THE ELECTRIC POWER INDUSTRY: Power Capacity Mix
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1 THE ELECTRIC POWER INDUSTRY: Power Capacity Mix Energy & Power Committee American Chamber of Commerce AmCham Hall, Makati City 20 March 2017 Undersecretary Jesus P. Posadas
2 DOE s Mandate To ensure the reliability, security, quality and affordability of supply of electric power and protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power.
3 2016 Capacity Mix - PHILIPPINES Total Dependable Capacity = 19,097MW Total Available Capacity = 14,996MW Total RE = 31.4% Peak Demand = 13,272MW
4 Diversified Fuel Mix by Grid Luzon Visayas Mindanao Peak Demand, MW 9,726 1,893 1,653 Dependable Cap, MW 13,600 2,813 2,684 Share of RE, % Available Cap, MW 10,480 2,299 2,213
5 2016 Capacity Mix - Luzon Total Dependable Capacity = 13,600MW Total Available Capacity = 10,484MW Total RE = 27.1% Peak Demand = 9,726MW
6 2016 Capacity Mix - Visayas Total Dependable Capacity = 2,813MW Total Available Capacity = 2,299MW Total RE = 47.2% Peak Demand = 1,893MW
7 2016 Capacity Mix - Mindanao Total Dependable Capacity = 2,684MW Total Available Capacity = 2, 213MW Total RE = 37% Peak Demand = 1,653MW
8 Required Power System Capacity Addition between Capacity Addition (MW) Baseload (Coal, Geothermal, NatGas*, Nuclear, Biomass* and Hydro*) Mid-merit (NatGas and all others) Luzon Visayas Mindanao Total by Type 4,320 1,968 2,100 8,388 4,800 1,500 1,500 7,800 Peaking (Oil, Solar PV daytime and Wind) Note: At Baseload, Mid-merit, Peaking Requirement *NatGas currently considered as baseload but belongs to mid-merit category; Biomass is baseload only during availability of feedstock; Hydro is baseload only during rainy season ,150 Total per grid 10,070 3,618 3,650 17,338
9 Challenges in the Power Industry High Cost of electricity Yellow/Red Alerts and sporadic Power interruptions Limited and unreliable transmission system Delayed and unpredictable permitting processes Limited Power market (Ongoing Market Dev t in Mindanao) Electrification gaps in off-grid areas due to distance and lack of capacity
10 ASEAN Electricity Rates, in PhP/kWh (as of 2015) PhP/kWh January Indonesia Malaysia Philippines Singapore Thailand Vietnam Residential Commercial Industrial
11 ASEAN-6 Installed Capacity and Electricity Consumption per Capita ASEAN-6 Countries Population in million Installed Capacity Per Capita in kw Electricity Consumption per Capita in kwh Philippines Thailand ,591 Indonesia Malaysia ,244 Singapore ,483 Data Sources: Philippine Department of Energy (DOE), Electricity Generating Authority of Thailand (EGAT), Ministry of Energy and Mineral Resources/Perusahaan Listrik Negara/ National Electric Company (PLN), Malaysian Energy Information Hub (MEIH)/ Economic Planning Unit, Ministry of Industry and Trade General Directorate of Energy Energy/Electricity Regulatory Authority of Vietnam (ERAV), Energy Market Authority-Singapore (EMA), International Energy Agency (IEA), Southeast Asia Energy Outlook 2015 GDP per Capita in USD from Asian Development Bank (ADB)
12 Challenges in the Power Industry High Cost of electricity Yellow/Red Alerts and sporadic Power interruptions Limited and unreliable transmission system Delayed and unpredictable permitting processes Limited Power market (Ongoing Market Dev t in Mindanao) Electrification gaps in off-grid areas due to distance and lack of capacity
13 Action Plans Increase supply and ensure affordable electricity cost, both for grid and off-grid areas o Energy Projects as Projects of National Significance o DOE to develop a Program for LNG Infrastructure and Nuclear Energy Development Firm up available energy capacities that are technology neutral without sacrificing environmental standards o Optimal Fuel Mix ( Share of Baseload, Mid-merit and Peaking Capacity requirement) Focus on delivery of Services through: o Improve reliability, availability and resiliency of energy infrastructures o Institutionalize Performance Audit of Power facilities to ensure high compliance to existing policies o Grid Interconnectivity including off-grid islands
14 Coal Mine-Mouth Project with inter-island connection Phase 2 - (Mindoro- Batangas- 20 KM) Phase 1 - (Antique-Mindoro 20 KM) Phase 3 (Antique-Panay- 62 KM)
15 Action Plans Increase supply and ensure affordable electricity cost, both for grid and off-grid areas o Energy Projects as Projects of National Significance o DOE to develop a Program for LNG Infrastructure and Nuclear Energy Development Firm up available energy capacities that are technology neutral without sacrificing environmental standards o Optimal Fuel Mix ( Share of Baseload, Mid-merit and Peaking Capacity requirement) Focus on delivery of Services through: o Improve reliability, availability and resiliency of energy infrastructures o Institutionalize Performance Audit of Power facilities to ensure high compliance to existing policies o Grid Interconnectivity including off-grid islands
16 Action Plans Increase supply and ensure affordable electricity cost, both for grid and off-grid areas o Energy Projects as Projects of National Significance o DOE to develop a Program for LNG Infrastructure and Nuclear Energy Development Firm up available energy capacities that are technology neutral without sacrificing environmental standards o Optimal Fuel Mix ( Share of Baseload, Mid-merit and Peaking Capacity requirement) Focus on delivery of Services through: o Improve reliability, availability and resiliency of energy infrastructures o Institutionalize Performance Audit of Power facilities to ensure high compliance to existing policies o Grid Interconnectivity including off-grid islands
17 THE ELECTRIC POWER INDUSTRY: Power Capacity Mix Energy & Power Committee American Chamber of Commerce AmCham Hall, Makati City 20 March 2017 Undersecretary Jesus P. Posadas
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