1. INTRODUCTION V

1. INTRODUCTION

Being an archipelagic country with abundant agricultural and renewable resources and considering the fast technological developments locally and internationally, there exist bright prospects and greater opportunities for NRE development, utilization and commercialization in the country.

Considering the population of 73.1 million people in which about 50% are living in the rural areas, there exist a large potential for vast opportunities for trade and investment in the country. In addition, it has been identified that indigenous resources are largely utilized by the rural populace especially in the household sector.

2. POTENTIALS

The Philippines, being an agricultural country where major crops grown are rice, coconut and sugarcane, could generate substantial volumes of residues that could be utilized as energy fuel. Data and statistics on these available NRE resources obtained from various government agencies give an optimistic picture of NRE in the future.

Based on the projections of the Department of Agriculture and the Department of Environment and Natural Resources, the aggregate biomass supply potential in 2000 is equivalent to 253.8 Million Barrels of Fuel Oil Equivalent (MMBFOE) and still is expected to exhibit a modest growth of 301.5 MMBFOE in 2008. Contributors to this aggregate biomass supply potential are woodwastes, bagasse, coconut and rice residues, animal wastes and municipal solid wastes. The geographical consideration on biomass supply reveals that there is an abundant supply of bagasse in Regions III, IV, VI, and VII. Coconut residues abound in Regions IV, VIII, IX and XI. Abundance of ricehull on the otherhand is noted in Regions II, III, IV and VI.

The country, which is situated on the fringes of the Asia Pacific moonsoonal belt, exhibits a good potential for wind energy. The Philippine Atmospheric, Geophysical, Astronomical Services Administration (PAG-ASA) data showed that the national average mean wind power density is about 31 watts per square meter (W/m2). Moreover, the data indicated that Region I has the highest potential for wind energy applications with an annual wind power density of 88 W/m2. Other regions with good wind regimes are Regions VI, CAR, V and III. More specifically, the sites that have been identified as areas with high potential for wind energy utilization are Ilocos; Mt. Province; Cuyo Island; Basco, Batanes; Catanduanes; Tagaytay City, Lubang and Cabra Islands off the Northwestern coast of Mindoro, western portions of Batangas, Guimaras, Masbate, northeast coast of Negros Occidental and Palawan.

Being located just above the equator, the Philippines likewise has a vast potential for various solar energy applications. The country’s average daily insolation is around 5 kilowatt hour per square meter per day (kwh/m2d). Estimated also from PAG-ASA's weather data, the country's average solar radiation based on sunshine duration is 161.7 W/m2 with a range of 128-203 W/m2 .

The country has an aggregate micro-hydro power potential of about 28 MW located in various areas of the country. Based on the regional profile of micro-hydro potential, Regions V and VIII show good prospects.

The country's ocean resource area is 1,000 square kilometers which is attributed mainly on its archipelagic nature. Based from a study, the potential capacity for this resource is theoretically estimated to be about 170,000 MW. Although, there is very little information available on the potential of ocean energy, navigational experiences hypothesize that these systems are significant resource options. Initial ocean energy potential sites identified are Hinatuan Passage, Camarines, Northeastern Samar, Surigao, Batan Island, Catanduanes, Tacloban, San Bernardino Strait, Babuyan Island, Ilocos Norte, Siargao Island and Davao Oriental.