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The Development Study on Energy Efficiency and Conservation in the Republic of the Philippines

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The Development Study on Energy Efficiency and Conservation in the Republic of the Philippines Republic of the Philippines Department of Energy THE DEVELOPMENT STUDY ON ENERGY EFFICIENCY AND CONSERVATION IN THE REPUBLIC OF THE PHILIPPINES Final Report March 2012 Japan International Cooperation Agency Tokyo Electric Power Company, Inc. ILD JR 12-025 Table of Contents Chapter 1 Introduction ....................................................................................................................................... 1-1 1.1 Background and Objective ................................................................................................................ 1-1 1.1.1 Background of the Study ................................................................................................................... 1-1 1.1.2 Objective of the Study ....................................................................................................................... 1-2 1.1.3 Target Area of the Study .................................................................................................................... 1-2 1.2 Contents of the Study ........................................................................................................................ 1-2 1.3 Approach of the Whole Study ........................................................................................................... 1-4 1.3.1 Overview of the Study ....................................................................................................................... 1-4 1.4 Schedule of the Study ........................................................................................................................ 1-5 1.5 Study Team Structure ......................................................................................................................... 1-6 1.6 Framework of Discussion with Related Parties ................................................................................. 1-7 1.7 Re-commission Work to Local Consultants....................................................................................... 1-9 1.8 Others .............................................................................................................................................. 1-10 Chapter 2 Brief Overview of Energy Sector in the Philippines.......................................................................... 2-1 2.1 General Information .......................................................................................................................... 2-1 2.1.1 Geography and Natural Ambience ..................................................................................................... 2-1 2.1.2 Overview of Politics and Economy ................................................................................................... 2-2 2.2 Energy Policy/Plan ............................................................................................................................ 2-8 2.2.1 National Energy Policy ...................................................................................................................... 2-8 2.2.2 Energy Law ..................................................................................................................................... 2-14 2.3 Utilities and Tariffs of Power Sector and the other Energy Sectors ................................................. 2-18 2.3.1 Utilities of Power Sector .................................................................................................................. 2-18 2.3.2 Rate and Tariff of Electricity ........................................................................................................... 2-22 2.3.3 Energy Price of Oil Industry ............................................................................................................ 2-29 2.3.4 Utilization of Natural Gas ................................................................................................................ 2-33 Chapter 3 Current Situation and Issues on EE&C in the Philippines ................................................................. 3-1 3.1 Principle of Analyzing the Current Situation and Issues ................................................................... 3-1 3.1.1 Principle of Analysis .......................................................................................................................... 3-1 3.1.2 Information Source for Grasping the Current Situation .................................................................... 3-3 3.2 Energy Demand and Supply Situation in the Philippines .................................................................. 3-3 3.2.1 Primary Energy Supply and Production ............................................................................................ 3-3 3.2.2 Energy Conversion ............................................................................................................................ 3-5 3.2.3 Final Energy Consumption ................................................................................................................ 3-6 3.2.4 Energy Intensity ................................................................................................................................. 3-7 3.2.5 Individual Sector ............................................................................................................................... 3-9 3.2.6 Power Supply and Demand ............................................................................................................. 3-13 3.3 Re-Commission to Local Consultant ............................................................................................... 3-15 3.3.1 Plan of Re-Commission to Local Consultant .................................................................................. 3-16 3.3.2 Overview and Results of the Survey ............................................................................................... 3-19 3.4 Site Visit Survey .............................................................................................................................. 3-45 3.5 Current Situation and Issues by Sector ............................................................................................ 3-47 3.5.1 Power Sector .................................................................................................................................... 3-47 3.5.2 Industrial Sector ............................................................................................................................... 3-54 3.5.3 Commercial and Business sector ..................................................................................................... 3-58 3.5.4 Government Sector .......................................................................................................................... 3-60 3.5.5 Residential Sector ............................................................................................................................ 3-63 3.6 Organizational Structure .................................................................................................................. 3-72 3.6.1 Government Organizations .............................................................................................................. 3-74 3.6.2 Private Organizations ...................................................................................................................... 3-77 3.7 Overview of Supporting Activities for EE&C ................................................................................. 3-79 3.8 International Cooperation Activities ................................................................................................ 3-84 3.8.1 Activities of Japanese International Cooperation ............................................................................ 3-85 3.8.2 Activities of International Cooperation ........................................................................................... 3-85 3.8.3 Summary ......................................................................................................................................... 3-90 3.9 Overview of Current Situation and Issues ....................................................................................... 3-91 Chapter 4 EE&C Bill ......................................................................................................................................... 4-1 4.1 Current Situation ............................................................................................................................... 4-1 4.1.1 Legal System ..................................................................................................................................... 4-1 4.1.2 EE&C Law and EE&C Bills in the past ............................................................................................ 4-3 4.2 Obstructive Factors to EE&C Law Enactments............................................................................... 4-11 4.3 Establishment of the EE&C Bill ...................................................................................................... 4-12 4.3.1 Items to be noted when establish the EE&C bill ............................................................................. 4-12 4.3.2 Contents to be included to EE&C Bill ............................................................................................. 4-14 4.3.3 Contents Recommended for Reconsideration in the Current Version of the EE&C Bill ................
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