=== pep-2023-2050-vol2-section-c-page-044.pdf === Capacity and Production. As of December 2022, the aggregate production capacity of biofuels was recorded at 1,143.9 million liters per year (MLPY). Of the total, 677.9 MLPY capacity was for biodiesel production from 12 accredited facilities, while the remaining 466 MLPY capacity was for bioethanol provided by 13 accredited facilities as shown in Table 19. Table 19. Accredited Biofuel Facilities (As of Dec. 2022) Biofuel No. of Projects Biodiesel 12 Capacity (MLPY) 677.9 Bioethanol 13 466.0 Total 25 1,143.9 Figure 7. Biofuel Production and Sales Biofuels utilization exhibited a positive trend in 2022 primarily attributed to the increased demand for diesel and gasoline following the lifting of mobility restrictions associated with the COVID-19 pandemic. Figure 7 shows the growth in production outputs for biodiesel and bioethanol, reaching 203.4 million liters (ML) and 374.8 ML, compared to 198.1 ML and 354.6 ML in 2021, respectively. This translated to an increase in production outputs of 2.7 percent for biodiesel and 5.7 percent for bioethanol. On the other hand, sales increased by 5.7 for biodiesel and 2.9 percent for bioethanol. These figures indicate the gradual improvement in biofuel production, highlighting the growing recognition and adoption of RE sources in the transportation sector. Accreditation. There are six (6) registered facilities with Notice to Proceed with construction comprising four (4) from biodiesel and two (2) bioethanol with production capacities of 288.9 MLPY and 83.0 MLPY, respectively (Table 20). Additionally, two biodiesel distributors have a storage capacity of 2.0 ML (Table 21). 34 Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-045.pdf === Table 20. Registered with Notice to Proceed / Ongoing Construction (As of Dec. 2022) Biofuel Facilities Project Location Production Capacity (MLPY) Biodiesel Bio Renewable Energy Ventures, Inc. Jasaan, Misamis Oriental 150.00 Greentech Biodiesel, Inc. Gumaca, Quezon 100.00 Voice Development Corporation Tayabas, Quezon 27.65 Seaoil Philippines, Inc. Pres. M.A. Roxas, Zamboanga del Norte 11.23 Subtotal 288.88 Bioethanol Cavite Biofuels Producers, Inc. Magallanes, Cavite Canlaon Alcogreen Agro Industrial, Corp. Bago City, Negros Occidental 38.00 45.00 Subtotal 83.00 Grand Total Further, the DOE continuously facilitates the issuance of certificate of accreditation (COA) for construction and commercial operations, and certificate of registration (COR) to biofuel producers and distributors underscoring the commitment to promote biofuels in the country. Such ensures that biofuels being sold, distributed, and used for transport fuel meet the necessary standards. 371.88 Table 21. Biodiesel Distributor (As of Dec. 2022) Biodiesel Facilities Project Location Emerald Fields Trading, Inc. Mabini, Batangas Seaoil Philippines, Inc. Pres. M.A. Roxas, Zamboanga del Norte Total Storage Capacity (L) 962,341 1,044,302 2,006,643 In parallel, the DOE has also been involved in overseeing the denaturing of locally produced bioethanol amounting to 67.2 ML (based on certifications duly signed by the representatives of the DOE and Bureau of Internal Revenue (BIR) as submitted by the bioethanol produces). The denaturing process guarantees that bioethanol is utilized solely for its intended purpose as a renewable source, aligning with the government's efforts to promote sustainable and environmentally friendly energy alternatives. Research and Development. Driven by safeguarding energy supply security and sustainability, the DOE is continuously engaging in R&D of other indigenous biofuel feedstocks. The alternative feedstock sources for biodiesel are: (a) jatropha, (b) waste cooking oil, (c) microalgae, and (d) rubber seed. For bioethanol, feedstock sources include sweet sorghum, cassava, microalgae, nipa sap, and cellulosic materials. The DOE’s partnership with other government agencies, academic institutions, and international organizations completed the R&D on the following: • University of the Philippines Los Baños (UPLB). The research on Life Cycle Assessment in terms of Carbon Debt and Payback Analyses, Carbon Savings, and Energetics Studies of Biodiesel Production from Coconut Oil in the Philippines showed that at the current 2.0 percent biodiesel blending, 1.3 percent GHG reduction potential is achieved. Increasing the blending rate to B5, B10, and B20 will result in an increase in GHG reduction potential by 3.2 percent, 6.4 percent, and 12.9 percent, respectively. In April 2022, the DOE issued a certificate of completion for the project. Hydrous Bioethanol as Biofuel blend using Nipa Sap as Feedstock Vo l u m e 2 35 === pep-2023-2050-vol2-section-c-page-046.pdf === • Mariano Marcos State University (MMSU). The research on the Establishment of a Community-Based Bioethanol Industry and Continued Research and Development on the Feasibility of Hydrous Bioethanol as a Biofuel Blend using Nipa Sap as Feedstock resulted in total production of 3,500 liters of anhydrous bioethanol (AHA) with 99.73 percent volume per volume (v/v) purity, and compliant to the existing Philippine National Standards (PNS). The DOE is currently reviewing the Deed of Donation for Capital Equipment. • Department of Science and Technology – Industrial Technology Development Institute (DOST-ITDI). The study on Characterization/performance testing of the biodiesel/diesel blends from a combined feedstock of various vegetable and used cooking oils concluded that a binary blend of Coconut Methyl Ester (CME) and Used Cooking Oil Methyl Ester (UCOME) at 4:1 ratio passed all the PNS specification for B100. Correspondingly, engine performance test results determined an increase in power, torque, and motive force at B2 and B5 blends for a 4:1 ratio of CME and UCOME but a decrease was observed for B10. • NSEBIO Co., Ltd. Philippine Branch (NSEBIO). The 1-Dry per day Bagasse and Napier Grass Bioethanol Research Demonstration Facility obtained an ethanol yield of 292L/dry-ton from fresh bagasse and achieved an average ethanol production of 282L/dry-ton from Napier grass. The on-road test using B5 covering 30,000 kilometers (km) distance of flat and high altitude/elevated terrains with varying weather conditions was completed in 2021. The test results showed mileage increases of about nine (9) to 10 percent for the test vehicles for manual and automatic transmissions. The NBB-Biodiesel Committee recommended conducting dynamometer testing under a controlled environment to determine the fuel efficiency of B2 and B5, as a supplementary reference to the DOE’s actual on-road test. IEC Campaigns. The DOE also convened IEC campaigns in five (5) Science High Schools in Metro Manila to provide in-depth knowledge and understanding of biofuels, namely: (1) Parañaque Science High School; (2) Sen. Rene Cayetano Memorial Science and Technology High School; (3) Taguig Science High School; (4) Makati Science High School; and (5) Pasig Science High School. The campaign centered on the environmental and economic benefits of biofuels, manufacturing procedures, and accompanying academic research. Plans and Programs Methyl Ester Samples As a move to align with the Biofuels Act of 2006, the DOE intends to expand biofuels’ contribution into the country’s energy portfolio. This enables the government to achieve its objective of reducing reliance on fossil fuels, thus improving public health and air quality. The increase in biofuel blend requires expansion of domestically sourced feedstock to ensure sustainable supply. As the Philippine Coconut Authority (PCA) finalizes the guidelines for the equitable distribution of feedstock and benefits for coconut farmers, the DOE remains committed to implementing the Biofuels Roadmap as shown in Figure 8. Collaboration with other government agencies and institutions is also being undertaken to conduct various activities, including the identification of promising feedstock sources. 