2024 Energy Investment Kit

Energy
Conventional
CONVENTIONAL ENERGY
The Department of Energy (DOE) acknowledges the country’s indigenous conventional fuels as a solution
to the increasing demand for energy. Developing the upstream energy sector addresses the Philippines’
vulnerability to oil price fluctuations, supply disruptions, geopolitical tensions, and currency fluctuations in the
global market. While the country is transitioning towards cleaner fuels, fossil fuels will continue to be a stable
supply in driving economic growth and ensuring a reliable energy supply.
DOE recognizes the importance of an aggressive and sustained campaign to search for new oil and gas fields
to ensure energy security and contribute to continued wealth generation and job creation for a resilient energy
system. Despite the capital-intensive nature of exploration programs and the volatility of fossil fuel prices, DOE
is actively pursuing this effort to mitigate the risks associated with relying on imported energy sources.
PETROLEUM
INDUSTRY PROFILE
The first commercial production of indigenous oil in the Philippines was in 1979, producing about 8.57 million
barrels (MMB) of oil from the Nido oil field in Northwest Palawan. Since then, 13 production fields have produced
81.10 MMB of crude oil, 93.86 MMB of condensate, and 2.69 trillion scf of gas. Figure 1 shows the country’s
petroleum production since 1979.
As of 31 December 2023, the country has a total crude oil production of 81.18 MMB, with major producers being
the following:
1. Galoc oil field with a total production of 24.84 MMB; 3 Matinloc oil field with 12.63 MMB, and
2. Nido oil field with 19.35 MMB; 4. North Matinloc oil field with 2.28 MMB.
Figure 1. Historical Petroleum Production (1979-2023)
Source: DOE-Energy Resource Development Bureau, as of 31 December 2023

PETROLEUM SERVICE CONTRACTS
The Philippine Government, under Section 4 of Presidential Decree (PD) No. 87, also known as the “Oil
Exploration and Development Act of 1972,” is mandated through the DOE to promote and undertake exploration,
development, and production of the country’s indigenous petroleum resources through the awarding of
Petroleum Service Contracts (PSCs).
DOE currently supervises and monitors 16 active PSCs (as shown in Table 1) to ensure that the respective
work commitments under the exploration and production stages of the PSCs are fully implemented. As of
31 December 2024, four (4) out of 16 PSCs are in the production stage of the PSCs, while 12 PSCs are in the
exploration phase.
Table 1. List of Active Petroleum Service Contracts
No. Operator PSC No. Location Area (Has)
Production Phase
NPG Pty. Ltd. 14C1 Northwest Palawan 16,300.95
1
The Philodrill Corporation 14C2 Northwest Palawan 17,649.54
2 PNOC - Exploration Corporation 37 Cagayan 36,000
Prime Energy Resources
3 38 Northwest Palawan 83,000
Development B.V.
4 Forum Exploration, Inc. 40 Northern Cebu (Visayan) 340,000
Exploration Phase
5 The Philodrill Corporation 53 Mindoro - Cuyo 724,000
6 Nido Petroleum Philippines Pty. Ltd. 54 Northwest Palawan 43,515
Palawan 55 Exploration &
7 55 Southwest Palawan 988,000
Production Corp.
8 PNOC - Exploration Corporation 57 Northwest Palawan 712,000
9 Nido Petroleum Philippines Pty. Ltd. 58 Northwest Palawan 1,344,000
10 PNOC - Exploration Corporation 59 Southwest Palawan 1,476,000
11 Forum (GSEC 101) Ltd. 72 Reed Bank 880,000
12 PXP Energy Corporation 74 Northwest Palawan 318,800
13 PXP Energy Corporation 75 Northwest Palawan 616,000
14 Ratio Petroleum Limited 76 East Palawan 648,000
15 SK Liguasan Oil and Gas Corporation 77 Cotabato 72,000
16 PNOC - Exploration Corporation 79 East Palawan 932,000
Source: DOE-Energy Resource Development Bureau, as of 08 March 2024
PETROLEUM INDUSTRY
Petroleum Industry Developments Figure 2. Platform Scale Model handed to

President Ferdinand Marcos, Jr.
In March 2024, Ratio Petroleum Ltd., operator of SC
76, contracted the Shearwater Geoservices company
to deploy its “SW Thuridur” seismic survey vessel, and
acquired 3D seismic data over an area in the SC 76
block located about 150 kilometers east of Puerto
Princesa, Palawan. This deployment shall then
proceed with the seismic survey for SC 57, operated by
PNOC Exploration Corporation, in offshore Northwest
Palawan.
The Philippines has been experiencing a significant
gap in seismic survey activity over the past eight (8)
years. Commitments from Ratio Petroleum Ltd. and
PNOC Exploration Corporation to conduct the seismic
survey align with the current administration’s aim to
bolster the nation’s energy security, unlock the basin’s
untapped resources, and stimulate the exploration
and development of oil and gas in the country.
Renewal of the Malampaya Gas Field Contract
Energy
Conventional
To allow the continued production of the Malampaya gas field for another 15 years, (i.e., until 22 February 2039),
President Ferdinand Marcos, Jr. has signed the renewal agreement of the Consortium of PSC 38 in July 2023.
This will allow for the continued production of the Malampaya gas field to ensure that the remaining gas
reserves, estimated at 147 billion cubic feet (BCF), are further produced.
Exploring for “Future Fuels”
Aside from conventional fossil fuels — gas and oil—DOE has recently started looking into native hydrogen as
another resource that can serve as an alternative fuel for the country’s path toward sustainable energy transition.
Native hydrogen, also referred to as natural, white, or geologic hydrogen, is a mineral gas that naturally occurs
in certain geologic formations and can be associated with petroleum resources.
DOE has issued Department Circular No. DC 2023-11-0031, that defines native hydrogen as a mineral gas.
It also provides the guidelines on the awarding of service contracts for the exploration, development, and
production of this resource, subject to the provisions of PD No. 87, or the “Oil Exploration and Development
Act of 1972”, as amended.
INVESTMENT OPPORTUNITIES
Figure 3 shows the sedimentary basins of the Philippines for exploring and developing indigenous petroleum
resources. In 2002, the Philippine Petroleum Resource Assessment Project (PHILPRA) provided a map
identifying and categorizing 16 areas according to their potential, green indicates the most prospective basins,
yellow is considered prospective but underexplored, and red shows the frontier basins.
Figure 3. Map of the Oil and Gas Sedimentary Basins in the Philippines
Table 2. Petroleum Reserves, Resources, and Production
Classification Oil (MMB) Gas (BCF) Condensate

(MMB)
Reserves 3.74 273 6.273
Contingent
Resources/ 195 4,268.00 65
Reserves1
Undiscovered
11,104.00 54,532.00 291
Resources2
Cumulative
Production 80.67 2,623.53 92.26
¹ Values are in-place volumes based on available information/data from PSCs; Estimates
(2C-best estimates of contingent resources) of volumes drilled and discovered with no
current plan of development.
² Estimates of volumes (2U-best estimates of prospective resources) of mapped prospects
and leads that have not yet been drilled or discovered.
³ Based on 23 barrels/million standard cubic feet (MMSCF) condensate to gas ratio
Source: DOE-Energy Resource Development Bureau, as of June 2023
Table 3. Upstream Oil and Gas Roadmap
Short Term Medium Term Long Term

Oil & Gas
2023 - 2024 2025 - 2028 2029 - 2050
Increase potential resources Increase potential resources
Increase potential resources
with an additional 8.77 MMB2 with an additional 1,436.5 MMB3
with an additional 4.5 MMB1
Reserves - 1,923 MMB4 of oil and 2.6 4,039 MMB4 of oil and 11.7
- 15 MMB3 of oil and gas to
TCF2 and 5 TCF4 of gas fields/ TCF3 - 24.3 TCF4 of gas fields/
217 BCF3
prospects prospects
Additional Drill at least 2 oil and 1 gas Drill at least 2 oil and 4 gas Drill at least 6 oil and 6 gas
Discovery fields/prospects fields/prospects fields/prospects
Produce 1.2 MMB crude oil Produce 15.9 MMB crude oil Produce 42.14 MMB crude oil
Production
and 220 BCF of natural gas and 522.4 BCF of natural gas and 4.6 BCF of natural gas
DOE is steadfast in implementing its upstream oil and gas sector strategy, which aligns with the United Nations
Sustainable Development Goals and the energy trilemma.
The DOE’s aims to increase potential resources by up to 15 MMB3 of oil and 217 BCF3 of gas between 2023 - 2024,
up to 1,923 MMB4 for oil and 5,035 BCF4 for gas for the medium term 2025- 2028, and up to 4,039 MMB4 of oil and
24,271 BCF4 of gas between 2029 and 2050.
Production targets are estimated at 1.2 MMB of crude oil and 220 BCF of natural gas for the short term period
2023-2024, 15.9 MMB of crude oil and 522 BCF of natural gas between 2025 - 2028, and 42.1 MMB of crude oil and
4,582.4 BCF of natural gas between 2029-2050.
1
1C – Low estimate of contingent cesources in-place
2
2C – Best estimate of contingent resources in-place
3
1U – Low estimate of prospective resources in-place
4
2U – Best estimate of prospective resources in-place
Plans and Programs
Energy
Conventional
In support of the global energy sector’s shift towards energy transition, fossil fuels remain a reliable energy source,
and the petroleum sector is steadfast in developing domestic reserves through exploration, development, and
utilization of indigenous petroleum resources.
Philippine Conventional Energy Contracting Program (PCECP)
In line with its mandate and SONA Directive NPBBM-2023-04, DOE is persistent in pursuing additional oil and
gas explorations in other parts of the country aside from the Malampaya Project through:
1. Continuous petroleum exploration activities of its service contractors;
2. Continuous investment promotion and licensing efforts;
3. Implementation of Republic Act No. 11054 or the “Organic Law for the Bangsamoro Autonomous Region
in Muslim Mindanao”;
4. Executive issuances that will assist in revitalizing petroleum exploration; and
5. Proposing projects that will enhance the attractiveness of the country for investments.
The PCECP is a transparent and competitive licensing scheme for awarding PSCs to the most qualified operators.
The PCECP for Petroleum is governed by PD No. 87: Oil Exploration and Development Act of 1972, Republic Act
No. 7638: Department of Energy Act of 1992, and DOE Department Circular No. DC2017-12-0017: PCECP Circular.
Under the PCECP, applicants can apply for an area within the Philippine jurisdiction in two modes:
• Pre-Determined Areas (PDAs) - The DOE identifies the prospect areas for petroleum and offers them,
alongside its corresponding data packages, to applicants through a time-bound bid or contracting round.
• Nominated Areas - Applicants are free to nominate any petroleum area within the Philippine jurisdiction
(excluding areas within the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)) for
exploration, development, and utilization at any time of the year. Once the area nomination has been
approved by the DOE, a bid round for the area is published and challengers are invited to participate.
Applications for a PSC received under the PCECP are evaluated by the PCECP Review and Evaluation Committee
(REC) and its Technical Working Group (REC-TWG).
Opening of Petroleum and Coal Exploration in the Bangsamoro Autonomous Region in Muslim Mindanao
To further the development of the country’s natural gas industry, the Intergovernmental Energy Board (IEB)
Circular on the Joint Award of Petroleum Service Contracts and Coal Operating Contracts (COCs) in the BARMM
between DOE and the Ministry of Environment, Natural Resource and Energy (MENRE) was signed on 06 July
2023 and made effective on 04 August 2023. Adopting the PCECP scheme, the IEB Circular also offers 2 modes
of application: through PDAs, and via Nominated Areas.
Following the issuance of the IEB Circular on the Joint Award of PSCs and COCs in BARMM on 06 July 2023,
which became effective on 04 August 2023, interested parties may apply for a PSC within BARMM. Adopting
the PCECP, the IEB Circular also offers two modes of applications: through PDAs and Nominated Areas
Applications for a PSC received under the IEB Circular are jointly evaluated by the Joint REC and the Joint TWG,
composed of members from DOE for the National Government and from the Ministry of Environment, Natural
Resources and Energy (MENRE) for the Bangsamoro Government.
The 1st BARMM Conventional Energy Bid Round and the 2024 Philippine Bid Round
On 26 February 2024, DOE and MENRE jointly launched the National and Bangsamoro Government’s latest bid
rounds: the First BARMM Conventional Energy Bid Round, and the 2024 Philippine Bid Round.
Under the First BARMM Conventional Energy Bid Round, three (3) PDAs for petroleum and one (1) PDA for coal
are being offered. On the other hand, the 2024 Philippine Bid Round offers two (2) PDAs with proven petroleum
reserves for development and production, and two (2) PDAs for the native hydrogen exploration to local and
foreign investors.
Table 4. Pre-Determined Areas (PDAs) Offered in the First BARMM Conventional
Energy Bid Round and the 2024 Philippine Bid Round
Area No. Location Resource
1st BARMM Conventional Energy Bid Round
PDA - BC - 1 Lanao del Sur Coal
PDA - BP - 1 Onshore Cotabato Basin Petroleum
PDA - BP - 2 Offshore Sulu Sea Basin Petroleum
PDA - BP - 3 Offshore Sulu Sea Basin Petroleum
2024 Philippine Bid Round
PDA - PD - 1 Offshore Northwest Palawan Petroleum for Development and Production
PDA - PD - 2 Onshore Visayan Basin Petroleum for Development and Production
PDA - PH - 1 Onshore Central Luzon Native Hydrogen
PDA - PH - 1 Onshore Central Luzon Native Hydrogen
Further information on the PDA’s location, data listing, procedures for data requests, and application
requirements and timeline can be found online through this link: https://www.doe.gov.ph/pcecp.
DOE is still accepting applications through area nominations for the Exploration, Development, and Production
(EDP) of petroleum in the country. Aside from natural gas and oil, DOE has recently started looking into native
hydrogen, a mineral gas that naturally occurs in ophiolitic formations, as another resource that can potentially
fuel our path towards sustainable energy transition.
Policies
As a policy-making body, DOE is implementing policies to expedite indigenous petroleum exploration, streamline
service contract applications, and facilitate investments in oil and gas and native hydrogen exploration. The
proposed policies in the short term are as follows:
• DC Providing Guidelines on Petroleum Data Declassification and Free Data Access;

• DC Providing Guidelines for Additional Incentives to Promote Oil and Gas Exploration Activities1;
• DC Providing Guidelines on the Awarding of New Petroleum Service Contracts (PSCs) through Direct
Negotiation;
• Amendment of DC 2014-08-0013 Providing Guidelines in the Registration of all Contracts; and Amendment
of DC 2014-08-0013 Providing Guidelines in the Registration of all Contracts and Agreements entered into
by Petroleum Service Contractors and Coal Operating Contractors;
• Agreements Entered into by the Petroleum Service Contractors and Coal Operating Contract Operators;
• Amendment of DC 2018-03-0006 or the Omnibus Rules and Regulations Governing Tax-Exempt Importations
for Petroleum Operations and Coal Operations to cover the validity of the Tax-Exempt Certificate (TEC); and
• Amendment of DC 2007-04-0003 providing clarity on the DC for all transfers that may potentially affect the
implementation of the SC.
To further stimulate the exploration and development of oil and gas resources, DOE proposed the “Philippine
Gradiometry and Seismic Geophysical Survey Project.” This aims to acquire new geophysical data that will help
provide a comprehensive and in-depth analysis of the country’s underexplored sedimentary basins.
DOE and the upstream investors can use this information to understand petroleum prospectivity and geologic
features, potentially identifying new oil and gas fields in the country.
The upstream sector plans to explore naturally-occurring gases, such as hydrogen gas and utilize the skills and
knowledge on petroleum reservoir in the Carbon Capture and Storage (CCS) studies for energy transition.
An Act Granting New Incentives to Petroleum Service Contractors, and for This Purpose Amending Certain Sections of PD 87,
1
As Amended, Otherwise Known as “The Oil Exploration and Development Act of 1972.”
Table 5. Projected Investments from Oil and Gas Investment and Employment Opportunities
Energy
Conventional
Development and Production
DOE intends to conduct local and international
Oil Gas
roadshows to help strengthen the petroleum industry.
Term Additional Additional
Production
Investment
Production
Investment As a part of this initiative, PCECP was showcased at
(PhP Million) (PhP Million)
(MMB) (BCF) the South East Asia Petroleum Exploration Society
Short Term 1.2 2,941 220 90,059 (SEAPEX) in Singapore last March 2023. Additionally,
two (2) roadshows were conducted in Calgary,
Medium
15.9 38,975 522 213,684 Canada, during the World Petroleum Congress last
Term
Long Term 42.14 103,295 4,582 1,875,674

September 2023, and in Madrid, Spain during the
AAPG-International Conference and Exhibition last
Total 59.24 145,211 5,324 2,179,417 November 2023.
Assumed offshore gas production at PhP 0.41/cft (development and
production), which is adjusted based on inflation.
Source: Wall Street - http://graphics.wsj.com/oil-barrel-breakdown/
DOE is optimistic that the awarding of new PSCs will result in more drilling activities to augment domestic
reserves and produce indigenous oil and gas in the country. Table 5 shows the additional production targets in
the sector’s roadmap. The anticipated cumulative investment at the end of the planning horizon is PhP 145.2
billion for oil, and PhP 2.18 trillion for gas.
COAL
INDUSTRY PROFILE
Coal Consumption
The country’s coal consumption from 2009 to 2023 had steadily grown from 12.06 million metric tons (MMT)
to 42.77 MMT, as shown in Figure 4. The increase in coal consumption during the period was attributed to the
commissioning of several coal-fired thermal power plants in strategic locations in the country. Further, other
industries (food, beverage, metals, paper, etc.) with small boilers shifted from oil-fired to coal-fired due to the
increasing cost and volatility of oil prices.
Figure 4. Coal Statistics (in Million Metric Tons)
Source: DOE-Energy Resource Development Bureau, as of December 2023
Table 6. Coal Consumption by Sector

In 2023, the total coal consumption was
Industry Consumption (MT) % Share
reported at 42.77 MMT, which was
Power Plants 39,009,539.34 91.2 higher than the 2022 consumption
Cement of 36.14 MMT. Table 6 shows that
1,637,834.98 3.83
Manufacturing the power generation sector had the highest
Other Industries 2,126,248.07 4.97 share of the coal consumption at 91.20%,
Total 42,773,622.39 100 cement manufacturing shared 3.83%, while
other industries shared 4.97%.
Figures presented are based on the submitted Quarterly Coal Purchases and
Utilization Reports (CPURs) to the CERCD and CNMD (Subject to change)
Table 7. Coal Importation The country’s coal production in 2023 reached 16.51 MMT,
while the coal importation increased from 7.03 MMT in
Country Volume (MT) (% Share)
2009 to 37.12 MMT in 2023. Coal exports reached 8.06
Indonesia 36,522,579.78 98.8 MMT in 2023, from 7.12 MT in 2022. The excess production
from Semirara Mining and Power Corporation (SMPC)
Australia 193,667.00 0.52
in 2023 was exported to China, the country’s top export
Russia 153,572.00 0.42 market for coal, followed by South Korea and Brunei.
Other Countries 95,011.82 0.26

With power plants having the most significant share
Total 36,964,830.60 100 in the coal consumption, the Philippines has been
Figures presented are based on issued COC-CIs and submitted PIDs
importing coal from other countries. This is because
subject to change most of the coal power plants in the country require high-
grade coal as fuel. Table 7 shows the country sources of
our coal imports. Indonesia remains the top coal provider
with a 98.80% share, while Australia, Vietnam, and other
countries contribute the remaining 1.20%.
Coal Resources
The country’s total coal resource potential is estimated at 2,370 MMT as of 31 December 2023. From this resource
potential, the estimated total in-situ reserves and total mineable reserves are 315.08 MMT and 386.58 MMT
respectively. These coal resources are located throughout the country. Of the total in-situ reserves, about 46.5%
is located in Semirara Island, Antique; 14.07% in Cagayan Valley (Cagayan and Isabela); 13.9% in South Cotabato;
and the remaining 25.53% is distributed among various provinces in the country.
In terms of quality, the majority of Philippine coal resources are sub-bituminous, with heating values ranging
from 7,000 to 9,400 BTU/lb, based on the Evaluation Report by Robertson in 1977 and updated by Wardell-
Armstrong in 1985.
Bituminous coal reserves at 10,700-12,100 BTU/b are found in Zamboanga Sibugay, Quezon, Catanduanes,
Masbate, and Southern Cebu. Moreover, vast lignite reserves with an average of 4,600 BTU/b are located in
Cagayan and Isabela.
Typically, Philippine coal is soft to dense, mostly formed during the Miocene age (23-25 million years ago). It
occurs in moderately to severely in disturbed areas, swells and pinches, and developed in lagoon to shallow
marine environments. Figure 5 shows the various coal resources in the country.
Plans and Programs
The DOE targets to increase the indigenous coal resources at the end of the planning period from 2030-2050.
The coal sector intends to achieve the discovery of additional resources by 110 MMT coming from COCs and
small-scale coal mining permits (SSCMPs).
Philippine Conventional Energy Contracting Program (PCECP)
DOE embarked on a new contracting regime for coal, which aims to attain optimal exploration
and development of the country’s indigenous coal resources by adopting a more flexible
contracting/licensing system, known as the “Philippine Conventional Energy Contracting Program (PCECP)”.
Anchored on PD No. 972 or “The Coal Development Act of 1976” and Republic Act (RA) No. 7638 or the “The
Department of Energy Act of 1992”, the program will provide a more transparent and more competitive
evaluation and awarding of COCs.
The PCECP for Coal was issued through DC 2017-09-0010 on 13 September 2017. This new scheme enables
prospective investors to apply for an area anywhere in the country at any given time.
Further, the program promotes transparency as investors have the option to determine their preferred area
Energy
Conventional
through either of the following mode:
1. Nomination and Publication - where applicants shall formally nominate through written communication
the area/s of their interest addressed to the Review and Evaluation Committee (REC) or
2. Offering of Pre-Determined Areas (PDAs) - where applicants may apply for coal areas not covered by any
application for nomination.
Figure 5. Summary of Regional Coal Reserves
Policies
DOE will continue implementing policies to mitigate the environmental impact of coal mining, trading,
transport, distribution, and utilization to ensure a reliable and resilient energy system. These policies include:
• Guidelines on Coal Trading, Transport, Distribution, and Utilization in the Philippines to strengthen
the monitoring of coal trading, transport, distribution, and utilization of coal, and to address the current
situation and conditions in the small scale coal mining industry.
• Guidelines and Procedures allowing Small-Scale Coal Mining (SSCM) to address the current situation
and conditions in the small scale coal industry.
• Amendment of Omnibus Rules and Regulations Governing Tax Exempt Importations for Petroleum
and Coal Operations (DC 2018-03-0006) to cover the validity of the Tax Exempt Certificate (TEC).
• Guidelines on the Registration of all Contracts and Agreements entered into by the COC Operators
with the Service Providers
Coal Operating Contracts
As of 31 December 2023, there are 28 Coal Operating Contracts (COC) being monitored by DOE. 19 COCs are under
the Development and Production Phase, and nine (9) COCs are under the Exploration Phase as shown in the
Table 8.
Table 8. List of Active Coal Operating Contracts
No. Operator COC No. Location Area (Has)
Development/Production Phase
Semrara Mining and Power
1 5* Antique 13,000
Corporation
Adlaon Energy Development
2 9* Cebu 2,770
Corporation
3 PNOC-Exploration Corporation 41 Zamboanga Sibugay 6,000
4 Filipinas (Prefab) Systems, Inc. 68 Oriental Mindoro 8,000
5 Filipinas (Prefab) Systems, Inc. 78 Zamboanga Sibugay 4,000
6 A Blackstone Energy Corp. 93 Zamboanga Sibugay 1,000
7 D.M. Wenceslao and Associates, Inc. 116 Cagayan Valley 3,000
8 D.M. Wenceslao and Associates, Inc. 123 Cagayan Valley 1,000
9 Lima Coal Development Corporation 125 Albay 1,542

