DOE Infrastructure Philippines 2010 Summit Presentation

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    ENERGY SECTORINVESTMENT OPPORTUNITIES

    JOSE RENE D. ALMENDRASSecretaryDepartment of Energy

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    PRESENTATION OUTLINE

    Energy Reform Agenda

    Investment Requirements

    Investment Opportunities in:

    Energy Resource Development

    Alternative Fuels

    Power GenerationEnergy Efficiency and Conservation

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    Ensure

    Energy

    Security

    Achieve Optimal

    Energy Pricing

    Develop a

    Sustainable

    Energy System

    Good Governance thru stakeholder participation, transparency,multi-sectoral partnership and use of ICT

    Energy Access for More

    A key priority of governmentto mainstream access of the

    greater majority to reliable energy services and fuel, most

    importantly, local productivity and countryside development

    ENERGY REFORM AGENDA

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    INVESTMENT REQUIREMENTS (2010-2030)

    SectorTotal

    in Billion Php In Billion US $

    Fossil Fuel Resources 543.93 24,476.85

    Renewable Energy Resources 902.48 40,611.60

    Alternative Transport Fuels 41.37 1,861.65

    Power and Transmission Development 342.54 15,414.30

    Downstream 59.61 2,682.45

    Sub-Total 1,889.93 85,046.85Cost of power plant constructionincluded in the Investment Cost ofRenewable Energy Projects

    62.74 2,823.30

    Total 1,827.19 82,223.55

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    ENERGY RESOURCE DEVELOPMENT

    Oil and Gas

    Coal

    Renewable Energy

    (geothermal, hydropower, other RE)

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    Mean total resource of 8,895

    billion barrels of oil equivalent

    - 28,531 billion cubic feet of gas

    - 3,629 billion barrels of oil

    EXISTING OIL & GASSERVICE CONTRACTS

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    OIL AND GAS AVAILABLE AREASContract Areas Coverage (has.) Location

    AREA 1 544,000 Cagayan

    AREA 2 676,000 Central Luzon

    AREA 3 600,000 Northwest PalawanAREA 4 616,000 Northwest Palawan

    AREA 5 424,000 Northwest Palawan

    AREA 6 840,000 Mindoro-Cuyo

    AREA 7 844,000 Mindoro-Cuyo

    AREA 8 840,000 East Palawan

    AREA 9 840,000 East Palawan

    AREA 10 640,000 East Palawan

    AREA 11 600,000 East Palawan

    AREA 12 456,000 Cotabato

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    (Development / Production 30)

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    (Exploration 30)

    AVAILABLE AREAS

    Argao, Cebu Bislig, Surigao del Sur

    Siocon, Zamboanga del Norte

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    LUZON

    VISAYAS

    MINDANAO

    Mt. Makiling-Banahaw, Laguna/QuezonTotal installed capacity: 458.53 MWe

    Northern Negros, Negros OccidentalTotal Installed capacity: 49.35 MWe

    Tiwi,AlbayTotal installed capacity: 289 MWe

    Bacon-Manito, Albay/SorsogonTotal installed capacity: 151.5 MWe

    Palinpinon, Negros OrientalTotal Installed capacity: 192.5 MWe

    Tongonan, LeyteTotal installed capacity: 722.68 MWe

    Mt. Apo, North Cotabato/DavaoTotal Installed capacity: 108.48 MWe

    GEOTHERMAL SERVICE CONTRACT AREAS(PRODUCING FIELDS)

    GEOTHERMAL SERVICE CONTRACT AREAS

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    Buguias-Tinoc, Benguet/Ifugao (60 MW)

    Acupan, Benguet (20 MW)

    Bontoc-Sadanga, Mt. Province (80 MW)

    Daklan, Benguet (60 MW)

    Natib, Bataan (40 MW)

    Montelago, Oriental Mindoro (40 MW)

    Maibarara, Laguna (20 MW)

    Isarog, Camarines Sur (70 MW)

    Mt. Labo, Camarines Norte (65 MW)

