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Energy Sector Accomplishment Reports

Declaring the Commercial Operations

RECLASSIFYING DESIGNATED ESTABLISHMENTS IN THE INDUSTRIAL SECTOR, ADJUSTING THEIR THRESHOLD, AND PROVIDING COMPLIANCE GUIDELINES THEREFOR PURSUANT TO THE ENERGY EFFICIENCY AND CONSERVATION ACT

Adopting the Guidelines Governing the 4th Open and Competitive Selection Process (OCSP4) in the Award of Renewable Energy Service Contracts, and for Other Purposes

It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.

Executive Summary The 2019-2028 Distribution Development Plan (DDP) contains the one-page infographic profile of 144 out of 151 Distribution Utilities (DUs), showing the supply- demand outlook and energy requirements for the ten-year planning period. It features the Power Supply Procurement Plan, which contains the proposed schedule for the Competitive Selection Process (CSP) to be conducted by DUs to procure power supply requirements to ensure the continuous provision of electricity supply to the consumers in a least cost-manner as what was mandated by Republic Act No. 9136. For those DUs without schedule for CSP, the power supply deficit in MW shortfall for the corresponding period is indicated. This DDP also featured the 2018 actual number of customers and energy sales per customer class. It also includes comparison using percentage difference of the 2018 projection on number of customers, peak demand, electricity purchased, energy sales and system loss based on the 2018-2027 DDP versus the 2018 actual data based on the 2019-2028 DDP. In 2018, the DUs registered a peak demand of 13,899 MW and is projected to increase from 14,602 MW in 2019 to 21,300 MW in 2028 with an annual average growth rate (AAGR) of 4.36% for the ten-year planning horizon. Luzon DUs recorded the highest peak demand in 2018 at 10,279 MW while Mindanao and Visayas DUs reported peak demand of 1,835 MW and 1,785 MW, respectively. For the energy requirements, the DUs procured a total of 83,573 GWh in 2018 which is estimated to rise from 88,040 GWh in 2019 to 129,815 GWh in 2028 with an AAGR of 4.50%. Likewise, the DUs has a total energy sales of 77,409 GWh in 2018 which is seen to increase to 119,231 GWh by 2028 with an AAGR of 4.42% from its 2018 level. With regard to the number of customers, there were 19.9 million customers being served by the DUs in 2018 wherein majority at 91.97% are residential connections, commercial customers at 6.17%, industrial customers at 0.23%, and customers classified as Others accounts for the 1.62%. With an AAGR of 3.86%, customer connections is forecasted to increase from 20.1 million in 2019 to 29.0 million in 2028.

Energy Utilization Management Bureau Formulates and implements policies, plans, programs and regulations on new energy technologies, alternative fuels and the efficient, economical transformation, marketing and distribution of conventional and renewable energy resources, and ensures efficient and judicious utilization of conventional and renewable energy resources Alternative Fuels and Energy Technology Division Formulating policies, plans, and programs related to alternative fuels and new and advanced energy technologies’ development towards socially and environmentally responsive and effective utilization of energy resources; and Developing and managing the alternative fuels and energy technology program. Energy Efficiency and Conservation Program Management and Technology Promotion Division Evaluating energy efficiency and conservation technologies. Promoting the increased utilization of energy efficient products. Preparing all reports for submission to other government agencies as required by law; and Developing a comprehensive information, education, and communication strategy for public awareness on energy efficiency programs and energy efficient products. Energy Efficiency and Conservation Public Sector Management Division Coordinating with the LGUs and the NEECCO to ensure consistency with the NEECP. Providing technical assistance to LGUs and other government agencies. Enhancing, expanding, and developing the GEMP; and Providing technical support to the IAEECC and acting as its Secretariat. Energy Efficiency and Conservation Performance Regulation and Enforcement Division Spearheading the creation of the NEECD in accordance with the provisions of this Act. Formulating, developing, and updating the MEP, energy labeling, and other programs indicated herein: and Enforcing the programs under this Act and its IRR, such as the MEP and energy labeling.