36 Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-047.pdf === Figure 8. Biofuel Roadmap Short - Long Term 2023-2050 Biodiesel and Bioethanol • Review the bioethanol and biodiesel mandates • Revisit blending requirement and available feedstock • Continuous conduct of monitoring and technical validation of existing and new biofuel production plants/projects • Continuous conduct of research and development (R&D), deployment and demonstration on alternative biofuel feedstock sources and technologles, in collaboration with other government agencies, academic institutions, industry, stakeholders and interational counterparts/organizations • Integrate 2nd generation bioethanol technology into existing commercial plants 2050 OBJECTIVE Pursue the development of biofuels in compliance with the Biofuels Act of 2006 (RA 9367) The action plans needed to align for the review of the biofuel blending mandate are: • Increase the biodiesel blend from B2 to B5 while taking into consideration the B3 to B5 phased implementation. Initially, the recommended annual blend increase is 1.0 percent to avoid a sudden rise in the market price of coconut oil. The increase in biodiesel blend is subject to the approval of the resolution by the NBB. • Implement the voluntary 20.0 percent bioethanol blend as a support measure to address the effects of the prolonged Russia-Ukraine conflict on the downstream oil sector and as a possible solution to address the increasing fuel prices. • Revisit the biofuel blend requirements and available feedstock. The NBB deems it necessary to address these issues through a holistic analysis as the basis for finalizing a decision in increasing biofuel blending. Consistent with the objectives of the Biofuels Act, the DOE will continuously conduct the following: • Regular monitoring, inspection, validation, and evaluation of existing and proposed biofuels/biomass projects and facilities nationwide, and sampling laboratory testing of biofuels in all biofuel production facilities and feedstock production areas and biofuelblended gasoline and diesel in all blending/distribution facilities; and • R&D activities and studies on biofuels, biofuel-blended gasoline, and diesel, and/or other biomass-derived fuels for use in motors and engines including air transport and other vehicle technologies. • Encourage investments and provide fiscal incentives to entities engaged in the production of biofuels and biofuel feedstock. • Continuously embark on Research, Development, and Demonstration (RD&D) activities geared towards identifying viable feedstocks for biofuel production. These initiatives are currently undertaken by academic institutions with support from development partners and other industry stakeholders (Ethanol Producers Association of the Philippines and the Philippine Biodiesel Association). Capacity Expansion and Production Target. In the mediumterm, it is expected that two bioethanol production facilities, with a total potential capacity of 83.0 MLPY, and five48 biodiesel facilities, with 288.88 MLPY (all with existing accreditation for construction and projects with the intent to produce) will become operational. Additional four (4) accredited bioethanol producers are expected to increase the rated production capacity by 30 MLPY due to progressive optimization and additional feedstock sources, to wit: • • • • Far East Alcohol Corp. Absolut Distillers, Inc. Progreen Agricorp Inc. – Nasugbu Kooll Company, Inc. As a way forward to the completion of the previous R&D efforts, the MMSU is planning to replicate its technology and deploy it in three (3) sites in Aparri, Cagayan to be funded by the Global Environmental Facility (GEF) of UNDP under the DREAMS Project. Meanwhile, UPLB is planning to benchmark criteria/checklist as shown in Figure 9, to guide proponents for future construction of biodiesel production plants which ensures the environmental sustainability of biodiesel production in the long term, which also supports the reduction of greenhouse gas emissions. Figure 9. UPLB Criteria/Checklist Research, Design, and Development. This requires pursuing R&D on other alternative biofuel feedstock sources including feedstocks that can be manufactured from various types of nonfood biomass (e.g., grass, agricultural wastes, etc.). Two biodiesel production facilities were already commissioned in June 2023 with a combined capacity of 161.23 MLPY, the Bio Renewable Energy Ventures, Inc. with production capacity of 150 MLPY and Seaoil Philippines, Inc. with 11.23 MLPY production capacity. 48 Vo l u m e 2 37 === pep-2023-2050-vol2-section-c-page-048.pdf === Investment and Employment Opportunities The capacity expansion plan for biofuel facilities is needed to meet the projected increase in biofuel demand over the planning horizon. As presented in the CES of the Energy Demand and Supply Outlook, biodiesel demand is anticipated to exceed 892.1 ML by 2050, more than double the demand in the Reference Scenario (REF) despite the high penetration of electric vehicles (EVs) in total road transport. The high demand for biodiesel in the CES is attributed to the gradual annual increase in the biodiesel blend rate, from the current 2.0 percent to 5.0 percent by 2026. To fulfill the local supply requirements and meet the biodiesel demand within the planning period, the country needs to put up an additional production capacity of 134.5 MLPY (both in CES), considering an 80.0 percent capacity utilization rate. This is on top of the committed and proposed projects with a Notice to Proceed. As a result, the total production capacity increases to 1,115.1 MLPY by the end of the planning period, as illustrated in Table 22. Similarly, the CES predicts that the demand for bioethanol reaches 1,035.7 ML by 2050. This is 22.5 percent lower than the demand projected in the REF scenario, as a result of the entry of more EVs. Assuming that all bioethanol supply requirements are to be fulfilled through local production, about 760.7 MLPY of additional production capacity under the CES is necessary, considering the 80.0 percent capacity utilization rate (Table 23). By 2050, the total production capacity is projected to be 1,294.7 MLPY if only 60.0 percent of the bioethanol supply requirement is produced locally, the additional production capacity requirement reduces by 242.8 MLPY (CES), as presented in Table 24. The expansion of production capacity creates valuable investment and livelihood opportunities, particularly in rural communities. To accommodate the required capacity additions for biodiesel, the estimated total investment of PhP697.5 million (USD12.7 million)49 in the CES is necessary, as outlined in Table 22. Table 22. Cumulative Biodiesel Additional Production Capacity and Investment Requirements Year Demand (ML) REF CES1 Total Capacity (MLPY) CES2 REF CES1 Capacity Addition (80% Utilization Rate) (MLPY) CES2 REF CES1 CES2 REF CES1 Jobs Generation CES2 REF CES1 CES2 2023 221.28 219.17 219.17 617.90 617.90 617.90 - - - - - - - - - 2025 237.32 461.62 461.62 980.58 980.58 980.58 - - - - - - - - - 2028 260.83 614.06 614.06 980.58 980.58 980.58 - - - - - - - - - 2030 275.48 635.11 635.11 980.58 980.58 980.58 - - - - - - - - - 2035 313.84 696.42 696.42 980.58 980.58 980.58 - - - - - - - - - 2040 355.18 757.33 757.33 980.58 980.58 980.58 - - - - - - - - - 2045 388.16 823.12 823.12 980.58 1,028.90 1,028.90 - 48.32 48.32 - 250.46 250.46 - 50 50 2050 422.66 892.11 892.11 980.58 1,115.13 1,115.13 - 134.55 134.55 - 697.47 697.47 - 140 140 Note: On the assumption that the average investment cost per MLPY is PhP5.184 million Forex Rate used PhP55.0/USD 49 38 Investment Cost (PhP Million @2022 Prices) Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-049.pdf === On the other hand, bioethanol production calls for significant investments, with a total estimated investment of PhP64,621.2 million (USD1,174.9 million) in the REF, while the investment requirement for the CES is about 33.0 percent lower equivalent to PhP43,290.6 million (USD787.1 million), as indicated in Table 23. Table 23. Cumulative Bioethanol Additional Production Capacity and Investment Requirements (If All Locally Produced) Year Total Capacity (MLPY) Demand (ML) REF CES 1&2 REF CES 1&2 Capacity Addition (80% Utilization Rate) (MLPY) REF Investment Cost (PhP Million @2022 Prices) CES 1&2 REF Jobs Generation CES 1&2 REF CES 1&2 2023 701.00 692.64 876.25 865.80 - - - - - - 2025 748.27 716.33 935.34 895.41 401.34 361.41 22,840.70 20,568.28 2,268 2,042 2,348 2028 841.75 759.68 1,052.19 949.60 518.19 415.60 29,490.58 23,652.29 2,928 2030 900.34 782.55 1,125.43 978.19 591.43 444.19 33,658.68 25,279.04 3,342 2,510 2035 1,033.23 862.72 1,291.54 1,078.40 757.54 544.40 43,112.43 30,982.19 4,280 3,076 2040 1,161.86 924.85 1,452.33 1,156.06 918.33 622.06 52,262.85 35,402.15 5,189 3,515 2045 1,252.18 983.46 1,565.23 1,229.33 1,031.23 695.33 58,688.13 39,571.67 5,826 3,929 2050 1,335.58 1,035.74 1,669.48 1,294.67 1,135.48 760.67 64,621.21 43,290.65 6,415 4,298 The assumption of all bioethanol supply requirements is to be produced locally with an estimated investment of PhP56.91 million per MLPY capacity (average). Table 24. Cumulative Bioethanol Additional Production Capacity and Investment Requirements (If 60% Locally Produced) Year Demand (ML) REF CES 1&2 Total Capacity (MLPY) REF CES 1&2 Capacity Addition (80% Utilization Rate) (MLPY) REF Investment Cost (PhP Million @2022 Prices) CES 1&2 REF Jobs Generation CES 1&2 REF CES 1&2 2023 420.60 415.58 525.75 519.48 - - - - - - 2025 448.96 429.80 561.20 537.25 27.20 3.25 1,548.25 184.81 154 18 202 2028 505.05 455.81 631.31 569.76 97.31 35.76 5,538.19 2,035.21 550 2030 540.21 469.53 675.26 586.91 141.26 52.91 8,039.04 3,011.26 798 299 2035 619.94 517.63 774.93 647.04 240.93 113.04 13,711.29 6,433.15 1,361 639 2040 697.12 554.91 871.40 693.64 337.40 159.64 19,201.55 9,085.13 1,906 902 2045 751.31 590.08 939.14 737.60 405.14 203.60 23,056.71 11,586.84 2,289 1,150 2050 801.35 621.44 1,001.69 776.80 467.69 242.80 26,616.56 13,818.22 2,642 1,372 The assumption of all bioethanol supply requirements is to be produced locally with an estimated investment of PhP56.91 million per MLPY capacity (average). These investments in both biodiesel and bioethanol offer employment opportunities. For biodiesel capacity addition, around 140 workers (CES) are required, while for bioethanol, about 6,415 employment opportunities will be created under the REF and 4,298 for the CES. These employment opportunities exclude the additional jobs to be created during the construction phase. Vo l u m e 2 39 === pep-2023-2050-vol2-section-c-page-050.pdf === Renewable Energy Systems The growing global call for countries to transition to a clean economy and embrace the global development framework as espoused in the Sustainable Development Goals (SDGs) has significantly influenced how energy policies are crafted along with energy security, reliability, affordability, and resiliency objectives. Against this backdrop, the Philippine government heightened its focus on prioritizing and strengthening efforts on sustainable renewable energy (RE) development in the country. Acknowledging that renewables present one of the most effective pathways toward energy supply security as well as fostering a low-carbon and resilient economy, the DOE remains unwavering in its commitment to establish a robust and sustainable policy agenda to accelerate RE development and utilization. The collaborative efforts between the government and private sector are central to creating an enabling environment for investment, promoting the adoption of efficient and cost-effective RE technologies, and driving the successful implementation of RE initiatives. Over the years, the government made significant headways in strengthening domestic policy frameworks and programs on renewables toward a just and inclusive energy transition. Notably, several major RE policies and programs have been put into motion to advance the country’s energy transition initiatives. Among the key policies and programs include the following: Adoption of the National Renewable Energy Program (NREP) 20202040. The National Renewable Energy Program (NREP) 2020-2040’s adoption on 19 July 2022, serves as the country’s long-term program to hasten RE development and utilization. It sets the target of reaching at least 35.0 percent RE share in the power generation mix by 2030 and strives to increase to 50.0 percent by 2040. " Our gradual transition to a low-carbon economy entails the diversification of our energy sources, such as renewable energy, to intensify decarbonization efforts across all economic sectors as part of our broader national strategy. - Raphael P. M. Lotilla ENERGY SECRETARY RE Resource Development Awarded RE Projects. As of September 2023, the DOE has awarded 1,141 RE Service Contracts50 with a total potential capacity of 121.0 gigawatts (GW) and an installed capacity of 5.7 GW. The variable RE technologies (solar and wind) account for 88.7 percent of the total potential capacity, equivalent to 107.3 GW. Said potential capacity includes the newly awarded three Offshore Wind (OSW) contracts with 100 percent foreign ownership. The RE Contract refers to the service agreement between the Government, through the DOE, and RE Developer over a period in which the RE Developer has the exclusive right to a particular RE area for exploration and development. 50 40 Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-051.pdf === AWARDED RENEWABLE ENERGY CONTRACTS (SEPTEMBER 2023) Offshore Wind (OSW) Development. On 20 April 2022, the DOE in collaboration with the World Bank Group, unveiled the OSW roadmap representing a crucial milestone in the country’s RE development. The roadmap offers a comprehensive strategic analysis of OSW potential covering a wide range of environmental, social, and technical considerations. A total of 178 GW of OSW potential is seen in six (6) prospective zones - Northwest Luzon, Manila, Northern Mindoro, Southern Mindoro, Guimaras Strait, and Negros/Panay West. As of December 2023, 81 OSW contracts have been awarded with an aggregate potential capacity of 62.2 GW spread mainly in Luzon and Visayas. This indicates a significant commitment from both the government and private sector to develop OSW projects in these areas. Offshore wind in the Philippines As a complement to the roadmap, the DOE has been collaborating with a development partner51 in the conduct of a study on permitting and consenting for OSW projects, and implementation of Marine Spatial Planning Tools and Systems which are expected to be concluded in 2024. The DOE together with Carbon Trust and the Global Wind Energy Council (GWEC) established a Joint Industry Platform (JIP) for the OSW sector in the Philippines. The JIP aims to identify and address complex barriers and challenges in the development of OSW in the country. 