TAGUIG CITY – The Department of Energy (DOE) welcomes the energy cooperation between Portugal and the Philippines in the areas of renewable energy (RE) and alternative fuels, like hydrogen.

Portuguese Foreign Minister João Gomes Cravinho in his courtesy visit to Energy Secretary Raphael P.M. Lotilla on Thursday, 27 July 2023, particularly cited the interest of Energias de Portugal (EDP) and EDP Renewables (EDPR) to invest in the country’s RE projects.

Portugal, as an early starter in RE, has similar challenges with the Philippines and is interested in DOE’s approach in developing and utilizing the country’s RE sources. Potential areas of cooperation include RE development and alternative fuels said FM Cravinho.

The Portuguese electric utilities company, EDP generates 74% of its energy requirements from renewable sources and aims to be 100% green by 2030. On the other hand, EDPR was established to manage, operate, and invest in the renewable assets' portfolio of the EDP. It is the world’s fourth-largest wind energy producer and is a global leader in onshore wind farms. Both wish to expand their presence in Southeast Asia through investments in the Philippines.

For his part, Secretary Lotilla shared the areas for cooperation such as the development of offshore wind (OSW) and floating solar, hydrogen and ammonia production using RE, liquefied natural gas (LNG) importation, and improvement of transmission and distribution lines in the Philippines to support its economic development and energy transition agenda.

The Secretary also expressed his interest in the experience of Portugal in repurposing and incentivizing the transition of coal power plants by using other alternative fuels such as co-firing with hydrogen or ammonia.

In 2021, Portugal decommissioned its two-remaining coal-fired power plants. The EDP coal-fired power plant in Sines closed in January 2021 while the Tejo Energia Pego coal-fired power plant closed in November 2021, which gave signals that coal exit is possible through a combination of carbon pricing, renewable energy investment and just transition planning.

The Foreign Minister conveyed that he will communicate the outcomes of the courtesy visit to the Portuguese Minister for Environment and Climate Action João Pedro Matos Fernandes to further discuss it with Secretary Lotilla in the forthcoming COP28 Meeting this coming December in Dubai, United Arab Emirates.

The Foreign Minister, along with the members of his delegation, was accompanied by Philippine Ambassador to Portugal, Ambassador Celia Anna M. Feria, and Ambassador of Portugal to the Philippines, Maria João Falcão Poppe Lopes Cardoso. ###

The Department of Energy (DOE) strongly urges household beneficiaries listed under the Pantawid Pamilyang Pilipino Program (4Ps) to avail of the electricity lifeline rate program of the government in order to continue to get discounts on their electricity bills. 

“There are 4.2 million household beneficiaries of 4Ps, and the registration for lifeline subsidy remains very low.  Only those who register will continue to receive a reduction in their electricity bills beginning August 2023,” Energy Secretary Raphael P.M. Lotilla said. 

For lifeline consumers who have been struggling to make ends meet on their monthly budgets, electricity discounts could help them ease their pockets. The Secretary stressed that all they need to do is simply apply and register with their distribution utilities (DUs) or electric cooperatives (ECs).

The scale of rate reduction varies depending on the prevailing rates of the DUs. For instance, lifeline end-users in the Meralco franchise area with zero to 20 kilowatt-hours (kWh) of monthly consumption will be granted a 100 percent discount on the generation charges, including system loss, transmission, and distribution components of their bill, except for the fixed metering charge of PhP5.00, which means they will only be paying more or less PhP20.00 in their electric bills. 

“If they do not avail of the program through Meralco, they will have to shell out more or less PhP250.00, an amount which could otherwise be spent for their other needs such as food,” the Secretary said.  

“We are not imposing a deadline on when the consumer could avail of the discounted rate. However, unless registered, they cannot avail of the benefits,” the Secretary said.

To apply for the lifeline rate program, any household consumer who is a beneficiary of the 4Ps must only submit to their DUs/ECs a duly accomplished application form, the most recent electricity bill, and any valid government-issued identification card (ID) containing the signature and address of the consumer.

