Press Releases

Energy sector rallies to restore power in Luzon following Severe Tropical Storm Kristine

In the aftermath of weather disturbances caused by Severe Tropical Storm Kristine, the energy sector has swiftly mobilized to restore power across affected areas in Luzon, prioritizing regions where floodwaters have receded.

 

Teams of linemen, engineers, and technical personnel from electric cooperatives in Northern and Southern Luzon, the Bicol region, the National Power Corporation, in case of off-grid areas, the National Grid Corporation of the Philippines (NGCP), Meralco and other private distribution utilities are working tirelessly to restore electricity in these areas. Their efforts include simultaneous clearing of debris, repairing downed power lines, conducting foot patrols, and rebuilding damaged substations. Despite the widespread damage, the dedication and expertise of these teams are on top ensuring that affected communities will soon regain access to electricity, with utmost priorities to hospitals, and other vital institutions.

 

As of 25 October 2024, four NGCP 69 kV lines remain offline, impacting four electric cooperatives. These are the Pangasinan I Electric Cooperative (PANELCO I), Central Pangasinan Electric Cooperative, Inc. (CENPELCO), Camarines Sur III Electric Cooperative (CASURECO III) and Batangas II Electric Cooperative (BATELEC II). Additionally, Batangas I Electric Cooperative (BATELEC I) is in total power interruption while 45 electric cooperatives are still experiencing partial power interruptions.

 

In terms of on-grid generation, the Calaca Power Plant has been on emergency shutdown since 24 October 2024, resulting in a derated capacity of 420 MW. The plant is expected to resume operations by Sunday, 27 October 2024.

 

In the Meralco franchise area, power outages have affected 419,012 customers, a significant reduction from over 580,000 affected earlier. Meralco is working to complete restoration by Sunday, 27 October 2024, as flood conditions improve.

 

The energy sector’s disaster response and rehabilitation efforts led by the Department of Energy, through the Task Force on Energy Resiliency (TFER) go beyond technical work, embodying the spirit of bayanihan, as national and local government agencies, private companies, and non-government organizations collaborate to bring normalcy back to these areas. The dedicated workforce of the energy sector remains on the ground, carrying each responsibility in challenging conditions until full power restoration is achieved. ###

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DOE and MENRE award 1st Coal Operating Contract in BARMM for coal exploration

Cotabato City - The Department of Energy (DOE) and the Ministry of Environment, Natural Resources, and Energy (MENRE) are pleased to announce the awarding of the 1st Coal Operating Contract (COC) for a Pre-Determined Area (PDA) in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM). This contract, awarded to Filipinas Systems, Inc. (FSI) for coal exploration in Kapai and Tagoloan II, Lanao del Sur, represents a significant milestone in BARMM’s energy development.

The awarding ceremony took place today, 24 October 2024, at the Office of the BARMM Chief Minister, Bangsamoro Government Center in Cotabato City. The event was attended by BARMM Chief Minister Ahod Ebrahim, Energy Secretary Raphael P.M. Lotilla, and MENRE Minster Akmad A. Brahim. The event highlights the National Government’s continued support for BARMM’s economic growth and energy self-sufficiency under the administration of President Ferdinand Marcos Jr., solidifying a partnership that will shape the region’s energy landscape for years to come.

This achievement stems from the landmark co-signing of the Intergovernmental Energy Board (IEB) Circular in July 2023, by Secretary Lotilla and Minister Brahim. The Circular laid the foundation for a collaborative framework between the National Government and the Bangsamoro Government, enabling the joint awarding of Petroleum Service Contracts (SCs) and COCs within the BARMM. This framework is a historic step toward BARMM’s energy independence, setting the stage for the responsible exploration and development of local energy resources, while paving the way for enhanced energy infrastructure and economic opportunities in the region.

“The awarding of the 1st COC in BARMM is a landmark moment for both governments. It reflects our collective commitment to advancing energy development and resource management in the region, empowering the BARMM to play a key role in the country’s energy future. This partnership will not only foster energy independence for the Bangsamoro region but also create pathways for sustainable economic growth and development,” Secretary Lotilla said.

