TAGUIG CITY –Department of Energy (DOE) Secretary Alfonso G. Cusi today reiterated his directive to intensify efforts to meet energy security targets, particularly the liquefied natural gas (LNG) sector, as the industry seeks to contribute to economic recovery in the New Normal. 

Since taking the agency’s helm in 2016, Secretary Cusi has been pushing for groundbreaking solutions to address the various energy woes plaguing the country for decades. This includes, among others, his vision to transform the country into a regional LNG hub,  openness to harness the potential of nuclear energy as part of the energy mix, and  zeal in exploring other sources of energy like hydrogen to meet the country’s growing needs. 

In anticipation of the eventual depletion of the Malampaya deep-water gas-to-power project which has been providing about 20% of the country’s power needs, the Energy chief has long been advocating for the optimization of LNG from importing the gas, establishing the necessary infrastructure to help the sector progress from its current infancy stage, and seeing the country develop into a leading LNG hub in Asia. 

Current data from the DOE-Natural Gas Division indicate that of the six proposed LNG terminal projects, four have been issued with Notices to Proceed (NTP), with an initial validity of six months, subject to further extensions for approval by the DOE. 

• Excelerate Energy L.P.’s Floating Storage Regasification Unit (FSRU) Liquefied Natural Gas Terminal project was issued an NTP on 20 September 2019. The DOE granted two NTP extensions, the first, which was valid for six months as allowed by the Philippine Downstream Natural Gas Regulations (PDNGR), was issued on 27 May 2020. The second, due to force majeure brought about by the COVID-19 pandemic, was issued on 16 December 2020 and was valid for three months. At present, the Department is evaluating Excelerate’s Permit to Construct application, while the company is securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated commercial operation date (COD) is in Q3 of year 2022. 

•Atlantic Gulf & Pacific Company of Manila, Inc.’s (AG&P) Floating Storage Unit (FSU) and Onshore Regasification, as well as its 60,000 cubic meter buffer LNG storage tank project was issued a NTP on 24 February 2021. AG&P is currently securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is in Q2 of year 2022. 

• Shell Energy Philippines, Inc.’s (SEP) FSRU Terminal project was issued an NTP on 16 March 2021. SEP is currently securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is in Q3 of year 2022.

• Vires Energy Corporation’s FSRU terminal was issued an NTP on 22 April 2021. The company is currently securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is in Q1 of year 2023. 

Meanwhile, two projects are in the next phase and have been issued with Permits to Construct (PTC). 

• FGEN LNG Corporation’s Interim FRSU and LNG Terminal project was issued a PTC for the construction of its interim FSRU’s ancillary facility on 23 September 2020. FGEN LNG Corporation is currently under construction. Its estimated COD is in Q3 of year 2022. 

•Energy World Gas Operations Philippines, Inc.’s LNG Storage and Regasification Terminal project was issued with a PTC on 21 December 2018, which was valid for two years. At present, the DOE is evaluating the company’s application for a PTC extension of 24 months. Its COD is in Q4 of year 2022.

“Attaining energy security may have been complicated by the current global health crisis. However, the DOE is seeing to it that we will be able to carry on. The Department continues to pursue all possible avenues that would help us break free from energy import dependence and provide the energy needs of future generations of Filipinos in a sustainable manner,” Secretary Cusi concluded. 

###

TAGUIG CITY - Department of Energy (DOE) Secretary Alfonso G. Cusi today cited the potential contribution of nuclear energy and hydrogen in efforts to accelerated the attainment of a secure and sustainable energy future for the Philippines. 

ON NUCLEAR

Secretary Cusi said, “it is high time that the feasibility of safely utilizing nuclear energy to meet our energy requirements be considered”. He believes that had the country taken the opportunity to seize the opportunity of using this power resource decades ago, the Philippines’ present socio-economic landscape might have been extremely different – according to the Secretary, we might be at par with our more developed regional neighbors like South Korea, which took advantage of developing its own national nuclear energy program despite the economic challenges it was facing at that time. 