    LUZON

    VISAYAS

    MINDANAO

    Sta. Lucia-IwahigPuerto Princesa City, Palawan (~1 MW)

    Mainit, Surigao del Norte (30 MW)

    Kalinga, Kalinga (60 MW)

    Biliran,Biliran (20 MW)

    Mt. Cabalian, Southern Leyte (80 MW)

    Amacan, Compostela Valley (20 MW)

    Mabini, Batangas (20 MW)

    Mt. Bulusan, Sorsogon (40 MW)

    GEOTHERMAL SERVICE CONTRACT AREAS(PRE-DEVELOPMENT STAGE)

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    Project Name LocationEstimatedCapacity

    (MW)

    EstimatedProject Cost(Million USD)

    EstimatedProject

    Cost(Million

    PhP)

    Amburayan River Hydropower Prospect Atok, Benguet 33.8 84.50 3,802.50Ilaguen Hydropower Prospect San Mariano, Isabela 25.0 62.50 2,812.50

    Quirino Hydropower Prospect Quirino, Ilocos Sur 10.0 25.00 1,125.00

    Binongan Hydropower Prospect Tineg, Abra 175.0 437.50 19,687.50

    Addalam Hydropower Prospect Aglipay, Quirino 46.0 115.00 5,175.00

    Hubo hydropower Prospect San Agustin, Surigao del Sur 10.0 25.00 1,125.00

    Asiga River Hydropower Prospect Santiago, Agusan del Norte 11.3 28.25 1,271.25

    Cateel E Hydropower Prospect Davao del Norte 17.5 43.75 1,968.75

    Tran AC River Hydropower Prospect Lebak, Maguindanao 30.6 76.50 3,442.50

    Lake Mainit River Hydropower Prospect Jabonga, Agusan del Norte 25.0 62.50 2,812.50

    TOTAL 384.2 960.50 3,222.50

    HYDROPOWER PROJECTS

    *Initial list of Frontier Areas

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    Program2009 ActualProduction

    (in Million Liters)

    Demand(in Liters)

    2009 ProductionCapacity

    (in Million Liters)

    Biodiesel 136.5 130.9 395.6

    Bioethanol 23.3 87.3 49.0

    ALTERNATIVE FUELS

    Gasoline demand of 4.61 billion liters in 2011 will require bioethanolblend of 230.5 million liters (@ 5% minimum) and 461 million liters

    (@10% mandatory)Need at least 6-13 production plants at 30 million liter/yr capacity tomeet the 5% or 10% mandated bioethanol blends in 2011,respectively

    Potential sites: Negros, Bukidnon, Zamboanga, Tarlac, Pampanga andCagayan

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    POWER GENERATION

    http://rds.yahoo.com/_ylt=A0oGdCtCsCxMA9cAEUZXNyoA;_ylu=X3oDMTB0bTNqMGw3BHNlYwNzYwRjb2xvA3NrMQR2dGlkA0Y3NTRfMTE1/SIG=1np9vsi04/EXP=1278083522/**http%3a//images.search.yahoo.com/images/view%3fback=http%253A%252F%252Fsearch.yahoo.com%252Fsearch%253Fei%253DUTF-8%2526p%253Dphilippine%252Blogo%2526fp_ip%253Dph%26w=339%26h=500%26imgurl=farm3.static.flickr.com%252F2553%252F3814520328_4c390d84d7.jpg%26size=54.9kB%26name=3814520328%2b4c390d84d7%2bjpg%26rcurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Frhea_cenizal%252F3814520328%252F%26rurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Frhea_cenizal%252F3814520328%252F%26p=philippine%2blogo%26type=jpeg%26no=2%26tt=13%252C560%26oid=f7730adf9dec6c48%26fusr=rheasan%26hurl=http%253A%252F%252Fwww.flickr.com%252Fphotos%252Frhea_cenizal%252F%26tit=FLAG%26sigr=11lq71u0q%26sigi=11meqc201%26sigb=12249vhu3%26sigh=11auquov3%26fr=yfp-t-701
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    Moving

    Towards

    A Competitive

    Power Market

    91.8 % of NPC GenCos

    NGCP as the TransCo Concessionaire

    68 % transferred to IPP Administrators

    Almost there.