He also explained that the development of fossil fuels like petroleum, gas and coal are jointly administered by the National and BARMM governments. Renewable energy sources other than hydro power from Lake Lanao are within the BARMM’s jurisdiction. But the national government and DOE are committed to assist the BARMM in every way to tap its solar, wind, geothermal and other renewable energy sources.

More than 80 percent of the country’s coal requirements are imported from abroad. Any domestic sources of coal will lessen dependence on foreign sources. Currently, 98 percent of the country’s coal imports are from Indonesia.

Under the terms of the coal service contract, FSI has committed to investing around PhP19 million in its two-year exploration work program. Additionally, once converted to development and production stage, FSI will provide PhP150,000.00 annually in scholarships to qualified individuals from the contract area, supporting local communities.

The company has also pledged to pay the following to be shared equally between the DOE and the MENRE: a) PhP250,000.00 signature bonus; b) PhP250,000.00 development assistance; and c) PhP75,000.00 annually for training during the exploration period increasing to PhP200,000.00 annually when converted to development and production stage.

The signing of the IEB Circular in July 2023 marked a turning point for energy governance in the BARMM, formalizing a framework for collaboration that ensures both governments actively participate in the management and development of the region’s energy resources.

For the BARMM and MENRE, this development brings increased autonomy over its abundant energy resources, greater economic opportunities, improved geological knowledge, and the potential for community uplift through job creation and development programs. ###

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South Korea's longstanding nuclear expertise to be highlighted at Philippine International Nuclear Supply Chain Forum 2024

The Republic of Korea, a global leader in nuclear energy, will share its decades of experience and technological advancements at the Philippine International Nuclear Supply Chain Forum (PINSCF) 2024. The forum, hosted by the Philippines, will be held from 13-15 November 2024 at Solaire Resort North in Quezon City, Philippines.

PINSCF 2024 will feature presentations, expert-led discussions, and networking opportunities, providing a platform for international collaboration and knowledge exchange. Key energy specialists from the United States, Canada, France, South Korea, and Japan will discuss various technologies and regulatory frameworks as the Philippines explores the potential of nuclear energy.

On the third day of the forum, the South Korean delegation will share its success stories and lessons learned in incorporating nuclear energy into its national energy mix. Representatives from Korea Hydro & Nuclear Power (KHNP) will be among the key presenters, sharing their expertise and innovative solutions in the field of nuclear energy.

South Korea has been a leader in nuclear energy since 1978, operating twenty-six (26) nuclear reactors that contribute to the country's total net capacity of 25,825 MWe. In 2023, these reactors generated 30.7 percent of the country's total electricity production.

The country is committed to further expanding its utilization of carbon-free energy. Under its Draft 11th Basic Plan on Electricity Supply and Demand, the country intends to construct three (3) new nuclear power plants and include small modular reactors (SMRs) as a new power generation facility by 2038.

South Korea has a long history of innovation in nuclear technology, starting with the development of the APR-1400 reactor design in 1992. The Pressurized Water Reactor produces 1,400 MW of electricity per unit and has received certifications from both the European Utility Requirements and the US Nuclear Regulatory Commission, leading to the diversification of South Korea's nuclear power plant exports. The country had established a goal to capture 20 percent of the world nuclear power plant market during the next 20 years. This will translate to 80 reactor exports in the next 20 years, with an estimated value of USD400 billion.

With its successful experience in nuclear technology, South Korea actively collaborates with other countries. The Philippines has benefitted from these partnerships through previous programs and projects, including the pre-feasibility study of the Philippine Bataan Nuclear Power Plant (BNPP) in 2017, the Memorandum of Understanding (MOU) on the establishment of infrastructure for possible nuclear energy projects in the Philippines in 2018, and the joint pre-feasibility study for the deployment of an SMR in the Cagayan Economic Zone Authority in 2019.

Currently, the Philippines and South Korea are collaborating on a comprehensive technical and economic study in the field of energy, based on an MOU signed by the two countries on 07 October 2024 which is designed to generate critical information to guide the Philippine government’s decision-making process, not only on the BNPP but also in exploring other nuclear technologies and potential alternative sites for nuclear energy development.

"The Philippines is committed to exploring all options for a secure and sustainable energy future, including nuclear energy. Drawing on South Korea's decades of leadership in this field, we hope to gain invaluable insights as we explore the potential of this technology. Our two countries share a rich history of strong energy cooperation, and through this collaboration and knowledge sharing, we are confident that we can harness the power of nuclear energy to meet our energy needs and address the challenges of climate change," the Department of Energy said.

