Towards Energy Development and Electrification in the Philippines

This energy portal presents highlights taken from a comprehensive Philippine Energy Report that was conceptualized and written with the goal of capturing the Philippine baseline for energy development and electrification, identifying key issues and challenges, and proposing recommended actions for guidance in updating Philippine energy policy and institutional framework.

The site presents highlights from the report across the following primary areas:

  • Research: A collection of excerpts and data presentations and visualizations.
  • Energy Data: A collection of highlight tables, charts, maps, and figures used and presented during the overview and discussion of the report
  • Data and Visualization Tool: Presents a tool for visualizing energy data including a number of data sources gathered from the comprehensive report

Energy Development and Electrification in the Philippines Summary Report

To assist and strengthen efforts of the Department of Energy on its mandate of providing energy to all Philippine residents to make lives comfortable and businesses competitive, a comprehensive Philippine Energy Report was conceptualized and written with the goal of capturing the Philippine baseline for energy development and electrification, identifying key issues and challenges, and proposing recommended actions for guidance in updating Philippine energy policy and institutional framework.

The comprehensive report was undertaken under the Access to Sustainable Energy Programme– Clean Energy Living Laboratories (ASEP-CELLs) project with the guidance of the Ateneo Schoolof Government (ASoG). ASEP-CELLs is a component of the European Union-Philippines Access toSustainable Energy Programme..

This condensed report summarizes and visually presents key concepts, highlights,and relevant facts, figures and data from that report.

THE PHILIPPINE CONTEXT

The Philippine Baseline

The articles in this section provide a brief history of the Philippine energy industry and how each sector plays a role in delivering electricity. Given the 100% electrification target of the country, a review of the inventory of underserved and unserved households as well as the inventory of the electrification efforts are discussed to observe if it is possible to achieve the national targets.

A Brief History of Philippine Electrification

Traces the Philippine electric power industry, as we know it now, as a result of several reforms – from the shared responsibility of public and private entities, to the monopoly established by the State, to the market-based system operating at present.

The Current Electrification Process

Traces the structure of the power industry in the Philippines through the lens of the Electric Power and Industry Reform Act of 2001 (EPIRA) that covers the four sectors of the electric power industry: generation, transmission, distribution, and supply.

An Inventory of Served and Underserved Households

This subsection goes through the underserved and unserved households to define what it means to be under these two categories, analyze how these data are gathered and presented, and how it affects reaching the electrification target.

Household Electrification Programs

Discusses electrification programs across the Philippines including On-grid electrification programs NIHE, SEP, and BLEP as well as Off-grid electrification programs PV Mainstreaming scheme, QTP scheme, and NPC-SPUG.

Status of Electrification in the Philippines

Overview of the structure of electrification reporting across locations and agencies.

Reporting Household Electrification Levels

Presents total electrification across served, underserved, and unserved households from 2015 to 2019 as well as data on household electrification levels by region from 2018 to 2019.

Underserved Areas

Outlines underserved classification of electrification based on access, duration, and frequency of interruption based on reports from Distribution Utilities across the country.

ASEAN Member States Electrification

Analysis and comparison among ASEAN member states’ electrification levels from 2000 to 2018.

Review of Major Electrification Efforts

Total electrification is one of the goals set out by the Philippine government in eradicating energy poverty. To accomplish this, energy should become accessible to the unserved and underserved areas across the Philippines. This section discusses the major efforts being undertaken to increase energy access to these areas including projects in the pipeline that are contributing to this objective.

Reponding to Demand

Covers high level data on electricity demand versus gross domestic product as well as a high level overview of growth in the Philippine power sector.

Major Steps Towards Total Electrification

The commitment to total electrification is not only prompted by economic development but also because the government is mandated by law to accelerate this initiative.

This section includes, power generation data, private sector projects, renewable energy programs, energy storage, hybrid initiatives, transmission, and distribution.

Generation: Addressing Power Supply

Examining progress made in installed capacity of operational power plants set up in the power grids in the drive towards total electrification.

Transmission: Developing the Backbone Infrastructure

With energy demand expected to continuously grow, it is necessary to reinforce the transmission infrastructure across the Philippines as the electricity network faces expansion.

