=== pep-2023-2050-vol2-section-e-page-071.pdf === Table 34. Memorandum of Agreement (MOA) with Government Agencies and Academe Partnership MOA with DOST-PCIEERD74, UP-NCTS75, UP-EEEI76, Cagayan State University (CSU) R&D Project Resulting Outcome Prototyping of original equipment manufacturer (OEM) autoLPG jeepney An OEM design that conforms to the Philippine National Standard (PNS) for public transport applications has been successfully fabricated and constructed. Development of Certification Protocol for Minimum Energy Performance (MEP) of electric vehicle charging station (EVCS) An accreditation process requirement on charging infrastructure was developed for investors and a study was conducted on applicable charging modes for local adoption. Installed three (3) different charging stations intended for e-trikes – one (1) unit slow charger with 3kW capacity, two (2) units fast charger with 5kW capacity, and one unit fast charger with 5kW capacity assisted charger through PV solar grid-tied. Field demonstration of fast EVCS Prototyping of gym and playground equipment that can harness energy from human kinetics to produce usable energy MOA with Cavite State University (CvSU) Conduct of actual road performance data gathering of DOE-acquired hybrid and EVs Development of a Technical Education and Skills Development Authority (TESDA)aligned EV technician course module for registration as National Certification-Level II. MOA with DOST and UP Diliman Determination of Optimal Placement of EVCS in a Local Public Transportation System to establish a framework for research collaboration activities between the DOE and DOST-PCIEERD for the review, evaluation, monitoring, and implementation of programs under the Science and Technology for Energy Application (STEA) aimed at identifying appropriate emerging technologies for EVs that are aligned to the needs of the industry Gym equipment prototypes have been developed and an application for a patent has been filed by CvSU. Likewise, consultations were held with gym owners for a potential MOA engagement toward the integration of the prototypes in their gym facilities. The outcome of the project will further support the promotion of using energy-efficient alternative vehicles based on gathered data. Performance data were also gathered from the actual road testing of Toyota Prius hybrid EV, Mitsubishi Outlander plug-in hybrid EV, and Mitsubishi i-MiEV pure EV. A Competency Standards for EV Servicing has been developed (information is available on the TESDA website). A methodology was developed and piloted a network of charging equipment. Prepared the techno-economic viability and performance analysis, and characterization of e-trikes and fast chargers. Conducted the inauguration of the Quezon City Solar Electric Vehicle Charging Network. Prototype of two SESSY E-boat vessels monohull and catamaran. MOA with DOST-PCIEERD and UP Diliman Development of a prototype of safe and sustainable Solar Assisted Electric Motor-Powered Boat (SESSY E-Boat) for passenger and tourist transport The monohull e-boat was showcased at both PhilMarine 2023 at SMX Convention Center-Manila and the National Science and Technology Week 2023 in Iloilo City on 22-26 November 2023. The prototypes are undergoing testing prior to the actual sea trial. On-going coordination with LGU for a potential partnership for the installation and demonstration of an EV Charger for the ESESSY E-boats. Another significant milestone in alternative fuels development is the implementation of the MOA between the DOE and the DOST-Industrial Technology Development Institute (DOST-ITDI) on the Fuel Cell Research and Development and Testing Facility. The facility was inaugurated on 6 July 2023, which is located at the DOST compound, making it the first of its kind in the country. It is entirely dedicated to fuel cell technology R&D with strong emphasis on advancing materials development, fostering innovation for specific cell components, and addressing the current barriers of fuel cells such as its performance and durability. The Fuel Cell R&D and Testing Facility is located at the DOST Compound in Taguig City. 74 75 76 Department of Science and Technology-Philippine Council for Industry, Energy and Emerging Technology Research and Development University of the Philippines – National Center for Transportation Studies UP-Electrical and Electronics Engineering Institute Vo l u m e 2 61 === pep-2023-2050-vol2-section-e-page-072.pdf === DOE Secretary Raphael P.M. Lotilla (3rd from left) and DOST Secretary Renato U. Solidum, Jr. (2nd from left) during the ribbon-cutting of the Fuel Cell R&D and Testing Facility. This ongoing multi-year partnership is set to be completed in 2024. As the project progresses to the testing phase, validations will be undertaken to check if the advancements made in materials development and The partnership further seeks to establish a comprehensive testing facility that will leverage the collective expertise and component fabrication of the fuel system meet the required standards and can operate effectively under capabilities of the Philippines and accelerate the development and deployment of fuel cells. This will eventuallyjumpstart various conditions. Given the expected significant project outcome, the objective is to conduct a pilot and energize hydrogen production and utilization as another clean energy option for the country. demonstration of the locally developed fuel cell for transport vehicles. This will illustrate the actual application and potential advantages of clean energy technology, leading to its broader adoption and integration in the The DOE believes that the integration of fuel cells and RE will play a pivotal role in establishing a robust future. and diverse energy system for the country. This will support the production of sustainable power without any carbon emission for a wide range of applications, including transportation, industry operation, and The partnership further seeks to establish a comprehensive testing facility that will leverage the collective electrification of unserved and underserved communities within the country. Ultimately, the utilization expertise and capabilities of the Philippines and accelerate the development and deployment of fuel cells. of fuel cell technology has the potential to enhance energy access and security. This will eventually jumpstart and energize hydrogen production and utilization as another clean energy option for the country. Prioritization / Promotion. Cognizant of the importance of partnerships, the DOE actively engages with key players to foster knowledge exchange, share best practices, and leverage resources to help accelerate the development and The DOE believes that the integration of fuel cells and RE will play a pivotal role in establishing a robust deployment of new and emerging energy technologies. The conduct of rigorous research and analysis is guided with and diverse energy system for the country. This will support the production of sustainable power without the aim of staying updated on the latest advancements in the field as this will allow for the identification of promising any carbon emission for a wide range of applications, including transportation, industry operation, and technologies and fuels that have the potential to contribute to the country's energy transition. electrification of unserved and underserved communities within the country. Ultimately, the utilization of fuel cell technology has the potential to enhance energy access and security. The consistent conduct of information, education, and communication (IEC) campaigns on AFETs remains an integral part in raising awareness, educating, and disseminating knowledge to accelerate greater public acceptance. In 2022, 17 Prioritization / Promotion. Cognizant of the importance of partnerships, the DOE actively engages with key IEC campaigns were conducted in different schools and universities, local government units (LGUs), national government players to foster knowledge exchange, share best practices, and leverage resources to help accelerate the offices, and transport groups. development and deployment of new and emerging energy technologies. The conduct of rigorous research and analysis is guided with the aim of staying updated on the latest advancements in the field as this will allow for the identification of promising technologies and fuels that have the potential to contribute to the country’s energy transition. The consistent conduct of information, education, and communication (IEC) campaigns on AFETs remains an integral part in raising awareness, educating, and disseminating knowledge to accelerate greater public acceptance. In 2022, 17 IEC campaigns were conducted in different schools and universities, LGUs, national government offices, and transport groups. 