INDUSTRY INFORMATION

LUZON: Region IV-A | Region IV-B | VISAYAS: Region VI | Region VII |  MINDANAO: Region X | Region XI

The 2005 PEP Update embarked on the preparation of Regional Energy Plans (REPs) of selected regions to ensure more focused, comprehensive, region-specific energy plans. This initiative was consistent with the strengthened mandate of the DOE to "develop, prepare and update an integrated national energy plan and other support plans for the energy sector". The REPs likewise aim to highlight the role of energy as a critical sector in the region’s development and provide in-depth details that will substantiate the indicative plans and programs under the PEP Update.

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Acknowledged for its substantial indigenous energy resources that may be tapped to meet its growing energy requirements, Luzon remained as the preferred haven for foreign investments. In this Plan Update, formulation of REPs for Region IV-A and IVB were considered being the top contributors to the Luzon growth.

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For Region IV-A or CALABARZON, continuous exploration and development of its indigenous energy resources which include geothermal, hydropower, wind power and coal, will still be prioritized during the next ten years. A 20-MW geothermal energy is available in Mabini, Batangas while a total of 24 sites for hydropower with an estimate capacity of 159 MW have been identified in the region. For wind energy, DOE has targeted the commissioning of two wind power projects in 2008 located in Caliraya, Laguna (25 MW) and Mauban, Quezon (50 MW). To develop the coal reserves in the region which are estimated at 258 thousand MMT, new entrants to the industry will be encouraged while at the same time, promotion of small-scale mining and clean coal technology will be pursued.

Promotion on the use of natural gas and other alternative fuels for both power and non-power application will likewise be pushed through to minimize the region’s dependence on imported fuels. For its downstream applications, installation of natural gas infrastructure network such as distribution and transmission pipelines, terminals and other ancillary facilities is envisioned. In terms of CNG station, one mother station and two daughter stations are targeted in Batangas and Laguna by 2005, respectively.

As regard to the region’s growing electricity requirement, an additional 350 MW to the existing Pagbilao coal-fired power plant will be commissioned by 2008 to meet the anticipated capacity shortfall in Luzon by early 2008. For the small island grids, a total capacity of 2,500 kW will be added in 2005, 1,400 kW in 2010 and 5,000 kW in 2014.

Under the Expanded Rural Electrification Program, the remaining 79 unenergized barangays in the region are scheduled to be provided with electricity from 2005 to 2007. Included in the program are: expansion of 251 ckt.-km. of distibution lines, rehabilitation of 807 ckt.-km. of distribution lines and construction of substations with total capacity of 120 MVA.

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Region IV-B 

For Region IV-B or MIMAROPA, the government in partnership with the private sector shall continually exert its effort to harness indigenous energy resources in the region. Development of geothermal, hydropower and wind power as well as the region’s solar potential will be targeted to augment the region’s off-grid power requirements. The region has one potential site for a 40-MW geothermal power plant located at Montelago, Oriental Mindoro. For hydropower, a total of 55 MW is available for development by potential investors from 2005 to 2013. To come onstream during the planning period are four potential wind power projects located in Marinduque (5 MW), Oriental Mindoro (20 MW), Occidental Mindoro (10 MW) and Romblon (5 MW).

Likewise, under DOE’s thrusts, activities geared towards the promotion of petroleum exploration in the region is a major concern. Current installed capacity will be increased by 65 MW during the planning period while a total of 120 MVA substation projects will complement the 597-km transmission line projects intended for the region. Further, in a move to meet the growing requirements of large island provinces, the NPC’s SPUG areas will be offered to new power players to take over the provision of electrification in these areas.

he Expanded Rural Electrification Program has lined up the energization of the remaining 131 unenergized barangays as follows: 70 barangays in 2005, 58 barangays in 2006 and three barangays in 2007. Distribution line expansion and rehabilitation will total 1,834 ckt.-km. and 331 ckt.-km., respectively. These will be complemented by substations with a total capacity of 25 MVA.

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Known for its indigenous energy resource potential such as geothermal, hydropower and biomass, the Visayas region is envisioned as the center of renewable energy development in the country. For this Plan Update, formulation of REPs for Region VI and VII were initiated in view of the anticipated power crisis in Panay Island on 2005 and the fast growing industrialization in Cebu.

For Region VI, the development of the indigenous energy resources particularly biomass will be given priority. There are four identified biomass projects for power generation, namely: Talisay Bioenergy (30 MW), Victorias Bioenergy (50 MW), Bais Bioenergy (25 MW) and Antique Bioenergy (2 MW). For geothermal, potential sites located in Bago City and Mandalagan are capable of generating an aggregate capacity of 74 MW. On the other hand, a total of 65 MW of hydropower is available for investment. These include the 29-MW Timbaban Plant, 4-MW Igbalo Plant and the 32-MW Villasiga Plant. Meanwhile, harnessing of coal will be supported by the DOE, as the region is expected to produce 28 MMMT.

