1.5 Energy Efficiency and Conservation

1. EXECUTIVE SUMMARY (Volume 1: National Energy Plan)

1.5 Energy Efficiency and Conservation

In line with its mandate to promote the efficient and judicious utilization and conservation of energy and make it a way of life for every Filipino, the DOE will vigorously pursue programs and projects which cover two areas, namely: fuel efficiency and conservation as well as power conservation and demand-side management.

With an invigorated energy efficiency and conservation program dubbed as the “EC way of life”, a cumulative aggregate savings of 240.8 MMBFOE, to include the use of alternative fuels will be attained within the planning period.

This energy management program is expected to redound not only to the total reduction in oil importation but also to the avoidance of greenhouse gas (GHG) emissions of approximately 61,977 gigagram carbon dioxide (GgCO2) during the ten-year period.

1.6 Environmental Management

1.6.1 Alternative Transport Fuels

The increasing use of alternative fuels, namely: compressed natural gas (CNG), coconut methyl ester (CME) or coco-biodiesel, autogas, ethanol (ethyl alcohol or “grainalcohol”) in transport and technology will be seen in the next ten years, in response to the fluctuating crude oil prices in the world market and the growing concern for air quality and the environment, in general.

1.6.1.1 Compressed Natural Gas

The DOE will ensure the availability of CNG and the development of related infrastructure facilities to make the industry commercially feasible to all NGVPPT participants. The DOE commits to accelerate incentives and support for NGVPPT stakeholders to encourage other transport firms to shift to CNG. By 2005, about 140 commercial CNG public utility buses are expected to ply the major routes of Metropolitan Manila and some parts of Southern Luzon, with this number increasing to 900 in 2010 and all Metro Manila public utility buses by 2014.

1.6.1.2 Coconut Methyl Ester

An intensive Information, Education and Communication (IEC) campaign will be conducted to ensure the conformity of the entire bureaucracy to Memorandum Circular No. 55 (M.C.55) including the local government units. As a result, it is expected that over 29,000 diesel-run government vehicles will comply with M.C. 55 and be able to use approximately over 65,000 kiloliters of CME in 2005.

During the planning period, policies will be formulated for the expanded utilization of coco bio-diesel to include stationary engines.

1.6.1.3 Ethanol

The DOE, in collaboration with other government agencies will promote the use of ethanol otherwise known as ethyl alcohol as an alternative source of fuel for the transport sector. One of the country’s major oil players, Petron Corporation has signified its interest in undertaking the blending of ethanol with other fuels and ensuring its availability in the local market while a group of sugar industry players formed the first Philippine Fuel Ethanol Alliance to help the government in pursuing the development of ethanol in the country. The Philippines will also collaborate with the government of Thailand in conducting a study to develop ethanol as a fuel additive.

The legislative support to ethanol utilization is embodied under the Senate Bill No. 1677 and House Bill No. 2583.calling for the establishment of a “National Fuel Ethanol Program.”

1.6.1.4 Autogas

An autogas standard on road vehicles, cylinders and dispensing stations will be developed by 2005 through the joint in collaboration with the Department of Trade and Industry (DTI). During the planning period, capacity building will be instituted by conducting an IEC campaign and training programs on autogas conversion, repair and maintenance.