1.

Philippines' coal-power plans unsettle clean-energy investors

Erik dela Cruz MANILA, Aug 24 Plans to boost the Philippines' coal-fired power capacity by
more than 25 percent in just three years will be a cheap solution to the country's precarious
power supply but bad news to investors in clean energy.
A total of 25 coal-fired power stations are in the pipeline with capacity totalling 12,200
megawatts, according to an updated list of power projects published by the Philippine
Department of Energy last month. Twelve of them with a total capacity of 3,400 MW are under
construction, and are slated to be completed by 2018. Those plants require at least 10 million
tonnes of coal a year, industry estimates show.
About a third of the country's power capacity of nearly 18,500 megawatts uses coal as fuel, but
supply from local mines mainly owned by Semirara Mining and Power Corp is not enough. Coal
imports soared to a record 15.2 million tonnes last year. While miniscule compared to purchases
by China and India, growing Philippine imports will be welcomed by Indonesia, its traditional
main supplier, at a time prices are falling. The Philippines also buys coal from Australia, Vietnam
and China.
"A significant portion of our electricity market is dependent on imported coal from Indonesia.
I'm worried about our energy security being put in the hands of another country," said Vincent
Perez, a former Philippine energy secretary who is now the CEO of wind power developer
Alternergy Partners.
Promoting solar, wind, hydro and geothermal energy has become a challenge for investors as the
government remains biased towards low-cost power from coal. Investors have been grappling
with high initial expenses and red tape. But Theresa Cruz-Capellan, chief executive of SunAsia
Energy Inc and president of the industry group Philippine Solar Power Alliance, says the
additional coal-fired power plants should not be seen as lost opportunity for renewable-energy
investors. "By the time they have built those coal-fired plants, we believe there will be additional
demand and we can install additional capacity in just six months."
2. Experts cite potential of solar energy development in Philippines
MANILA, Philippines - The Philippines has strong potential in harnessing solar energy, both for
consumer use and power production, given the continued drop in prices and further innovation in
the field, officials said in a forum Wednesday.
The country is more than ready to join the solar revolution as it is nestled in the tropical zone,
Schneider Electric senior vice president for solar business Serge Goldenberg said in his keynote
speech at the Philippine Solar Summit held in Pasay City.

The archipelagic geology of the Philippines poses unique challenges in distributing energy
produced from solar plants, but aside from that, adapting a solar energy system for the country is
not far-fetched, Goldenberg said.
However, the Philippines needs to ensure proper infrastructure, maintenance and connected
technologies to make it work.
We believe that with the right energy management technology, a solar power system built and
developed in the Philippines has the potential to become a basis for other island nations who
wish to adopt the same system, Goldendberg noted.
The private sector should also start to look more into developing renewable energy (RE) projects,
Island Light & Water Foundation (ILAW) microgrid and off-grid micro-utility manager John
Herman said in the same event.
Developers should think about the opportunities out there as the Philippines integrates RE
development in regulations, he said.
The country implemented the feed-in tariff scheme in 2012, which provides incentives to
developers of RE.
Meanwhile, AES Philippines market business leader Neeraj Bhat bats for more investments in
the solar field through the development of battery energy storage which will integrate RE
projects into the grid.
The Philippines must be innovative on creating a market for ancillary service, he said.
Neeraj lauded a recent Energy Regulatory Commission (ERC) circular, which classified battery
energy storage as a new source of ancillary services or reserve power.
Under the circular, the ERC adopted the Grid Management Committees recommendations
classifying the so-called battery energy storage system (BESS) as a new source of frequency
control ancillary services, particularly contingency reserve and secondary reserve.
AES Philippines, the local unit of US energy giant AES Corp., is currently developing the first
40-megawatt (MW) battery storage facility in Negros Occidental. It is also offering its energy
storage batteries as a possible long-term solution to the power situation in the country.
From a consumer point of view, Goldenberg said global prices of solar photovoltaic (PV) or
panels have dropped 52 percent from 2008 to 2015.

Along with this trend, a study by the International Energy Agency showed solar could outpace
fossil fuels, wind, hydro and nuclear to become the worlds largest source of electricity by 2050.
This is an unprecedented trend. We have never seen such a fast drop in prices, Goldenberg
said.
3. Philippines sees slow take up of renewable energy
Leandro Leviste, 21, has taken leave from university to start a solar panel company so much
does he believe in the future of renewable energy in his country, the Philippines.
He started the company in August 2013 and has been installing solar panels on the roofs of the
countrys biggest shopping malls, the SM chain owned by retail tycoon Henry Sy.
Levistes belief in renewables has to do with the countrys ambition to make them account for
half of its energy mix by 2030, when demand for energy is forecast to exceed 30,000MW, more
than twice todays 12,000MW.
This ambition is fuelled by two key needs energy security and costs according to a report
from the World Resources Institute, a non-profit research group.
The Philippines imports most of its coal, oil and gas, driving up costs and making it dependent
on foreign suppliers for its needs.
Leveraging on its geological assets, the Philippines has strong capacity in hydropower and
geothermal power, which together make up 5,274MW of its total capacity of 16,163MW, or
about 30% of the total. (The country has 13,000MW of dependable capacity at any time, which
can barely keep up with peak demand.)
But other renewable energy sources, such as wind, solar and biofuel, make up only 117MW of
the total, indicating great potential for growth.
But things have been slow to move. Despite a law passed in 2008 to encourage higher use of
renewables, there was an increase of only 118MW in renewable energy capacity to 5,391MW
from 2007 to 2011.
Michael Guarin, an alternative energy consultant, said in a paper commissioned by Amsterdambased KPMG Global Energy Institute that a key problem is that renewable energy does not yet
offer as much bang for the buck as fossil fuels.
Power plants that use renewable energy cost more to build than those that burn coal, oil or
natural gas.

Renewable energy is also more expensive to produce now although it is expected to get
cheaper with critical mass and better technology making it a political issue in a nation where a
large part of the population can barely put food on the table and where the cost of electricity is
already the sixth highest in the world.
This, together with other reasons, makes it certain that the Philippines will continue to rely
heavily on fossil fuels for its energy needs, even as it tries to encourage the use of renewables.
First, there are pragmatic considerations, as seen in a 600MW coal-fired plant commissioned in
1998, which has been the lifeline of Masinloc, a sleepy fishing town 155 miles north of Manila.
Its owner pays about 150 million pesos (2.1m) a year in taxes and it provides thousands of jobs.
By contrast, renewable energy plants now require tax breaks and they usually do not hire many
people.
Another consideration is that, as the economy expands, the countrys energy requirement spikes
at a rate that is difficult for renewables to fulfill.
For example, the grid on Luzon, the countrys largest island and most important economically,
has an installed capacity of 11,805MW for its more than 44 million people, compared with
Singapores 12,521MW for a population of under six million.
But as many of the plants are old, during the dry months from March to May when hydropower
capacity drops, some plants cannot cope with higher output and break down, so the grids output
dwindles to 8,300MW just when demand peaks at 9,500MW. People and businesses have to cope
with rotating blackouts during this period. In the long term, the situation prevents powerintensive industries from expanding.
We cannot do away with fossil fuels, at least not in our lifetime. The demand (for energy) is still
increasing ... Thats why we still have to accommodate coal, said Mario Marasigan, head of the
energy ministrys renewable energy management bureau.
To cope with the increasing demand, the government has awarded 31 new contracts to build
coal-fired power plants, while 17 more are being negotiated. The goal is to add another
5,000MW of electricity from fossil fuels.
As for renewables, from 2008 to 2012, the energy ministry approved contracts for projects that
promised 5,600MW for a total of about 11,000MW, well short of the 15,000MW envisioned.
Despite efforts from the likes of Leviste, the Philippines may miss its 2030 target for renewables.

4. Powering the Philippines on renewable energy

Faced with this situation, the government has taken steps to mitigate the power supply situation
by prioritizing the development of the countrys indigenous renewable energy resources.
Renewable Energy Management Bureau Assistant Director Marissa Cerezo briefed the
Philippine National Bank (PNB) Board of Directors on the renewable energy industry. The
Philippines has huge, diverse renewable sources of energy that can be harnessed to generate
clean, non-polluting power. Developing these resources will reduce the countrys dependence on
expensive imported fuel. The available renewable energy sources and their energy potentials are
wind power estimated at 76,000 megawatts (MW), hydropower at 10,500 MW, geothermal at
1,200 MW, ocean energy at 170,000 MW, biomass (bagasse) at 236 MW, solar energy at an
average of 5 kilowatt-hour (kWh) per square meter per day, as well as the vast untapped potential
of
micro-hydro
power.
Making some quick computations, it appears that if we could develop all of these resources, the
total potential power that can be generated will be more than thrice the total power consumed by
the country in 2013. However, based on the power generation mix in 2013, the Philippines
derived only about 26% of its power requirement from renewable energy particularly from
hydropower plants which contributed 13.3% of the total and geothermal plants at 12.8%. Other
renewable sources such as wind, solar and biomass generated a mere 0.4% of the total power
consumed
in
that
year.
To accelerate the exploration and development of the countrys renewable energy resources, two
important laws were promulgated namely the Biofuels Act of 2006 (Republic Act 9367) that
provides fiscal incentives and mandated the use of biofuel-blended gasoline and diesel fuels, and
the Renewable Energy Act of 2008 (RA 9513) that provides fiscal and non-fiscal incentives to
private
sector
investors
and
equipment
manufacturers/suppliers.
According to Ms. Cerezo, since the enactment of the Renewable Energy Law in 2008, a total of
638 renewable energy projects with a potential capacity of 10,041 MW have been awarded as of
December
2014.
More
than
60%
of
these
are
hydropower
projects.
To encourage renewable energy investment, the government provides incentives such as:
(1) the feed-in tariff (FIT) scheme that provides priority treatment to renewable energy
developers in terms of connection to the grid, purchase and transmission of and payment for by
grid operators, and a fixed premium rate for a specified period of time. The FIT rates for the
renewable energy sources are P9.68 per kWh for solar energy, P8.53 per kWh for wind energy,
P6.63 per kWh for biomass and P5.90 per kWh for run of river hydropower. The power cost for
solar projects is currently under review as the installation target for solar powered projects was
increased;
(2) Second is the net metering scheme, which allows households and businesses to produce their
own energy with solar rooftop installations of up to 100 kW. It should also be noted that
renewable energy projects have relatively shorter development and construction periods
compared to traditional large scale coal and fossil-fueled power projects.
The Forum on Renewable Energy 101 was held recently. With resource speakers Lean Leviste,

President of Solar Philippines, former Department of Energy (DoE) Undersecretary Jose M.

