2020 List of Existing Power Plants per Grid:

• Luzon
• Visayas
• Mindanao

2020 List of Existing Power Plants in Off-grid areas for Luzon, Visayas and Mindanao

2020 Installed and Dependable Capacity Mix:

• Grid
• Off-Grid
• Grid and Off-Grid

I. EXECUTIVE SUMMARY

The 34th Status Report on Electric Power Industry Reform Act (EPIRA) of 2001 implementation covers the period November 2018 to April 2019 which includes significant accomplishments, developments and continuing challenges undertaken by different government instrumentalities and the power sector as mandated under the EPIRA.

The Power Sector Assets and Liabilities Management Corporation (PSALM) continues with the privatization activities of the Malaya Thermal Power Plant and and other remaining plants and National Power Corporation-Independent Power Producer (NPC-IPP) contracts, and the disposal of other disposable assets to include real estate and unserviceable assets, and waste and junk materials. With regard to the reduction in PSALM’s foreign debts, as of 1st quarter of 2019, the remaining balance is down to PhP436.3 billion from the peak of PhP1.23 Trillion as of year 2003 or a decrease of PhP805 billion from the enactment of the EPIRA in 2001.

The Independent Electricity Market Operator of the Philippines (IEMOP) continuously performs its function as Market Operator to include acceptance and evaluation of registration requirements from the Wholesale Electricity Spot Market (WESM) Mindanao participants. Through the Philippine Electricity Market Corporation (PEMC), the DOE continues its mandate to monitor the governance of the WESM through its representation from the different technical committees which undertake regular meetings relative to WESM rules changes, operational audit, conduct of technical evaluation and studies, investigation of breach of the WESM Rules, and management of dispute resolution process. Also, the DOE issued the Department Order No. DO2019-03-0009 entitled “Creating a Special Task Force to Assess the Performance of the Wholesale Electricity Spot Market (WESM) under the Governance of PEMC and Operations of the IMO”, and DC2015- 10-0015 entitled “Providing Policies for Further Enhancement of the WESM Design and Operations” on November 2015 which instigated the move to develop WESM design and operations enhancements.

The DOE, despite the challenges restraining the full implementation of Retail Competition and Open Access (RCOA), continuously exerted efforts in strenghtening competition in the retail market and empower the contestable customers. Hence, despite the restraining orders issued by the Supreme Court on various issuances of the DOE and the Energy Regulatory Commission (ERC), the increase in voluntary participation by Contestable Customers was remarkable at 419% from 239 in June 2013 to 1,240 as of April 2019, comprising around 68% of the total Contestable Customers certified by the ERC.

In terms of the electricity pricing as of March 2019, the country’s average electricity rates as of March 2019 is around PhP8.52/kWh, PhP0.76 centavos higher compared with the December 2018 national average systems rate. Highest increase in rate was posted in the Visayas Grid from PhP6.75/kWh in December 2018 to PhP7.78/kWh in March 2019 or an increase of 76 centavos/kWh. Luzon and Mindanao grid increased by 45 centavos/kWh and 74 centavos/kWh, respectively. To further reflect transparency in electricity rates, the DOE issued Department Circular No. DC2018-09-0026, entitled’ “Adopting the Framework for the Uniform Monthly Electricity Bill Format” to ensure greater transparency in the billing and charges of Distribution Utilities for the utmost protection of public interest.

The country’s power supply-demand scenario in 2018 pose challenges as manifested by the declaration of yellow alerts in Luzon and along with red alerts in the Visayas. Mindanao has improved in terms of having lesser Red and Yellow alert notices in 2018, compared to the previous years due to the development of additional stable capacity from large coal-fired power plants in the grid. While Mindanao supply was relatively stable with the operation of new power plants, the grid was confronted by issues on non-compliance to demand and supply nomination procedures which affected the allocation of capacities in the grid and subsequently resulted to minimal power interruptions in some areas. The country’s 2018 peak demand was recorded at 14,782 MW, which is 993 MW or 7.2% higher than the 13,789 MW in 2017. The total power supply, in terms of installed capacity, grew by 4.8% from 21,730 MW in 2017 to 22,238.15 MW in 2018. Nine Hundred Ninety Three and 6/10 (933.6) MW new capacities were added to the country’s supply based in 2018 which include coal-fired (720 MW), oil-based (87.3 MW), geothermal (12 MW), hydropower (80.3 MW) and biomass (34 MW). Luzon contributed additional capacity by 659.5 MW or 71% and Mindanao at 274.1 MW or 29% while Visayas has not developed any additional capacity for 2018.