On 18 December 2020, the DOE-chaired Nuclear Energy Program Inter-Agency Committee (NEP-IAC) submitted to the Office of the President its initial report endorsing the adoption of a National Position for a Nuclear Energy Program. While waiting for the decision, the NEP-IAC and the DOE-Nuclear Energy Programme Implementing Organization (NEPIO) continues to conduct activities, studies, and research programs that seek to address the 19 infrastructure issues on nuclear power development program in the country, in compliance with the policy guidelines set by the International Atomic Energy Agency (IAEA), the world’s “Atoms for Peace” organization within the United Nations framework. 

• The DOE and the Department of Science and Technology – Philippine Nuclear Research Institute (DOST-PNRI) signed a Memorandum of Agreement (MOA) on the Development of Instructional/Education Materials on Nuclear Science and Technology for Secondary Students and Science Teachers. On 6 May 2021, the project on Education Resource Materials on Nuclear Science and Technology was virtually launched. This project aims to increase the knowledge and understanding of students, science educators, and the public on the basic facts and benefits of nuclear science and technology through the dissemination of educational resource/instructional materials and modules. 

• In support of developing stakeholders’ involvement, the DOE-NEPIO conducted a Virtual Symposium in Nuclear Energy with La Concepcion College for senior high school students on 16 June 2021. Its primary objective is to help inform students of the benefits of nuclear energy in reference to the possibility of introducing nuclear science related courses in the tertiary education level.

• The DOE-NEPIO is also collaborating with Japan Atomic Industrial Forum Inc., (JAIF) – International Cooperation Center (JICC) for the conduct of several training courses. These training courses were attended by the Technical Working Group (TWG) members of the DOE-NEPIO, and representatives from the DOST-PNRI, National Power Corporation (NPC), National Transmission Company (TransCo), DOST- Philippine Institute of Volcanology and Seismology (PHIVOLCS), and DENR- Environmental Management Bureau (EMB).  

Furthermore, the DOE-NEPIO and NEP-IAC have also made representation to the United States Foundational Infrastructure for the Responsible Use of Small Modular Reactor Technology (FIRST) program, a five-part webinar series for selected ASEAN member states scheduled from May-September 2021.

• There is likewise a MOA among the DOE, the Presidential Communications Operations Office (PCOO), and Bureau of Communications Services (BCS), which focuses on the development of a Comprehensive Strategic Communication (StratCom) Plan on Nuclear Energy.  The StratCom Plan is envisioned to contain broad-based strategies designed to address stakeholders’ negative perception on the use of nuclear energy for power generation.    

ON HYDROGEN

With hydrogen being viewed as “the fuel of the future”, Secretary Cusi has been keen on looking into its potential applications in the Philippine setting. After creating the Hydrogen and Fusion Energy Committee (HFEC), the DOE has, thus far, entered into two Memoranda of Understanding on research and development activities. The first MOU was with Australian firm Star Hero, to evaluate the conversion of coal-fired power plants to hydrogen sourced from renewable energy (RE) feedstock, while the other was with Japan’s Hydrogen Technology, Inc. to assess hydrogen utilization for power generation.

Another promising development may be underway, this time with France, a country that has been strongly pushing on RE for hydrogen production. During a joint meeting with the DOE and the Department of Trade and Industry, a Paris-based firm, through the Philippines-France Joint Economic Commission noting the potential collaboration.

"Amid the challenges to hurdle, the DOE continues to work round the clock in ensuring the country's energy security. I am confident that by doing regular reviews of our energy policies, will further strengthen and empower both the public and private sectors to promote all sources of energy for the generations to come," Secretary Cusi concluded.

###

TAGUIG CITY – The Department of Energy (DOE) today is calling for continued vigilance against any form of misinformation detrimental to public interest as it assures stable supply of power amid continuing challenges. 

“Part of the grave dangers of misinformation is the panic it causes when we are already navigating around extremely trying times. Instead of sowing discord and promoting self-interest, we must work together to overcome the difficulties we have been dealt with given the global health crisis. While the DOE reaffirms  our commitment to deliver reliable and stable energy services throughout the country at all times,” Energy Secretary Alfonso G. Cusi stressed. 