Layug, Jr., and Commissioner Alfredo Non of the Energy Regulatory Commission.
At the current price of solar panels which have significantly dropped, payback period is about six
years, coupled with peace of mind that in case of power shortages, we have a back-up source of
power. The major risks involved in renewable energy are: reliability of source, transmission,
change
in
laws
and
billing
and
collection
for
the
FIT.
The Philippines is truly blessed with renewable energy sources such as wind and the sun that can
be harnessed to produce stable power that is needed to electrify homes and fuel businesses that
will propel the countrys economic growth. Despite the progress in the renewable energy sector,
there is certainly much work still to be done. It is hoped that renewable energy can be a good
contributor to the power sources of the Philippines.
5. Philippines seeking to tap its potential in renewable energy
MANILA: The Philippines may not be one of the biggest emitters of carbon dioxide, but
according to the Global Climate Risk Index 2015, it is one of the most vulnerable to climate
change.
And with this in mind, the country along with international partners is looking to utilise its
sustainable energy resources.
Climate change has taken a more prominent position in government policy worldwide, with
many countries ramping up their use of renewable energy. According to the Renewables 2015
Global Status Report, sources of sustainable energy made up nearly half of new input to the
world's total power capacity in 2014, with the most popular forms of renewables being wind,
solar and hydro power.
Although resource-rich Philippines is one of the top five investors of geothermal power, other
sustainable sources, such as wind and solar are under-utilised.
New technology, such as personal wind turbines, has been popping up around the Philippines,
but the rate remains slow. While the Philippines has a huge capacity for sustainable energy, such
as hydropower and geothermal, it only makes up a small percentage of the total energy make-up
- leaving a lot of room for potential growth.
One reason why sustainable energy makes up such a small percentage is due to the structure of
the energy sector. "The energy sector is private sector-driven; its a free market even for
investors, said Zenaida Monsada, Officer-in-Charge, Philippines Department of Energy. The
present practice is moving towards coal, as its the least costly.
She added: Our aspiration is for a balanced energy mix one-third for coal, one-third for
renewable and one-third for natural gas, even if its a fossil fuel its much cleaner than diesel.

In response, the European Union has been investing heavily in the Philippines' energy sector. The
EU has committed 12 billion pesos (US$265 million) in energy investments between 2014 and
2030.
"We have picked energy as one of our focal areas because we believe that reducing the cost of
energy will help promote higher economic growth here in the Philippines," said Guy Ledoux, EU
Ambassador to the Philippines.
According to Mr Ledoux, while the per capita emission of carbon dioxide in the Philippines is
still very low, it is still one of the countries most affected by climate change. In the past two
years, the Philippines has been hit by a number of extreme weather events, such as Typhoon
Haiyan in November 2013.
6. Asia Update: Geothermal in Japan, Indonesia, The Philippines
The Philippines: Bids on Geothermal Contracts Announced
The Renewable Energy Management Bureau has received bids for several new service contracts
and still plans to make the awards on September 4. The Southern Leyte geothermal prospect
received bids from Repower Energy Development Corp.; Cabalian Bay Company, Inc.; and
Aboitiz Renewables, Inc. The Amacan geothermal prospect in Compostela Valley received bids
from APC Energy Resources, Inc.; Emerging Power, Inc.; Energy Development Corp.; Biliran
Geothermal, Inc.; and Repower. The Unified Leyte Geothermal Power Plant (ULGPP) received
only one bid, from Unified Leyte Geothermal Energy, Inc.
The Philippines: FIT for Geothermal a Possiblity
Propositions for the Philippines Renewable Energy Act could include new FIT incentives for
geothermal as well as hydro projects. Energy Secretary officer-in-charge Zenaida Y. Monsada
told press the NREB (National Renewable Energy Board) is initiating discussions and will
evaluate the potential draw for investors.
The Philippines: PSALM to Discuss Next Moves for Unified Leyte
The Power Sector Assets Liabilities Management Corp. (PSALM) will soon meet to discuss the
next move for the sale of remaining contracted capacity at the Unified Leyte Geothermal Power
Plant (ULGPP). PSALM may then move to negotiate with Unified Leyte Geothermal Energy,
Inc. (ULGEI), the sole company to bid on ULGPP in the recent auction; or PSALM may conduct
another round of bids for the contract.
7. Contract bidding for Mindanao coal plant deferred to next year

MANILA, Philippines - The bidding for the privatization of the output of the 210-megawatt
(MW) Mindanao coal-fired power plant in Misamis Oriental will be deferred until after summer
next year, when the power supply situation stabilizes in the region, a Department of Energy
(DOE) official said.
It was decided earlier this month by the board of Power Sector Assets and Liabilities
Management Corp. (PSALM) to defer the bidding to next year, DOE OIC-Secretary Zenaida
Monsada said.
Bidding was supposed to take place in November and the awarding in February. But that has
now been deferred, she said.
Monsada explained the plants independent power producer administrator (IPPA) should be
auctioned when the supply situation is stable.
The DOE official noted the auction could happen summer next year.
Bidding will take place after summer next year because during summer, supply situation is still
uncertain, Monsada explained.
This is the second time the auction for the IPPA of the Mindanao plant has been reset.
Last month, PSALM president and CEO Lourdes Alzona announced the agency has pushed back
the bidding to Nov. 25 from Sept. 23 in consideration of the DOE directive to defer the
Mindanao Coal IPPA selection and appointment.
The DOE had said privatizing the management of the plants output could lead to higher
electricity rates amid the power supply shortage in Mindanao.
Six groups have expressed interest in the Mindanao Coal IPPA, one of them being a partnership
between Aboitiz Power Corp. and Negros-based grains trader and miller La Filipina Uy Gongco
Corp.
The plant, located in Misamis Oriental, is operated by Germanys Steag State Power Inc. under a
25-year build-operate-transfer (BOT) power purchase agreement scheme until 2031.
Currently, Steag owns 51 percent of Steag State Power, with AboitizPower owning 34 percent
and La Filipina the remaining 15 percent.
Steag State Power operates the Misamis Oriental plant, which was constructed under a buildoperate-transfer agreement with the government.

8. Power crisis looms in 2015

MANILA, Philippines - Energy Secretary Carlos Jericho Petillla will ask President Aquino to
declare a state of emergency or crisis in the power sector to allow the government to tap
additional power capacity next year.
He said there is a projected deficit of 200 megawatts (MW) for some days of April and May
2015, and the emergency powers would allow the government through the Power Sector Assets
and Liabilities Management Corp. (PSALM) to contract additional power.
Petilla said he is recommending additional capacity of up to 500 MW, instead of just 200 MW to
provide a buffer in case the projected deficit becomes bigger.
Its only for a few days next summer, he said, adding the measure is necessary to avoid
blackouts next year, as some power plant projects or expansion plans may not push through.
Petilla cited the Malampaya natural gas facility in offshore Palawan, which is expected to shut
down from March 15 to April 14, 2015.
Supply not enough
There is an admission that by 2015 our supply is not enough. There are projects that we feel
may not push through, he said.
The Electric Power Industry Reform Act (EPIRA) of 2001 prohibits the government from
constructing power plants. However, Section 71 of the law states that the President, upon
determination of an imminent shortage of supply of electricity, may ask Congress for authority
through a joint resolution, to establish additional generating capacity.
The emergency power allows the President to come up with additional capacity, Petilla said.
President Aquino has not approved Petillas recommendation as of press time yesterday.
If and when the President invokes Section 71 of the EPIRA, the government through PSALM
will contract additional capacity by renting diesel fuel facilities similar to what Japan used in the
aftermath of the nuclear disaster that hit Fukushima in 2011.
A 200-MW bunker fuel facility will cost an estimated P1.5 billion, which the government can get
from the Malampaya Fund, Petilla said.
The committed power projects for next year include the 87-MW Burgos wind farm scheduled to
commence in February; 150-MW coal plant and 18-MW biomass facility in May; 10.8-MW

