Strengthening the Non-Conventional and Rural Energy Development Program in the Philippines : A Policy Framework and Action Plan

Abstract

As articulated in the new energy plan for 1999-2008, the key sector objectives for the Philippines energy sector remain security of energy supply, affordable prices, and an energy infrastructure compatible with broader social and environmental objectives. Ths report is organized as follows: Chapter 1 briefly lays out the social, environmental, and economic justifications for developing non-renewable energy resources (NRE) against the backdrop of privatization and reform of the energy sector. It reviews the experience with NRE from the 1970s to the present, highlighting some important lessons learned from both successful and failed initiatives. Chapter 2 reviews the commercial status and current and expected costs internationally of NRE technologies of potential usefulness. It distinguishes between immediate and long-term potential, small- and large-scale systems, and rural and urban applications, as well as reviewing the status of several off-grid and grid-connected technologies. Chapter 3 examines how existing and impending policies, legislation, incentives, procedures, and institutional arrangements affect, positively or negatively, the commercialization of NRE in the Philippines. Chapter 4 outlines near-term investment possibilities in off-grid electrification and large-scale wind power. The final chapter outlines some specific actions that need to be taken to pursue the priority investments identified. the chapter then reviews multilateral and bilateral assistance.