Photo: Oil Refinery Philippine Economic Zone Authority (PEZA) director general Charito Plaza has invited oil companies in the United Arab Emirates (UAE) to build and operate oil refineries in the country. During the Global Biz with PEZA featuring the United Arab Emirates held in Dubai Tuesday, Plaza said oil companies based in the UAE can look into opportunities in making the Philippines its hub in the Southeast Asian region. “We seek your help to talk with big oil companies here in UAE as we attract them to locate in our island refinery ecozones, so to bring their oil deposits, stock it in the Philippines and have it refined there,” she said. Plaza added UAE firms can take advantage of the ease of doing business as PEZA offers a one-stop shop for processing investments within ecozones and enjoying fiscal incentives and lower corporate income tax rate with the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law. Island refinery ecozone is a new type of ecozone that PEZA is pursuing to help the country secure petroleum needs and lessen its vulnerability from oil supply and price disruptions in the world market. UAE is one of the biggest oil and gas producers in the world with a daily average production of 3 million barrels of petroleum and oil reserves of 100 billion barrels.  One-third of its economy depends on its oil and gas industry. Aside from setting up oil refinery ecozones, Plaza said UAE companies may also explore opportunities in establishing halal ecozones, as well as Islamic banking in the Philippines. She said there are only six locators from the UAE in PEZA zones with total investments amounting to PHP383 million and employing 1,049 personnel. By Kris Crismundo   Article courtesy of the Philippine News Agency

Photo credit: Philippine National Oil Company The Department of Energy (DOE) is reviewing the terms of reference (TOR) for the public bidding of consultancy services to do the feasibility study as the government aims its own oil reserve operation. During the Laging Handa briefing Wednesday, DOE Assistant Director Rodela Romero said after the failed bidding in getting an adviser to do a study on the establishment of Strategic Petroleum Reserve (SPR), the agency still targets to finish the study before the end of the Duterte administration. In September last year, the Philippine National Oil Company (PNOC) said it aims the establishment of SPR that will involve crude oil and petroleum importation, storage, and distribution facilities within and outside the country. Romero said the SPR program is a long-term plan and an oil contingency plan that aims to lessen the country’s vulnerability from the impact of supply and price disruptions in the world market. “So (it is an) assurance that we will be able to build the said strategic petroleum reserve through proper analysis, wherein the government will not incur any losses,” she said in Filipino. A few months after the onset of the pandemic, DOE Secretary Alfonso Cusi expressed his intention to build a stockpile of oil to take advantage of low prices of fuel products then, which plummeted below USD20 a barrel. The government aims to buy oil when prices are low, stock it, and use it for domestic consumption when prices are rising. This could be a solution to the present oil price woes, in which prices have been increasing for seven straight weeks now. In a statement last week, senatorial bet and former defense secretary Gilbert “Gibo” Teodoro called on the DOE and the PNOC to fast-track the national oil stockpiling program and be more proactive on energy issues. Moreover, Romero said the DOE has proposed to Congress to give authority to the agency to put up the SPR, “whether commercial or strategic”, to address impacts of oil supply and price disruptions. By Kris Crismundo   Article courtesy of the Philippine News Agency

