Energy
From The Report: Philippines 2019
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The Philippines’ rapid development has outpaced the capacity of the energy sector to meet surging demand. In response, long-term policies have been implemented to promote upstream investment, diversify energy sources and drive down the cost of electricity. Notable projects include the construction of the country’s first liquefied natural gas import terminal and regasification facility, as well as the Visayas-Mindanao Interconnection Project, which should improve the reliability and efficiency of energy supply. Moreover, while disputes with China over sovereignty in the South China Sea – also known as the West Philippine Sea – have hindered upstream development, recent agreements on exploration and development activities in these areas could offset declining reserves at the Malampaya gas field, the Philippines’ primary domestic source of gas. This chapter also contains interviews with Erramon Aboitiz, CEO and President, Aboitiz Equity Ventures and Aboitiz Power Corporation; and Dennis A Uy, president and CEO, Phoenix Petroleum.

Articles from this Chapter

Overview

Seeking a balance: New investments in oil exploration, gas imports and renewable capacity aim to meet surging consumer demand
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While macroeconomic expansion and the government’s infrastructure development agenda have strengthened the Philippines’ trade and investment profile, rapid development has outpaced the capacity of the energy sector to meet surging consumer demand. In response, long-term policies and international agreements have been implemented in an effort to promote upstream investment, diversify energy sources and drive down the cost of electricity. Notable projects include the construction of the country’s…

Interview

Capacity boost: Erramon Aboitiz, CEO and President, Aboitiz Equity Ventures and Aboitiz Power Corporation, on ensuring power producers remain competitive and sustainable as demand rises
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Interview:Erramon Aboitiz How do you assess the current condition of the energy generation market? ERRAMON ABOITIZ: With the entry of new players, the electricity market has become very competitive – especially in the contestable market. New capacity has also been created to meet growing demand, and some regions such as Mindanao now have an electricity surplus. This is a clear sign of the positive impact of the Electric Power Industry Reform Act of 2001: investment is pouring into the sector…

Analysis

Metering progress: The liberalisation of the electricity market was intended to lower costs, though consumers are still waiting for savings
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The Philippines’ electricity market has recently undergone major reform, as control of the Wholesale Electricity Spot Market (WESM) passed from the state to a new, independent body. The transition was formally undertaken in September 2018 with the creation of the Independent Electricity Market Operator of the Philippines (IEMOP) and fulfils an aim of the Electric Power Industry Reform Act of 2001 to establish a “strong and purely independent regulatory body and system to ensure consumer protection…

Analysis

Multiplier effect: A project to unify the archipelago’s separate electricity grids is expected to yield significant downstream economic benefits
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With territory dispersed across more than 7000 islands, the nationwide provision of affordable power has long posed a major challenge for the Philippines. To alleviate that burden, the government has envisioned the unification of its separate energy networks into a single, national grid, which will facilitate the sharing of electricity reserves among the country’s island groups, and improve efficiency in the commercial and residential distribution of electricity. Recent & Near-term Developments Overseen…

Interview

The right mix: Dennis A Uy, President and CEO, Phoenix Petroleum, on liquefied natural gas (LNG) as a solution to energy needs
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Interview:Dennis A Uy How would you assess the environmental impact of the energy mix in the Philippines, and to what extent does it meet domestic demand? DENNIS A UY: Sustainability, environmental impact, operational economics and a clear understanding of each energy source must be taken into consideration when planning the energy mix. In the worldwide pivot towards cleaner sources of energy, LNG has the potential to play an important role in evolving the energy landscape of the Philippines.…

Analysis

Powering growth: Public and private stakeholders have turned to gas imports to meet rapidly rising electricity demand in the near term
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The private sector is accelerating efforts to meet rising domestic energy demand by fast-tracking the development of facilities to import and process liquefied natural gas (LNG) as domestic supplies dwindle. In January 2019 Australia’s Energy World Corporation (EWC) announced that it had received final approval from the Department of Energy (DoE) under their new regulations to build an LNG import terminal and regasification facility on Pagbilao Grande Island, in the Philippines’ Quezon province.…

Overview

Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies
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Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…

Overview

Cheaper and greener: As costs decline, renewable sources are seeing an inexorable rise, particularly among developing economies
OBG
plus

Although the world remains largely dependent upon fossil fuels for power generation, a gradual transition towards renewable sources has been taking place since the 1990s, underpinned by multilateral deals such as the Kyoto Protocol, the Doha Amendment and, more recently, the Paris Agreement. Investment and development in renewable technologies has historically been led by developed countries, however, in recent years the renewable energy industry has expanded in emerging markets. In 2018 these markets accounted for nearly 70% of new global investment in renewables. Taking the Lead Emerging markets exceeded developed economies in terms…