=== pep-2023-2050-vol1-section-b-page-045.pdf === The Asian Development Bank (ADB) is also implementing its own ETM for the Mindanao Coal-fired Power Plant, which operates under a build-operate-transfer (BOT) arrangement. The ETM will finance the plant's retirement as early as 2026, five years before the BOT agreement ends. Alternative mechanisms such as transition credits are being explored to facilitate the early retirement of coal and gradually replace it with renewables. This involves ensuring the affordability of substitute energy and facilitating fair transitions for the affected workers and local community. Moreover, there is increasing awareness and interest from power industry stakeholders in Carbon Markets and Carbon Credits. A carbon market primarily operates as a trading system where carbon credits are bought and sold. This market can be used by companies and individuals to offset their GHG emissions by purchasing carbon credits from entities that remove or reduce GHG emissions.21 On the other hand, a carbon credit is generated by a project that has avoided or removed GHG emissions. Typically, a credit represents one (1) ton of carbon dioxide or its equivalent in the atmosphere. These projects often depend on the sale of carbon credits to sustain operations and undergo independent audits to verify the amount of carbon emissions avoided or reduced. Carbon credits also play a crucial role in facilitating finance for decarbonization projects, thus contributing significantly to the achievement of global climate goals.22 Energy Resiliency Financing Improving the resilience of energy infrastructure and facilities necessitates a strategic commitment to investing in adaptation and mitigation strategies. By utilizing diverse funding mechanisms like Public-Private Partnerships (PPPs) and innovative financing platforms, energy stakeholders and development partners can pool resources to build a robust and resilient energy sector. To facilitate investments in energy resiliency, the DOE is strengthening partnerships with other government agencies, development partners, and international funding institutions to explore viable international climate finance options. This entails accessing and leveraging resources from entities such as the Green Climate Fund (GCF), Global Environment Facility (GEF), Adaptation Fund (AF), Climate Technology Center and Network (CTCN), and the Loss and Damage Fund (LDF), among others. Such collaboration holds the potential to secure crucial funding streams that will greatly bolster efforts in fortifying the resilience of the energy sector against climate-related challenges. Another crucial innovative approach to mitigate the financial impacts of various hazards is the Disaster Risk Financing and Insurance (DRFI). The DRFI does not only protect energy infrastructure and systems from potential disruptions but also mitigates the impact on consumer rates. The DOE is poised to establish mechanisms and guidelines to further improve DRFI practices within the energy sector. These will guarantee accessible funding sources essential for fostering resilience, including safeguards to prevent any potential misuse or abuse of such financial resources. 21 22 Source: https://climatepromise.undp.org/news-and-stories/what-are-carbon-markets-and-why-are-they-important Source: https://www.climateimpact.com/services-projects/carbon-credits-explained-what-they-are-and-how-they-work/ Vo l u m e 1 36 === pep-2023-2050-vol1-section-b-page-046.pdf === IV. CONSUMER EMPOWERMENT Consumers form part of the energy system’s entirety since utilization is determined and driven by the end-users. The DOE acknowledges that a “well-informed consumer is the best-protected consumer” because his or her decisions are made based on the value of information that enables empowerment and protection. As energy transition is visualized in the country’s planning horizon, important consumer decisions are made depending on the various energy options presented. These informed choices reinforce the envisioned meaningful and gradual shift to sustainable and reliable use of energy resources in meeting the required demand. The DOE, in its formulation of policies, plans, and programs toward a low-carbon and sustainable future, always prioritizes the well-being of consumers. This affirms President Marcos Jr. Administration’s goal of a better quality of life for Filipinos and that no one is left behind. As consumers increasingly become a fundamental part of how energy policies are shaped, it is forward-looking for the government to continuously advance its role in the energy landscape. The twofold strategy to be undertaken in the midto long-term to bring more value to consumers are: a) clearly distinguish the areas in the country without access to affordable energy and needing developmental supports, and b) rationalize subsidies for electrification that continuously impact the general consumers as part of their electricity bill. Attending to these within the planning horizon creates a facilitative environment wherein consumers will be more attuned to their energy needs and choices. Energy Efficiency and Conservation " As we pursue the path of sustainable development, it is important that we develop a keen awareness of our energy consumption. With everyone’s help, we can build more sustainable and reliant future for us and for the generations that will follow.. - President Ferdinand R. Marcos Jr. 37 The implementation of the EEC programs directly affects every Filipino as a consumer. Before the passage of RA 11285 or the Energy Efficiency and Conservation Act of 2019, the DOE has been steadily promoting the efficient use of energy to instill in the behavior of Filipinos and to contribute to the lowering and softening of the impact of electricity costs. Philippine Energy Labeling Program (PELP). The guidelines for all energyconsuming product (ECP) manufacturers, importers, distributors, and dealers were issued pursuant to DC2020-06-0015. The enhanced program made it easier for consumers to compare the efficiency of ECPs through the energy labels, which contain information on the energy efficiency rating (including a star rating), estimated monthly energy consumption, and an embedded quick response (QR) code for the end user’s reference. Stakeholder Engagements. Mindful of both the public and private sectors’ role in accelerating and sustaining EEC as a way of life, the IEC campaigns on EEC policies, programs, and best practices intensified the promotion and launching of “You Have the Power.” The campaign is the DOE’s response to the President’s call to strengthen EEC efforts to help manage the growing energy demands of the country. It basically encourages Filipinos to have an energy-efficient lifestyle and instills the shared responsibility principle for the environment. The program also includes active engagement of the DOE in the various social media platforms to send and communicate the message of EEC’s importance. Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-047.pdf === Renewable Energy Sector Since the enactment of the Renewable Energy Act of 2008, the government advocated for the aggressive development of the country’s RE resources. Following the strategic objective of transitioning to clean, sustainable, and climate-centered energy resources, the DOE issued policy mechanisms with consideration of the welfare of consumers and the future generations to come. The Renewable Portfolio Standards (RPS) mandates power distribution utilities, generation companies with directly connected customers, and retail electricity suppliers to source an agreed portion of their energy supply from RPSeligible facilities, which include biomass, solar, run-of-river and impounding hydroelectric power systems, ocean, and wind, among others. The policy effectively mobilizes the entire energy sector towards the country’s elusive attainment for energy independence. In support of this policy, two Department Circulars (DCs) were issued – DC2022-09-0030, which increased the minimum RPS annual percentage increment from 1.0 to 2.52 percent for grid-connected areas beginning 2023, and DC2023-050014 that promulgated the revised rules and guidelines governing the operationalization of the RPS for off-grid areas pursuant to Section 12 of the RE Act. On the other hand, under the Net-Metering Program (NMP), residential or house owners and commercial establishments are allowed to install solar photovoltaic (PV) panels of up to 100 kilowatts (kW) RE for own-use and sell unused electricity generated to the grid. In 2022, the “Guidebook on Net Metering” was published providing the guidelines, standards, and procedures for all net-metering arrangements from offer to after-sales services by installers and practitioners. The Green Energy Option Program (GEOP) is another policy wherein consumers with 100 kW and above demand can also obtain electricity supply from RE suppliers. In September 2023, a total of 263 customers have already switched to GEOP, which translates to 87 MW (non-coincidental peak demand). Power Sector The DOE is focusing its efforts to support the Administration’s socio-economic agenda that includes reducing energy cost to families and ensuring energy security for the country. Lifeline Rate Implementation. As one of the measures to soften the burden of electricity prices to consumers particularly Filipino households, the government is mindful in maximizing the impact of the lifeline rate availment through the following: a) designing a better subsidy targeting scheme to reach the poorest of the poor; and b) improving the identification of beneficiaries which need it the most. Vo l u m e 1 38 === pep-2023-2050-vol1-section-b-page-048.pdf === Over the course of the Marcos Jr. Administration, the government is committed to refining the policy approach in delivering the subsidy to the targeted beneficiaries and entitled consumers in the disadvantaged or marginalized sectors. The passage of RA 1155223 on 27 May 2021 further extends the lifeline rate implementation until 2051 and is seen to benefit qualified lifeline customers in the next three decades. As a mechanism designed to benefit low-income consumers, the lifeline rate is a subsidized rate given to the said consumers who are unable to pay their electricity bills at full cost. Qualifying for the program entails end-users to meet the criteria set in the law which are: a) beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps);24 and, b) customers considered to be living below the poverty threshold set by the Philippine Statistics Authority (PSA). A Tripartite Advisory from the ERC, DOE, and the Department of Social Welfare and Development (DSWD) was issued on 13 June 2023 in reference to the implementation of RA 11552’s Implementing Rules and Regulations (IRR) and with the release of lists of 4Ps beneficiaries to the DUs. The advisory reminded the DUs to: a) immediately implement the disqualification of those who are not eligible to avail of the lifeline rate as provided under Rule 6, Section 6 of the Lifeline IRR; and b) commence the acceptance and processing of applications from their consumers seeking to avail the lifeline rate program, as well as complete the processing of the applications on or before 1 August 2023. It also stated that starting August 2023, only those who have approved applications shall be entitled to avail of the lifeline rate program. It also revised the Certification and Application Form templates. To beef up program registration, the DOE through a press release on 21 July 202325 and 31 July 202326 reiterated to qualified beneficiaries nationwide under the 4Ps list by the DSWD to register with their DUs to continue availing of the discount for lifeline consumers. The reduction in electricity bills of lifeline rate beneficiaries varies depending on the prevailing rates of DUs or ECs in the country. The discount extended also differs based on the monthly consumption threshold level. In the case of consumers under the MERALCO franchise area, lifeline end-users with up to 20 kilowatt-hours (kWh) of monthly consumption are granted 100 percent discount on the generation charges including systems loss, transmission, and distribution components of the bill except for the fixed metering charge of PhP 5.00. Given these, the lifeline end-users will only shell out more or less PhP 20.00 in their electricity bills. It is important for qualified customers to avail lifeline rate through MERALCO as non-registration means that these customers are likely to pay more or less PhP 250.00 (within the 20-kWh threshold). To further encourage beneficiaries to register, another tripartite advisory was issued on 1 August 2023, which moved the full implementation of the lifeline from August to September 2023.27 A noticeable increase in the qualified marginalized end-users (QMEs) have registered under the program. However, there remained a substantial number of QMEs who have yet availed the benefits under the lifeline rate program. In response, a Tripartite Advisory was issued again on 1 September 2023 stating the full implementation of the lifeline rate program by 1 January 2024 to allow for an aggressive promotion and registration. Moreover, it specified that those with approved applications shall only be entitled to avail of the subsidy under the Lifeline Rate Program.28 As of 15 December 2023, the number of registered consumers already reached 191,399 out of the 4.2 million 4Ps beneficiaries. RA 11552 or “An Act Extending and Enhancing the Implementation of the Lifeline Rate, amending for the Purpose Section 73 of RA 9136, otherwise known as the Electric Power Industry Reform Act of 2001, as Amended by RA 10150.” RA 11310 or “An Act Institutionalizing the Pantawid Pamilyang Pilipino Program (4Ps)” signed by then President Rodrigo R. Duterte on 27 May 2021.\ 25 Source: https://www.doe.gov.ph/press-releases/department-energy-doe-reminds-all-electricity-consumers-nationwide-who-are-list 26 Source: https://www.doe.gov.ph/press-releases/doe-urges-4ps-beneficiaries-avail-government-electricity-lifeline-program 27 Source: https://www.doe.gov.ph/announcements/tripartite-advisory-full-implementation-lifeline-irr-01-august-2023 28 Source: https://www.doe.gov.ph/announcements/tripartite-advisory-lifeline-irr 23 24 39 Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-049.pdf === Graduation and rationalization of the Universal Charge for Missionary Electrification (UC-ME) subsidy. The existing UC-ME subsidy policy adopts a uniform pricing, providing the same level of subsidy to all consumer types in off-grid areas. However, this universal levy places a financial strain even on poor households within the main grid as they also contribute to subsidizing off-grid consumers. To alleviate this financial burden on consumers, the government is undertaking efforts to graduate from and rationalize the UC-ME subsidy. Graduating from the UC-ME subsidy will involve interconnecting major island grids to the main grid, while rationalization necessitates the establishment of a new, well-targeted, and efficient subsidy policy through customer classification in missionary areas. Rationalization emphasizes the need for efficient targeting of poor and eligible electricity consumers, as well as a thorough assessment of the potential removal of automatic subsidies for commercial and industrial customers in off-grid areas. This approach aims to promote fairness and social equity by ensuring that the subsidy serves its intended purpose without disproportionately affecting certain demographics or hindering economic development. Competitive Selection Process Policy. The CSP policy institutes the least-cost principle in the power supply