opportunities and challenges for eastern visayas · support the eastern visayas energy development...
TRANSCRIPT
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Climate Change, Industrial
Policy and Sustainable Energy: Opportunities and Challenges for
Eastern Visayas
1
Inclusive Local Development: What Role for Sustainable
Industrial Policy?
August 10, 2017 | Visayas State University
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I. The Global Agenda: Industries, Climate
Action, and Sustainable Energy
II. Overview of the National and Regional
Plans
III. In Focus: Energy and Power Sector
Presentation Outline
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Sustainable Development Goals
The 2030 Agenda
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4
There remains a challenge in attaining and
sustaining a robust economic growth…
3.0 2.1
(6.8)
4.6
(2.4)
4.6
12.4
(10.0)
(5.0)
0.0
5.0
10.0
15.0
2010 2011 2012 2013 2014 2015 2016
Figure 1. Economic Growth Rate, Eastern Visayas, 2010-2016
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…especially for the agriculture and industry sectors
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
5.0
10.0
15.0
20.0
25.0
2010 2011 2012 2013 2014 2015 2016
AHFF Industry Services
Figure 2. Growth Rate of Economic Sectors, Eastern Visayas, 2010-2016
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In particular, the manufacturing subsector’s growth
has been erratic
Table 1. Growth Rate of Industry Subsectors, Eastern Visayas, 2010-2016
Industry Subsectors 2010 2011 2012 2013 2014 2015 2016
Mining and Quarrying 26.6 116.5 7.6 (24.3) 25.6 16.8 3.2
Manufacturing (1.7) 6.9 (40.4) 33.5 (16.0) (3.0) 19.6
Construction 5.1 (17.2) 29.0 9.8 27.4 12.3 44.5
Electricity, Gas, and Water
Supply 0.6 (0.1) 7.7 (6.5) (0.0) 10.7 2.1
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In particular, the manufacturing subsector’s growth
has been erratic
Table 1. Growth Rate of Industry Subsectors, Eastern Visayas, 2010-2016
Industry Subsectors 2010 2011 2012 2013 2014 2015 2016
Mining and Quarrying 26.6 116.5 7.6 (24.3) 25.6 16.8 3.2
Manufacturing (1.7) 6.9 (40.4) 33.5 (16.0) (3.0) 19.6
Construction 5.1 (17.2) 29.0 9.8 27.4 12.3 44.5
Electricity, Gas, and Water
Supply 0.6 (0.1) 7.7 (6.5) (0.0) 10.7 2.1
Impact of Yolanda Fire incident
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Vulnerability reduction is an integral part of
development
Philippines ranks
3rd among
countries with the
highest disaster
risks in the world
(World Risk Report
2016)
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Vulnerability reduction is an integral part of
development
The country’s
average
temperature is
projected to be
warmer by mid-
21st century
Figure 1. Annual Mean Temperature
Source: DOST-PAGASA
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Vulnerability reduction is an integral part of
development
30 provinces are
exposed to
multiple hazards
(Category 3
provinces)
Source: PDP Midterm Update
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Vulnerability reduction is an integral part of
development
Eastern Visayas
is highly
vulnerable to
disasters
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Philippine Development Plan
(PDP) 2017-2022
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Eastern Visayas Regional
Development Plan 2017-2022
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Strategic Framework
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Medium-term Strategies Towards an Enabling and
Supportive Macroeconomic Environment
• Adopt economic dispersion through regional agglomeration
• Ramp up rural industrialization
• Modernize agriculture and fisheries sector
• Generate job-creating investments
• Improve the business climate
• Accelerate implementation of infrastructure programs and
projects
• Adopt green growth for sustainable development
• Enhance disaster risk reduction and climate change adaptation
and management
• Sustain investment on human capital
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Medium-term Key Priority Thrusts
Agriculture and Fisheries
Manufacturing Tourism
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Expected Drivers of Growth
Demand Side
• Household consumption: remittance
inflows, strong consumer confidence,
low inflation rate
• Government spending: public
construction, public administration,
reconstruction activities
• Investment: manufacturing
resurgence program, public
infrastructure projects
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Expected Drivers of Growth
Supply Side
• Resurgence of agriculture and fishery
• Boost in construction industry from
aggressive government spending for
infrastructure (Golden Age of Infrastructure)
• Influx in tourists
• Expansion in retail trade
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Risks and Uncertainties
• Weather disturbances
• Logistics bottlenecks
• Delays in government infrastructure and
reconstruction projects
• Socio-political uncertainties
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In focus: Energy and
Power Sector
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Inclusive Local Development: What Role for Sustainable
Industrial Policy?
