Asian Development Bank - Philippines: Energy Sector Assessment, Strategy, and Road Map

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PHILIPPINES

ENERGY SECTOR ASSESSMENT, STRATEGY, AND ROAD MAP

OCTOBER 2018

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

2018 Asian Development Bank

6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines

Tel +63 2 632 4444; Fax +63 2 636 2444

www.adb.org

Some rights reserved. Published in 2018.

ISBN 978-92-9261-362-4 (print), 978-92-9261-363-1 (electronic)

Publication Stock No. TCS189616

DOI: http://dx.doi.org/10.22617/TCS189616

The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent.

ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned.

By making any designation of or reference to a particular territory or geographic area, or by using the term country in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.

This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess.

This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material.

Please contact if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo.

Notes:

In this publication, $ refers to United States dollars.

ADB recognizes China as the Peoples Republic of China and Korea as the Republic of Korea.

Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda.

On the cover: Solar panels from a hybrid energy system on Cobrador Island, Philippines (photo by ADB).

Tables and Figures

Tables

1 Energy Supply Projections for 2040

2 Current Transmission Interconnection Capacity in the Philippines

3 Approved Feed-In Tariff Rates as of 31 December 2016

4 National Energy Targets Set Out by the Philippine Development Plan 20172022

5 Energy-Focused Legislative Agenda from the Philippine Development Plan 20172022

6 Major Donor Activities in the Philippine Power Sector, 2010 Onward

Figures

1 Regional Real Gross Domestic Product Growth, 20032016

2 Electricity Demand Growth vs. Real Gross Domestic Product Growth

3 Structure of the Power Industry in the Philippines

4 Power Generation by Source in the Philippines, 19912016

5 Supply and Reserve Margins in Luzon, 19872016

6 Generation in the Main Philippine Grids, 2016

7 System Losses in the Philippines

8 Installed Renewable Energy Capacity under the Feed-In Tariff Program

9 Retail Tariffs for Residential Customers as of September 2017

10 Comparison of Generation Charge by Meralco vs. Wholesale Electricity Spot Market Prices

11 Strategic Linkages

Acknowledgments

This report was prepared by a team led by Shannon Cowlin, senior energy specialist, Energy Division (SEEN) of the Southeast Asia Department (SERD), with team members: Rehan Kausar, director, Portfolio Management Division of the Procurement, Portfolio, and Financial Management Department; Manfred Kiefer, senior economist, Private Sector Transaction Support Division of the Private Sector Operations Department; Michael Thomas, consultant, and Christopher Starling, consultant. Guidance and support was provided by Ramesh Subramaniam, director general, SERD; Andrew Jeffries, director, SEEN; and Kelly Bird, director, Philippines Country Office (PHCO).

The team wishes to thank Yongping Zhai, chief, Energy Sector Group, Sustainable Development and Climate Change Department; Aekapol Chongvilaivan, country economist, PHCO; and Anthony Jude, consultant, for their helpful reviews and comments during the preparation of the report. The team wishes to thank the Department of Communications and SERD staff: April-Marie Gallega, associate communications coordinator; Mary Grace Huelgas, associate operations officer; and Jeffrey Almera, senior operations assistant, for their support in preparing and editing the report.

The team wishes to thank agencies and colleagues in the Government of the Philippines for discussions held during the preparation of the report.

Abbreviations

ADB	Asian Development Bank
ARMM	Autonomous Region in Muslim Mindanao
ASR	assessment, strategy, and road map
BAU	business-as-usual
CES	Clean Energy Scenario
DENR	Department of Environment and Natural Resources
DOE	Department of Energy
EPIRA	Electric Power Industry Reform Act
ERC	Energy Regulatory Commission
FiT	feed-in tariff
FiT-All	FiT-Allowance
GDP	gross domestic product
GHG	greenhouse gas
IMEM	Interim Mindanao Electricity Market
LNG	liquefied natural gas
NEA	National Electrification Administration
NGCP	National Grid Corporation of the Philippines
NPC	National Power Corporation
NREB	National Renewable Energy Board
NREP	National Renewable Energy Program

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