contracting of the DUs/ECs. Enhancements in the policy led to the issuance of the DC2023-06-002129 and DC2022-06-002730 in June 2023 and June 2022, respectively. The former further streamlined the CSP procedure by defining the individual roles and responsibilities of the DOE, ERC, and NEA in the review of and approval of the DUs power supply aggrement (PSA) applications. The latter contained the guidelines for the accreditation of a Third-Party Auctioneer (TPA). Energy Regulations 1-94. The ER 1-94 is a profit-sharing mechanism for the benefit of host communities to support their electrification, development and livelihood programs, reforestation, watershed management, health and environmental enhancement projects. It allocates one centavo per kWh sale to the local government units (LGUs), DUs, and indigenous cultural communities/indigenous people (ICCs/IPs). The DOE, knowing the full benefits to be derived from ER 1-94, is closely working with all stakeholders including the host communities and ICCs/IPs to maximize the utilization of their equitable share or resources to assist in their identified and emerging needs. Regulatory Initiatives for Consumers. Given the importance of power supply contracting and its impact on the rates passed on to consumers, the ERC initiated consumer-centered efforts, such as the PSA Caravan, Anti-Bill Shock Program, and suspension of feed-in tariff allowance (FIT-ALL) collection. ͟ PSA Caravan - A joint effort between the ERC and DOE that aimed to assist the DUs in rationalizing and optimizing their power supply. The objective is to ensure that power supply contracts entered by the DUs are adherent to the least-cost principle as this will eventually benefit and provide relief to consumers. The caravan also involved reviewing the PSAs of the DUs. The next step is rolling it out to cover off-grid areas and to assist the ECs. ͟ Suspension of FIT-All Collection - The initial implementation on the deferment of the FIT-All collection covered a period of three months (December 2022 – February 2023). The ERC extended it for another six (6) months covering March to August 2023. Relatedly, in the ERC's Resolution in August 2023, the suspension was extended starting September 2023 until otherwise lifted by the Commission in the event that the FIT-All Fund available shall be deemed insufficient to cover the monthly fund requirements. ͟ Anti-Bill Shock Loan Program - In April 2023, the ERC and Land Bank of the Philippines (LBP) launched the program to protect consumers from unforeseen increases in their electricity bills. The program implementation is undertaken by the DUs wherein staggered billing is applied, which provides flexibility to consumers in instances of electricity price hikes. This will effectively manage obligations and lessen the impact of bill shocks. The loan facility is deemed to be used by the DUs to fulfill their contractual obligations with power generation companies and suppliers. 29 30 “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” issued on 30 June 2023 “Providing the Guidelines for the Accreditation of Third-Party Auctioneer Pursuant to Section 5 of Department Circular No. DC2021-09-0030” issued on 20 June 2022 Vo l u m e 1 40 === pep-2023-2050-vol1-section-b-page-050.pdf === Downstream Oil Industry As an oil-importing country, the fluctuations in oil prices on the global market impact consumers. Petroleum products are fundamental commodities that are heavily utilized in both residential/households and transportation sectors. The DOE, as part of its mandate, ensures continuous supply and unimpeded access to petroleum products with the utmost consideration to public safety and product quality. The development of the Philippine National Standards (PNS) for petroleum products and facilities are guarantees of promoting consumer welfare and protection. These standards ensure that consumers, the public transport sector, and manufacturers served by the downstream oil sector are provided access to products and facilities with the highest quality and safety. Likewise, the PNS guarantees the Philippines’ compliance to global harmonization and maintains adherence to international trends on economic growth, as well as environmental protection. The DOE, apart from standards formulation, also monitors the industry through sampling of liquid petroleum products in terminals/depots and other facilities nationwide. Following the passage of RA 11592 or the LPG Industry Regulation Act of 2021, the DOE strictly monitors the domestic LPG industry and safeguards consumers against malpractices. In 2022, the DOE together with the Department of Trade and Industry (DTI) issued Joint Department Circular (JDC) 2022-11-0002 on the LPG Cylinder Exchange, Swapping, and Improvement Programs. The Circular aims to ensure that only safe cylinders are circulated among the consuming public to prevent the occurrence of LPG-related accidents. To further empower consumers, the DOE’s communication initiatives employed through the IEC campaign intend to improve public awareness, address knowledge gaps, and change consumer behaviors in the downstream oil industry. 41 Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-051.pdf === V. PROMOTING THE NATIONAL INTEREST WITH THE INTERNATIONAL COMMUNITY The Philippines aligns its targets with the goals of the international community in veering away from conventional fuels and moving towards renewables and other sustainable energy solutions. While fossil fuels still play a significant role in most countries, including the Philippines, due to economic, political, and social factors, the country aims to achieve a lowcarbon economy. Hence, it complements its fossil fuel-based energy resources with cleaner alternatives to reduce carbon emissions across all sectors in its nationally driven energy transition. To enable this, substantial resources are required to implement transformative and inclusive solutions for an affordable, reliable, secure, resilient, climate-centered, and sustainable energy industry. To mitigate the burden of transferring the cost of transition to the Filipino people, the country recalibrated policies and programs to attract foreign and local investors. The Philippines engages in international partnerships and agreements to support its transition strategy and core energy diplomacy. Priority areas include mobilizing transition financing, accessing technology and capacity for improving transmission and distribution networks, enhancing energy system resilience and infrastructure, prioritizing RE projects, implementing EEC measures, promoting the critical minerals mining for low-carbon technologies, and pursuing R&D for emerging technologies. The DOE’s initiatives are also aligned with regional and international work plans, including those in ASEAN. These plans guide the implementation of various activities in collaboration with the regional and international community. Further, the country’s linkage with the international community features how the DOE addresses emerging issues and cross-sectoral concerns related to energy security, transition, and resilience at the regional and international levels. It also highlights the development partners (DPs) and international organizations (IOs) providing or offering financial and technical assistance for energy projects, further supporting the Philippines' energy initiatives. Through the years, the DOE has received support from these DPs and IOs that are geared towards the global movement on energy transition. The DOE remains optimistic in strengthening the linkages to pave the way for a cleaner, more resilient, and sustainable energy system in the country. More importantly, the DOE directs its policies to respond to the needs of the international community under the principle of mutual benefit. VI. FOSTERING PARTNERSHIP WITH BARMM Sustaining Peace, Security