The household... Read more

I. EXECUTIVE SUMMARY

The 33rd Status Report on Electric Power Industry Reform Act (EPIRA) of 2001 implementation covers the period May 2018 to October 2018 which includes significant accomplishments, developments and continuing challenges undertaken by the attached agencies as provisioned under EPIRA.

Pursuant to EPIRA under the privatization mandate of the Power Sector Assests and Liabilities Management Corporation (PSALM), the DOE sets a new directive to PSALM to remove the requirement for the Malaya Thermal Power Plant (MTPP) to run as a Must Run Unit (MRU) for the next three (3) years upon the turn over of the plant to the winning bidder considering its technical and physical condition. Further, PSALM continues other privatization activities for other remaining plants and National Power Corporation-Independent Power Producer (NPC-IPP) contracts, and the disposal of other disposable assets to include real estate and unserviceable assets, waste and junk materials. With regard to the reduction in PSALM’s foreign debts, as of 4th quarter of 2018, the remaining balance is down to PhP466.4 billion from the peak of PhP1.23 Trillion as of year 2003 or a decrease of PhP774.5 billion.

The DOE commenced initiatives to fulfill the requirement of Section 30 of the EPIRA to put in place an Independent Market Operator (IMO) with the issuance of Department Circular No. 2018-01- 0002 entitled “Adopting Policies for the Effective and Efficient Transition to the Independent Market Operator (IMO) for the WESM”, which provided the basic principles to be adopted for the transition to the IMO

In terms of the electricity pricing as of June 2018 compared to the March 2018 national average systems rates, there is a significant increase of PhP0.32 centavos/kWh in country’s average electricity rates or equivalent to PhP8.57/kWh. In the Visayas grid, rate increased from PhP7.43/kWh to PhP7.81/kWh or an increase of 38 centavos/kWh. Luzon and Mindanao grid increased by 31 centavos/kWh and 34 centavos/kWh, respectively.

To attain further transparency in the billing and charges of the distribution utilities (DUs) to the electricity end-users for the greater protection of public interest, the DOE issued Department Cicrcular No. DC 2018-09-0026 entitled “Adopting Framework for Uniform Monthly Electricity Bill Format” signed by Secretary Alfonso G. Cusi on 24 August 2018. This policy aims for further unbundling of charges, adopt electronic billing, and reflect description of each charge to provide information among the electricity consumers.

Meanwhile, for the power supply-demand situation, the country’s total peak demand in 2018 was recorded at 14,782 MW, which is 993 MW or 7.2% higher than the 13, 789 MW in 2017 wherein 10,876 MW or 74% of the total demand comes from the Luzon grid while Visayas and Mindanao has a share of 14% (2,053 MW) and 13% (1,853 MW), respectively. Among the three grids, Luzon grid showed significant increase in peak demand since it grew by 822 MW or 8.2% from its last year’s peak demand of 10,054 MW. The total power supply, in terms of installed capacity, grew by 4.8% from 21,730 MW in 2017 to 22,23,815 MW in 2018. A total of 933.6 MW new capacities were added to the country’s supply base which include coal-fired (720 MW), oil-based (87.3 MW), geothermal (12 MW), hydropower (80.3 MW) and biomass (34 MW). In terms of share by grid, Luzon contributed additional capacity by 659.5 MW or 71% and Mindanao at 274.1 MW or 29% while Visayas has not developed any additional capacity for 2018.

Changes in the procedures for the provision of financial benefits to Host Communities were made with the promulgation of the DOE of Department Circular No. DC2018-08-0021 entitled “Providing For The Amendments To Rule 29 Part (A) of the Implementing Rules and Regulations of Republic Act No. 9136” which provides the rules and guidelines for the effective administration, management, utilization, and implementation of the Financial Benefits to the Host Communities. The circular, among others, will enable the transfer of all existing funds being administered by the DOE to the concerned DUs, Host LGUs, Regions, and Indigenous Cultural Communities/ Indigenous People.

To further accelerate the electrification program of the government as directed by the President, the DOE included in the Power Development Plan (PDP) 2016-2040 the Electrification Roadmap toward total Energy Access in 2040 with specific target of country’s 100% household electrification level by 2022 based on 2015 Census.This aims to accelerate total electrification by 2020, address ailing ECs, and ensure greater private sector participation.

Further, the DOE issued a Department Order No. DO2018-05-0010... Read more