62 Philippine Energy Plan === pep-2023-2050-vol2-section-e-page-073.pdf === DOE and DOST Officials tour around the Fuel Cell R&D and Testing Facility workspace and witness its state-of-the-art equipment. Plans and Programs The vision for mainstreaming AFETs is to create a landscape where government and society harmoniously co-exist with the environment, both ecologically and economically. The DOE’s commitment demonstrates its drive to stay at the forefront of technological advancements in the transition to a cleaner and more sustainable energy future (Figure 15). Figure 15. Alternative Fuels and Emerging Energy Technologies Roadmap Short-Medium Term Medium Term 2023-2028 Alternative Fuels (AFs) (e.g. Sustainable Aviation Fuel (SAF), Hydrogen and its Derivatives) • Determination of local feedstock for AF’s production • Pilot demonstration on the production of AFs Long Term 2025-2028 • Development plan preparation on the identified feedstock for propagation and supply management • Pilot demonstration on the utilization of locally produced AFs 2029-2050 • Mainstreaming on the utilization of locally produced AFs • Production of AFs using locally sourced feedback • Assessment/evaluation of alternative fuels and new and emerging energy technologies such as hydrogen and its derivatives (ammonia) for power generation • Formulation of plans, programs, and regulations to support alternative fuels and new and emerging energy technologies • Collaboration with government and private sector, academe, and other organizations for the development, demonstration, implementation, and management of projects and programs on alternative fuels and new and emerging energy technologies • Conduct of IEC campaigns on the benefits of alternative fuels and energy technologies 2050 OBJECTIVE Secured and stable supply of energy through technology-responsive energy sector Determination of Local Feedstocks for AF production. An identified approach that is vital to the national strategy of reducing GHG emissions is the use of viable alternatives to fuel fossils such as SAF and hydrogen and its derivatives. Vo l u m e 2 63 === pep-2023-2050-vol2-section-e-page-074.pdf === However, the current production methods for both greatly rely on non-renewable sources like petroleum and natural gas. To gain momentum in the shift towards utilizing renewable sources for SAF and hydrogen production in the shortterm, the DOE plans to identify alternative feedstocks that can be utilized for its production without compromising the existing demand for essential resources (i.e., exploration of feedstocks such as sugarcane and coconut for biofuel production and food consumption). This will be followed with the formulation of a development plan in the mediumterm that encompasses activities such as plant propagation for organic feedstock or supply chain management for inorganic feedstock. Moving forward, the DOE will devise the conduct of pilot demonstration to highlight and provide tangible evidence on the practical utilization and feasibility of produced SAF or hydrogen in transport vehicles. This is a crucial step in validating the viability and efficiency of the renewable SAF and hydrogen and its derivatives. The insights gained from the pilot demonstration will hold the potential to further guide the optimization efforts and provide valuable data for refining production processes, accelerating the integration and mainstreaming of SAF into the aviation sector. With this, the DOE is committed to promoting R&D on SAF through collaborations with research institutions and state universities or colleges. The study will focus on ways to maximize GHG reduction in the process of production, while minimizing competition with food production and other essential needs for optimized fuel yield. This will also serve as the basis for developing a comprehensive plan and strategy for SAF production in the country, such as selecting suitable feedstocks and developing resource optimization techniques. The plan will also include assessing environmental impacts, creating a robust supply chain framework, establishing production facilities, advocating for supportive policies, and engaging local communities for environmental and economic sustainability while promoting awareness of the benefits of SAF production. The adoption of SAF aligns with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), a globally harmonized strategy for curbing emissions from international aviation while minimizing market distortion. As a member state of the International Civil Aviation Organization (ICAO), the Philippines through the DOE, stands committed to ensuring that the aviation industry complies with the CORSIA offsetting requirements on a triennial basis. The development of SAF will further promote eco-friendly practices since it is a renewable alternative to fossilbased jet fuel with similar chemical properties as conventional fuel. Hydrogen and its Derivatives The country’s energy transition pathway seeks to explore low-carbon fuels and advanced technologies, with the overarching goal of diversifying the energy mix and mitigating GHG emissions. In recent years, there has been an increasing recognition of the extensive potential and diverse applications that hydrogen offers to enhance energy sustainability. These developments underscore the transformative role that hydrogen plays in reshaping the energy landscape. In this context, the development and domestic production of hydrogen and its derivatives emerge as a promising, innovative, and eco-friendly energy solution that can substantially support the ongoing energy transition efforts. In 2020, the DOE established the Hydrogen and Fusion Energy Committee (HFEC) to study the impact of hydrogen’s use for both power generation and transportation in the country’s energy mix. The study done by HFEC pointed out the need for policy support and intervention in promoting hydrogen use, due to its high production costs. Additionally, a separate study was undertaken to develop a policy framework and strategic roadmap for hydrogen and ammonia utilization. Further, the DOE has entered into collaborative agreements with international companies and organizations from Australia, France, Japan, and Germany. These partnerships aim to explore the application of hydrogen as a cleaner energy source for natural gas-fired power plants as well as for fuel cell technology. Some power-generating companies are now also studying the possibility of ammonia (as a derivative of hydrogen) co-firing with coal power plants. The Aboitiz Power Corporation signed an MOU with JERA, and Quezon Power Ltd. Company (QPL) of Thailand’s Electricity Generating Public Company Limited (ERGO) Group entered into an MOU with South Korea firm Doosan Enerbility Co. Ltd to study the feasibility of ammonia co-fired generation with coal. 64 Philippine Energy Plan === pep-2023-2050-vol2-section-e-page-075.pdf === Under the Indo-Pacific Economic Framework for Prosperity (IPEF), the 14 member countries (Australia, Brunei, Fiji, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand, Vietnam, and the US) expressed interest in pushing for cooperation on hydrogen and its derivatives. Discussions are ongoing to advance these initiatives, including the establishment of work streams or groups and the convening of fora. It is necessary to outline these developments in the country’s strategic roadmap for hydrogen and its