and Development for Bangsamoro Autonomous Region of Muslim Mindanao (BARMM) The National Government is firm on its commitment to working closely with the Bangsamoro Government to facilitate the comprehensive development of the region, benefiting both the Bangsamoro people and the entire Mindanao region, and thereby, the whole country. The strong collaborative efforts between DOE and the Ministry of Environment, Natural Resources and Energy (MENRE) are evident on the issuance of a Joint Circular on energy exploration and development. This partnership will continue to advance, enabling the region to effectively harness its energy resources and attract much-needed investments. BARMM's specific energy needs are addressed through constant dialogues and consultations, solidifying the region's integration into national energy strategies and initiatives. This cooperation not only advances the region's economic prospects but also contributes to broader national energy security and self-sufficiency objectives, while fostering peace and stability in the region. Vo l u m e 1 42 === pep-2023-2050-vol1-section-b-page-052.pdf === Establishment of the Intergovernmental Energy Board The BARMM was established by virtue of RA 11054 or the Bangsamoro Organic Law (BOL), which was signed into law on 26 July 2018. Article VI of the BOL established the Intergovernmental Relations Body (IGRB) with the primary mandate to coordinate and resolve issues on intergovernmental relations through regular consultation and continuing negotiation. The IGRB has activated mechanisms to facilitate cooperation and collaboration between the National Government and BARMM, including the Intergovernmental Energy Board (IEB). The IEB is tasked with resolving all matters specified in Section 36, Article XIII of the BOL and other energy issues referred to by the IGRB. It was established in October 2020 whose members and representatives are composed of officials from the Bangsamoro Government and the National Government (Figure 18). The Board is headed by the Secretary of Energy as Co-Chairperson for the National Government and the Minister of Environment, Natural Resources, and Energy as Co-Chairperson for the Bangsamoro Government. The Board is mandated to assist the Bangsamoro Government in building a strong foundation in the regulation of engagements of the energy industry. The implementation of this intergovernmental relations mechanism is governed by the Terms of Reference (TOR) approved and signed by the parties which provided functions/ mandates and composition of IEB. " The IEB has created technical working groups (TWGs) to cater to the different areas of energy pursuant to Department Orders DO2022-07-0010 and DO2023-05-0013. The eight (8) TWGs that will address the current and emerging issues of the energy sector are: (1) Upstream Conventional Energy Resource Development (UCERDTWG); (2) Power and Electrification (PE-TWG; (3) Energy Planning (EP-TWG); (4) Renewable Energy Development and Utilization (REDUTWG); (5) Downstream Oil and Gas (DOG-TWG); (6) Energy Investment Regulations and Processes (EIRP-TWG); (7) Energy Efficiency and Conservation (EEC-TWG); and (8) Small-scale Coal Mining Resource Development (SSCMI-TWG). Figure 18. Intergovernmental Energy Board Composition 43 Philippine Energy Plan We will usher in a new era where BARMM becomes a shining beacon of sustainable development in Mindanao and the rest of the Philippines. - President Ferdinand R. Marcos Jr. 1st BARMM LEGISLATIVE GENERAL ASSEMBLY === pep-2023-2050-vol1-section-b-page-053.pdf === The TWGs are mandated to provide technical assistance and policy recommendations to the IEB for the effective implementation of the BOL, specifically: 1. UCERD-TWG – joint exercise of power to grant rights, privileges, and concessions over the exploration, development, and utilization of uranium and fossil fuels such as petroleum, natural gas, and coal (excluding those that pertain to the small-scale mining industry) in the territorial jurisdiction of the Bangsamoro pursuant to Section 10, Article XIII of the BOL. 2. PE-TWG – (1) transfer of powers, functions, and responsibilities of the DOE-EPIMB to their counterpart in the MENRE, subject to limitations but with full consideration of the provisions of the BOL; (2) privatization of Agus-Pulangi Hydropower Complex and resolution of power issues; (3) transfer management of the ECs in BARMM jurisdiction; (4) management of electricity supply from Independent Power Producers (IPPs) and WESM Mindanao; and (5) other related issues and concerns. 3. EP-TWG – preparation of the energy plan and sharing, updating, and maintenance of socioeconomic indicators and energy database. 4. REDU-TWG – (1) transfer of powers, functions, and responsibilities of the DOE REMB pursuant to Section 32 of the Renewable Energy Act RA 9513 to its counterpart in the Bangsamoro Government; (2) enforcement and administration of Section 31 of the RE Act; (3) issuance of RE contracts and operating contracts for the exclusive right to explore and develop a particular area; and (4) implementation and enforcement of the RE Policy Mechanisms pursuant to the RE Act such as the Renewable Portfolio Standards (RPS), Green Energy Auction Program (GEAP), and Green Energy Option Program (GEOP), among others. 5. DOG-TWG – implementation and supervision of the non-pricing aspect of the Downstream Oil Industry Deregulation Act (RA 8479) pursuant to Section 2 (o) of the IEB TOR 6. EIRP-TWG – promotion of energy investments in the Bangsamoro region pursuant to Section 2 (d) of the BOL, particularly to identify policies to assist the Bangsamoro Government in the promotion of investments in energy and power generation sectors, both domestic and international, and in the implementation of the “EVOSS Act” (RA 11234). 7. EEC-TWG – implementation of the Energy Efficiency and Conservation Act, institutionalizing conservation, enhancing the efficient use of energy, and granting incentives to EEC projects. 8. SSCMI-TWG – joint exercise of the power to grant rights, privileges, and concessions over the exploration, development, and utilization of small-scale coal mining industry in the territorial jurisdiction of the Bangsamoro pursuant to Section 10 Article XIII of the BOL. " The successful establishment of this IEB Circular holds immense potential. It will not only contribute to the energy security of the country but also unlock vast opportunities for ergonomic growth in the Bangsamoro Autonomous Region", - Secretary Raphael P.M. Lotilla www.doe.gov.ph Facilitating Energy Development within BARMM The concerted efforts of the DOE and MENRE illustrate the push for regional energy development that is viewed to significantly contribute to the improvement of energy supply and attainment of economic prosperity. Achieving these objectives requires advancing the components of the entire energy spectrum within the region. Vo l u m e 1 44 === pep-2023-2050-vol1-section-b-page-054.pdf === The signing of Joint Award of Petroleum Service Contract and Coal Operating Contracts in the BARMM Upstream and Conventional Energy Resources. The signing and issuance of the IEB Circular on the Joint Award of PSCs and Coal Operating Contracts (COCs) in BARMM witnessed by the President in Malacañang Palace on 06 July 2023 serves as a catalyst to further the sector’s growth as well as attract foreign investments in the region. The IEB Circular operationalizes the provision in Section 10, Article XIII of RA 11054 to jointly grant rights, privileges, and concessions for the exploration, development, and utilization of uranium and fossil fuels such as petroleum, natural gas, and coal within the territorial jurisdiction of the Bangsamoro. Once implemented, it will kickstart the application process for PSCs and COCs in BARMM. The framework also outlines the requisite requirements, procedures, and