South Cotabato &
10 Daguma Agro Minerals Inc. 126 10,000
Sultan Kudarat
11 Samaju Corporation 128 Albay 1,400
12 Samaju Corporation 129 Albay 547

South Cotabato &
13 Sultan Energy Phil. Corp. 134 7,000
Sultan Kudarat
Great Wall Mining and Power
14 145 Surigao del Sur 5,000
Corporation
Abacus Coal Exploration and
15 148 Surigao del Sur 7,000
Development Corp.
16 Guidance Management Corp. 151 Negros Occidental 3,000
17 Lima Coal Development Corp. 153 Sorsogon 3,000
18 Titan Mining and Exploration Corp. 159 Davao Oriental 7,000
19 BBB Mining and Energy Corp. 173 Cebu 4,000
Exploration Phase
20 Titan Mining and Exploration Corp. 166** Zamboanga Sibugay 4,000
21 Blackgem Resources & Energy Inc. 169** Davao Oriental 6,000

Saranggani &
22 Dell Equipment & Construction Corp. 170** 10,000
South Cotabato
Sultan Kudarat &
23 MEGA Philippines Inc. 188 3,000
Saranggani
24 PNOC-Exploration Corporation 204 Zamboanga Sibugay 2,000
25 EFH Energy Tribe Corporation 205 Cebu 9,000
26 Sunwest Oil & Gas Incorporated 206 Albay 3,960
27 Grand Thermal Power Corporation 207 Agusan del Sur 7,000
28 Vintage - 21 Coal Mining Corporation 208 Davao Oriental 4,000

* Producing
** With application for conversion to development/production contracts
Energy
Conventional
Investment and Employment Opportunities
DOE estimates the projected investment requirement for the exploration of coal at PhP 5.62 billion, which
could provide additional 110 MMT. On the other hand, the investment requirement for the development and
production of coal will entail PhP 428.63 billion. These could contribute additional 175 MMT of coal resources.
Table 9. Projected Investments in Coal
Development and
Exploration
Production
Term Additional Additional

Investment Investment
Production Production
(in PhP Million) (in PhP Million)
(MMT) (BCF)
Short Term 60.00 3,066 30.00 73,479
Medium Term 5.00 256 80.00 195,944
Long Term 45.00 2,300 65.00 159,205
Total 110.00 5,622 175.00 428,628
(a) Investment for exploration ranges from PhP 43.42 to PhP 45.85 per ton
(b) In estimating investment requirements, the average (PhP 44.63) is used
(c) The unit investment cost is adjusted based on inflation
Source: APEC Energy Demand and Supply Outlook 6th Edition
RENEWABLE ENERGY
The Philippines has been actively pursuing renewable energy development. One of its most significant leaps
is the implementation of the Renewable Energy (RE) Act of 2008. The National Renewable Energy Program
(NREP) was formulated to support the RE Act’s goal of significantly increasing RE’s share in the country’s
power generation mix by 2040 and reducing greenhouse gas emissions (GHG). The Department of Energy
has implemented various policy reforms and offered enticing incentives to promote RE development in the
country, fostering a sustainable energy future.
As of 31 December 2023, the Department has been monitoring 1,270 RE projects with a total potential capacity
Energy
Renewable
of 134,822.07 MW and an installed capacity of 5,776.23 MW. This includes 18 Biomass own-use projects with a
potential capacity of 182.87 MW, and SESC/SEOC for own use.
Table 10. Summary of Renewable Energy (RE) Projects under the RE Act of 2008
No. of RE Installed Capacity

Resources Potential Capacity (MW)
Projects (MW)
Hydropower 429 18,902.96 1,189.24
Ocean Energy 9 34.00 -
Geothermal 39 1,063.20 1,951.74
Wind 252 85,692.96 442.90
Solar** 465 28,922.07 1,427.69
Biomass* 76 206.88 764.67
Total 1,270 134,822.07 5,776.23

*Includes 4 Non-Power facilities (Steam, refuse derived fuel, and briquette fuel production)
*Includes 18 Own-use Projects with a total installed capacity of 182.87 MW
**Includes Solar Projects with Awarded SESC/SEOC and Projects for Own-Use
Source: DOE-Renewable Energy Management Bureau, as of 31 December 2023
Compared with the RE projects in December 2022, Figure 6. Philippine Energy Trilemma Index, 2022
there is a total of 271 additional projects or 27%, with
a corresponding increase in the potential capacity Trillema Score: 55.4
Trillema Rank: #60
of 54,423 MW or 68% and the installed capacity of
Balance Grade: BDC
209 MW or 4%. These increases brought about a 0.1
increase in the Trilemma score from 55.3 in 2021 to 55.4
in 2022, generating ten ranks higher from rank #70 in
2021 to rank #60 in 2022. This means the country has
increased renewable generation but with low carbon
and energy intensity, resulting in lower emissions. The
World Energy Trilemma Index presents a comparative
ranking of the energy systems of 127 countries,
providing an assessment of a country’s energy system
performance, reflecting balance and robustness in the
three Trilemma dimensions, namely, energy security,
environmental sustainability, and energy equity.
The Philippines is aligning with the Global Energy

Transition by actively leveraging its renewable energy
resources. This ignited the push to restructure the
energy framework, revisit roadmaps, and reformulate
energy targets.
Thus, the Philippine Energy Plan 2023-2050 set an ambitious target of RE share in the power generation mix
of 35% by 2030, 50% by 2040, and more than 50% by 2050.
The PEP identified and simulated three (3) scenarios for the energy outlook over the planning horizon:
Table 11. Philippine Energy Plan 2023 – 2050 Scenarios
HIGH RE WITH LOW OSW + NUCLEAR + COAL HIGH RE WITH LOW OSW + NUCLEAR + COAL
REFERENCE (REF)
REPURPOSING (CES1) REPURPOSING (CES2)
• 35% RE Share in the • 35% RE Share in the Power Generation Mix by • 35% RE Share in the Power Generation Mix by 2030,
Power Generation 2030, 50% by 2040, more than 50% by 2050 50% by 2040, more than 50% by 2050
Mix by 2030 • Coal repurposing • Coal repurposing
• Nuclear 1,200 MW by 2032, 2,400 MW by 2035, • Nuclear 1,200 MW by 2032, 2,400 MW by 2035, 4,800
• 50% RE Share by 4,800 MW by 2050 MW by 2050
2050 • 19 GW OSW by 2050 • 50 GW OSW by 2050
One of the strategies identified in the Strategic Energy Framework 2023-2050 is achieving clean and sustainable
energy. The country will need additional capacities by 2050 to achieve the target RE shares.
Table 12 shows that between 2023 and 2050, a total of 98,502 MW is required under the reference scenario. This
will be shared among the following: Biomass with 92 MW, Geothermal with 1,355 MW, Hydropower with 10,265
MW, Wind with 31,842 MW, and Solar with the biggest share of 54,948 MW. By 2050, the total installed capacity
for RE is expected to reach 106,772 MW.
Table 12. Additional RE Capacity Requirement (2023 to 2050)

Target Capacity Addition (MW)
Target Installed Capacity (MW), 2050
Resources 2022 2023 - 2050
Baseline REF CES1 CES2 REF CES1 CES2

Biomass 610 92 138 138 702 748 748
Geothermal 1,950 1,355 1,005 1,005 3,305 2,955 2,955
Solar 1,530 54,948 53,165 34,121 56,478 54,695 35,651
Hydro 3,750 10,265 6,800 6,180 14,015 10,550 9,930
Wind 430 31,842 45,460 65,508 32,272 45,890 65,938
Onshore Wind 430 25,042 25,960 15,408 25,472 26,390 15,838
Offshore Wind 6,800 19,500 50,100 6,800 19,500 50,100
Total 8,270 98,502 106,568 106,952 106,772 114,838 115,222
Source: PEP 2023-2050
Under CES 1, a total additional capacity of 106,568 MW is needed to reach the target share of RE in the power
generation mix by 2050. The total target RE capacity of 114,383 MW by 2050 is expected to contribute about
65% of the power generation. CES 2 targets would require an additional capacity of 106,952 MW by 2050.This will
bring the total target installed capacity from RE in 2050 to 115,222 MW.
The Renewable Energy Roadmap identified enabling mechanisms to accelerate the country’s renewable
energy positioning. Several policies, plans, and programs are being implemented to attract more investors in
the energy sector. The additional required RE capacity will entail considerable investment from 2023 to 2050.
Using 2022 prices, the pre-development activities of the target additional RE capacity under the Reference
Scenario will need a total investment of PhP 35.30 billion.
Table 13. Investment Requirement Under CES 1, the target additional RE capacity by 2050
Investment Requirement* (PhP Million) will need PhP 28.56 billion. For CES 2 scenario, the pre-
at 2022 Prices, 2023-2050
Resources development activities of the forecasted additional RE
REF CES1 CES2
capacity will entail a total cost of PhP 29.68 billion.
Biomass
Geothermal 16,570.03 12,289.95 12,289.95 ENABLING POLICIES AND MECHANISMS
Solar 3,059.55 2,960.22 1,899.85
With the implementation of the Renewable Energy
Hydro 12,199.44 8,081.58 7,344.76 Act of 2008, the government has been making
Wind 3,476.55 5,233.47 8,148.32 considerable strides in fortifying domestic policy
Onshore Wind 2,586.60 2,681.42 1,591.51 frameworks and initiatives for renewable energy
Offshore Wind 889.95 2,552.05 6,556.81 development in the country. These policies, programs
Total 35,305.57 28,565.22 29,682.88 and mechanism create a massive window of
*Average pre-development investment cost per technology based on the opportunity that could satisfy the investors’ appetite
service contracts issued. for RE investments while supporting the country’s RE
development advocacies.
National Renewable Energy Program (NREP) 2020-2040. NREP outlines the long-term program to accelerate
RE development in the country., providing a unified strategy for energy security, sustainable development, and
climate change mitigation. It aims to reach 35% of RE share in the power generation mix by 2030 and 50% by
2040. These targets open up enormous demand for RE developers with a guide on the target capacity addition
per resource.
Renewable Portfolio Standards (RPS) for On-Grid. The RPS Rules for On-Grid Areas is a market-based policy
that requires all mandated participants to source or produce a portion of their supply from eligible RE facilities.
DOE issued Department Circular No. DC2022-09- 3044, which effectively increased the minimum RPS annual
percentage increment from 1.0% to 2.52% starting 2023.
The Mandated Participants are the following:
Energy
Renewable
1. All Distribution Utilities (DUs) for their Captive Customers;
2. All Suppliers of Electricity for the Contestable Market; and
3. Generating Companies only to the extent of their actual supply to their directly connected customers.
On 23 May 2023, DOE issued DC No. DC2023-05-0015 titled, “Prescribing the Amendments to the Renewable
Portfolio Standards (RPS) for On-Grid Areas.” This mandates the Energy Regulatory Commission (ERC) to issue
a Regulatory Framework on the cost recovery mechanisms of the Mandated Participants as a result of their
compliance under the RPS On-Grid Rules. On 07 December 2023, DC No. DC2023-12-3246 was promulgated
to govern the procedure in all matters relating to the inquiry, investigation, and all other proceedings on
administrative actions for violations of the RPS Rules for both on-grid and off-grid areas.
The Renewable Energy Certificates (RECs) shall be surrendered to the RE Registrar annually following the
mandated participants’ annual RPS requirement. One (1) REC is equivalent to 1 MWh and has a validity of three
(3) years from the date of issuance. In 2020, all mandated participants were required to start complying with
their RPS obligation based on their Net Electricity Sales for the baseline year 2018. This translates to additional
fixed and long-term demand for RE capacities regardless of the type of RE resource, thus creating more market
opportunities for RE developers.
Renewable Portfolio Standards (RPS) for Off-Grid. On 29 September 2018, the RPS Rules for Off-Grid Areas
issued through DC No. DC2018- 08-0024 was implemented. It promotes the efficient use of the universal charge
for missionary electrification (UCME) and improvement of efficiency in power generation by integrating RE in
the supply mix in off-grid and missionary areas. On 23 May 2023, DOE issued DC No. DC2023-05-0014 or the
Revised Rules and Guidelines Governing the Operationalization of the RPS Off-Grid, defining Framework for
RPS Compliance, among others.
Green Energy Auction Program (GEAP). The Green Energy Auction Program is a flagship program that intends
to provide a robust and additional market for RE through transparent and competitive electronic bidding of RE
capacities. The salient features of GEAP are:
• GEAP will be conducted annually or as necessary
• Adopt the FIT-All payment system except for the FIT rates
• Considered as an acceptance form of compliance with the CSP policy, including the Opt-In
Mechanism for DUs
• The volume of RE generated and its corresponding RE Certificates shall be allocated pro-rata to RPS
Mandated Participants
Potential or Qualified Suppliers under the GEAP are as follows:

1. RE Developers or Generators registered with the DOE.
2. RE facilities built after the RE Act with no legal impediment, i.e., PPA/PSA with DU at the time of the
agreed delivery date/s.
3. Legacy RE facilities cover the capacities resulting from expansion or upgrading, provided such
capacities have their own metering facility.
Geothermal and Impounding Hydro facilities shall be governed by a specific auction policy and guidelines or a
separate remuneration package under the GEA.
Table 14. GEA-1 Winning Bids Capacity The Green Energy Auction 1 (GEA-1) was conducted on 17
Capacity (MW) June 2022 for 2,000 MW capacity requirement. Twenty-
Technology Total four qualified bidders joined through an electronic bidding
2024 2025
platform, and came up with eight (8) bids for Solar, eight (8)
Hydro 99.15 99.15
for Wind, seven (7) for Run-of-River (ROR) Hydro, and one (1) for
Biomass 3.40 3.40 Biomass. As a result, the first auction round of GEA awarded
Solar 1,490.38 1,490.38 18 winning bidders, wherein a total capacity of 1,866.13 MW
Wind 273.2 273.2
was committed to be delivered from 2024 to 2025.
Total 3.40 1,862.73 1,866.13 Of this capacity, 3.4 MW will come from Biomass and is
Source: DOE-Renewable Energy Management Bureau committed to be delivered in 2024, while the Hydro projects
with a total capacity of 99.15 MW, Solar projects with a total
Table 15. GEA-1 GEAR Price
capacity of 1,490.38 MW, and Wind projects with a total
Technology GEAR Price (PhP/kWh) capacity of 273.20 MW have been committed to be delivered
by 2025.
Solar 3.6779
Wind 6.0584 The Green Energy Auction Reserve (GEAR) Prices for GEA-1
Biomass 5.0797 are shown in Table 15. The GEAR price per resource serves as
a guide for the bidders in setting their Green Energy Tariff
Run-of-River Hydro 5.4913
(GET). The GET for each bid must not be more than the
Source: DOE-Renewable Energy Management Bureau
GEAR Price set by the ERC.
To encourage broader participation and foster greater competition in the GEA-2, DOE eased the requirements
on registration and expanded the participation of RE developers in the GEAP by allowing developers with Letter
of Intent to participate and allowing RE Developers of roof- mounted Solar projects to participate in the GEA- 2
without having to submit proof of filing an LOI for an RE contract.
In addition, the provision of the indivisibility rule for marginal offers was enhanced, removing the qualification
criteria on the excess capacity offered.
Table 16. GEA-2 Winning Bids Capacity GEA-2 was conducted on 03 July 2023 and offered ground-
mounted and floating Solar, Onshore Wind, Biomass, and
Capacity (MW)
Technology Total Waste-to-Energy capacities. A total of 109 participating
2024 2025 2026
Qualified Bidders joined and competed for the 11,600
Ground-
Mounted Solar
507.757 515.36 855.86 1,878.98 MW capacity requirement. Of this capacity, 105 out of 109
qualified bids won the auction from 40 RE Developers with
Floating Solar 1.15 8.24 0 9.39
a total offered capacity of 3,440.756 MW.
Roof-Mounted
0 0 90 90.00
Solar
Ground-mounted Solar has 34 winning bids for a total
Onshore Wind 0 230.4 1,231.984 1,462.38 capacity of 1,878.98 MW, Roof-mounted Solar has 58 winning
Total 508.91 754.00 2,177.84 3,440.75
bidders with a capacity of 9.39 MW, Floating Solar has one (1)
winning bid for a 90 MW capacity, and Onshore Wind has 12
winning bids with a total capacity of 1,462.38 MW.
Biomass and Waste-to-Energy resources did not receive any bids for this auction round. Shown in Table 17 are
the GEAR Prices set by the ERC for each resource that served as the price cap for every bid. Bids with offers
higher than the GEAR Price are automatically disqualified. The results of the GEA-2 successfully contracting
3,440.756 MW out of 11,600 MW target capacity shows only 29.7% contracting capacity. This is very low
compared to the 93.3% contracting capacity of GEA-1, with 1,866.13 MW contracted capacity out of the 2,000
MW capacity requirement. DOE is considering conducting another auction round in the 4th quarter of 2024 for
the unsubscribed capacity of around 8,000 MW from GEA-2.
Table 17. GEA-2 GEAR Price On 12 December 2023, DOE issued DC No. DC2023-10-0029
GEAR Price
titled, “Providing Specific Auction Policy Guidelines for Non-
Technology
(PhP/kWh) FIT-Eligible Renewable Energy Technologies in the Green
Roof-Mounted Solar 4.8738 Energy Auction Program.” This is in preparation for the third
Ground-Mounted Solar 4.4043 round of the Green Energy Auction that will cover non-FIT
Floating Solar 5.3948 eligible technologies such as Geothermal, Pumped Storage
Onshore Wind 5.8481
Hydro, and Impounding Hydro plus Run-of-River (ROR)
Hydro, a FIT- eligible technology to mitigate the impact
Biomass 5.4024
of increasing variable renewables in the grid as well as to
Waste-to-Energy 6.2683
encourage more investments in power generation under
GEAP. The issuance of a Notice of Auction (NOA) for the conduct of GEA- 3, auction design, Terms of References
(TOR), target capacity for ROR, Price Determination Methodology (PDM) for non-FIT eligible RE technologies, as
well as the legal and technical requirements are expected to come out in the 2nd quarter of 2024.
Open and Competitive Selection Process (OCSP). In a quest to stimulate a vibrant and competitive landscape
for Renewable Energy (RE) advancement, the Department of Energy (DOE) is steadfast in its commitment to
reach the target share of RE in the power generation mix of 35% by 2030 and 50% by 2040. The OCSP is designed
with transparency and fairness in determining the most suitable developers across various RE technologies.
DOE is actively engaged in the regular conduct of the OCSP to foster a dynamic and competitive environment
for RE development. A series of public consultations was conducted in preparation of the next rounds
of OCSP. Various factors, such as resource availability, infrastructure accessibility, and environmental impacts,
were considered in the determination of the PDAs. The available technical data on the PDAs will serve as an
initial reference for interested bidders.
Energy
Renewable
The 4th OCSP was launched on 11 July 2023, where 20 PDAs with three (3) areas for Geothermal and a total
potential capacity of 160 MW, fourteen (14) areas for Hydropower with a combined capacity of 87.96 MW, and
three (3) areas for Wind resources whose total potential capacity is to be determined. DOE issued DC2023-06-
0019, or “The Guidelines that outline the requirements and procedures governing the OCSP4 to provide a clear
framework to ensure a fair, standardized, and transparent selection process. Four (4) applications, covering two
(2) Geothermal and two (2) Wind PDAs, were determined to meet the evaluation criteria and were declared as
winning bidders.
PDAs with no RE applications and no qualified RE applicants were declared “Failure of OCSP” for the said
PDAs under Item 7 of the OCSP4 Guidelines. These PDAs were consequently opened for Direct Application,
following the procedures and requirements outlined in Department Circular No. DC2019-10-0013, also known
as the “Omnibus Guidelines Governing the Award and Administration of Renewable Energy Contracts and the
Registration of the Renewable Energy Developers.”
Competitive RE Zones (CREZ). On 13 September 2018, DOE Circular No. DC2018-09-0027, entitled
“Establishment and Development of Competitive Renewable Energy Zones in the Country” was issued. The
CREZ process strategically directs renewable energy (RE) development to the most cost-effective locations.
Figure 7. Competitive Renewable Energy

Zones (CREZ) (Location Within 50 KM Radius)
These zones are selected based on the quality of available

renewable energy resources and transmission network
facilities with high-voltage lines. It is a tool the government
utilizes to cost- effectively accelerate the deployment of
large- scale RE projects in the country.
PDAs with no RE applications and no qualified RE

applicants were declared “Failure of OCSP” for the said
PDAs under Item 7 of the OCSP4 Guidelines. These
PDAs were consequently opened for Direct Application,
following the procedures and requirements outlined in
Department Circular No. DC2019-10-0013, also known
as the “Omnibus Guidelines Governing the Award and
Administration of Renewable Energy Contracts and the
Registration of the Renewable Energy Developers.”
There were 25 CREZs identified with high-quality solar and

wind resources across the country, with an estimated total
capacity of 152,097 MW. It likewise covers the potential
for other RE sources, such as Geothermal, Hydro, and
Biomass, with a total potential capacity of 655,773 MW.
Table 18. Potential RE Capacities under CREZ
System Solar PV Wind Geothermal Hydropower Biomass Total

Luzon 35,031 54,115 285 270,603 210 360,244
Visayas 11,876 25,429 40 1,917 71 39,333
Mindanao 11,203 14,443 40 382,514 93 408,293
Philippines 58,110 93,987 365 655,034 374 807,870
Source: CREZ Report
Renewable Energy Market (REM). The establishment of the RE Market provides a venue for trading Renewable
Energy Certificates (RECs) between and among REM Trading Participants. The REM shall serve as a platform
for RPS Mandated Participants to comply with their minimum RPS requirements both for on-grid and off-grid.
As of March 2023, there are 262 registered REM participants.
Preferential Dispatch in the Wholesale Electricity Spot Market (WESM). On 05 October 2022, DOE issued
DC2022-10-0031 declaring all RE resources as preferential dispatch generating units in the Wholesale Electricity
Spot Market. This circular amended DC No. DC2015-03-0001 granting all RE-generating units preferential
dispatch in the WESM (i.e., must or priority dispatch) to ensure their maximum output injection in the grid.
Green Energy Option Program (GEOP). GEOP is a voluntary policy mechanism that allows electricity end-
users with 100 kW and above demand to source their electricity from renewable energy sources through RE
Suppliers. GEOP allows the end-users to choose RE resources as their energy source. It is a non- regulated
activity that provides options to end users to contribute to developing and utilizing RE resources in a sustainable
and low-cost manner. As of 31 December 2023, there are 19 RE suppliers under GEOP. In Luzon and Visayas, 286
customers have already switched to GEOP, equivalent to 96.37 MW non-coincidental peak demand.
Feed-in-Tariff System. The Feed-in-Tariff (FIT) system offers RE developers a guaranteed fixed price for the
electricity they generate for a specific period. This fixed price is set at a higher rate than the prevailing market
rate. To qualify for the FIT scheme, RE developers must meet specific eligibility criteria and obtain a certificate
of eligibility from the DOE and a Certificate of Compliance for Feed-in-Tariff from the ERC. As of January 2024,
a total capacity of 1,369.945 MW for 82 projects was issued Certificate of Endorsement for FIT Eligibility (COE-
FIT). The installation target for Hydropower technology was undersubscribed due to permitting and licensing
issues. Hence, the application for FIT Eligibility for the remaining installation target balance for run-of-river
(ROR) Hydropower is extended until full subscription of 350 MW.
Net Metering. Net Metering is a consumer-based RE incentive scheme wherein power generated by an end-
user (such as a house or commercial establishment with a Solar photovoltaic system) can partly satisfy their
electricity demand by themselves. This allows end-users to be prosumers (both a consumer and producer), but
not net power generators, generating electricity from RE-based systems up to 100 kW for their own use and
selling their excess to the grid. As of 31 December 2023, a total of 11,707 qualified end- users, covering 79 DUs,
were registered in the program, with a total rated capacity of 101.469 MWp. Luzon Grid has the highest rated
capacity of 70%, Visayas has a 25% rated capacity, and Mindanao has a 5% rated capacity.
RE Trust Fund (RETF). RETF aims to provide financial support to projects of qualified entities further promoting
and increasing the utilization of RE. RETF will be coming from government institutions, one and a half percent
(1.5%) of the government share collected from the development and use of indigenous non- renewable energy
resources, and DOE collection from contributions, grants, and donations in the form of cash, any revenues
generated from the utilization of the RETF, and proceeds from fines and penalties imposed under the RE
law will be transferred to the respective RETF Trust
Figure 8. Signing of MOA on RETF by DOE
Accounts. DOE and the Department of Science
Secretary Raphael P.M. Lotilla and DOST Secretary
Renato U. Solidum, Jr. on the RETF MOA Signing and Technology (DOST) signed a Memorandum of
between DOE and DOST Agreement (MOA) on 03 April 2024. Under the MOA,
DOE and DOST, through the Philippine Council for
Industry, Energy and Emerging Technology Research
and Development (PCIEERD), will collaborate on
research projects aimed at enhancing the efficiency,
affordability and scalability of RE technologies,
including solar, wind, hydro, biomass, ocean,
geothermal energy and other emerging technologies.
Easing Foreign Ownership Limit. November 2022,