Following the Energy chief’s directive, DOE Spokesperson Undersecretary Felix William B. Fuentebella held a virtual press conference this morning, where he clarified matters concerning weekend news reports that alleged power supply insufficiency in the 2022 national elections. 

“We had to correct the report where the DOE statement was taken out of context. We emphasize that we have sufficient supply of electricity for the election week. The initial outlook shows sufficiency of supply, with no yellow alerts, and no power interruptions. Our goal is to maintain this situation, or improve it, and this could be done through our continued coordination and joint monitoring activities,” Undersecretary Fuentebella stated. 

He likewise emphasized the need to be accurate on matters regarding energy supply and stability. According to Undersecretary Fuentebella, “we need to give the right information at all times, and the energy family does its best to respond accordingly to all types of energy scenarios.”

The DOE also stressed the required cooperation in the implementation of the Energy Virtual One Stop Shop Act which addresses all forms of red tape on energy applications and the Energy Efficiency and Conservation Act which promotes the welfare of the consumers. 

Also mentioned are the following Department Circulars signed by Secretary Cusi:

1. DC2017-11-0012 - DC on the Development of Liquefied Natural Gas Industry
(Rules and  Regulations Governing the Philippine Downstream Natural Gas Industry)

2. DC2018-01-0001 - DC on Energy Resiliency
(Adoption of Energy Resiliency in the Planning and Programming of the Energy Sector to Mitigate Potential Impacts of Disasters)

3. DC2018-05-0014 - DC on the Creation of the Energy Task Force Election 
(Creating the Energy Task Force Election to Ensure Adequate and Reliable Energy Supply Before, During and After Elections)

4. DC2018-02-0003 - DC on Competitive Selection Process (Adopting and Prescribing the Policy for the Competitive Selection Process in the Procurement by the Distribution Utilities of Power Supply Agreement for the Captive Market)

5. DC2019-12-0018 - DC on Ancillary Services
(Adopting a General Framework Governing the Provision and Utilization of Ancillary Services in the Grid)

6. DC2020-02-0004 - DC on the Grid Operation and Maintenance Program
(Providing Guidelines on the Planned Outage Schedules of Power Plants and Transmission Facilities and the Public Posting of the Grid Operating and Maintenance Program)

Among the panelists present for the virtual presser were Luzon System Operator Beng Abadilla and Head of Systems and Standards Division and Technical Services Department Erwill Bugaoisan from the National Grid Corporation of the Philippines; Spokesperson and Head of Corporate Communications Joe Zaldarriaga, Energy Management Head Primo Alonzo, Vice President & Head of Distribution Services Jose Reyes, Network Technology and Asset Management Head Larry Fernandez from Meralco; Deputy Administrator Atty. Artis Nikki Tortola from the National Electrification Administration (NEA); Vice President Atty. Melchor Ridulme from the National Power Corporation (NPC); Chairman Juan Eugenio Roxas and President and Executive Director Atty. Anne Montelibano from the Philippine Independent Power Producers Association (PIPPA).

During the briefing, Meralco, the NEA, NPC, and PIPPA also discussed their respective action plans relative to securing the availability of power services in next year’s elections, which includes, among others, preparatory maintenance activities, strategic placement of technical crews and personnel, contingency measures, round-the-clock response for any arising emergency situation, and the provision of full assistance to other energy family members in times of need. 

“The DOE is in control of the energy situation. We want to maintain our track record of working for a quick recovery against any calamity and will endeavor to do so in the years ahead,” Secretary Cusi concluded. 

###

The Department of Energy (DOE), in partnership with the European Union-Supported Access to Sustainable Energy Programme (EU-ASEP) and TeaM Energy Foundation Inc. (TEFI), turned over the Productive Use of Renewable Energy (PURE) project in Don Salvador Benedicto, Negros Occidental on 6 August 2021.

The project aims to increase electricity access through renewable energy utilization that would boost energy efficiency promotion. 

