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THE PHILIPPINES:
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Second
largest producer of geothermal energy in the world behind the United States.
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Renewable
energy to provide up to 40% of primary energy requirements by 2013 –
Department of Energy
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Sustained
economic growth for 28 consecutive quarters.
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World Bank
quadruples loans for infrastructure and energy, cites strong economic growth
and relative political calm.
TOWARDS ENERGY
SELF-RELIANCE
Among the economic reform
programs of President Arroyo is the rapid development and overhauling of the
Philippine energy sector. This is part of the aggressive fiscal policies and
reform agenda of the President – an agenda that has led to phenomenal growth
and sustained economic development over the past twenty-eight (28)
consecutive quarters.
Through a pragmatic
privatization program that is expected to generate more than $4 billion by
the end of 2009, the Philippines is actively enticing foreign investors to
buy into the Philippine energy sector. With the needed funds, the
Philippines looks to sustaining its substantial investments in alternate
sources of energy for power generation, thereby reducing its dependence on
foreign crude oil.
Reliable and affordable
energy is essential to further growth and development. With this in
mind, President Arroyo issued Executive Order 215 opening up the power
generation sector to private investors.
In the second half of 2007,
the Philippine Government made significant progress in its privatization
program with the successful sales of the Masinloc power plant for $930
million, the Calaca Coal-Fired Thermal power plant for $786.53 million, and
the 175-megawatt Ambuklao-Binga Hydropower plants for $325 million. The
completion of the privatization of some thirty-one (31) power plants will
ultimately improve the delivery of power services to the people and reduce
power rates in the country. This is one of two recent directives of
President Arroyo. The other being the acceleration of the power
privatization program.
In a move to advance the
Philippines’ energy independence program, President Arroyo met with
officials of Aragon Financial Group (AFG) in Davos, Switzerland, at the
sidelines of the World Economic Forum. AFG is assisting oil and natural gas
companies that need funding from financial partners such as private
investors, venture capital, equity and institutional and banking sources.
Partnership with such groups is seen to aid the Government in its policy to
ensure continuous and adequate supply of energy through integrated and
intensive exploration, production, management and development of the
country's indigenous energy resources such as oil and natural gas.
The Philippines is the
world's second largest producer of geothermal power, behind the United
States. Geothermal power accounts for about 22% of the country’s mix of
power sources and is the largest share of indigenous energy production in
the Philippines. Hydropower is the next larger indigenous energy available
in the country, with solar and wind energy as other viable indigenous
sources.
The Government intends to
tap this abundant natural resource to complement the rural electrification
program of the President. Thirty (30) islands are currently being targeted
to be the recipient of these renewable energy hybrid systems, while about
1500 barangays (towns) will benefit using renewable energy systems.
Another aspect in the field
of energy which President Arroyo is actively pursuing is encouraging foreign
investors to participate in the development of biofuels or alternative
fuels. Through the passage of Republic Act 9367, otherwise the program known
as the Biofuels Act, in November 2006 and signed into law by President
Arroyo in January 2007, the Philippines has embarked on an aggressive
program to develop, promote, manufacture, and distribute, alternative fuels,
such as, bioethanol and biodiesel as substitute sources of traditional
fuels. The Alternative Fuels Program is one of the five (5) key components
of the Arroyo Administration’s Energy Independence Agenda, which outlines
the roadmap that will lead to the country’s attainment of 60% energy
self--sufficiency by 2010.
The Alternative Fuels
Program has four (4) major sub programs, namely Biodiesel Program,
Bioethanol Program, Natural Gas Vehicle Program for Public Transport (NGVPPT),
and Autogas Program. Other technologies advocated are hybrid, fuel cell,
hydrogen and electric vehicles.
With these programs in
place, together with the Philippine Energy Plan, the Philippines is poised
to attain energy self-sufficiency in the next decade.
The Philippines is at the forefront of the biofuels industry and has
become one of the most attractive investment sites for bio-fuels in the
world.
Chris
de Lavigne
Global
Vice President
Front
and Sullivan, London
The Philippines has a tremendous range of assets to draw upon for its
development – a relatively educated populace with proficiency in English,
plentiful managerial and entrepreneurial talent; global demand for its
labor force, and as confirmed by a huge number of Filipino overseas
workers (8 million, or 25% of active workforce inside the country);
abundant natural resources including mineral and gas resources…
World Bank
Country Report
Source: "Updates" Issue 2 - 2008
Philippine Embassy in Washington |