DOE issued DC No. DC2022- 11-0034 “Prescribing
Amendments to Section 19 of Department Circular
No. DC2009-02-0008 Titled, Rules and Regulations
Implementing Republic Act No. 9513, Otherwise known as the RE Act of 2008”. It removes foreign ownership
restrictions in the exploration, development, and utilization of Solar, Wind, Hydro, and Ocean or Tidal projects,
excluding water resources directly harvested from the source, which the Water Code of the Philippines shall govern.
RESOURCE POTENTIALS
Offshore Wind Development
The Philippine Offshore Wind Development Roadmap, jointly developed by DOE and the World Bank (WB) in
2019, revealed that the Philippines has vast offshore Wind (OSW) resources in six prospective zones: Northwest
Luzon, Manila, Northern Mindoro, Southern Mindoro, Guimaras Strait, and Negros/Panay West.
The study identified a total estimated technical potential of 178 GW, 160 GW of which is in deep water applicable
Energy
Renewable
for floating Wind turbines, while the remaining 18 GW is in shallow water appropriate for fixed bottom
Wind turbines. Aside from the Offshore Wind potential, the study also unveiled the following: Scenarios for
Development, Challenges and Opportunities for Developing Offshore Wind, and Recommendations for the
Philippines.
Figure 9. OSW Prospective Development Table 19. Awarded OSW Energy Service
Zones (OSW Roadmap)
Potential
Development No. of RE Contract
Capacity
Zones Contracts Area (Has.)
(MW)
Northwest Luzon 11 220,896 8,609
Manila 9 120,771 6,642
Northern
9 188,839 9,288
Mindoro
Negros / Panay
10 186,589 5,032
West
Southern
10 325,662 10,117
Mindoro
Guimaras Straight 10 174,879 6,424
Other Areas 22 343,641 16,427
Total 81 1,561,277 62,539
Source: DOE-Renewable Energy Management Bureau,
as of December 2023
As of 31 December 2023, DOE has awarded 81 Offshore

Wind Energy Service Contracts with a total potential
capacity of 62,539 MW. This is more than the target RE
capacity addition by 2040. These projects are spread
mainly in North Luzon, West of Metro Manila, North
and South of Mindoro, and Panay and Guimaras
Straits.
On 19 April 2023, President Ferdinand Marcos,
Jr. issued Executive Order (EO) No. 21, directing
the establishment of a Policy and Administrative
Framework for the efficient and optimal development
of OSW resources in the country to hasten the rollout
of OSW development. It is a whole-of-government approach to streamline and expedite the approval process
for issuing permits, licenses, and clearances for OSW projects. It also includes integrating applicable permits
into the Energy Virtual One-Stop Shop (EVOSS) platform.
In addition, the Policy and Administrative Framework for the Efficient and Optimal Development of the
Country’s Offshore Wind Resources (OPAF) was issued on 16 June 2023. This covers all the Permitting Agencies,
Departments, Bureaus, Offices, agencies, government-owned and controlled corporations, local government
units, and other entities involved in the permitting process of OSW projects.
The DOE is also examining the OSW value chain to support the country’s fast-phase development of OSW.
Port readiness is a critical factor in the successful development of OSW projects. It encompasses the state of
readiness and appropriateness of ports to facilitate the diverse activities associated with installing, operating,
and maintaining offshore wind farms.
Drawing insights from the experiences of other countries, it is notable that we do not have ports inherently
prepared for OSW development. The existing ports often need repurposing to align with OSW development’s
specific requirements and demands. This process involves adapting and enhancing port facilities to support
the OSW industry’s unique logistics, assembly, and deployment needs.
The Asian Development Bank’s (ADB’s) Technical Assistance Program entitled “Supporting Offshore Wind Port
Development Planning” allocated USD 400,000.00 from ADB’s Climate Change Fund. The Technical Assistance
is set to support the Philippines’ OSW development through the preparation of pre-feasibility studies for offshore
Wind ports, a list of priority ports for OSW development, and a time-bound action plan for OSW development
starting 2028.
To support the Philippines’ OSW development through the preparation of pre-feasibility studies for offshore
Wind ports, a list of priority ports for OSW development, and a time-bound action plan for OSW development
starting 2028.
Figure 10. Ports Identified to Support OSW Development Identified Ports for Asian Development Bank
(ADB) Technical Assistance
1. Port of Irene
2. Port of Currimao
3. Port Subic
4. Bauan International Port, Inc.
5. PNOC Energy Supply Base Port (ESB)
6. Tabacco Port
7. Bulalacao Port
8. Iloilo Commercial Port Complex (ICPC)
9. Banago Port
10. Pulupandan Port
Identified Ports of OSW RE Developers
1. Hanjin Shipyard
2. Wawa Port
3. Port of Calatagan
4. Calaca Port
5. Caticlan Port
6. Culasi Port
7. Dumangas Port
8. Aparri Port
9. Dingalan Port
10. Lucena Port
11. Legazpi Port
12. Allen Port
Source: DOE-Renewable Energy Management Bureau 13. Dumaguete
14. Port Dapitan Port
Onshore Wind Development

The CREZ initiative highlights potential avenues for RE development and mitigates investment hurdles by
using CREZ locations which are pre-evaluated for superior resources, appropriate topography, potential land-
use limitations, and evident private developer engagement, thereby diminishing the overall cost of feasibility
assessment. In addition, it provides high- capacity factors and a lower cost per megawatt hour (PhP/MWh) and
transmission.
The CREZ report identified a total onshore Wind potential capacity of 93,987 MW. This is thrice more than the
target capacity addition by 2050 under the reference scenario. Luzon was identified to have a total potential
capacity of 54,115 MW, while Visayas and Mindanao have a total potential of 25,429 MW and 14,443 MW,
respectively. On a per-grid basis, zones in Mindanao have the highest potential capacities. On the other hand,
zones in Luzon have the lowest LCOE, and zones in Visayas have the highest capacity factor from 32% to 36%.
The report also presented the technical and financial assumptions to estimate the technical potential and the
Levelized Cost of Energy (LCOE) for RE generation technologies. The variable operation and maintenance costs
and fuel costs are assumed to be zero for RE generation. The capital cost for onshore Wind projects at 56 PhP/
USD conversion rate is PhP 139.99 million/MW. The fixed operation and maintenance cost is estimated at PhP
1.4 million/MW/year, while the grid connection cost is estimated at PhP 86,128/ km/MW.
Figure 11. Distribution of Optimized

CREZ for Wind Table 20. Grid comparison of Optimized CREZ for Wind
Capacity
Wind Potential Capacity LCOE
Factor
81 USD/MWh to
Luzon 324 MW to 1,239 MW 27% to 36%
105 USD/MWh
Energy
Renewable
90 USD/MWh to
Visayas 551 MW to 708 MW 32% to 36%
111 USD/MWh
109 USD/MWh to
Mindanao 560 MW to 1,472 MW 22% to 26%
111 USD/MWh
Source: CREZ Report
Further, in 2000, the Philippines Wind Resource Atlas

Development of NREL identified a total of 76.6 GW of Wind
energy potential from areas with good to excellent Wind
resources. The areas with the highest concentration of Wind
are Ilocos Norte, Cagayan, Quezon, Camarines Norte, and
Palawan.
Figure 12. Wind Electric Potential from

areas with good to excellent wind resource
Solar Energy Development
The total installed capacity for Solar, as

of 31 December 2022, is 1,530 MW. DOE is
expecting to have a total capacity addition of
54,948 MW by 2050 under the REF scenario,
53,165 MW under CES 1, and 34,121 MW under
CES 2. This could bring the total installed
capacity for Solar to 56,478 MW by 2050
under the REF scenario, 54,695 MW under
CES 1, and 35,651 MW under CES 2.
The government has estimated a total

investment requirement of PhP 3.06 billion
for the target additional capacity by 2050
under the REF scenario, PhP 2.96 billion
under CES 1, and PhP 1.89 billion under CES
2. This considerable investment requirement
calls for collaboration between RE investors
and financing institutions on some projects
to contribute to achieving the country’s
target Solar energy capacity.
The total Solar energy potential under CREZ is estimated at 58,110 MW, with 35,031 MW coming from Luzon,
11,876 MW from Visayas, and 11,203 MW from Mindanao.
Figure 13. Distribution of Optimized CREZ for Solar According to the CREZ Report, the capital cost per
MW for Solar PV projects with the above specification
is around PhP 83.99 million at 56 PhP/USD conversion
rate. The fixed operations and maintenance cost
would reach PhP 840,000/MW/year, while the grid
connection cost is PhP 86.128 million/km/MW for a
substation tie-in, 69 kV, steel tower, and single circuit
line.
Taking a closer look at the optimized CREZ for Solar,
Luzon zones have the highest potential capacities,
lowest LCOE, and the highest capacity factor,
reaching up to 18%.
Table 21. Grid Comparison of Optimized CREZ for Solar
Potential Capacity
Solar LCOE
Capacity Factor
130 MW to 81 USD/MWh to
Luzon 16% to 18%
1,109 MW 103 USD/MWh
Visayas 16%
908 MW 111 USD/MWh
Mindanao 15% to 17%
969 MW 111 USD/MWh
Source: CREZ Report
Figure 14. Maibarara Geothermal Power Facility in Sto. Tomas, Batangas
Geothermal Energy Development
As of 31 December 2023, there are 39 Geothermal Service Contracts (GSCs) with a total installed capacity of 1,951
MW. To reach the 2050 targets outlined in the 2023-2050 PEP, Geothermal energy is expected to share 1,355
MW under the REF scenario and 1,005 MW under CES 1 and CES 2. The additional capacity will entail a total
investment cost of PhP 16.57 billion for the REF scenario and PhP 12.29 billion for CES 1 and CES 2.
In addition to Solar and Wind energy potentials, the CREZ Report also identified potentials for Geothermal
energy development of around 365 MW. Capital cost for the CREZ areas amount to PhP 335.99 million/MW
Figure 15. Map of Potential Geothermal Areas while the fixed operation and maintenance
cost amount to PhP 1.12 million/MW/year, and
MAP OF POTENTIAL GEOTHERMAL AREAS
IN THE PHILIPPINES LOW to MEDIUM TEMP. VOLCANIC BELT
the grid connection cost for substation tie-in, 69
as of 11 January 2024
PRODUCING FIELD
65. Tublay
64. Tingloy
kV, steel tower, or single circuit line amount to
PhP 86,128/km/MW.
63. Tiaong
1. Maibarara
62. Tayabas
2. Makiling-Banahaw
61. Tarragona
3. Tiwi
60. San�ago
4. Bacon-Manito
59. Santa Maria
5. Tongonan
58. San Juan
6. Palinpinon
7. Mt. Apo
57. Pu�ng Lupa
56. Pudtol
Further, in the Proceedings World Geothermal
Congress 2020, Halcon et. al, presented
55. Simara Island
HIGH TEMP. PROSPECTS
54. Mount Zion
10. Amacan 53. Mount Timolan
“An Update on the Philippine Geothermal

11. Balatukan-Balingasag 52. Mount Sembrano
12. Cagua-Baua 51. Mount Parker
13. Daklan 50. Mount Negron
14. Kalinga
15. Mandalagan
49. Mount Malindig
48. Mount Kitanglad
Resource Estimates”. This presents the current
16. Mt. Isarog
Geothermal resource potential sites in the
47. Mount Bulusan
17. Mt. Labo 46. Mount Blit
18. Mt. Na�b
Energy
Renewable
45. Mount Ampiro
country with a total estimated capacity of 4,160
19. Southern Leyte 44. Montelago
20. Biliran 43. Mainit, Surigao
8. Acupan
MW. Figure 15 shows the potential Geothermal
42. Mabini
9. Alto Peak 41. Lupon
40. Lebak-Kalamnsig
areas, showing that the Philippines still has vast

LOW to MEDIUM 39. La Trinidad
TEMP. VOLCANIC BELT 38. Kasibu
21. Alfonso Castañeda 37. Jose Abad Santos
22. Aurora
23. Balungao
36. Gregorio del Pilar
35. Esperanza-Isulan Geothermal potential across the country. The
resource assessment shows a few unexplored
24. Balut Island 34. Ducligan
25. Barlig 33. Digos
26. Bato-Lunas 32. Compostela Valley
27. Buguias-Tinoc
28. Camiguin de Babuyanes high-temperature opportunities, and most
intermediate-temperature opportunities are
29. Cateel
30. Cervantes
31. Columbio
LOW TEMP. PLUTONIC

found along the country’s active volcanic belt.
66. Anini-y-�am�c
67. Cabarroguis
68. Maayon On 12 February 2024, DOE announced the
conduct of GEA-3 for 2024. The target capacity
69. Sal-lapadan-Boliney-Bucloc-Tubo
70. San Miguel
71. Sibagat
LOW TEMP. MAJOR STRUCTURES &

for geothermal power is 380 MW, and the
OTHER STRUCTURES
target delivery commencement period (DCP) is
72. Brooke's Point 83. San�ago
73. Bunawan
74. Calbayog
84. Sapad-Salvador
85. Sta. Lucia-Iwahig
between 2024 and 2030.
75. El Nido 86. Sta. Lourdes-Tagburos
76. Leon B. Pos�go
77. Malabuyoc
Hydropower Development
78. Narra-Labog
Source: DOE-RenewableLegend
79. Prosperidad Energy Management Bureau
80. Rosario (Agusan)
81. Rosario (Samar) Producing Field Potential Geothermal Areas Oligocene-Miocene Magmatic Belts Fault
82. San Francisco Oligo-Miocene Plutonic rocks Trench
Active Volcanoes
Figure 16. Map of Potential Hydropower Areas Active Volcanic Belt

As of 31 December 2023, the country has a
total of 433 Hydropower projects, with 429
commercial projects awarded with Hydropower
Energy Service Contracts (HESCs) and four (4)
own-use projects issued with Certificate of
Registration (COR). The total installed capacity
of commercial projects is 1,187.91 MW, while the
total installed capacity of own-use projects is
5.02 MW.
The target capacity installation by 2050 for

Hydropower under the PEP 2023 to 2050 is
10,265 MW under REF scenario, 6,800 MW
under CES 2, and 6,180 MW under 2. This would
require a total investment cost of PhP 12.199
billion under the REF scenario, PhP 8.081 billion
under CES 1, and PhP 7.344 billion under CES 2.
Various resource assessments for Hydropower

potential unveil a total potential capacity of
23,375 MW. Of this capacity, 17,366 MW is from
Luzon, 2,448 MW in Visayas, and 3,569 MW in
Mindanao, as shown in Figure 16.
In addition, the CREZ Report has identified a

massive potential for Hydropower development
of around 655,034 MW, with 270,603 MW from
Figure 17. National Irrigation Administration- Magat River Luzon, 1,917 MW from Visayas, and 382,514 MW
Integrated Irrigation System (NIA - MARIIS) from Mindanao. The capital cost of a small
Re-regulating Dam in Alfonso Lista, Ifugao / Ramon, Isabela Hydropower project with a capacity of less than
50 MW PhP 158.47 million per MW. The fixed
operating and maintenance cost is PhP 4.75
million/MW/year, while the grid connection
cost is PhP 86,128/km/MW.
The archipelagic nature of the country

offers abundant resources for Hydropower
development. Hydropower projects in the
country include run-of-river Hydropower,
impounding, pump-storage, and mini/micro
Hydropower projects.
Generally, ROR hydro plants are used to meet

peak demands. However, ROR with large
reservoirs or very consistent river flows that can
generate power at near-constant levels throughout the year can be used as baseload power. Impounding or
dam-type hydro can be used as baseload power and peak load power. Pump-storage Hydro can be used as
peak load power, and it can act as an Energy Storage System (ESS) to support variable RE (VRE) Technologies.
Being the most resilient power plant, Hydropower plants have a long operating life of 30 to 80 years. The average
ROI of Hydropower projects is between 8-10 years. This means that income after the ROI is considered purely
revenue from investments that can reach up to 2 to 6 times over the capital investment.
There are 18 potential sites in the existing NIA irrigation canal system that can be converted to multi-use
facilities. DOE and NIA signed a Memorandum of Agreement (MOA) for the development, utilization, and
commercialization of Hydropower within the NIA irrigation facilities. The OCSP 4 was conducted in 2023, which
offered 14 Hydropower pre-determined areas. Following the OCSP 4 guidelines, four applications have met the
minimum evaluation criteria, declaring four winning bidders for two Geothermal PDAs and two Wind PDAs.
Meanwhile, six (6) PDAs for Hydropower with a total potential capacity of 22.56 MW will have a change of mode
of award from OCSP to Direct Application.
The GEA-3 to be conducted this year will auction non-FIT RE Technologies, including impounding hydro,
pumped-storage hydro, and a FIT-eligible technology, such as a run of river hydro. It is estimated that a total of
699 MW will be auctioned for impounding hydro, while 3,120 MW will be auctioned for pump-storage. For the
run of river hydro, an estimated capacity of 200 MW will be auctioned with a target DCP starting 2026 to 2028.
The DCP for impounding and pumped storage hydro will be from 2028 to 2030.
Biomass and Waste to Energy (WTE) Development
The Philippines has a large agricultural economy, accounting for 8.9% of the country’s gross domestic product.
Globally, the country ranks 2nd in coconut production and 11th for sugarcane production. These provide the
Philippines with an abundant supply of biomass resources composed mainly of agricultural and fishery, agro-
industrial, and forest residues and/ or wastes. As the price of fossil fuels continues to rise, the Philippines is
seeing an increase in the usage of commercially produced agricultural residues for power generation and
biofuel production.
Common feedstock for biomass power generation are rice husk and bagasse, while sugarcane molasses and
coconut oil are used for biofuels. Biomass technologies include direct combustion, anaerobic digestion, and
gasification for power generation; oven/kilns, and cookstoves for drying and cooking purposes; fermentation
Table 22. Estimated Investment Cost of Biomass and transesterification for biofuel production. Table
Projects per Technology 22 shows the estimated investment cost per Biomass
technology.
Technology Investment in USD/MW
Combustion 2 - 2.5 Million Waste-to-Energy (WTE) plants in the Philippines
Gasification 1.2 - 1.3 Million employ landfill methane recovery, refuse-derived
Anaerobic Digestion 1.3 - 1.4 Million fuel production, and anaerobic digestion. A two-
WTE 5 - 7 Million year study by the DOE is assessing the potential
Landfill Gas Extraction 2 - 2.5 Million of these technologies for the promotion and
commercialization of WTE. During the 1st year, waste streams and power generation from the 33 highly
Energy
Renewable
urbanized cities (HUCs) and 246 existing sanitary landfill sites (SLFs) were evaluated, and suitable technologies
and financing models were identified. The 2nd year aims to identify three (3) potential sites for pilot projects,
conduct viability and impact assessments, and develop guidelines for project implementation.
As of 31 December 2023, there are 58 projects awarded with BREOCs/BEOCs with a total installed capacity of
581.799 MW and a total potential capacity of 206.879 MW. The target additional capacity for Biomass under
the PEP 2023-2050 is 92 MW under the REF scenario and 138 MW under CES 1 and CES 2. Figure 15 shows the
potential sites for Biomass development covered by the USAID Study that can fulfill part of the target capacity
additions.
In addition, the Biomass potential capacity identified under CREZ is 210 MW in Luzon, 71 MW in Visayas, and
93 MW in Mindanao. These capacities can further bring us closer to achieving our target capacity additions
by 2050. The capital cost for Biomass projects under the CREZ Report is PhP 105.839 million/MW, while the
fixed operations and maintenance cost is PhP 98.559 million/MW/year, and the grid connection cost for
substation tie-in, 69 kV, steel tower or single circuit line is PhP 86,128/km/MW.
Figure 18. Map of Potential Biomass Sites
Biomass technology is a key factor in attaining net-zero

emissions by 2050 in support of the United Nations
sustainable development agenda. This technology
significantly reduces dependence on fossil fuels and
lowers our carbon footprint by preventing methane
gas emissions from decomposing wastes. It also adds
value to previously unusable agricultural residues,
providing additional income for farmers.
Biofuels
Bioethanol refers to ethanol produced from feedstock

and other biomass. Bioethanol fuel is the Hydrous or
Anhydrous bioethanol suitably denatured for use as
motor fuel, with quality specifications in accordance
with the Philippine National Standards (PNS).
Biodiesel refers to Fatty Acid Methyl Ester (FAME)

or mono-alkyl esters derived from vegetable oils or
animal fats and other Biomass-derived oils that shall
be technically proven and approved by the DOE for
use in diesel engines, with quality specifications in
accordance with the PNS.
Table 23. Feedstock Sources for Bioethanol Production in the Philippines
Types of
Feedstock for Bioethanol Production
Biofuel
1st Generation Sugarcane*, Molasses*, Cassava, Sweet Sorghum, Nipa Sap**
Cellulosic Materials**, Grass**, Agricultural Waste Material, Forest Waste and