Photo credit: Shell President Rodrigo Duterte on Friday slammed the Senate resolution recommending charges against Department of Energy (DOE) Secretary Alfonso Cusi and other officials over the approval of what lawmakers alleged was an anomalous sale of shares in the Malampaya gas field. In a statement, Duterte expressed "grave concern" over the Senate's adoption of the resolution, as it casts "undue, undeserved, and unwarranted aspersion" on key DOE officials. "The government values the critical role and contribution of the Malampaya Gas Field to energy security. I will not allow this valuable resource to be jeopardized and embroiled in the political antics of some members of the Senate," he said. Duterte affirmed that Cusi still has his full trust and confidence, and shall remain as the head of the energy department. He maintained that the national interest has been protected and the government's rights remain intact amid the developments involving the share sale and purchase agreement. "I am calling on our legislators to ensure that our ability to compete is not jeopardized by political intrigues and innuendoes. Leave business transactions in the capable hands of the business sector. Let us respect their business decisions while we protect our national interests," Duterte said. The resolution, penned by Senator Sherwin Gatchalian, recommends the filing of criminal and administrative charges before the Office of the Ombudsman and the Civil Service Commission against Cusi and other DOE officials for approving and recommending approval of the Chevron Philippines-UC Malampaya transaction. Gatchalian said the officials violated laws for allegedly railroading the approval to the sale of the 45-percent participating interest in the Malampaya gas project of Chevron Malampaya LLC Philippines, now known as UC 38 LLC, to UC Malampaya, an indirect subsidiary of Udenna Corporation, despite the lack of financial qualification. Duterte, however, said that the sale and purchase of the stock of Chevron Malampaya LLC was a private transaction between private entities that must be respected. He also reiterated that both foreign and local investments are "vital" to the economy. "We compete for them with other countries, and our ability to do so requires me to create and maintain an environment conducive to the entry of investors," he said. Duterte said that while he recognizes the Senate's power to conduct congressional probes in aid of legislation, this should be exercised "with prudence and circumspection, devoid of reckless accusations, and focused on improving existing laws". By Filane Mikee Cervantes   Article courtesy of the Philippine News Agency

Photo credit: DOE The Philippine Department of Energy (DOE) and the Russian State Atomic Energy Corporation (ROSATOM) on Thursday reaffirmed their collaborative efforts to explore the potential utilization of small modular reactor (SMR) technology in the Philippines during the Small Modular Reactors' Day. This event formed part of ROSATOM's Breakthrough Technologies for Sustainable Future Week, which was held at the sidelines of the World EXPO 2020. Under the definition of the International Atomic Energy Agency (IAEA), SMRs "are advanced nuclear reactors that have a power capacity of up to 300 MW(e) per unit, which is about one-third of the generating capacity of traditional nuclear power reactors". Because of their size, and the capability of pre-assembling most SMRs in factories, they are considered ideal for industrial utilization, as well as for use in remote areas with limited grid access. In a pre-recorded video message, Energy Secretary Alfonso Cusi stated that SMRs are a "game-changer in the global energy landscape", especially since they could be utilized in locations that are not suitable for large nuclear power plants (NPPs). "It is an attractive, viable, and doable option for the Philippines given that SMRs provide non-intermittent power supply for calamity-prone countries, their low-carbon footprint, predictable supply costs, and are tailored-fit for our country's archipelagic setting," Secretary Cusi emphasized. He expressed strong interest in Russian nuclear energy technology and its potential application in the Philippines after an official visit to Saint Petersburg, Russia, in 2017, where he witnessed the assembly and processing of the 70-megawatt Akademik Lomonosov floating co-generation plant in the Kamchatka region. In 2019, the DOE and ROSATOM signed a memorandum of intent in Moscow, Russia, on the conduct of a pre-feasibility study on SMR technology's applicability in the Philippine setting. Cusi also took the opportunity to express his gratitude to ROSATOM for their continuing support and guidance, as the Philippines continues to explore the safe utilization of nuclear energy under IAEA direction. ROSATOM Overseas President Evgeny Pakermanov emphasized that "SMR technologies offer an effective solution in the supply of stable, reliable, and environmentally-friendly power in island-countries". He added that Rosatom’s SMRs are among the world’s safest, proven, and state-of-the-art technologies, and that "the Russian SMR technology is becoming increasingly popular day-by-day, and international guests at ROSATOM’s SMR NPP day are testifying to it".   Article courtesy of the Philippine News Agency

