Power Sector Transition in Mindanao
Introduction
Mindanao, the second-largest island in the Philippines, is located in the southernmost part of the country and is often referred to as the "Land of Promise" due to its abundant natural resources and economic potential. Covering an area of approximately 94,630 square kilometers, Mindanao is home to over 27 million people (as of 2020) and comprises six administrative regions, including the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
Mindanao is a hub for renewable energy development, with significant potential in hydropower, geothermal energy, and solar projects. However, Mindanao faces challenges in balancing its energy transition with social and environmental considerations.
Current System Description
Current Power Capacity Mix
aaaaaaaaaaa
Prospective Power Capacity
Renewables in Mindanao
Renewable Targets
Major Renewable Projects
| Province | Generation Source | Project | Status | Capacity (MW) |
|---|---|---|---|---|
| North Cotabato | Geothermal | Mt. Apo geothermal plant (Phases 1) | Operating | 54 |
| North Cotabato | Geothermal | Mt. Apo geothermal plant (Phases 2) | Operating | 52 |
| North Cotabato | Geothermal | Mt. Apo geothermal plant (Expansion) | Operating | 4 |
| Bukidnon | Solar | Kibawe Solar Power Project | Operating | 8.2 |
| Davao del Sur | Solar | Digos solar farm | Operating | 29 |
| Mindanao | Solar | Kirahon Solar Power Project | Operating | 10 |
| South Cotabato | Solar | Centrala Solar Power Project | Operating | 5 |
| South Cotabato | Solar | Santos Solar Power Project | Operating | 25 |
| South Cotabato | Solar | Surallah solar project | Operating | 12 |
| Oriental Mindoro | Wind | Mindoro Island wind farm | Operating | 16 |
Potential impacts from renewable expansion
Fossil Fuels in Mindanao
Fossil Resources and Retirement
Overview of current fossil fuel impacts
Employment
Current employment by sector
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.[4]
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.[5] 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.[5]
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.[6] Cobalt reserves in the Philippines are comparable to those of Russia (sixth overall, behind Australia, Cuba, Democratic Republic of Congo, and Indonesia).[7] The Philippines is a member of the World Trade Organization with top trading partners being the United States, Japan, China, and Singapore.[6] 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.[8]
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.[9] This is because wind and hydro components tend to have locally produced counterparts, whereas solar does not.[9]
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.[10] This Framework intends to increase collaboration between partners on efforts to increase the connectivity, resilience, fairness, and sustainability of the nations' collective economies.[10] In total, these nations make up approximately 40% of global GDP.[10]
Land availability
Symbolic Importance
Civil Society Transition
Governmental information
The Philippine government is broken down into national, provincial (as well as dense, urban, independent cities like Manila), municipal, and barangay levels.[11] 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).[11]
The next iteration of the Philippine Energy Plan is expected to be published in September 2023.[12]
Related government papers
The Electric Power Industry Reform Act (EPIRA) of 2001 was a landmark piece of legislation targeting the Philippines’ energy market.[13] 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.[13] EPIRA yielded several achievements:[13]
- 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.[14] Through the legislation, businesses can receive tax incentives for the development of skills training and research efforts intended to fill the workforce gap.[14]
Relevant political coalitions
Permitting
Transmission and Grid Capacity
Current transmission resources
New transmission needed for renewables
Social and environmental impacts of new transmission
National Grid Infrastructure
International Energy Agency has identified four phases to integrating VREs to the grid:[15][16]
- VREs are deployed but highly localized. VRE generation up to 3% at any given time.
- 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.
- 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.
- 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.[17]
Renewable Energy Penetration
Recently Completed and Planned Grid Upgrades
Potential Sources of Grid Financing
Civil Society Organizations
Ownership
Major owners of current fossil capacity
Major owners of prospective renewables
Finance
Potential providers of wind/solar finance
Southeast Asia Energy Transition Partnership
Other
Articles and resources
Related GEM.wiki articles
Citizen groups working on coal issues
Power Sector Transition in Negros
References
- ↑ Global Geothermal Power Tracker, Global Energy Monitor, May 2024 release.
- ↑ Global Solar Power Tracker, Global Energy Monitor, June 2024 release.
- ↑ Global Wind Power Tracker, Global Energy Monitor, June 2024 release
- ↑ “Renewable Energy and Jobs Annual Review 2022,” International Renewable Energy Agency, Retrieved May 24 2023
- ↑ 5.0 5.1 “How the Philippines’ low-carbon plans may fuel a switch to green jobs,” Eco-Business, April 30 2021
- ↑ 6.0 6.1 “Resources and power,” Britannica, Retrieved May 25 2023
- ↑ “Revitalize Industry,” Philippine Development Plan 2023-2028, Government of the Philippines, Retrieved June 23 2023
- ↑ “Philippines, South Korea to develop supply chain, energy cooperation,” PhilStar Global, November 14 2022
- ↑ 9.0 9.1 “Energy Resource Guide - Philippines - Renewable Energy,” International Trade Administration, Retrieved May 26 2023
- ↑ 10.0 10.1 10.2 “FACT SHEET: In Asia, President Biden and a Dozen Indo-Pacific Partners Launch the Indo-Pacific Economic Framework for Prosperity,” The White House, May 23 2022
- ↑ 11.0 11.1 “Philippine Government Structure with a Focus on the Philippine Barangay,” Sauk Valley Community College, Retrieved May 24 2023
- ↑ “Transmission planning to be included in new Philippine Energy Plan,” PhilStar Global, June 12 2023
- ↑ 13.0 13.1 13.2 “The Philippine electric power industry under EPIRA,” Philippine Institute for Development Studies, December 2018
- ↑ 14.0 14.1 “Republic Act No. 10771,” Official Gazette of the Republic of the Philippines, April 29 2016
- ↑ “Thailand Renewable Grid Integration Assessment,” International Energy Agency (IEA), 2018
- ↑ “Towards an Affordable and Reliable Grid with Energy Transition (TARGET),” CASE for Southeast Asia, December 2021
- ↑ “Expand and Upgrade Infrastructure,” Philippine Development Plan 2023-2028, Government of the Philippines, Retrieved June 23 2023