biomass and 13.2-MW hydropower plant in August; 67.5-MW Pililia Wind in September and a
100-MW Avion plant in October.
9. Electricity bills may go up this month Meralco
MANILA, Philippines - Instances of tight supply and restrictions from the Malampaya natural
gas field in offshore Palawan could jack up electricity rates this month, a Manila Electric Co.
(Meralco) official said.
There were several instances of yellow alerts in the supply month of July which may impact in
August bills, Meralco spokesperson Joe Zaldarriaga told reporters via text.
A yellow alert means reserves are below the minimum level set by the regulator. In the Luzon
grid, the minimum reserve is pegged at 647 megawatts (MW) or the size of the Sual power plant
in Pangasinan.
The Luzon grid may have been placed under yellow alert due to supply restrictions from
Malampaya.
We also noted supply restrictions from Malampaya which may have prompted the plants
obtaining supply from it to resort to utilizing liquid fuel, Zaldarriaga added.
Meralco sources 40-60 percent of its supply from power plants that derive fuel from the
Malampaya natural gas field.
The gas field supplies power to three natural gas-fired power plants in Luzon which accounts for
40 percent of the islands power requirements.
These plants are Lopez-owned First Gas 1,000-MW Sta. Rita and 500-MW San Lorenzo plants
and Kepco Philippines 1,200-MW Ilijan plant, all in Batangas.
However, Zaldarriaga did not give estimates of the impact on electricity rates as Meralco has yet
to receive billings from power suppliers.
We, however, need to wait for all the billings from our suppliers to have an actual view of rates
for August, he said.
For the month of July, consumers had a 2.25 centavos per kilowatt-hour (kwh) reduction in their
electricity bills, contrary to an expected hike in rates, as the Energy Regulatory Commission
(ERC) granted Meralcos application for lower distribution charge that offset higher generation
charge.

July bills went down P4.50 for a typical household consuming 200 kwh, P19 for those
consuming 300 kwh, P42 for 400 kwh and P89 for 500 kwh.
10.

Pampanga electric coop settles P1.1 B loan with PSALM

MANILA, Philippines - Pampanga II Electric Cooperative Inc. (PELCO II) has settled its
outstanding obligation with state-run the Power Sector Assets and Liabilities Management Corp.
(PSALM) amounting to nearly P1.1 billion.
In a statement, PSALM said it received last Sept. 30 the full balance of the restructured
obligation of PELCO II amounting to P1.095 billion.
The amount of prepayment sets the record as the biggest ever received by the government
power firm from any electric cooperative (EC) for its outstanding obligation. This will redound
to the reduction of stranded debts of National Power Corp. PSALM president and CEO Lourdes
S. Alzona said.
PSALM said PELCO II is the first EC to succeed under the Investment and Management
Contract (IMC), a program of the National Electrification Administration (NEA).
Backed by IMC and a loan from the Philippine National Bank (PNB), PELCO II was able to
prepay its restructured account with PSALM, which originally amounted to P1.43 billion to be
amortized within a period of 10 years beginning October 2010.
This is a historical event for PSALM because PELCO IIs prepayment is the first full
prepayment to us, said PSALM Treasury Department manager Manuel Marcos M. Villalon II.
It encourages ailing electric cooperatives to consider IMC as an option to address financial
concerns. Hopefully, this can be a project that the other electric cooperatives will also engage
in, he added.
In October 2010, the PSALM board approved the restructuring of PELCO IIs unpaid power
obligations.
PELCO II, which distributes of electricity to the city of Mabalacat and towns of Guagua,
Bacolor, Sta. Rita, Lubao, and Porac, is currently under a 20-year IMC with the Comstech
Integration Alliance Inc. (Comstech) and the Manila Electric Co. (Meralco), the latter acting as
technical advisor to Comstech.
Based on the IMC, the investor-manager will settle PELCO IIs debts with the NEA and its
power supplier.

Meralco has also been tapped to upgrade the power distribution system of PELCO II.
11.

DepEd: 1.1 M students go to schools without electricity

MANILA, Philippines - Over 1.1 million students are enrolled in 5,954 public schools that have
no access to electricity, according to the Department of Education (DepEd).
During the launch of the LightEd PH campaign yesterday, Education Secretary Armin Luistro
gave a commitment that the agency and its partners will work toward energizing these schools to
provide a conducive learning environment to the students.
Personally, I would want it to happen before Christmas, he said. If not, hopefully before the
start of classes in June 2016.
Based on the data released by DepEd, 2,414 of the schools have been identified to be on grid
or in areas that can be reached by the National Electrification Administration (NEA).
Some 1,308 schools, on the other hand, are in remote or off-grid areas, while the remaining
2,232 have yet to be classified.
The number of schools without electricity has decreased from 7,817 in 2011.
Luistro said DepEd has laid out plans to electrify the schools that have been classified, saying it
has partnered with NEA and the Department of Energy (DOE) to provide solutions through
conventional and alternative sources of energy.
DepEd and NEA officials signed a memorandum of understanding yesterday, in which the latter
agreed to build its new posts near on-grid but unenergized schools.
The education secretary said they also requested the DOE to establish alternative energy hubs
near or within schools in off-grid areas.
Light makes vision possible. In the realm of education, let us be the light that will help our
children realize their vision for themselves, their families and our country, said Luistro.
We call on everyone to be part of this LightEd PH campaign and to bring light to those who
need it and to help in extending the hours of quality learning, he said.
12.

Turning garbage to electricity

I can understand the frustration of MMDA chairman Francis Tolentino when he advocated
amending the Clean Air Act to allow some garbage incineration. Every rainy season it is the

same story about garbage clogging our metro areas drainage system and he, among other
government officials, gets blamed.
DPWH is delayed in delivering flood control projects to ease or solve Metro Manilas flood
problem. Even then, it seems anything they do will be quickly overwhelmed by the volume of
garbage that will clog those big drain tunnels. Walking by the Roxas Boulevard seaside is no
longer fun because somehow, we have made Manila Bay our convenient garbage dump.
Chairman Tolentino is right. We should consider burning some of the garbage we produce,
after allowing for recycling of the recyclable stuff. Congress was wrong to impose a total
ban on garbage incineration supposedly because of air pollution.
I think those high-temperature incinerators are friendlier to air quality than what we are actually
doing now. As it happens, many of our people burn garbage anyway in the crudest way possible
with absolutely no regard for air pollution.
Whether at the garbage dumps or in our backyards, we practice this raw garbage burning
method to dispose of garbage, producing more toxic fumes than state-of-the-art incinerators will
ever produce. Because of this reckless burning of garbage in open fires, there are multiple
sources of more lethal toxic fumes nearer our living and working areas. Decaying garbage also
produces methane gas which is a more problematic greenhouse gas.
The Clean Air Act has resulted in floods due to garbage clogging our waterways and flood
control systems. Yet, it has not reduced the level of air pollution because ordinary citizens
overwhelmed by all that garbage resort to indiscriminately burning garbage in our
neighborhoods.
Recent advances in technology, on the other hand, make it possible to burn our garbage in a
controlled environment that does not release toxic gases, with the pleasant bonus of producing
electricity in the process. Over 10 years ago, I visited one such garbage incinerator in Mannheim,
Germany and it seems to work quite well.
The incinerator complies with Germanys stringent clean air law. It burns garbage as well as
produces a few megawatts of power. From the observation deck, I could see garbage being
delivered to the plant and fed to the furnace. I remember seeing a red sofa in the trash pile.
The information material describing the plant claims that the system has been expanded through
the years and now incinerates waste for more than one million inhabitants in the Rhine/Neckar
region.
It is a closed-loop cogeneration plant that meets the highest technological standards. The
Mannheim plant uses household waste and material from commercial and industrial customers.

They claim it has been proven to give exceptional performance with high availability levels
meeting all legal pollution requirements. Here is how the information material described how it
works:
Once trial samples have been inspected, the waste is mixed in the waste bunker to ensure
uniform calorific value. It is then fed into the boilers using the crane. By adding air, the waste
then automatically burns on the combustion grate at temperatures of up to 1,300 degrees C.
The high temperature ensures the dioxins and other toxic pollutants are safely destroyed. The
energy released from the waste is used to generate steam. The cogeneration process then makes
efficient use of the steam to generate electricity.
Also, around 15 industrial customers are supplied with an average of 65 tons of process steam an
hour. A boiler powered by natural gas is available to safeguard the volume of steam output.
The residues resulting from combustion are used in line with their material properties. Slag is
used as a material in road construction and landscaping. Ferrous metals are used in the iron and
steel industries. Filter dusts are put to use as backfill in the mining industry, while extracted
gypsum is used by the construction industry.
Apparently, chairman Tolentino is right about garbage incineration being a perfected art in
Sweden. I googled for information and it seems Sweden view garbage incinaration as one of the
countrys great green achievements.
The article on Swedish garbage incineration pointed out that while waste-to-energy incinerators
remain a controversial topic among US environmentalists, theres been little such debate in
Sweden as the country increased its waste burning capacity over the past decade.
Sweden now imports about 700,000 tons of garbage per year to help produce electricity and
heating for cities such as Helsingborg, a historic coastal hub of about 100,000 people in
southwestern Sweden.
Sweden also has fewer wide open spaces for stashing garbage in landfills. The country also
recognized that landfills have a major climate impact. When materials break down in landfills,
they emit methane a greenhouse gas 20 times more potent than carbon.
Today, only one percent of Swedens waste winds up in landfills. Half of it is recycled and 49
percent is burned in waste-to-energy facilities, up from 39 percent in 1999.
13.