The Philippine economy is expected to return to its 6 to 7-percent growth trajectory in 2022 after nearly two years of grappling with the pandemic despite the threat of the Omicron variant, according to the investment banking arm of the Metrobank Group. First Metro Investment Corporation (FMIC) said this year’s economic growth will be driven by sustained domestic demand, easing inflation, election expenditures, and accelerated government spending on infrastructure projects. “Notwithstanding the ongoing pandemic, and Omicron sparking the third wave of infections, we are still optimistic that Philippine growth will further accelerate and get back on its trajectory of 6-7 percent in 2022,” FMIC president Jose Patricio Dumlao said in a virtual briefing Tuesday. Dumlao said the economy registered a 4.9-percent growth in the first three quarters of 2021 and the growth momentum likely spilled over in the fourth quarter given further economic reopening and easing mobility restrictions. He added business and consumer confidence are also cautiously positive given wider availability of vaccines and relaxation of lockdowns, quarantine measures, and mobility restrictions. University of Asia and the Pacific (UA&P) economist Dr. Victor Abola said the 6 to 7 percent gross domestic product (GDP) projection this year will be led by the industry sector --both construction and manufacturing. Abola said services will still be the lagging sector as the pandemic measures hit hotels and restaurants. “The Philippine situation is that there is recovery but still on the way to reach the pre-pandemic levels,” he said. The country’s GDP posted a -9.5 percent full-year growth rate in 2020 compared to its 5.9 percent pre-pandemic performance in 2019. Abola said the business process outsourcing (BPO) is a major contributor to the resiliency of the economy amid the pandemic. “And it’s not the same as usual call centers, etc. You can see there are new, emerging segments and that is what companies are focusing on,” he said, citing insurance, life sciences, healthcare, and data analytics, among others. Aside from BPO revenues, FMIC chairman Francisco Sebastian said the overseas Filipino workers (OFW) remittances are boosting the economy. “These two things are not as sexy as other things like technology and telecoms… This is what is holding us up. OFW remittances continue to grow,” he said. By Leslie Gatpolintan   Article courtesy of the Philippine News Agency

Photo credit: Dimas Ardian/Bloomberg A lawmaker on Thursday called on the government to ensure that the country's power supply derived from the consumption of coal would not be adversely affected following Indonesia's decision to ban the export of coal to secure its local supply. In a statement, Senator Sherwin Gatchalian, chair of the Senate Energy Committee, called on the Department of Energy (DOE) to prepare for contingency measures on the country’s supply of coal for power plants which, if insufficient, could lead to widespread blackouts. “Part of the contingency measures should be to ensure the adherence of coal-fired power plants to the 30-day minimum inventory requirement,” Gatchalian said. While the country is slowly attempting to promote alternative and sustainable sources of energy, the Philippines still derived 57.17 percent of power generation from coal as of 2020. Aside from Indonesia's ban on coal exports, the global demand for coal has surged following higher consumption in countries that experience cold winter months. Among the countries severely affected by Indonesia's move are Japan, China, India, and South Korea, which imported 73 percent of Indonesian coal last year. “The government should also consider looking for other suppliers, especially in the coming weeks, given the possible decline in stockpiles coming from Indonesia, which could result in soaring coal prices,” Gatchalian added. In October 2021, the Philippines acquired 96.88 percent of its imported coal supply from Indonesia, the world's top exporter of thermal coal. “This could be a wake-up call as well. The government should probably start rethinking and be more committed to reducing the share of coal by further diversifying our generation mix,” Gatchalian said. By Benjamin Pulta   Article courtesy of the Philippine News Agency 

Photo: Bataan nuclear power plant Senator Sherwin Gatchalian is considering nuclear and solar energy as a possible alternative or additional sources of energy in the country. Gatchalian, Senate energy committee chairman, said he favors “in principle” smaller nuclear reactors instead of the bigger ones for flexibility and safety. “Small ones are more flexible and safer. Safer in the sense that it is smaller, deployable, and has the technology that can use nuclear wastes. Of course, it is still in the development stage,” he said in a radio interview on Monday. He said small nuclear reactors can produce energy from 10 to 150 megawatts. Gatchalian, however, does not consider reviving the Bataan nuclear power plant as it will be too risky and too costly to rehabilitate the facility. He said many are also using solar energy with some big companies putting up solar power plants. “I believe it could be part of the energy transition because nuclear is emission-free but the risk is where to put the wastes and if it encounters a problem, the cost is too high. Solar deployment is still a challenge because it is still quite expensive,” he added. Gatchalian said he will file a bill on energy transition following the Department of Energy’s (DOE) move last year banning new coal power plants to accelerate the country’s shift to cleaner energy. “We cannot hasten the energy transition because we will have no source of energy… The energy transition can be 10 years or longer but the important thing is it’s a scientific process to determine how we can transition out of fossil fuel into renewable safely, reliably, and securely,” he said. He added that right now, the country’s energy needs are still good with fossil fuel but it is imperative to jumpstart the transition due to the increasing population and industries. Gatchalian was here on Sunday to turn over his donation of 5,000 sets of personal protective equipment and 50 sacks of slippers to the Region 1 Medical Center. By Hilda Austria   Article courtesy of the Philippine News Agency 

