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    16 Planning & Policy For Sustainable Energy - Dr. Francisco L. Viray

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    J. O. M. Salazar
    This document discusses energy security issues in the Philippines. It notes that energy security depends on developing domestic resources and infrastructure, as well as acquiring energy technology. The country relies heavily on imports for its energy needs and technology. Ensuring energy security long-term will require mobilizing domestic capital for investment, building domestic energy industry support networks, and increasing cooperation to access critical technology and resources.

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    16 Planning & Policy For Sustainable Energy - Dr. Francisco L. Viray

    Uploaded by

    J. O. M. Salazar
    186 views27 pages
    This document discusses energy security issues in the Philippines. It notes that energy security depends on developing domestic resources and infrastructure, as well as acquiring energy technology. The country relies heavily on imports for its energy needs and technology. Ensuring energy security long-term will require mobilizing domestic capital for investment, building domestic energy industry support networks, and increasing cooperation to access critical technology and resources.

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    16 Planning & Policy for Sustainable Energy - Dr. Francisco L. Viray

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    This document discusses energy security issues in the Philippines. It notes that energy security depends on developing domestic resources and infrastructure, as well as acquiring energy technology. The country relies heavily on imports for its energy needs and technology. Ensuring energy security long-term will require mobilizing domestic capital for investment, building domestic energy industry support networks, and increasing cooperation to access critical technology and resources.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    186 views27 pages

    16 Planning & Policy For Sustainable Energy - Dr. Francisco L. Viray

    Uploaded by

    J. O. M. Salazar
    This document discusses energy security issues in the Philippines. It notes that energy security depends on developing domestic resources and infrastructure, as well as acquiring energy technology. The country relies heavily on imports for its energy needs and technology. Ensuring energy security long-term will require mobilizing domestic capital for investment, building domestic energy industry support networks, and increasing cooperation to access critical technology and resources.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 27

    TRANS-ASIA OIL AND ENERGY DEVELOPMENT

    CORPORATION
    A member of the
    PHINMA Energy Group
    o  Energy produced and used in ways that support
    human development over the long term, in all its
    social, economic, and environmental dimensions
    o  Does not refer simply to a continuing supply of
    energy, but includes production and use of energy
    resources in ways that are compatible with long-
    term human well being and ecological balance
    o  Accessibility to modern energy in terms of
    price, factoring in affordability and
    sustainability
    o  Availability of modern energy in adequate
    quantity and acceptable quality on a long-
    term basis
    o  Acceptability of energy sector activities in
    terms of their environmental and social
    impacts
      Major challenges
      Price
      Energy Security
      Environmental issues
      Social issues
      Poverty Alleviation
      Critical inputs – influenced by and vulnerable
    to global and regional developments
      Policies
      Technology
      Capital

      Critical players
      Government – local & national
      Industry
      Society
      Regional & international coalitions
    o  Availability of commercial form of energy for all (e.g.,
    100% electrification)
    o  Clean energy