2nd Generation
Residues
3rd Generation Macroalgae
*existing; **under study

Table 24. Feedstock Sources for Bioethanol Production in the Philippines
Types Feedstock
1st Generation Coconut*
2nd Generation Jatropha, Used Vegetable Oil
3rd Generation Microalgae
*existing
As of 29 February 2024, there are 14 accredited bioethanol production plants with a total annual
rated capacity of 508 million liters per year (MLPY) and 13 accredited biodiesel production plants
with 639.33 MLPY. These are equivalent to about 62% of the E10 mandate and 263% of the B2
mandate.
Republic Act No. 9367 or the Biofuels Act of 2006 was implemented to increase the contribution
of biofuels in the country’s energy mix, reduce dependence on imported fossil-based fuels,
enhance the quality of the environment, and create opportunities for countryside socio-
economic development. The issuance of Department Circular Nos. DC 2011-02-0001 and DC
2009-02-0002 mandated the 10% bioethanol blend (E10) and the 2% biodiesel blend (B2) in 2011
and 2009, respectively.
Table 25. 2024-2026 Bioethanol Volume The National Biofuel Board (NBB)
Supply Requirement has approved Resolution Nos. 2023-
03 and 2023-04 series of 2023 last
Bioethanol 28 November 2023 to address the
Gasoline Bioethanol
Supply
Year Demand Blend inflationary pressures on the rising
Requirement
(million liters)* Target petroleum prices. The mandated
(ML)
E10 ethanol blend will be supported
10% 820 by a voluntary E20 blend, while the
2024 8,200
20%** - B2 biodiesel blend will be gradually
10% 882 increased from B2 to B3 in 2024, B4 in
2025 8,818
20%** - 2025, and B5 in 2026. Table 25 shows
10% 948 the Biodiesel and Bioethanol Supply
2026 9,483 requirements. These translate to a
20%** -
*Based on DOE-OIMB Actual Data (Average Growth Rate @ 7.5% for Gasoline)
guaranteed market for our ethanol
and biodiesel producers in the country.
For 2024, the current production capacity of our bioethanol plants is only 508 MLPY, while
the bioethanol requirement for the mandatory blend is 820 MLPY. We need an additional
302 MLPY to comply with the minimum required blend and more than that to cater to our
voluntary E20 blend participants.
For biodiesel, the current production capacity is 639.33 MLPY. This can cater to the mandatory
and voluntary blend requirements until 2026. However, a new biodiesel plant is needed
to comply with the biodiesel blend requirements starting 2027 with new issuances being
reviewed for the integration of higher blends.
Table 26. 2024-2026 Biodiesel Volume Supply
Diesel Demand Biodiesel Biodiesel Supply

Year
(million liters)* Blend Target Requirement (ML)
2% 243
2024 12,149
3%** 364
2025 12,813 4% 513
2026 13,514 5%** 676
*Based on DOE-OIMB Actual Data (Average Growth Rate @ 5.5% for Diesel)
**Mandatory
Sustainable Aviation Fuel
Energy
Renewable
DOE is considering the use of alternative fuels in the transport sector, particularly in the
aviation industry. Thus, the Department is collaborating closely with the country’s aviation
sector and international partners to decarbonize the commercial aviation industry with
sustainable aviation fuel (SAF). The DOE acknowledges international initiatives such as the
Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), established by
the International Civil Aviation Organization (ICAO), that offers a harmonized way to reduce
emissions from international aviation. CORSIA allows using SAF derived from biomass or waste
resources to minimize the carbon-offsetting requirements of airlines.
POWER DEVELOPMENT
ENERGY MIX 2022
61.6 MTOE
2022 Total Primary Energy
4%
HYDRO
INDIGENOUS 15%
GEOTHERMAL
49.4% 31%
(30.4 MTOE) COAL
13%
RE SHARE
Development
Power
BIOMASS
32.6%
(20.0 MTOE)
4%
NATURAL GAS 1%
NET OTHER RE
50.6% 32%
(31.1 MTOE) OIL
Source: PEP 2023 - 2050
The country’s Total Primary Energy Supply (TPES) breaks down the Energy Mix by Fuel Type. In 2022, the overall
energy supply amounted to 61.6 million tons of oil equivalent (MTOE). Notably, slightly over 49% (30.4 MTOE)
of the TPES emanated from domestic sources, underlining the country’s commitment to indigenous energy
production; while the remaining 51% (31.1 MTOE) was sourced from imports. The aggregate renewable energy
(RE) supply, including biofuels, reflected a share of 32.6% in the energy mix.
ON-GRID POWER CAPACITY
In 2023, the country recorded a total installed capacity of 28,291 MW and a dependable capacity of 24,654 MW,
or 87% of the installed capacity. As indicated in Table 27, coal comprises 43.85% of the energy mix, followed
by renewable energy with 29.75% share. Oil-based and natural gas contribute significantly, accounting for
13.21% and 13.19% shares respectively. The aggregate installed capacity from natural gas and renewable energy
resources amounts to 12,051 MW. The Energy Storage System has also increased from 156 MW in 2022 to 436
MW in 2023, a significant growth of 179% on its 2022 level.
Table 27. 2023 Grid-Connected Installed Capacity (MW)
Capacity (MW) Percent Share (%)

Fuel Type
Installed Dependable Installed Dependable
COAL Coal 12,406 11,335 43.9 46.0

43.85% Oil Based 3,737 2,796 13.2 11.3
12,406 MW
Diesel 2,320 1,951 8.2 7.9
INSTALLED CAPACITY
Oil Thermal 650 305 2.3 1.2
Gas Turbine 767 540 2.7 2.2
Natural Gas 3,732 3,281 13.2 13.3
Renewable Energy 8,417 7,242 29.7 29.4
Biomass 585 374 2.1 1.5
Biomass 577 371 2.0 1.5
RENEWABLE
Waste to Energy (WTE) 8 3 0.0 0.0
29.75%
8,417 MW Geothermal 1,952 1,708 6.9 6.9
INSTALLED CAPACITY Solar 1,653 1,249 5.8 5.1
Behind-the-Meter (BTM) 46 37 0.2 0.1
Ground-mounted 1,608 1,212 5.7 4.9
Hydro 3,799 3,499 13.4 14.2
Impounding Hydro 2,164 1,985 7.7 8.0
Pumped Hydro 736 720 2.6 2.9
OIL-BASED Run-of-River (ROR) 899 794 3.2 3.2
13.21% Wind 427 412 1.5 1.7
3,737 MW
Onshore Wind 427 412 1.5 1.7
INSTALLED CAPACITY
Off-shore Wind (OSW) 0 0 0.0 0.0
TOTAL 28,291 24,654 100.0 100.0
Energy Storage System (ESS) 436 436
Battery ESS 387 387
Hybrid
49 49
(Diesel-Battery System)
NATURAL GAS
Figures may vary slightly due to rounding off of decimal numbers
13.19% Source: DOE-Electric Power Industry Management Bureau, as of December 2023
3,732 MW
INSTALLED CAPACITY
WESM Registration
The country’s transmission system is consisting of three (3) main grids: Luzon, Visayas, and Mindanao. These
grids are closely monitored by the National Transmission Company (TransCo) and operated and maintained
by the National Grid Corporation of the Philippines (NGCP) under a 25-year concessionaire arrangement. This
ensures seamless power flow across regions and provides a conducive environment for power investments.
Table 28. Summary of WESM Registration
CATEGORY Luzon Visayas Mindanao Luz/Vis/Min Total
Generation Companies 114 49 42 4 209

Customers 91 42 43 1 177
Private Distribution Utilities 15 8 4 0 25
Electric Cooperatives 43 28 28 0 99
Directly Connected Customers 33 8 11 1 53
Ancillary Service Providers 18 15 7 2 42
Ancillary Service Buyers 0 0 0 1 1
Metering Service Providers 6 1 12 0 19
Total Participants 229 107 104 8 448
Source: Independent Electricity Market Operator of the Philippines (IEMOP), as of February 2024
The Wholesale Electricity Spot Market (WESM) serves as a centralized platform for buyers and sellers to engage
in the trading of electricity as a commodity. Prices within this market are determined by the actual demand
and supply of electricity. The establishment of WESM was mandated by Republic Act 9136, also known as the
“Electric Power Industry Reform Act (EPIRA) of 2001.”
Operated by the Independent Electricity Market Operator of the Philippines (IEMOP), under the governance of
the Electricity Market Corporation (PEMC), WESM facilitates transparent and efficient electricity trading. As of
February 2024, there have been 448 registered participants, as outlined in Table 29.
Table 29 . RCOA Registered Participants in the Retail Market
Summary of RCOA Registration
Registered Participants in the Retail Market

Membership Category
Q4 Jun 2013 vs
Jun-13
2022 Q4 2023
D > 1 MW 892 1,258 41.03%

Contestable
750 kW > D > 1 MW 429
Customers
500 kW > D > 750 MW 304
Total 892 1,991 123.21%
RES 19 40 110.53%
Development
Power
Supplier
LRES 13 15 15.38%
Total 32 55 71.88%
SOLAR 9 26 188.89%
RMSP 29 65 124.14%
Total 962 2,137 122.14%
Source: Philippine Electricity Market Corporation (PEMC), as of 31 December 2023
Retail competition and open access (RCOA) has seen significant participation since its inception in 2013. Initially,
the threshold was set at a monthly average peak demand of 1 MW but was later adjusted to 750 kW and 500
kW, aligning with the EPIRA vision of customer choice.
As of 31 December 2023, the total number of registered participants increased to 2,137, marking a 122% increase
compared to June 2013. This comprised 1,991 Contestable Customers (CCs), 55 suppliers, 26 Suppliers of Last
Resort (SOLR), and 65 Retail Market Service Providers (RMSP). Among the CCs, 1,258 fall within the 1 MW threshold
level, while 304 fall within the 500 kW to 1 MW range, and 429 fall within the 750 kW to 1 MW range. Regarding
the suppliers, 40 are Renewable Energy Suppliers (RES) and 15 are Large Renewable Energy Suppliers (LRES).
POWER SUPPLY AND DEMAND OUTLOOK
Using the Philippine Energy Plan (PEP) and Power Development Plan (PDP) 2023-2050, the DOE has developed
the Philippine Capacity Expansion Model (CEM) through the PLEXOS® software.
The PLEXOS® software is the DOE’s planning and simulation tool to determine the optimal capacity addition
and generation expansion for the power supply and demand outlook on the prescribed planning period.
The DOE has simulated three (3) scenario assumptions, outlining the future generation capacity expansion plan
to ensure a reliable, cost-effective, and sustainable power supply in the country, namely: Reference Scenario
(REF), Clean Energy Scenario 1 (CES 1) and Clean Energy Scenario 2 (CES2).
The resulting simulations are discussed as follows: Figure 19. Ref-Luzon Demand and Supply
Outlook (2023-2050)
1. Reference Scenario:
9%
a. Luzon. Under the Reference Scenario, 5,236
the Luzon grid will be requiring 61,035 MW

additional capacity by 2050 based on the 16%
Baseload
9,957
2023-2050 forecast in Figure 19. Further, 5,236
Mid Merit
MW will be required from baseload[1] plants,
9,957 MW from mid-merit[2] plants, and Peaking
75%
45,842 MW from peaking[3] plants. 45,842 MW
Figure 20. Ref-Visayas Demand and Supply

Outlook (2023-2050)
2%
726 b. Visayas. The Visayas grid will be requiring
43,479 MW additional capacity by 2050
based on the 2023-2050 forecast in Figure
Baseload
20. Further, 726 MW will be required from
baseload plants, 11,904 MW from mid-merit
27% Mid Merit
71% 11,904
plants, and 30,849 MW from peaking plants.
30,849 Peaking
Figure 21. Ref-Mindanao Demand and Supply

Outlook (2023-2050)
c. Mindanao. Lastly, the Mindanao grid will

be requiring 18,194 MW additional capacity
by 2050 based on the 2023-2050 forecast in
Figure 21. Further, 4,055 MW will be required
78% 22% Baseload
from baseload plants, 20 MW from mid-merit 14,119 4,055
plants, and 14,119 MW from peaking plants. Mid Merit
Peaking
0%
20
Figure 22. CES 1 - Luzon Demand and Supply

Outlook (2023-2050)
2. Clean Energy Scenario (CES) 1:

11%
9,792
8% a. Luzon. Under CES 1, the Luzon grid will be
6,509 requiring 84,753 MW additional capacity
Baseload
Mid Merit Figure 22. Further, 9,792 MW will be required
Peaking from baseload plants, 6,509 MW from mid-
81% merit plants, and 68,452 MW from peaking
68,452
plants. Coal power plants due for repurposing
are at 3,287 MW.
[1] Baseload Capacity Additions are derived from the total capacity of Coal, Biomass, Geothermal,
and Run-of-River Plants. Nuclear is also included under the Clean Energy Scenario Simulations.
[2] Mid-Merit Capacity Additions are derived from the total capacity of Natural Gas Power Plants
[3] Peaking Capacity Addition
Figure 23. CES 1 - Visayas Demand and Supply
Outlook (2023-2050)
3%
1,096
b. Visayas. The Visayas grid will be requiring
23. Further, 1,096 MW will be required from Baseload
baseload plants, 8,720 MW from mid-merit Mid Merit

27%
plants, and 22,483 MW from peaking plants. 70% 8,720
22,483 Peaking
Coal power plants due for repurposing are at
103 MW.
Figure 24. CES 1 - Mindanao Demand and

Supply Outlook (2023-2050)
c. Mindanao. Lastly, the Mindanao grid will
be requiring 12,629 MW additional capacity
20% Figure 24. Further, 2,560 MW will be required
2,560
from baseload plants, 760 MW from mid-
6% Baseload merit plants and 9,309 MW from peaking
760
Mid Merit plants. Coal power plants due for repurposing
Development
Power
74% are at 232 MW.
Peaking
9,309
Figure 25. CES 2 - Luzon Demand and Supply

Outlook (2023-2050)
3. Clean Energy Scenario (CES) 2:

9%
9,372
a. Luzon. Under CES 2, the Luzon grid will be 8%
requiring 105,137 MW additional capacity 8,629
Baseload
Figure 25. Further, 9,372 MW will be required Mid Merit
from baseload plants, 8,629 MW from mid- Peaking
merit plants, and 87,136 MW from peaking 83%
plants. Coal power plants due for repurposing 87,136
are at 4,059 MW.
Figure 26. CES 2 - Visayas Demand and Supply

Outlook (2023-2050)
5% b. Visayas. The Visayas grid will be requiring

1,096
26. Further, 1,096 MW will be required from
Baseload
baseload plants, 8,688 MW from mid-merit
Mid Merit plants, and 11,108 MW from peaking plants.
53% 42%
11,108 8,688 Peaking Coal power plants due for repurposing are at
513 MW.
[1] Baseload Capacity Additions are derived from the total capacity of Coal, Biomass, Geothermal,
and Run-of-River Plants. Nuclear is also included under the Clean Energy Scenario Simulations.
[2] Mid-Merit Capacity Additions are derived from the total capacity of Natural Gas Power Plants
c. Mindanao. Lastly, the Mindanao grid will Figure 27. CES 2 - Mindanao Demand and
be requiring 6,904 MW additional capacity Supply Outlook (2023-2050)
Figure 27. Further, 2,560 MW will be required
from baseload plants, 1,540 MW from mid- 20%
merit plants and 2,804 MW from peaking 2,560
plants. Coal power plants due for repurposing Baseload

6%
are at 232 MW. 760 Mid Merit
Peaking
74%
9,309
[1] Baseload Capacity Additions are derived from the total capacity of
Coal, Biomass, Geothermal, and Run-of-River Plants. Nuclear is also
included under the Clean Energy Scenario Simulations.
[2] Mid-Merit Capacity Additions are derived from the total capacity of
Natural Gas Power Plants
PRIVATE SECTOR INITIATED PROJECTS
COMMITTED POWER PROJECTS
The DOE publishes monthly on the DOE website the list of committed and indicative[4] power projects in
Luzon, Visayas, and Mindanao grids based on the monthly accomplishment report (MAR) submission of the
power generators. Given the total number of additional capacities required by the Philippines by 2050 and
considering the various scenarios discussed in the preceding section, the consolidated information provides a
comprehensive overview of the current line-up of power projects that are essential to the development of the
generation sector, aimed to meet the increasing demand for electricity of the country.
As of 31 December 2023 (see Table 30), a total of 15,890 MW committed power projects[5] and an additional
1,984 MW BESS projects are expected to be operational from 2024 to 2030, including those with commercial
operation dates that are yet to be determined by the power generators.
With the coal moratorium advisory[6] enforced by the DOE effective on 27 October 2020, the number of combined
committed and indicative coal power projects has dropped by 63.7% from 11,289 MW in October 2020 to 4,094
MW in December 2023.
Renewable Energy’s (RE) contribution is expected at 45.5% (7,233 MW), followed by natural gas at 38.2% (6,070
MW), and oil-fired power plants’ share of 1.1% (182 MW) of the total expected capacity.
Table 30: Annual Summary of Committed Power Projects in the Philippines

Annual Summary of Target Commercial Operation (MW)
Plant Type 2024 2025 2026 2027 2028 2030 TBD TOTAL
COAL 600.00 350.00 485.00 270.00 700.00 - - 2,405.00

OIL-BASED 181.91 - - - - - - 181.91
NATURAL GAS 1,320.00 - - - 1,100.00 - 3,650.00 6,070.00
RENEWABLE ENERGY 2,167.135 2,614.84 1,838.65 102.00 - 500.00 10.23 7,232.85
GEOTHERMAL 81.22 - - 42.00 - - - 123.22
HYDROPOWER 102.92 75.30 - 60.00 - 500.00 10.23 748.45
BIOMASS 75.28 - - - - - - 75.28
SOLAR 1,747.71 2,265.94 1,038.66 - - - - 5,052.32
WIND 160.00 273.60 799.98 - - - - 1,233.58
TOTAL 4,269.05 2,964.84 2,323.65 372.00 1,800.00 500.00 3,660.23 15,889.77
ENERGY STORAGE SYSTEM (ESS) 614.00 30.00 - - - - 1,340.00 1,984.00
BATTERY ESS 614.00 30.00 - - - - 1,340.00 1,984.00

Source: DOE’s Posting of the List of Private Sector Initiated Power Projects, as of 31 December 2023
Retrieved through: https://www.doe.gov.ph/private-sector-initiated-power-projects
INDICATIVE POWER PROJECTS
Meanwhile, the indicative projects are projected to provide 69,455 MW and 1,950 MW BESS additional capacity
for the country from 2024 to 2037, including those with no definite target commercial operation dates. About
2.4% (1,689 MW) will come from the coal power projects while natural gas projects are expected to contribute
12.5% (8,648 MW) and oil-based projects at 0.1% (60 MW) of the total share.
In pursuit of cleaner fuel in the energy mix, the RE projects will have the highest contribution at 85% (59,058MW)
of the total installed capacity by 2037, as depicted in Table 31. Among the RE technologies, wind technology
is expected to dominate the indicative projects with 61.3% (42,547MW), followed by solar at 12.5% (8,706MW),
hydroelectric at 10.5% (7,316MW), geothermal at 0.6% (413MW) and biomass at 0.1% (76MW).
Table 31. Annual Summary of Indicative Power Projects in the Philippines

Annual Summary of Target Commercial Operation (MW)
Plant Type 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 TBD TOTAL
COAL - - - - 639.00 - - - - - - 1,050.00 1,689.00
OIL-BASED - 60.00 - - - - - - - - - - 60.00
NATURAL GAS - - - 1,650.00 - 2,810.00 1,800.00 1,128.00 - - - 1,260.00 8,648.00
RENEWABLE ENERGY 14.40 3,733.02 3,433.48 4,293.94 8,506.17 4,667.60 9,619.00 15,817.50 5,103.00 2,025.50 1,794.76 50.00 59,058.38
GEOTHERMAL - - 68.00 - 105.00 70.00 - - - 120.00 - 50.00 413.00
HYDROPOWER - - - 123.50 2,823.86 310.00 1,164.00 2,850.00 30.00 - 14.76 - 7,316.12
BIOMASS 14.40 12.00 - 50.00 - - - - - - - - 76.40
SOLAR - 3,047.67 2,881.98 2,272.44 400.96 103.00 - - - - - - 8,706.06
Development
Power
WIND - 673.35 483.50 1,848.00 5,176.35 4,184.60 8,455.00 12,967.50 5,073.00 1,905.50 1,780.00 - 42,546.80
TOTAL 14.40 3,793.02 3,433.48 5,943.94 9,145.17 7,477.60 11,419.00 16,945.50 5,103.00 2,025.50 1,794.76 2,360.00 69,455.38
ENERGY STORAGE
- 600.00 516.00 404.00 147.50 - - - - - - 282.00 1,949.50
SYSTEM (ESS)
BATTERY ESS - 600.00 516.00 404.00 147.50 - - - - - - 282.00 1,949.50
Indicative Projects refers to projects that are in the pre-development stage, secured its Clearance to Undertake a System Impact Study with the NGCP
and are consistently submitting their Monthly Accomplishment Report to the DOE
TBD - To Be Determined
Source: DOE-Electric Power Industry Management Bureau, as of 31 December 2023
PRIORITY AREAS
Transmission is vital for the electricity system, connecting power generation to distribution, much like a main
highway transporting high-voltage electricity. However, in recent years, the country’s electricity grid faced
perennial challenges that affected the efficiency and overall performance of the transmission system such as
various right–of-way (ROW) acquisitions, prolonged delays in conducting System Impact Study (SIS), which
considerably deferred the implementation and completion of critical transmission projects.
To address these challenges, the government is implementing policy reforms to improve transmission system
planning, strengthening, and regulatory support.
Supporting government initiatives, the NGCP, as the Transmission Network Provider (TNP) and System Operator
(SO) of the nation’s main electrical grid, is tasked with annually updating the Transmission Development Plan
(TDP) in accordance with Rule 6, Section 10 of the Implementing Rules and Regulations (IRR) of RA 9136, or the
EPIRA of 2001.
On December 29, 2022, the Department of Energy (DOE) approved and adopted the NGCP’s TDP 2022- 2040.
This plan serves as the primary guide for transmission development, addressing the growing electricity
demands to support new power generation facilities. The TDP is aimed at achieving the Clean Energy Scenario
(CES) outlined in the Philippine Energy Plan (PEP) 2020-2040. It aligns with the broader objectives of the power
sector’s transmission roadmap.
Instituting due diligence on power grid operations through performance assessment and audit
The DOE issued Department Order No. DO2023-06-0018, titled “Creation of the Performance Assessment and
Audit Team for the Operations of the Transmission Network Provider and System Operator (PAAT-TNPSO)
and Defining its Responsibilities,” on 08 June 2023. This order aims to evaluate the overall performance and
compliance of the NGCP with its obligations under the Philippine Grid Code.
Additionally, this initiative will facilitate the assessment of the NGCP’s performance according to its obligations
under the concession agreement. By conducting performance assessments and audits (PAA) transparently and
promptly, this initiative will provide a basis for improving operations and ensuring compliance with the TDP.
Furthermore, this effort will align with industry best practices and support the Energy Regulatory Commission
(ERC) in enforcing an incentive and penalty system to hold the NGCP accountable for ensuring grid security
and reliability.
Advocating higher policy support through a proposed Executive Order (EO governing the
Philippine Transmission Sector)
Alongside efforts to integrate power grids and connect off-grid areas, DOE is pursuing another initiative to
address current challenges. This initiative involves proposing two executive orders (EOs) aimed at ensuring the
timely implementation of transmission projects and promoting efficient operation of the transmission system.
The first EO will focus on establishing transparency of NGCP in the implementation of projects of the generation
companies. It will also encourage the interconnection of power plants with distribution systems in cases where
transmission facilities are lacking or insufficient.
The second EO aims to expedite critical and priority transmission projects by facilitating their implementation
through TransCo or other designated agencies. This measure will streamline coordination and cooperation
among stakeholders, ultimately ensuring a secure, reliable, and efficient transmission system throughout the
country.
Smart and Green Grid Plan (SGGP)
The Philippines is poised to significantly transform its energy landscape with ambitious Renewable Energy (RE)
targets set for 2024 to 2040. To facilitate the integration and efficient management of the anticipated surge
in RE capacity, the Smart and Green Grid Plan (SGGP) was conceived. This plan is strategically designed to
establish a robust policy framework and mechanisms for the timely implementation of transmission projects
and efficient transmission system operation.
The SGGP aims to achieve the following objectives:

• Establish a policy and mechanism to address the timely implementation of transmission projects and
efficient operation of the transmission system.
• Create a framework to determine the level of completion of Transmission Development Plan projects
and the overall performance of electric power industry stakeholders toward a holistic and comprehensive
development of the country’s power system.
Investors are encouraged to explore opportunities in smart grid technologies, transmission infrastructure, and
advanced monitoring solutions to actively contribute to the realization of the SGGP objectives.
Overall, the Average Annual Compounded Growth Rate (AACGR) is at 3.91% from 2006 to 2020.
Luzon Grid demonstrated resilience and adaptability from 2006 to 2020 with its AACGR at 3.66%. The year 2020
presented unique challenges as Luzon’s System Peak Demand (SPD) declined 2.12% (241 MW). This can be
attributed to the implementation of community quarantine measures from March 2020, which affected load
centers such as Metro Manila, Central Luzon, and CALABARZON. It led to limited operations of establishments
and temporary closure of significant commercial, manufacturing, and industrial entities. It also occurred during
summer which traditionally had peak electricity demand over the past decade.
Meanwhile, the aggregate demand in Visayas Grid posted an AACGR of 5.64% for 2006-2020. Similarly, a
decrease of 1.03% (23 MW) was recorded during the onset of COVID-19 pandemic. Load centers in Cebu, Iloilo,
and Bacolod City faced longer periods of ECQ compared to other areas. This prolonged ban impacted demand
from large distribution companies within the region from April to December 2020, compared to the levels
recorded in the same period in 2019.
Mindanao had an impressive AACGR of 6.06%, but faced similar demand challenges in 2020 with a 1.76% (35
MW) decrease in SPD. Davao, the largest load center in Mindanao, underwent ECQ and GCQ in the end of 2020.
As a result, distribution utilities in Mindanao had a decreased demand from April to December 2020 compared
to the same period in 2019.
Recommended Power Plant Connection Points
9
1
As a guide for prospective energy investors, small 2
areas are identified to connect new power plants 10

3
not needing significant connectivity reinforcement.