standards for companies seeking to apply for and operate PSCs and COCs and ensure that exploration and development activities will adhere to stringent rules and regulations, and best practices. Correspondingly, a Joint Review and Evaluation Committee (Joint REC) was created in accordance with Section 2 of the approved IEB Circular. The Joint REC is supported by the Joint REC-TWG and Joint REC Secretariat. The REC-TWG is currently finalizing the draft Model Contract and Accounting procedures for the Joint Award of PSCs and COCs. On 26 February 2024, the 1st BARMM Conventional Energy Bid Round was launched, a testament of the National Government’s commitment to help the Bangsamoro Government in its transition towards sustainable development. Renewable Energy Sources. Harnessing the potential of renewable-based resources is a major priority in the BARMM’s energy agenda. In maximizing these resources, the DOE is working with the Bangsamoro Government in pursuing clean and sustainable energy. Even prior to the enactment of BOL, several RE Service Contracts (RESCs) including hydro, solar, and biomass were awarded in BARMM. Two major hydro plants (Agus I and II) are located within the BARMM jurisdiction, and there are opportunities to tap other RE technologies. Power and Electrification. In Mindanao, BARMM has the lowest household electrification level at 43.1 percent (as of December 2023). Therefore, one of the priority areas of the National Government is to assist the Bangsamoro Government in expanding electricity access to areas that are still unserved and underserved. Under the National Total Electrification Roadmap (NTER), various electrification strategies are to be employed from 2023-2028 to achieve the 100 percent household electrification level in BARMM. Renewable will play a central role in this endeavor as it offers a pragmatic solution in bringing electricity to remote communities that are often difficult to connect to the main grid, through the use of standalone and microgrid systems. 45 Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-055.pdf === This approach aligns with the government's objective of achieving total electrification, while promoting sustainability and resilience in BARMM. The government through NEA continues to assist the Bangsamoro Government in improving the services of DUs in the area, as well as in promoting international interest to further mobilize technical and financial assistance to the region on energy and power. Additionally, to capacitate MENRE in its future responsibility over the power sector, the DOE and its attached agencies provided an orientation covering the issuance of clearance to undertake the System Impact Study (SIS), Certificate of Endorsement to the ERC, and on EVOSS. The planned next steps are to provide hands-on training to MENRE on the processes, and orientation on the total electrification roadmap including the relevant data collection process and sharing. Leveraging international cooperation, the DOE and MENRE are collaborating to attract development assistance and investments to address challenges in the energy sector in BARMM, particularly the required infrastructure to improve energy security and expand electricity access. Downstream Oil. Ensuring supply security requires having the downstream oil-related facilities (e.g., depot/storage facility, liquid fuel retail outlets or LFROs, etc.) in place to complement the region’s day-to- day activities. BARMM’s storage capacity of 22.41 thousand barrels (MB) accounts for 0.4 percent of Mindanao’s total storage capacity of 5,735.76 MB in 2022. In terms of sales for the same period, the region recorded 669.01 MB, or roughly 2.7 percent of Mindanao’s total sales of 25,075.94 MB. On the distribution of petroleum products within the region, there are 19 operating LFROs comprised primarily of major and independent players in the market. To advance downstream oil and natural gas development, the DOE extended assistance to MENRE (through orientation) by expounding on the various policies governing the industry, which include: a) revised Philippine Downstream Natural Gas Regulation (PDNGR); b) Liquid Petroleum Products (LPP) Industry Rules; and c) inspection manuals for LPG, LPP, and downstream natural gas. Moving forward, MENRE and DOE are targeting 2025 for the review and adoption of PDNGR and LPP Industry Rules and Inspection Manual for BARMM. Plans are also underway to establish a technical committee on standards and facilitate the turnover of the DOE’s functions to MENRE. Vo l u m e 1 46 === pep-2023-2050-vol1-section-b-page-056.pdf === CHAPTER I Energy Situationer A. TOTAL FINAL ENERGY CONSUMPTION (TFEC) Major economic sectors such as transport, residential and industry registered increments in their energy utilization during the year (Figure 19). The transport sector’s energy use remained on the uptrend with a 12.2 percent hike in 2022 as all transport operations Figure 19. Changes in Energy Consumption, by Sector (kTOE), 2022 2000 131.6 1800 1,341.4 1600 ↑ 1.3% ↑ 12.2% 1400 inkTOE The Philippine economy exceeded the government targets with a 7.6 percent expansion in 2022 – the fastest recorded in more than four (4) decades31 driven by the removal of remaining restrictions on mobility and business activities. Despite a stellar economic performance, the country’s TFEC32 grew moderately by 2.4 percent to 35.9 million tons of oil equivalent (MTOE) from its 2021 level of 35.0 MTOE. ↓ 8.2% -396.4 1200 ↓ 32.0% -177.8 1000 ↓ 21.5% 830.7 800 -353.4 ↑ 2.4% 600 400 200 ↑ 4.2% Industry Transport Households Services Agriculture Non-energy Use Total returned to their full capacity. It contributed a bulk share of 34.4 percent to the TFEC (Figure 20). Household energy demand at 28.8 percent share to the TFEC slightly increased by 1.3 percent due to the resumption of onsite reporting for the majority of the country’s workforce, including academic institutions. The energy utilized for industrial purposes, with a share of 19.8 percent, went up by 4.2 percent buoyed by the manufacturing sector’s sustained post-pandemic recovery. On the other hand, the services sector’s energy consumption fell by 8.2 percent because of the decline in diesel demand. The agriculture sector’s energy use decreased by 32.0 percent as weakened agriculture activities led to contractions in its electricity and diesel consumption during the period. Energy products, particularly naphtha and other petroleum products that are used as raw materials and feedstocks in various industrial processes, plummeted by 21.5 percent in 2022. Figure 20. Sectoral Shares to TFEC (Percent), 2022 34.4% 28.8% Total: 35.9 MTOE 19.8% 12.4% 3.6% 1.1% Industry 31 Transport Services Agriculture Non-energy Use https://www.dof.gov.ph/ph-economy-grows-by-7-6-in-2022-surpasses-dbcc-target/ TFEC is the total energy consumed by the end-users such as households, industry, transport, services, and agriculture. Final energy is those that consumers purchase or receive such as electricity, and petroleum products (i.e. gasoline, diesel, kerosene, etc.). These are energy products and fuels that are converted from the primary energy form, i.e., fuels and energy source (RE) to electricity, crude oil to petroleum products., which incur losses during the conversion process due to their thermal efficiencies. These losses make the difference between TPES and TFEC. For further details, see pp. 23-25 of the Overview for the process flow of energy forms. 