TAGUIG CITY – The Department of Energy (DOE) yesterday (22 April), entered into a Memorandum of Agreement (MOA) with the Department of Trade and Industry that would establish closer coordination and collaboration in the development and promulgation of Philippine National Standards (PNS) on natural gas products, facilities, and code of safety practices in the downstream natural gas industry.

“The DOE continues to exert all efforts to develop the country’s natural gas industry from its nascency in support of our energy goals. I am confident the fruits of this partnership, to be realized by the DOE-Oil Industry Management Bureau and the DTI-Bureau of Product Standards (BPS), would better guide our stakeholders on the proper requirements and processes. This would definitely boost investors’ confidence in the regulatory framework of the country,” Secretary Alfonso G. Cusi stated. 

The Agreement is pursuant to the mandate of the DTI-BPS as the recognized national standards body tasked to develop, implement, and coordinate standardization activities in the country. On the other hand, the DOE serves as the designated Public Standards Development Organization in charge of developing standards in the downstream natural gas industry. 

Under the MOA, a Technical Committee will be created to conduct research and consultation activities to develop acceptable natural gas industry standards. The Committee will be comprised of representatives from the relevant government agencies, the academe, and standards developing organizations; industry players; and manufacturers/suppliers. 

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TAGUIG CITY – The Department of Energy (DOE) recently held the Third Public Consultation on the Drafting of the Department Circular on the Guidelines for the Endorsement of Energy Efficiency (EE) Projects to the Board of Investments (BOI) for Fiscal Incentives. 

The online event, which was held on April 15, was participated in by representatives from the commercial and industrial sectors, industry associations, energy efficiency alliance group, professional organizations, and energy service companies (ESCOs).

Secretary Alfonso G. Cusi commended the successful holding of the public consultation and thanked everyone involved, including the attendees.

“I look forward to receiving the final copy of the department circular so we can release it at once. This will be a big boost in our efforts to attract investors as more fiscal incentives are given to EE projects,” Secretary Cusi said.

The proposed Department Circular aims to encourage investments for energy efficiency projects by providing fiscal incentives such as income tax holidays, where the DOE will evaluate EE projects and determine the total effect in consideration to energy savings that will lead to the reduction of greenhouse gas emissions, and lowered operational costs.

DOE Assistant Secretary Gerardo D. Erguiza Jr. welcomed the participants and thanked the BOI for their assistance in developing the draft circular.

For his part, Senior Undersecretary Jesus Cristino P. Posadas emphasized the importance of investments at a time of economic downturn and how energy efficiency plays a vital role for the resurgence of the country through investments and job generation.

Energy Utilization Management Bureau (EUMB) Director Patrick T. Aquino presented the final version of the Department Circular and responded to follow-up questions during the open forum.

Once approved, the Department Circular will support the Energy Efficiency and Conservation Act or R.A. 11285 that was enacted into law in 2019. The consolidated and final version of the circular will be submitted to Secretary Cusi for approval.

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TAGUIG CITY - The Department of Energy (DOE) and the national government agencies assure the public that the government is on top of the situation and has undertaken the necessary actions to ensure energy security this summer as instructed by Secretary Alfonso G. Cusi. 

In a meeting with the DOE officials yesterday, Secretary Cusi was informed that the updated 2021 power outlook provided by the National Grid Corporation of the Philippines (NGCP) dated 14 April 2021 showed that the Luzon grid will no longer have red alert but only yellow alerts from Weeks 15-18, 21-25. 

Secretary Cusi directed his team to continue monitoring the actual day-to-day peak demand closely in comparison with the projected demand as a basis for its coordination efforts. 

“Again, I remind everyone of our commitment to the people to provide reliable and stable power supply. We should extend this beyond the summer months because the government’s COVID-19 vaccination program has been rolled out. We must protect the vaccine cold storage and healthcare facilities,”  the Energy chief said. 

In today’s virtual press conference, the DOE informed the public of its actions to address the needed power services during the vaccine rollout in the demand peak quarter 2021. 

“We have been looking into the most appropriate preventive maintenance schedule that would secure the provision of electricity services for 2021, particularly for April, May and June,” Power Assistant Secretary Redentor Delola stated. 

Mindful of the pandemic and other challenges affecting the energy sector, the DOE reported during the 59th Cabinet Assistance System (CAS) Meeting held on 23 March 2021, that it is closely coordinating with system operator (National Grid Corporation of the Philippines). the market operator Independent Electricity Market Operator of the Philippines) and the concerned power generators to protect the interests of the public. 

During the CAS Meeting, DOE Undersecretary Felix William B. Fuentebella and DOE Power Bureau Director Mario C. Marasigan presented the outlook of the three grids and the actions undertaken by the Department in partnership with the stakeholders to prevent any possible tight supply conditions and to ensure unimpeded delivery of services from the energy sector. The DOE also asked for assistance from the Energy Regulatory Commission (ERC), the Philippine Competition Commission (PCC) and the Department of Justice (DOJ) for enforcement assistance and case build-up on any violation of laws and other policies (such as DC2020-02-0004) by the industry players. Lastly, the DOE requested that all agencies to participate in Bayanihan Demand-side Management through energy efficiency and conservation measures. 