August 10, 2017 | Visayas State University
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PDP 2017-2022: Energy and Power Sector
• Support the required massive investments in the energy
and power sector
• Encourage competition to drive down electricity costs
• Pursue the development of the natural gas industry
• Ensure that the needed transmission facilities are
implemented on time
• Prioritize provision of electricity services to unelectrified
areas
• Improve energy efficiency
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Largest
geothermal
energy producer
of the Philippines
Capacity of around 700 megawatts
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CHALLENGES IN THE ENERGY AND POWER
SECTOR OF THE REGION:
• Despite being the largest producer of geothermal energy in the
country, the region is beset with high cost of electricity
Table 2. Average Power Rates by Region, as of September 2016 (in PhP/kWh)
Source: Eastern Visayas Regional Development Plan (RDP) 2017-2022
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CHALLENGES IN THE ENERGY AND POWER
SECTOR OF THE REGION:
• The region also experiences unstable power supply due to
extreme weather events and other natural hazards, as well as
scheduled maintenance operations of power companies
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CHALLENGES IN THE ENERGY AND POWER
SECTOR OF THE REGION:
• Damage caused by Supertyphoon Yolanda (Haiyan) to the
electricity sector amounted to PhP541.73 million. Losses in
revenue reached PhP1 billion.1
• The power outage that arise from the recent 6.5 magnitude
earthquake that struck the region will cost an average of
PhP105 million of losses per day in the energy and power
sector.2
____________________________
1SULHOG: Eastern Visayas Yolanda Reconstruction Plan 2Estimated by NEDA VIII
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RDP 2017-2022: Energy and Power Sector
Institute measures to ensure affordable and reliable
power supply
• Streamline approval process for power generation
projects
• Practice proper and regular maintenance to avoid
failure of the system
• Accelerate renewable energy (RE) projects through
the Renewable Energy Act
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POTENTIAL RENEWABLE Energy Sources
3.15 MVA
5/6.25 MVA
10/12.5 MVA
20/25 MVA
138kV Line
69kV Line
230kV Line
ABS NGCP ABS
NGCP S/S
12/15 MVA
2-Transformer S/S
Existing
Substation
Submarine Cable
LEGEND
:
H
Kananga Mini-
Hydro (2MW –
LEYECO V)
H
Calbiga Mini-Hydro
(5MW – SAMELCO
II)
H Paranas Hydro Plant
(5MW – SAMELCO II)
Bugtong Mini-Hydro
(1MW – SAMELCO I) H
H H
Dagami Hydro Plant
(3MW – DORELCO &
LEYECO III)
S
Solar Plant (300kW – LEYECO III)
Javier Mini-Hydro
(1MW – DORELCO)
Las Navas Hydro
(5MW – NORSAMELCO)
H
H
H
Lawaan Hydro Plant
(1MW – ESAMELCO)
St. Bernard Mini-
Hydro (600kW –
SOLECO) H
S
Hydro Plant
SOLAR Plant
Source: Federation of Rural Cooperatives in Region (FRECOR) 8
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RDP 2017-2022: Energy and Power Sector
Institute measures to ensure affordable and reliable
power supply
• Reduce power cost:
– Re-negotiate for a competitive selection process
generation rate
– Support government’s efforts in shifting the Feed-
in-Tariff (FiT), missionary and universal charges,
including taxes and subsidies from industry to the
national treasury
– Formulate an enabling policy to utilize energy
resource funds for any RE projects
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RDP 2017-2022: Energy and Power Sector
Institute measures to ensure affordable and reliable
power supply
• Electric cooperatives to undergo structural and
operational reforms
• Continue or expand the implementation of the Sitio
Electrification Program of the DOE
• Ensure grid reliability, especially that of renewable
energy
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RDP 2017-2022: Energy and Power Sector
Institute measures to ensure affordable and reliable
power supply
• Need to implement Transmission Development Plan
for Region VIII
Existing substations will be upgraded and new
substations will be constructed. Distribution lines
will be uprated and upgraded from single phase
to 3-phase.