32 47 Households Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-057.pdf === I. Total Final Energy Consumption, By Fuel Figure 21. Changes in Energy Consumption, by Fuel (kTOE), 2022 inkTOE ↓ 32.0% 1200 59.8 336.6 1000 ↑ 0.8% ↓ 21.5% ↑ 4.5.2% 800 600 604.8 ↑ 3.4% ↓ 10.0% -216.1 46.0 ↑ 8.7% ↓ 100.0% 830.7 ↑ 2.4% -0.3 400 200 Industry Transport Households Services Agriculture Non-energy Use Total Electricity maintained its position as the second mostconsumed fuel in 2022. It contributed a 21.9 percent share to TFEC (Figure 22), as demand levels posted an increase of 4.5 percent to 7.9 MTOE in 2022 from its 7.5 MTOE level in 2021. As business services and establishments reverted to their pre-pandemic operational capacities, electricity consumption in the services sector increased the fastest at 15.0 percent in 2022. The easing of travel restrictions also contributed to the 9.3 percent increase in the transport sector’s electricity demand. The industry and household sectors, with a combined share of 70.3 percent to total Vo l u m e 1 The country’s continued reliance on oil and petroleum products was evident as their aggregate levels reached 18.3 MTOE or 50.9 percent of the TFEC in 2022, an increase of 3.4 percent from 17.7 MTOE in 2021 (Figure 21). Gasoline and diesel, with a combined share of 75.4 percent of total oil consumption, remained the most used oil products. Gasoline consumption accelerated by 10.1 percent vis-à-vis diesel’s gradual growth of 0.4 percent growth as domestic pump prices of the former became relatively cheaper compared to the latter during the year. Meanwhile, the resurgence of domestic tourism pushed the utilization of aviation fuels to a double digit hike of 76.6 percent during the same period. Figure 22. Fuel Shares to TFEC (Percent), 2022 5.4% Coal 1.6% Biofuel Total: 35.9 MTOE 20.1% Biomass 50.9% Petroleum 21.9% Electricity 48 === pep-2023-2050-vol1-section-b-page-058.pdf === electricity consumption, registered increments of 4.4 percent and 1.0 percent, respectively. However, electricity use in the agriculture sector declined by 23.3 percent in 2022. Increased preference for the use of modern equipment and appliances contributed to the waning popularity of biomass (fuelwood, charcoal and other biomass residues) for end-use applications. Its utilization slightly increased by 0.8 percent to 7.22 MTOE in 2022, from its 2021 level of 7.16 MTOE. Household consumption of biomass posted a modest growth of 1.0 percent, albeit an 82.6 percent share of total biomass demand in 2022. Demand for biomass as fuel in the food manufacturing industry and service establishments registered minimal growth of less than 1.0 percent each. Coal consumption declined by 10.0 percent to 1.9 MTOE in 2022 vis-à-vis its year-ago level of 2.2 MTOE. It contributed a 5.4 percent share to TFEC during the same year. Reduction in coal utilization was reported in the basic metal and other chemicals industry due to rising coal import prices in 2022, as well as the shift towards diesel and electricity as primary fuels in their production processes. Biofuels consumption (biodiesel and bioethanol) grew at 8.7 percent to 575.2 kTOE in 2022 from its year-ago level of 529.3 attributed to the strict compliance with the blending schedule mandated under the Biofuels Law, coupled with the effective campaign of the government to use cleaner and alternative fuels. II. Total Final Energy Consumption, By Sector 1. Transport The lifting of stringent mobility restrictions served as a major catalyst for the 12.2 percent upsurge in the transport sector’s energy consumption in 2022. Figure 23. Transport Demand, by Sub-sector Shares (Percent), 2022 89.5% Energy consumption for road transport accelerated by 11.0 percent in 2022 from its year-ago level of 9.9 MTOE and maintained its substantial share of total transport demand at 89.5 percent (Figure 23). Domestic maritime traffic improved further in 2022 with the resumption of tourism, trade, and regular travel activities. Consistent with these gains, energy demand for in-land water transport in 2022 went up to 940.0 kTOE, or 11.7 percent higher than its 841.9 kTOE level in the previous year. 7.6% 2.8% Total Demand: 12.3 MTOE Road Rail Water 0.1% Domestic Air Domestic aviation’s astounding performance brought about a 76.6 percent increment in its energy consumption from last year’s 194.1 kTOE level to 342.9 kTOE in 2022. Major airlines likewise brought back fare promotions that supported the comeback of the domestic tourism industry and contributed to the four-fold increase in air passenger movement based on the data from the Civil Aeronautics Board (CAB).33 The massive rehabilitation of the Metro Rail Transit (MRT) 3 significantly improved its operations in 2022, as the rail lines ran at full capacity. As such, the aggregate energy consumption increased by 10.0 percent and reached 11.2 kTOE in 2022 vis-à-vis 10.1 kTOE in the previous year. 33 49 Aircraft, Passenger, and Cargo Movements,2021 & 2022 https://caap.gov.ph/aircraft-passenger-and-cargo-movements/ Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-059.pdf === Figure 24. Transport Final Energy Consumption, By Fuel per Sector and Total (Percent), 2022 All transport fuels registered an increase in their consumption levels during the year, except LPG whose demand fell by 91.9 percent vis-à-vis its year-ago level caused by its declining relevance as fuel for taxis. Utilization of aviation fuels (aviation gasoline and jet fuel) and fuel oil in water transport grew by 76.6 percent and 68.8 percent, respectively, given the increased demand for air and maritime travel. Gasoline and diesel, with a combined share of 90.3 percent of total transport demand (Figure 24), went up by 10.1 percent and 9.9 percent, respectively, attributed to increased road traffic across the country. Consistent with the mandated blending schedule, bioethanol, and biodiesel likewise registered increments of 10.2 percent and 16.1 percent, respectively. The growing number of electric vehicles (EVs), coupled with the peak performance of the MRT and LRT during the year, paved the way for the 9.3 percent growth in electricity consumption in the transport sector during the year. 2. Households The household sector remained the country’s second major consumer of energy in 2022 and garnered a 28.8 percent share of the country’s total energy consumption. As the country emerged from lockdowns and restrictions imposed during the last two (2) years of the COVID-19 pandemic, a greater proportion of the working population returned to onsite reporting, while schools implemented hybrid and blended learning modalities, albeit with strict compliance to mandatory health requirements. These developments contributed to the slowdown of household energy consumption as levels slightly improved by 1.3 percent to 10.3 MTOE in 2022 from 10.2 MTOE in 2021. Figure 25. Energy Consumption of the Residential Sector, By Fuel (Percent), 2022 LPG 12.3% Kerosene 0.4% Charcoal 22.1% Fuelwood 60.5% Electricity 29.5% Households remained dependent on biomass as it accounted for more than half (57.8 percent share) of the sector’s energy consumption (Figure 25). Biomass consumption levels moderately increased by 1.0 percent to 6.0 MTOE in 2022 compared to the previous year, the Other Biomass 8.3% Biomass 57.8% Total Demand: 10.3 MTOE bulk of which were fuelwood (69.5 percent share) and charcoal (22.1 percent share) used primarily as fuel for cooking and heating. Electricity contributed close to one-third (29.5 percent) of household’s energy demand mix in 2022 at 3.0 MTOE or 1.0 percent more than its year-ago level. The increase in household electricity consumption is mirrored by the 0.8 percentage point improvement in the proportion of the household population with access to electricity recorded at 96.2 percent as of December 2022. Despite the upward trend in average prices of LPG in 2022, its utilization as cooking fuel among households gained traction and increased the fastest by 4.1 percent to 1.3 MTOE, equivalent to a 12.3 percent share in the sector’s demand mix. Households’ preference for modern equipment for cooking and other activities drove kerosene consumption to decline by 10.8 percent to 45.8 KTOE during the year. Vo l u m