requirements for the Electric Power Industry Participants – Distribution Utilities Providing Policies for the Systematic Management of the DOE Reportorial Requirements for the Electric Power Industry Participants Electricity Market (47) Date of Issuance 23 May 2023 08 Jun 2023 04 Oct 2021 30 Jun 2023 24 Sept 2021 02 Mar 2021 10 May 2022 12 Apr 2023 14 Mar 2023 08 Feb 2022 POWER DEVELOPMENT PLAN 2023-2050 44 === pdp-2023-2050-ch1-page-045.pdf === No Reference Number 11 DC2023-06-0021 12 DC2023-04-0007 13 DC2023-01-0004 14 DC2023-01-0003 15 DC2023-01-0001 16 DC2022-12-0039 17 DC2022-12-0038 18 DC2022-11-0036 19 DC2022-11-0032 20 DC2022-06-0025 21 DC2022-06-0024 22 DC2022-06-0023 23 DC2022-06-0022 24 DC2022-06-0021 25 DC2022-05-0015 26 DC2022-03-0012 27 DC2022-03-0011 Policy Title Prescribing the Policy for the Mandatory Conduct of the Competitive Selection Process by the Distribution Utilities for the Procurement of Power Supply for Their Captive Market Amending Certain Provisions and Supplementing Department Circular No. Dc2022-06-0022 on the Application Process of New WESM Members Adopting Amendments to Wholesale Electricity Spot Market (WESM) Rules, Various Market Manuals and Promulgation of the Retail Manual on the Procedures for the Implementation of the Green Energy Option Program (GEOP) Adopting Further Amendments to the WESM Rules, WESM Manual and Retail Manual on Validation Timeline Adjustment in Metering and Billing Adopting Further Amendments to Various WESM Manuals for Improvements to Market Resource Modeling and Monitoring" Declaring the Commercial Operation of the Wholesale Electricity Spot Market (WESM) in the Mindanao Grid Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market Manual on The Guidelines Governing the Constitution of The Pem Board Committees Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on System Security and Reliability Guidelines (SSRG) and Dispatch Protocol for the Implementation of the Reserve Market Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals for the Implementation of Reserve Market Adopting further Amendments to the WESM Market Manual on Billing & Settlement (Provisions on Additional Compensation Process) Adopting Further Amendments to the WESM Rules and Market Manual on Constraint Violation Coefficient and Pricing Re-runs (CVC-PR) (Harmonization with the ERC Decision in ERC Case No. 2017-042 RC) Adopting General Amendments to the WESM Rules and Various Market Manuals on the Enhancement to the Market Operator and System Operator Procedures Adopting Further Amendments to the WESM Manual on Registration, Suspension, and De-Registration Criteria & Procedures (RSDCP) (General Enhancements to the Application Process of New WESM Members) Adopting Further Amendments to the WESM Rules and Market Manuals on Dispute Resolution Administration (DRA) Supplementing Department Circular No. DC2021-060013 on the Framework Governing the Test and Commissioning of Generation Facilities for Ensuring Readiness to Deliver Energy to the Grid or Distribution Network Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules, Retail Rules, and Market Manual (Provisions for Audit and Performance Monitoring) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and its Market Date of Issuance 30 Jun 2023 19 Apr 2023 31 Jan 2023 12 Jan 2023 11 Jan 2023 23 Dec 2022 21 Dec 2022 21 Nov 2022 07 Nov 2022 20 Jun 2022 20 Jun 2022 20 Jun 2022 20 Jun 2022 20 Jun 2022 20 May 2022 25 Mar 2022 22 Mar 2022 POWER DEVELOPMENT PLAN 2023-2050 45 === pdp-2023-2050-ch1-page-046.pdf === No Reference Number 28 DC2022-03-0010 29 DC2022-03-0009 30 DC2022-03-0003 31 DC2021-12-0041 32 DC2021-12-0040 33 DC2021-11-0038 34 DC2021-11-0037 35 DC2021-10-0033 36 DC2021-10-0034 37 DC2021-08-0026 38 DC2021-08-0025 39 DC2021-07-0024 40 DC2021-07-0022 41 DC2021-07-0021 Policy Title Manual on Information Disclosure and Confidentiality (Exceptions for Confidentiality Undertakings for DOE and