    o  Security and self-sufficiency


    o  Economic and competitive costs of energy (power and fuel)
    as opposed to “popular” costs of energy
    o  Deregulated, highly competitive energy industry
      Privatization
      Deregulation
      PD 87, PD 1442
      RA 7156 – Mini-hydro Act
      RA 9637 – Philippine Biofuel Act of 2006
      RA 9513 - Renewable Energy Act 0f 2008
      Mobilize private sector investments – privatization, incentives
      Energy efficiency
      RA 8749 - Clean Air Act of 1999
      Social programs – DOE 1-94; royalties
      Standby rationing plan for emergency
      Market-based structures and competition
      Strengthening oversight over deregulated sectors of the industry
      Price regulation – price-setting methodology
      Energy efficiency
      Domestic Capital – there is limited domestic capital; needs to
    mobilize foreign investments; dependence on foreign capital
    increases security risks
      Development of indigenous resources
      Mass transportation
      Provision of Energy Services to Rural Areas - make commercial
    energy available to increase income-generating opportunities
      Decentralized solutions
      Appropriate technologies
      Innovative credit arrangements
      Local involvement in decision-making
      Subsidies – structure and source of funds
      Subsidies to address affordability by the poor and competitiveness
    of industries - transparent & targeted subsidy to industries we
    want to encourage for value addition to the national economy
    facilitating competitiveness; and, to meet the needs of the
    vulnerable group (poor)
      Structure – life-line rates; universal charges; cross-product
    subsidies; promotes energy conservation; discount on diesel for
    public transport
      Sources – royalties; DOE 1-94; EVAT
      Competition Law (Anti-trust)
      To address pricing mechanism for indigenous resources with
    attendant impact of imported technology and high capital costs
      Policies to manage the environment towards a market-based
    structures and competition
      Diversify energy mix & sourcing of imports – what will be used to
    drive desired energy mix, free market or light handed regulation?
      Technology innovations and deployment
      Build domestic R&D capability to support specially indigenous
    resource development
      Deployment of technology for domestic manufacturing, specially for
    rural applications
      Human resource development
    o  Resources
      Self-sufficiency in terms of indigenous
    resources
      Diversification in terms of energy mix
    o  Downstream Facilities
    o  Technology
      Domestic technology
    o  Capital
      Mobilizing domestic investments
    o  Indigenous resources
      Deregulation - is it enough to attract investments in
    indigenous resource development?
      Pricing mechanism
      Renewable energy
      Bio-fuels
      Do we have the technology? Does not support long-term security if
    import dependent for technology
      Do we have manufacturing facilities for equipment & engineering
    services? Import dependent too?
    o  Information campaign on oil and electricity
    deregulation
    o  Predictable and transparent regulation
    o  Competition governance
    o  Regulatory rules for monopoly businesses
    o  Consumer protection
    o  Investment climate – peace & order; taxation;
    bureaucracy; corruption; policies
    o  R&D
    o  Diversification
      Diversify energy mix & sourcing of imports
      Limited to oil, coal, gas, indigenous like geothermal & hydro
      Nuclear
      NRE
      Alternative transport fuels (LPG, CNG)
      Alternative transport systems (e-vehicles)
      Energy efficiency & demand management – lessens
    requirements, postpones capacity additions
      Two significant drivers
      Costs
    –  increasing costs of inputs to the domestic energy
    industry (crude, coal, technology, capital)
      Technology
    –  energy is technology-based
    –  technology influences policies in developing countries
    –  country is import-dependent for technology
    o  Global resources are abundant – technology
    & investments required
    o  Shipping lanes
    o  Geo-political
    o  High prices to developing countries
    o  Supply & price stability
    o  Infrastructures
      Two refineries
      No LNG facilities
      CNG stations?
      Power Grid
    o  Support industries & services
      Do
    we have manufacturing facilities for equipment &
    engineering services? Import dependent too?
    o  Domestic infrastructures
      Technology
      Capital
      Support industries & services
    DOWNSTREAM – Natural Gas
    o  Technology
      Do we have the technology?
      Does
    not guarantee long-term security if we are import
    dependent for technology
    »  Domestic technology
    »  Domestic R&D capability

    o  Capital
      How large is our domestic financial capital?
      Appropriate technology for rural application
      Mitigation of environmental impacts – emissions
      Control systems
      Biofuel feedstocks
      CFL
      Nuclear safety – waste disposal
      Cleaning fossil fuel
      Energy and carbon balance issues
      Reliable commercial legislation and jurisdiction, incentives,
    defray risks associated with investments, ODA
      Political and economic stability, provide reasonable
    predictability, efficient bureaucracy
      Regulatory regime that promotes competition and efficiency and
    protected from arbitrary political intervention
      Consistent regulatory and policy signals which can be used as a
    basis for orderly decision-making . Confusion about the thrust
    and impact of government policies on incentives, regulations
    and competition have to be eliminated
      Necessary physical structure
    o  Strategic reserves of oil products -mandatory
    inventory for oil products
    o  Refineries or imports – tariff differential?
    o  Development of indigenous resources – renewable
    energy; technology; investments; incentives
    o  Mandatory energy savings – policies, incentives
    (avoid excessive dependence on imports)
    o  Regional & International Cooperation
    o  Technology Transfers
    o  Domestic R&D capability
    o  Markets must sustain energy security
    o  Long-term nature of energy systems requires long
    -term energy planning; 25 years to 50 years
    o  Forecasting techniques – GDP, population
    o  Err on the excess when planning future capacities?
    Costs of excess versus costs of shortages

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