51 Energy Transition Partnership Vo l u m e 2 41 === pep-2023-2050-vol2-section-c-page-052.pdf === Executive Order No. 21. To further hasten the rollout of OSW projects in the country, President Ferdinand Marcos, Jr. issued Executive Order (EO) No. 21 52 directing the establishment of a Policy and Administrative Framework for the efficient and optimal development of OSW resources in the country. Under the said EO, a whole-of-government approach is needed to streamline and expedite the approval process by the concerned government agencies and institutions for the issuance of permits, licenses, and clearances for OSW projects, as well as eliminate unnecessary delays in every stage of project development. It also includes the full integration of applicable permits into the Energy Virtual One-Stop Shop (EVOSS) platform. The implementing guidelines, known as the “EO 21-IG,” were issued on 18 May 2023 through Department Circular (DC) 2023-05-0013, providing the guidepost for the effective implementation and execution of EO 21. This incorporates the different development stages of OSW projects encompassing the corresponding permitting requirements and processes by the permitting agencies. On 16 June 2023, the DOE subsequently issued DC2023-060020 adopting the Policy and Administrative Framework for the Efficient and Optimal Development of the Country’s Offshore Wind Resources, also known as “OPAF,” which shall apply to all permitting agencies, departments, bureaus, offices, Government-Owned and Controlled Corporations (GOCCs), Local Government Units (LGUs), and other entities involved in the permitting process of OSW projects. Onshore Wind Development. Another remarkable achievement was reached on 19 May 2023 wherein the President inaugurated the 160-MW onshore wind farm situated in Barangays Balaoi and Caunayan in Pagudpud, Ilocos Norte. Being the largest wind farm, it began construction in 2021 with PhP11.4 billion worth of investment. Phase 1 of the project boasts a capacity of 80 MW and is undergoing testing and commissioning. An additional capacity of 80 MW is anticipated to come online in June 2024, further enhancing the overall capacity and energy output of the wind farm. This significant development contributes to the Philippines' growing focus on RE sources and demonstrates the government’s commitment to a sustainable future. Floating Solar Project. As solar energy continues to advance at a rapid pace, the commercialization of floating solar technology has gained significant traction. This emerging technology offers a cost-effective means of generating renewable energy without the need for valuable land resources that could be utilized for other critical sectors like agriculture. A notable development in 2023 is the awarding of nine (9) Solar Energy Operating Contracts (SEOC), with a combined capacity of 1,135.3 MW, for the construction of large-scale floating solar projects in Laguna Lake. These floating solar projects are within the 2,000 hectares of pre-determined areas (PDAs) of the Laguna Lake Development Authority (LLDA) for RE development. 52 Issued on 19 April 2023 President Ferdinand Marcos Jr. with Secretary Raphael P. M. Lotilla during the inauguration of the 160-MW Onshore Wind Farm in Barangays Balaoi and Caunayan, Pagudpud, Ilocos Norte. 42 Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-053.pdf === 1.5 MW Landfill Methane Recovery and Power Generation Facility in Payatas, Quezon City Waste-to-Energy (WTE). Issued DC2022-02-0002 on 17 February 2022 titled, “Prescribing the Policies and Programs to Promote and Enhance the Development of Biomass Waste-to-Energy Facilities”. It provides the classifications and conditions for eligible Biomass WTE facilities utilizing locally sourced municipal solid wastes (MSW), as well as the prescribed policies and programs to encourage the power industry in developing Biomass WTE facilities. As of December 2023, there are 12 registered WTE facilities in the country with an aggregate capacity of 60.193 MW. Likewise, the DOE is looking into 113.96 MW WTE potential from seven (7) facilities in the country. Competitive RE Zones (CREZ). The completion of CREZ’s Phase 1 in 2020 served as a milestone for the country as part of its effort to facilitate grid planning and assess the capability of the transmission system to accommodate more RE capacities. The report “Ready for Renewables – Grid Planning and Competitive Renewable Energy Zones (CREZ) in the Philippines” identified 25 CREZ with high-quality solar and wind resources across the country with an estimated total capacity of 152,097 MW. It likewise covers the potential for other RE sources such as geothermal, hydro, and biomass. On the other hand, CREZ Phase 2 covered three activities as follows: 8.19 MW Landfill Methane Recovery and Power Generation Facility in Rodriguez, Rizal 1. CREZ implementation support 2. Enhanced load modeling and forecasting for long-term power sector planning 3. Improved energy storage and modeling consideration Policy Support Mechanisms Renewable Portfolio Standards (RPS). To meet the NREP target of at least 35 percent RE share in the country’s total power generation mix by 2030 and 50 percent by 2040, the DOE issued DC2022-09 0030,53 which effectively increased the minimum RPS annual percentage increment from 1.0 percent to 2.52 percent starting 2023. On 23 May 2023, significant amendments to the RPS On-Grid Rules were introduced through DC2023-05-0015,54 prescribing, among others, for the Energy Regulatory Commission (ERC) to develop a Regulatory Framework in consideration but not limited to the following: a. Potential impacts of the mandated participant’s compliance to the minimum annual RPS obligations; b. Attendant costs arising from the mandated participant’s compliance; and c. Cost recovery mechanism, if applicable. On 07 December 2023, DC2023-12-003255 was promulgated to govern the procedure in all matters relating to the inquiry, investigation, and all other proceedings on administrative actions for violations of the RPS Rules for both on-grid and off-grid areas. To operationalize the RPS Rules in off-grid areas, the DOE issued DC2023-05-0014,56 which prescribes, among others, for the ERC to develop a Regulatory Framework in consideration with the following: (1) the impact of compliance with the existing contractual agreements, rationalization of the Universal Charge-Missionary Electrification (UC-ME) subsidy, potential stranded assets, and corresponding stranded contract costs; (2) attendant costs to meet the optimal supply mix per off-grid area; and (3) cost recovery mechanism, if applicable. Renewable Energy Market (REM). On 10 June 2022, the Interim Commercial Operations of the Renewable Energy Market was declared through the issuance of DC2022-06-0019 and subsequently amended the REM Rules in the same month through DC2022-06-0026. During the interim commercial operations of the REM, the RE Registrar, except for functions that involve financial transactions, shall perform the responsibilities which include, among others: (a) the registration of participants; (b) conducting REM awareness activity; (c) performing RPS computations; (d) submitting and validating RE Certificate (REC) data; (e) issuing and validating RECs; (f) submitting REC reports; (g) operating the Philippine Renewable Energy Market System (PREMS); and (h) providing technical and administrative support to the REM Governance Committee (RGC). 