SEC. VINCENT S. PREZ

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SEC. VINCENT S. PÉREZ
W01/3868
ENERGY ENVIRONMENT TOWARDS CLEANER AIR
Picture of city deleted from this presentation
to reduce file size
17 December 2003
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OUTLINE OF PRESENTATION

• Brief background
• Energy Projects for Environment
• Renewable Energy Developments
• Clean Air Act Compliance
• Promotion of Clean, Alternative Fuels
• Summary

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BACKGROUND
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THRUST OF THE ENERGY SECTOR
Philippine Energy Plan Energy Sector Goals

• Ensure more sufficient, stable, secure,
  accessible and reasonably-priced energy
• Pursue cleaner efficient energy utilization
  cleaner energy technology applications
• Cultivate strong partnership collaboration with
  key partners stakeholders
• Empower balance the interest of the public

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OVERVIEW OF THE ENERGY SECTOR
2003 Power Mix
Renewable Power Mix 42
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OVERVIEW OF THE ENERGY SECTOR
1st Nine Months Y-O-Y NPC Power Generation
2002
2003
NPC Generation 27,917.41 GWh Renewable Power
Mix 45
NPC Generation 29,447.58 GWh Renewable Power
Mix 47
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RENEWABLE ENERGY DEVELOPMENT
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RENEWABLE ENERGY
Promotion of RE Resources
Rationale for Renewable Energy

• RE contributes in strengthening the countrys
  energy self-sufficiency
• RE complements governments thrust of increased
  environmental sensitivity
• RE widely used in the governments rural
  electrification program

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RENEWABLE ENERGY RESOURCES
Resource Overview

• A US-NREL study shows
• Wind resources over 10,000 km² with 76,600 MW
  of potential installed capacity
• Micro-hydro applications potential capacity of
  at least 500 kW in No. Luzon Mindanao.
• Solar radiation nationwide an annual potential
  average of 5.0 - 5.1 kWh/m2/day
• Mini-hydro potential capacity of 1,784 MW from
  888 sites
• Ocean energy resource potential capacity of
  about 170,000 MW
• Biomass total potential of 235 MMBFOE

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RE POLICY FRAMEWORK
Recent Developments

• DOE issued RE Policy Framework 09 May 2003
• Policy bias towards the development and
  utilization of RE
• Promote more private sector participation in RE
  development
• Encourage to use in rural development off-grid
  electrification
• RE projects priority for incentives by the
  Board of Investments
• PNOC to establish a Renewable Subsidiary
• Philippine Senate ratified the Kyoto Protocol in
  October 2003
• DOE led two RE trade missions to Europe

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RE POLICY FRAMEWORK
Long Term Objectives

• Increase RE-based capacity by 100 by 2012
• Be the No.1 geothermal energy producer in the
  world
• Be the No. 1 wind energy producer in SE Asia
• Double hydro capacity by 2012
• New contribution of biomass, solar and ocean by
  131 MW
• Become a regional solar manufacturing export hub
• Increase non-power contribution of RE to the
  energy mix by 10 MMBFOE within the next ten years

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RE POLICY FRAMEWORK
10 Year Targets, MW
2002 Target Addl. 2013
Capacity
Geothermal 1,931
1,200 3,131
Hydro 2,518 2,950
5,468
Wind 0 417
417
Solar, Biomass, Ocean 0
131 131
TOTAL 4,449 4,698
9,147
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PROMOTION OF RE
Outbound Mission to Europe

• 2nd leg of RE Investment Mission to Europe last
  October
• DOE-led mission to the Czech Republic, Germany
  and Spain
• Generated keen interests for new investments in
  solar, biomass, wind and hydro power

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PROMOTION OF RE
Outbound Mission to Europe

• Germanys KfW committed to develop
• Wind projects in Boracay, Ilocos Norte and
  Surigao
• Hydro power project in Antique
• Spains interest on wind power and hydro
• 40 MW Pagudpod Wind Project
• 10 MW Abra de Ilog Wind Project in Mindoro
• 15 MW Wind Projects in Camiguin, Siargao and
  Dinagat Islands
• Mini-Hydro Projects in various islets of Palawan

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CLEAN AIR ACT COMPLIANCE
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CLEAN AIR ACT COMPLIANCE
Provisions Under the Clean Air Act (R.A. 8749)

• Sec. 26 set the specifications for all types of
  fuel and fuel-related products
• Sec. 27 regulate the use of any fuel or fuel
  additive
• Sec. 29 prohibit the manufacture, import, sell,
  offer for sale, introduce into commerce, convey
  or otherwise dispose of, in any manner leaded
  gasoline