Distribution: The Total Electrification Program

One of the strategies announced by the government is the Total Electrification Program (TEP) which looks to energize the remaining underserved and unserved households nationwide which is conducted in partnership with the National Electrification Administration (NEA) and the National Power Corporation (NPC). This agenda aims to provide serviceable electricity to all households by 2040

Direction of the Philippine Power Mix

Power statistics reflect the current status of the energy and electrification situation in the Philippines. These are important indicators which can tell us the future direction of the Philippine energy mix.  

ENERGY DEVELOPMENT

Towards Energy Access In the Philippines

Access to energy is essential in meeting basic needs and attaining an improved quality of life for individuals. It has been defined as the provision of adequate amounts of high-quality and reliable modern energy supplies when needed and as the ability of individuals to purchase such supplies in the amounts deemed necessary for their daily use (G20 2016). It is instrumental in reducing poverty, crucial to a country’s economy and it ensures sustainable development therefore access to energy must be available to all.

This section starts with a discussion on development frameworks that are applicable to the Philippines. Strategies that boost sustainability, reduce cost and are patterned for renewable energy systems are given emphasis. The conventional and renewable resources with their feasibility of their operation are discussed. Software tools are then presented that can help to identify the optimal size and combination of these energy technologies for decentralized generation.

Development Frameworks and Implementation Strategies

Developing countries are often in dire situations economically, socially and environmentally and this can be alleviated with the injection of energy projects which are aimed at improving these conditions. In order for these projects to become successful, it is necessary to have sustainability which is becoming increasingly more important for policy and decision makers worldwide

Energy Access Underlined by Development Frameworks

Access to energy is essential in meeting basic needs and attaining an improved quality of life for individuals. It has been defined as the provision of adequate amounts of high-quality and reliable modern energy supplies when needed and as the ability of individuals to purchase such supplies in the amounts deemed necessary for their daily use (G20 2016).114 It is instrumental in reducing poverty, crucial to a country’s economy and it ensures sustainable development therefore access to energy must be available to all.  

Frameworks Supporting Frameworks

The lack of a universal definition of access to energy has led to the emergence of several approaches attempting to measure access to energy using a variety of indicators. Wide-ranging approaches have been developed by various researchers and practitioners to measure different aspects of energy access that will help define strategies toward a more sustainable energy future.

The KeyMaker Model

While frameworks help with the structure and organization of how a particular system can be developed in a particular area, implementation strategies can ease the complexities during deployment. Strategies like the KeyMaker model can help speed up the process of development. 

A Review of Major Energy Sources

To further advance energy access in the Philippines, it is necessary to examine all possible resources that can be used to accomplish its objectives. Moreover, a sustainable future is more achievable with more options on the market to provide greater energy security, stability, reliability and affordability.

Fossil Fuel Energy

Fossil fuels were formed from organic material such as dead organisms and dead plants over the course of millions of years. It is currently the world’s primary energy source and it has fuelled global economies over the past century.

Renewable Energy

If fossil fuels are sourced from finite resources, renewable energy takes its energy from inexhaustible natural phenomena such as sunlight, wind, water, ocean, plant growth and heat from the earth. Moreover, renewable energy does not have such a damaging effect on the environment and human health unlike fossil fuels which emit greenhouse gases that lead to global warming.

Nuclear Energy

Nuclear power gets its electricity from power plants that derive their heat from fission in nuclear reactors. The concept is similar to a large coal-fired power plant where water is heated to produce steam which spins large turbines that generate electricity. Rather than coal combustion, it is nuclear fission contained by reactors that heats the water. In nuclear fission, atoms are split apart to form smaller atoms, releasing energy (U.S. Energy Information Administration). The most important constituent of a nuclear reactor is the fuel and uranium is the basic natural nuclear fuel 

Energy Storage

To combat the variability and generation intermittency of renewable energy technologies, energy storage systems (ESS) have become an important factor for electric power systems. Besides storing and smoothing renewable power, ESS’s can increase power system operation and planning resiliency and efficiency.

Technology Feasibility

From fossil fuels down to renewable resources and even nuclear power, the Philippines has many options to tap in order to further expand energy access as well as ensuring better energy security. To determine which energy technologies are the most attractive for development and investment, tools like determining levelized cost of energy and energy return on investment can provide insight. 

