Power Sector Transition in Bohol

Introduction

Bohol, an island province in the Central Visayas region of the Philippines, is renowned for its breathtaking landscapes, rich biodiversity, and cultural heritage. Situated between Cebu and Leyte, Bohol spans an area of over 4,800 square kilometers and is home to approximately 1.4 million people (2020 census).

While Bohol is a leading eco-tourism destination in the country, it is also making strides toward sustainable development. The province has embraced renewable energy projects, particularly solar and hydroelectric power, to reduce dependence on fossil fuels. However, challenges remain in balancing tourism growth with environmental conservation. Issues such as waste management, habitat protection for endemic species like the tarsier, and climate resilience are critical to Bohol's long-term sustainability.

Employment

Prospective employment from renewable energy sector

In 2021, the International Renewable Energy Agency estimated that in-development wind energy projects could create 59,000 jobs in the Philippines by 2026.

If all projects in the the current pipeline come to fruition in the next decade, the Institute for Energy Economics and Financial Analysis estimates that over 350,000 jobs will be created throughout the Philippines. Anecdotal evidence suggests that geothermal tends to be the easiest sector for former coal workers to transition into, given the relatively similar skillset, particularly during exploratory phases of project development.

Supply Chain

While mining is a relatively small portion of the country's GDP, the Philippines is rich in several materials needed for the energy transition (generation as well as storage) including copper, cadmium, and nickel. Cobalt reserves in the Philippines are comparable to those of Russia (sixth overall, behind Australia, Cuba, Democratic Republic of Congo, and Indonesia). The Philippines is a member of the World Trade Organization with top trading partners being the United States, Japan, China, and Singapore. Additionally, in 2022, the Philippines and South Korea agreed to coordinate supply chain development and expansion, particularly related to mining of necessary metals and manufacturing electrical vehicles and semiconductors.

The Renewable Energy Act allows solar photovoltaic (PV) modules and ancillary components to be imported duty-free, though components for wind and hydro projects tend to have tariffs ranging from 3-5%, as well as a 12% Value Added Tax. This is because wind and hydro components tend to have locally produced counterparts, whereas solar does not.

In 2022, the Philippines and a dozen partners (Australia, Brunei, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Singapore, Thailand, the United States, and Vietnam) established the Indo-Pacific Economic Framework for Prosperity. This Framework intends to increase collaboration between partners on efforts to increase the connectivity, resilience, fairness, and sustainability of the nations' collective economies. In total, these nations make up approximately 40% of global GDP.

Governmental information

The Philippine government is broken down into national, provincial (as well as dense, urban, independent cities like Manila), municipal, and barangay levels. While each level of government maintains its own authorities, it is subject to the laws and regulations of the type nested above (i.e. barangays must adhere to laws of the municipal, provincial, and national government it exists within).

The next iteration of the Philippine Energy Plan is expected to be published in September 2023.

Related government papers

The Electric Power Industry Reform Act (EPIRA) of 2001 was a landmark piece of legislation targeting the Philippines’ energy market. While previous state-owned, EPIRA opens power generation to a competitive market as a means of driving down the price of energy and increase access for underserved consumers. EPIRA yielded several achievements:

• Improved reliability of electricity
• Increased number of electrified households
• Improved generation and transmission efficiency
• Improved fiscal condition of the country’s power sector.

In 2016, the national government passed the Green Jobs Act, which called on the Philippine Department of Labor and Employment to draft a plan to build a workforce for the energy transition. Through the legislation, businesses can receive tax incentives for the development of skills training and research efforts intended to fill the workforce gap.

Transmission and Grid Capacity

National Grid Infrastructure

International Energy Agency has identified four phases to integrating VREs to the grid:

1. VREs are deployed but highly localized. VRE generation up to 3% at any given time.
2. Upgrades are made to operational practice to better integrate more VRE plants as they are added to the system. VRE generation between 3% and 15% at any given time.
3. Systematic increases in power system flexibility are made to balance changes in supply and demand. VRE generation between 15% and 25% at any given time.
4. VRE output is sufficient to meet majority of power demand; subsequent changes to operational and regulatory approaches are made to support VREs. VRE generation between 25% and 50% at any given time.

Electricity losses throughout transmission and distribution are approximately 9.4%, which is relatively high and suggests inefficiencies in the grid system. Several factors hinder transmission upgrades and energy projects as a whole: transmission projects tend to be slowed by right-of-way issues, and energy projects overall average 1,876 calendar days, 359 signatories, and 74 agencies to complete.

Articles and resources

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