Photo credit: Inkl The chair of the House Strategic Intelligence Committee on Tuesday said oil drilling activities in Recto Bank must proceed as scheduled amid rising tensions with China. Surigao del Sur Rep. Johnny Pimentel said the Sampaguita gas field could yield up to USD18.2 billion, or around PHP910 billion, in future royalties for the government, based on a 60 percent net share. “We have no choice but to carry on with the drilling activities because the Sampaguita gas discovery in Recto Bank has the potential to energize the entire national grid – not just Luzon – for the next 20 to 30 years,” Pimentel said. Pimentel said Sampaguita is “an untapped value-changing asset” that would be valuable to the country’s future energy security with up to 4.6 trillion cubic feet of gas, while Malampaya, which has been producing gas for the last 20 years, has only 1.6 trillion cubic feet of residual gas at best. “There is even one study suggesting that the entire Recto Bank has up to 20 trillion cubic feet of potential gas in place,” Pimentel said. The Permanent Court of Arbitration in the Hague ruled in July 2016 that Recto Bank is within the Philippines’ exclusive economic zone, as defined under the 1982 United Nations Convention on the Law of Sea. By virtue of the ruling, Pimentel said the Philippines enjoys absolute rights to exploit all resources in the seamount.   Article courtesy of the Philippine News Agency

The Asian Development Bank (ADB) stated last 3 Nov. 2021 that they plan to buy coal power plants in Indonesia, the Philippines and Vietnam with an objective to shut them early and to replace them with clean and renewable energy options. This will be made possible through Energy Transition Mechanism (ETM), a private-sector-led initiative that will be financed through sources like governments, philanthropy and private investors. ADB will start the pilot fund of USD2.5 billion to USD3.5 billion for the purchasing of the plants from the three Asian countries. They plan to retire the coal plants early for the next 10 to 15 years, which is ahead of its average lifespan. [1]

Isla Norte Energy Corporation (INEC) inaugurates its first power plant in Bantayan Island on Nov.10, 2021. The diesel-powered plant has a total capacity of 23.3 megawatts. (Photo courtesy of INEC) The Isla Norte Energy Corp. (INEC) inaugurated Wednesday the 23.3-megawatt (MW) diesel power plant in Bantayan Island, Cebu, providing additional power supply in the emerging tourist destination. In a press conference, INEC president and chief executive officer Emil Andre Garcia said the increasing power supply in Bantayan opens greater opportunities for the island, especially for investments in the tourism sector. “The beaches here are really beautiful. Once tourists come here, aside from the beaches, they want (a) steady supply of power, for the internet, aircon, etc. We’re hoping that with the steady supply, we can see that boom in the economy,” Garcia said. The Energy Regulatory Commission (ERC) recently issued to INEC a Provisional Authority to Operate its first power plant in Bantayan. INEC is a joint venture of Vivant Integrated Diesel Corp. and Gigawatt Power Inc. “We eagerly anticipate the granting of provisional authority by the ERC, and look forward to powering the success of our partners,” Garcia said. INEC will be supplying its output to Bantayan Electric Cooperative Inc. (BANELCO). Of the total capacity, the Bantayan power plant guarantees 15 MW dependable capacity, enough to supply the peak demand in the island. Some 7.27 MW will be reserved supply. Meanwhile, Garcia, who is also an executive at Vivant Corp., said Vivant is supporting the government’s push for renewable energy (RE) as the company eyes to build RE facilities in the future. “We want to have at least 30 percent of our portfolio on RE. So over the next couple of years, we want to build over 300 megawatts of renewable plants,” he said. By Kris Crismundo   Article courtesy of the Philippine News Agency