The Philippines, with its aspirations to include an initial capacity of 1200 MW of nuclear energy in its power mix by 2032, recognizes the importance of the PINSCF 2024 in providing a platform for industry partners, media, and interested parties to engage with South Korea's nuclear energy experts and explore mutually beneficial partnerships.

Registration for the forum is open through the official website: www.nuclearforumph.com.
For more information, participants may contact the Nuclear Energy Program Secretariat through email address [email protected] or reach out to [email protected] for media inquiries.###

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Canada to showcase nuclear expertise at Philippine International Nuclear Supply Chain Forum 2024

Canada is set to showcase its expertise and innovative contributions to the global nuclear energy landscape at the Philippine International Nuclear Supply Chain Forum (PINSCF) 2024, to be held from 13-15 November 2024 at the Solaire Resort North, Quezon City, Philippines.

The forum, organized by the Philippines, will bring together leading nuclear energy powerhouses from the United States, Canada, France, South Korea, and Japan to feature presentations, panel discussions, and networking opportunities, with focus on cutting-edge technologies and best practices in the nuclear energy industry.

On the second day of the forum, the Canadian delegation will highlight its comprehensive knowledge of nuclear energy design, financing, and project management, with focus on the "On-time, On-budget" concept.

Prominent representatives from Canadian nuclear energy sector, including CANDU Energy Inc., the Nuclear Waste Management Organization of Canada, and the Nuclear Regulating Agency of Canada, will share their expertise and experience in the field. Their presentations will delve into Canada's leadership in areas such as science and technology, nuclear power design and construction, project management, and the development of engineering tools. Todd Smith, who previously served as Ontario's Minister of Energy and is now the Vice-President of CANDU Energy Inc., will also share his insights on the diverse aspects of CANDU technology and its applications.

Canada pioneered the world-renowned Canada Deuterium Uranium (CANDU) reactor technology. The CANDU design is well-regarded for its robust safety features, efficiency, and fuel economy, leveraging natural uranium fuel and heavy water. The country has exported CANDU reactors to several countries and there are 34 CANDU reactors globally, 29 of which are currently operating.

The country's nuclear engineering innovations extend to Small Modular Reactors (SMRs), which offer advantages such as lower capital costs, faster construction time, and greater flexibility in deployment. Canada is a pioneer in refurbishing existing nuclear reactors and scaling up SMR development.

Canada's leadership in nuclear energy is further demonstrated by its possession of the world's fourth-largest uranium reserve, estimated at 514,000 tonnes. It exports 85 percent of its mined uranium, making it the world's second-largest producer. Mines in Saskatchewan account for over eight percent of global production, which has the highest-grade ore deposits in the world.

The country's commitment to nuclear energy is reflected in its diverse portfolio, which includes 19 large nuclear reactors generating approximately 15.3 percent of the country's electricity. Canada demonstrates an end-to-end understanding of the entire nuclear fuel cycle, encompassing processes from uranium mining and processing to fuel fabrication, waste management, and decommissioning.

"Canada's contributions to the global nuclear energy landscape demonstrate their commitment to both innovation and environmental responsibility. These values align with our vision for a secure, sustainable, and clean energy future, and we ackowledge their willingness to share their expertise and experience with the Philippines," the Department of Energy (DOE) said.

Canada has a long-standing diplomatic relationship with the Philippines, with efforts to enhance cooperation in sustainable development and clean energy transition, particularly through nuclear energy programs. These include the bilateral Administrative Arrangement under the 1981 Agreement for Cooperation in the Peaceful Uses of Nuclear Energy and the drafting of a Memorandum of Understanding between the Ministry of Trade and Export Development of Saskatchewan and the DOE Philippines. These joint efforts focus on technology transfer and capacity building on reactor technology design, nuclear safety, and waste management.

Industry partners, members of the media, and other interested parties may register through the forum's official website, www.nuclearforumph.com.

