16 Planning & Policy for Sustainable Energy - Dr. Francisco L. Viray

8/9/2019 16 Planning & Policy for Sustainable Energy - Dr. Francisco L. Viray

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TRANS-ASIA OIL AND ENERGY DEVELOPMENTCORPORATION

A member of the

PHINMA Energy Group


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o Accessibility to modern energy in terms of price, factoring in affordability andsustainability

o Availability of modern energy in adequatequantity and acceptable quality on a long-term basis

o Acceptability of energy sector activities interms of their environmental and socialimpacts


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Major challenges Price Energy Security Environmental issues

Social issues Poverty Alleviation


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o Availability of commercial form of energy for all (e.g.,100% electrification)

o Clean energy

o Security and self-sufficiencyo Economic and competitive costs of energy (power and fuel)

as opposed to popular costs of energyo Deregulated, highly competitive energy industry


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Privatization Deregulation PD 87, PD 1442 RA 7156 Mini-hydro Act RA 9637 Philippine Biofuel Act of 2006 RA 9513 - Renewable Energy Act 0f 2008 Mobilize private sector investments privatization, incentives Energy efficiency

RA 8749 - Clean Air Act of 1999 Social programs DOE 1-94; royalties Standby rationing plan for emergency


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Market-based structures and competition Strengthening oversight over deregulated sectors of the industry Price regulation price-setting methodology Energy efficiency Domestic Capital there is limited domestic capital; needs to

mobilize foreign investments; dependence on foreign capitalincreases security risks

Development of indigenous resources Mass transportation


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Provision of Energy Services to Rural Areas - m ake commercialenergy available to increase income-generating opportunities

Decentralized solutions

Appropriate technologies

Innovative credit arrangements Local involvement in decision-making


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Subsidies structure and source of funds Subsidies to address affordability by the poor and competitiveness

of industries - transparent & targeted subsidy to industries wewant to encourage for value addition to the national economyfacilitating competitiveness; and, to meet the needs of thevulnerable group (poor)

Structure life-line rates; universal charges; cross-productsubsidies; promotes energy conservation; discount on diesel for public transport

Sources royalties; DOE 1-94; EVAT


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Competition Law (Anti-trust) To address pricing mechanism for indigenous resources with

attendant impact of imported technology and high capital costs Policies to manage the environment towards a market-based

structures and competition Diversify energy mix & sourcing of imports what will be used to

drive desired energy mix, free market or light handed regulation? Technology innovations and deployment

Build domestic R&D capability to support specially indigenousresource development

Deployment of technology for domestic manufacturing, specially for rural applications

Human resource development


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o Resources Self-sufficiency in terms of indigenous

resources Diversification in terms of energy mix

o Downstream Facilitieso Technology

Domestic technologyo

Capital Mobilizing domestic investments


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o Indigenous resources Deregulation - is it enough to attract investments inindigenous resource development?

Pricing mechanism Renewable energy Bio-fuels Do we have the technology? Does not support long-term security if

import dependent for technology

Do we have manufacturing facilities for equipment & engineeringservices? Import dependent too?


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o Information campaign on oil and electricityderegulation

o Predictable and transparent regulationo Competition governanceo

Regulatory rules for monopoly businesseso Consumer protectiono Investment climate peace & order; taxation;

bureaucracy; corruption; policieso R & D


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o Diversification Diversify energy mix & sourcing of imports Limited to oil, coal, gas, indigenous like geothermal & hydro Nuclear NRE Alternative transport fuels (LPG, CNG) Alternative transport systems (e-vehicles) Energy efficiency & demand management lessens

requirements, postpones capacity additions


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o Global resources are abundant technology& investments required

o Shipping laneso

Geo-politicalo High prices to developing countrieso Supply & price stability


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o Infrastructures Two refineries

No LNG facilities

CNG stations? Power Grid

o Support industries & services Do we have manufacturing facilities for equipment &

engineering services? Import dependent too?


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o Domestic infrastructures Technology

Capital

Support industries & services


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DOWNSTREAM Natural Gas


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o Technology Do we have the technology?

Does not guarantee long-term security if we are import

dependent for technology Domestic technology

Domestic R&D capability

o Capital How large is our domestic financial capital?


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Appropriate technology for rural application Mitigation of environmental impacts emissions Control systems Biofuel feedstocks CFL Nuclear safety waste disposal Cleaning fossil fuel Energy and carbon balance issues


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Reliable commercial legislation and jurisdiction, incentives,defray risks associated with investments, ODA

Political and economic stability, provide reasonablepredictability, efficient bureaucracy

Regulatory regime that promotes competition and efficiency andprotected from arbitrary political intervention

Consistent regulatory and policy signals which can be used as abasis for orderly decision-making . Confusion about the thrustand impact of government policies on incentives, regulations

and competition have to be eliminated Necessary physical structure


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o Strategic reserves of oil products -mandatoryinventory for oil products

o Refineries or imports tariff differential?o Development of indigenous resources renewable

energy; technology; investments; incentiveso Mandatory energy savings policies, incentives

(avoid excessive dependence on imports)


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o Regional & International Cooperationo Technology Transferso Domestic R&D capabilityo Markets must sustain energy security


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o Long-term nature of energy systems requires long-term energy planning; 25 years to 50 years

o Forecasting techniques GDP, populationo Err on the excess when planning future capacities?

Costs of excess versus costs of shortages


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16 Planning & Policy for Sustainable Energy - Dr. Francisco L. Viray

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