    Unbundling

    Rates are Structured

    and Unbundled.

    Complied with.

    Inter-Grid Sept. 2002Intra-Grid Oct. 2005Inter-Class Oct. 2005

    Complied with.Removal of Cross Subsidies

    Luzon Commercial Operationon June 2006

    Preparation for WESM Visayas

    Complied with.Establishment of WESM

    OPEN ACCESS AND RETAIL COMPETITION

    STATUS OF EPIRA IMPLEMENTATION

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    Luzon grid needs a total additional capacity of 11,900 MW onwards to 2030

    Assumption: High Demand Forecasts

    0

    5,000

    10,000

    15,000

    20,000

    25,000

    MW

    Required Additional Cap 300 300 450 450 450 500 600 650 500 650 650 650 800 650 800 900 8 00 900 900

    Committed 41 634

    Existing Capacity 10,030 10,030 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384 9,384

    Required Reserve Margin 1,646 1,701 1,774 1,865 1,944 2,038 2,135 2,235 2,327 2,432 2,541 2,656 2,775 2,900 3,031 3,167 3,310 3,459 3,615 3,778 3,949 4,127

    Peak Demand 7,036 7,270 7,582 7,934 8,309 8,710 9,123 9,553 9,945 10,393 10,860 11,34911,86012,39412,952 13,53514,14514,783 15,45016,14716,87517,636

    2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

    Malaya (685.83 MW)Retirement

    600 MW Coal-Fired

    (GN Power);

    33.55 MW BacMan II

    40.8 MW BacMan I-2

    4.6 %

    AAGR

    LUZON POWER DEMAND AND SUPPLY OUTLOOK

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    2x300 MW Coal-Fired GN Power(600 MW)=2012

    First Gen San Gabriel (550 MW)=2013Ilijan Expansion (300 MW)

    Kalayaan CBK Expansion(360 MW)=2014

    Tanawon Geo (40 MW)=2013Rangas Geo (40 MW)=2015

    Manito-Kayabon Geo(40MW)=2016

    Pagbilao Exp. (400 MW)Quezon Power Exp.(500 MW)=2016

    Energy World CCGT(2x150 MW)=2011

    Green PowerNueva Ecija Biomass (18 MW)=2012Pangasinan Biomass 1 (18 MW)=2013Pangasinan Biomass 2 (18 MW)

    Pantabangan Expansion(78 MW)

    Balintingon River (30 MW)=2015

    Pagudpud Wind (40 MW)Burgos Wind (86 MW) 6 MW=2011

    40 MW=201240 MW=2013

    Northwind Pamplona (30 MW)=2011

    APEC CFB Phase II (50 MW)=2010

    - Indicative Projects, 3,448 MW

    - Committed Projects, 600 MW

    Energy World Wind Farm(50 MW)=2011Mauban Wind Farm(12MW)=2014

    Legend:

    Natural Gas

    HEP

    Geothermal

    Coal-Fired

    Biomass

    Wind

    Northwind Aparri Project(40 MW)=2011

    Green Power Isabela Biomass(18 MW)=2012

    Green Power Mindoro Biomass(18 MW)=2017

    Energy World Kanan B1 HPP(145 MW)=2013

    TAOil Power Project(2x135 MW)=2013

    POWER PROJECTS IN LUZON GRID

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    Aklan HEP (41 MW)=2012Villasiga HEP (8MW)=2012

    P A N A YP A N A Y

    Panay EnergyDevelopmentCorporation (164 MW)Unit I=Sept 2010Unit II=Dec 2010

    Dauin Geo (40 MW)2017

    Green Power

    Iloilo (35 MW)Unit I=2011Unit II=2012

    Cebu Energy

    DevelopmentCorporation (246 MW)Unit I=March 2010Unit II=June 2010Unit III=Jan 2011