53 Titled “Prescribing the Adjusted Annual Percentage Increment to be Imposed on all Mandated Participants of the Renewable Portfolio Standards for On-Grid Areas” 54 Titled “Prescribing the Amendments to DC2017-12-0015 or the Renewable Portfolio Standards (RPS) Rules for On-Grid Areas” 55 Titled “The Rules and Regulations on Administrative Actions for Violations of the Renewable Portfolio Standards (RPS) Rules 56 Titled “Promulgating the Revised Rules and Guidelines Governing the Operationalization of the Renewable Portfolio Standards for Off-Grid Areas Pursuant to Section 12 of the Renewable Energy Act of 2008 Vo l u m e 2 43 === pep-2023-2050-vol2-section-c-page-054.pdf === Preferential Dispatch in the Wholesale Electricity Spot Market (WESM). The DOE also issued DC2022-10-0031 titled, “Declaring all RE resources as Preferential dispatch generating units in the WESM amending for this purpose DC2015-030001” wherein all RE-generating units were granted preferential dispatch in the WESM (i.e., must or priority dispatch) to ensure their maximum output injection in the grid. Green Energy Auction Program (GEAP). The 1st Green Energy Auction (GEA) was conducted on 17 June 2022 and offered 2,000 MW of RE capacities enabling the issuance of 18 Certificates of Award totaling 1,866.13 MW. These capacities are considered committed and to be operational by 2023-2025. On 03 July 2023, the 2nd round of the GEA57 was conducted resulting in an additional 3,440.76 MW RE capacities from 105 winning bidders, committed to deliver power from 2024-2026. Easing Foreign Ownership Limit. Issued amendments58 to Section 19 of DC2009-05-0008 allowing foreign investors to hold 100 percent equity in the exploration, development, and utilization of solar, wind, hydro, and ocean or tidal energy resources. The Copenhagen Infrastructure New Markets Fund (CINMF) of Denmark was the first 100 percent foreignowned company to be awarded with three OSW service contracts in 2023 with a combined potential capacity of 2,000 MW. These projects are located in Camarines Norte and Camarines Sur, Northern Samar, Pangasinan, and La Union. The DOE further issued additional four OSW service contracts to 100 percent foreign-owned companies with potential capacity of 3,523.2 MW OSW potential as of the end of 2023. These are Earth Sol Energy Corporation, Blue Circle Philippines Cebu Corporation, Blue Circle Philippines Mindoro Corp., and Envision Energy Philippines Corporation. RE Trust Fund (RETF). The issuance of DC2022-06-0016 on 10 June 2022 covers the fund sourcing, accounting, and audit of the RETF. It also provides guidance to RETF contributors and concerned DOE offices on the process of sourcing, billing, collection, remitting, accounting, and auditing the RETF. Green Energy Option Program (GEOP). As of December 2023, 19 GEOP Operating Permits were issued to RE Suppliers, while 286 customers have switched to GEOP equivalent to 96.3 MW non-coincidental peak demand (Table 25). Net Metering. Published the “Guidebook on Net Metering in the Philippines” on 22 April 2022, providing the guidelines, standards, and procedures for all net-metering arrangements from offer to after-sales services by installers and practitioners. As of December 2023, 11,707 end-users are registered under the Net-Metering Program with a total rated capacity of 101.5 MWp. Table 25. Summary of GEOP End-Users (As of December 2023) End-Users Capacity (kWp) Luzon Grid 208 66,224 Visayas 78 30,148 286 96,372 Total Feed-in-Tariff (FiT) System. The DOE issued a certification in June 2022 increasing the installation target for run-ofriver (ROR) hydropower from 250 MW to 350 MW. As of December 2023, 174.63 MW of the FiT Installation target remains unsubscribed. Plans and Programs The DOE has taken a proactive approach in developing a comprehensive roadmap that serves as a guiding framework for achieving the country’s transition and decarbonization goals. It outlines clear targets, strategies, and actions required to facilitate RE deployment and steer the pathway toward a sustainable and low-carbon future. The roadmap, as shown in Figure 10, also provides a holistic view of the necessary steps and measures needed to accelerate the development and integration of RE into the country’s energy mix. The DOE foresees achieving a 35 percent share by 2030, 50 percent by 2040, and more than 50 percent by 2050 in the power generation mix. Key actions and strategies have been adopted to improve the positioning of RE in the country’s energy landscape through the creation of a conducive business environment, the establishment of efficient support infrastructure, and continuous promotion and enhancement of research, design, and development agenda for RE in the country. The GEA-2 generated a total of 3,440.756 MW RE capacities wherein more than half is from ground-mounted solar with a total of 1,878.98 MW, while 9.390 MW, 90 MW, and 1,462.384 MW are for rooftop solar, floating solar, and onshore wind, respectively. 58 DC2022-11-0034 “Prescribing Amendments to Section 19 of DC2009-05-0008” issued on 15 November 2022 57 44 Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-055.pdf === Figure 10. Renewable Energy Roadmap Short Term Medium -Long Term 2023-2024 2025-2050 Acceleration of Renewable Energy Positioning • Promulgate and Implement the National Renewable Energy Program (NREP) 2023-2050 • Enforce and continue to assess and monitor the effectiveness of promulgated RE policies and programs: Renewable Portfolio Standards (RPS) for On-Grid and Of-Grid Areas, Green Energy Option Program (GEOP), and Net-Metering Program • Declare the Full Commercial Operations of the REM • Conduct Open and Competitive Selection Process (OCSP) 4 • Utilize the Renewable Energy Trust Fund (RETF) • Continue conduct and implementation of Green Energy Auction Program (GEAP) • Develop and implement the “Roadmap for Geothermal Derisking of the Philippines” • Promulgate and Implement the Expanded Roof-mounted Solar Program • Formulate policy for other market mechanisms for large/impounding hydropower projects (HPP), pumped storage HPP, and ocean energy facilities • Enactment of the Waste-to-Energy (WTE) Bill • Promote and develop WTE facilities Creation of Conducive Business Environment • Implement the revised Omnibus Guidelines on the Award and Administration of RE Contracts and Registration of RE Developers • Continue Compliance with ARTA (RA 11032) & EVOSS (RA 11234) • Conduct Information, Education, and Communication (IEC) Campaigns and Forums on various RE policies and programs and investment opportunities • Intensify promotional activities to increase participation in voluntary markets such as Net-Metering and GEOP • Ease access to RE incentives and financing • Streamline the requirements for roof-mounted solar and own-use • Conduct jointly with IPO B2B Matching (RE Developers, Financing. EPC, Foreign and Local Investors among others) Reliable and Efficient Infrastructure Promote and Enhance Research, Design & Development Agenda • • • • Prioritize and fast-track grid connection of RE