NEGROS OCCIDENTAL – The Department of Energy (DOE), in partnership with the European Union-supported Access to Sustainable Energy Program (EU-ASEP) and its private sector partner, TeaM Energy Foundation, Inc. (TEFI), inaugurated last Friday, 6 August 2021, the fourth pilot renewable energy-based post-harvest project that will benefit the pineapple farmers of Don Salvador Benedicto, Negros Occidental. 

Designed to increase the income of farmers and boost local economy, the Productive Use of Renewable Energy (PURE) pilot project features a 4-kiloWatt solar photovoltaic system that powers a decorticating machine to produce high-quality, export-ready pineapple fiber. 

Piña fiber is made out of pineapple leaves and is highly sought in the international textile market because it can be used for clothing materials or is a good alternative to leather. Don Salvador Benedicto, as the main source of pineapple fruits in Central Visayas, has over 2,000 hectares of pineapple fields. Prior to the introduction of the PURE project, farmers would discard the pineapple leaves as waste or process some of it as animal feed.

The ceremony was attended by the DOE-Visayas Field Office officials, Don Salvador Benedicto LGU led by Mayor Marxlen Laurence Dela Cruz, TEFI Vice President Ma. Teresa Lopez, and representatives from the Provincial Government of Negros Occidental, 1st District House Representative Gerardo P. Valmayor, Abang Linkod Representative Joseph Steven S. Paduano,  Department of Agriculture, Department of Trade and Industry, Department of Labor and Employment and Community Environment and Natural Resources  Office, the project was turned over to its direct beneficiaries through the Central Negros Electric Cooperative and the Bago Integrated Solar Farmers Association.

In his Keynote Address, DOE Undersecretary Emmanuel Juaneza said the PURE project is a timely intervention that will help far-flung communities recover from the effects of the pandemic. “The productive use of renewable energy or PURE project was conceptualized as a supplemental project to the DOE’s rural RE electrification program such as the Household Electrification Project (HEP).  PURE was created to provide other sources of income for farmers through the use of renewable energy technologies, thus enhancing their capacity to pay for the monthly operation and maintenance expenses to sustain their household energy use,” he said. 

European Union Delegation to the Philippines Head of Cooperation, Mr. Christoph Wagner said, “The EU is proud to support this pilot project as part of our partnership with the Philippines on renewable and sustainable energy. This intervention will support the community in making use of pineapple leaves which were thrown away in the past. Now, they can be used as high-value natural fiber, which will generate income and might become an export commodity of the Philippines. This project is therefore a small contribution towards a more circular and green economy in the Philippines. I hope that this project will serve as a model for other similar projects in the future.

For her part, Ms. Lopez, TEFI Vice President, personally thanked all partners for working together to pursue a common goal of helping far-flung communities through better access to basic services such as electricity and livelihood.  

Government and Private sector collaboration

The project showcases how the government and the private sector can work together in bringing vital social and economic services to far-flung communities. The DOE and EU-ASEP provided technical assistance in the preparation of a feasibility study for the project, including the technical design, business model and social preparation activities. Early coordination with the local government were undertaken starting February 2021 to ensure that project implementation followed all health and safety protocols. TEFI provided grant funds amounting to Php 3.5 million to procure the solar PV system, and decorticating machine and the powerhouse and PURE center located in Sitio Alindahawan, Barangay Bago.  

TEFI also provided a solar-powered refrigerator for vaccines and medical supplies for the barangay health center of Barangay Pinowayan, the farthest barangay in Don Salvador Benedicto. The refrigerator is Department of Health-accredited and can store vaccines and medicines requiring negative 5 degrees Celsius temperature. 

DOE which provided solar home systems in the community years back, assessed this need together with the Municipal Health Office while EU-ASEP provided technical assistance. According to the Pinowayan barangay health worker Raquilyn Managaytay, they used to travel 15 to 20 kilometers through treacherous road to bring life-saving medicines and vaccines such as tetanus toxoid, anti-rabies vaccine, antibiotics and insulin to their patients in the barangay. With the vaccine refrigerator, these vaccines and medicines will now be readily available for the people of Pinowayan and nearby upland communities. 