Other marginalized end-user applicants who are not in the 4Ps beneficiaries but belong to a household of at least five (5) members and have a combined monthly income of PhP12,030, must submit to their DUs a certification by their local Social Welfare Development Office (SWDO) issued within six (6) months before the filing of the application showing their family income at the time of application, a duly accomplished form, most recent electricity bill and any government-issued ID containing the signature and address of the consumer. The monthly income threshold may change and vary for each DU franchise area as may be determined the Philippine Statistics Authority.   ###    

The Administration of President Ferdinand Marcos Jr. in its first year ensured adequate energy supply through immediate and short-term measures despite enormous challenges in the wake of the war in Ukraine and the huge spike in coal and fuel prices in the international market.

“This is not withstanding the loss of 1,200 MW Ilijan power supply due to the expiration of its Malampaya gas supply agreement and the absence of alternative natural gas supply and in the Luzon grid,” Energy Secretary Raphael P.M. Lotilla said.

He added that a massive power failure in the missionary areas due to higher diesel prices was avoided with the President’s approval of budgetary support and credit lines to make up temporarily for the shortfall in the Universal Charge for Missionary Electrification (UCME).

“The strict compliance of the private power generators with their maintenance schedule made our supply manageable”, the Secretary stressed.

Eight (8) new generation facilities also became operational from July 2022 to June 2023, increasing the country’s installed capacity by 930.8 megawatt (MW) and dependable capacity by 801.6 MW. Additional capacities from the uprating of existing power plants also contributed to the increase in installed capacity totaling 1,174 MW.  On the other hand, the dependable capacity increased by 1,764 MW due to the return of the service of the Ilijan Power Plant, which dependable capacity was considered zero since June 2022.

This Administration has also progressed in developing the country’s natural gas industry. With the expected decline in Malampaya production, Service Contract (SC) 38 has been renewed to ensure the field’s full production and to kickstart the timely drilling of the nearby fields. To make up for the shortfall in Malampaya gas, we now have two (2) reception and regasification facilities for imported liquefied natural gas (LNG). These facilities will support the gas-powered plants needed to stabilize the increasing volumes of variable renewable energy (RE).

Meanwhile, the call for greater RE use is being intensified with policies geared towards achieving the government’s target of increasing 35 percent of RE in the power generation mix by 2030 and 50 percent by 2040. With an array of permits and licenses needed for RE projects, the DOE is now in the process of integrating the remaining relevant agencies and entities into the Energy Virtual One-Stop (EVOSS) System platform such as the Department of Environment and Natural Resources (DENR), National Grid Corporation of the Philippines (NGCP), Energy Regulatory Commission (ERC), Department of Agrarian Reform (DAR) and National Water Resources Board (NWRB). Additional agencies will also be included as identified under Executive Order No. 21 such as the Philippine Ports Authority (PPA), Civil Aviation Authority of the Philippines (CAAP), Maritime Industry Authority (MARINA), and Philippine Coast Guard (PCG).

One hundred twenty-six (126) RE contracts, with potential capacity of 31,131.74 MW were also awarded by the DOE from July 2022 to June 2023. Of these, 72 contracts cover solar projects, 30 are wind, 20 are hydro, 2 are biomass, 1 ocean and 1 geothermal. We have also adopted a game-changing reform by opening the RE sector to full 100 percent foreign ownership. As a result, three offshore wind contracts with a combined capacity of two gigawatts were awarded to Copenhagen Infrastructure New Markets Fund, a wholly owned foreign company.

“Notwithstanding all these accomplishments, there is much more to be done and the energy sector is ready to take on the challenges cited by the President in his second State of the Nation Address (SONA)”, the Secretary said.

The NGCP has 68 delayed transmission projects based on the data of the ERC. Out of these, 37 projects were approved by the ERC outside the Third Regulatory Period (TRP) and were issued show cause orders.

Meanwhile, 31 delayed projects which were included in the TRP in 2009 but have yet to be issued show cause orders as the ERC is currently evaluating if the proper recourse is to make the necessary adjustments in the on-going reset under the Fourth Regulatory Period. Overall, delays in transmission projects take 1 to 9 years while completion takes 8 to 10 years.

Further, a closer look at the Transmission Development Plans (TDPs) submitted by the NGCP to the DOE reveals that since 2009, the transmission grid only increased by 8 percent in terms of line expansion. During the pre-pandemic years, NGCP’s line expansion, on average, was only at 1.05 percent progress rate per year.