PMDD reviewed the following Reportorial Requirements: Market Operator – WESM real-time data and market results System Operator – Generator and Transmission Outages Generation Companies – Monthly Operations Report Distribution Utilities – Monthly Operations Report, Distribution Development Plan, Uniform Reportorial Requirements Retail Electricity Suppliers – Quarterly Operations Report Prepared/drafted unformed/structured templates and data definitions. Drafted Department Circular providing guidelines and adopting the enhanced Reportorial Requirements. Conducted various meetings to the internal and external stakeholders.

The DEPDMS is the EPIMB’s tool for monitoring the performance of the electric power industry participants, and to be used for policy formulation and studies, which include but not limited to the following: Data analysis for evidence-based policy formulation; Conduct of simulations for the assessment of market rules change proposals and other issues related to the power industry; and Generation of regular/periodic reports.

Downstream Natural Gas The birth of the Philippine natural gas industry brings the country closer to its goal of harnessing environment friendly fuels to ensure a stable, diverse and secure energy supply. However, the growth of this industry is anchored on the development of additional gas-generated capacity, other non-power applications and the necessary infrastructure that is to bring the natural gas to its potential markets. The infrastructure includes the appropriate pipeline transmission and distribution networks, LNG terminals and facilities, gas refilling stations for CNG-run vehicles and ancillary facilities. In the absence of the law for the natural gas sector, the stage for the industry’s development has been set with the preparation of a gas policy framework, industry rules and regulations. A clear and concise policies, objectives, programs and strategies formulated by the DOE, together with the critical cooperation and participation of the private sector, development of a natural gas industry is ensured. While there is still much to be done, the DOE will be at the forefront of efforts to rally the participants in this new industry to success. STUDIES: Consultation on the Phase 2 Report of the Philippine Natural Gas Master Plan First Report of the Natural Gas Master Plan Study on Collecting Information and Verification on Promotion of Utilization of Clean Energy Sources (JICA, December 2011) Mindanao Natural Gas Market Development Strategy (Final Report)