Photo credit: PhilStar The Philippines' proposed National Renewable Energy Program (NREP) 2020-2040 is setting a target of 35 percent share of renewable energy (RE) in the power generation mix by 2030 and 50 percent share by 2040. This was bared by Director Mylene C. Capongcol, OIC of the Department of Energy’s (DOE) Renewable Energy Management Bureau, who in a recent online presentation acknowledged that instead of growing, the share of RE in the power generation mix has actually declined. She noted that in 2008, the year the Renewable Energy Act was passed, the share of RE was about 34 percent. Now it is down to 21 percent, or 21,609 gigawatt-hours (GWh), out of a total 101,756 GWh of power generated. The government is looking to revert the share of RE to 35 percent by 2030 and 50 percent by 2040 under the updated NREP, Capongcol said. The NREP sets the roadmap for achieving the country's RE goals as required by the Renewable Energy Act of 2008. Republic Act No. 9513, or the Renewable Energy Act, provides the framework for the development, utilization, and commercialization of RE sources, defined as resources that can be replenished regularly and are available indefinitely. These include biomass, solar, wind, geothermal, ocean energy, hydropower, and other emerging RE technologies. The Act affirms the government’s commitment to accelerate the utilization of RE resources in the country to reduce harmful emissions and achieve economic development while protecting the health and environment. The transition to RE from carbon-intensive energies has become even more urgent in light of the massive destruction being wrought by climate change and uncontrolled greenhouse gas emissions not just in the country but on a global scale. Capongcol, during the webinar, said the proposed NREP will be released soon. The updated plan seeks to help attain energy security, contribute to sustainable development, counter climate change, provide capability building, and secure inclusive growth for the country. To achieve the targets under the updated NREP 2020-2040, she said that while there have been a number of policies, initiatives, and programs that were developed and issued since 2011, “this is not enough.” “There are still a lot of improvements, a lot of new policies, emerging ones, that will support renewable energy development” to enable the country to meet its goals of self-sufficiency and cleaner energy," she said. She added that the DOE currently has innovative programs that are looking at the potentials of hydrogen, fusion, offshore wind, tidal energy, and other technologies. The DOE is also working on an expanded solar rooftop program and the improvement of solid waste management, while at the same time drafting a policy on geothermal energy development. Meanwhile, Jay Layug, president of Developers of Renewable Energy for Advancement, sought further improvements in the sector, citing the need in particular to upgrade the power infrastructure for RE such as building more power plants and improving transmission lines and distribution facilities. “Demand for power continues to grow and in the meantime supply is a problem,” he said, pointing out that many power plants in the country are at least 15 years old and starting to deteriorate. To solve these issues, Layug said the national government and local government units must address the challenges to private sector investment, including restrictive government regulations, rigid process for offtake agreements, numerous requirements for permits and licenses, and a lack of integration in government support. He also pressed for the pursuit of policy reform, particularly by declaring renewables as the preferred energy resource, to reduce the importation of fossil fuel and vulnerability to price volatility. His other recommendations included strengthening public-private partnerships; creating a one-stop-shop for RE; simplifying the rules for deployment of personnel, vessels, machinery, equipment spare parts and materials; and resolving inter-agency coordination issues. In the same webinar by the Liveable Cities Challenge Philippines, British Ambassador to the Philippines Laure Beaufils, in her message highlighted the importance of utilizing RE in the country. “The transition to clean and renewable energy sources, such as geothermal, hydro, wind and solar, which are already abundant in the Philippines, will help end the dependence on expensive imported fuel and lower electricity costs especially for lower-income, climate-vulnerable Filipino families,” Beaufils said.   Article courtesy of the Philippine News Agency

The Philippines and New Zealand will continue to explore cooperation on geothermal energy. This as Department of Energy (DOE) Secretary Alfonso Cusi and New Zealand Ambassador to the Philippines Peter Kell signed the Second Amendment to the Arrangement on Geothermal Energy Cooperation between the two countries on Friday. Cusi said this renewed interest for cooperation is aligned with the country’s push for indigenous energy as a power source. "We welcome the formalization of the Second Amendment to the Arrangement on Geothermal Energy Cooperation which comes at such an opportune time, considering that one of our primary goals is to revitalize the state of geothermal energy development and utilization in the Philippines," he added. Under the agreement, there will be an exchange of best practices and technical expertise in the sector of geothermal energy. New Zealand previously provided the country with developing geothermal fields in Tongonan, Leyte, and Southern Negros Geothermal in Negros Oriental, which are still operating. The DOE has also liberalized the geothermal sector as the government opened it to 100-percent foreign ownership to promote new energy sources. By Kris Crismundo   Article courtesy of the Philippine News Agency