Malampaya remittances may be halved this year

MANILA, Philippines - The proponents of the Malampaya deep water gas-topower project in offshore Palawan are expected to turn over lower royalties
to the government for 2015 due to depressed global oil prices.
The Malampaya consortium may remit half of what was turned over for 2014 as oil prices have
dropped by half since last year, Shell Philippines Exploration B.V. (SPEX) managing director
Sebastian Quiniones said.
Oil prices have dropped by half so roughly speaking, itll probably be half also, he noted.
The Malampaya consortium is composed of SPEX, the operator and developer of the Malampaya
gas field, with 45 percent; Chevron Malampaya LLC with another 45 percent and PNOC
Exploration Corp. with the remaining 10 percent.
Last year, the consortium remitted $900 million royalties to the government.
The 2014 remittance was lower than the previous years payment because the decline in the
prices of oil and gas had an impact on the Malampaya gas pricing.
Quinones said the consortium has already indicated the lower remittance forecast to the
government.
The DOE (Department of Energy), the BIR (Bureau of Internal Revenue) and the DOF
(Department of Finance) have asked us already. They are trying to plan the revenues that are
coming in. So we have to give them a projection based on what prices of oil are at the moment
and how the pricing of Malampaya goes, he said.
The Malampaya gas project is a joint undertaking of the Philippine government, spearheaded by
the Department of Energy, and the private sector under Service Contract 38.
Under the service contract agreement, 70 percent of the gross proceeds from the sale of natural
gas would go to the contractor to recover the investment cost while the remaining 30 percent is
shared by the government and the consortium on a 60-40 basis, respectively.
Since the project started in 2001, total royalties remitted to the government amounted to $8.5
billion.
SPEX has recently completed the P1-billion second phase and third phase of the Malampaya
project, which will maintain the level of gas production to fulfill commitments under existing gas
sales agreements until 2024.

Malampaya fuels three natural gas-fired plants in Luzon, with a total generating capacity of
2,700 megawatts (MW), or roughly 45 percent of the islands power generating requirements.
14.

120 Pasig homes now using prepaid electricity

MANILA, Philippines - At least 120 families at a government relocation site in Pasig City are
subscribed to the prepaid electricity scheme of the Manila Electric Co. (Meralco), which allows
small consumers to buy load credits of up to P1,000.
The kuryente load is a joint project of Meralco and the National Housing Authority to give
residents of Manggahan Residences 1, a low-rise building, access to electricity. Under the
prepaid scheme, users can purchase load credits from Meralcos business centers, bayad centers
and selected retailers.
15.

Waste + water = electricity

MANILA, Philippines - Two students from the Polytechnic University of the Philippines (PUP)
have proposed turning wastewater into electricity and reusing the water for daily use.
John Paul Santos and Christian Sta. Romanas concept of the Electrifilter won third place at the
fifth Go Green in the City competition last June. The Electrifilter is a device that generates
electricity while treating wastewater. Go Green in the City is an annual event organized and
hosted by Schneider Electric, a global specialist in energy management and automation. Teams
presented their respective ideas for efficient energy management in smart cities. Santos, a
graduate of Electronics and Communications Engineering, said the idea was inspired by the
Pasig River near the PUP campus, power issues and calamities hitting the country.
The main concept is to generate electricity from wastewater. We just added the other concept to
filter the water to avoid water wastage, he said.
Prior to the grand finals, both students had to compete in the country finals and East Asia
regional finals. Santos said he learned of the competition from the universitys chairman. He
looked for a partner within their organization and found Sta. Romana.
Sta. Romana, an incoming third year student of Electronics and Communications Engineering at
PUP, was in charge of research.
We improved the project through more research, like statistics about power and water
consumption, different problems for both commodities, she said. We then submitted the
concept to Go Green in the City last January.

The duo eventually became one of three finalists along with two-person teams from De La
Salle University and the Pamantasan ng Lungsod ng Valenzuela to represent the country in the
regionals.
They also bagged the top spot against teams from Indonesia, South Korea, Malaysia, Myanmar,
Singapore, Thailand and Vietnam at the East Asia regionals.
At the grand finals held in Paris, Santos and Sta. Romana faced off with 11 other finalists from
Australia, Brazil, China, France, India, Japan, Morocco, Pakistan, Russia, Turkey and the United
States.
The Philippine team bagged third, with the Indian team placing first and France second.
We were aiming for the win, but were still happy with the results, Santos said. Even before
we got to the grand finals, we believed we had already won because of all the valuable lessons
that we learned as we were preparing for each stage of the competition.
For Sta. Romana, the competition gave them an opportunity to hone their engineering skills.
We feel privileged to be able to represent our country and the East Asian region, and to be able
to hone not just our technical skills, but also our presentation and community skills, she said.
Now that the competition is over, both of them envision the Electrifilter helping the country in
terms of providing a power source during natural calamities as well as protecting the
environment.
Schneider Electricity has been very supportive. While it is up to us to continue developing the
project with them, they will continue to support us, Santos said.
He said interested parties from the public and private sectors have approached them to fund the
project.
We intend to use it to help the environment and help people in remote areas, Santos said.
Sta. Romana said she would continue to do research to improve the Electrifilter and make it an
alternative source of electricity and water.
This is not the first time that Philippine students received recognition in innovative technology at
the Go Green in the City.

In 2013, Lorenz Ray Payonga and Alyssa Tricia Eloise Vintola, then Electronics and
Communications Engineering students at the Ateneo de Manila University, topped the
competition with their project, the Oscillohump.
16.

Gunmen blow up power towers in North Cotabato

NORTH COTABATO, Philippines - Gunmen toppled down with improvised explosives two steel
power relay pylons in Pikit town southwest of North Cotabato shortly before midnight Friday,
causing outage in many parts of Central Mindanao.
The felled towers 44 and 45 of the National Grid Corporation are located at the border of
Barangays Dalingaoen and Batulawan in southeast of Pikit, home to mixed Muslim and Christian
folks.
Senior Inspector Sindatuk Karim, chief of the Pikit municipal police, said the suspects strapped
improvised explosive devices (IEDs) on the columns of the towers and set them off from a
distance.
The towers were blasted at about 11:30 p.m. Thursday, Karim said.
Lt. Col. Orlando Edralin, commanding officer of the Armys 7 th Infantry Battalion, said soldiers
helping the police investigate on the incident found a live IED near one of the damaged towers,
rigged to kill, or maim approaching investigators.
The IED, fashioned from a live 60 millimeter mortar projectile with a blasting mechanism
attached to a battery, was safely deactivated by Army and police ordnance experts.
The incident, reported early by Central Mindanao's popular Notre Dame Broadcasting
Corporation (NDBC), fanned speculations that the attack was perpetrated by a third group out to
sabotage Malacaangs peace efforts with the Moro Islamic Liberation Front (MILF).
The NDBC, which has five stations in Central Mindanao, had said in a report that local officials,
the police and the military are now helping one another prevent a repeat of the tower bombings.
Barangays Dalingaoen and Batulawan are known bastions of the MILF and are covered by an
interim ceasefire accord between the rebel group and the Armed Forces.
The non-aggression security pact enjoins both sides to mutually cooperate in maintaining law
and order in potential flashpoint areas and in MILF strongholds in Mindanao.
17.

DOJ backs electricity discounts for seniors

MANILA, Philippines - The Department of Justice (DOJ) supports the proposed legislation
seeking to expand the benefits for senior citizens to cover discount in monthly electricity bills.
In a three-page legal opinion released Thursday, DOJ Sec. Leila de Lima sees nothing wrong
with House Bill 3169, which grants a five-percent discount on electricity consumption of senior
citizens by further amending Republic Act 9994 (Expanded Senior Citizens Act of 2010).
Anent the grant of a monthly five percent discount to the first 100 kilowatt hours of electricity
thus consumed, we are of the view the said measure is inclusive of a wider socioeconomic
echelon of senior citizens. This Department, therefore, fully supports the rewording of Section 4
(C) of Rep. Act 9994, De Lima said in the opinion.
Sec. de Lima, however, urged Congress to gather inputs from stakeholders on how to restructure
the senior citizen discount for consumed electricity without having to pass the cost of the
discount to other consumers.
We note, however , the position of Meralco that the cap under Republic Act 9994 should stay
and if the proposed measure would be approved, the discount will be shifted to another segment
of the consumers, she explained.
If this is the case, this Department is of the view the Energy Regulatory Commission (ERC)
shall also be invited to solicit their views on how the measure could be fully enjoyed by the
senior citizens without shifting the cost to subsidizing customers. Relative to this, we likewise
take the view of (Ako Bicol party-list Rep.) Rodel Batocabe to involve in the consultation
process representatives from the electric cooperatives of the Philippines, she added.
The DOJ chief also suggested a quick technical study on the proposed discount is also
suggested to be conducted especially on the impact of a P 50 peso discount per month that a
senior citizen consumer could avail of vis-a-vis the economies of scale generated by the electric
companies from the majority of its subsidizing consumers.
De Lima issued the legal opinion upon request by Biliran Rep. Rogelio Espina, chairman of the
House Committee on Population and Family Relations of the House of Representatives.
18.