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RDP 2017-2022: Energy and Power Sector
Institute measures to ensure affordable and reliable
power supply
• Comply with the building code and standards for a
climate-proof and resilient infrastructure and facilities
to secure them against natural calamities since
transmission lines are the first to be affected during
typhoons
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Recent Developments
Special Regional Development Council VIII – Executive Committee (RDC
VIII-ExCom) Meeting on July 8, 2017
Resolution Rationale
RDC VIII-ExCom
Resolution 8-A, Series of
2017
Urging All Concerned
Stakeholders to Build Back
Better a More Resilient
Energy Sector
The recent disaster highlighted the need to
build back better a more resilient energy
sector as earthquake damaged the
Tongonan geothermal plants, which
resulted in the total power blackout in the
whole of Eastern Visayas and in Bohol.
This can be done by strengthening the
power grids through better connectivity and
transmission of power in and out of the
region. Furthermore, strategic management
of the power grids will reduce or prevent
damage to the power facilities in the event
of disasters.
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Recent Developments
Special Regional Development Council VIII – Executive Committee (RDC
VIII-ExCom) Meeting on July 8, 2017
Resolution Rationale
RDC VIII-ExCom
Resolution No. 8-B, Series
of 2017
Enjoining the Department of
Energy (DOE) and Other
Concerned Agencies in the
Energy Sector to Review the
Regional Transmission
Development Plan and
Support the Eastern Visayas
Energy Development Plan
The Council enjoined the DOE to support
the Eastern Visayas Energy
Development and Resiliency Plan,
developed by FRECOR VIII, which will
provide stable and secure electrification
services in the region. This goal of
resiliency is consistent with Executive
Order No. 29, Series of 2017, which shifted
the focus from mere disaster awareness to
disaster resiliency, and Executive Order
No. 30, Series of 2017, which classifies
energy as a matter of national significance.
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Recent Developments
Special Regional Development Council VIII – Executive Committee (RDC
VIII-ExCom) Meeting on July 8, 2017
Resolution Rationale
RDC VIII-ExCom
Resolution No. 9, Series of
2017
Creating a Technical Working
Group (TWG) to Study the
Formation of Eastern Visayas
Local Government Units
(LGU) Alliance for Resiliency
The Council saw the need to establish an
LGU alliance for resiliency wherein
neighboring cities and municipalities act as
the first responders in the affected areas
within the region. This system shall
strategically model out the roles of the
neighboring LGUs in the region during
disasters. The system can incorporate
electric cooperatives. As an example,
LGUs can register their generator sets and
be able to help those areas most in need in
case a similar power situation arising from
calamities occur.
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Recent Developments
Special Regional Development Council VIII – Executive Committee (RDC
VIII-ExCom) Meeting on July 8, 2017
Resolution Rationale
RDC VIII-ExCom
Resolution No. 11, Series of
2017
Creating a Subcommittee on
Energy under the RDC VIII-
Infrastructure and Utilities
Development Committee
(IUDC)
The Council also acknowledged energy as
a regional development concern and
decided to form a subcommittee on
energy under the RDC VIII-IUDC. This is
intended to give closer attention on the
power/energy issues, considering the
importance of energy in the socio-
economic development of any area. This
sub-committee shall be chaired by the
DOE, with members to be identified by the
RDC VIII-IUDC.
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Daghang Salamat!
41
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Climate Change, Industrial
Policy and Sustainable Energy: Opportunities and Challenges for
Eastern Visayas
42
Inclusive Local Development: What Role for Sustainable
Industrial Policy?
August 10, 2017 | Visayas State University