Electric Power Industry Management Bureau Supervises the implementation of electric power industry restructuring to establish a competitive, market-based environment, and encourage private-sector participation; ensures adequate, efficient, and reliable supply of electricity, and formulates plans, programs, and strategies relative to rural electrification Power Market Development Division Power Market Research and Development Section EPIRA Monitoring and Coordination Section Power Planning and Development Division Power Development Planning Section Transmission Development Planning Section Missionary Electrification Development Planning Section Rural Electrification Administration and Management Division Rural Electrification Systems Administration Section Rural Electrification Project Management Section Non-electrification Project Management and Administration Section Power Planning and Development Division Formulates policies, plans, and programs related to generation, transmission, distribution, and supply of electricity and ensures effective implementation thereof. Power Development Planning Prepares and updates annually the Philippine Power Development Plan (PDP). Evaluates individual plans of Generation companies National transmission company or its buyer/concessionaire Distribution utilities Suppliers of electricity; and Other entities engaged in the delivery of electricity services Prepares indicative supply and demand options based on economics and technologies with the view to ensuring greater private sector participation. Undertakes long-term national, regional and sectoral electricity demand forecasts. Ensures sufficient reserve capacities through the formulation of necessary policy recommendations in this regard. Provides power sector inputs to the Philippine Energy Plan (PEP), Regional Energy Plans (REPs), and Sectoral Energy Plans (SEPs). Monitors and assesses system development and performance in the market. Coordinates with various government agencies, electric power industry participants, consumer groups, etc. (e.g., DOF, NEDA, NEA, ERC, NPC, PSALM, TRANSCO, various IPPs, Meralco, ECs) on matters related to the above-enumerated functions. Assists in the PEP, REP, and SEP consultations. Provides secretariat support to various activities relating to the power sector. Performs Ad Hoc functions as may be assigned. Transmission Development Planning Evaluates and recommend approval of the Transmission Development Plan (TDP) of Transco or its buyer/concessionaire. Formulates policy recommendations on transmission expansions. Represents the department in the following: Grid Management Committee (Grid Code) Distribution Management Committee (Distribution Code) Transco Board Technical Working Group NP-Contracts Awards Committee Consolidates regional and sectoral inputs relating to the transmission plan. Monitors and assesses the transmission operations, system development, and performance in the market. Coordinates with various government agencies, electric power industry participants, consumer groups, etc. (e.g., DOF, NEDA, ERC, NPC, PSALM, Transco, various IPPs, Meralco, ECs) on matters related to the above-enumerated functions. Performs Ad Hoc functions as may be assigned. Missionary Electrification Development Planning Evaluates and update annually the Missionary Electrification Development Plan (MEDP). Formulates policy recommendations on the sufficiency of the supply of electricity in off-grid areas. Prepares indicative supply and demand options based on economics and technologies in off-grid areas. Formulates policy recommendations on missionary electrification and off-grid connections. Coordinates the planning of missionary electrification projects. Evaluates the missionary electrification projects of NPC-Small Power Utilities Group (NPC-SPUG) and other parties operating in off-grid areas. Provides power sector inputs to the Philippine Energy Plan (PEP), Regional Energy Plans (REPs), and Sectoral Energy Plans (SEPs). Coordinates with various government agencies, electric power industry participants, consumer groups, etc. (e.g., DOF, NEDA, NEA, ERC, NPC, PSALM, Transco, various IPPs, Meralco, ECs) on matters related to the above-enumerated functions. Provides secretariat support to various activities relating to missionary electrification. Performs Ad Hoc functions as may be assigned. Power Market Development Division Formulates Policies, plans, and programs related to the development of the Philippine power market and ensures the effective and sustainable operation of competitive national and regional electricity markets Power Marketing Research and Development Oversees and implements the Philippine Wholesale electricity spot market (WESM) Formulates policy recommendations relating to sustainable electricity market transformation Evaluates and monitor the performance of the electricity market Undertakes research and studies to further develop and strengthen the Philippine electricity market Implements and facilitates technical assistance projects related to the WESM Represents the department in the ff. inter-agency committees: WESM technical working groups NEDA technical working committees relating to power (NEED BASIS) Provides secretariat support to the WESM technical working groups Coordinates with various government agencies, electric power industry participants, consumer groups, ETC. (E.G., DOF, NEDA, NEA, ERC, NPC, PSALM, TRANSCO, VARIOUS IPPs, MERALCO, ECs) on matters related to the above-enumerated functions Performs AD HOC functions as may be assigned EPIRA Monitoring and Coordination Evaluates and monitor EPIRA implementation and compliance of electric power industry participants (government and private sector entities) Evaluates submissions of various agencies relating to the reportorial requirements of the joint congressional power commission (JCPC) Prepares BI-annual reports to the JCPC on EPIRA implementation and compliance Formulates policy recommendations to ensure effective implementation of the restructuring objectives Implements and facilitates technical assistance projects related to EPIRA Coordinates with various government agencies, electric power industry participants, consumer groups, ETC. (E.G., DOF, NEDA, NEA, ERC, NPC, PSALM, TRANSCO, VARIOUS IPPs, MERALCO, ECs) on matters related to the above-enumerated functions Provides secretariat support to the EPIRA implementation steering committee and JCPC meetings Performs AD HOC functions as may be assigned Rural Electrification Administration and Management Division Formulates policies, plans, and programs related to the department's thrust to total energization of the country and provision of financial benefits to host communities and ensures effective implementation thereof. Rural Electrification Systems Administration Formulates policy recommendations on the rural electrification thrust of the department including the enhancement of private sector participation in off-grid areas. Prepares integrated rural electrification plans and programs including missionary electrification. Assists in the preparation of PDP and MEDP Evaluated the annual distribution plan of the National Electrification Administration (NEA). Undertakes policy research and studies relating to rural electrification. Coordinates with the concerned DOE units in the promotion and implementation of renewable energy projects for rural electrification. Formulates criteria for Qualified Third Parties (QTPs) Coordinates and cooperates with the concerned DOE units in implementing rural electrification nationwide. Performs Ad Hoc functions as may be assigned. Rural Electrification Project Management Oversees the implementation and management of rural electrification/missionary electrification projects funded through Rule 29 of EPIRA Implementing Rules and Regulations (ER 1-94) and DOE electrification budget. Evaluates proposals for electrification projects funded through Rule 29 of EPIRA Implementing Rules and Regulations (ER 1-94) and DOE electrification budget. Conducts technical inspections of all rural electrification projects for funding under ER 1-94 Undertakes Information and Education Campaigns on Rule 29 of EPIRA Implementing Rules and Regulations (ER 1-94) relating to electrification. Coordinates with generation companies and/or energy resource developers for the effective implementation and compliance with Rule 29 of EPIRA Implementing Rules and Regulations (ER 1-94). Coordinates with various government agencies, electric power industry participants, consumer groups, etc. (e.g. NEA, ERC, NPC-SPUG, PSALM, TRANSCO, various IPPs, and their Community Relations (COMRELs) Officers, Meralco, ECs) on matters related to the above-enumerated functions. Performs Ad Hoc functions as may be assigned. Nonelectrification Project Management and Administration Formulates policy recommendations on the implementation of Rule 29 of EPIRA Implementing Rules and Regulations (ER 1-94) relating to developmental, livelihood, watershed management, health, and environmental enhancement projects (Non-Electrification Projects). Oversees the implementation and management of nonelectrification projects. Evaluates proposals for nonelectrification projects funded through Rule 29 of EPIRA Implementing Rules and Regulations (ER 1-94). Conducts technical inspections of all nonelectrification projects for funding under ER 1-94. Undertakes information and education campaigns on Rule 29 of EPIRA Implementing Rules and Regulations (ER 1-94) relating to nonelectrification projects. Provides inputs in the preparation of PEP/PDP. Coordinates with various government agencies, electric power industry participants, consumer groups, etc. (e.g., NEA, ERC, NGOs, Legislators, LGUs, various IPPs and their community relations (COMRELs) Officers, etc.) on matters related to the above-enumerated functions. Performs Ad Hoc functions as may be assigned