derivatives as presented in Figure 16. • Pursue Policy and Research Development on Hydrogen and its derivatives as energy sources. In recognition of the potential of hydrogen and its derivatives, there is a need to evaluate which type offers costeffective low-carbon energy sources and carriers. Realizing the potential of the said fuel requires in-depth R&D to identify their viability as fuel for transport and power generation sectors. The DOST-PCIEERD also identified hydrogen and its derivatives as a priority project in its call for proposals. • Establish a National Policy Framework. An enabling policy and/or legislation is deemed necessary to provide a strong foundation in accelerating the implementation of the corresponding plans and programs in the roadmap. This will provide a signal to the private sector, investors, as well as development partners to embark on hydrogen and its derivatives as alternative fuels for power and transport, among others. The DOE is currently working on the issuance of a Department Circular (DC) that will provide a national policy and regulatory framework, and guidelines for implementing projects related to hydrogen. It also covers all activities related to R&D, production, storage, transmission, distribution, utilization, construction, operation, and maintenance of hydrogen project facilities. The policy will also put in place public safety codes and standards to ensure the safe operation, handling, and utilization of hydrogen and its corresponding systems. Likewise, a Hydrogen Energy Industry Committee (HEIC) will be established to oversee the implementation of the outlined guidelines in the DC. Figure 16. Roadmap for Hydrogen and its Derivatives Source: Energy Policy and Planning Bureau (EPPB) 2023 Study on “Developing a National Hydrogen-Ammonia Policy Framework and Roadmap for the Philippines” Vo l u m e 2 65 === pep-2023-2050-vol2-section-e-page-076.pdf === • Institutionalize Development Partnership. Building upon existing collaborations with other countries that utilize advanced R&D, the institutionalization of international development partnerships becomes imperative in advancing the country’s hydrogen agenda and initiatives. By strategically leveraging the knowledge, resources, and experience of its international partners, the Philippines is poised to significantly accelerate its efforts in harnessing the vast potential of hydrogen and its derivatives as cleaner and more sustainable energy sources. • Infrastructure Support Development. Establishing the necessary support infrastructure for hydrogen and its derivatives involves encouraging private sector investments, while concurrently facilitating the construction of essential facilities. These facilities encompass the entire value chain spanning from the production and importation stages to storage, transportation, distribution, and utilization. Under the draft DC for hydrogen, the government will offer a range of fiscal and non-fiscal incentives to attract and support prospective stakeholders. Actively encouraging private sector involvement and creating a conducive environment for infrastructure development can effectively promote the widespread adoption and utilization of hydrogen technology in the country. To further accelerate the development of hydrogen and its derivatives in the country, the following recommendations are proposed: • • • • • • • Establish an Inter-Agency Committee focused on the development of hydrogen and its derivatives; Undertake extensive research and studies; Conduct of resource assessment; Formulate a clear policy statement and strategy/roadmap on the development of hydrogen and its derivatives; Collaborate with local and international development partners; Formulate a master plan for the development and/or utilization of hydrogen and its derivatives; Direct the Philippine National Oil Company (PNOC) through its subsidiaries to conduct feasibility and technical studies, and possible investment in hydrogen (and its derivatives) projects for power generation Continuing Initiatives on AFETs Continuous assessment and evaluation of AFETs and strengthening of partnerships. The DOE will continuously monitor existing AFET projects to assess and evaluate their viability. Correspondingly, the DOE will actively pursue partnerships with both local and international institutions in the conduct of research, validation of emerging energy technologies, and feasibility for local adoption and mainstreaming of AFETs. Formulation of comprehensive plans, programs, and regulations. The DOE will enhance the implementation of its programs to advance and integrate AFETs by formulating policies and providing vital technical inputs for the establishment of standards and protocols. The provision of a supportive framework for the adoption and integration of new and emerging technologies is essential to foster innovation and ensure successful integration into various sectors. Establishing clear guidelines and policies will assist in creating an enabling environment that encourages investment, innovation, and the widespread deployment of new energy solutions. Conduct of regular IEC campaigns. To promote the initiatives on AFETs and intensify its public acceptance, continuous conduct of IEC campaigns will be carried out. Targeted communication strategies will be designed with the aim of educating the public, businesses, policymakers, and other relevant stakeholders on the advantages of adopting new and emerging technologies. Additionally, the potential economic, environmental, and social benefits will also be highlighted. 66 Philippine Energy Plan === pep-2023-2050-vol2-section-e-page-077.pdf === Electric Vehicle (EV) Industry In 2022, the government took a significant step toward energy transition through the enactment of Republic Act (RA) 11697, known as the Electric Vehicle Industry Development Act (EVIDA), along with its Implementing Rules and Regulations (IRR). The EVIDA-IRR encompasses various aspects of the EV industry, including manufacturing, assembly, importation, construction, installation, maintenance, trade, utilization, R&D, regulation, and incentives related to EVCS, equipment, parts and components, batteries, and support infrastructure as R&D centers, training facilities, and waste treatment facilities. Following the promulgation of the EVIDA-IRR is the development of the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI), which serves as the national development plan for the EV industry. It seeks to establish harmonized policy directions and programs to accelerate the development, commercialization, and utilization of EVs in the country, including EVCS, manufacturing, R&D, and human resources. EVIDA Implementation. The transport sector accounts for about a third of the total final energy consumption and around one-seventh of the country's GHG emissions. As global oil prices continue to rise, increasing share of EVs in road transport reduces the country’s dependence on oil and the associated impacts of spiraling prices to the economy. Likewise, greater EV penetration enhances energy security and advances clean energy initiatives toward achieving climate objectives. The EVIDA sets the national objective of EV adoption and diffusion in road transport. The Law mandates EV share in both government and corporate fleets of at least 5.0 percent, building owners and establishments with EVCS to allot proportionate designated parking spaces for EVs, as well as encourages the construction of charging infrastructure in dedicated EV parking slots and in gasoline stations. Further, the distribution utilities (DUs) are expected to provide the necessary power supply for charging stations, which should be included in the Distribution Development Plan (DDP). As embodied in the EVIDA, the CREVI was formulated through intensive collaboration between government lead agencies – DOE, Department of Science and Technology (DOST), and Department of Trade and Industry (DTI) – and stakeholders. Each of the four (4) main components of the CREVI is led by a specific government agency: 1. 2. 3. 