About 235 MW of additional capacity requirements has been lined up. Among the committed projects are the NPC’s 110-MW Pinamucan Diesel Plant, the 40-MW Northern Negros Geothermal, the 30-MWTalisay Bioenergy and 25-MWBais Bioenergy. For the off-grid power rrquirements, two diesel-fired generators will be located in Antique (323-kW Caluya DPP) and Iloilo (263-kW Gigantes DPP).

The Expanded Rural Electrification Program for the region include the energization of the 134 unenergized barangays from 2005 to 2008, 1,554 ckt.-km. of distibution line expansion, 748 ckt.-km. of distribution lines for rehabilitation and installation of substations with total capacity of 230 MVA.

For the downstream sector, establishment of new petroleum product facilities to increase the region’s supply capability will be established in various locations in the region.

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For Region VII, exploration, development and utilization of energy resources will be pushed to meet the expected 5.6 percent increase in energy demand during the ten-year period. The 20-MW Palinpinon Optimization plant and the 40-MW Dauin project are two geothermal plants available as indicative capacity addition in the region while a total of 71 MW of hydropower projects has been lined up for development and implementation. Coal production in the region is expected to increase from a level of 54 MT in 2005 to 75 MT in 2014.

In terms of the region’s electricity requirement, a total of 385 MW capacity will be added to the total electricity supply of which 29 percent will be sourced from renewable energy options. Several transmission and interconnection projects are scheduled for implementation which include, among others, the Northern Negros associated transmission lines, Palinpinon-2 Optimization associated transmission lines and the 138-kV Leyte-Bohol interconnection facilities. For the small island grids, cumulative installed capacity is estimated to reach 49 MW in 2014. A total of four additional substations with an aggregate capacity of 20 MVA is targeted for commissioning during the planning period.

The 51 remaining unenergized barangays is scheduled for electrification in 2005 and 2006. A total of 687 ckt.-km. of distribution lines will be commissioned, 222 ckt.-km. of distribution lines will be rehabilitated and a total of 145 MVA substation capacity will be installed.

For the downstream sector, optimized utilization of natural gas from onshore Libertad field is envisioned with the projected 250 units of CNG-fueled public utility buses (PUBs) plying the north Cebu and Cebu City by 2008. Likewise, continuing promotion for clean coal utilization will be pursued especially with the commissioning of the RP-Japan Coal Briquetting Demonstration Plant in Cebu.

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Recognized as "gateway to opportunity" or "the untapped frontier" for domestic and international investors eyeing for opportunities in agribusiness, power, industry, and tourism, the regions in Mindanao are vital in the formulation of this Plan. With the expected increase in the region’s economic development, formulation of REP for Region X or Northern Mindanao and Region XI or Davao region was considered.

With its existing ten major river systems whose waters have already been partly tapped or can still be tapped, development of indigenous resources in Region X, particularly hydropower, is targeted to provide additional power generation facility particularly for off-grid applications. The hydropower projects available for investment totaled 565 MW which include 523 MW of large-hydropower projects and 43 MW for mini-hydropower projects.

To avert the looming power shortage in Mindanao, the 210-MW Mindanao Coal Power Project is scheduled for commissioning in 2007. Other indicative power projects located in the region are the 8-MW Cabulig Mini-hydropower Plant, the 30-MW power expansion plant of Minergy Corporation and the 68-MW Tagoloan Hydropower Plant. Among the transmission network to be commissioned during the planning period are the 230-kV Abaga-Kirahon transmission project and the 230-kV Kirahon-Bunawan transmission project.

The scheduled energization of the remaining 158 unelectrified barangays will be pushed through from 2005 to 2008 and will be supported by the installation of 1,104 ckt.-km. of additional distribution lines, rehabilitation of 720 ckt.-km. of distribution lines and installation of substations with a total capacity of 150 MVA.

In terms of the region’s downstream facilities, enhancement of existing coal facilities and/or satellite terminals shall be undertaken to meet the growing coal market requirements. Likewise, feasibility studies for the construction of various natural gas infrastructure facilities are being conducted for the region.

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In this 2005 Plan Update, exploration and development of Region XI’s indigenous resources such as geothermal and hydropower will be a continuing priority of the DOE. A total of 60 MW (20-MW Amacan project and 40-MW Southeat (SE) Apo project) of geothermal capacity located in the region is envisioned for commissioning.

Harnessing of hydropower prospects specifically in the electrification of isolated island grids will be supported in collaboration with various foreign donors and funding agencies. Under the transmission and substation capacity addition program in the region, facilities will increase by as much as 49 ckt.-km. of 69 kV lines and 300-MVA substation capacity. For the small island grids, total installed capacity will reach 3,849 kW in 2014. NPC-SPUG will embark on a project on power interconnection of Samal Island with the Mindanao Grid.

To attain full energization, the remaining 13 barangays will be provided with electricity from 2005 to 2007. A total of 924 ckt.-km. of distribution lines will be rehabilitated while expansion of 394 ckt.-km. of distribution lines will be undertaken, requiring the installation of additional 75 MVA of substation capacity.

Given the expanding usage of natural gas, infrastructure facilities such as offshore-offloading terminal and refilling stations need to be constructed. Likewise, a project that will convert existing public utility vehicles to natural gas is being proposed.

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