Renewable energy seen costing more

Consumers may have to pay more for renewable energy (RE) once regulators update the Feed-inTariff Allowance (FIT-All), which serves as an incentives pool for developers.
Ongoing discussions between the Energy Regulatory Commission (ERC), FIT fund administrator
National Transmission Corp. (Transco), and other stakeholders have so far yielded that the

combined FIT-All rate for 2014 and 2015 may turn out to be P0.08 per kilowatt-hour (kWh), or
twice the provisional rate of P0.04 per kWh.
Transco submitted to the ERC last August 24 an updated estimate of the FIT-All, based on the
approved capacities of RE developers, among others. The ERC ordered Transco to recompute the
rate back in July.
The FIT is the per kilowatt-hour rate guaranteed to renewable energy developers to ensure the
viability of their projects. Consumers will then have to shoulder the tariff through a new line
item, called the FIT-All, on their electricity bills.
Justifying the P0.08/kWh FIT-All rate, the state firm said, [we] would like to emphasize that the
above computation considers a collection period of 12 months. However, the provisionally
approved FIT-All of P0.0406/kWh has already been implemented for about seven months.
Consumers began paying for the new line item on their electricity bills in February.
Several factors affect the computation of the FIT-All. Among them are the pre-approved FIT
rates for solar, wind, run-of-river hydro, and biomass and the capacity deemed by the
Department of Energy (DOE) and ERC to be eligible for such incentives.
There are now more projects eligible for the original FIT rates than initially thought. The
installation target for solar power, for example, is 50 megawatts (MW). Department of Energy
data showed 108 MW have qualified to date. On wind power, meanwhile, the installation target
for the original rate was set at 200 MW, but 249 MW are now deemed eligible.
The first batch of FIT rates, approved inJuly 2012, covered run-of-river hydro (P5.90/kWh) for
an installation target of 250 megawatts (MW), biomass (P6.63/kWh) for 250 MW, wind
(P8.53/kWh) for 200 MW, and solar (P9.68/kWh) for 50 MW. The total installation cap is 750
MW.
Under the FIT scheme, renewable energy developers will be able to dispatch the capacity of their
projects for as long as they get a premium for a period of 20 years.
There is also an ongoing push for a new round of FIT rates for solar and wind energies. The ERC
recently expanded the solar power capacity under FIT to 500 MW, from the original 50 MW, but
at a lower rate of P8.69 per kWh than the initial rate of P9.68 per kWh.
The National Renewable Energy Board has also proposed a FIT rate of P7.93 per kWh for the
next batch of wind power capacity. It initially proposed a second-batch rate of P8.49 per kWh.

Industry sources assured discussions are still ongoing and there are efforts to bring down the cost
of RE for the sake of consumers. There are also parties seeking transparency on the eligibility of
companies to claim incentives.
The installation targets are the ceilings for each type of renewable energy, such as solar, wind,
biomass and mini-hydro that may qualify for FIT incentives. The DOE set the cap to ensure the
security of the power grid and stability of electricity rates, given the intermittent and high cost of
power generation from such sources compared to conventional plants.
19.

Energy efficiency

STARTING 2016, the Philippines will implement a five-year action plan on energy efficiency in
addition to an increased push for renewable energy, all part of efforts to address issues related to
climate change. Officials of the Asia Pacific Economic Cooperation also met in Cebu City last
week to draft a roadmap to promote energy efficiency in Apecs initiative on environmentfriendly development across the region.
Apec members, the worlds biggest producers and consumers of energy, have been urged to
discuss the government interventions needed to lessen the effects of climate change through
energy efficiency. The Philippines is not far behind in this regard: The Department of Energy has
already come up with an Energy Efficiency Roadmap and a corresponding action plan that will
be undertaken in 2016-2020. This roadmap is envisioned to be the master plan in achieving
energy efficiency and in bringing conservation programs and activities to higher levels. It also
defines the governments role in coming up with a range of measuresmainly legislative orders
and decrees targeting energy-saving programsto improve energy efficiency. The action plan
sets its sights on energy-intensive sectors such as transportation, industry, and commercial and
residential sectors.
The Philippines has been quite aggressive in the field of renewable energy. In fact, it was already
the second biggest geothermal producer in the world with 1,868 megawatts of installed capacity
as of 2013, equivalent to 10.78 percent of its total installed power capacity. The Philippines is
also aiming to more than double the renewable-energy-installed capacity to 15,300 mega-watts
by 2030 from 5,542 MW in 2010.
Energy efficiency and savings are not new to the Philippines. It enacted the Energy Conservation
Law in 1980 following the world oil crisis and embargo in 1973-1978; the Electric Power Crisis
Act of 1993 and adoption of independent power producers (IPPs) in 1994 following the shortage
of power supply starting 1991; and the Electric Power Industry Reform Act in 2001 and the
Government Energy Management Program in 2004 to address the high cost of electricity starting
2000 and the high oil prices in 2003. It also filed the energy efficiency and conservation bill in
2013 to address the anticipated power supply shortage this year.

In 2004, Administrative Order No. 110 institutionalized a government energy management

program that sought to reduce the governments monthly consumption of electricity (in kilowatthours) and petroleum products (in liters) by at least 10 percent. Savings from September 2005 to
March 2013 amounted to P2 billion (P1.7 billion on electricity and P274 million on fuel). A
follow-up Administrative Order No. 183 in 2007 directed the use of energy-efficient lighting
system in government facilities.
Earlier, the DOE issued a circular requiring all power-hungry establishments in the industrial,
commercial and transport sectors to submit quarterly energy consumption reports and an annual
energy conservation program report. The government also has an annual energy efficiency
award, a recognition given to companies with significant energy savings achieved through the
implementation of energy-efficient technologies and measures. In 2013, the program generated
savings of 56 million LOE (liters of oil equivalent) and monetary savings of P2.4 billion and
more than 90 million kilos of avoided carbon dioxide from 58 commercial and industrial
establishments.
The fact that crude oil prices have fallen sharply should not lull the government into
complacency. It is actually when oil prices are depressed that the government and the private
sector have extra resources or savings to fund energy-conservation and -efficiency projects.
Besides, crude oil prices can just shoot up. In May 1973, crude oil was just $19.35 a barrel. A
Middle East crisis led to its surging to $51.77 a barrel in January 1974, or only eight months
later. In January 1979, oil was $51.89 a barrel. By April 1980, it had shot up to $116.37. In July
2006, oil was $87.28 a barrel. Two years later, it soared to $144.78.
20.

Renewable energy resource assessment and mapping

Countries in the Asia-Pacific region may have a huge untapped renewable energy potential, but
they have limited technical expertise available for identifying their resources and for addressing
climate change and energy security. It has become essential for these nations to respond to the
scale of these challenges.
To be able to discuss these concerns, the Department of Science and Technology, International
Renewable Energy Agency (Irena) and the United Nations Economic and Social Commission for
Asia and the Pacific-Asian and Pacific Centre for Transfer and Technology (APCTT) gathered
renewable energy researchers, private sector representatives, policymakers and government
officials in the renewable energy sector from the Philippines and other Southeast Asian countries
for the Southeast Asia regional training program on renewable energy resource assessment and
mapping on Sept. 28-30 at Marco Polo Hotel, Davao City.
21.

Apec economies commit to slash energy intensity

MEMBER economies of the Asia-Pacific Economic Cooperation (Apec) have reaffirmed their
commitment to slash their energy intensity by 45 percent in 20 years in a bid to further reduce
their carbon footprints.
Energy intensity refers to a comparative measure to determine the energy efficiency of each
economy calculated as units of energy per unit of gross domestic product (GDP), Apec
explained.
At the 46th Apec Expert Group in Energy Efficiency and Conservation (EGEEC) meeting held
recently in Cebu, the group also committed to further intensify efforts that would enable
members to achieve this goal.
These efforts will be geared toward reducing an economys energy consumption by adopting
energy efficiency measures in the different sectors of society. This is expected to result in a
reduction of dependence on imported energy resources, protect the environment and foster a
sustainable energy system for Asia-Pacific.
The Apec EGEEC is actively pursuing its Energy Smart Communities Initiatives Knowledge
Sharing Platform (ESCI-KSP) as a tool to consolidate ideas, best practices and energy efficiency
and low carbon projects. These are aimed at supporting Apec EGEECs four main pillars: smart
transport, smart buildings, smart grids, and smart jobs and consumers.
Apec economies are encouraged to support the development of the ESCI-KSP to determine
appropriate project proposals that will address the remaining challenges in achieving the Apec
Leaders energy intensity reduction goal, Apec said.
The economies that are said to have low energy intensities are the highly productive states that
have manageable weather patterns; which use high energy efficiency appliances and equipment
that apply energy efficient technologies in its buildings and industries; which use efficient mass
transport system and fuel efficient vehicles; and adopt energy conservation measures, among
others.
22.