4. EVs and EVCS (DOE in coordination with the Department of Transportation or DOTr); Manufacturing (DTI); R&D (DOST); and, Human Resource Development component (DTI) The EVIDA-Technical Working Group (TWG) has also been established to ensure the implementation of harmonized policies and standards and streamlined regulations within the EV industry. The TWG is comprised of DOE, DOTr, DTI, DOST, Department of Environment and Natural Resources (DENR), Department of Public Works and Highways (DPWH), Department of Interior and Local Government (DILG), and the National Economic and Development Authority (NEDA). Establishment of Responsive Policies for the EV Industry. As a move forward, the DOE conducted a series of public consultations to finalize important policies pertaining to the deployment of EVs and EVCS. These policies have been promulgated on 12 May 2023, providing guidance to the industry, namely: • DC2023-05-0010 titled “Guidelines on the Unbundling of Electric Vehicle Charging Station Charging Fee Pursuant to Electric Vehicle Industry Development Act”; • DC2023-05-0011 titled “Guidelines in the Accreditation of Electric Vehicle Charging Station Providers and Registration of Electric Vehicle Charging Stations Pursuant to the Electric Vehicle Industry Development Act”; and • DC2023-05-0012 titled “Guidelines on the Electric Vehicle Recognition and Adoption of EV Standard Classification on Road Transport for Incentive Eligibility Pursuant to the Electric Vehicle Industry Development Act”. Vo l u m e 2 67 === pep-2023-2050-vol2-section-e-page-078.pdf === Simultaneously, the DOE with assistance from the United States Agency for International Development (USAID), developed and launched the EV Industry Portal on 21 June 2023. The online platform allows stakeholders to submit their applications for EVCS Provider Accreditation and EVCS registration online (accessible through the link https:// evindustry.ph). Further, the platform also serves as the national centralized repository of EV and EVCS related data and information, including accredited EVCS Providers offering supply, installation, and maintenance services for EVCS and location of registered EVCS. Comprehensive Roadmap for the Electric Vehicle Industry.77 The EVIDA mandated the formulation of CREVI as a national development plan for the EV industry. The formulation of the CREVI was finalized and unveiled in the second quarter of 2023. It outlines the targets, strategies, and prevailing scenarios within the EV industry, as well as the challenges and individual roadmap for each of the four main components. Consistent with the EV industry goals, the CREVI sets forth a unified path toward its attainment from 2023 to 2040 (and onwards to 2050): • • • • • Increase the utilization of EVs in the domestic market; Deploy a sufficient number of EV charging points across the country between 2023 and 2050; Position the Philippine EV industry to become a producer and exporter of EVs by 2050; Promote sustainable economic growth and just e-mobility transition by protecting employment in the The CREVI envisions “to electrify a diverse range of vehicles and establish a domestic EV industry with strong export potential, with the aim of building a sustainable future, where new EVs and the required infrastructure are locally robust with reduced environmental impact”. automotive industry and providing capacity-building activities and EV-specific transition programs; and, Support R&D in battery, EVCS technology, and digitalization to spur technological innovations and strengthen the competitiveness of the local EV industry. EV Local Scenario The EVs accounted and registered in the country are classified into motorcycles/motorcycles with side car (TC), cars/ sedans, and sport utility vehicles (SUVs) / utility vehicles (UVs). In 2022, the DOTr - Land Transportation Office (LTO) recorded around 9,666 cumulative registered EVs, relatively low compared to the nearly 13.9 million total registered motor vehicles (Table 35). Currently, there are 186 EV models recognized under DC2023-05-0012, which are available in the local market. These comprised 133 models of battery EVs (BEVs), 22 hybrid EVs (HEVs), 10 plug-in HEVS (PHEVs), and 21 light EVs (LEVs). The EVs covered by the EVIDA include BEV, PHEV, HEV, LEVs. The LEVs pertain to EVs weighing less than 50 kilograms (kg) that include personal mobility devices and e-kick-scooters. 77 68 The Handbook for CREVI is available at the DOE website [https://www.doe.gov.ph/energy-efficiency/comprehensive-roadmap-electric-vehicle-industry-0]. Philippine Energy Plan === pep-2023-2050-vol2-section-e-page-079.pdf === Table 35. Cumulative Number of Registered Motor Vehicles in 2022 Type of Motor Vehicle No. of ICEV78 Registration in 2022 Cumulative No. of EV registration (2014-2022) Cars/sedan 1,309,912 347 SUV/UV 3,544,984 1,168 Motorcycles/TC 8,472,466 8,105 Bus 32,470 44 Trucks/trailers 528,232 Total 2 13,888,064 9,666 Source: DOTr-LTO Motor Vehicle Registration Reference (REF) Scenario The CREVI sets a minimum target of EVs constituting at least 10.0 percent of the total fleet across all sectors (except for electric trucks) by 2040 (onwards to 2050) (Table 36). This target is modest, but the near-term focus will be on technology advancements and ramping up of the expansion of local EV production, particularly electric jeepney (e-JP) and e-TC manufacturing. Achieving the objective puts emphasis on capacity building and providing technical assistance to public transport cooperatives. Table 36. Projected Cumulative Vehicle Segment per EV Fleet and EVCS by 2050 (10% EV Share, REF) EV / EVCS Targets Vehicle Type Short Term 2023-2024 Medium Term 2025-2028 Long Term 2029-2050 Total EV Type HEV 48,348 161,622 238,929 448,899 PHEV 8,061 26,940 169,594 204,595 BEV 8,061 26,940 948,194 983,195 Tricycle BEV 22,258 74,414 399,444 496,116 Motorcycle BEV 97,818 327,029 2,243,094 2,667,941 Cars (Sedan, SUV, UV) Bus 379 1,263 6,942 8,584 Total EVs BEV 184,925 618,208 4,006,197 4,809,330 EV Charging Stations 5,188 17,338 150,916 173,442 *EV share from the total projected vehicle fleet The REF scenario necessitates an additional energy demand of 4,748 GWh equivalent to 0.54 GW of power requirement by 2050. The scenario also results in emission reduction in the transport sector by 55.37 million tons of carbon dioxide equivalent (MtCO2e) in 2050. Clean Energy Scenario (CES) The CES is a more aggressive picture for the industry as it sets a target of at least 50.0 percent EV share of total fleet by 2040 (onwards to 2050). This will cover all sectors except for household, which has an indicated target of 10.0 percent share of the total fleet by 2050 (Table 37). The covered sectors including the targets (per vehicle type) are as follows: • Tricycles/motorcycles – 50.0 percent EV share in the total fleet by 2030 and increasing to 60.0 percent by 2040 (onwards to 2050); • Cars / SUVs / UVs – 25.0 percent EV share by 2030 and increasing to 50.0 percent by 2040 (onwards to 2050). • Buses – 10.0 percent EV share by 2030 and increasing to 15.0 percent by 2040 (onwards to 2050). Motorcycles and tricycles are considered to drive EV adoption in the country because of lower upfront cost, accessible to most consumers, and regarded as a primary mode of transport across all regions in the country. The CES requires an additional energy demand of 19,377.98 GWh or 2.21 GW of power requirement by 2050. It is also estimated that emission reduction in the transport sector reaches 297.43 MtCO2e by 2050. 