However, these recommended connectivity points 11
should be viewed from a transmission system 4
perspective and based on existing communication

capabilities. Other factors for non-site-specific 5
12
plants were not considered such as fuel availability,
6
site topography and geology, resource accessibility, 13 7
land availability, water supply for cooling and other 14 8
purposes, security considerations, and environmental 15

16
and social impacts. 17
18
However, in some areas where generation is possible, 19
existing transmission centers may lack the capacity

20
to accommodate large-scale generation additions.
21
In such cases, the development of new transmission
22
infrastructure becomes imperative to facilitate the
integration of new, high-capacity power plants.
Figure 28. Recommended Power Plant
Connection Points (Luzon)
Development
Power
1. Pudtol 6. Baler 11. Sagada 16. Porac 20. Iriga
230 kV 230 kV 230 kV 230 kV 230 kV
(100 MW) (200 MW) (300 MW) (200 MW) (100 MW)
12. Kadampat
2. Kabugao 7. Cabanatuan 230 kV 17. Baras 21. Precentacion
230 kV 230 kV (300 MW) 500 kV 230 kV
(500 MW) (100 MW) 13. Capas (1,000 MW) (300 MW)
3. Kalinga 230 kV
230kV 8. San Antonio (100 MW) 18. Lumban 22. Abuyog
(500 MW) 230 kV 230 kV 230 kV
(600 MW) 14. Palauig (300 MW) (100 MW)
4. Santiago 9. Sanchez Mira 230 kV
230 kV 230 kV (1,200 MW) 19. Tagkawayan
(300 MW) (100 MW) 15. Castillejos 230 kV 2020-2030
230 kV (1,200 MW)
5. Dinadiawan 10. San Esteban (600 MW) 2031-2040
230 kV 230 kV
(200 MW) (300 MV)
Figure 29. Recommended Power Plant Connection 1. Calbayog Palo 15. Pusok
Points (Visayas) 138 kV 230 kV 230 kV
(300 MW) (300 MW) (600 MW)
1
2. San Isidro 8. Isabel 16. Dumaguete
30 2
138 kV 138 kV 230 kV
29 3
(100 MW) (200 MW) (200 MW)
28
4
27
3. Catarman 9. Ormoc 17. Bacolod
26
5 138 kV 138 kV 230 kV
25
6 (200 MW) (100 MW) (600 MW)
24 31
4. Paranas 10. Cordova 18. Dumanjug
23 7
138 kV 230 kV 230 kV
22 8
(200 MW) (300 MV) (300 MW) *orange
21 9
20 5. Tabango 11. Maasin Dumanjug

10 230 kV 138 kV 138 kV
11 (300 MW) (100 MW) (300 MW)
19 12 12. Ubay
18 6. Babatngon (100 MW) 19. Kabankalan
13
230 kV 138 kV
17 14 (300 MW) 13. Corella (100 MW)
16 (100 MW)
15 7. Palo 20. Granada
138 kV 14. Bool 230 kV
(100 MW) 138 kV (900 MW)
(300 MW)
21. Compostela Laray 24. Daanbantyan 27. Cadiz 30. Jaro
230 kV 138kV 230 kV 230 kV 230 kV
(300 MW) (100 MW) (300 MW) (300 MW) (600 MW)
Compostela 22. Magdugo 25. Unidos 28. Nivel Hills 31. Borongan
138 kV 230 kV 230 kV 230 kV 138kV
(100 MW) (300 MW) (600 MW) (600 MW) (100 MW)
Laray 23. Iloilo 26. Kalibo 29. Tigbauan

2020-2030
138 kV 138 kV 138 kV 138 kV
(300 MW) (300 MW) (300 MW) (100 MW) 2031-2040
Figure 30. Recommended Power Plant Connection

Points (Mindanao)
1. Placer 8. Bunawan
138 kV 230 kV
(150 MW) (300 MW)
1 2. Laguindingan 9. Mati
230 kV 138 kV
(300 MW) (150 MW)
13 2
3. Villanueva 10. Toril
3
138 kV 230 kV
4 (400 MW) (300 MV)
4. San Francisco 11. Culaman

5
138 kV 230 kV
6 (150 MW) (300 MW)
5. Bislig 12. Sultan Kudarat

7
138 kV 138 kV
8 (300 MW) (150 MW)
9
6. Manolo Fortich 13. Naga Min
10 138 kV 138 kV
11 (300 MW) (300 MW)
12
7. Kabacan
138 kV Source: 2022-2040
(300 MW) Transmission Develop-
ment Plan
Battery Energy Storage System
In August 2019, the Department of Energy (DOE) issued Department Circular No. DC2019-08-0012, titled,
“Providing a Framework for Energy Storage System in the Electric Power Industry.” This circular established
a policy on the operation, connection, and application of Energy Storage Systems (ESS), with a keen focus on
their role in enhancing the reliability and efficiency of the electric power industry.
Battery Energy Storage System (BESS) takes center stage as a pioneering technology in the country with
versatile applications in the transmission system. BESS not only provides ancillary services, but also facilitates
transmission facility upgrades deferment and alleviates transmission congestion.
As Variable Renewable Energy (VRE) sources become integral to the transmission system, ESS emerges as
a crucial technology for managing the intermittent operation of VRE-generating plants, ensuring system
stability. In line with the proposed Smart Grid Roadmap, ESS stands out as a key element in the journey towards
comprehensive power system modernization.
Strategically connecting BESS to appropriate nodes in the system offers a unique advantage—the potential
to defer the need for additional transmission facility upgrades. By supplying peak demand through BESS, it
becomes a powerful tool in mitigating or eliminating transmission congestion, ensuring thermal and voltage
stability even during periods of heightened power demand.
In conclusion, the integration of Battery Energy Storage System (BESS) marks a paradigm shift in power system
dynamics. BESS emerges as a cornerstone technology in the pursuit of a resilient, modernized power system.
Thus, the power of BESS must be embraced to unlock a future where stability, sustainability, and efficiency
coexist harmoniously in the energy landscape.
NGCP’s recommended BESS capacities and sites
Embarking on a path toward a more resilient and efficient power system, the recommended BESS capacities
and sites have been determined through a comprehensive methodology. Rooted in load flow analyses, the
focus was on establishing the maximum capacity each site can seamlessly accommodate during the charging
and discharging states of BESS, while maintaining a unity power factor.
The system simulations considered various scenarios, with a spotlight on the base case peak demand and worst-
generation dispatch. These simulations were instrumental in gauging the total power flowing to connection
points and testing the available capacity of NGCP substations/facilities.
Table 32. NGCP’s Recommended BESS Capacities & Sites
Recommended Recommended BESS

Voltage Substations Voltage Level
Substations BESS Capacity Capacity (MW)
Level
(MW)
Visayas Grid
Luzon Grid
Kabankalan 138kV 10
Masinloc 69kV 20
Ormoc 69kV 20
Daraga 69kV 40
Samabaon 69kV 10
Laoag 69kV 40
Sta. Barbara 138kV 10
San Rafael 69kV 20
Compostela 230kV 20
Labo 69kV 20
Total Capacity 70
Mexico 69kV 20
San Manuel 69kV 20
Development
Power
Bay 69kV 20
Recommended BESS
Labrador 69kV 20 Substations Voltage Level
Capacity (MW)
Lamao 230kV 30
Mindanao Grid
Lumban 69kV 40
Villanueva 138kV 10
Total Davao 69kV 20
290
Capacity
Maco 69kV 20
Kibawe 69kV 20
Source: 2022-2040 Transmission development Plan
Butuan 69kV 20
Total Capacity 90
ENERGY INVESTMENT REQUIREMENTS
Table 33. Total Investment Requirements for Power Generation Projects

Capacity Addition, in MW Investment Cost (PhP Billion @2022 Prices)
Technology 2023-2028 2029-2050 2023-2028 2029-2050
REF CES 1 CES 2 REF CES 1 CES 2 REF CES 1 CES 2 REF CES 1 CES 2
Coal 2,305 2,305 2,305 - - - 350.55 334.38 334.38 - - -
Natural Gas 2,413 2,413 2,413 19,468 13,576 16,444 253.42 253.42 253.42 1,447.04 977.32 1,201.88
Oil-based 20 20 20 - - - 2.18 2.18 2.18 - - -

Other
- - - - 4,800 4,800 - - - - 1,738.60 1,738.60
Technologies
Renewables 13,791 13,458 14,919 84,712 93,110 92,033 928.13 1,197.25 1,291.68 5,526.23 6,392.23 9,441.83
Biomass 42 122 122 50 16 16 5.27 20.37 20.37 2.33 4.88 4.88
Geothermal 425 425 425 930 580 580 143.62 143.62 143.62 271.85 172.56 169.08
Solar 9,328 6,231 6,231 45,620 46,934 27,890 500.80 340.59 340.59 1,790.70 1,834.40 1,101.05
Hydro-
295 770 770 9,970 6,030 5,410 41.82 111.05 111.05 1,473.08 849.67 759.85
power
Onshore
3,700 3,910 5,371 21,342 22,050 10,037 236.62 252.26 346.69 1,023.49 1,047.54 482.91
Wind
Offshore
- 2,000 2,000 6,800 17,500 48,100 - 329.37 329.37 964.78 2,483.18 6,924.06
Wind
BESS* 2,080 2,080 2,080 1,544 19,779 22,426 63.60 63.60 63.60 56.35 744.05 899.88
Total 18,528 18,195 19,656 104,180 111,486 113,277 1,597.87 1,850.82 1,945.26 7,029.62 9,852.20 13,282.18
*For accounting purposes, BESS are not included in the total capacity additions.
Investment and Employment Opportunities
The energy sector transition outlined in the CES aims for a strong power system driven by clean, low-carbon
technologies. Achieving this goal requires significant investments in the electric power industry to expand and
make the power supply more eco-friendly.
Increasing power generation capacity to ensure a stable and sustainable supply requires adding more capacity,
as shown in the outlook scenarios. During the Marcos, Jr. Administration, it expects to add 18.5 GW, 18.2 GW and
19.7 GW in REF, CES 1, and CES 2, respectively. These projects will require investments of PhP 1.6 trillion for REF,
PhP 1.9 trillion for CES 1, and PhP 2.0 trillion for CES 2.
Looking ahead to 2050, REF aims to add a total capacity of 104.2 GW, needing PhP 7.0 trillion in private
investments. Meanwhile, CES 1 and CES 2, focusing on renewables, aim for capacity additions of 111.5 GW and
113.3 GW, respectively. These ambitious targets, especially driven by offshore wind potential, require investments
of PhP 9.9 trillion for CES 1 and PhP 13.3 trillion for CES 2. Compared to REF, investments in CES 1 and CES 2 are
significantly higher, mainly due to their focus on renewable energy technologies.
DOWNSTREAM OIL AND NATURAL GAS
DOWNSTREAM OIL INDUSTRY
As the Philippines remains oil import dependent, it is the Department of Energy’s (DOE) mandate to secure the
supply of sufficient oil and petroleum products, ensure the product’s quality in accordance with the Philippine
National Standards (PNS), and oversee a fair and competitive market for oil industry players.
The passage of Republic Act (R.A.) 8479, known as the “Downstream Oil Industry Deregulation Act of 1998”,
liberated and deregulated the country’s downstream oil industry to ensure a truly competitive market and
an adequate and continuous supply of clean and high-quality petroleum products. To attain these goals, the
government continues to encourage the entry of new investors in the downstream oil industry.
Projections from the Philippine Energy Plan 2023-2050 Figure 31. PEP 2023-2050 Energy Outlook under
Energy Outlook under the Reference (REF) Scenario the Reference Scenario (REF)
are showing that oil remains the country’s main energy
source as it continues to sustain a robust demand from
various end-use sectors, particularly transportation.
Oil and renewable energy are projected to contribute

above 30% in the energy mix during the three milestone
years. Specifically, it is projected that oil will contribute
32% by 2030 and 2040, and 31% by 2050. Renewable
energy is expected to have a significant contribution of
34% by 2030, 37% by 2040, and 35% by 2050.
Coal is seen to have a declining fuel share from 2030 to

2050. The projection is that it will have a share of 28%
by 2030, gradually declining to 21% by 2040, and down
to 16% by 2050. Meanwhile, natural gas is projected to 2030 2040 2050
have an opposite trend, with an upward contribution
from 6% by 2030, 10% by 2040, and up to 18% by 2050. Coal Natural Gas Oil Renewable Energy
and Natural Gas

Downstream Oil
Retail Marketing Business
The number of operating liquid fuel retail outlets (LFROs) or Table 34. Number of LFROs
gasoline stations increased by 10.4% from 10,802 in 2021 to 11,923
in 2022. The constant growth in retail facilities can be attributed to Region 2021 2022 % Increase
the government’s modernization policy including the services as
Luzon 5,802 6,282 8.027%
prescribed under Department Circular (DC) No. 2017-11-0011 or the
“Revised Retail Rules.” NCR 1,032 1,056 2.33%
Visayas 2,423 2,780 14.73%

Among the country’s major islands, Luzon remains with the
greatest share in the number of LFROs in 2022 with 53% (6,282 Mindanao 2,577 2,861 11.02%
LFROs). Mindanao continued to set the second highest share
Total 10,802 11,923 10.38%
in LFROs with 24% (2,861), while Visayas followed closely with
23% (2,780).
Table 35. Number of LPG Establishments
As of December 2022, the country has a total of 12,014 LPG
Region 2021 2022 % Increase
establishments. Luzon remains to have the greatest number of
liquefied petroleum gas (LPG) establishments in 2022. The total Luzon 4,583 6,864 49.77%
LPG establishments increased from 9,722 in 2021 to 12,014 LPG
NCR 1,237 1,910 54.41%
establishments in 2022 posting a 23.58% increase.
Visayas 2,746 2,751 0.18%
Mindanao 2,393 2,399 0.25%
Total 9,722 12,014 23.58%

Republic Act 11592, also called the “LPG Industry Regulation Act”, together with its implementing guidelines
DOE Department Circular No. 2022-11-0037 titled, “Guidelines on the Registration and Issuance of License
to Operate to Qualified DOE-Regulated LPG Industry Participants and Penalizing Certain Prohibited Acts”,
requires LPG Industry participants to register and acquire a License to Operate (LTO) prior to commercial
operation.
The LTO replaced the Standards Compliance Certificate (SCC), while the Certificate of Registration (COR) shall
be issued prior to construction of LPG facilities, registration of trademark or trade name, and other activities
requiring registration as:
• LPG Refiner • Dealer
• Importer • Retailer
• Bulk Distributor • Independent Hauler of LPG in cylinder and/or
• Terminal or Depot Owner/Operator cartridge
• Independent Hauler for Bulk LPG • Auto-LPG dispensing station owner/operator
• Trademark Owner or Marketer and their • Centralized LPG piping system owner/operator
respective establishments or facilities • Bulk Consumer
• Refiller
Storage Facility Figure 32. Liquid Petroleum Depot

(Phoenix Petroleum’s Depot in Calaca, Batangas)
Supply security entails having adequate storage facilities that
will maintain the supply inventory needed for various economic
activities.
The aggregated oil facilities in 2022 (e.g., depots, import

terminals and refinery) provides a total storage capacity of
41,634 thousand barrels (MB). The sole remaining refinery,
Petron’s Bataan Refinery, has a storage capacity of 9,609
MB, which includes crude, intermediate stocks, and finished
petroleum products. The 92 oil depots are distribution facilities
comprise the nation’s existing downstream oil storage facilities.
The aggregated storage capacity of depots, import terminals,
and refinery in 2022 is 41,634 thousand barrels (MB). The sole
remaining refinery, Petron’s Bataan Refinery, has a storage
capacity of 9,609 MB, whose production output includes gasoline, diesel oil, kerosene, AV Turbo, fuel oil, and
other products. The 92 oil depots are distribution facilities that comprise the nation’s existing downstream oil
storage facilities.
Table 36. Existing Downstream Oil Facilities
Facility Type No. of Facilities Capacities, MB Percent Share The storage capacity and sales in Visayas
is led by Region VII (Central Visayas) which
Depots 92 5,422 13.02
can be correlated to the various economic
Major 34 2,928 7.03 development-related activities present in
Others 56 2,177 5.23 the provinces of Cebu, Bohol, and Negros
Oriental.
End-User 2 317 0.76
Import Terminals 58 26,602 63.90

On 22 March 2024, Seaoil opened its 13th
Major 9 8,986 21.58 Bulk Terminal in Zamboanga del Sur with
Others 48 15,723 37.77 maximum storage capacity of 30.5 million
liters of fuel. It is strategically located along
End-User 1 1,893 4.55
with three other terminals in Mindanao at
Refinery 1 9,609 23.08 Santa Cruz, Davao del Sur, General Santos,
Petron - Limay, South Cotabato, and Irasan, Zamboanga.
1 9,609 23..08
Bataan
Grand Total 151 41,634 100.00

Source: DOE-Oil Industry Management Bureau, as of December 2022
Table 37. Depot/Storage Facility and Sales per Region
Storage Capacity, Storage Capacity Share by

Region Sales, MB
MB Share (%) Region (%)
I. Refinery
Region III 9,610.14 23.17
Total 9,610.14
II. Bulk Plants
NCR 584.10 1.41 36,824.72 23.85
Region I 1,070.41 2.58 5,566.59 3.60
Region II - - 3,955.62 2.56
Region III 7,638.77 18.41 26,430.49 17.12
Region IV-A 12,923.25 31.15 28,850.87 18.68
Region IV-B 262.70 0.63 2,152.88 1.40
Region V 297.43 0.72 4,603.91 2.98
CAR 0.25 0.00 1,128.59 0.73
Total Luzon 22,776.91 109,513.67
Region VI 1,132.0 2.73 7,090.37 4.60
Region VII 1,709.77 4.12 9,678.62 6.27
Region VIII 519.38 1.25 3,063.64 1.98
Total Visayas 3,361.15 19,832.63
Region IX 641.21 1.55 4,265.33 2.76
Region X 2,746.41 6.62 7,593.77 4.92
Region XI 1,804.65 4.35 7,011.44 4.54
Region XII 393.99 0.95 3,538.11 2.29
CARAGA 127.09 0.31 1,998.28 1.29
ARMM 22.41 0.05 669.01 0.43
and Natural Gas

Downstream Oil
Total Mindanao 5,735.76 25,075.94
Total Bulk Plants 31,873.82
Grand Total 41,483.96 100 154,422.24 100

Source: DOE-Oil Industry Management Bureau, as of December 2022
Base Oils and Lubricating Products
The lubricating product industry in the Philippines is a very competitive business that has continuously grown.
DOE provided Department Circular 2021-09-0029 titled, “Guidelines on Notices and Reportorial Requirements
Pursuant to the Downstream Oil Industry Deregulation Act” which applies to players currently limited to three
categories:
• Marketers - entities that import lubricating oils and greases and sell finished products locally. They are
direct importers and distributors of finished lubricating products.
• Blenders - mostly oil companies that import base oil and blend it with additives to produce lubricating oils
and greases locally.
• Own Users - entities such as private industrial/manufacturing plants that import lubricating oils and
greases for their own use/consumption.
Unfortunately, business in lubricating products still depend on importation of either raw materials or finished
products. Base oils, especially the major types were previously produced locally but for decades, all types of
base oils are imported. Few blenders exist but independent marketers and own users comprise majority of the
industry players operating in different parts of the Philippines.
Oil Refining
In recent years, the refining subsector Figure 33. Petron Refinery in Limay, Bataan
saw a decline in the number of
industry participants. Prior to the
promulgation of the Oil Deregulation
Law, the country had three refineries
owned by Petron, Shell, and Caltex.
To date, only Petron’s refinery stands
as both Caltex and Shell converted
and transformed their refineries into
import terminals. On the other hand,
Pilipinas Shell, a subsidiary of Royal
Dutch Shell, permanently shut down
its Tabangao Refinery in Batangas
City, Philippines, and converted it to a
full import terminal. The company said
that the decision will help to streamline
its asset portfolio and boost its cost
and supply chain competitiveness.
Aggregate refinery production output from Petron’s Bataan Refinery increased by 52.0% equivalent to 5.6
MTOE (43.8 million barrels (MMB)) in 2022 compared to 2021 which was at 3.7 MTOE (28.8 MMB). The significant
uptrend is associated with high demand for Petron’s finished petroleum products due to the resumption of
economic activities and improved mobility after stringent travel restrictions were eased.
The country’s lone refinery located in Limay, Bataan is supplying around 40% of total fuel requirements with
its 180,000 barrel-per-day (bpd) capacity. The refinery was able to avoid maintenance downtime in 2022 due to
enhancements and optimizations implemented by Petron. It took advantage of favorable refining cracks and
boosted its over-all net income for the same period.
PETROLEUM PRODUCTS AND FACILITIES STANDARDS
Standards Development. Anchored Figure 34. On site screening of petroleum samples using DOE’s
on the Philippine Clean Air Act of portable testing equipment
1999, the Biofuels Act of 2006, and the
Downstream Oil Industry Deregulation
Act of 1998, the Philippine National
Standards (PNS) for petroleum
products and facilities guarantees
consumer welfare and protection by
ensuring that public transport sector,
and manufacturers are provided
access to products and facilities with
the highest quality and safety.
Supervision and Monitoring. DOE is

carefully monitoring the compliance
of all downstream oil participants through sampling of liquid petroleum products (LPP) in terminals/depots and
LFROs and various inspections nationwide. Onsite inspection activities are consistently performed to confirm
compliance of industry participants with the PNS.
In 2022, DOE together with Department of Trade and Industry (DTI) issued Joint Department Circular (JDC)
2022-11-0002 on the LPG Cylinder Exchange, Swapping, and Improvement Programs. The circular aims to
ensure that only safe cylinders are circulated among the consuming public to prevent the occurrence of LPG-
related accidents.
Communication Initiatives. The DOE consistently conducts information, education, and communication (IEC)
activities which cover topics concerning the safe handling of petroleum products, the role of Local Government
Units, and investment opportunities for prospective DOI Players and other government agencies.
Policy Advocacy. The DOE crafted several circulars to support the passage of RA 11592 or the “LPG Industry
Regulation Act of 2021” and regulate the domestic LPG industry and ensure consumer protection against
malpractices. From 2021 to 2023, DOE promulgated the following policies:
• DC 2022-11-003728 – Guidelines on the Registration and Issuance of License to Operate to Qualified DOE-
Regulated LPG Industry Participants and Penalizing Certain Prohibited Act
• DC 2022-11-003329 – Rules of Procedure for Administrative Cases in the Downstream Oil Industry
• Implementing Rules and Regulations (IRR) of Republic Act No. 11592.
• JDC 2022-11-000231 – LPG Cylinder Exchange, Swapping, and Improvement Programs.
• DC 2021-10-003532 – Revised Circular for Impounding & Disposal of Philippine Downstream Oil Industry
Confiscated Items.
• DC 2023-08-002533 – Guidelines on the Recognition of Training Organizations for Qualified Service Persons
Of DOE-Regulated Liquified Petroleum Gas (LPG) Industry Participants.
Information Exchange and Data Reconciliation Initiatives. Memorandum of Agreement (MOA) was executed
and signed between the DOE, the Bureau of Customs (BOC), and the Bureau of Internal Revenue (BIR) on 27
May 2021 to enhance information exchange among the three agencies regarding importation of petroleum
products. Inspection activities will be conducted by the DOE and BOC for LFROs as part of the coordinated
efforts to eradicate petroleum products smuggling and encourage proper tax payments.
LEGISLATIVE AGENDA, PROJECTS, AND PROGRAMS
Voluntary 20% ethanol blend for gasoline products. This is a price mitigation measure because ethanol is
cheaper than the price of gasoline. Additionally, DOE plans to increase the CME blend in diesel from 2% blend
to 3% in 2024, 4% in 2025, and B5 in 2026 to promote cleaner air and increase the benefits provided to coconut
farmers.
Fuel Subsidy Project. To mitigate the adverse effects of increasing oil prices to vulnerable sectors, particularly
public transport and agriculture, the government allotted PhP 4 billion for fuel subsidies. About PhP 3 billion
will be allotted for the public transport sector (Pantawid Pasada), while the remaining PhP 1 billion will be
for farmers and fisherfolks (as fuel discount). The guidelines for implementation of the fuel subsidy program
will be based on the conditions set by the Department of Budget and Management (DBM), Department of
Transportation (DOTr), and Department of Agriculture (DA).
Gasoline Station Lending and Financial Assistance Program (GSLFAP). This is in line with the deregulated
and Natural Gas