e 1 50 === pep-2023-2050-vol1-section-b-page-060.pdf === 3. Industry The country’s industry sector grew steadily at 6.5 percent in 2022 vis-à-vis 2021 and remained resilient despite inflationary pressures on the cost of goods and intermediate inputs. In response to strong domestic demand, there was an increase in the proportion of industries that operated at full capacities which resulted in higher average capacity utilization during the year.34 This propelled the 4.2 percent expansion in the sector’s aggregate energy consumption to 7.1 MTOE from the 2021 level of 6.8 MTOE. Figure 26. Energy Consumption of the Industrial Sector, By Sub-sector (Percent), 2022 Mining 8.5% Manufacturing: Other Industry 12.8% Construction 11.0% Total Demand: 7.1 MTOE The Monthly Integrated Survey of Selected Industries (MISSI) volume of production index increased by 15.1% in 2022, indicating that factory production output Manufacturing: Energy Intensive was still increasing, but at a slower rate than the 67.8% 52.6 percent growth seen in 2021. As such, energy consumption in the manufacturing subsector, albeit accounting for the biggest share of the total industry at 80.5 percent (Figure 26), grew marginally by 0.9 percent from last year’s 5.7 MTOE. The consumption of energy-intensive manufacturing sub-sectors stood at 4.8 MTOE in 2022, up by 3.3 percent from its previous year's level, with positive contributions from food processing (4.7 percent increase with 21.9 percent share), machinery and equipment (31.1 percent increase with 7.1 percent share) and cement (0.2 percent increase with 14.5 percent share) that offset contractions in other sub-sectors level of energy consumption. On the other hand, combined energy utilization of other industries dropped by 10.3 percent during the year. The mining sub-sector remained positive in 2022 as high metal prices and robust production output contributed to the 35.0 percent growth in the aggregate value of metal production compared to the previous year35. Increased metal demand from export partners like China helped to support mining activity, and the adoption of long-overdue government regulations attracted new players who were given permission to operate during the year. These developments pushed the sector’s energy consumption to 604.2 kTOE in 2022, up by 26.8 percent compared to the previous year’s 476.4 kTOE. Electricity acquired more than one-third (34.9 percent share) of the industry sector’s energy demand mix during the year and was utilized in almost all industrial processes, particularly in food processing, iron and steel, and machinery and equipment industries. Its consumption reached 2.5 MTOE (Figure 27) or 4.4 percent more than its year-ago level of 2.4. MTOE. Coal accounted for more than a fourth (26.1 percent share) of total industry TFEC, but its utilization fell by 4.8 percent to 1.9 MTOE in 2022. Despite the cement subsector’s increased consumption, higher coal prices gripped the iron and steel, and other manufacturing subsectors resulting in 18.1 percent and 27.5 percent reductions in coal demand, respectively. Consumption of oil products in the sector went up by 17.1 percent to 1.8 MTOE in 2022, translated to an aggregate share of 25.7 percent of the industry’s TFEC. Diesel Figure 27. Industry Energy Demand, by Fuel, 2022 (MTOE) Electricity: 2.5 MTOE Coal: 1.8 MTOE Diesel: 1.2 MTOE Biomass: 0.9 MTOE Fuel Oil: 0.4 MTOE Kerosene, Biodiesel: 0.03 MTOE Total Demand: 7.1 MTOE consumption escalated by 35.1 percent due to its increased utilization in assembly lines for machineries and equipment for mining and construction. On the other hand, LPG use went up by 1.4 percent. These offset the registered 8.7 percent and 44.2 percent downtrend consumption of fuel oil and kerosene, respectively, during the year. Biomass consumption remained at 924 kTOE, while biodiesel consumption increased significantly by 53.7 percent to 23.7 kTOE in 2022, consistent with the mandated blending schedule. 34 35 51 Monthly Integrated Survey of Selected Industries (https://psa.gov.ph/manufacturing/missi-table) Mines and Geosciences Bureau (MGB) Mineral Statistics 2021-2022 Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-061.pdf === 4. Services36 The services sector continued to propel the country’s postpandemic and was the main driver of economic growth for 2022 with a 9.2 percent acceleration in aggregate gross value added (GVA) during the year. However, the significant shift in the energy demand mix for the sector, characterized by reduced dependence on diesel, moved down its energy consumption levels to 4.5 MTOE in 2022 or 8.2 percent less than the 4.8 MTOE recorded in the previous year. The volume of diesel utilized fell sharply by 35.0 percent to 1.3 MTOE in 2022 compared to its year-ago level of 2.0 MTOE that put on a 12.2 percentage points reduction in its share to the sector’s TFEC to 29.6 percent during the period (Figure 28). The reduction in the diesel demand also pulled down biodiesel consumption to 26.0 kTOE in 2022 vis-à-vis 40.0 kTOE in 2021. Consequently, the service sector's total electricity consumption went up to 2.1 MTOE in 2022, or 15.0 percent more than the 1.8 MTOE recorded in 2021. Aside from electricity, consumption of LPG and fuel oil, with a 15.4 percent combined share, also increased by 7.0 percent and 12.0 percent respectively. Biomass completed the demand mix with the 331.8 kTOE utilization during the year. Figure 28. Energy Consumption of the Services Sector, By Fuel Shares (Percent), 2022 Fuel Oil 3.9% Biomass 7.5% Electricity 46.9% Biodiesel 0.5% Diesel 29.6% LPG 11.5% Total Demand: 4.5 MTOE 5. Agriculture The agriculture sector, with the least contribution to GDP growth, lagged other output-producing sectors with a 0.5 percent increase in its GVA, albeit an improvement compared to its 0.3 percent contraction posted a year ago. However, its energy consumption lessened by 32.0 percent as its subsectors registered lower utilization in 2022 vis-à-vis 2021. Farm output from the agri-industry decreased by 1.1 percent in 2022, pulled down by the adverse impact of successive weather disturbances 37 in the fourth quarter, as well as price hikes in production inputs (fertilizer, fuel, and others). This is evident in its 34.5 percent drop in energy use for agri-crop production from last year’s 349.9 kTOE to 229.1 kTOE in 2022 (Figure 29). Despite the gains in the livestock and poultry sub-sector during the year from negative growth registered in 2021, its energy consumption declined by 56.8 percent to 73.1 kTOE due to hampered repopulation of hogs and a limited number of operating livestock farms and facilities amidst the lingering impact of African Swine Fever (ASF). Higher production costs for farmers led to depressed agriculture activities as energy demand for agricultural support services also fell by 23.3 percent. Energy consumption in the forestry and fishery subsectors dropped by 20.5 percent and 27.7 percent, respectively, attributed to the weakened production volume output in 2022. 