78 Internal Combustion Engine Vehicle/ICEV Vo l u m e 2 69 === pep-2023-2050-vol2-section-e-page-080.pdf === The DOE E-Trike Project and the introduction of e-JPs in 2019 through the Public Utility Vehicle Modernization Program (PUVMP) created more awareness on EV and contributed to its increasing adoption. Also, the growth in e-TC numbers can be attributed to the initiatives of LGUs. Other factors that trigger the EV usage are the collaborations among Land Transportation Franchising and Regulatory Board (LTFRB), MERALCO, city governments of Makati and Mandaluyong for the "eSakay" route, and the trial of e-JPs in Iloilo City for the viability of its adoption. Table 37. Projected Cumulative Vehicle Segment per EV Fleet and EVCS by 2050 (50% EV Share, CES) Short Term 2023-2024 EV / EVCS Targets Vehicle Type Cars (Sedan, SUV, UV) Medium Term 2025-2028 Long Term 2029-2050 Total EV Type HEV 173,985 758,078 1,053,830 PHEV 28,997 126,349 706,704 1,985,893 862,050 BEV 28,997 126,349 3,893,042 4,048,388 Tricycle BEV 172,289 533,991 1,915,517 2,621,797 Motorcycle BEV 641,027 2,000,197 8,110,516 10,751,740 Bus BEV Total EVs EV Charging Stations 1,313 4,387 13,449 19,149 1,046,608 3,549,351 15,693,058 20,289,017 38,753 139,399 630,329 808,481 *EV share from the total projected vehicle fleet The private sector, specifically logistics companies, such as DHL Express Philippines and Mober, have taken steps to re-fleet with EVs. DHL’s expansion of its fleet with EVs adheres to promotion of green logistics and reduction of environmental impact. Meanwhile, Mober (Ikea’s on demand delivery) also introduced EVs in its fleet in line with delivering Ikea purchases from customers. These companies are setting examples in the move toward transport sustainability. Another key development is the established partnership between Globe's 917 Ventures, Ayala Corporation, and Gogoro. A test fleet of Gogoro Smart scooters, smart batteries, and GoStations in Metro Manila was launched on 24 April 2023. Globe also launched electric-powered shuttles for its employees.79 Electric Vehicle Charging Station Local Scenario The DOE has put in place a monitoring process for EVCS deployment throughout the country. Correspondingly, the DOE consistently emphasizes to stakeholders the importance of registering their EVCS in compliance with DC2023-05-0011. To date, the DOE has registered public EVCS covering 170 charge points nationwide through the EV Industry Portal. A map of the sites can be accessed through the EV Industry Portal (https://evindustry.ph). These EVCS are comprised of 152 alternating current (AC) and 15 direct current (DC) charging points and five (5) battery swapping stations. In addition, the DOE has also accredited 40 EVCS providers. Based on the EVCS Providers’ Accreditation reports, existing EVCS providers have generated 10,307 new jobs and investments with an estimated value of Php1.64 billion. The EVCS provider is classified according to its scope of operation, namely: (a) Operator – collects fees from EV users in exchange for the use of facilities of EVCS to charge EVs; (b) Service – collects fees on the construction, installation, data and payment management, and maintenance of EVCS; and (c) Supplier – sells EVCS, or any of its parts/components for a fee. Contact details and further information about the DOE-accredited EVCS providers can be accessed through https://evindustry. ph/accreditedproviders. A noteworthy undertaking on EVCS is the partnership between Pilipinas Shell Petroleum Corporation and SUN Mobility to explore the deployment of advanced battery-swapping technology for two- and three-wheel EVs in the country. This is targeted to be launched in 2023 and will utilize SUN Mobility’s Smart Batteries, Quick Interchange Stations, and Smart Network cloud-based Internet of Things (IoT) backend software. Selected Shell mobility stations will allow two- and three-wheeled EVs to swap batteries in under two minutes. This innovative initiative is seen to offer an affordable, practical charging option, longer driving ranges, and zero-emission transportation. Increasing the number of charging stations will be vital to enhance convenience and accessibility of EVs, especially in urban areas. Manufacturing Component. The country has made advances in attracting investments from original equipment manufacturers (OEMs) and automotive suppliers thereby establishing and furthering the EV industry’s development. With a thriving automotive industry consisting of 256 companies serving domestic and export markets, the existing parts-making and assembly capabilities for ICEVs can be utilized in the transition to EVs. This includes not only common parts but also new strategic areas such as automotive electronics, batteries, and EVCS. The presence of the country’s export-oriented electronic industry and the upstream mining resources (e.g., Nickel, Cobalt) are deemed to be beneficial in the local development and manufacturing of parts and components of EVs. 79 70 https://www.bworldonline.com/velocity/2023/02/27/506820/ayala-group-brings-in-electric-smartscooters/ Philippine Energy Plan === pep-2023-2050-vol2-section-e-page-081.pdf === On EV manufacturing, a number of companies are venturing in the domestic market. A Chinese company, Jiangsu Fengchuen New Energy Power Technology Co. Ltd., submitted a proposal to the Bacolod City government for the establishment of an EV manufacturing plant with an investment cost of USD 200 million. The intent is to have test units in Bacolod’s public transportation system running and the unit’s design is to be based on the “Sarao Jeepney.” On the other hand, Wyntron Inc., an electronics manufacturer, secured a USD 20 million loan from ADB to expand EV charging equipment production in Cavite. The loan is deemed to be utilized in purchasing and refurbishment of the company’s production facilities and machinery that will increase production capacity for both residential and commercial EVCS. Human Resources Component. The growth of the EV industry is also dependent on the presence of a skilled workforce, as well as technical competency. The latter requires expertise in the fields of power electronics, control systems, electrical safety, battery technologies, and battery management systems. The assessment of skills in the industry considers training and educational programs. The Philippine EV Analysis Report mapped out the industry’s skill requirements to further advance the adoption of technology. In response to this, the TESDA developed 10 out of the 26 industry skill requirements and recorded its accomplishments. The DOE’s support entailed developing a TESDA-aligned EV technician course module containing training regulations competency standards for EV and HEV servicing. Likewise, the DOE together with the Bureau of Fire Protection (BFP) developed an Emergency Response Protocol that provides basic and advanced knowledge and skills in firefighting techniques involving public utility vehicles (PUVs) and EVs to ensure public safety in the use of EVs. The vehicle industry has also taken notice of EVs and started to engage with its stakeholders. Mitsubishi and Ford are some of the car companies that have conducted training. The former on technical service training for after-sales and seminars on handling, operating, and treating EVs safely. Meanwhile, the latter conducted EV emergency response safety training, specifically on preparation for emergency responses for EVs. The LGU units, such as the Municipality of Malay, focused on the e-TC program of Boracay wherein the aim is to improve the boundary payment system, battery leasing services, financing scheme, and charging of batteries by e-TC suppliers. Research and Development Component. The country’s academic research institutions such as the UP Diliman’s EEEI (E-Mobility R&D Group) and CSU are supported by the government (i.e., DOST) and are laying the path towards advancing e-mobility. Secretary Raphael P. M. Lotilla leads the inauguration of the two units of Battery Electric Vehicle Buses and EV Fast Charging Station at the DOE Compound in Taguig City as part of the Department’s initiative in promoting cleaner transportation options. Several projects are being undertaken by UPDiliman EEEI, which include e-vehicle deployment in collaboration with CSU. The design for a solar EV charging station under the project was adopted by the Quezon City Government in 2021. The DOE and DOST in partnership with the academe are spearheading efforts related to developing EVs in marine vessels. This is guided with the goal of providing an alternative mode of transportation using an electric drive system and a more sustainable ferry system. Vo l u m e 2 71 === pep-2023-2050-vol2-section-e-page-082.pdf === EV Industry Challenges The CREVI