Downstream Oil
market environment that aims to encourage the entry of new industry participants. It provides credit assistance
to prospective participants whose owners have completed a two-fold program on management and skills
training in the retailing of petroleum products including LPG. The DOE also plans to issue updated guidelines
on the Gasoline Station Training and Loan Fund (GSTLF) to further enhance GSLFAP.
LPG Cylinder Improvement Program (LCIP). The LCIP aims to establish the regulatory framework for the safe
operations of the entire LPG industry, including all LPG facilities, and the residential, commercial, industrial and
automotive use of LPG. It is a system that aims to ensure the quality of all cylinders in circulation to protect
the end-consumers. DOE, together with partner agencies and LGUs conducted a series of IEC campaigns
nationwide that covered oil supply-demand outlook, downstream oil industry rules and regulations, and Safe
LPG Project, among others with focus on the safe handling and use of LPG and liquid fuels.
ENERGY CONSUMPTION FOR OIL AND PETROLEUM PRODUCTS
Transport
The relaxation of strict mobility restrictions played a significant role in a 12.2% increase in energy consumption
in the transport sector in 2022. Despite this, the transport sector continues to be the most oil intensive sector.
Energy consumption for road transport specifically saw an 11% growth in 2022, reaching 9.9 MTOE from the
previous year. It maintained its dominant position, accounting for 89.5% of the total transport demand.
Domestic maritime traffic saw further improvement as tourism, trade, and regular travel activities resumed.
As a result, the energy demand for in-land water transport increased to 940.0 kTOE, marking an 11.7% growth
compared to its 2021 level of 841.9 kTOE.
The exceptional performance of domestic aviation resulted in a remarkable 76.6% increase in the
utilization of aviation fuels (aviation gasoline and jet fuel) compared to the 194.1 kTOE level in 2021.
This growth can be attributed to the rising demand for air and maritime travel. Additionally, major
airlines reintroduced fare promotions, which not only supported the recovery of the domestic
tourism industry but also contributed to a four-fold increase in air passenger movement, as reported by the Civil
Aeronautics Board (CAB).
The extensive rehabilitation of the Metro Rail Transit (MRT) 3 in 2022 had a significant impact on its operation,
allowing the rail lines to operate at full capacity. As a result, there was a notable 10% increase in aggregate
energy consumption, reaching 11.2 kTOE in 2022 compared to 10.1 kTOE in 2021.
With the exception of LPG, the consumption levels of all transport fuels experienced an increase which can be
attributed to the diminishing relevance of LPG as a fuel for taxis.
Gasoline and diesel, which together account for 90.3% of the total transport demand, experienced an increase
in consumption. This can be attributed to the rise in road traffic in the country. In line with the mandated
blending schedule, bioethanol and biodiesel also saw increments of 10.2% and 16.1% respectively in 2022. The
growing presence of electric vehicles (EVs), along with the improved performance of the MRT and LRT systems,
contributed to a 9.3% growth in electricity consumption within the transport sector.
Total Final Energy Consumption (TFEC) for Oil
For the year 2022, the consumption of oil products saw a significant increase of 17.1%, reaching 1.8 MTOE. This
accounted for a 25.7% aggregate share in the industry’s total final energy consumption (TFEC). The consumption
of diesel experienced a substantial escalation of 35.1%, primarily driven by its increased use in assembly lines for
machinery and equipment in mining and construction sectors. LPG consumption also saw a slight increase of
1.4%. Biomass consumption remained steady at 924 kTOE, while biodiesel consumption witnessed a significant
growth of 53.7%, reaching 23.7 kTOE in 2022, in accordance with the mandated blending schedule.
Figure 35. Top 4 Countries as Import Source and Export

Destinations for 2022
TOTAL ENERGY IMPORT: 38.7 MTOE TOTAL ENERGY IMPORT: 38.7 MTOE Total Primary Energy Supply (TPES) for Oil
Top Import Partners Level (Shares) Top Export Markets Level (Shares)
In 2022, there was a rapid increase in net

INDONESIA CHINA imported energy, resulting in a decrease in
16.9 MTOE (43.6%) 2.2 MTOE (48.6%) energy self-sufficiency by 1.3 percentage points
to 49.4% from 50.8% in 2021. Oil reclaimed its
SOUTH KOREA SOUTH KOREA position as the primary energy source for the
4.7 MTOE (12.3%) 1.2 MTOE (26.3%) country, accounting for 32.2% of the Total
Primary Energy Supply (TPES) in 2022. Its level
SINGAPORE THAILAND
increased by 12.3% to 19.8 MTOE, primarily
3.4 MTOE (8.9%) 0.4 MTOE (8.6%) driven by the surge in net oil imports due to
limited domestic production.
SAUDI ARABIA BRUNEI
3.1 MTOE (7.9%) 0.1 MTOE (3.2%)
The import market for the Philippines remained
steady with South Korea, Singapore, and China
continuing to be the top sources of finished oil products. On the other hand, the Middle East supplied all of the
country’s needs for imported crude oil.
On the other hand, China, Brunei, and Thailand were the top export markets, each accounting for nearly a
quarter share. Specifically, China held a 22.7% share, Brunei had a 22.3% share, and Thailand had a 22.2% share.
The anticipated growth in oil demand during the planning horizon highlights the need for investments in
additional storage capacity. Establishing these facilities requires implementing measures to attract and
incentivize investments, which will contribute to ensuring the security of the oil supply.
Table 38. Additional Storage Capacity Requirement
2050 Targets under 2050 Targets under Depot and Import Terminals
the Reference the Clean Energy
Scenario Scenario Based on projections, it is anticipated that the
country’s oil demand will significantly increase
Total Depot Capacity 27,268 MB 22,408 MB
in the coming years. Under the Reference
Additional Import Scenario (REF), the demand is expected to
Terminals Needed (at
+ 6,913 MB
Existing Capacity is reach 442,649 thousand barrels (MB) by 2050,
80% utilization rate, Sufficient
30-day inventory)
while in the Clean Energy Scenario (CES), it
is projected to be 384,491 MB. These figures
include the demand for jet fuel and marine
bunker fuel for international passage.
Given this projected growth in oil requirements, it becomes imperative to establish additional facilities such as
depots and import terminals. These infrastructure investments will play a crucial role in accommodating the
surge in demand and ensuring a reliable and secure oil supply for the country’s energy needs. By proactively
developing these facilities, the nation can effectively meet the rising demand and maintain a robust energy
infrastructure for the future.
To meet the growing demand for oil storage, it is estimated that an investment of PhP 98.6 billion (REF) and PhP
81.1 billion (CES) will be required by 2050. This investment will be allocated towards the establishment of depots,
which will prIn contrast, additional oil import terminals are only necessary under the Reference Scenario (REF),
as the existing total capacity is already capable of meeting the requirements of the Clean Energy Scenario (CES).
Therefore, it is only in the REF that there is a need for further investment and expansion of import terminals.
and Natural Gas

Downstream Oil
Figure 36. Tank truck loading rack in a liquid In contrast, additional oil import terminals are
petroleum depot only necessary under the Reference Scenario
(REF), as the existing total capacity is already
capable of meeting the requirements of
the Clean Energy Scenario (CES). Therefore,
it is only in the REF that there is a need for
further investment and expansion of import
terminals.
Under the Reference Scenario (REF), the

establishment of an additional oil import
terminal with a capacity of 6,913 MB by
2049 will increase the total import terminal
capacity to 344,281 MB. This expansion
requires an estimated investment of PhP 25
billion by 2050 and will create 1,312 additional
job opportunities for Filipinos. This investment
will enhance the country’s import capabilities,
ensuring a reliable and efficient supply of oil
to meet the growing demand.
Oil Storage Capacity Requirement Figure 37. Petron Depot
The Department of Energy (DOE) is actively involved in

promoting and overseeing various activities within the
downstream oil industry, including supply, logistics, marketing,
distribution, and pricing. The additional investments in facilities
planned for the future will play a crucial role in safeguarding
the country against potential disruptions in oil supply during
times of disaster, such as typhoons or volcanic eruptions, as
well as geopolitical tensions like the Russia-Ukraine War. By
ensuring a robust and resilient infrastructure, the country can
mitigate the impact of such events and maintain a stable and
secure oil supply.
It is important to consider international aircraft and marine vehicles that refuel in the Philippines when
calculating the need for additional depots in both the short and long term. These vehicles contribute to the
overall demand for oil and should be taken into account when planning for the establishment of new depots.
The additional depots in the Philippines should consider the refueling needs of international aircraft and marine
vehicles. Table 39 showcases the total oil requirement, total depot capacity requirement, cumulative investment
requirement, and cumulative job generation from 2025 to 2050. Assumptions include a 30-day inventory level
for petroleum products, 15 days for LPG, and an 80% capacity utilization rate for storage facilities. However, if the
Maximum Import Reserve (MIR) is considered, only half of the depot capacity requirement shown in the table
is necessary over the planning horizon, taking into account strategic oil reserves and emergency stockpiles.
Table 39. Depot Capacity Requirement and Investment
Total Oil Requirement Total Depot Capacity Cumulative Investment Cumulative Jobs
Year (MB) Requirement (MB) (Million PhP) Generation
REF CES REF CES REF CES REF CES
2023 219,269 217,832 - - - - - -
2025 230,243 224,331 10,582 9,597 38,274 34,711 7,169 6,502
2028 253,527 240,001 14,030 11,708 50,748 42,347 9,505 7,932
2030 268,307 249,403 14,030 11,708 50,748 42,347 9,505 7,932
2035 307,567 277,455 17,399 13,895 62,933 50,260 11,788 9,414
2040 352,144 307,842 20,493 16,448 74,123 59,492 13,884 11,143
2045 393,886 342,982 23,786 19,370 86,037 70,063 16,115 13,123
2050 442,525 384,389 27,268 22,408 98,629 81,050 18,474 15,181
Under the REF scenario, the annual growth rate of domestic oil demand is expected to decline gradually. From
5.1% in 2023 to 2.7% in 2050, resulting in an average annual growth rate (AAGR) of 3.2%. This decline can be
attributed to the implementation of energy efficiency measures in the transport sector and the projected
penetration of electric vehicles (EVs) reaching 10% in road transport. These factors contribute to a more
sustainable and efficient use of oil resources in the country.
The CES does not require any additional capacity over the planning period. This is due to the lower oil demand
growth rate of 2.6% AAGR, which is influenced by the significant impacts of higher energy efficiency measures
in the transport sector and a higher penetration rate of electric vehicles (EVs) at 50%. These factors contribute
to a reduced reliance on oil and a more sustainable energy landscape in the CES.
In contrast, additional oil import terminals are only necessary under the Reference Scenario (REF), as the
existing total capacity is already capable of meeting the requirements of the Clean Energy Scenario (CES).
Therefore, further investment and expansion of import terminals are only needed in the REF.
DOWNSTREAM NATURAL GAS SECTOR
The downstream natural gas industry in the Philippines is still considered a developing industry, essentially a
“single-project” stage, whose birth was marked by the successful launching of the Malampaya Deep Water Gas-
to-Power Project on 16 October 2001.
On 15 May 2023, the Philippine Government and representatives of the Malampaya Consortium signed for a
renewal of the contract for another 15 years or until 22 February 2039 allowing the operator to drill new wells as
it seeks to boost output and ensure a stable supply of clean energy. The consortium has committed to investing
about $600 million for further exploration and drilling activities beyond the existing production area within SC 38.
Currently, the demand for natural gas is solely from the power generating sector, about 2,306.2
MW gas-fired power plants in view that the Gas Sales Purchase Agreement (GSPA) between National Oil
Corporation/PSALM with the SC 38 Consortium already expired on 05 June 2022, coupled with the Build-
Operate-Transfer (BOT) Contract of the Ilijan Power Plant with NPC/PSALM and Ilijan KEPCO. Likewise, the
remaining GSPAs of the respective natural gas-fired power plants will expire in 2024.
Table 40. Natural Gas Production and

Consumption from 2019 – 2022
Production Consumption The Philippines has a potential domestic source of natural

Year gas supply estimated at 19 tcf from its sixteen (16) petroleum
(MMSCF) (MMSCF)
basins, namely Northwest Palawan, Southwest Palawan,
2019 155, 495 146, 365
Central Luzon, Visayan, Mindoro-Cuyo, Cagayan, East Palawan,
2020 141, 732 132, 009 Southeast Luzon, Reed Bank, Cotabato, Agusan-Davao, Sulu
Sea, West Luzon, Ilocos, Bicol Shelf and Iloilo-West Masbate.
2021 121, 089 115, 703
The government is promoting the development of indigenous
2022 113, 611 108, 567 petroleum resources through the Philippine Conventional
Source: DOE-Oil Industry Management Bureau
Energy Contracting Program (PCECP).
IMPORT OPTION
and Natural Gas

Downstream Oil
DOE promotes the balanced development of LNG importation in parallel with the exploration of indigenous
gas resources. However, for the Philippines to be ready to import LNG, the necessary infrastructure, such as
the LNG Import Receiving Terminal and Regasification facilities, must be implemented. To materialize the
construction of the critical natural gas facilities, private investment is required to kick off the construction of the
LNG Terminals. To date, a total of seven (7) LNG Terminal Projects have been issued permits to potential investors,
with commercial operations expected from 2023 onwards. Table 41 shows the details of ongoing LNG projects.
LNG importation will take place in 2023, given the expected commercial operation of the two (2) proposed
terminals in Batangas in 2024 to be operated by Linseed Field Corporation and FGEN LNG Corporation. The
Philippines has imported 1,312,521 cubic meters worth of LNG between April and December 2023, sourced from
various countries such as the United Arab Emirates, Malaysia, Australia, Algeria, Oman, and USA.
Table 41. Status of LNG Projects
Proponent Project Estimated COD Location Capacity Anchor Market Status

Phase 1:
Jun 2005
Small – Scale LNG
Terminal Project Phase 2:
(Indicative) 40 MW conversion
Samat LNG Aug 2025 Approved 6-month
Barangay Sisiman, from diesel to natural gas &
Corporation – 100% Floating Storage 0.32 MTPA NTP extension valid
Mariveles, Bataan manufacturing industries, small
Foreign and Regasification Phase 3: until 09 Jul 2024
IPPs
Unit (FSRU) Nov 2025
Terminal
Phase 4:
Feb 2026
Floating Storage
(Indicative) 1,100 MW AC Energy & NTP Extension of 10
Shell Energy Unit (FSU) Tabangao,
September 2025 3.00 MTPA BCE Power Plant & a Third-Party months issued on 22
Philippines (Filipino) and Onshore Batangas City
Access – JG Summit Oct 2021
Regasification
Floating Storage
Vires Energy Unit (FSU) Barangay Simlong, (Indicative) Proposed 500 MW NTP Extension under
1Q 2028 3.00 MTPA
Corporation (Filipino) and Onshore Batangas City Floating Power Plant evaluation
Regasification
Submitted POM
Interim Floating
application last 9 May
Storage and LNG Terminal COD: Barangays Sta.
FGEN LNG 1,000 MW Sta. Rita, 500 MW San 2023
Regasification Dependent upon Clara, Sta. Rita
Corporation 5.26 MTPA Lorenzo, 414 MW San Gabriel, and
Unit (FSRU) securing of LGU Aplaya, and Bolbok
(Filipino) 97 MW Avion Awaiting compliance
Liquefied Natural Permits in Batangas City
of FGEN on the POM
Gas Terminal
documentation
Terminal COD:
Floating Storage Permit to construct
Dependent upon
Unit (FSU) issued on Dec, 2021
completion of Barangay Ilijan and
Linseed Field and Onshore
remaining works Dela Paz, Batangas 3.00 MTPA 1,200 MW Ilijan Power Plant
Corporation (Filipino) Regasification and Linseed to submit
and securing City
60.00 cbm buffer lacking documents
of Certificate of
LNG Storage Tank for POM Application
Completion
Energy World Barangay Ibabang

LNG Storage and
Gas Operations Polo, Pagbilao 650 MW Self - owned Gas - fired PTC extension under
Regasification June 2025 3.00 MTPA
Philippines Inc. Grande Island, power plant evaluation
Terminal
(Filipino) Quezon Province
Bay of Batangas
Transfer of Interest
Floating Storage within the Municipal
of Operatorship to
and Regasification Waters of Mabini EGCO Group (small – scale LNG
Luzon LNG Terminal Luzon LNG Terminal
Unit (FSRU) December 2025 and San Pascual, 4.40 MTPA break bulk capacity) & Third-Party
Inc. (LLTI) Inc. and Permit to
Liquefied Natural and City Water Access
Construct issued on
Gas Terminal of Batangas City,
19 December 2022
Batangas
Source: DOE-Oil Industry Management Bureau, as of 22 April 2024
Figure 38. Linseed Field Corporation’s PHLNG Import Figure 39. FGen LNG Corporation’s
and Regasification Terminal 2 Interim Offshore Terminal
REGULATORY FRAMEWORK
The PDNGR, which was issued on 28 November 2017, has provided the regulatory framework of the downstream
natural gas industry in the Philippines, covering industry compliance to policies, rules, standards, and best
practices in areas of siting, design, construction, expansion, modification, operation and maintenance of
any project necessary to the development of the Philippine Downstream Natural Gas Industry (PDNGI). The
regulatory framework also covers industry compliance with policies, rules, and best practices on the importation
of LNG, indigenous natural gas, and the supply and transport activities of natural gas to the customers. In
addition, the framework includes third-party access to gas facilities and the development of the country as an
LNG trading and transshipment hub for the Asia-Pacific region.
Investment in natural gas facilities is vital for the industry’s growth and securing the country’s energy supply
during the energy transition. The DOE has taken a positive step by approving five new LNG projects with a total
investment cost of USD 865.4 million (PhP 43.3 billion) presented in Table 42. LNG has the potential to support
the grid’s demand from baseload to mid-merit and peaking, while also aiding the development of intermittent
renewable energy technologies.
Moreover, the REF scenario requires an additional capacity of 3.98 MTPA of LNG facilities to meet the projected
supply requirements by 2050. We have two options: an Onshore LNG Terminal, which requires a total investment
of PhP 47.3 billion, or an FSRU, which requires a lower investment cost of PhP 11.1 billion.
Table 42. Investment Cost of LNG Projects

Total
Target Total Construction
Proponent Project Location Construction Cost
Operation Cost (USD Million)
(PhP Million)
Energy World Gas Operations Pagbilao,
LNG Storage and Regasification Terminal December 2023 145 7,250
Philippines Inc. Quezon
Luzon LNG Terminal Floating Storage and Regasification Unit Batangas

December 2025 480 24,000
Inc. (LLTI) (FSRU) City
Floating Storage and Regasification Unit Batangas

Vires Energy Corporation April 2026 123 6,150
(FSRU) City
Shell Energy Floating Storage Unit (FSU) and Onshore Batangas

September 2025 49.40 2470
Philippines, Inc Regasification City
Phase 1: March
Mariveles,
Samat LNG Corporation Small – Scale LNG Terminal Project 2024 68 3,400
Bataan
Phase 2: May 2025
Table 43. Additional Capacity Investment Requirement (2023-2050)
Capacity Addition Aggregate Investment

LNG Facility Type
(MPTA) (PhP Million)
On-shore LNG Terminal with Storage 47,322

3.98
FSRU with Storage 11,135
and Natural Gas

Downstream Oil
Total 3.98 58,457
In addition to investments in infrastructure facilities, Table 44. Natural Gas Market Potential from
Liquefied Natural Gas (LNG) presents a significant Off-Grid Islands Oil-Based Power Plants
opportunity to transition away from oil-based power plants,
offering ancillary services in off-grid and remote areas. In Region 2021 2022
2022, the Philippines’ off-grid oil-based power plants boast Philippines 601.373 482.305
a total installed capacity of 601.373 MW, with a dependable
Luzon 444.387 353.352
capacity of 482,305 MW, as detailed in Table 44. This
transition doesn’t just reduce reliance on fossil fuels, it also Visayas 66.341 58.461
lays the groundwork for a future powered by cleaner, more
Mindanao 90.645 70.492
sustainable, and reliable energy sources.
Total 9,722 12,014
Source: DOE-Electric Power Industry Management Bureau,

as of December 2022
ENERGY UTILIZATION
ENERGY EFFICIENCY AND CONSERVATION
INDUSTRY PROFILE
The country places importance in promoting judicious and efficient use of energy across all sectors through the
Republic Act No. (RA) 11285, otherwise known as the Energy Efficiency and Conservation (EEC) Act. It recognizes
that Energy Efficiency (EE) opportunities abound in various sectors, such as the commercial, industrial, transport,
and government sectors in the country.
Government Energy Management Program (GEMP)
GEMP governs EE in the public sector. It is a government-wide program to reduce the government’s monthly
consumption of electricity and petroleum products and improve its efficiency. Government entities (GEs) submit
their monthly electricity and fuel consumption reports, as well as designated EEC officers and/or focal persons,
building descriptions, and inventories through the GEMP online system.
The following are required from all GEs:

