Industry Facts

Overview

The Philippines is undergoing a significant energy transition driven by economic growth, population increase, and environmental challenges. The Philippine Energy Plan (2017-2040) outlines the country's strategy to address these issues by enhancing energy supply and reducing carbon emissions through cleaner and renewable energy sources.

Key Factors

1. Population Growth and Energy Demand:
   • Projected population growth to 140 million by 2040 from 100 million currently.
   • Energy demand is expected to increase more than four-fold, from 12.2 MW in 2015 to 49.3 MW by 2040.
   • Mindanao is expected to experience the highest growth in energy demand at an annual rate of 8%.
2. Climate Vulnerability:
   • The Philippines is highly vulnerable to extreme weather conditions, necessitating resilient and sustainable energy solutions.

Energy Supply Transition

1. Continued Role of Fossil Fuels:
   • Coal and oil will remain fundamental in the short to medium term.
2. Shift to Cleaner Energy Sources:
   • Emphasis on liquefied petroleum gas (LPG) and natural gas, particularly for the transport sector.
   • Significant increase in renewable energy sources such as biomass, geothermal, solar, wind, and hydro.
3. Technological Advancements:
   • Promotion of clean, efficient, and smart energy technologies to address climate change and enhance energy supply.

Renewable Energy Progress

1. Incentives and Regulations:
   • Government incentives like feed-in-tariffs and priority dispatch regulations have spurred growth in renewable energy capacity.
2. Installed Capacity:
   • The installed capacity of renewable energy in the Philippines has grown significantly due to these policies.

Transportation Sector Transition

1. Alternative Fuels and Vehicles:
   • Adoption of natural gas and electric vehicles (EVs) is a critical step, though it challenges the existing fossil fuel-based ecosystem.
2. Global Influence:
   • Trends from countries like China, India, and several European nations moving towards banning diesel and gasoline vehicles by 2040.
3. Local Strategies:
   • The Electric Vehicle Association of the Philippines is advocating for a national program to support electric vehicle development.
   • Despite resistance from jeepney operators, there is a push to replace conventional vehicles with NGVs and EVs.
4. LPG as a Transition Fuel:
   • LPG is seen as a bridge fuel due to its affordability, availability, and lower environmental impact compared to traditional fuels.

Future Outlook

1. Energy Landscape:
   • The transition to NGVs and EVs is expected to significantly alter the energy landscape by 2040.
2. Transport Sector:
   • A more sustainable, greener, and healthier transportation system is anticipated.
   • LPG and autogas will play a crucial role during the transition period.
3. Challenges and Opportunities:
   • Energy players need to navigate the transition by integrating new technologies and adapting to changing energy sources and consumption patterns.

By 2040, the Philippines aims to have a diversified and sustainable energy mix, leveraging both renewable energy and cleaner conventional fuels to meet growing energy demands and environmental goals.

Link: https://www.phoenixfuels.ph/2040-the-future-of-energy-in-the-philippines/