The Philippines is aspiring to include the nuclear energy in its power mix with an initial capacity of 1200 MW by 2032. International collaboration will play a vital role in achieving this objective and the PINSCF 2024 will provide an opportunity for local stakeholders to gain valuable insights and explore mutually beneficial partnerships.###

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DOE enhances monitoring and guidelines for renewable energy projects to accelerate development

The Department of Energy (DOE) continuously monitors the progress of renewable energy development projects to ensure their timely implementation.

The DOE's approach includes conducting periodic evaluations and implementing updated guidelines that streamline processes and promote efficient project execution. These updated guidelines are designed to simplify administrative procedures, reduce delays, and encourage accountability among developers.

"The administration of President Ferdinand Marcos Jr. is committed to ensuring the efficient and timely execution of renewable energy projects by regularly assessing the progress of these projects and refining regulatory framework. If any contracts are deemed non-performing, we will open them up to new developers who can effectively bring these projects into fruition. This strategy not only accelerates the development timeline but also strengthens investor confidence in the country’s renewable energy goals," Energy Undersecretary Rowena Cristina Guevara said.

In June 2024, the DOE released the revised omnibus guidelines, which governs the award and administration of renewable energy contracts and the registration of renewable energy developers. This process helps to identify and filter out non-serious developers, paving the way for legitimate developers committed to constructing renewable energy projects efficiently.

Currently, at least one-hundred five (105) renewable energy projects are being processed for termination due to non-compliance with project timelines. The majority of these contracts were awarded in 2017 and 2019. Common reasons for project delays include failure to secure possessory rights or system impact studies (SIS) indicating inability to connect to the grid.

Out of the total 105 projects, eighty-eight (88) are either delayed in their pre-development timeline or not progressing at all. Among these 88 projects, fifty-three (53) are solar, seventeen (17) are hydropower, ten (10) are wind, five (5) are geothermal, and three (3) are biomass.

The DOE is implementing a clear contract termination process for renewable energy projects. In the case of existing solar energy service contracts, developers have two years to complete the pre-development stage, which includes obtaining permits, conducting surveys, performing feasibility studies and securing possessory rights. Should a developer fail to submit the declaration of completion (DOC) or demonstrate reasonable efforts within this timeframe, the DOE - Renewable Energy Management Bureau (REMB) will issue a show-cause order to request an explanation for the delay. Valid reasons for the delay, such as force majeure, may be allowed for an extension. If the reasons are insufficient or the developer does not respond, the REMB will recommend to the Secretary of Energy the termination of the contract.

The developer will also be required to fulfill all financial obligations, such as performance bond, payments for training commitment and development assistance, as provided under the service contract.

The revised omnibus guidelines have introduced new opportunities for developers to improve their work program. One significant change is the requirement to obtain a certificate of authority (COA) before signing a renewable energy contract.

The COA is a critical step in the development process, as it empowers developers to secure the necessary permits and conduct essential surveys and pre-feasibility activities even prior to the commencement of the official 25-year contract. By allowing these activities to take place earlier, developers can better prepare for project implementation and address potential challenges proactively. This streamlined approach not only accelerates the project timeline but also enhances the overall efficiency of the development process.

The COA is valid for five (5) years for offshore wind projects, three (3) years for biomass, geothermal, hydropower, ocean and onshore wind projects, two (2) years for floating solar, and one (1) year for land based solar projects.

Additionally, the revised omnibus guidelines simplified the process for obtaining incentives for renewable energy projects. Developers may now secure a certificate of registration (COR) from the DOE after confirming the commercial viability of their projects. In the case of biomass and solar energy projects, developers can secure the COR after achieving financing closure.

The DOE is also streamlining the permitting processes through its Energy Virtual One-Stop Shop (EVOSS) System. Currently, several processes are in the pipeline for incorporation into the EVOSS System, now at various stages of development, either further streamlining, system development or testing.

"These streamlined procedures are designed to promote investments in the renewable energy sector by reducing bureaucratic hurdles, and avoidance of service contract termination, ultimately supporting our country's transition to a more sustainable energy landscape," Undersecretary Guevara said.

As of June 2024, at least 1,435 service contracts with a total potential capacity of more than 156,700 megawatts had been awarded to renewable energy developers. 6,100 MW of these service contracts have already been installed.

The country aims to increase the share of renewable energy in the generation mix, targeting 35 percent by 2030 and 50 percent by 2040. ###

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