2.1 Luzon

2. EXECUTIVE SUMMARY (Volume 2: Regional Energy Plans)

The 2005 PEP Update embarked on the preparation of Regional Energy Plans (REPs) of selected regions to ensure more focused, comprehensive, region-specific energy plans. This initiative was consistent with the strengthened mandate of the DOE to “develop, prepare and update an integrated national energy plan and other support plans for the energy sector”. The REPs likewise aim to highlight the role of energy as a critical sector in the region’s development and provide in-depth details that will substantiate the indicative plans and programs under the PEP Update.

2.1 Luzon

Acknowledged for its substantial indigenous energy resources that may be tapped to meet its growing energy requirements, Luzon remained as the preferred haven for foreign investments. In this Plan Update, formulation of REPs for Region IV-A and IV-B were considered being the top contributors to the Luzon growth.

2.1.1 Region IV-A

For Region IV-A or CALABARZON, continuous exploration and development of its indigenous energy resources which include geothermal, hydropower, wind power and coal, will still be prioritized during the next ten years. A 20-MW geothermal energy is available in Mabini, Batangas while a total of 24 sites for hydropower with an estimate capacity of 159 MW have been identified in the region. For wind energy, DOE has targeted the commissioning of two wind power projects in 2008 located in Caliraya   , Laguna (25 MW) and Mauban, Quezon (50 MW). To develop the coal reserves in the region which are estimated at 258 thousand MMT, new entrants to the industry will be encouraged while at the same time, promotion of small-scale mining and clean coal technology will be pursued.

Promotion on the use of natural gas and other alternative fuels for both power and non-power application will likewise be pushed through to minimize the region’s dependence on imported fuels. For its downstream applications, installation of natural gas infrastructure network such as distribution and transmission pipelines, terminals and other ancillary facilities is envisioned. In terms of CNG station, one mother station and two daughter stations are targeted in Batangas and Laguna by 2005, respectively.

As regard to the region’s growing electricity requirement, an additional 350 MW to the existing Pagbilao coal-fired power plant will be commissioned by 2008 to meet the anticipated capacity shortfall in Luzon by early 2008. For the small island grids, a total capacity of 2,500 kW will be added in 2005, 1,400 kW in 2010 and 5,000 kW in 2014.

Under the Expanded Rural Electrification Program, the remaining 79 unenergized barangays in the region are scheduled to be provided with electricity from 2005 to 2007. Included in the program are: expansion of 251 ckt.-km. of distibution lines, rehabilitation of 807 ckt.-km. of distribution lines and construction of substations with total capacity of 120 MVA.

2.1.2.Region IV-B

For Region IV-B or MIMAROPA, the government in partnership with the private sector shall continually exert its effort to harness indigenous energy resources in the region. Development of geothermal, hydropower and wind power as well as the region’s solar potential will be targeted to augment the region’s off-grid power requirements. The region has one potential site for a 40-MW geothermal power plant located at Montelago, Oriental Mindoro. For hydropower, a total of 55 MW is available for development by potential investors from 2005 to 2013. To come onstream during the planning period are four potential wind power projects located in Marinduque (5 MW), Oriental Mindoro (20 MW), Occidental Mindoro (10 MW) and Romblon (5 MW).

Likewise, under DOE’s thrusts, activities geared towards the promotion of petroleum exploration in the region is a major concern.

Current installed capacity will be increased by 65 MW during the planning period while a total of 120 MVA substation projects will complement the 597-km transmission line projects intended for the region. Further, in a move to meet the growing requirements of large island provinces, the NPC’s SPUG areas will be offered to new power players to take over the provision of electrification in these areas.

The Expanded Rural Electrification Program has lined up the energization of the remaining 131 unenergized barangays as follows: 70 barangays in 2005, 58 barangays in 2006 and three barangays in 2007. Distribution line expansion and rehabilitation will total 1,834 ckt.-km. and 331 ckt.-km., respectively. These will be complemented by substations with a total capacity of 25 MVA.