also identified the barriers faced by the industry – market-side demand, local industry itself, and charging infrastructure. On market development, the industry deals with the perspective of market players regarding EV’s reputation. Apart from having limited financing aid available, modern EV technologies will take time for familiarization by established industries. A chain effect ensues as hesitation in the adoption affects demand for supporting industries. For the local industry, the challenge lies in the limited manufacturing capacity and assembly of EVs of all types. There are also difficulties in the acquisition of EV supply parts and batteries. The charging infrastructure is integral to the industry’s success and has been identified to be one of the major barriers in the full-scale adoption of EVs. Specifically, there is difficulty in attracting investments for charging stations due to the lack of market, as well as the investments needed for grid and distribution utility to support EV charging demand. The unavailability of support infrastructure for all types of vehicles in the industry is also a contributing factor to the slow adoption of EVs. Plans and Programs The EV Industry Roadmap (Figure 17) serves as the foundation for the successful and sustainable transition towards a cleaner and more efficient transportation system. The clear vision in place establishes a framework that encourages collaboration, fosters innovation, and promotes long-term sustainability. Figure 17. Electric Vehicles Roadmap Short Term Medium Term 2023-2024 Long Term 2025-2028 • Issue policies, guidelines, and regulations geared towards ensuring the harmonized adoption, sustainable and energy-efficient operation, quality and safety, and accessible investments of EVs and EVCS supplied and manufactured for the public • roll out pilot programs on EVs and EVCS use • Conduct research and viable studies on EV batteries and other EV applications • Implement e-mobility transition programs through EV re-fleeting and EVCS deployment • Strengthen and expand the manufacture of EVs for domestic market • Develop standards, safety practices, and conduct training on the use of EVs, EV conversion, EVCS, and battery recycling • Commercialization on the utilization of locally availble EVs and battery storage • Train and certify sufficient number of technicians, service, repair, and maintenance • Promote sustainable economy growth through job generations in the development of the EV industry 2029-2050 • Deploy sufficient number of EV and EVCS across the country • Develop EV ecosystem for the transport sector • Utilize 100% of RE sources to power EVCS • Support research and development in battery research, EV technology and digitalization to spur technological innovations and strengthen the competitiveness of the local EV industry. 2050 OBJECTIVE To power a diverse range of vehicles and establish a domestic EV industry with strong export potential, with the aim of building sustainable future, where new EVs and the required infrastructure are locally robust with reduced environmental impact Various initiatives are to be conducted to ensure the industry’s readiness. The principles of responsibility and accountability in each key player’s performance are integrated into the assigned tasks with defined levels of engagement at the start of the roadmap implementation. Regular reviews and updates will also be conducted to assess the progress of the action plans and adjustments will be made based on the results and stakeholder feedback. This iterative approach will assist in monitoring and optimizing the roadmap’s implementation, ensuring its effectiveness in driving the growth of the EV industry. The Roadmap for EVs and the corresponding charging stations are clearly outlined in both REF and CES. Its goal is to improve the penetration rate of EVs in the country. As shown in Figure 18 the CREVI also indicated action plans covering manufacturing, human resource development, and R&D. 72 Philippine Energy Plan === pep-2023-2050-vol2-section-e-page-083.pdf === Figure 18. CREVI Action Plans Short Term Medium Term 2023-2028 PHASED APPROACH TO IMPROVE EV UTILIZATION • Adopt a phased approach for the development of the EV industry and to balance industry growth and efforts to expand the market. • Ensure demand, provide innovative incentives, introduce required technical regulations and standards, and ensure technology competitiveness of the local industry. RESEARCH AND DEVELOPMENT • Prepare the readiness of a cleaner transport system through research and development of EV and EVCS on critical parts and components and the utilization of clean energy sources in the operation of EV ecosystem. • Demonstration and deployment of EVs » Roll out pilot programs for government or private sector led on EV and EVCS use Long Term 2029-2034 2035-2050 • Demonstration and deployment of EVs » Deploy EVs and EVCS • Re-fleeting of vehicles for the government and the private sector » Implement EV re-fleeting and EVCS programs as mandated by the CREVI for the public and private sectors • Monitoring of EV re-fleeting mandates » Continue monitoring and enforcing re-fleeting mandates through existing mechanisms under EEC Act of 2019 (RA 11285) and EVIDA (RA 11697) • Promote the use of EV and EVCS » Support EV rental/leasing or sharing programs for affordability of e-mobility » Develop and disseminate IEC Campaign materials to highlight the benefits and performance of EVs » Revitalize implementation of the PUVMP to generate reliable and sufficient demand for EV manufacturing, consistent with the Electric Vehicle Incentive Straregy (EVIS) • Battery Storage » Conduct research and viable studies on battery storage to ensure efficiency and costeffectiveness • Battery Manufacturing » Conduct research on alternative battery components • EV Manufacturing » Conduct research and studies for technologies for manufacturing rail, air, and sea transport EVs » Conduct research to develop locally available lightweight and high strength materials for EV frames, components, and parts. • Battery Storage » Commercialize battery storage • Battery Manufacturing » Commercialize the utilization of indigenous minerals for alternative battery component production • EV Manufacturing » Commercialize the adoption of electrified transport system in rail, air, and sea transport » Commercialize the utilization of locally available lightweight and high strength materials for EV » Conduct research to develop locally available lightweight and high strength materials for EV frames, components, and parts. • Pilot programs for local manufacturing of EV and EVCS parts and components » Conduct pilot programs for EV battery manufacturing • Improved manufacturing capability of the Philippines » Support manufacturing for 2- and 3-wheeled vehicles for international markets » Strenghten and expand manufacturing hubs for 4-wheeled EVs for domestic markets through EVIS » Support manufacturing for EVCS and its components for international markets IMPROVE THE COMPETITIVENESS OF EV MANUFACTURING • Improve access to needed processes, parts and components, expertise, and technology, and adopt shared platforms and partnerships • Improved manufacturing capability of the Philippines » Strengthen and expand manufacturing hubs for 2- and 3-wheeled EVs for domestic markets. » Support manufacturing for EVCS and its components for domestic markets • Improved manufacturing capability of the Phils. » Support Manufacturing for 4-wheeled EV for the domestic market • Improved manufacturing capability of the Philippines » Attract foreign investments for export-oriented activities in EV parts and components • Pilot programs for local manufacturing of EV and EVCS parts and components » Support manufacturing and production of batteries for EVs leveraging locally available green metals » Support and commercialize technologies on EV electronics » Support and commercialize technologies for mineral refining to purify nickel reserves and other minerals for battery production HUMAN RESOURCE DEVELOPMENT • Prepare and capacitate the EV Industry through technical programs