• Designation of Energy Efficiency and Conservation Officer (EEC Officer)
• Submission of reportorial requirements, including monthly electricity and fuel consumption reports,
• inventory of ACUs, lighting, and other office equipment and vehicles
• Formulation of Energy Efficiency and Conservation Program or Local Energy Efficiency and Conservation
Plan (LEECP)
• Implementation of energy conservation measures such as but not limited to: setting ACU thermostats to not
lower than 24⁰C, limiting the use of ACUs to six (6) hours, turning off the lights and computers during lunch
break except in offices where there is “No Noon Break” policy
• Implementation of fuel conservation measures including but not limited to: avoidance of idling; scheduling
of trips; and limiting use of government vehicles for official business only.
•
Further, on 16 January 2024, Administrative Order No. 15 titled, “Directing the Accelerated
Implementation of the Government Energy Management Program (GEMP)” was issued to strengthen the
implementation of GEMP. This is to address the need for intensified efficient utilization and conservation efforts
of electricity and fuel as well as to mitigate the power demand amidst the ongoing El Niño phenomenon.
In 2023, the government shelled out PhP 55 million to implement programs under GEMP. These projects
generated 336 jobs from the solar PV demo project, 555 from the energy audit, and 30 from the EVCS demo. For
2024, there is a proposal to conduct energy audits and solar PV demonstrations with a total budget of PhP 35
million. These include:
Conservation
Energy Efficiency and
a. Demonstration project on promoting solar PV Figure 40. Demonstration Project on Promoting Solar PV
technology for offices (PhP 12 million); Technology at the DOE Luzon Field Office in Pangasinan
Energy Utilization
b. Conduct of third-party energy audit of buildings

of government entities (PhP 25 million);
c. EVCS demonstration (PhP 18 million).
The country has a total of 7,850 government

offices that will be covered by the program. As of
31 March 2024, a total of 1,118 spot checks and 1,176
energy audits have been conducted, resulting in
a cumulative electricity savings of 30.56 GWh and
528,392.39 liters of fuel savings.
On 16 January 2024, the Administrative Order No. 15, titled, “Directing the Accelerated Implementation of the
Government Energy Management Program (GEMP)” was issued to strengthen the GEMP implementation to
address the need to intensify the efficient utilization and conservation efforts of electricity and fuel as well as to
mitigate power demand amidst the ongoing El Niño phenomenon.
Targets under the NEECP and Roadmap 2023-2050 indicate that emission avoidance from 2023 to 2024 is
expected to reach 1.87 Mt CO2e or 16.15%, 3.31 Mt CO2e or 15.81% between 2025 to 2028, and 25.06 Mt CO2e or 14.48%
between 2029 to 2050. The investment requirement to support the GEMP programs under the PEP indicates that
a total of PhP 147.57 million will be needed from 2023 to 2050.
Designated Establishments (DEs)
Under the EEC Act, DOE will monitor both the government and private sector. DOE monitors the energy
consumption of the Designated Establishments (DEs) or private entities in the commercial, industrial, transport,
power, agriculture, public works, and other sectors identified as energy-intensive industries. As of 31 December
2023, there are 4,956 DEs: 3,385 from the commercial, 1,540 from the industrial, and 31 from the transportation
sectors that have submitted their annual consumption reports. The total investment cost of the completed energy
efficiency projects is PhP 6.78 billion, with a total energy savings of around 466 Gigawatt-hours. Submission of
annual reports is done online through https://de.doe.gov.ph/.
DEs are obliged to have EE Practitioners, particularly a Certified Energy Manager (CEM) or Certified Energy
Conservation Officer (CECO), according to their annual energy consumption. They are also required to undergo
an energy audit once every three years through the services of a Certified Energy Auditor (CEA) or Energy Service
Company (ESCO). CEA, CECO, and CEM are individual EE Practitioners who have undergone the training as
prescribed by DOE through the Recognized Training Institutions (RTIs). As of 31 December 2023, we have 886
registered EE Practitioners composed of 488 CEMs, 171 CECOs, and 227 CEAs.
Energy Service Companies (ESCOs)
ESCOs are juridical entities that offer multi-technology services and goods for developing and designing EE
projects, delivering, and guaranteeing energy savings, and ensuring cost-effective and optimal performance.
Promoting ESCOs in the country can create accurate and achievable energy- savings projects from various
stakeholders, reducing the financial and technical burden of retrofitting/ improving EE.
Registered ESCOs meet the minimum technical, financial, and legal requirements to operate. Certified ESCOs are
Registered ESCOs with proven results in EE project implementation. As of 31 December 2023, we have twelve (12)
Certified ESCOs and 44 Registered ESCOs. Eight (8) Registered ESCOs have undergone independent verification
by DOE.
ESCOs differ from Architectural and Engineering Figure 41. Energy Service Company (ESCO) Validation
(A&E) firms since they offer a full range of services
required for a comprehensive energy efficiency
project, including:
• Energy audits
• Construction management services, including
preparation of performance specifications, project
• design, and project commissioning
• Providing and arranging financing
• Project monitoring and guarantee of energy savings
• Equipment maintenance and operations
As of 31 December 2023, ESCOs have invested

approximately PhP 6.38 billion in various projects.
These projects yielded total savings of 610.61 GWh.
Table 45. Targets under the NEECP and Roadmap 2023-2050
Emissions Avoidance
Sector Programs Short-Term Medium-Term Long-Term
(2023-2024) (2025-2028) (2029-2050)
PELP/Minimum Energy
Commercial 7.51 Mt CO2e 16.15% 13.28 Mt CO2e 15.81% 100.50 Mt CO2e 14.48%
Performance for Products (MEPP)
Residential PELP/MEPPs 18.56 Mt CO2e 34.65% 32.79 Mt CO2e 31.66% 248.21 Mt CO2e 23.17%
Industrial PELP/MEPPs 17.43 Mt CO2e 19.38% 30.81 Mt CO2e 19.17% 233.18 Mt CO2e 18.35%
Source: DOE-Energy Utilization Management Bureau, as of April 2024
Philippine Energy Labeling Program (PELP)
The PELP Guidelines, following Department Circular (DC) 2020-06-0015, states that all manufacturers, importers,
distributors, and dealers of energy-consuming products (ECP) must register their products to secure an energy
label.
Table 46. PELP Registration
As of 31 March 2024, a total of 147 companies and 7,329 Processing
product models were registered. Furthermore, 7,543 Service Fee (PhP)
Time
energy labels have been issued for 2,734 models of Company Registration 1,600.00 3 WD
air conditioners, 2,066 lighting products, 1,307 models Product Registration 300.00 7 WD
of refrigerating appliances, and 1,436 TV sets. The
Issuance of Energy Label 300.00 3 WD
schedule of fees and processing time for registration
applications are shown in Table 46. Certificate of Exemption 300.00 3 WD
The NEECP targets and 2023-2050 Roadmap indicate

that the emission avoidance in the Commercial Sector per period are as follows: 7.51 Mt CO2e or 16.15% in the
short-term, 13.28 Mt CO2e or 15.81% in the medium term, and 100.50 Mt CO2e or 14.48% in the long-term.
Meanwhile, the residential sector is targeting up to 18.56 Mt CO2e or 34.65% in the short-term 32.79 Mt CO2e or
31.66% in the medium-term, and 248.21 Mt CO2e or 23.17% in the long-term.
The Industrial Sector is expecting to have emission avoidance of 17.43 Mt CO2e or 19.38% in the short-term, 30.81 Mt
CO2e or 19.17% in the medium-term, and 233.18 Mt CO2e or 18.35% in the long-term. The investment requirement
for PELP under PEP 2023 to 2050 is PhP 74.46 million for the Government Sector, and PhP 184.55 million for the
Private Sector.
Recognition of Testing Laboratories
Laboratory facilities conducting performance testing of energy-consuming products are essential infrastructure
to support verification activities under PELP. Samples drawn during the monitoring will be subject to verification
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testing by the DOE LATL or a DOE-recognized testing laboratory. The application fee for recognition is PhP
20,000.00 per product type/facility, and the certificate is valid for three (3) years. On the other hand, the renewal
of recognition costs PhP 4,800.00. As of 31 March 2024, DOE has recognized four (4) testing facilities from two (2)
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laboratories that cater to energy performance testing of air conditioners, refrigerating appliances, television sets,
and lighting products.
Table 47. Recognized Testing Laboratory

Testing Laboratory Location Scope Date of Recognition
Air conditioners 27 January 2023
Omni Solid Services Inc. - Solid
Parañaque City Refrigerating Appliances 23 June 2023
Testing Calibration Laboratory
Television Sets 23 June 2023
IIEE Foundation Inc. Testing Facility Quezon City Lighting products 24 August 2023
Figure 42. DMT’s Market Monitoring Activity
Enforcement, Monitoring, and Verification
To ensure compliance with PELP guidelines and requirements, the DOE Monitoring Team (DMT) conducts
enforcement, monitoring, and verification activities nationwide through validation of documents from PELP-
registered companies, monitoring of retail stores, conduct of sampling and verification and enforcement of PELP
guidelines. As of 05 April 2024, 13 PELP-registered companies have been visited by the DMT, where they validated
the company’s location, concerned personnel relative to PELP and products, and submitted documentary
requirements. Likewise, a total of 63 ECP retail stores have been monitored for the presence of energy labels,
accuracy of information, and validity of labels.
Energy Practitioners
DOE issued Department Circular No. DC2021-01-0001 for the certification and training of energy efficiency
practitioners, including Energy Managers, Energy Conservation Officers, and Energy Auditors. In 2022, the DOE
issued DC2022-03- 0006, DC2022-03-0007, and DC2022-03-0008 to further provide guidelines in the assessment
and certification of Energy Efficiency Practitioners. Since the implementation of the guidelines, 1,062 practitioners
have been registered, comprising 634 Energy Managers, 183 Energy Conservation Officers, and 245 Energy
Auditors. The training is conducted by the Registry of Recognized Training Institutions, a partner of the DOE in
implementing the Energy Efficiency and Conservation Act. The DOE has nine (9) RTIs for Certified EM, and seven
(7) RTIs for Certified EA.
Table 48. DOE Certified and Recognized Training Institutions (RTIs)
Energy Managers Energy Auditors
MERALCO Power Academy MERALCO Power Academy

PAMAV Training Institute and Technology Center, Inc. PAMAV Training Institute and Technology Center, Inc.
Philippine Institute of Energy Management
Advance I&P Solutions, Inc.
Professionals, Inc.
ENPAP 4.0 INC TUV Rheinland Philippines, Inc.
Philippine Energy Professionals International Inc. J3 Trainers and Consultants, Inc.
Advance I&P Solutions, Inc. PEP-G Electrical Supplies
TUV Rheinland Philippines, Inc. ENPAP 4.0 INC
J3 Trainers and Consultants, Inc.
PEP-G Electrical Supplies
Energy Labeling Program and Fuel Economy Performance for Transport Vehicles
In 2023, DOE issued policies for labeling and fuel economy ratings of transport vehicles. These policies empower
consumers to validate information provided by vehicle stakeholders, facilitating the selection of fuel-efficient
vehicles, fuel savings, and reducing greenhouse gas emissions. Below are the policies:
• DC2023-05-0017 titled, “Prescribing the Guidelines on the Philippine Transport Vehicles Fuel Economy
Labeling Program (VFELP) for Compliance of Vehicle Manufacturers, Importers, Distributors, Dealers, and
Rebuilders” - mandatory labeling of all transport vehicles; and
• DC2023-05-0016 titled, “Prescribing the Fuel Economy Performance Rating (FEPR) Guidelines on Road
Transport Vehicles under the Philippine Transport Vehicles Fuel Economy Labeling Program (VFELP) for
Compliance of Vehicle Manufactures, Importers, Distributors, Dealers, and Rebuilders” - minimum fuel
economy performance rating for transport vehicles set.
To expedite the implementation of the VFELP and FEPR, DOE plans to create a web-based application and online
database system. This system will assist in generating information and statistics for future policy development,
working in conjunction with the National Energy Efficiency and Conservation Database (NEECD). In addition,
DOE is looking at the feasibility of establishing a Vehicle Performance Assessment (VPAF) necessary for testing,
verifying, validating, and gathering first-hand data on the fuel economy of transport vehicles.
ELECTRIC VEHICLES AND ALTERNATIVE FUELS
Figure 43. Inauguration of Battery Electric Vehicles and EVCs at the Energy Center, BGC, Taguig City (06 June 2023)
Electric Vehicle Industry
The transport industry in the Philippines is responsible for roughly a third of the country’s final energy usage and
almost a quarter of its greenhouse gas emissions (GHG). Given the increasing global oil costs, the use of electric
vehicles could notably diminish GHG emissions and mitigate the effects of steep oil prices, thereby helping the
country meet its environmental goals.
On 15 April 2022, the Electric Vehicle Industry Development Act (EVIDA) lapsed into law. Its IRR was jointly issued
by DOE and the Department of Transportation (DOTr) on 05 September 2022, and it took effect on 20 September
2022. EVIDA aims to ensure the country’s energy security by reducing reliance on imported fuel for transportation.
The EVIDA sets the national objectives to increase the penetration of electric vehicles for road transport by requiring
government and private fleets to have at least a five percent (5%) share, the building owners and establishments
to allot parking spaces with charging stations for EVs, and to construct charging stations in gasoline stations.
DUs are also required to provide charging station requirements, include the same in the development plan, and
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deploy vehicles for transport and non-transport by 2040, respectively.
The EVIDA Technical Working Group (TWG) was convened to ensure harmonized policies and consistent and
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streamlined standards and regulations in the EV industry. The TWG includes DOE, DOTr, DTI, DOST, Department
of Environment and Natural Resources (DENR), Department of Public Works and Highways (DPWH), Department
of the Interior and Local Government (DILG), and the National Economic and Development Authority (NEDA).
Policies
After a series of consultations with the stakeholders, the following policies were issued to support the
implementation of EVIDA:
• DC2023-05-0010 Guidelines for the Unbundling of Electric Vehicle Charging Station Charging Fee pursuant
to Electric Vehicle Industry Development Act (EVIDA)
• DC2023-05-0011 Guidelines for the Accreditation of Electric Vehicle Charging Providers and Registration of
Electric Vehicle Charging Station pursuant to EVIDA
• DC2023-05-0012 Guidelines for the Electric Vehicle (EV) Recognition and Adoption of EV Standard Classification
for Road Transport Incentives Eligibility pursuant to EVIDA
EV and EV Charging Stations Deployment
DC2023-05-0012, or the EV Recognition Guidelines, allows the harmonized adoption and classification of EV
variants permitted to ply the roads in the country. Recognized variants of EVs are entitled to tariff exemption
under Executive Order (EO) No. 12. EO 12 temporarily cuts the MFN tariff rates to zero percent on completely built-
up units of EVs except for Hybrid Electric Vehicles (HEVs) for five (5) years. This brings down the acquisition cost of
EVs, making them more competitive to consumers.
Figure 44. Recognized EVs per Variants

75%
Currently, EVs in the country have four (4)

variants: Battery Electric Vehicles (BEVs),
Plug-in Hybrid Electric Vehicle (PHEV), Hybrid
Electric Vehicle (HEV), and Light Electric
Vehicle (LEV). Figure 44 shows the number
of recognized EVS per variant. As of March
2024, we have 292 BEVs. This takes up 75%
of the total number of recognized EVs. HEV
(37 units) and LEV (38 units) share 10% apiece,
10% 10%
while the PHEV takes up the smallest share of
6%
22 units or 6%.
Battery Electric Plug-in Hybrid Hybrid Electric Light Electric

Vehicles (BEVs) Electric Vehicle Vehicle (HEV) Vehicle (LEV)
(PHEV)
Source: DOE-Energy Utilization Management Bureau, as of 01 March 2024
EV Charging Stations and EVCS Providers Figure 45. EVCS at the Department of Energy, BGC, Taguig City
• Accredited EVCS providers are entities

that sell, construct, install, maintain, own,
or operate EVCS or its components for a
fee. These are classified according to the
scope of their operation as follows:
• EVCS Provider – Operator – Entities who
collect fees from EV users in exchange
for the use of EVCS facilities to charge
their EVs. As of 01 March 2024, we have a
total of twenty-seven (27) EVCS Providers
– Operators. These generated 289 new
jobs and a total investment cost of PhP
1.49 billion was infused for these activities.
• EVCS Provider – Service - Entities who collect fees for the construction, installation, data and payment
management, and maintenance of EVCS. 01 March 2024 data on the EVCS registration shows that we have
seventeen (17) EVCS Provider – Service nationwide.
• EVCS Provider – Supplier - Entities that sell EVCS or any part or component thereof for a fee. We have a total
of fifteen (15) EVCS Provider – Suppliers as of 01 March 2024.
Figure 46. Electric Buses at the Department of Energy, BGC, Comprehensive Roadmap on the Electric
Taguig City Vehicle Industry (CREVI)
CREVI is a National Development Plan for the

EV industry to accelerate the development,
commercialization, and utilization of EVs
in the Philippines. It is an essential tool for
the government’s high-level action plans in
developing the EV industry in coordination
with other government agency leads such
as the Department of Trade and Industry
(DTI), the Department of Transportation
(DOTr), the Department of Science and
Technology (DOST), and stakeholders. The
CREVI consists of four (4) components:
• EVs and charging station component with DOE as lead in coordination with DOTr
• Manufacturing component with DTI as lead
• Research and development component with DOST as lead
• Human resource development component with DTI as lead
CREVI outlines the targets, strategies, and prevailing scenarios within the EV industry, as well as the challenges
and individual roadmap for each of the four main components. Consistent with the EV industry goals, the CREVI
sets forth a unified path toward attaining the government’s targets. Under the Reference (REF) scenario, CREVI
sets a minimum target of EVs constituting at least ten percent (10%) of the total fleet across all sectors (except for
electric trucks) by 2040 (onwards to 2050).
Table 49 shows the projected EV Fleet and Table 49. EV Fleet and EVCS by 2050
EVCS by 2050 at a ten percent (10%) share
EV /EVCS Targets REF CES
under the REF and at 50% under the Clean
(10% EV Share) (50% EV Share)
Energy Scenario (CES). The REF scenario will Vehicle Type EV Type
result in an additional energy demand of 4,748 HEV 448,899 1,985,893
gigawatt-hours (GWh) which is equivalent to Cars
PHEV 204,595 862,050
(Sedan, SUV, UV)
0.54 GW of power requirement by 2050. The BEV 983,195 4,048,388
scenario also results in emission reduction in Tricycle BEV 496,116 2,621,797
the transport sector by 55.37 million tons of Motorcycle BEV 2,667,941 10,751,740
carbon dioxide equivalent (MTCO2e) in 2050.
Bus BEV 8,584 19,149
Toal EVs 4,809,330 20,289,017
The CES, on the other hand, is more aggressive
for the industry, wherein the EV share of the EV Charging Stations 173,442 808,481
total fleet by 2050 is at least 50% starting 2040. Source: PEP 2023 - 2050
This will cover all sectors except for household,
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which has an indicated target of ten percent (10%) share of the total fleet by 2050. Motorcycles and tricycles are
expected to drive EV adoption in the country as they are regarded as the primary mode of transport across all
regions of the country. In addition, it has a lower upfront cost and is accessible to most consumers. The target per
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vehicle type of other covered vehicles is as follows:

• Tricycles/motorcycles – Fifty percent (50%) EV share in the total fleet by 2030 and increasing to 60% by 2040
(onwards to 2050);
• Cars / SUVs / UVs – Twenty-five percent (25%) EV share by 2030 and increasing to 50% by 2040 (onwards to 2050).
• Buses – Ten percent (10%) EV share by 2030 and increasing to 15% by 2040 (onwards to 2050).
The CES will have an additional energy demand of 19,377.98 GWh or 2.21 GW of power requirement by 2050. It is
also estimated that emission reduction in the transport sector will reach 297.43 MCTO2e by 2050.
EVs and EVCS Component
To enhance EV utilization through a phased approach, the CREVI provides action plans to encourage EVs and
EVCS use, accelerate the refleeting mandates for EVs, encourage government and private sectors to transition
to EVs, and facilitate the demonstration and deployment of EVs. The goal is to gradually and efficiently integrate
EVs into our transportation system, leading to a decrease in carbon emissions and the promotion of sustainable
transportation.
Figure 47. EV Parking and EVs at the DOE

compound in BGC, Taguig City
Furthermore, the CREVI emphasizes the importance
of integrating EVCS with clean energy sources.
It also calls for the alignment of the EV Incentive
Strategy (EVIS) with the goals set by the CREVI. The
standardization of EVCS, EVs, and their installation/
construction is another crucial aspect highlighted
by CREVI. Additionally, CREVI advocates for the
availability of open, public data on EVs and EVCS, the
implementation of fiscal and non-fiscal incentives,
and the promotion of electric vehicle utilization in local
and tourism sectors. It also addresses concerns about
waste management, recycling, and transitioning
from internal combustion engine vehicles to EVs in
shaping transport policies.
Manufacturing component
To strengthen the manufacturing capabilities of electric vehicles (EVs), CREVI emphasizes the implementation
of pilot programs for local production of EVs and EVCS parts and components. It also highlights the importance
of supporting mineral refining processes to purify local reserves of nickel and other minerals used in battery
production. These initiatives aim to enhance the competitiveness of EV manufacturing and establish the country
as a major player in the global EV and EVCS market.
Human Resource Development Component
The emphasis on HRD will be on developing skills and expertise in the manufacturing and maintenance of EVs
and EVCS, as well as its parts and components. This includes promoting local businesses through entrepreneurial
models within the local EV supply chain and enhancing knowledge in the deployment of EVs and EVCS at the
local level. The goal is to ensure efficient and safe technical support services supported by strategic international
partnerships.
Research and Development Component
CREVI strongly emphasizes research and development in key areas such as battery storage, battery manufacturing,
and EV manufacturing. These areas are crucial for advancing and refining technologies within the local electric
vehicle (EV) industry. The R&D efforts aim to optimize energy storage, enhance production processes, and
improve the design and performance of EVs. These initiatives are essential for driving progress and innovation in
the local EV sector.
Advantage of using EVs
The operational efficiency of EVs is influenced by various factors, including the driver’s behavior, traffic conditions,
vehicle auxiliary operations, and battery quality, among others. Compared to conventional vehicles, EVs are
generally perceived to be more efficient in fuel consumption.
Table 50. Vehicle Average Fuel Consumption Table 50 shows that battery EV
(BEV) or pure EV (PEV) is the most
Internal Battery/Pure
Combustion Hybrid Electric efficient vehicle variant compared to
Engine Vehicle (HEV) Vehicle ICEV and HEV, with an average fuel
Vehicle (ICEV) (BEV/PEV) consumption of 6 km/L. At an average
electricity rate of PhP 11.00 per kWh,
Average Estimated fuel
consumption
14 km/L 20 km/L 6 km/L this can be translated to ~PhP 1.83 per
km and avoided fuel consumption of
Equivalent Estimated 7.14 liters for every 100 km drive. On
PhP 5.00/km* PhP 3.50/km* PhP 1.83/km**
pesos per kilometer the other hand, ICEV has an average
fuel consumption of ~14 km/L while an
Fuel consumption per
7.14 L/100 km 6.00 L/100 km HEV has an average fuel consumption
100 km
of 20 km/L. With an average gasoline
Fuel avioded per 100 km - 2.14 L/100 km 7.14 L/100 km price of PhP 70.00 per liter, this can be
translated to ~PhP 5.00/km for ICEV
* Average gasoline price PhP 70.00 per liter and ~PhP 3.50/km for BEV, with an
** Average electricity rate PhP 11.00 per kWh
Source: PEP 2023-2050 avoided fuel consumption of 2.14 liters
per 100 km drive.
The estimated unit cost of an HEV is PhP 1.8 million, PHEV and BEV costs around PhP 2.5 million, E-Motorcycles
cost around PhP 190,000, an E-Trike costs around PhP 350,000, and an E-Bus costs PhP 25 million. The estimated
cost of an EVCS that can charge four-wheeled EVs, E-Trikes, and E-Motorcycles is PhP 0.5 million. An EVCS that
can charge an E-Bus with 80 kWDC charger costs around PhP 4.5 million. On the average, an EVCS can charge
20 units of 4-wheeled EVs in a day or 30 units of E-Tricycle or E-Motorcycles.
Table 51. EV and EVCS Investment Requirement
EV/EVCS Targets Investment Requirements (PhP Billion)
Vehicle Type EV Type No. of EVs REF No. of EVs CES
Cars (Sedan, SUV, UV) HEV/PHEV/BEV 1,636,689 4,922.14 6,896,331 10,607.51
Tricycle BEV 496,116 262.15 2,621,797 614.82
Motorcycle BEV 2,667,941 625.19 10,751,740 1,236.81
Bus BEV 8,584 316.67 19,149 330.73
Total EVs 4,809,330 6,126.15 20,289,017 12,789.87
EV Charging Stations 173,442 1,848.68 808,481 355.23
Investment cost incorporated a 3% annual increase to consider inflation rate