The Alsons Power group’s 14.5 mega-watt (MW) ₱ 4.5 billion run- of- river hydroelectric power plant at the Siguil River basin in Maasim, Sarangani Province is on- track to begin operations in 2022 to provide a source of renewable power to key areas of Mindanao. The photo shows ongoing work on the plant’s powerhouse that will contain the hydropower turbine and generator set which will produce electricity using water from the Siguil River. It will also house the power facility’s control Room and offices for administration, operations and maintenance. Alsons Power- Mindanao’s firs private sector power generator plans to develop at least seven more run of river hydro power facilities in different parts of Mindanao and Negros Occidental.  The group currently operates four power facilities in Mindanao with a total generating capacity of 468 MW serving over 8 million people in 14 cities and 11 provinces.

As the Malampaya natural gas field is drying up, Mindanao might have the indigenous energy resources to energize the country. In a webinar of Davao International Conference 2021 Thursday, PNOC Exploration Corp. (PNOC EC) vice president for upstream operation Jaime Bacud said Mindanao is rich in indigenous resources that can support the country’s energy requirement. Bacud said Mindanao alone has three sedimentary basins waiting for exploration for oil and gas resources. These basins include Agusan, Cotabato, and the Sulu Sea. “We still think that there is natural gas potential for these areas, and it could be where we could find the next Malampaya,” Bacud added. The Malampaya gas field, which supplies around 30 percent of Luzon’s power requirement, is the country’s lone natural gas source. As the government issued a moratorium on new coal projects, Bacud said oil and gas exploration, particularly in Mindanao, could help in the government’s goal to achieve energy independence. “We still have a lot of natural or oil and gas resources that are still untapped. And this could be our way forward to get closer to what we call energy independence,” he added. By Kris Crismundo   Article courtesy of Philippine News Agency

Photo credit: SMA Solar Technology - Catalagan Solar Farm A lawmaker on Monday appealed to the Department of Energy (DOE) to expedite the process of approvals for power plants, especially for renewable energy (RE), as the possibility of “energy crunch” looms due to the impact of oil price hikes. Albay Rep. Joey Salceda said the possible “energy crunch”, or a rise in power and fuel costs, by mid-2022 can cause major problems for countries like the Philippines that import non-renewables for its energy needs, as it could dampen economic recovery. “The world is facing what could be a year of price hikes on coal, oil, natural gas, and other non-renewable energy sources. We are facing a confluence of factors. Oil is back where it was pre-pandemic. Natural gas is at all-time highs,” Salceda said. In response to disruptions and price hikes in fossil fuels, he recommended that the country diversify its energy portfolio quickly. “RE is just 24 percent of our energy sources, when we are both a net importer of fossil fuels, and an excellent location for all sorts of RE. One problem appears to me to be the approval process,” he said. He noted that the Renewable Energy Law imposes much more requirements on RE players than on traditional fossil fuel plants, which tend to discourage rather than encourage RE power plants. “We may need to review the Renewable Energy Law to see how we can expedite approval processes. The pre-development stage also tends to be long, up to three years, so we have to see how we can move quicker with that stage,” Salceda said. He said the ideal mix should be at least 40 percent renewable energy. “Our international commitment is to get that up to 35 percent by 2030, but we should do ourselves better by aiming for 40 percent, since almost all of our fossil fuels are imported,” Salceda said. Salceda also suggested that DOE should be a more regular part of discussions on the country’s economic recovery. “I’ve seen the national employment recovery strategy (NERS) and it says nothing about new power plants, which we sorely need, and which will definitely create new jobs. It’s not even in the National Employment Recovery task force,” he said. He said approving the creation of pending power plant applications will create new jobs. “You also need cheap power to create jobs. Moving forward, I hope the DOE is part of discussions on our economic recovery. Power costs remain an investor concern and a dampener on economic recovery,” he said. By Filane Mikee Cervantes   Article courtesy of Philippine News Agency