and trainings to ensure availability of support services for EV and EVCS operation, maintenance, repair, emergency response, among others. • Promote entrepreneurial models for the local businesses in the local EV supply chain » Develop standards and safety practices for EV conversion » Train workers for EVCS operation, maintenance, and installation » Develop standards and safety practices/ applications for EV battery recycling » Develop guidelines to perform EV and EVCS inspections based on mandated quality and safety standards • Delivery of efficient and safe technical support services » Train and certify personnel for safety servicing of EV and EVCS • Capacity Building for EV and EVCs manufacturing and maintenance » Strengthen/expand and implement training and educational standards for EV Maintenance and Manufacturing • Promote entrepreneurial models for the local businesses in the local EV supply chain » Conduct training and shared services facilities for business owners, cooperatives or groups with collective action, and professionals with successful models of enterprises in the EV supply chain (from supply to after sales service) » Conduct training for vehicle rental/sharing business models » Train workers for EV waste management (e.g., battery recycling) • Capacity Building on the deployment of EVs and EVCs at the local level » Conduct training programs for both private and public sectors, non-governmental organizations (NGOs), and cooperatives for EV and EVCS deployment • International Partnerships » Conduct knowledge exchange programs from countries that have EV deployment and develop partnerships for technical capacity building • Integrate EVCS with clean energy sources » Encourage the utilization of renewable energy (RE) sources to power EVCS POLICY AND CREDIT • Implement technical regulations geared towards ensuring the harmonized adoption, sustainable operation, sustainable and energy-efficient operation, quality and safety, accessible investments of EVs and EVCS supplied and manufactured to the public • Delivery of efficient and safe technical support services » Strengthen/expand services shops to carter EV maintenance and repair • Integrate EVCS with clean energy sources » Mandate 50.0 percent utilization of RE sources to power EVCS • Align the EVIS with the priority targets of the CREVI » Issue EVIS and supporting policies to provide incentives for EVs and EVCS • Standardization of EVCS and EV » Issue relevant policies for EVCS and EV classification including, but not limited to minimum energy performance, labeling, safety, and quality » Standardization and harmonization of charging protocol of EVCS » Adopt PNS or use as reference in formulation policies related to EVs and EVCS for government • Standardization of EVCS Installation/Construction » Issue uniform policies on issuance of permits and construction and installation for EVCs • Open and Public Data for EVCs and EV » Develop a uniform database for EVCS and EV data that is accessible to the public observing common APIs to integrate the internet of things for the EV industry • Implement Fiscal and Non-Fiscal Incentives » Continue implementation/imposition of additional incentives for EVCS and EV manufacturing • Strengthening of Government Agencies Concerned » Support strengthening and capacity building for government agencies • Promote utilization of EVs in the locality and tourism sector » Issue relevant policies for the adoption of EVs including, but not limited to dedicated parking • Integrate EVCS with clean energy sources » Mandate 100.0 percent utilization of RE sources to power EVCS • Implement and enforce policy issuances Vo l u m e 2 73 === pep-2023-2050-vol2-section-e-page-084.pdf === Continuing Government Initiatives and Policies The country, as guided by President Marcos Jr. administration’s industrial strategy (driven by new Science, Technology, and Innovation), is positioning to become a hub for green and modern technology and sustainable manufacturing. Electric Vehicle Incentive Strategy (EVIS). Section 24 of EVIDA stipulates the government’s creation of a targeted incentives program, the same with the comprehensive automotive resurgence strategy (CARS) program, to entice investments that will drive the domestic industry and position the country as a future regional player in EV value chain. The EVIS is viewed to enhance EV manufacturing with strong domestic market acceptance, strong manufacturing potential, and promising export opportunities. Specifically, this will support four-wheeled commercial vehicles (i.e., e-JP) to accelerate PUVMP’s implementation and prospectively support other EV segments (e.g., electric two- and three-wheeled vehicles). The 2019 Philippine EV Policy Analysis Report identified the four pillars of EV diffusion - EV cost reduction, industry development, demand generation, and charging infrastructure.80 Policies Supporting EVIDA Several policies and development plans are now in place which are seen to complement EVIDA’s implementation. These include RA 9513 (RE Act of 2008), RA 11534 (CREATE Act), RA 10771 (Green Jobs Act), EO 12 series of 2023, MMDA Memorandum, National Transport Policy, Philippine Development Plan (PDP), and DTI-Bureau of Product Standards (Table 38). Table 38. Laws and Plans Complementing EVIDA Law / Policy / Plan RA 9513 (RE Act of 2008) RA 11534 (CREATE Act) RA 10771 (Green Jobs Act) EO 12 s. 2023 Provisions • • Option for EVCS with a demand of 1 MW or more to directly contract with RE developers. The Green Energy Option Program (GEOP) allows EVCS to source its energy demand from RE suppliers. • The Strategic Investment Priorities Plan (SIPP) includes EV manufacturing and charging stations. This provides registered business enterprises (RBEs) with income tax holiday and enhanced deductions (e.g., depreciation allowance, labor expenses, R&D expenses, technical training expenses for new hires, domestic input expenses, power expenses, reinvestment allowance for manufacturing industries, and enhanced net operating loss carry over) for registered activities. Provides zero tariffs and customs duty to capital equipment, raw materials, spare parts, or accessories that are directly and exclusively used in these activities. • • • Provides incentives and funding for training and research development in the field of renewable energy. RA No. 11285 or the Energy Efficiency and Conservation Act, provides not only regulation through the Minimum Energy Performance (MEP) but also entitlement to investments. This is in consideration of the Omnibus Investments Code (EO 226) and technical assistance from the government for energy efficiency projects related to EVs. This Act serves as an important complement to the Philippine Green Jobs Act of 2016 by promoting the development of a highly skilled workforce capable of meeting the demands of the EV industry. • Temporarily modifies the rates of import duty on EVs, parts, and components under Section 1611 of RA No. 10863, otherwise known as the “Customs Modernization and Tariff Act.” The EO temporarily cuts the most-favored-nation (MFN) tariff rates to zero percent on completely built-up units of certain EVs except for HEVs for a period of five years.81 • MMDA Memorandum • Approved non-fiscal incentive is the exemption of EVs from all number coding schemes. National Transport Policy • Among the priorities is the modernization of the country’s transport system, largely made up of JPs and buses, by considering environmentally friendly modes of transport that utilize BEVs and HEVs, the introduction of bus rapid systems, and other mass transit options. Philippine Development Plan • The PDP targets to create a more efficient, reliable, and sustainable transportation system in the Philippines. Philippine National Standards (PNS) • Provides various technical standards on safety, performance, operation, and installation relevant to EVs and EVCS. Establishing standards and comprehensive utilization regulations are important in ensuring the safe and efficient operation of EVs, especially in the context of the rapid increase of their use in the country. Tax Reform for