PH needs to invest in renewable energy

THE PHILIPPINES is considered one of the leading countries when it comes to laws dealing
with climate change and disaster risk reduction and management. No less than the United
Nations Development Programme has hailed the country for its being a leader in climate change
policies.
The Philippine Disaster Risk Reduction and Management Act of 2010, the Climate Change Act
of 2009, the Peoples Survival Fund of 2012, and the Renewable Energy Act of 2008these are
a few of the laws the Philippines has enacted in relation to disaster risk reduction and climate

change adaptation. Such laws may be in place, but it is in their implementation that the
Philippine government has a problem.
Take the Renewable Energy Act of 2008. Despite its enactment seven years ago, we have not
fully maximized until now the use of renewable energythis, according to the Advocates of
Science and Technology for the People.
Instead, within two years after President Aquinos declarationmade during the launch in 2011
of the governments National Renewable Energy Planthat the Philippines intends to nearly
triple the countrys renewable energy-based capacity from around 5,400 MW in 2010 to 15,300
MW in 2030, the government approved the construction of 21 coal-powered projects. Despite
government incentives to encourage generation companies to harness renewable energy, the
latter still opted for the so-called dirty energy because of the huge profits it offers.
In fact, since the enactment of the Renewable Energy Act of 2008, the Philippines continues to
give the go-signal for the construction of coal plants, practically not minding the strong
opposition by various sectors to the use of coal.
The rise in the use of coal results in more carbon emission which in turn harms the environment.
Already, marine resources are getting scarce, extreme drought is being experienced in some parts
of Mindanao, most of them agricultural areas. Yet, the Philippines continues to invest in coalfired power plants.
Touted as a leader in climate change policies, other vulnerable developing countries also look to
us as the face of and rallying point for climate change impacts because of the annual ration
of extreme weather events (among the heaviest and most numerous compared to those of others
like the 2013 Supertyphoon Yolanda [international name: Haiyan]), we cannot escape from.
Countries like Germany and Denmark have pledged to transform their power supply system into
100-percent renewables-based by 2050. Costa Rica announced in March 2015 that it has been
able to harness renewable energy sources for the whole country. The worlds biggest emitter of
carbon dioxide,
China, has committed to target at least 80-percent clean energy use by 2050.
Yet, the Philippines, sticks to fossil fuel as its main energy source, approving construction of
more coal-powered plants on to the next decades. As of this year, only 28 percent of the total
energy mix in the country is renewable. This is according to the Renewable Energy Management
Bureau of our Department of Energy.
If the Philippines wants to show the world that our country is indeed the rallying point for
climate change mitigation and adaptation, our government needs to walk the talk on renewable

energy. But then, mere climate adaptation practices are not enough. We need to show other
countries the way to climate mitigation and sustainable development, using renewable energy.
The Aquino administrations last year in office must be devoted to achieving sustainable, not just
fiscal, growth for the entire Philippines; it must not focus on profits alone. This administration
can leave a lasting legacy by harnessing renewable energy and ensuring a low-carbon path as
part of its strategy to attain inclusive and sustainable development.
President Aquinos last State of the Nation Address, which was delivered last July, disappointed
because it did not contain any clear and definitive commitments to promote and institute the use
of renewable energyan undertaking that has become a race against time as vulnerable
Philippine communities continue to suffer from unprecedented droughts and other impacts as a
result of abnormal, extreme weather patterns and events.
The Philippines intended nationally determined contributions (INDC), which is to be submitted
before October to the United Nations Framework Convention on Climate Change (UNFCC) to
be held this December in Paris, must take into account the countrys moral ascendancy on the
issue of climate justice. And it should push us to walk our talk on climate action.
Investing in renewable energy is the first step. A clear and definitive commitment to the
countrys INDC must be pledged, with a clear vision of the inputs to be made and outcomes to be
expected. Lastly, the Philippines must work hard and with resolve to help the UNFCC reach a
fair and binding climate deal come December.
23.

APEC funds energy resilience project

The Philippines has secured funding from the Asia-Pacific Economic Cooperation (Apec) for a
project to promote energy resiliency in the region, an official of the Department of Energy
(DOE) said.
Loreta Ayson told reporters on the sidelines of the Philippine Economic Briefing that she had
signed the acceptance papers for the project called Workshop on Improving Energy Resiliency
in Off-Grid Areas in Apec Member Economies and the DOE was awaiting the release of funds
from Apec.
The Philippines is the main proponent of the project, supported by fellow Apec economies
Australia, Japan, Chinese Taipei, Thailand and the United States.
The Apec Energy Efficiency sub-fund will provide the $100,070 to finance the project, she said.
Were awaiting the release of the funds because ideally, the project should be done by end of
June 2016, before the new president takes over, Ayson said. The objective is to do some

workshops, putting in all the experts with regards on energy resiliency, including the
infrastructure, and then we will want to do a handbook on the guidelines on how to attain energy
resiliency in off-grid areas of participating economies. This will take up standards of
infrastructure, retrofitting of poor quality infrastructure, and engineering solutions, to withstand
the strongest calamities.
The project entails conducting a series of workshops among Apec member-economies to identify
and address common challenges, lessons learned and best practices in improving resiliency of
energy infrastructure in off-grid areas given the threats of natural disasters and the impacts of
climate change.
These areas are so remote that connection to the main grid is not an immediate option. Electricity
in these areas is mainly sourced from diesel generators putting the supply at risk in times of
energy disruptions.
Renewable energy resources such as solar, wind and hydro power provide alternative off-grid
solutions.
According to the Apec project monitoring site, reliable and timely information on short and long
term response mechanisms will be developed through the project, ensuring the safe and
immediate restoration of these energy facilities.
Experts in this field will provide guidance during the workshops and case studies from relevant
member economies on actual experiences will be highlighted.
24.

Renewable energy company enters Palawan as game changer

Environmental groups in Palawan province are celebrating. The signing of a power supply
agreement between Langogan Power Corp. (LPC) and Palawan Electric Cooperative (Paleco)
last week has been hailed as a milestone in Palawans socially charged quest for reliable power
supply.
Paleco finally gave LPC, the fledgling renewable energy (RE) company, a 20-megawatt deal
after years of trying to get a contract to generate electricity from three major river systems in the
mainland. The decision drew praises from consumers and environmentalists lobbying for a stop
to the planned construction of a coal-fired facility by the Consunji-led DMCI Power Corp.
This is a win for consumers and the people of Palawan. Renewable energy is the way to go,
says Cynthia Sumagaysay-del Rosario, a lead campaigner of Palawans No To Coal Movement.

LPC joined two other diesel and bunker oil-based independent companies as suppliers of Paleco,
along with DMCI, as the province anticipates a leap in power demand due to an expected surge
of investments in tourism and agro-industrial projects.
25.

Apec eyes energy efficiency roadmap

CEBU CITY, PhilippinesSenior officials from member-states of the Asia Pacific Economic
Cooperation (Apec) will draft a roadmap that would promote energy efficiency measures and
push for environment-friendly development across the region.
At the opening of the 46th Experts Group on Energy Efficiency and Conservative (EGEEC)
Meetings on Monday, Energy Undersecretary Donato D. Marcos said that discussions over the
next two days would focus largely on defining key issues that need to be addressed and
opportunities that Apec economies can take advantage of.
The output of the meetings are expected to help senior Apec officials in drafting the roadmap in
October.
For this 46th meeting, we have identified priority areas for discussion as stated in the agenda,
namely, energy efficiency and best practices in buildings; harmonization of energy efficiency test
methods for refrigerators in the Apec region; harmonization of standards and enhancing technical
capacity in measurement and verification of energy savings of projects and the like; vehicle fuel
efficiency labeling and re-information schemes; energy efficiencies, policies and programs; and
energy intensity and renewable energy goals, among other things, Marcos said.
The Philippines, according to Marcos, has come up with an energy efficiency roadmap and a
corresponding energy efficiency and conservation action plan that will be implemented from
2016 to 2020.
This roadmap is envisioned to be the masterplan of the Philippine Department of Energy in
achieving energy efficiency and conservation programs and activities to higher levels and define
the role of government in coming up with a range of measures aimed at improving energy
efficiency, driven by legislative orders and decrease targeting energy saving programs. We have
identified five energy intensive sectors in our action plan, namely, the transport industry,
commercial and residential buildings, among others, Marcos told Apec officials.
The Philippines has been aggressively promoting the massive use of renewable energy which it
targets to more than double the RE-installed capacity to 15,300 megawatts by 2030 from the
5,542 MW recorded in 2010.
Marcos noted that the government was able to save 1.6-million tons of oil equivalent in 2013 due
to its energy savings programs.

At the end of the meetings, I hope that we can grow a sustainable framework and show how
Apec EGEEC supports the Apec community push for energy efficiency and conservation, as well
as show how we can all support each other, reinforce each other in the area of information
sharing, capacity building and replication of initiatives, he said.
The EGEEC is a biannual forum of Apec member-economies that promotes energy conservation
and application of energy efficiency practices and technologies as the groups contribution to the
international efforts in reducing the adverse impacts of increasing energy production and
consumption.
Later this week, senior Apec officials will discuss measures to improve the quality of
infrastructure across the region, as they highlight its key role in fueling economic growth.
Apec recognizes the importance of quality infrastructure in economic growth of the AsiaPacific, not only in physically connecting the region but also in ensuring the efficient movement
of goods, services and people between and within borders, Apec said in a statement.
Quality infrastructure directly supports efficient transportation and telecommunications
services, air and sea ports, customs procedures, energy distribution, farm-to-fork logistics,
among other things, it added.
Infrastructure development and financing was identified as one of the four pillars of the Cebu
Action Plan on a Financial Roadmap, which will be launched by the Apec finance ministers next
week.
The 10-year plan calls on member economies to set regional standards for public-private
partnership (PPP) terms and practices as well as maximize PPPs role in infrastructure
investment through collaboration with international organizations, such as the Asian
Development Bank, World Bank and Organization for Economic Cooperation and Development.
26.

SBMA invests in renewable energy

The Subic Bay Metropolitan Authority seeks to play a pioneering role in renewable energy
development with the installation of $200-million solar power plant as well as a wind farm
project within the freeport.
This [solar plant] will be one of the first major clean energy projects in the country and the
biggest solar installation in the whole Southeast Asia, and it is a big honor for Subic to be the
project site. This is very significant since the whole world is looking at renewable energy
nowadays, SBMA chair Roberto Garcia said in a statement.