Since January 7 of this year, the DOE held coordination meetings with the NGCP, the generation companies, and other electric power stakeholders to address the projected power issues that may lead to insufficiency of power supply. From these meetings, DOE enjoined TeaM Energy Corporation and KEPCO Ilijan Corporation (KEILCO) to defer the Planned Maintenance Schedule of Sual Unit 1 (647 MW) and Ilijan Block A (600 MW), which was followed by an official letter dated 19 April 2021. While the DOE is yet to receive an official response, both TeaM Energy and KEILCO confirmed their deferment of preventive maintenance schedule (PMS) to comply with the “no preventive maintenance policy during peak quarters”. 

The DOE also called the attention of the following generation companies that were on outage last March 2021 to request information on the outage and estimated time in or resumption of operation: 

a. Asia Pacific Energy Corporation (APEC);
b. Caliraya-Botocan-Kalayaan (CBK) Power Company Ltd;
c. Luzon Hydro Corporation (LHC);
d. First Gas Power Corporation (FGPC);
e. GNPower Mariveles Center Ltd. Co. (GMEC);
f. Petron Corporation; and
g. Sem Calaca Power Corporation (SCPC). 

The DOE has been closely monitoring the actual day-to-day peak demand in comparison with the projected demand as a basis for its coordination efforts. In the updated 2021 power outlook provided by the NGCP dated 14 April 2021, the Luzon grid will no longer have red alert but only yellow alerts from Weeks 15-18, 21-25. However, since the year-to-date demand profile suggests that the optimistic forecast will not be achieved, thus providing additional reserve. 

As a way forward, the DOE reminded the industry players of their roles for providing quality, reliable, affordable and secure supply of energy services: 

For the distribution utilities to supply the electricity in a least-cost manner to its captive market.  It also mandates them to prepare and submit to the DOE their annual Distribution Development Plan. With these provisions in place and the issuance of the DOE’s CSP Policy in 2018, the DUs are expected to continuously conduct power supply contracting through CSP that will ensure the provision of reliable, stable, secured, and affordable electricity in their franchise areas. 

For the system operator and the generation companies, the DOE emphasized their compliance Department Circular No. 2020-02-0004 entitled “Providing Guidelines on the planned Outage Schedules of Power Plants and Transmission Facilities and the Public Posting of the Grid Operating and Maintenance Program”, issued on 06 February 2020. Among the pertinent provisions of the said policy are: 

• Section 3.1. All Generating Companies shall submit three-year planned outage schedules for their power plants to the NGCP for the Grid Operating Program (GOP) in accordance with the PGC. 

• Section 3.2. NGCP and the Market Operator (MO) shall device a mechanism to come up with an optimal generation and transmission planned outage schedule which shall be the basis of the Grid Operating and Maintenance Program (GOMP); Provided, that only the hydroelectric power plants shall be allowed to conduct power plant maintenance during the peak quarter. 

• Section 3.3. NGCP shall submit to the DOE the GOMP on the last day of October of each year, for review and approval. 

• Section 3.4. The DOE, in its review of the resulting reserve profile, shall direct the necessary adjustments in the generation and transmission planned outage schedules. NCGP, the MO, and the concerned generating companies shall be informed accordingly of any changes in the submitted GOMP. 

• Section 3.7. The MO shall monitor compliance of concerned electric power industry participants with the approved GOMP schedule and provide a report to the DOE. 

The officials of the DOE assured the public that it will exhaust all the powers of the government to perform its mandate of ensuring energy security.

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The Department of Energy (DOE) stands firmly behind any decision and action of President Rodrigo Roa Duterte regarding the assertion of the exclusive licensing authority of the Philippines over petroleum and other resources in the seabed and subsoil of the West Philippine Sea. 

The DOE supports the President’s statement regarding the defense of the resources of the Philippine seabed and subsoil, as this is in accordance with the Constitution and our petroleum laws. Under our laws, only the Philippine government, through the DOE, may issue licenses to drill in Philippine land territory, including its islands, internal waters, territorial sea, exclusive economic zone (EEZ), and continental shelf. 

Should any foreign state engage in petroleum activities inside the Philippine petroleum jurisdiction, the DOE shall take the necessary steps to protect our licensees and preserve our resources. It shall defer to the sole prerogative of the President regarding any security option. It shall also conform to any decision that the Department of Foreign Affairs might take regarding the ongoing informal negotiations on oil and gas cooperation with China. 

Meanwhile, the DOE continues to develop the uncontested Philippine EEZ and continental shelf through the resumption of petroleum operations by our licensees and the award of new petroleum areas. The Philippines remains in business, COVID-19 and China, notwithstanding.

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