    Southern LeyteGeo (40 MW)2019

    KEPCO SPC Power(200 MW)Unit 1= Feb 2011Unit II= May 2011

    EDC NasuloGeothermal(20 MW)=2013 - Indicative Projects, 186 MW

    - Committed Projects, 654 MW

    Legend:

    HEP

    Geothermal

    Coal-Fired

    Biomass

    Green PowerNegros (18 MW)=2014

    Green PowerSamar (18 MW)=2015

    POWER PROJECTS IN VISAYAS GRID

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    Green Power CDO Biomass(18 MW)=2013

    HEDCOR Tamugan.(27.5 MW)=2011

    AGUS 3 HEP(225 MW)=2011

    Minergy Bunker Fired(20 MW)=4th Qtr. 2010

    Conal Holding CFTPP(200 MW)Unit I=2012Unit II=2014

    CEPALCO Cabulig HEP(8 MW)=June 2011

    Tagoloan HEP(68 MW)=2012

    HEDCOR Sibulan Inc.(42.5 MW)Unit I=March 2010Unit II=August 2010

    EDC Mindanao Geothermal 3(50 MW)=2014

    - Indicative Projects, 581 MW

    - Committed Projects, 100 MW

    Legend:

    HEP

    Oil-based

    Coal-Fired

    Geothermal

    Biomass

    Green Power DavaoBiomass(18 MW)=2017

    POWER PROJECTS IN MINDANAO GRID

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    ENERGY EFFICIENCY

    AND CONSERVATION

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    EE&C TECHNOLOGIESLighting System (Fluorescent Lamp, Compact Fluorescent Lamp, LightEmitting Diodes, High Pressure Sodium Lamps)

    Air-conditioning System (Window Type ACU, Package Type ACU, Split

    Type, Centralized AC (Chiller), Absorption Type, Chilled Water Type ACSystem)

    The Energy Management and Building Automation System

    Green Building

    High Efficiency Motors

    High Efficiency Transformer

    Fuel-Efficient Boiler

    Heat Exchanger

    Variable Speed Control for Motors

    Cogeneration System

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    INVESTMENT OPPORTUNITIESOIL AND GAS

    Twelve (12) petroleum contract areas in shallow to deep waters with totalhectarage of 7,920,000

    Possible joint ventures with the existing service contractors

    COAL

    Three (3) available contract areas for exploration and development

    Possible joint ventures with the existing service contractors

    RENEWABLE ENERGY

    Possible joint ventures with existing Geothermal Service Contractors forexploration

    Hydro frontier areas available for pre-development phase

    Possible joint ventures with the existing service contractors for hydro

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    INVESTMENT OPPORTUNITIES

    ALTERNATIVE FUELS

    Production plants for bioethanol

    ENERGY EFFICIENCY & CONSERVATION

    Promotion and utilization of EE& C Technologies

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    INVESTMENT OPPORTUNITIESPOWER SECTOR

    Infrastructures in power generation

    Greenfield generation projects

    Possible joint ventures with proponents of indicative projectsNPC plants and NPC-IPP contracts for privatization

    Competition

    Electricity trading in the Wholesale Electricity Spot Market

    Transition from a government-supervised Market Operator to an

    Independent Market Operator

    Supply/aggregation business

    Metering service provider

    Missionary electrification

    New Power Providers

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    NEXT STEPS

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    NEXT STEPS FOR THE INVESTORSPlease contact DOE thru Ms. Lisa Go of the Investment PromotionOffice (IPO) for more data/information on the area/project

    For joint ventures, DOE-IPO will coordinate with the existing service

    contractors and arrange for a meeting with the interested company.For new areas, DOE-IPO will brief the investor on how to go about anenergy project, i.e. service contracts or power generation project;provide with the checklist of requirements and the process flow neededfor the type of project

    DOE-IPO will coordinate with the concerned DOE bureaus or units formore details on given area/site

    DOE-IPO contact details : Telefax : (+632) 840-2255E-mail address [email protected]

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    SALAMAT PO