The 150-megawatt renewable energy project will be undertaken by Emerging Power Inc. (EPI),
which put up a 40-MW geothermal power plant in Mindoro last year.
EPI is controlled by Nickel Asia Corp. (NAC), one of the countrys biggest mining firms.
According to SBMA, it recently allowed EPI to acquire a 90-percent stake in Jobin-SQM Inc.
(JSI), which is a Subic Freeport-registered company that signed a memorandum of agreement
last year with the investment promotion agency and the local indigenous people for the
implementation of the clean energy project on Mount Santa Rita.
Garcia said the company hoped to have its Subic solar and wind power project on stream by next
year.
The Jobin-EPI project will be a pioneering venture for the establishment of renewable energy
facilities in the Subic Bay Freeport Zone.
This is a big stride toward sustainable development, Garcia added. It will help us keep Subic
green and it will help us make the Freeport grow further.
According to Garcia, the project was in line with Republic Act 9513, or the Renewable Energy
Act of 2008, which aims to accelerate the exploration and development of renewable energy
resources, increase utilization of such and promote their efficient and cost-effective commercial
application.
The law was also designed to effectively prevent or reduce harmful emissions to protect public
health and the environment.
The development and promotion of renewable energy is among the priority projects of the
national government under the Investment Priorities Plan, Garcia added.
27.

Energy chief: LPG as cab fuel losing appeal

With petroleum prices down, taxi drivers and operators have been shifting away from the use of
LPG or liquefied petroleum gas as fuel, which the drivers are also blaming for a host of health
problems, according to Acting Energy Secretary Zenaida Monsada.
Speaking in a Senate hearing on the 2016 budget of the Department of Energy (DOE), Monsada
on Tuesday cited data showing there are now only 7,000 taxis using LPG nationwide from a high
of 20,000.
She said the dip on gas prices had made LPG unattractive to taxi drivers. Many vehicles which
were earlier converted to run on LPG had been installed with a gadget that allows them to use

either LPG or gasoline, the Cabinet official explained in a hearing presided over by finance
subcommittee chair Sen. Serge Osmea III.
And there are now issues coming out about LPG, that it smells and makes taxi drivers sick,
Monsada said, adding that dizziness was a common complaint. She also agreed when Osmea
pointed out that leaky LPG tanks may be the culprit.
A government interagency committee is now looking into these complaints, she said. (The
committee) wants to clarify the real score about LPG as far as the taxi drivers are concerned,
Monsada said.
The committee includes the Department of Health (DOH), which she said is conducting a study
to validate claims of taxi drivers that they are getting sick because LPG.
As early as October 2012, however, the DOH revealed the findings of a study on the health risks
posed by improperly converted taxis that use LPG.
Increasing complaints of dizziness, headache, light-headedness and dryness of throat among taxi
drivers prompted the DOH to conduct the study with the National Poison Management and
Control Center based on the University of the Philippines campus in Diliman.
The study covered randomly selected male drivers of 26 LPG and 13 conventional vehicles.
DOH regional director Eduardo Janairo then reported that exposure to auto-LPG caused them
headaches, back or nape pain, chest pain, cough, dizziness, dry throat, fatigue and muscle
weakness, nausea and breathing difficulty.
These maladies were further traced to the decreased delivery of oxygen to the bodys vital
organs. Overexposure may cause unconsciousness and even death, the study also warned.
LPG-converted vehicles also exposed the drivers to a level of hydrogen sulfide 68 times higher
than that measured in conventional vehicles. The carbon monoxide level, meanwhile, was eight
times higher.
The findings came out a year after the Inquirer published a four-part special report on LPGpowered vehicles and the health risks they posed, based mainly on interviews with drivers.
The use of LPG as automotive fuel in the country was promoted for its environmental benefits
and cost efficiency as early as 2002, three years after the passage of the Clean Air Act.
In a position paper that year, the Philippine Liquefied Petroleum Gas Association Inc. noted that
LPG use results in lower greenhouse gas emissions and does not adversely affect soil and water
in case of leakage.

In 2008, with about 7,000 vehicles running on LPG locally, the Arroyo administration launched a
P1-billion program to help owners of jeepneys, buses and taxis convert their diesel- or gasolinefed engines.
But in November 2011, Monsada, then the director of the Oil Industry Management Bureau of
the DOE, said the problems arising from the use of LPG as vehicle fuel could be traced primarily
to a faulty conversion process.
28.

PH projects in energy Oscars

Philippine companies and projects are competing at the Platts Global Energy Awards, dubbed
the Oscars of the energy industry.
Among the finalists is Semirara Mining and Power Corp. (SMPC), which was selected under the
Corporate Social Responsibility (CSR) category.
The CSR program of SMPC focuses on the companys so-called 5Es: education and training,
environmental stewardship, employment and livelihood, electrification and basic
infrastructure and emergency preparedness.
Also in the Platts race is power retailer Manila Electric Company (Meralco), which is competing
for the Breakthrough solution of the Year award.
A Philippines-based project is competing in the Engineering Project of the Year category: the
Shell Malampaya Deep Water Gas-to-Power Project Phase 3 (MP3) off Palawan, with
engineering work led by nominee Fluor Corp. of the United States. Incidentally, the Malampaya
consortium is marking this year the 25th anniversary of Service Contract 38, which covers
Malampaya, and formally inaugurating Phase 3 of the project.
Approximately 40 percent of the power for the main island of Luzon is generated by power
plants using Malampaya gas.
The Energy Company of the Year will be selected from the entire list of finalists by the
independent panel of judges including former regulators, past heads of major energy companies,
leading academics and international energy experts.
Platts said on its website that the Global Energy Awards indicate the direction in which the
industry is headed, where industry players are investing their resources.
The Global Energy Awards gives the often obscure and publically vilified industry a bright
spotlight, by recognizing true vision and leadership in a variety of segments, divisions and

regions. Showcasing these monumental achievements among distinguished peers, exalts the
excellence in energy, Platts said.
Winners will be announced at the 2015 Platts Global Energy Awards black-tie dinner on Dec. 9
in New York City.
29.

Anticoal church turns to solar energy

THIS CATHOLIC parish priest walks the talk. Msgr. Emmanuel Villareal, who has been very
critical of a proposed coal-fired plant in the coastal town of Atimonan in Quezon province, has
turned to green energy, laying solar panels on the roof of the Our Lady of the Angels Parish
Church.
Meralco PowerGen plans to put up a 1,200-megawatt (MW) coal-fired power plant on an 80hectare property in Barangay Villa Ibaba, Atimonan, 73 kilometers south of Manila. Originally, it
intended to pursue a liquefied natural gas (LNG) combined cycle power plant, but converted the
project to coal plant in the absence of government policy support for the LNG industry.
Were not only opposing the plant, were also offering a safe alternative for our community
members to emulate and free them from being dependent on fossil fuel, Villareal said in a phone
interview.
The Diocese of Lucena led by Bishop Emilio Marquez is leading the campaign against the
proposed power project. In June, more than 1,500 people led by church leaders, staged a
procession around Atimonan, criticizing coal-fired power plants for speeding up global warming.
2 coal-fired plants
Quezon province already hosts two coal-fired plantsthe 735-MW plant in Pagbilao town
facing Tayabas Bay, whose generating capacity is being extended by an additional 420 MW with
another plant, and the 1,500-MW plant in Mauban town, which is also facing the Pacific Ocean.
Atimonan municipal officials have already approved the coal-fired plant project, saying it would
create 1,000 to 2,000 jobs for local construction workers aside from a tax windfall expected from
plant operations.
Mayor Jose Mendoza has claimed that except the Church, his town mates fully supported the
project. The provincial governments and other municipalities have also approved it, he said.
However, the Department of Environment and Natural Resources was still processing the permit
for the project, Mendoza had said in an earlier interview. The construction phase has yet to
start, he said.

Villareal refuted the mayors claim of widespread support. The church has been serving as front
and voices of the silent majority in the community against the plant project, the priest said.
A 5-kilowatt (KW) grid-tied-solar system was installed on the roof of the heritage church as part
of a campaign against the coal-fired facility. Villareal said the renewable energy project was also
the local churchs concrete response to the call of Pope Francis to care for the environment in his
recent ecology encyclical, Laudato Si (Praise Be).
By making a small step towards becoming a green church, we are providing our people a strong
message that switching to renewable [energy] was possible and we, starting with our
communities, can do it now, he said.
Turning green is a big stride for the Our Lady of the Angels Parish Church, which is made of
stones and steeped in history.
The first church was burned down by Dutch invaders in 1640, according to the historical marker
installed by the National Historical Commission. The second was built in 1643, but it was
damaged by a fire in 1648.
The present church and convent was built between 1687 and 1700, but both were seriously
damaged by an earthquake in 1937. Rebuilt and refurnished over the years, it now has a totally
modern look on its roof area adjoining the bell tower, where a series of solar panels have been
lined up.
The solar-powered system was installed in five days and switched on on Aug. 2 capping the
celebration of the town fiesta in honor of Our Lady of the Angels, the patroness of the parish. It
cost more than P620,000 derived from church savings and donations from parishioners.
It is expected to supply almost half of the daytime electricity needs of the church, translating to
P10,000 to P15,000 savings from its average monthly bill of P30,000.
30.