Role of CENECO and LGU

During the August 6 program, Usec. Juaneza also thanked the CENECO and the LGU of Don Salvador Benedicto for the support to the Pure project. In a memorandum of agreement signed among the project partners, CENECO accepted the role as project owner that will assign and monitor the use of the decorticating machine to the pineapple farmers through the Bisfa.

The LGU, which also provided a cash counterpart in the completion of the Pure building, will assist in monitoring and building the capacity of Bisfa. 

Mayor Dela Cruz also said they are interested in replicating the project in other far-flung areas.
Representatives from the DOLE and DTI pledged to support Bisfa by giving them access to current funding programs, including the provision of additional post-harvest equipment as well as cash grant. 

The pineapple fiber that will be produced by Bisfa already has a ready market through Ananas-anam, an international textile company that specializes in the production of piña felt.

CENECO General Manager Atty. Danny Pondevilla and CENECO Board President Jojit Yap both thanked the DOE, EU-ASEP and TEFI for choosing CENECO to manage and sustain the project. CENECO will conduct monthly technical monitoring of the solar PV system as well as the vaccine ref to ensure its sustainability. 

###

TAGUIG CITY – The Department of Energy (DOE), through the Renewable Energy Management Bureau (REMB), and the Green Energy Auction (GEA) Committee, conducted a two-day Public Consultation on draft Department Circulars (DC) entitled, “Providing the Guidelines for the Green Energy Auction Program in the Philippines” and “Amending Section 13 (E) and Section 18 (C) of Department Circular No. DC2009-05-0008 entitled, Implementing Rules and Regulation of Republic Act (RA) No. 9513” which took place virtually on 5 and 6 August 2021 for Luzon-Visayas leg and Mindanao leg, respectively.

Secretary Alfonso G. Cusi said, “As the need for RE increases, we ardently continue to pursue our RE initiatives in achieving a Clean Energy Scenario. I am confident that the enhanced GEAP guidelines and amendments will further bring us closer to our goal”. 

These two policies are aimed at increasing the RE Program particularly in achieving the Government’s aspirational target of attaining 35% RE share in the Generation Mix by 2030 and works to drive to greater than 50% by 2040, dominating the generation mix. 

“We have decided to come up with a more practical, proven, and effective framework to facilitate increase investment in the RE capacities through a level-playing field that would result to attainment of transparent and competitive rates.” Renewable Energy Management Bureau (REMB) Director Mylene C. Capongcol said.

The purpose of the new guidelines on GEAP is to provide immediate and timely investments, support the development of, and increase access to financing for new or additional capacities under a competitive process, as well as implement programs that promotes clean and sustainable environment.  The DOE through the GEA Committee aims to conduct the First Round Bid in October 2021. 

The GEA Committee Chairperson, Assistant Secretary Redentor E. Delola said, “One of the things that we’ve discussed within the DOE is actually try to improve on the GEAP to hit our targets using existing mechanisms that will increase the share of RE in the market, increase the available supply of power in the grid, and at the same time will increase the Renewable Portfolio Standards (RPS) allocation of the Distribution Utilities (DUs).”

The other draft DC on RA 9513 IRR Amendments was to address the long-standing outstanding concerns raised by RE Developers and fabricators, manufacturers, and others target recipients on the implementation of  the tax provisions especially on the automatic availment of the 10% Corporate Income Tax and Zero -Rate VAT, as well as other incentives in the RE Law. Moreover, ensuring that all fiscal incentives are properly availed of thru an efficient government process.

The public consultations were led by the GEAC Chairperson, Assistant Secretary Redentor E. Delola and REMB Director Mylene C. Capongcol as Keynote Speakers together with Assistant Director Marissa P. Cerezo, and REMB Division Chiefs as Panelists. A total of 1,001 participants attended the the two (2)-day consultation, 713 from Luzon-Visayas leg, and 288 from Mindanao leg.

REMB Assistant Director Cerezo, in her closing remarks, thanked all the participants and expressed her appreciation for all the comments, inputs, and questions shared by the participants. She further reiterated that the Department is targeting to finalize the Guidelines within the month of August.

The conduct of this public consultation was made possible with the assistance of the United States Agency for International Development – Energy Secure Philippines (USAID-ESP).

###