Philippine energy sector seeks new cash injection

An outlook report by the Department of Energy said the required investment would be 53 billion pesos for this year, 281 billion pesos in 2013, 258 billion pesos in 2015 and 182 pesos in 2016.

Apart from ensuring national energy security, the investments are also aimed at “climate-proofing” the Philippine energy system, promoting a low-carbon future with the rollout of electric vehicles and the massive use of alternative fuels, adopting smart technologies and facilitating the implementation of strategic infrastructure.

For this year alone, the DOE is aiming to provide electricity access to 9,860 households through the Household Electrification Programme and 4,982 villages (composed of roughly 30 households on average) under the Sitio Electrification Programme.

The agency is also aiming to deploy 200 compressed natural gas-fed buses within the year and an initial 20,000 electric tricycles within a two-year period starting 2013 under the government’s $500-million (Bt14.9 billion) e-trike programme.

The Philippine government is promoting the use of electric vehicles, particularly for public transport such as the tricycles, as this would benefit the environment and support the country’s drive to become more energy independent. Based on previous studies, every 20,000 e-trikes that are introduced to Manila’s streets should save the country 100,000 litres of fuel imports each day, saving about $35 million a year.

The DOE will also continue to promote energy exploration and development following the near completion of the Philippine Energy Contracting Round 4. The energy department announced that 11 contracts for the exploration and development of 11 coal blocks might soon be awarded, while five contracts for oil and gas exploration have already been endorsed for approval.