P700M waste-to-energy plant to rise in Tagum City in 2015

TAGUM CITY, Davao del Norte, Philippines A P700-million waste-to-energy facility, which
would produce up to two megawatts of power a day, will rise here in 2015.
On Monday, holding firm Metro Pacific Investment Corp. signed a memorandum of agreement
with city officials, led by Mayor Allan Rellon, for the construction of the facility.
The energy-to-waste facility would utilize up to 80 tons of wastes for conversion to bio-fuel,
according to MPIC president Jose Ma. Lim.

The bio-fuel that would come out of the process could then be used to fire up diesel-fed
generators to produce two megawatts of power each day, he said.
Rellon said the MPIC would be working with technology-provider Global Green International
Energy Philippines (GGIEP) led by chief executive officer Alan Matthews for the construction of
the facility.
We have high expectations for the project. MPIC would put all its resources to make this a
successful venture, Lim said during his meeting with Rellon and other officials.
The facility will rise on a two-hectare land in Barangay San Agustin here and will use a
technology called pyrolysis. The technology breaks down organic materials using high
temperature to produce bio-fuel.
Elias Ragos, chief of the city environment and natural resources office (CENRO), said based on
the briefer, the facility could generate 10,000 gallons of bio-diesel fuel from processed wastes
such as plastic bags. The bio-fuel will then be used to produce up to two megawatts of power,
which could be helpful for Tagums additional electricity needs, Ragos said.
According to Ragos, the project is viable here as residents throw at least 110 tons of various
kinds of wastes per day, including residual wastes.
The facility would also help the city save on cost of solid waste management expenses, Ragos
said, adding that each year, the city has been spending P12 million for solid waste management.
They saw the citys potential. Tagum is producing various wastes daily and our controlled dump
site is very accessible, and they saw our systems, our bureaucracy is in place so we are excited
Were open to this kind of development, Rellon later told reporters.
Lim said the project would address waste management problems and power shortages besetting
emerging urban centers like Tagum. He said that with the Tagum facility, the company would
create a successful template, which could be replicated in other parts of the country.
This is good as it allows wastes to be kept local. We make an economic return by cleaning up
the environment, Lim said.
31.

Otto Energy abandons Hawkeye-1 well

Otto Energy Ltd. is set to abandon the Hawkeye-1 exploration well off
Palawan as resources failed to meet expectations.

In a project update, Otto said Hawkeye-1 had been drilled to the planned total depth of 2,920
meters.
The top reservoir was intersected at 2,710 meters. Hydrocarbons were logged between 2,710 and
2,737 meters. Below 2,737 meters, water was inferred from log observations.
Hawkeye-1 will now be plugged and abandoned, Otto said.
The Australian company said the drilling program was executed smoothly, ahead of schedule,
and ahead of budget.
Otto is fully carried on the cost of drilling Hawkeye-1.
Managing director and CEO Matthew Allen said, The Hawkeye-1 exploration well has proven
the existence of hydrocarbons in SC55. The hydrocarbon size discovered is however at the very
low end of expectations and is not economic to develop.
Otto will now incorporate the results from the well into the companys studies of the other
prospects, including Cinco, in the license which potentially share the same charge source, he
said.
While the result at Hawkeye is disappointing, Otto is still a well-funded explorer with high
impact exploration activity in the next 12 months, he said.
Otto is preparing for the upcoming exploration programs in its Alaskan and Tanzania assets.
Otto is an Australian Securities Exchange-listed oil and gas company with a strategy to grow an
integrated petroleum business through exploration.
Focused on conventional oil plays in proven petroleum areas, Otto used to operate the producing
Galoc oil field in the Philippines.
32.
Power situation in PH manageable amid El Nio, says ex-energy
chief
Former Energy Secretary Jericho Petilla on Wednesday said the country has sufficient supply of
electricity amid an ongoing El Nio phenomenon, but stressed the importance of continuous
monitoring.
Petilla said the power situation in the country was manageable especially in Luzon, which does
not heavily depend on hydropower.

But despite the manageable situation, Petilla emphasized the need to monitor existing
generating capacity in preparation for El Nios impact particularly in areas in Mindanao, which
has been relying on hydroelectric power plants.
Theres a need to prepare for El Nio because it is expected to last up to next year. There are
alternative sources like diesel power plants which can be tapped by electric cooperatives, Petilla
said in a breakfast forum in Manila.
Noting that Mindanao cannot solely rely on water rationed by authorities, Petilla said electric
cooperatives should start contracting enough capacity as early as now, even if the effects of El
Nio are still not being felt so that they would not be caught off guard next year.
Petilla also urged consumers to practice power conservation measures, such as setting the
thermostat of air conditioners at 25 degrees Celsius, which he said could slash a households
energy consumption by as much as 30 percent.
33.

PetroEnergy projects go commercial

Two renewable energy projects of PetroEnergy Resources Corp. (PERC) have been declared
commercial by the Department of Energy.
These are the 12-megawatt (MW) Maibarara-2 (M2) geothermal expansion project in Batangas,
owned and operated by Maibarara Geothermal Inc. (MGI), and the 50-MW Tarlac solar facility
in Tarlac City, owned and developed by PetroSolar Corp. (PSC).
MGI and PSC are 65 percent- and 56-percent owned subsidiaries, respectively, of PetroGreen
Energy Corp. (PGEC), PERCs 90 percent-owned subsidiary and renewable energy arm.
The commerciality affirmation not only converts the solar service contract from predevelopment to development/commercial stage, giving us the go-signal to proceed full blast
toward development, but it also marks the first step for our Tarlac solar project toward eventual
FIT qualification by first quarter, 2016, PERC and PSC president Milagros V. Reyes said
MGI president F.G. Delfin Jr. said that on Sept. 24, 2015, the DOE issued to MGI the
Confirmation of Commerciality and the Certificate of Additional Investment, both dated Sept.
21, 2015, for MGIs M2 expansion project. The latter involves the installation of a new 12-MW
unit adjacent to the existing 20-MW Maibarara-1 (M1) unit and is expected to add at least 95,000
MWh to MGIs annual generation.
We opted to increase Maibarara-2s gross capacity from 10MW to 12 MW after the successful
flow-test of well MB-15RD and the release of an independent resource validation by California-

based Geothermal Science Inc. (GSI) which confirmed more than sufficient reserves for
combined M1 and M2 power generation for 25 years, Delfin said.
This capacity increase is expected to enhance MGIs revenues. We aim for M2 unit to be on-line
by third quarter, 2017, Delfin said.
On Sept. 30, the DOE also issued the Certificate of Commerciality dated Sept. 24, 2015 for
PSCs 50-MWp Tarlac Solar Project located in Central Technopark, Tarlac City.
With two new RE projects declared commercial and expected to be commissioned in 2016 and
2017, PERCs expansion and transition to power generation is proceeding deliberately as
planned, Reyes said.
34.

DOE waiting for study on B5 biodiesel blend

Energy authorities may put off raising the alternative fuel content of the biodiesel blend to 5
percent from the current 2 percent, Department of Energy OIC Zenaida Monsada told reporters.
On B5, we are still waiting for the results of the study, and then of course final recommendation
and everything, Monsada said, referring to the impact study being conducted by an institution
within the University of the Philippines Los Baos (UPLB).
The decision can be made this year but the implementation can be next year, she said.
DOE earlier said the target was to increase the blend to 5 percent biodiesel (B5) by the end of
this year.
However, Monsada said that may not happen since the study and recommendations had not been
finalized and released. The current 2 percent blend has been in place since February 2009.
Monsada said technical concerns had been cleared and the authorities were just waiting for the
results of the UPLB study. Monsada added that local coconut production was sufficient to meet
the increased demand for coconut oil.
Coconut oil is milled before it is converted into coconut methyl ester (CME), which is the
countrys version of biodiesel.
Wanting to ensure that the increased blend will benefit coconut farmers and at the same time not
cause too much burden on motorists, biofuels authorities undertook two studies.
The National Economic and Development Authority worked on a study on the impact of the
increased blend but in February 2015, UPLB was tapped for further assessment.

The National Biofuels Board (NBB) said it commissioned the study to evaluate the impact of
increasing the biodiesel blend to 5 percent.
The NBB is mandated by the Biofuels Act of 2006 to review and implement biodiesel blends.
We want to consider the impact on the agriculture sector, specifically the coconut industry. We
want to be sure that the farmers will really benefit from this, Monsada explained.
At the same time, she said, We dont want the motorists to rally because of higher prices due to
increased blend.
Under the Philippine Energy Plan 2012-2030, the DOE aims to increase the biodiesel blend to 5
percent from the current 2 percent.
By 2020 and 2030, the target is to raise the blend to 10 percent and 20 percent, respectively.
In 2012, the PCA asked the NBB to fast-track the increase of the mandated blend to keep up with
the worldwide fuel charter. Under the Biofuels Act, the blend may be increased taking into
account considerations such as domestic supply and availability of locally sourced biodiesel
components such as CME.
The Department of Agriculture has also been pushing for the increased blend to assist the
coconut industry.
The government originally planned to accelerate the implementation of the increased blend in
response to the calls from various stakeholders.
But implementation lagged when Supertyphoon Yolanda ravaged key production areas.
Source: http://business.inquirer.net
: business.inquirer.net/tag/renewable-energy/
: http://www.philstar.com/