facilities Promulgate an Amendment to the RESHERR Issue the Dam Safety Guidelines of the Philippines Ensure Compliance of RE Developers with the Resiliency Policies of the DOE • Establish Additional Affiliated Renewable Energy Centers (ARECs) • Continue the conduct of Resource Assessments for RE development • Assessment of WTE potential in the Philippines • Optimization studies for hydropower projects • Conduct studies for OSW • Marine Spatial Planning Study • Permitting and Consenting Study • Grid Integration Study • Continue the implementation and development of policies, plans, and programs to accelerate the development and utilization of RE resources • Continue the improvement of the administrative processes of RE Applications Continue the conduct of review on the effectiveness & efficiency of RE plans and programs, and its necessary development to attract more investments • • Continue the monitoring of RE projects’ compliance to RESHERR and Resiliency Policies of the DOE • Conduct Geothermal Play Fairway Analysis on major gelogic settings in the Philippines to narrow down geothermal prospects Conduct feasibility studies and develop a policy on emerging technology and Direct Use/Nonpower applications of geothermal energy Establish a research and knowledge center for ocean energy Conduct an Inventory of sea-water pumped storage system Continue the conduct of Resource Assessments for RE development • • • • 2050 OBJECTIVE Attaining the target of at least 35% renewable energy share in the power generation mix by 2030, 50% by 2040 and more than 50% by 2050 1. Acceleration of RE Positioning Serving as the foundation for strengthening the RE stance in the energy sector is the continued implementation, assessment, and development of key policies and programs. Underlying strategies must be put into effect to create sustained demand and encourage private-sector investments. For the near term, the DOE will work on realizing the following: • Full implementation of RPS for both on-grid and off-grid areas; • Declaration of the full commercial operation of the REM; and, • Continuous conduct of GEA to encourage greater RE investments by facilitating a centralized, transparent and competitive selection of RE projects through an electronic bidding process. It also supports the RPS by allowing RE generated from winning GEA plants to be eligible for RE Certificates, which Mandated Participants can use to comply with their RPS requirements. The DOE is also revisiting the status of various ongoing ROR hydro projects to enable the determination of the auction capacities for the succeeding GEA rounds. In preparation for GEA-3, the DOE conducted a public consultation on the draft DC to provide specific auction policy guidelines for non-fit eligible RE technologies in the GEAP. Vo l u m e 2 45 === pep-2023-2050-vol2-section-c-page-056.pdf === To foster a dynamic and competitive environment for RE development, the DOE is actively engaged in the regular conduct of the Open and Competitive Selection Process (OCSP). The OCSP provides a transparent and fair platform for selecting the most suitable developers for various RE technologies. A series of public consultations and identification of PDAs to be offered to qualified RE developers are being undertaken in preparation for the next rounds of OCSP. The PDAs are carefully evaluated based on various factors such as resource availability, infrastructure accessibility, and environmental considerations. Available technical data of the PDAs will be provided to serve as an initial reference for those interested in acquiring rights to develop the RE resources. To ensure consistency and adherence to regulations, the DOE issued DC2023-06-0019 or the Guidelines that outline the requirements and procedures governing the 4th OCSP (OCSP4). Said DC is based on the RE Omnibus Guidelines, providing a clear framework to ensure a fair, standardized, and transparent selection process. For the OCSP4, 20 PDAs were offered, three for geothermal, 14 for hydropower, and three for wind resources. Four applications, covering two geothermal and two wind PDAs, were determined to meet the evaluation criteria and were declared as winning bidders. Another effective mechanism for promoting the efficient and cost-effective commercial application and installation of ROR hydropower projects is the Feed-in-Tariff (FiT) System. By offering a guaranteed tariff rate for a specified period, the FiT System provides certainty and financial stability, making it an attractive option for investors. It is expected that the full subscription of the remaining 174.6 MW FiT installation target (as of December 2023) for ROR hydropower, under the adjusted FiT target, will be completed by 2025. The implementation of the RETF will provide financial support to projects of qualified entities, further promoting and increasing the utilization of RE. Continued coordination among the RETF obligors, namely, the Philippine National Oil Company (PNOC), the Philippine Amusement and Gaming Corporation (PAGCOR), the Philippine Charity Sweepstakes Office (PCSO), and the government shares collected from the development and use of indigenous non-renewable energy resources will be undertaken to facilitate the transfer of their respective shares to the RETF Trust Account. The procedures for billing, collection, and remittance of the RETF shall apply to the three RETF sources – a) collection from RETF contributors; b) one and one-half percent (1.5%) of the government share collected from conventional energy service contractors; and c) DOE collection from contributions, grants, and donations in the form of cash, any revenues generated from the utilization of the RETF, and proceeds from fines and penalties imposed under the RE law. The DOE, through the RETF Committee, is looking into tapping the expertise of the DOST to operationalize the RETF. A Memorandum of Agreement (MOA) on the implementation of RETF projects is being considered, with areas of cooperation focusing primarily on research and development and the development and operation of new RE resources, as well as the mechanisms for fund utilization. The continuous implementation and further promotion of voluntary policies and programs will also be carried out, including Net Metering and GEOP. Resource-specific policies and programs will also be prioritized to further boost the development of RE resources, which include the following: • Development and implementation of the “Roadmap for Geothermal Derisking of the Philippines”. The project is in partnership with the Asian Development Bank (ADB) and kicked off on 20 September 2022. It aims to identify, evaluate, and recommend de-risking strategies to encourage and accelerate geothermal energy development in the country. The project is expected to produce the reports on the following aspects: 1. 2. 3. 4. 