for the power sector to ensure and secure the delivery
of a reliable and quality electricity supply in the shortterm,
medium-term and long-term planning periods.
In view of the Philippines’ wide-ranging
geographical situation, to fully connect the entire
population to the national grid is a significant hurdle.
Servicing the most remote and difficult to electrify
rural areas will require significant resources; hence
achieving a 100% electrification level over the
outlook period remains a challenge for the economy.
The government through DOE and other private and
government agencies spearheads the development of
various innovative service delivery mechanisms
designed to increase access to electricity services. One
of its efforts is the Expanded Rural Electrification
Program which aims to at least provide some access
to electricity for the marginalized and other off-grid
areas. This will be done through decentralized energy
systems such as battery charging stations (BCS),
individual solar home systems, micro-hydro systems,
and wind turbine energy systems (Salire and Muhi,
2010).
The National Electrification Administration
(NEA), an attached agency of the DOE, is the
economy’s prime mover in rural electrification and
the DOE’s arm in the implementation of the
decentralized energy systems. NEA currently
supervises 96 electric cooperatives by providing
quality financial, institutional and technical services to
franchise areas not covered by the Manila Electric
Company, the economy’s biggest privately-owned
utility.
Meanwhile, NPC remains as an economy-wide
government-owned and controlled corporation
which performs the missionary electrification
function through the Small Power Utilities Group
(SPUG). SPUG is responsible for providing power
generation and its associated power delivery systems
in areas not connected to the transmission system.
The Biofuels Act of 2006 provides the economy
with a way of hedging against escalating oil prices and
of reducing the economy’s dependence on imported
fossil fuels. The Act currently mandates a minimum
1% biodiesel blend in diesel and a 5% bioethanol
blend in gasoline. The economy hopes to increase
this to 20% coco methyl ester (CME) in diesel and
20% ethanol in gasoline by 2030. CME is
domestically produced from coconuts, while 80% of
the bioethanol supply will be sourced from imports
due to the limited domestic production capacity.
Alongside its efforts to curb the economy’s
dependence on imported oil, the Philippines
Government considers the use of alternative fuels in
the transport sector a priority. As well as its target to
replace the current number of conventionally fuelled
vehicles with alternative technologies and fuels by
2035, the economy expects to add more
infrastructure such as natural gas pipelines, refilling
stations for CNG (compressed natural gas) buses and
charging stations for electric vehicles. Operators who
participate in the natural gas vehicle (NGV) program
receive incentives such as an income tax holiday and
a 0% rate of duty on imported NGVs, NGV engines
and other NGV industry items. There is a proposal
to enhance the existing incentives for the program to
encourage more participants. Over the next 25 years,
the economy has a target to increase the number of
vehicle engines running on higher percentages of
for the power sector to ensure and secure the delivery
of a reliable and quality electricity supply in the shortterm,
medium-term and long-term planning periods.
In view of the Philippines’ wide-ranging
geographical situation, to fully connect the entire
population to the national grid is a significant hurdle.
Servicing the most remote and difficult to electrify
rural areas will require significant resources; hence
achieving a 100% electrification level over the
outlook period remains a challenge for the economy.
The government through DOE and other private and
government agencies spearheads the development of
various innovative service delivery mechanisms
designed to increase access to electricity services. One
of its efforts is the Expanded Rural Electrification
Program which aims to at least provide some access
to electricity for the marginalized and other off-grid
areas. This will be done through decentralized energy
systems such as battery charging stations (BCS),
individual solar home systems, micro-hydro systems,
and wind turbine energy systems (Salire and Muhi,
2010).
The National Electrification Administration
(NEA), an attached agency of the DOE, is the
economy’s prime mover in rural electrification and
the DOE’s arm in the implementation of the
decentralized energy systems. NEA currently
supervises 96 electric cooperatives by providing
quality financial, institutional and technical services to
franchise areas not covered by the Manila Electric
Company, the economy’s biggest privately-owned
utility.
Meanwhile, NPC remains as an economy-wide
government-owned and controlled corporation
which performs the missionary electrification
function through the Small Power Utilities Group
(SPUG). SPUG is responsible for providing power
generation and its associated power delivery systems
in areas not connected to the transmission system.
The Biofuels Act of 2006 provides the economy
with a way of hedging against escalating oil prices and
of reducing the economy’s dependence on imported
fossil fuels. The Act currently mandates a minimum
1% biodiesel blend in diesel and a 5% bioethanol
blend in gasoline. The economy hopes to increase
this to 20% coco methyl ester (CME) in diesel and
20% ethanol in gasoline by 2030. CME is
domestically produced from coconuts, while 80% of
the bioethanol supply will be sourced from imports
due to the limited domestic production capacity.
Alongside its efforts to curb the economy’s
dependence on imported oil, the Philippines
Government considers the use of alternative fuels in
the transport sector a priority. As well as its target to
replace the current number of conventionally fuelled
vehicles with alternative technologies and fuels by
2035, the economy expects to add more
infrastructure such as natural gas pipelines, refilling
stations for CNG (compressed natural gas) buses and
charging stations for electric vehicles. Operators who
participate in the natural gas vehicle (NGV) program
receive incentives such as an income tax holiday and
a 0% rate of duty on imported NGVs, NGV engines
and other NGV industry items. There is a proposal
to enhance the existing incentives for the program to
encourage more participants. Over the next 25 years,
the economy has a target to increase the number of
vehicle engines running on higher percentages of
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