“For one, we will make sure that grid connections, the needed highways for electricity, will be completed in a timely manner so that additional generation capacity will be delivered down to the distribution sector and ultimately to the household level. For this, we will make the NGCP accountable to complete all its deliverables including the vital Mindanao-Visayas and the Cebu-Negros-Panay interconnections. Moving forward, the government will see to it that transmission lines and related infrastructure, as well as System Impact Studies (SIS), are carried out at the pace required by our country’s power needs”, the Secretary stressed.

On the performance review of NGCP, the DOE issued in June 2023 Department Order (DO) No. DO2023-06-0018 which created the performance assessment and audit team for the operations of the transmission network provider and system operator. The DOE has already completed its audit work plan, and together with the ERC, will commence the actual audit of NGCP.

The energy section of the Philippine Development Plan (PDP) 2023 – 2028 likewise outlines the general directions for the sector during his term and the DOE is making sure that all its planning and policies for the long term period will be embodied in our updated Philippine Energy Plan (PEP) for 2023 – 2050.

“We will continue to work on long-term solutions in accordance with the clear goals set by the President to develop indigenous sources of energy, particularly renewables. We commit to pursue our mission and respond to emerging energy challenges and issues to ensure sustainable, stable, secure, accessible, and reasonably priced energy”, the Secretary said. ###

Taguig City - Government agencies, including government-owned and controlled corporations (GOCCs), state universities and colleges (SUCs), and local government units (LGUs) are encouraged to tap solar energy in their government-owned buildings to help minimize the countrys exposure to fuel price fluctuations in the international markets.

In a Resolution promulgated on 07 July 2023 by the Inter-Agency Energy Efficiency and Conservation Committee (IAEECC), government entities are given three (3) years from the effectivity of the Resolution to install an initial supply of at least twenty (20) percent of their electricity requirements from Solar Photovoltaic (PV) System or any equivalent renewable energy (RE) technology based on the highest monthly kilowatt-hour (kWh) billing demand of the previous years.

The utilization of solar energy is also part of the compliance with the Government Energy Management Program (GEMP) which encourages all government entities to reduce their electricity consumption by at least ten (10) percent.

Under IAEECC Resolution No. 8, a government entity that will install Solar PV System or any equivalent RE technology with a capacity not exceeding 100 kilowatts (kW) is allowed to be Qualified End-Users (QEs) and may enter into a net-metering agreement with a distribution utility (DU).

QEs are entities such as a house or office building that generate electric power coming from an eligible RE generating facility that can be connected to the grid, for the purpose of entering into a net-metering agreement.

Meanwhile, the net metering program allows customers of DUs, such as house or building, to install an on-grid RE-based system not exceeding 100 kW in capacity so they can generate electricity for their own use. Any electricity generated that is not consumed by the customer is automatically exported to the DUs distribution system. The DU then gives a peso credit for the excess electricity received equivalent to the DUs blended generation cost, excluding other generation adjustments, and deducts the credits earned to the customers electric bill.

Energy Secretary and IAEECC Chairperson Raphael P.M. Lotilla said that the result of the participation of all government entities to this program will pave the way to the reduction of their monthly electricity consumption which the government could re-channel to other services, such as health and education.

The Secretary added that apart from public spending on electricity consumption, widely available military lands, camps and reservations could also host solar farms. Installation of solar panels in government lands and buildings would also allow the government to maximize the job-creation potential of RE.

The DOE-Energy Utilization Management Bureau (DOE-EUMB) shall assist government entities in the installation of their Solar PV System with the necessary technical requirements. To date, DOE-EUMB has initiated three (3) solar demonstration projects for government offices such as the NEDA Region IX Office in Pagadian City, the DOE-Luzon Field Office in Pangasinan and the Mariano Marcos State University in Ilocos Norte. These demonstration projects are envisioned to establish the viability and effectiveness of RE technologies in helping reduce electricity consumption in government offices.

The DOE-EUMB shall also provide the official list of Solar PV installers for reference and guidance of all government entities, as well as collaborate with the Department of Public Works and Highways (DPWH), to assist them in evaluating the structural integrity of their office buildings.

The IAEECC is composed of the DOE as Chair with the Department of Budget and Management (DBM), Department of Finance (DOF), Department of the Interior and Local Government (DILG), DPWH, Department of Transportation (DOTr), Department of Science and Technology (DOST), Department of Trade and Industry (DTI) and the National Economic and Development Authority (NEDA) as members. ###