46 Geothermal Potential Estimation and Risk Report – sizing the risks and opportunities of 30 selected geothermal areas in terms of MW capacity and possible challenges for development; Market Risk Reduction Report – analysis of the identified geothermal areas, barriers to development, and the effectiveness of current incentive schemes, including international experience to address barriers will also be provided; Drilling Risk Reduction Report – assessment of the same areas with a focus on possible technical drilling risk mitigations to pass the exploration drilling phase; Drilling Risk Sharing Report – analysis of different approaches to risk mitigation, identifying the most suitable ones for application in the Philippines including input from stakeholders; and, Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-057.pdf === 5. Geothermal Derisking Roadmap Final Report – final output, the culmination of all reports and workshops. The report will lay out the recommendations and corresponding timelines to derisk geothermal development. • Promulgate the Expanded Roof-mounted Solar Program (ERSP). The ERSP provides opportunities to electricity end-users and solar PV developers and installers to contribute to the growth of RE by utilizing available rooftop spaces for solar energy production. It will not only empower electricity end-users to produce electricity but will also enable them to use it or sell the excess generation to the grid, beyond the current limit of 100kW under the net metering program. Taking advantage of the entry of solar technologies, particularly rooftop solar, the DOE issued DC2023-12-0035, “Prescribing the Policy and General Framework on the Expanded Roof-Mounted Solar Program in the Philippines,” which introduced three innovative business models: (1) Supply Contingency Option; (2) Lease-to-Generate Option; and (3) Restricted Peer-to-Peer Energy Trading. The ERSP aims to attract more investments in RE leading to an additional supply of electricity through these business models, at the same time empowering electricity endusers/building establishments in using/hosting rooftops for solar photovoltaic technologies and decongest the transmission and distribution networks by increasing electricity demands. • Implement the Policy and Administrative Framework for OSW Development pursuant to EO 21 for the immediate development of OSW in the country. The implementing guidelines of EO 2159 or EO 21-IG shall provide for its effective implementation and execution, which shall include, among others, the different development stages of OSW projects encompassing the corresponding permitting requirements and processes by the concerned government agencies and institutions, as well as support facilities. • The DOE will also encourage the development of the mining sector and the processing of critical minerals and materials, such as copper, nickel, cobalt, aluminum, and iron as these are essential components in the production of solar panels, wind turbines, and batteries. Copper is extensively used in the electrical wiring and connections for solar panels and wind turbines, while aluminum is utilized in the construction of lightweight frames and components for solar panels and wind turbines, aiding their durability and efficiency. • Formulate a policy for other market mechanisms for large/impounding and pumped storage hydropower projects, and ocean energy facilities. A comprehensive policy framework should provide clarity, transparency, and supportive measures to facilitate investment, promote deployment, and achieve sustainable energy goals. • Enactment of the Waste-to-Energy Bill as policy support for further promotion and development of WTE facilities. The DOE encourages the procurement of energy from WTE facilities in recognition of the technology’s twin socio-economic benefits on local government units’ solid waste management and countryside electrification. • Explore co-firing biomass with coal. Co-firing biomass with coal is a potential transition strategy to diversify the use of RE while reducing greenhouse gas (GHG) emissions in the power generation sector. It also helps tap local biomass resources, promoting sustainable utilization and providing additional income opportunities for farmers and rural communities. 2. Creation of a Conducive Business Environment A conducive investment climate serves as the backbone for inclusive and sustainable growth in RE development and competitiveness. This involves streamlining regulatory processes, simplifying permitting procedures, and providing clear guidelines and incentives. Enhancing the ease of doing business encourages private sector participation and promotes the growth of the RE market. To improve domestic enabling conditions in mobilizing finance and investment for RE projects and strengthen the industry, the DOE is looking at amending the “Omnibus Guidelines on the Award and Administration of RE Contracts and Registration of RE Developers”. The amendments will streamline the RE project application process including the requirements for possessory rights, roof-mounted solar, and own-use projects. 59 DC2023-05-0013 issued on 18 May 2023 Vo l u m e 2 47 === pep-2023-2050-vol2-section-c-page-058.pdf === The DOE is also committed to complying with Republic Act (RA) 11234 or the “Energy Virtual One-Stop Shop (EVOSS)” and RA 11032 or the “Ease of Doing Business and Efficient Government Service Delivery Act” to address complex permitting processes which is one of the major hurdles in RE development. The continuous conduct of IEC campaigns and forums on various RE policies and programs, including investment opportunities and intensifying the promotion of voluntary RE markets (Net-Metering and GEOP), will increase RE literacy and end-user participation in RE programs. Constant coordination with the appropriate government agencies and funding institutions will be made to ease access to RE fiscal incentives and financing. 3. Reliable and Efficient Infrastructure The DOE continues to work on enforcing internal and external operational safety guidelines for all RE facilities through the stringent implementation of the Renewable Energy Safety, Health, and Environment Rules and Regulations (RESHERR) Code of Practice and ensure compliance of RE developers with the Department’s resiliency policies. The strict enforcement of these regulations is guided by the objective of mitigating potential risks and hazards associated with RE facilities, safeguarding the well-being of both personnel and the environment, and making sure that RE developers adhere to high standards of safety and resilience. Further, the DOE is prioritizing the establishment of the Dam Safety Guidelines for the Philippines to warrant the safety and safe operations of dams and reservoirs under normal and extreme events. This will build the preparedness of the downstream communities from the adverse impacts of dam failure, or an uncontrolled release of the water stored in the reservoir. 4. Promote and Enhance Research, Design, and Development Agenda Advancement of RE entails the continuing conduct of resource assessment, research, and studies in collaboration with energy stakeholders. These shall focus on WTE potential, optimization studies for hydropower projects, marine spatial planning, permitting and consenting, and grid integration studies for OSW. The DOE is also committed to collaborating with local and international development organizations to initiate comprehensive studies in the following key areas: • • • • Geothermal Play Fairway Analysis in major geologic settings in the country to narrow down prospective areas; Feasibility studies for policy development on emerging technology and direct use/non-power applications of geothermal energy; Inventory of seawater-pumped storage system; and, Establishment of a research and knowledge center for ocean energy for the medium- to long-term period. Investment and Employment Opportunities Creating enabling policies and regulatory frameworks and intensifying private sector partnerships and support from financial institutions are essential elements for realizing greater RE integration and transition to a clean economy. These are crucial in facilitating access to financing and investments for RE projects. Such will not only drive economic growth but also create job opportunities, as well as contribute to the localization of RE technologies. The increasing share of RE implies a surge in exploration and development activities during the planning period. An estimated 50.7 percent (REF), 64.9 percent (CES 1), and 70.7 percent (CES 2) of the total additional required powergenerating capacity will be sourced from renewables within the planning horizon. This corresponds to an equivalent capacity of 98.5 GW, 106.6 GW, and 106.9 GW, respectively (Table 26). Notably, the capacity addition requirement from RE in both CES is about 8.0 percent higher compared with the REF. This signifies the potential to further expand and accelerate RE deployment and underscores the importance of embracing sustainable energy alternatives. 