ERC) Adopting Further Amendments to the Market Manual on Registration, Suspension and De-Registration Criteria and Procedures to Clarify Bilateral Contracts Accounted for in Settlements Adopting Further Amendments to the WESM Rules and WESM Registration Manual (Provisions for De-registration and Cessation of Registration) Adopting Further Amendments to the WESM Rules its Market Manual on Billing and Settlement for the Implementation of Enhancements to WESM Design Operations (Provisions for Prudential Requirements) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manual on WESM Compliance Officers (WCO) Certification and Registration Amending Certain Provisions of Annex "A" of Department Circular No. DC2021-06-0015 Entitled "Declaring the Commercial Operations of Enhanced Electricity Spot Market (WESM) Design and Providing Further Policies" Amending Certain Provisions of Department Circular No. DC2021-03-0007 entitled "Adopting Further Amendments to the WESM Rules and Market Manual on the Management of Net Settlement Surplus (Harmonization with ERC Resolution No. 07 Series of 2019)” Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Rationalization of Billing Timelines Repealing Section 3 of the DOE Department Circular No. DC2017-04-0006 Entitled "Adopting Further Amendments to the WESM Rules and Market Manuals" Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manual on the Procedures for Changes to the WESM Rules, Retail Rules and Market Manuals Adopting Further Amendments to The Wholesale Electricity Spot Market (WESM) Rules and Its Market Manuals for the Implementation of Enhancements to WESM Design and Operations (Provisions for Market Surveillance, Enforcement and Compliance) Providing Policies for the Adoption of the Wholesale Electricity Spot Market (WESM) Penalty Manual for the Implementation of Enhancements to WESM Design and Operations Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules for the Operation of the Renewable Energy Market Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market Manual on the Constraint Violation Coefficients and Pricing Re-runs Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on Metering for the Implementation of Enhancements to WESM Design and Operations (Provisions for Metering Services Provider Performance, Metering Standards and Site-Specific Loss Adjustments) Date of Issuance 17 Mar 2022 17 Mar 2022 01 Mar 2022 21-Dec2021 21-Dec2021 09-Nov2021 09-Nov2021 12-Oct2021 12-Oct2021 30-Jul-2021 30-Jul-2021 09-Jul-2021 25-Jun2021 25-Jun2021 POWER DEVELOPMENT PLAN 2023-2050 46 === pdp-2023-2050-ch1-page-047.pdf === No Reference Number 42 DC2021-06-0013 43 DC2021-06-0012 44 DC2021-03-0009 45 DC2021-03-0008 46 DC2021-03-0007 47 DC2021-03-0006 48 DC2021-03-0005 49 DC2021-03-0004 50 DC2021-02-0002 51 DC2021-05-0010 52 DC2020-10-0021 53 DC2020-10-0020 54 DC2020-10-0019 Policy Title Adopting a General Framework Governing the Test and Commissioning of New Generation Facilities for Ensuring Readiness to Deliver Energy to the Grid or Distribution Network Adopting Further Amendments to the WESM Rules, Retail Rules and Various Market Manuals for the implementation of Enhancements to WESM Design and Operations (Provisions to Promote Participation in the Retail Competition Adopting a General Framework Governing the Operationalization of the Reserve Market in the Wholesale Electricity Spot Market and Providing Further Policies to Supplement DC2019-12-0018 Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals for the Implementation of Policy and Framework Governing the Operations of Embedded Generators Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manuals on the Management of Net Settlement Surplus (Harmonization with the Energy Regulatory Commission Resolution No. 07, Series of 2019 Adopting Further Amendments to the Wholesale Electricity Spot (WESM) Market Manual on Dispatch Protocol for the Implementation of Enhancements to WESM Design