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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.

Plans & Programs A. Supply Base Development Promote Domestic Exploration & Development The DOE continuously support and promote the exploration & development of natural gas in the country. Likewise, “on-site” or small scale power generation using marginal gas fields will be promoted.

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

Implements regional policies, plans, programs, and regulations of the department relating to energy resources exploration and development, its judicious and efficient utilization, ensures adequate, efficient, and reliable supply of electricity and monitors the development in the downstream oil industry, development and utilization of renewable energy (RE) resources such as geothermal, hydro, ocean, biomass, solar, and wind with due regard to the environment and sustainable development in Luzon.

The Philippines' Department of Energy (Filipino: Kagawaran ng Enerhiya), abbreviated as DOE is the executive department of the Philippine Government responsible for preparing, integrating, coordinating, supervising and controlling all plans, programs, projects and activities of the Government relative to energy exploration, development, utilization, distribution and conservation. The Department of Energy was created by then President Marcos as he issued Presidential Decree No. 1206 which created the Ministry of Energy and attached the National Power Corporation and Philippine National Oil Company to this new agency. The Ministry was abolished during the Regime of Corazon Aquino. During the Regime of President Fidel V. Ramos, that Department was created by virtue of Republic Act No. 7638 otherwise known as the Department of Energy Act of 1992. The Department was vested additional powers and functions under pertinent energy and power related legislations, such as Republic Act No. 9136 or the "Electric Power Industry Reform Act of 2001", Republic Act No. 9367 or "Biofuels Act of 2006", and Republic Act No. 9513 or "Renewable Energy Act of 2008."

Philippine Energy Plan 2020-2040 Overview As the country faces a multi-faceted challenge on its pandemic response programs, amidst the imposed lockdowns on economic activities, the Department of Energy (DOE) is presenting a track to attain an inclusive and equitable economic growth made possible through the provision of secure, sustainable, and resilient energy strategies. The Philippine Energy Plan (PEP) 2020-2040 is the second comprehensive energy blueprint supporting the government’s long-term vision known as Ambisyon Natin 2040. This updated plan, like its predecessor (PEP 2018-2040), reiterates the energy sector’s goal to chart a transformative direction towards attaining a clean energy future. Paving the path of transition into a more sustainable and resilient energy system, the sector’s direction has always been steered by Secretary Alfonso G. Cusi. This is in recognition to the message conveyed by President Rodrigo Roa Duterte of the energy sector requisites – sustainability and availability of energy to wean away from traditional sources and development of alternative ones. To carry out the President’s instructions, the Energy Secretary clearly pointed the transformative changes imperative to align with the Administration’s call. These resulted into policies directed by the Energy Secretary and include, among others, the aggressive Renewable Energy (RE) and Energy Efficiency and Conservation (EEC) institutionalization programs, the moratorium on new coal power projects, a mechanism allowing foreign ownership on large-scale geothermal projects under financial and technical assistance agreement or FTAA, the resumption of indigenous oil and gas exploration, the introduction of liquefied natural gas (LNG) portfolio, establishment of strategic petroleum reserves and exploration of Hydrogen's potential. Having the policies in place, the Energy Secretary reaffirmed the sector’s mindfulness in putting consumers first and that energy must be equitable to all Filipinos. The crafted PEP 2020-2040 is the amalgamation of the envisioned transition and transformation resonated by the Administration. Under its Clean Energy Scenario (CES), the PEP provides for ambitious plans, policies and targets on renewable energy, natural gas, alternative fuels, and energy efficient technologies. To make the country’s low carbon energy transformation a reality, the following goals have been set for the medium to long-term planning horizon: Click to view/download Philippine Energy Plan 2020-2040 Reference Scenario Present development trends and strategies continue; 35.0 percent renewable energy share in the power generation mix by 2040; LNG importation starting 2022; Energy Consumption levels that support an accelerated economic expansion post COVID-19; Current blending schedule for biofuels (2.0 percent biodiesel and 10.0 percent bioethanol) maintained until 2040; 5.0 percent penetration rate of electric vehicles for road transport (motorcycles, cars, jeepneys) by 2040; and Current efforts on EEC as a way of life continues until 2040. Clean Energy Scenario 35.0 percent and 50.0 percent RE share in the power generation mix by 2030 and 2040; 5.0 percent blending for biodiesel starting 2022; 1.5 percent increase in aggregated natural gas consumption from the transport and industry sectors between 2020 and 2040; 10.0 percent penetration rate of electric vehicles for road transport (motorcycles, cars, jeepneys) by 2040; 5.0 percent energy savings on oil products and electricity by 2040; and At least 12.0 percent reduction in the GHG emission for the Nationally Determined Contribution (NDC).

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