48 Philippine Energy Plan === pep-2023-2050-vol2-section-c-page-059.pdf === Table 26. Summary of Investment Cost Under the Pre-Development Stage Total Capacity Addition (MW) 2023-2028 Resources REF CES 1 Investment Cost* (PhP Million @2022 Prices) 2029-2050 CES 2 REF CES 1 2023-2028 CES 2 REF CES 1 2029-2050 CES 2 REF CES 1 CES 2 Biomass 42 122 122 50 16 16 - - - - - - Geothermal 425 425 425 930 580 580 5,197.24 5,197.24 5,197.24 11,372.79 7,092.71 7,092.71 Solar 9,328 6,231 6,231 45,620 46,934 27,890 519.40 346.92 346.92 2,540.15 2,613.30 1,552.93 Hydro 295 770 770 9,970 6,030 5,410 350.93 915.43 915.43 11,848.51 7,166.15 6,429.33 Wind 3,700 5,910 7,371 28,142 39,550 58,137 382.19 665.63 816.54 3,094.36 4,567.84 7,331.78 Onshore Wind 3,700 3,910 5,371 21,342 22,050 10,037 382.19 403.88 554.79 2,204.41 2,277.54 1,036.72 Offshore Wind - 2,000 2,000 6,800 17,500 48,100 - 261.75 261.75 889.95 2,290.30 6,295.06 13,791 13,458 14,919 84,712 93,110 92,033 6,449.76 7,125.22 7,276.13 28,855.81 21,440.00 22,406.75 Sub-Total Total 2023 - 2050 REF 98,502 35,305.57 CES 1 106,568 28,565.23 CES 2 106,952 29,682.88 2023 - 2050 Note: Although biomass and solar are only required to secure operating contracts, pre-development activities are still needed, such as the conduct of feasibility studies and securing of permits. *Average pre-development investment cost per technology based on the service contracts issued. Table 27. Job Generation Resources Jobs Generation REF Biomass Geothermal CES 1 CES 2 - - - 6,323 4,690 4,690 6,255 Solar 10,074 9,747 Hydro 15,398 10,200 9,270 Wind 17,616 41,072 94,957 Offshore Wind 12,458 35,724 91,783 Onshore Wind 5,159 5,348 3,174 Total 49,411 65,709 115,173 The envisioned expansion of RE capacities entails an estimated investment of PhP35,306 million (USD641.9 million60) for predevelopment in the REF as shown in Table 26. The pre-development investment in the CES 1 is 19.1 percent lower than the REF due to the displacement of some hydropower and geothermal capacities, which require higher investment costs, as a result of the entry of 19 GW offshore wind. On the other hand, investment for CES 2 is 15.9 percent lower than the REF and 3.6 percent higher than CES 1 owing to the displacement of onshore wind with lower investment cost because of much higher penetration of offshore wind (50,100 GW). The investment requirement has the potential to generate an estimated 49,411 job opportunities in the REF, 65,709 in the CES 1, and 115,173 for the CES 2 (Table 27). By channeling funds into RE projects, the country’s clean energy supply is not only enhanced but also contributes to the creation of employment opportunities for Filipinos. 60 Forex Rate used PhP55.0/USD Vo l u m e 2 49 === pep-2023-2050-vol2-section-c-page-060.pdf === D. ENERGY EFFICIENCY AND CONSERVATION Republic Act (RA) 11285 or the Energy Efficiency and Conservation Act provides the policy framework that institutionalizes and mandates the efficient use of energy in the country. It serves as the foundation and guidepost for greater involvement of both national and LGUs and in collaboration with the private sector for its implementation to achieve the desired outcome of significant energy intensity reduction. Energy efficiency and conservation (EEC), as a fundamental policy, will ease the country’s dependence on imported fuels, as well as improve the way energy is used in the economy. With barely four (4) years since the law’s enactment, although slighted by the health pandemic in 2020, the DOE has already implemented several measures towards increasing the role of energy efficiency (EE) in the energy agenda and in decarbonizing the energy system. Likewise, EEC is considered a tool (mitigating measure) to address and soften the impacts of short- to long-term non-foodrelated inflation. The EEC drives behaviors and practices that result in reducing energy demand and promoting system efficiency. In 2023, the DOE prioritized the following initiatives: Government Energy Management Program (GEMP) The DOE continues to call on the government sector to strictly implement the GEMP in order to provide a significant contribution in reducing energy demand, abating greenhouse gas (GHG) emission, and fostering the government’s transition to a more sustainable and energy-efficient building infrastructure to address the growing demands of the economy. This program specifies the government’s goal of reducing its monthly electricity and fuel consumption by at least 10 percent. To achieve this goal, the Inter-Agency Energy Efficiency and Conservation Committee (IAEECC) issued a resolution to strengthen the implementation of the GEMP. To date, the Committee has issued a total of nine (9) resolutions (please see Annex 7) which provide government entities with strategic direction toward the adoption and implementation of EEC. Such includes strict compliance with the GEMP Guidelines, use of EE light emitting diode (LED) lamps and inverter-type airconditioning units or similar equivalent technologies, among others. Moreover, the GEMP also allows the implementation of demonstration projects for the installation of rooftop solar photovoltaic (PV in government-owned buildings/facilities) to showcase the viability of renewable energy (RE) technology as one of the many effective and reliable EEC solutions in the country. In 2023, three (3) demonstration projects were completed and resulted in a decrease in the monthly electricity consumption of the following recipient government entities: 1. 2. 3. Mariano Marcos State University with 4,971 kilowatt-hours (kWh); National Economic and Development Authority (NEDA) Region IX with 1,426 kWh; and DOE Luzon Field Office with 2,400 kWh. In 2023, the IAEECC likewise issued a Resolution61 to encourage government entities to observe flexible work arrangements to mitigate abrupt increase in power demand, address the effect of steep global prices of petroleum products in the local market, and assist in alleviating traffic congestion. In terms of monitoring and implementation of GEMP, the DOE conducts energy audits and spot checks to all government entities nationwide. As of 31 December 2023, a total of 1,038 government offices were spot-checked and 938 were audited. To date, the government was able to save 30,060.58 megawatt-hours (MWh) of electricity and 386,083.59 liters of fuel, equivalent to total savings of PhP325.76 million worth of government funds. 61 50 IAEECC Resolution No. 7, s. 2023 Philippine Energy Plan