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CLEAN AIR ACT COMPLIANCE
Factors Affecting Emission
FUEL QUALITY
VEHICLE TECHNOLOGY
EMISSION
VEHICLE USE
VEHICLE MAINTENANCE
TRAFFIC MANAGEMENT
DEPARTMENT OF ENERGY
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CLEAN AIR ACT COMPLIANCE
DOE Initiatives
FUEL QUALITY EMISSIONS IMPROVEMENT

• Review/Formulate Standards
• Conventional Fuels Gasoline/Diesel
• Alternative Fuels and Blends
• Coco-Methyl Ester, CNG, LPG

• Institutionalize Work Groups
• Standards Division
• Alternative Fuels (Transport) Division
• Petroleum Testing Laboratory

Review/Propose Tax/Incentives/MBI
Monitor Quality, Quantity, Price
Register Additives
IEC Road Transport Patrol, AUV Eff
Conduct/Cooperate Studies/Pilot Run
Gas Station Training Loan Fund
DEPARTMENT OF ENERGY
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CLEAN AIR ACT COMPLIANCE
Fuel Specifications
FUEL PROPERTY LIMIT EFFECTIVITY
Unleaded Gasoline Aromatics 45 max 01
Jan. 2000 35 max 01 Jan.
2003 Benzene 4 max 01 Jan. 2000
2 max 01 Jan. 2003 Anti-Knock Index
87.5 min 01 Jan. 2001 Reid Vapor Pressure
9 psi max 01 Jan. 2001 Automotive Diesel
Fuel Sulfur 0.20 max 01 Jan. 2001
0.05 max 01 Jan. 2004 Cetane No./Index
48 min 01 Jan. 2001 Industrial Diesel
Fuel Sulfur 0.30 max 01 Jan. 2001
Accelerated implementation to November 2003

DEPARTMENT OF ENERGY
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PROMOTION OF CLEAN, ALTERNATIVE FUELS
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ALTERNATIVE FUELS
Universe of Alternative Fuels

• Bio- fuels
• Coco-diesel Alcogas / diesel
• Natural Gas LPG
• Water-based Wind Solar
• Hydrogen Electric
• Fuel Cells
• Fuel Blends Hybrids Dual

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ALTERNATIVE FUELS
Upcoming Policies

• Promotion of alternative transport fuels
• Compressed Natural Gas (CNG) buses in Metro
  Manila and Calabarzon
• Autogas-fuelled taxis in Metro Manila and Cebu
• Coco-diesel in copra-growing areas

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COMPRESSED NATURAL GAS (CNG)
Natural Gas Vehicle

• Initially converted DOE/PNOC shuttle buses to NGV
• 6 units of Enviro taxis arrived from Malaysia, a
  collaborative work between PNOC Petronas
• DBP signed Memorandum of Agreement with RRCG Bus
  Company for financing package for CNG buses

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COMPRESSED NATURAL GAS (CNG)
Natural Gas Vehicle

• 2 demo buses for inauguration
• Lower tariff for NGV-related facilities and
  equipment
• PNOC first to avail lower tariff rate to acquire
  additional 160 CNG cylinders

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COCO METHYL ESTHER (CME)
Policy Framework on CME

• Objectives
• CME-diesel blend for public utility vehicles
• As lubricant for 2-stroke motorcycle tricycle
  engines
• Status
• On-going performance tests on DOE vehicles
• Pilot demo at PCA DENR
• Dynanometer tests on CME-diesel blends of 1 to 5

• Standards as PNS for pure CME approved by the
  Bureau of Product Standards (BPS) in May 2003

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AUTOGAS
Autogas Initiatives

• Emerson Taxi in Cebu pioneered operation of
  bi-fuel taxi fleet with 50 autogas taxi units
• DBP operating 20 bi-fuel service units
• First public autogas dispensing station of Petron
  in Pasig
• DBPs Clean Alternative Transport Fuel Financing
  Program for autogas projects

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SUMMARY
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SUMMARY
Way Forward

• Pursue the complete implementation of NGV for
  Public Transport Program within the next 10 years
• Pursue strong policy towards the promotion and
  implementation of the Alternative Fuels Program
  for Transport with a target of 13,000 vehicles
  running on alternative fuels by 2013
• Promote wider application for CME, AutoGas and
  NatGas in the residential, industrial and
  commercial sectors
• By 2013, aim for a cumulative emission avoidance
  level of 32,000 gigagrams CO2
• Strict implementation of the provisions relating
  to fuel quality in the Clean Air Act
• Push for the conversion of existing old oil-based
  power generating facilities into cleaner natural
  gas

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MERRY CHRISTMAS TO ALL!
www.doe.gov.ph