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Cagayan De Oro City

Energy Conversion
Lab No. 13
Energy Consumption and Shortage in the Philiipines


Criteria for Rating (100 pts.)




(20 pts.)


(10 pts.)

Data Analysis and Sketches
(40 pts.)
Conclusion and
(30 pts.)

Abliter, Mesiah Ray E.

Dr. Mardiee B. Adiong

Total Score



School Year: 2016 - 2017

In recent years, the Philippine economy continues to boom. Together with this growth is the
increase in supply and demand across sectors. Focusing on the energy sector of the country, despite
conventional energy consumption dropping, the move to renewable energy sources projects increase in
the near futures consumption. Concurrently, the Philippines has started to prefer renewable sources.
Natural gas often used for heating, cooking, and electricity generation is consumed at 102.41 billion
cubic feet. This amount is higher from the previous years 99.09 billion cubic feet.
Electricity, which is usually used for lighting, is consumed at 58.33 billion kilowatt-hours. Aside
from lighting, electricity is also used for telecommunications and transportation. But despite seemingly
high demand in the electricity market, its consumption lowered from last years 61.31 billion kilowatthours. As for local studies, total energy consumed and most commonly used energies differed per
Residential Energy Consumption
According to the results of the latest National Statistics Office (NSO) and Department of Energy
(DOE) Household Energy Consumption Survey (HECS), Philippine households commonly used electricity
as their main source of energy. During the reference period March to August 2011, 18 million
households or 87.2 percent of the 21 million participating households used electricity. This is followed
by fuelwood, LPG, charcoal, kerosene, gasoline, biomass residues with and diesel as household sources
of energy.
Electricity was most commonly used for lighting purposes with about 74 percent of the
households reporting its use. Electricity was also used for recreation with 78.7 percent of households
using it for listening to radio, watching television, singing in the karaoke or playing video games. The
other uses of electricity were for space cooling, ironing, refrigeration, cooking and food preparation,
water heating, laundry, water pumping and computer activity.
Non-conventional energies were utilized for the same purposes. Fuelwood was most commonly
used for cooking and heating water with 54.2 percent and 20.1 percent of households. Charcoal was
also utilized for cooking with 35.3 percent. And though less preferred, biomass residues were used for
similar purposes with less than 0.1 percent.

Among the petroleum products, LPG came after fuelwood for cooking purposes with 40.5
percent. Kerosene came after electricity for lighting with 30.3 percent. Gasoline, on the other hand, was
the top source of energy for vehicles with 88.4 percent. Next to gasoline was diesel with 15.6 percent.
Wherein electricity was the most common source of energy used by Filipino households, local
establishments favored a different energy source.
Industrial and Commercial Energy Consumption
Based from the results of the first National Statistics Office (NSO) and Department of Energy
(DOE) Survey of Energy Consumption of Establishments (SECE) conducted in 2010, a total of 53,889.59
kilo Tons of oil equivalent (kToe) were consumed by 143,868 energy-consuming industries. This was
comprised of fossil fuels with 31,634.83 kToe consumed, renewable energy with 19,118.70 kToe, and
electricity with 3,136.67 kToe.
From the recorded total quantity of fossil fuels consumed by establishments, coal was the most
commonly used reaching 20,227.57 kToe. Almost all quantity of coal or 99.8 percent was used to run
machineries and equipment while the remaining 0.2 percent was used as raw material and for other
non-energy use. Next to coal were petroleum products including gasoline, diesel, fuel, bunker oil,
kerosene, LPG, AVGAS, AVTURBO, and asphaltin, which totaled 3,854.23 kToe. Natural gas was also
consumed by establishments as approximately 1,116.42 kToe were used to run transport equipment.
For renewable energy, on the other hand, fuelwood registered at 691.30 kToe. Charcoal was
also consumed with 60.09 kToe for the same purposes. Other biomass fuels consisting of bagasse,
biogas, sawdust, rice, coconut and corn derivation made up 18,367.30 kToe. All renewable energies
were used to run machineries and equipments. Contrary to the residential sector, electricity
consumption on the industrial and commercial sectors was the least of all energy sources. Its total
quantity reached only 3,136.67 kToe.
Power Shortage
According to several articles and news sites, the Philippines faced a power supply shortage
leading to rolling blackouts across the country during the years 2014-2015. In late 2014, President
Aquino requested the Congress to pass a resolution giving him emergency power to allow the
government to provide additional supply and prevent a power shortage in 2015.

Also, according to several articles, EPIRA introduced reforms, including the restructuring of the
power sector leaving a heavy dent on the states budget because of the high cost of maintenance.
Menandro Abanes, a researcher on Southeast Asian issues, said, To meet the predicted demand, 5,000
megawatts was needed, translating to necessary government infusion of approximately P38 billion
annually into the development of the power industry to curb the shortfall, without which another power
crisis reminiscent of the 1980s and 1990s was expected." The government, however, was unable to
infuse funds into because of a budget deficit that hit P145 billion at the time. Furthermore, by December
2000, NPC has accumulated a debt of 900 billion pesos, which at that time was nearly half the
government's total debt of 2.179 trillion pesos. To resolve this issue, the government had no choice but
to rely on the option of privatization of the power industry.

Regarding the Philippines energy sector, I would say that there are many challenges that it
encounters such as incomplete power sector reform, high prices, and energy security. The Philippines
has some of the most expensive electricity in Southeast Asia. According to sources that I have read, it is
averaging $0.18 per kilowatt-hour in 2009 because (i) archipelagic geography makes electricity costly in
some areas; (ii) generation, transmission, and distribution systems are inefficient; and (iii) investment in
the sector is low, coupled with the high cost of investments made during the countrys power crisis in
the 1990s. Lack of competition in the power sector has contributed to the Philippines poor total factor
productivity record, as power is a key input to all industry. Economic growth has been impeded in the
Philippines by the unreliability and high cost of the power. Reliable and secure electricity services at
competitive rates are essential to improving the investment climate in a country that has limited fossil
fuel reserves and therefore is highly dependent on renewable and imported energy.
To conclude, in the coming years, Philippine energy consumption levels may considerably
change as the national government starts resource developments and implements market reforms in
the power sector to achieve energy efficiency and economic growth. Power shortage may be inevitable
but it can be at least be minimized to a great extent. The transport sector, mainly tricycles, jeepneys,
and buses, contributes a large portion of Carbon Dioxide emissions. The public transport sector can save
a significant portion of imported energy by switching to energy-efficient electric vehicles and to avoid
pollution as well.
One of the solutions implemented by the government is the inclusion of the universal charge in
the end consumer's bill. The universal charge is used to pay part of the stranded costs of the NPC.
Stranded costs are incurred when the selling price of a good is less than the cost to produce it, this
usually results in a net loss to the company. The universal charge is also used to pay part of the NPC's
long term debt obligations.
The potential for renewable energy is high. The transformation would involve adoption of largescale new technology, more responsive regulation and consumer acceptance. Sustainable power supply,
which is reliable and has reasonable social and environmental costs, is key to increasing infrastructure
investment. Lastly, the supply of sustainable, reliable electricity from diverse sources is particularly
important for promoting sustainable growth in the Philippines.