Tools for Identifying the Optimal Energy Mix

Within an energy access framework, the capacities of the energy technologies to be deployed have to be determined. A central step in the Sustainable Energy Access Planning framework is to determine the least-cost options.

Optimal Energy Mix

The combination of energy technologies with their respective installed capacities is called the energy mix. The capacity or size of the energy technology is defined in terms of kW or MW  for generation technologies and kWh or MWh for storage technologies. T

Energy Resource Sizing Overview

The tool outputs the optimal combination and sizes of energy technologies to be installed given a set of input parameters and constraints. To accomplish this, the tool creates a model or a mathematical representation of the energy access problem that is then solved through an optimization technique. 

Software Tools and Optimization

The methodologies above require a level of expertise in algorithms and programming to be able to directly apply to a rural electrification project. Because of this, there are software tools that take care of applying the algorithms out of the user input parameters

A high-level look at Calliope, DER-CAM, HOMER, iHOGA, and REM is also examined in this section.

Energy Mix Portfolio

In terms of the energy technology options, this section presents the energy sources and storage that each of the tools have. With these energy sources, Calliope, DERCAM and HOMER can include provision for thermal load. Furthermore, all of the tools have the option of grid connection. 

Geographical Coverage and Electrical Network Considerations

Although the grid connection is available for every tool, the grid model can be different because of the geographical coverage considered.

Performance Metrics and Objectives

The above grid connection configuration and the energy mix portfolio are characterized by each tool through the performance metrics tabulated in this section. Here performance metric/s that are being minimized or maximized to arrive at the optimal energy mix are highlighted as well.

Policies Governing Philippine Electrification

Imperative in constructing a framework towards increasing access to energy is understanding the characteristics inherent to the current Philippine legal framework on electrification and its corresponding limitations. This section aims to present the foundational policies that shape electrification in the country. It will lay down the policy of the Philippines on electrification through a discussion of key pieces of legislation and administrative regulations affecting access to energy.

Policy and Legal Framework

Since the shift in 2001 from a largely state-run system of electrification to a market-based approach, the Philippine strategy on electrification is grounded on competition with government support through regulation. The framework of Philippine electrification is fundamentally shaped by the Electric Power Industry Reform Act of 2001 (EPIRA), which covers rules governing power generation, transmission, distribution, supply and competition.  

Current Energy Legal Framework and Access

The current legal framework on electrification is ultimately set up to bring electricity to all end-users in the country. The EPIRA contemplates quality service not only to users connected to the grid but those in unviable areas through missionary electrification. The NEARA was passed with the same intention of providing electricity to the countryside —in missionary and economically unviable areas. Moreover, apart from its general goal of curbing carbon emissions, the REA’s push for the utilization of RE also contributes to energy access by providing new, sustainable and increasingly economically-viable energy sources. 

Policies Aimed to Streamline Permitting Processes

  • EVOSS ACT Republic Act No. 11234
  • Executive Order No. 30, Series of 2017 
  • LGU Energy Code 

Policies to Improve Grid Access

  • One Grid Philippines
  • Smart Grid Policy   

Policies Affecting Cost

  • Murang Kuryente Act of 2019  
  • Competitive Selection Process  

Policies Aimed to Empower Consumers

  • Energy Efficiency and Conservation Act 
  • Uniform Monthly Electric Bill Framework    

Policies Affecting Off-Grid Access

  • Revised QTP Guidelines
  • PV Mainstreaming
  • Republic Act 11357 

Key Challenges and Recommendations for Energy Development

Case Study

Energy Access: A look at community-based micro hydro power (MHP) projects in Malibcong, Abra.

The study investigates:

  • What is the role of the community in the RE program? 
  • What initiatives were taken by the different stakeholders to sustain the program? 
  • What are the best practices that make a program sustainable? 
  • Are there policies that support RE programs? 

ABOUT THIS RESEARCH

Research material presented in this section as part of a comprehensive report on Energy Development and Electrification in the Philippines was conducted by SolarSolutions Inc.

SolarSolutions is a private enterprise focused on empowering communities and individuals through renewable energy products and services that deliver great value and produce highly positive social impacts for all our customers through a profitable, sustainable, and innovative social enterprise.