and Operations (Provision for Must-Run Unit) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market Manual on Load Forecasting Methodology for the Implementation of Enhancements to WESM Design and Operations (Provisions for the Load Distribution Factors) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manual on Procedures for the Monitoring of Forecast Accuracy Standards for Must Dispatch Generating Units for the Implementation of Enhancements to WESM Design and Operations Adopting the Wholesale Electricity Spot Market (WESM) Industry Code of Ethics Adopting Further Amendments to the WESM Rules and Market Manual on Protocol for Central Scheduling and Dispatch of Energy and Contracted Reserves for the Effective Implementation of Enhanced WESM Design and Operations Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules (Provisions for the Implementation of Independent Market Operator) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Market Manual on Dispatch Protocol for the Implementation of Enhancements to WESM Design and Operations (Provisions for the WESM Timetable) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Manuals on Registration, Suspension and De-registration, and Market Network Model Development and Maintenance for the Implementation of Enhancements to WESM Design and Operations Date of Issuance 03-Jun2021 03-Jun2021 17-Mar2021 16-Mar2021 16-Mar2021 16-Mar2021 16-Mar2021 16-Mar2021 24-Feb2021 15-Dec2020 22-Oct2020 06-Oct2020 06-Oct2020 POWER DEVELOPMENT PLAN 2023-2050 47 === pdp-2023-2050-ch1-page-048.pdf === No Reference Number 55 DC2020-06-0014 56 DC2020-06-0013 57 DC2020-05-0011 58 Republic Act No. 11646 59 Executive Order 156 60 DO2023-04-0012 61 DC2022-05-0017 62 DO2022-02-0002 63 DC2022-05-0016 64 DC2021-11-0039 65 DC2023-04-0008 Policy Title (Provisions for the New Load Facility of a Registered WESM Member) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manual on Billing and Settlement for the Implementation of Enhancements to WESM Design and Operations (Provisions for Prudential Requirements) Adopting Further Amendments to the Wholesale Electricity Spot Market (WESM) Rules and Market Manual on Registration, Suspension and De-Registration Criteria and Procedures for the Implementation of Enhancements to WESM Design and the Implementation of Enhancements to WESM Design and Operations (Provisions for Registration of New Facility and Harmonization with Republic Act No. 11234 entitled "An Act Establishing the Energy Virtual One-Stop Shop") Supplementing Department Circular No. DC2019-120018 by Including the National Transmission Corporation in the Membership of the Ancillary Services - Technical Working Group Total Electrification (5) An Act Promoting the Use of Microgrid Systems to Accelerate the Total Electrification of Unserved and Underserved Areas Nationwide Instituting Measures to Ensure Consistent and Reliable Electricity Service in Inadequately Served Areas, Improve Performance of Ineffective Distribution Utilities, and Achieve Total Electrification of the Country Creation of the Special Bids and Awards Committee Pursuant to Sections 10 and 11 of Department Circular No. DC2022-05-0017 Rules and Regulations to Implement RA No. 11646 (MICROGRID SYSTEMS ACT) Implementing Framework of Executive Order No. 156 s. 2021 Off-Grid Development (2) Adopting and Integrating the Policies and Programs for the Graduation and Rationalization of the Universal Charge for Missionary Electrification Subsidy Pursuant to Department Circular No. Dc2019-01-0001 Mandating the National Transmission Corporation as Small Grid System Operator in Specific Off-Grid Areas Overarching Policies and Programs (1) Prescribing the Policy for Energy Storage System in the Electric Power Industry Date of Issuance 02-Jun2020 01-Jun2020 11-May2020 21 Jan 2022 9 Dec 2021 12 Apr 2023 24 May 2022 21 Feb 2022 24 May 2022 09 Nov 2021 20 Mar 2023 POWER DEVELOPMENT PLAN 2023-2050 48