The EVIDA will require a total of 1,636,689 units of 4-wheeled EVs under REF scenario by 2050. This will require a
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total investment cost of PhP 4.92 trillion. A total of 496,116 units of E-Trike will be needed by 2050, which will entail
an investment cost of PhP 262.15 billion. Around 2.6 million E-Motorcycles will be needed for the EVIDA by 2050,
and 8,584 E-Bus will be needed by 2050. This will require investment costs of PhP 625.19 billion and PhP 316.67
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billion, respectively. This will require 173,442 EVCS to cater to these EVs, which will entail a total investment cost of
PhP 1.84 trillion. The total number of jobs generated under the REF scenario will be 117,243 by 2050.
Under the CES, the program has estimated that 6,896,331 units of four-wheeled EVs will be needed by 2050,
requiring an investment cost of PhP 10.6 trillion. About 2.62 million units of E-Trike will be needed by 2050, with a
total investment cost of PhP 614.82 billion. A total of 10.75 million units of E-Motorcycles will be needed by 2050,
which will require a total investment cost of PhP 1.23 trillion. For the 19,149 units of E-Bus requirement by 2050,
a total investment cost of PhP 330.73 billion will be needed. The total required EVCS by 2050 is 808,481 that will
entail a total investment cost of PhP 355.23 billion. It is estimated that a total of 431,681 by 2050. It is estimated that
431,681 total jobs will be created by 2050.
Alternative Fuels
DOE is committed to promoting the use of locally accessible and indigenous energy sources to enhance the
country’s energy security. One of the key objectives is to achieve efficient fuel diversification by harnessing new
and emerging technologies as well as alternative fuels. To accomplish this, the DOE actively implements various
policies, programs, and initiatives in research and development.
By leveraging the potential of locally accessible and indigenous energy sources, the DOE aims to reduce reliance
on imported energy and enhance the country’s energy self-sufficiency. This strengthens the energy sector and
contributes to national development and resilience.
New And Emerging Technologies (NAET)
DOE implemented several projects which provided valuable information towards the development and
mainstreaming of NAET. One of these is revolutionizing the marine transportation system through the continuous
monitoring of the development of solar-assisted electric motorboats or the SESSY E-Boat (Safe, Efficient, and
Sustainable Solar-Assisted Plug-In Electric Boat for Tourism and Transport) Project.
Forging partnerships through agreements provides Figure 48. Safe, Efficient, and Sustainable Solar-
opportunities to establish a framework and to jointly Assisted Plug-In Electric Boat (SESSY E-Boat)
conduct innovative and cooperative research and
development (R&D) activities for the review, evaluation,
monitoring and implementation of programs under
the Science and Technology for Energy Application
(STEA) that focus on alternative and innovative energy
technologies aligned with the government thrust of
ensuring security and addressing air pollution, and to
ensure effective and efficient utilization of government
resources.
Hydrogen Utilization
Hydrogen utilization in the energy sector has emerged as a significant pathway for sustainable energy transition
globally. The Philippines recognizes its role in decarbonizing hard-to-abate sectors such as transportation,
industry, and electricity generation. By leveraging hydrogen as a clean energy carrier, the transition to a low-
carbon economy can be accelerated, building a more
resilient and sustainable energy future.
DOE issued Department Circular No. DC 2024-01- Figure 49. Fuel Cell R&D and Testing Center at the
0001, called the “Hydrogen Energy Guidelines,” which DOST Compound, Taguig City
provides the national policy, general framework,
roadmap, and guidelines for hydrogen in the energy
sector. This aims to accelerate the development and
investment in hydrogen production and utilization in
the energy sector by consolidating and harmonizing
all existing issuances for a safe, effective, and efficient
system. This will include all activities related to research
and development (R&D), establishments/construction,
production, storage, transmission, distribution,
utilization, operation, and maintenance of hydrogen
projects or facilities.
The DOE also partnered with the DOST Industrial Technology and Development Institute (ITDI) to establish the
Fuel Cell R&D and Testing Facility under a Memorandum of Agreement (MOA). This focuses on the R&D of fuel
cell technology, emphasizing development and innovation for specific cell components. The facility will also
conduct performance and durability testing that will address the current limitations of fuel cells. DOE is inviting
collaboration with science and technology institutions to accelerate industry development, while also seeking for
partners on the prototyping and further R&D on fuel cell technology applications.
Philippine Transport Vehicles Fuel Economy Labeling Program (VFELP)
Under the EEC Act, DOE issued DC No. DC2023-05-0017 or the (VFELP) Guidelines and DC No. DC2023- 05-0016
or the Fuel Economy Performance Rating (FEPR) Guidelines for Road Transport Vehicles. This aims to gather and
benchmark fuel economy performance data in the road transport sector. This will also lead to the empowerment
of consumers to validate information provided by vehicle manufacturers, importers, and dealers, which will
facilitate the selection of fuel-efficient transport vehicles by consumers, the realization of fuel savings, elimination
of fuel-inefficient vehicles in the market, and reduction of GHG emissions.
To support VFELP, the establishment of a Vehicle Performance Assessment Facility (VPAF) is needed to test, verify,
and gather first-hand data on the fuel economy of transport vehicles manufactured and assembled, including
imported vehicles. This aims to have the feasibility of establishing a vehicle performance assessment facility for
road transport vehicles.
DOE is looking for partners in developing engineering design and construction of facilities required to support
the vehicle labeling and research activity. In addition, DOE is looking for partners in the conduct of Fuel Economy
Run to determine the vehicle’s energy performance in actual driving conditions.
Database Online Application System
DOE will establish a database online application system for the processing and approval of all related services
that would provide real-time requests and monitoring of the status of the application, real-time upgrading of
the database, and calculation of approximate fuel consumption and CO2 emission of the transport vehicles. This
includes applications for company registration, transport vehicle registration, and fuel economy label issuance
for vehicle manufacturers, importers, distributors, dealers, and rebuilders.
Sustainable Aviation Fuel (SAF)
DOE is dedicated to working closely with relevant stakeholders in the aviation business and oil industry. All efforts
are aimed at making SAF available in the market as soon as possible and integrating it into the aviation industry
through cooperation, innovation, and information exchange. DOE will forge a memorandum of agreement with
State Universities and Colleges (SUCs) for the conduct of R&D activities, specifically in the assessment of potential
feedstock for SAF.
Conservation
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INCENTIVES IN THE ENERGY SECTOR
The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act was signed on 26 March 2021. It aims to
lower corporate income tax rates and rationalize fiscal incentives to better attract local and foreign investments
in the Philippines. It offered a new incentive regime for qualified projects. BOI will formulate the Strategic
Investment Priorities Plan (SIPP), which contains the list of priority activities for investment promotion and
facilitation. It categorizes activities into Industry Tiers I, II, and III.
Tier I includes activities listed in the 2020 Investment Priorities Plan (IPP), unless listed in Tier II or Tier III.
a. Preferred Activities – Alternative Energy Vehicles Charging/Refueling stations; LNG Storage and
Regasification Facility and Pipeline for Oil and Gas, and Energy (power generation plants utilizing
conventional fuels; waste heat; and BESS)
b. Activities Governed by Special Laws – Refining, Storage, Marketing, and Distribution of Petroleum
Products; Power Generation using Renewable Energy; Energy Efficiency and Conservation Programs;
Electric Vehicles Industry Development related activities
Tier II Energy projects are:

a. Industrial Value-Chain Gaps – Copper and Nickel Production (Battery component)
b. Green ecosystems – Electric Vehicle Assembly, manufacture of EV parts, components, and systems;
establishments and operations of EV Infrastructure, i.e., charging stations; Renewable Energy; Energy
Efficiency and conservation; Energy storage technologies
Energy activities governed by special laws can choose what set of incentives to avail.
Incentives under the CREATE Act of the above-mentioned activities are as follows:
Incentives:
• Income tax holiday - four (4) to seven (7) years, depending on the location and Tier category;
• Duty-free importation;
• Five percent (5%) Special Corporate; and
• Income Tax (SCIT) after ITH - five (5) or ten (10) years, depending on the location, activity, and Tier category
Additional Incentives or Enhanced Deductions five (5) years Domestic and Export ten (10) years ED/SCIT
depending on the location, activity, and Tier category
• Additional Deduction on R&D;
• 50% additional deduction on labor expense;
• 100% Additional Deduction on training expenses (Filipino Employees);
• 50% Additional Deduction on domestic input expense;
• 50% Additional Deduction on power expense;
• Deduction for reinvestment allowance to the manufacturing industry;
• Depreciation allowance of the assets acquired for the entity’s production of goods and services; and
• Enhanced NOLCO
SPECIAL LAWS GOVERNING ENERGY ACTIVITIES, PROGRAMS,

PROJECTS, AND INITIATIVES
OIL, NATURAL GAS, NATIVE HYDROGEN
Presidential Decree (PD) No. 87, or the “Oil Exploration and Development Act of 1972”, provides for the
following incentives to petroleum service contractors:
• Exemption from payment of tariff duties and compensating tax on the importation of machinery and
equipment, spare parts, and all materials required for petroleum operations;
• Reimbursement of operating expenses of up to 70% of gross proceeds from production with carry−forward
of unrecovered costs;
• A service fee of up to 40% of net production income;
Incentives
• FPIA of up to seven and a half percent (7.5 %) of the gross proceeds for service contracts with a minimum
Filipino company participation of 15%;
• Exemption from all taxes except income tax;
• Easy repatriation of investments and profits;
• Income tax obligation paid out of the government’s share;
• Special income tax of eight percent (8%) of gross Philippine income for subcontractors;
• Special income tax of 15% of Philippine income for foreign employees of service contractors and sub-
contractors; and
• Free market determination of crude oil prices, i.e., prices realized in a transaction between independent
persons dealing at arms−length
COAL
P.D. 1174 amending P.D. 972, otherwise known as “The Coal Development Act of 1976” provides for the
following incentives to coal operating contractors:
• Exemption from all taxes except income tax;
• Exemption from payment of tariff duties and compensating tax on the importation of machinery and
equipment, spare parts, and all materials required for coal operations;
• Allow the entry of alien technical personnel;
• Right to ingress to and egress from the COC areas; and
• Recovery of operating expenses
RENEWABLE ENERGY LAW

R.A. 9513 or “An Act Promoting the Development, Utilization, and Commercialization of Renewable
Energy Resources and for Other Purposes,” provides for the following incentives both for power and non-
power applications. Incentives will be in proportion to and to the extent of the RE component.
Fiscal Incentives:
• Income tax holiday for the first seven (7) years;
• Ten (10) years of duty−free importation of RE machinery, equipment, and materials;
• Special realty tax rates not exceeding one and a half percent (1.5%) on equipment and machinery, and other
improvements;
• Net operating loss carryover (NOLCO) of the RE Developer during the first three (3) years for the next seven
(7) consecutive taxable years;
• Ten Percent (10%) Corporate Tax Rate after ITH;
• Accelerated Depreciation of plant, machinery, and equipment;
• Zero Percent (0%) Value−Added Tax Rate on the sale of fuel or power generated from RE sources purchases
of local supply of goods, properties, and services;
• Tax Exemption of Carbon Credits;
• Cash Incentive of Renewable Energy
• Developers for Missionary Electrification equivalent to 50% of the universal charge;
• 100% Tax Credit on Domestic Capital Equipment and Services of the value of the VAT and customs duties;
• Exemption from the Universal Charge on the sale of power and electricity;
• Payment of Transmission Charges on a per kWh basis equivalent to the average per kWh rate of all other
electricity transmitted through the grid;
• Entitlement to RE incentives of the RE component of Hybrid and Cogeneration Systems; and
• Must dispatch and priority dispatch in the WESM
Incentives for RE Commercialization (Manufacturers, Fabricators, and Suppliers)

• Tax and Duty−free Importation of Components, Parts, and Materials;
• Tax Credit on Domestic Capital Components, Parts, and Materials equivalent to 100% of VAT;
• Zero−rated VAT transactions - all manufacturers, fabricators, and suppliers of the value of the VAT and
customs duties; and
• ITH for seven (7) years
BIOFUELS
R.A. 9367 known as the “Biofuels Act of 2006” provides for the following incentives for activities involving the
production, distribution, and use of locally-produced biofuels:
• Income Tax Holiday;
• Exemption from taxes and duties on imported spare parts;
• Exemption from wharfage dues and export tax, duty, impost, and fees;
• Modified Duty Rate for capital equipment under E.O. 528;
• Tax credits;
• Zero Percent (0%) Specific Tax on local or imported biofuels components per liter of volume;
• VAT Exemption on the sale of raw materials used in the production of biofuels;
• Exemption on wastewater charges under RA 9275 of all water effluents from the production of biofuels; and
• Financial Assistance from government financial institutions, such as Development Bank of the Philippines
(DBP), Land Bank of the Philippines (LBP), and other government institutions providing financial services
DOWNSTREAM OIL INDUSTRY

R.A. 8479, or “An Act Deregulating The Downstream Oil Industry, and For Other Purposes” provides
incentives for downstream oil industry participants.
Fiscal Incentives for a period of five (5) years:

• Income Tax Holiday;
• Additional deduction on labor expense;
• Three Percent (3%) Duty and Value−Added Tax (VAT) on imported capital equipment;
• Tax Credit on domestic capital equipment;
• Exemption from contractor’s tax;
• Unrestricted use of consigned equipment;
• Exemption from real property tax on
• production equipment or machineries; and
• Exemption from taxes and duties on imported spare parts
ENERGY EFFICIENCY AND CONSERVATION

RA 11285 known as the “Energy Efficiency and Conservation Act” an act institutionalizing Energy Efficiency
and Conservation, Enhancing the Efficient use of Energy, and Granting Incentives to Energy Efficiency and
Conservation Projects.
Fiscal Incentives under CREATE for ten (10) years

Non-fiscal incentives:
• Provision of awards and recognition for innovations in energy efficiency and conservation best practices,
and successful energy efficiency projects; and
• Provision of Technical Assistance from government agencies in the development and promotion of energy-
efficient technologies
ELECTRIC VEHICLES
RA 11697 known as the “Electric Vehicle Industry Act”, an act providing for the Development of the Electric
Vehicle Industry involving manufacturing, importation, and utilization of EV and EVCS battery, parts and
components.
Fiscal Incentives:
A. Manufacturing - Fiscal incentives and length of time of availment under CREATE
B. Importation
1. Importation of completely built units of EVs under RA No, 10963 or the “Tax Reform for Acceleration and
Inclusion (TRAIN)”
2. Importation of completely built units of EVCS - Exemption from duties for eight (8) years years from the
effectivity of EVIDA.
3. Importation of capital equipment and components used in the manufacture or assembly of EVs and
construction or installation of EVCS - Fiscal incentives and length of time of availment under CREATE
C. Utilization - 30% discount for Battery Electric Vehicles (BEVs) and 15% discount for Hybrid Electric Vehicles
(HEVs) from the payment of the motor vehicle user’s charge imposed by LTO under RA No. 8794 or “Motor
Vehicle User’s Charge Act” as well as vehicle inspection fees for eight (8) years from the effectivity of EVIDA.
Non-fiscal incentives:
• For EV Users: Priority registration and renewal of registration, and issuance of special plate; Provision of
Incentives
awards and recognition for innovations in energy efficiency and conservation best practices; and successful
energy efficiency projects;
• Provision of Technical Assistance from Government Agencies in the development and promotion of energy-
efficient technologies;
• Exemption from the mandatory vehicular volume reduction program;
• Expeditious processing of LTFRB applications for a franchise to operate and renewal for PUV operators
exclusively utilizing EVs;
• Availment of TESDA Training on EV assembly, use, maintenance, and repair; and
• For EV manufacturers, allow the employment of expert foreign nationals under a technology transfer program
EXECUTIVE ORDER NO. 12 s. 2023 Customs Modernization and Tariff Act.

• Zero tariff rate on EVs except hybrid EV (HEV).
INCENTIVES FOR PEZA REGISTERED COMPANY

• Four (4) to eight (8) years income tax holiday (ITH);
• Special five percent (5%) tax rate on gross income after ITH;
• Tax and Duty Exemption on imported capital equipment;
• Exemption from 12% input VAT on allowable local purchase of goods and services;
• Exemption from wharfage dues; and
• Employment of foreign nationals
ENERGY VIRTUAL ONE-STOP SHOP (EVOSS) ACT

The Administration recognizes the vital role the energy industry plays in promoting economic growth. Initiatives
that support business-friendly practices in the energy industry are being actively promoted by the Department
of Energy (DOE). Republic Act No. 11234 also known as the “Energy Virtual One-Stop Shop (EVOSS) Act”, is an
online portal created to streamline and speed up the processes associated with power generation, transmission,
and distribution projects. By standardizing forms and procedures, it aims to lower transaction costs, increase
accountability and transparency, and improve bureaucratic efficiency. Energy project developers and investors
can now submit applications and the necessary documentation online, as well as track the status of their
applications, through the EVOSS portal.
As of this writing, the EVOSS System includes 53 streamlined process of ten (10) national government
agencies and entities, namely, Department of Energy (DOE), Energy Regulatory Commission (ERC), National
Electrification Administration (NEA), National Power Corporation (NPC), National Transmission Corporation
(TransCo), Department of Labor and Employment (DOLE), Department of Justice (DOJ), National Commission
of Indigenous Peoples (NCIP), Independent Electricity Market Operator of the Philippines (IEMOP), and National
Grid Corporation of the Philippines (NGCP) for the Exemption of System Impact Study. There are also five (5)
local government units, namely, Bay, Burgos, Ilocos Norte, Cagayan de Oro City, Iloilo City, and Ormoc City,
that incorporated their processes for the issuance of business permits. Efforts are in progress to include other
government agencies and entities crucial to the implementation of energy projects.
The EVOSS System received 1,174 pre-applications for the RE Contract as of March 2024, 838 of these had already
been completed, 78 are undergoing evaluations, and 258 are still incomplete, had been disapproved, withdrawn
or are not qualified. A total of 9,993 applications across agencies were received, 6,064 were approved, 3,653
were either withdrawn, disapproved, incomplete, or duplicate submissions, and 276 applications are still under
evaluation.

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Energy

Figure 1. Historical Petroleum Production (1979-2023)

Source: DOE-Energy Resource Development Bureau, as of 31 December 2023

Table 1. List of Active Petroleum Service Contracts

No. Operator PSC No. Location Area (Has)

Source: DOE-Energy Resource Development Bureau, as of 08 March 2024

Petroleum Industry Developments Figure 2. Platform Scale Model handed to

Exploring for “Future Fuels”

Classification Oil (MMB) Gas (BCF) Condensate

Reserves 3.74 273 6.273

Table 3. Upstream Oil and Gas Roadmap

Short Term Medium Term Long Term

Philippine Conventional Energy Contracting Program (PCECP)

Area No. Location Resource

1st BARMM Conventional Energy Bid Round

PDA - BC - 1 Lanao del Sur Coal

PDA - BP - 1 Onshore Cotabato Basin Petroleum

PDA - BP - 2 Offshore Sulu Sea Basin Petroleum

PDA - BP - 3 Offshore Sulu Sea Basin Petroleum

2024 Philippine Bid Round

PDA - PD - 1 Offshore Northwest Palawan Petroleum for Development and Production

PDA - PD - 2 Onshore Visayan Basin Petroleum for Development and Production

PDA - PH - 1 Onshore Central Luzon Native Hydrogen

PDA - PH - 1 Onshore Central Luzon Native Hydrogen

• DC Providing Guidelines on Petroleum Data Declassification and Free Data Access;

Long Term 42.14 103,295 4,582 1,875,674

Figure 4. Coal Statistics (in Million Metric Tons)

Source: DOE-Energy Resource Development Bureau, as of December 2023

Table 6. Coal Consumption by Sector

Other Countries 95,011.82 0.26

Plans and Programs

Philippine Conventional Energy Contracting Program (PCECP)

Figure 5. Summary of Regional Coal Reserves

Source: DOE-Energy Resource Development Bureau, as of December 2023

Table 8. List of Active Coal Operating Contracts

No. Operator COC No. Location Area (Has)

4 Filipinas (Prefab) Systems, Inc. 68 Oriental Mindoro 8,000

5 Filipinas (Prefab) Systems, Inc. 78 Zamboanga Sibugay 4,000

6 A Blackstone Energy Corp. 93 Zamboanga Sibugay 1,000

7 D.M. Wenceslao and Associates, Inc. 116 Cagayan Valley 3,000

8 D.M. Wenceslao and Associates, Inc. 123 Cagayan Valley 1,000

9 Lima Coal Development Corporation 125 Albay 1,542

12 Samaju Corporation 129 Albay 547

17 Lima Coal Development Corp. 153 Sorsogon 3,000

18 Titan Mining and Exploration Corp. 159 Davao Oriental 7,000

19 BBB Mining and Energy Corp. 173 Cebu 4,000

20 Titan Mining and Exploration Corp. 166** Zamboanga Sibugay 4,000

21 Blackgem Resources & Energy Inc. 169** Davao Oriental 6,000

25 EFH Energy Tribe Corporation 205 Cebu 9,000

26 Sunwest Oil & Gas Incorporated 206 Albay 3,960

27 Grand Thermal Power Corporation 207 Agusan del Sur 7,000

28 Vintage - 21 Coal Mining Corporation 208 Davao Oriental 4,000

Table 9. Projected Investments in Coal

Term Additional Additional

Short Term 60.00 3,066 30.00 73,479

Medium Term 5.00 256 80.00 195,944

Long Term 45.00 2,300 65.00 159,205

Total 110.00 5,622 175.00 428,628

No. of RE Installed Capacity

Hydropower 429 18,902.96 1,189.24

1st Generation Sugarcane, Molasses, Cassava, Sweet Sorghum, Nipa Sap**

Cellulosic Materials, Grass, Agricultural Waste Material, Forest Waste and