GUIDELINES ON NOTICES AND REPORTORIAL REQUIREMENTS PURSUANT TO THE DOWNSTREAM OIL INDUSTRY DEREGULATION ACT

Amending Item 7 of Department Order No. 2023-01-0002

Four (4) Pre-Determined Areas (PDAs) shall be offered for investment, exploration, development and production of the BARMM's indigenous resources, as mandated by the Intergovernmental Energy Board (IEB). “This is another milestone for the Ferdinand Marcos Jr. Administration in advancing the development of the BARMM, following the landmark signing of the Intergovernmental Energy Board (IEB) Circular on the Joint Award of Petroleum Service Contract (PSCs) and Coal Operating Contracts (COCs) in the BARMM area in July 2023,” Energy Secretary Raphael P.M. Lotilla said. “The resources identified in the BARMM area are enormous assets that we can fully develop. As we go another step forward to harnessing these assets, our aspirations for promoting economic growth, generating employment opportunities, and nurture a thriving business landscape in the region are even closer to realization,” the Secretary added. The IEB Circular on the Joint Award of PSCs and COCs in the BARMM was signed on 06 July 2023. It operationalizes the provision under Section 10, Article XIII of Republic Act No. 11054 or the Organic Law for the Bangsamoro Autonomous Region to jointly grant rights, privileges, and concessions for the exploration, development, and utilization of uranium and fossil fuels such as petroleum, natural gas, and coal within the territorial jurisdiction of the Bangsamoro.