Acceleration and Inclusion (TRAIN) Law • Full battery-operated vehicles will be exempted from 100.0 percent excise tax while hybrid vehicles that operate both by fuel and battery will be given 50.0 percent of excise tax exemption. Biona, et al. 2019. Philippine Electric Vehicle Policy Analysis Report - Draft Report. [Source: https://www.researchgate.net/publication/335464260_Philippine_Electric_Vehicle_Policy_ Analysis_Report_-Draft_Report] 81 To improve the affordability of EVs, the DOE has also endorsed a position paper dated 08 June 2023 to the Tariff Commission on the temporary removal of the Most-Favor 80 74 Philippine Energy Plan === pep-2023-2050-vol2-section-e-page-085.pdf === Investment and Employment Opportunities The transition towards a green economy is opening significant investment opportunities in clean energy and electric mobility solutions thereby attracting environmentally conscious businesses and investors. The formulation of the CREVI in conjunction with other pertinent government laws and policies, demonstrates the government's unwavering dedication to bolstering the development of the EV industry. As a developing country with an increasing EV demand, it is imperative to strategically expand the network of charging stations in both public and private spaces. Improving the availability and accessibility of charging infrastructures will undoubtedly encourage potential end-users to adopt EVs for their mobility. Relatedly, the expected increase in investment within the country will not only stimulate economic growth but also create diverse employment opportunities, particularly for the local skilled workers. Tables 39 and 40 show the projections representing the two re-fleeting scenarios - REF and CES. The REF indicates at least 10.0 percent EV share of the total fleet for all sectors (except for trucks), while the CES specifies at least 50.0 percent of all fleets with EVs by 2050. The projected values in the scenarios are based on rational assumptions that determine investment requirements, as well as job generation. It is also referenced to the projected EV adoption by 2050 and covers the sectors82 mandated in the EVIDA on the minimum EV share in fleets except for LEVs and heavy-duty vehicles (trucks). For the REF scenario, the total investment requirement for the planning period reaches PhP7.97 trillion with EVs consisting of 77.0 percent at PhP6.1 trillion, while the equivalent job generation is seen at 117,243 million (Table 39). Table 39. Projected Investment Requirements and Job Generation, REF Scenario Year Short Term 2023-2024 Medium Term 2025-2028 Long Term 2029-2050 Grand Total EV Type No. of EVs Government Total Number Private EVs Total Investment Requirements (PhP Billion) EVCS (EVs) (EVCS) Total Job Generation EVs* 4W 156 64,314 64,470 806 69.77 0.40 70.18 TC 14 22,244 22,258 742 4.27 0.37 4.64 1,372 474 MC 282 97,536 97,818 3,261 10.18 1.63 11.81 2,081 E-Bus 8 371 379 379 5.20 1.71 6.91 8 Total 460 184,465 184,925 5,188 89.43 4.11 93.54 3,935 4W 513 214,989 215,502 2,694 161.99 1.35 163.34 4,585 TC 48 74,366 74,414 2,480 9.91 1.24 11.15 1,583 MC 940 326,089 327,029 10,901 23.65 5.45 29.10 6,958 E-Bus 25 1,238 1,263 1,263 12.05 5.68 17.73 27 Total 1,526.00 616,682 618,208 17,338 207.60 13.72 221.32 13,153 4W 4,316 1,352,401 1,356,717 55,889 4,690.38 478.34 5,168.71 33,918 TC 356 399,088 399,444 13,315 247.97 199.72 447.69 9,986 MC 6,941 2,236,153 2,243,094 74,770 591.36 1,121.55 1,712.91 56,077 E-Bus 186 6,756 6,942 6,942 299.62 31.24 330.86 174 Total 11,799 3,994,398 4,006,197 150,916 5,829.33 1,830.84 7,660.18 100,155 13,785 4,795,545 4,809,330 173,442 6,126.36 1,848.68 7,975.04 117,243 Note: For 4Ws, 20 EVs can be charged by a single EVCS; for TC and MC, approx 30 units can be charged in a day; Estimated EV Unit Price: HEV - PhP1.8 million, PHEV/BEV -PhP2.5 million, E-trike - PhP 0.35 million, E-Motorcycles - PhP 0.190 million, E-Bus -PhP 25.0 million (plus 3% annual inflation rate) Estimated EVCS Investment cost - PhP 0.5 million (4W, TC and MC) and PhP4.5million (e-Bus with 80kWDc charger) * Based on 1 job generated per 47 EVs 82 Section 16 of RA 11697 and Section 20 of the EVIDA-IRR Vo l u m e 2 75 === pep-2023-2050-vol2-section-e-page-086.pdf === In the CES, investment increases by 65.0 percent at PhP13.1 trillion compared to the REF, where EVs account for 97.0 percent of the total (PhP12.8 trillion). Likewise, jobs expected to be created are much higher at 431,681 (Table 40). Table 40. Projected Investment Requirements and Job Generation, CES Year EV Type Short Term 2023-2024 Medium Term 2025-2028 Long Term 2029-2050 Grand Total No. of EVs Government Total Number Private EVs Total Investment Requirements (PhP Billion) EVCS (EVs) (EVCS) Total Job Generation EVs* 4W 753 231,226 231,979 11,599 232.85 1.45 234.30 4,936 TC 158 172,131 172,289 5,743 42.91 2.87 45.78 3,666 13,639 MC 3,142 637,885 641,027 21,368 82.26 10.68 92.95 E-Bus 19 1,294 1,313 44 17.99 0.66 18.65 28 Total 4,072 1,042,536 1,046,608 38,753 376.01 15.66 391.67 22,268 4W 3,365 1,007,411 1,010,776 50,539 961.12 6.32 967.43 21,506 TC 485 533,506 533,991 17,800 115.96 8.90 124.86 11,362 MC 9,657 1,990,540 2,000,197 66,673 222.44 33.34 255.78 42,557 E-Bus 60 4,327 4,387 4,387 41.78 2.19 43.97 93 Total 13,567 3,535,784 3,549,351 139,399 1,341.29 50.75 1,392.04 75,518 4W 15,258 5,638,318 5,653,576 282,679 9,413.54 114.99 9,528.53 120,289 TC 1,358 1,914,159 1,915,517 63,851 455.95 31.93 487.87 40,756 MC 27,180 8,083,336 8,110,516 270,351 932.11 135.18 1,067.29 172,564 E-Bus 451 12,998 13,449 13,449 270.96 6.72 277.69 286 Total 44,247 15,648,811 15,693,058 630,329 11,072.56 288.82 11,361.38 333,895 61,886 20,227,131 20,289,017 808,481 12,789.87 355.23 13,145.09 431,681 Note: For 4Ws, 20 EVs can be charged by a single EVCS; for TC and MC, approx 30 units can be charged in a day; Estimated EV Unit Price: HEV - PhP1.8 million, PHEV/BEV -PhP2.5 million, E-trike - PhP 0.35 million, E-Motorcycles - PhP 0.190 million, E-Bus -PhP 25.0 million (plus 3% annual inflation rate) Estimated EVCS Investment cost - PhP 0.5 million (4W, TC and MC) and PhP4.5 million (e-Bus with 80kWDc charger) * Based on 1 job generated per 47 EVs F. POWER DEVELOPMENT The role of the power industry is central in supporting President Ferdinand Marcos Jr. Administration’s 8-point Socioeconomic Agenda, specifically protecting the purchasing power of families (through reduction of energy costs) in the near-term and creating more jobs (ensuring energy security) in the medium-term. Corollary to this, as energy transition is widely becoming a common parlance, the transformational shift envisioned for the power system is viewed to be a step towards security, reliability, accessibility, and sustainability. Achieving the planned transition requires gradual changes from the industry’s sub-sectors - generation, transmission, distribution, and supply. Complementing these significant changes to be undertaken are government commitment and regulation as both will steer the country’s path to its intended outcome for the industry in the medium- to long-term. Existing Power System The main electricity grids that comprise the country are Luzon, Visayas, and Mindanao. However, there are still areas that are not connected to the main grid which are known as off-grid. The aspiration of a unified grid will come into fruition with the targeted completion of the Mindanao-Visayas Interconnection Project (MVIP) by 2024. Main Grid. In 2022, the registered peak demand increased by 3.5 percent, reaching 16,596 megawatts (MW) from the previous 16,036 MW. This is an indication that the economy sustained its activities as major industries contributing to local development are already in full operations compared to the drawdown at the height of the pandemic. The residential and industrial sectors remain the biggest electricity users accounting for 38.7 percent and 31.6 percent of the total electricity sales of 91,333 gigawatt-hours (GWh). On the other hand, the commercial sector comprised around 26.6 percent of the total, while others rounded up the remaining 3.1 percent. 76 Philippine Energy Plan