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State Policies and Energy Markets. VINCENT S. P ÉREZ Secretary Department of Energy REPUBLIC OF THE PHILIPPINES. OUTLINE. State of the Philippine energy sector Government thrusts for energy development : Sustainability Natural Gas Development of New and Renewable Energy (NRE) Sources
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State Policies and Energy Markets VINCENT S. PÉREZ Secretary Department of Energy REPUBLIC OF THE PHILIPPINES
OUTLINE • State of the Philippine energy sector • Government thrusts for energy development : Sustainability • Natural Gas • Development of New and Renewable Energy (NRE) Sources • Power Sector Reform • Cooperation and collaborative actions with ASEAN neighbors
PRIMARY ENERGY MIX Y2000 Total Energy: 249.5 MMBFOE Self-Sufficiency Level: 45%
PROJECTED GENERATION MIXY2002 51,600 GWh Self-sufficiency Level: 64%
ENERGY THRUSTS • Stable, secure & efficient energy supply • Fair & reasonable energy prices • Consumer welfare enhancement • Energy efficiency & conservation • Environmental friendly energy sources
MALAMPAYA DEEP WATER GAS-TO-POWER PROJECT Depth 0 Batangas onshore gas processing plant 2,700 MW Power Plants 45 m 24” dry gas pipeline Offshore Platform Two 16” wet gas flowlines 850 m Subsea mainfold Wells
SUBSEA PIPELINE A 504-km subsea pipeline will bring Malampaya natural gas from offshore Palawan to Luzon
FINANCIAL IMPACT OF MALAMPAYA GAS PROJECT • Govt Revenues (20 yrs) US$ 8.1 B • Savings : • Forex US$4.5 B • Electricity 2.2 B • Environmental 1.1 B
THE CORRIDOR OF FOCUS This corridor is composed of more prospective areas near the Malampaya gas field
Malampaya Gas to Power Project Ilijan Sta Rita San Lorenzo Other Power Plants Trans-ASEAN Gas Pipeline Ind’l. Plants Gas Plants Transp. Sector Gas Wells Bldgs. Gas Receiving Plants Distribution Cos. Traders / Marketers CNG/LNG Tankers THE EMERGINGNATURAL GAS INDUSTRY
Renewable Energy: GEOTHERMAL POWER DEVELOPMENT
GEOTHERMAL POWER IN THE PHILIPPINES • Installed capacity of 1,931 Mwe • Leyte Geothermal Field - world’s largest geothermal plant for wet steam • 2nd largest user of geothermal energy resources for power generation • Potential of 730 MW from 11 explored prospect areas
WITHIN THE LARGEST GEOTHERMAL FIELDS 1 x 60 MW Mahanagdong B Geothermal Power Plant 112.5 MW Tongonan I Power Plant
NEW RENEWABLE ENERGY DEVELOPMENT Wind Energy Solar Energy Ocean Energy
WIND POWER POTENTIAL SITES Philippine wind energy potential could be as much as 70,000 MW , with high potential wind energy utilization in the following areas: Ilocos, Mt. Province, Cuyo Is., Batanes, Catanduanes, Tagaytay, Lubang and Cabra Is., W. Batangas, Guimaras, Masbate, NE Negros Occidental and Palawan
40 MW WIND FARM • Located in Northern Philippines • Project cost of US$ 54 Million • Largest wind farm in Southeast Asia • Installation of 56 units of 750 kW wind turbine generators
INTEGRATED ENERGY-ENVIRONMENT APPROACH Translating Goals to Strategies • Large-scale utilization of NRE sources • Promotion of energy efficiency and conservation • Adoption of environment energy systems; and • Establish synergy between energy development & environmental concerns
MAJOR FEATURES OF THE POWER REFORM ACT • Privatization of National Power Corporation generating assets • Creation & privatization of Transmission Company (TRANSCO) • Creation of Power Sector Asset and Liabilities Management Corporation (PSALM) • Wholesale Electricity Spot Market
NEW POWER STRUCTURE • Creation of several Gencos clusters • Unbundling of electricity tariffs for transparency • Opening up of high voltage transmission lines for easy access of distributors and large consumers • Opening up of distribution lines for competitive consumers
COLLABORATIVE ACTIONS IN ASEAN . . .
ASEAN PLAN OF ACTION FOR ENERGY COOPERATION • Interconnection of energy infrastructure • ASEAN Power Grid • Trans-ASEAN Gas Pipeline • Economic integration • Regional sustainability • Supply security
WHY IS PHILIPPINE ENERGYSECTOR ATTRACTIVE? • Vast energy potential in various energy sources • New laws and policies promulgated • Government’s firm commitment to energy development and industry deregulation • Economic viability of energy-related projects with 5% to 6% p.a. electricity demand growth
THANK YOU! www.doe.gov.ph