Philippines Sector Brief – Energy

I. Quick Facts
• As of 30 June 2015, total installed and dependable capacity in the country is 18,445 MW and 15,838 MW respectively
• Coal has the biggest percent share with (31.68% installed; 33.80% dependable), followed by Oil (19.56% installed; 17.36% dependable), Natural Gas (15.52% installed; 17.43% dependable), Geothermal (10.40% installed; 10.14% dependable), Hydro (19.28% installed; 18.90% dependable), Wind (2.02% installed; 1.19% dependable), Solar (0.55% installed; 0.47% dependable) and Biomass (0.99% installed; 0.70% dependable)
• PH is a major producer of geothermal energy, 2nd to the US
• An estimated US $25 billion investment opportunity is forecasted until 2030
• With a history of successful Independent Power Producers Implementations
• A total of 616 approved renewable energy projects as of October 2015 with 291 pending

II. Business Opportunities
• High potential for renewable energy (2,000 MW for biomass; 3,400 MW for hydropower, of which
1,700 MW is small hydro; 1,070 MW for geothermal; and 500 MW for wind, as well as large but
unquantified potential for solar)
• Various incentives provided under the Renewable Energy Law
• Incentives provided to energy investors under the current Investment Priorities Plan (IPP)
• For oil and gas, there is a combined potential of 4,777 MMBFOE, with 16 sedimentary basins representing an area of over 700,000 sq km
• 11 petroleum areas (total area of 4,824,000 hectares) offered in 5th Philippine Energy
Contracting Round with potential resources of 8,807.97 MMB of oil and 18,119.43 BCF of gas

III. Key Players
• San Miguel Energy Corp.
• Aboitiz Power Corp.
• First Gas/First Gen.
• AES Transpower
• SEM Calaca
• Global Business Power Corp.
• Energy Development Corp.

IV. Challenges
• High cost of power (one of the most expensive in Southeast Asia, averaging $0.18 per kilowatthour
in 2009)
• Electricity becomes costly in some areas due to archipelagic geography
• Market price risk
• Electricity tariffs among the highest in the world

V. Trends
• Wind energy capacity will continue to rise (aggregate installed capacity with 400 MW), with PH now the top wind producer in ASEAN
• Gradual reduction of coal use in light of global trend against the toxic emissions of coal
• Increasing development of renewables

Sources: KPMG Energy Report, Department of Energy, Asian Development Bank, DOE Renewable Energy Focus and Energy Investment Opportunities, Oxford Business Group The Report: Philippines 2015, BDO Alba Romeo Doing Business in the Philippines Booklet

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Sectors: Energy, Environment & Water
Countries: Philippines
Topics: Market Research
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