36 37 Figure 29. Energy Consumption of the Agriculture & Forestry, By Sub-Sector (kTOE), 2021 vs 2022 Trade and services, excluding Transport Typhoons Karding (international name: Noru) and Paeng (international name: Nalgae) caused agricultural damage worth P3.12 billion and P6.4 billion in the harvesting months of Q4 2022. Vo l u m e 1 52 === pep-2023-2050-vol1-section-b-page-062.pdf === Figure 30. Energy Consumption of the Agriculture & Forestry Sector, By Fuel Shares (Percent), 2022 Biodiesel 0.6% Oil Products 36.8% Diesel 31.9% Fuel Oil 0.3% Electricity 62.6% Gasoline 4.6% Kerosene <0.01% Total Demand: 378.3 kTOE Electricity, with its 62.6 percent share to agriculture’s TFEC dropped by 23.3 percent due to depressed demand from the agri-industry sub-sector. Diesel use for farm equipment fell by almost half (46.6 percent) to 120.6 kTOE in 2022, it accounted for 31.9 percent of the sector’s demand mix, while biodiesel consumption mirrored its level of utilization reduction in the sector. Consumption of fuel and kerosene, with an aggregate share of 0.3 percent to the sector’s TFEC, decreased by 45.6 percent. Gasoline completed the sector’s demand mix, the only fuel in the sector that registered positive utilization level at 13.5 percent, from 15.4 kTOE in 2021 to 17.5 kTOE in 2022 (Figure 30). B. TRANSFORMATION I. Oil Refining Aggregate refinery production output from Petron’s Bataan Refinery increased by 52.0 percent to 5.6 MTOE (43.8 million barrels (MMB)) compared to its year-ago level of 3.7 MTOE (28.8 MMB) (Figure 31). The significant uptrend is associated with high demand for Petron’s finished petroleum products due to the resumption of economic activities and improved mobility that came with the easing of stringent travel restrictions. The country’s lone refinery in Limay, Bataan, capable of supplying around 40.0 percent of total fuel requirements with its 180,000 barrel-per-day (bpd) capacity was able to avoid maintenance downtime in 2022 due to enhancements and optimizations implemented by the Petron Corporation. It took advantage of favorable refining cracks38 and boosted its over-all net income for the same period. Figure 31. Refinery Production, by Fuel, 2021 vs 2022 (MTOE) All marketable products registered higher volumes during the year, except for fuel oil which posted a steep decline of 75.5 percent. Diesel dominated total marketable products with its 41.9 percent share, as its volume increased significantly by 39.3 percent to 2.3 MTOE compared to 1.7 MTOE in 2021. Gasoline, which accounted for a 25.2 percent share also escalated to 1.4 MTOE or 56.6 percent more than its 2021 level of 893.5 kTOE. Notable increases were likewise recorded in other petroleum products such as jet fuel (152.7 percent), LPG (37.6 percent), kerosene (13.4 percent), and other petroleum products (47.5 percent) due to growing demand from the industry and aviation sectors. II. Power Generation and Fuel Input Total generation output from all power plants in 2022 exhibited a 5.1 percent gain and reached 111.5 tera-watt (TWh) from the previous year’s 106.1 TWh. This is consistent with the growth in electricity demand as economic activities returned to their pre-pandemic trajectories. Coal-fired power plants supplied the bulk of the total power generation at 59.6 percent (66.4 TWh), followed by natural gas at 16.0 percent (17.9 TWh). Generation output from geothermal and hydro recorded at 38 53 https://www.petron.com/news/petron-marks-two-straight-years-of-growth-reports-p6-7b-net-income-in-2022/ Philippine Energy Plan === pep-2023-2050-vol1-section-b-page-063.pdf === 9.3 percent (10.4 TWh) and 9.0 percent share (10.1 TWh), respectively. On the other hand, the combined shares of solar, wind, and biomass contributed a 3.7 percent share (4.2 TWh), while at least 2.3 percent (2.5 TWh) came from oil to complete the country’s generation mix for 2022. Total fuel consumption of power plants went up by 3.7 percent to 32.7 MTOE in 2022 compared to 31.6 MTOE in the previous year. Fossil fuels owned close to two-thirds (62.6 percent) of the fuel input mix due to their reliability and baseload characteristics. The volume of coal input grew by 2.3 percent from its year-ago level of 16.8 MTOE to 17.1 MTOE in 2022 credited to additional capacity from the GNPower Dinginin Unit 2 that went online in October 2022. Utilization of natural gas for power generation descended further by 6.3 percent to 2.5 MTOE compared to its 2021 level of 2.7 MTOE, due to the termination of the Malampaya and Ilijan cooperation period on 04 June 2022. Figure 31. Refinery Production, by Fuel, 2021 vs 2022 (MTOE) 3.9% 3.7% 8.7% Inner Circle Fuel Input to Power Generation Total: 31.6 MTOE 9.0% 7.2% 9.4% 1.5% 2.3% 8.5% Coal 27.4% 53.1% 1.3% 18.0% 7.7% 9.3% 2021 27.3% Outer Circle Power Generation Total: 106.1 TWh 2.5% Natural Gas Oil-based 2.3% 2022 7.7% 16.0% Geothermal Hydro Outer Circle Power Generation Total: 111.5 TWh 52.3% 2.6% 58.5% Inner Circle Fuel Input to Power Generation Total: 32.7 MTOE 59.6% Solar, Wind, & Biomass Combined fuel input of renewable energy sources remained at a level of 12.2 MTOE in 2022 from the previous year. Geothermal dipped by 2.4 percent from 9.2 MTOE in 2021, while hydro input went up by 9.8 percent from 2.3 MTOE in 2021 to 2.5 MTOE in 2022. Aggregated inputs from solar, wind, and biomass stood at 0.8 MTOE, 10.1 percent more than their previous year’s level. This is attributed to the 24.0 percent and 13.3 percent leap of solar and biomass, respectively, for power generation during the period. Vo l u m e 1 54 === pep-2023-2050-vol1-section-b-page-064.pdf === C. TOTAL PRIMARY ENERGY SUPPLY (TPES) The aggregate volume of all primary energy sources for 2022 grew faster at 4.7 percent vis-à-vis the 2.4 percent growth in energy demand during the year. Of the 61.6 MTOE level of TPES, net imported energy reached 31.1 MTOE and maintained its ascent for two (2) consecutive years with a 7.6 percent increase vis-à-vis 2021. The level of indigenous energy resources slightly improved by 2.0 percent to 30.4 MTOE. With the fast-paced rise in net imported energy, energy self-sufficiency decreased by 1.3 percentage points to 49.4 percent in 2022 from 50.8 percent in 2021 (Figure 33). Figure 33. Total Primary Energy Mix, by Fuel (% Shares), 2021 vs 2022 Oil returned to the top spot as the country’s major energy source with its 32.2 percent share to the TPES in 2022, its level increased by 12.3 percent to 19.8 MTOE driven by the hike in net oil importation given the limited domestic production. Coal’s aggregate supply level slowed down due to higher import prices, grew by 0.9 percent to 19.1 MTOE from its previous year’s level of 18.9 MTOE. While coal was able to maintain its 31.0 percent share to the TPES, natural gas posted a minimal contribution at 4.2 percent share due to its 7.4 percent reduction as fuel input for power generation in 2022. The aggregate supply of geothermal, hydro, solar, wind, and biomass (including biofuels) reflected a share of 32.6 percent in the energy mix, grew by 3.3 percent from the previous year’s level of 19.4 MTOE to reach 20.0 MTOE in 2022. I. Indigenous Energy The share of total indigenous energy production to the energy mix remained on the downtrend at 49.4 percent vis-à-vis 51.1 percent in 2021. Gains achieved in the increased production of coal (2.9 percent), hydro (9.8 percent), solar (24.0 percent), biomass (1.6 percent), and biofuels (4.1 percent), were surpassed by the reduction of oil (8.7 percent), natural gas (7.4 percent), geothermal (2.4 percent) and wind (18.9 percent). Fossil Fuels Oil. The nation's total oil production, including condensate, decreased by 8.7 from its 2021 level to 357.6 kTOE in 2022 (1.2 percent of the overall indigenous energy supply). The remaining active oil fields in the nation, Galoc, and Alegria, declined their crude oil production at 11.6 percent and 32.7 percent, respectively. Similarly, condensate output continued to weaken in 2022, registered a reduction of 7.8 percent, as a result of the Malampaya gas field's declining viability. Coal. Domestic coal production, with an 8.6 percent share to the indigenous energy production, improved by 2.9 percent to 7.6 MTOE (14,457.3 million metric tons (MMT)) from its 2021 level of 7.4 MTOE (14,047.7 MMT). The entirety (99.5 percent) of local coal was sourced from Semirara Mining, the country’s primary coal mine located in Antique province, which reported a 3.1 percent increase in its coal volume in 2022. Coal mines in Cebu and Negros also reported a significant increase in production that compensated for the curtailed output from small-scale mines (-19.7 percent) and Bicol region (-71.2 percent). 55 Philippine Energy Plan