Private Sector Power Projects

Participation of the private sector is vital in responding to the demands of the energy industry by investing in power generation and contributing to the needed capacity brought about by economic development.

The figure below shows players dominating the market and their areas of operation around the Philippines. Though endorsed by the government, the EPIRA Law only permits these private entities less than thirty percent share of the installed generating capacity of a grid as well as a twenty-five percent limit of shares on the national installed generating capacity. A breakdown of the percentage market share of these companies follows.

On-Grid Electrification:

1. Nationwide intensification of household electrification (NIHE) targets households situated in areas with existing distribution facility. NIHE gives provision of house wiring and meter subsidy including at least 2 bulb and 1 convenience outlet. Technical assistance to streamline process, LGU-DU partnership is also included. From DOE’s 37^th Status Report on EPIRA Implementation, NIHE program reported to have energized 166,393 households from 2015-2018. Based on the NEA’s database, there are 2,341 barangays suitable BLEP. As of August 2015, 626 of the 1,030 barangays targeted had been enhanced (NEA, 2015).
2. Sitio electrification program (SEP) targets sitios that are viable for grid-extension provided that doesn’t have an adverse impact on system loss. Aside from house wiring and meter subsidy, provision of funding for required additional poles and wires (thirty (30) meters) are also provided. NEA revised the number of sitios to be included in the SEP tin 2020 from the original target of 964 sitios to 635 sitios. As of June 30, 2020, NEA, through the ECs, has completed the energization of 181 sitios (86 in Luzon, 74 in Mindanao, and 21 in Visayas)
3. Barangay Line Enhancement Program (BLEP) targets barangays that have been previously energized by off-grid solutions and are feasible for grid-extension to the nearest tapping point of a DU. BLEP gives funding for the grid extension which covers overhead lines, submarine cables and enhancement of distribution lines.  As of 31 December 2019, there are 72 barangays nationwide that need enhancement. NEA managed to complete 26 BLEP projects as of 31 December 2019.

Off-Grid Electrification:

4. PV Mainstreaming scheme targets households which are not feasible for grid extension. PV solar home systems (SHS) that can provide lighting and charging capabilities are provided.The DOE locally-funded PV mainstreaming has completed providing 8,149 households with 50 Wp SHS across four provinces (DOE, 2020). Another 2,964 households to be provided with SHS across three provinces are still on-going. For European Union –Philippines’ Access to Sustainable Energy Program (EU-PHIL ASEP) funded PV mainstreaming, a total of 10,000 of the 40,500 household beneficiaries in inland and mountainous across Mindanao have been provided SHS since 2019. The remaining 30,500 SHS to be granted are still on-going to be completed.
5. Mini-grid Qualified Third Party (QTP) Scheme targets clustered households which are unviable for grid extension but are feasible to have a mini-grid system. These unviable areas are waived by DUs and are now open to QTP. This scheme allows a joint venture agreement with private sector to operate the generation and distribution of the mini-grid system.
6. Mini-grid National Power Corporation-Small Power Utilities Group (NPC-SPUG) Scheme targets clustered households which are unviable for grid extension but feasible to have a mini-grid system but no QTP have taken the project. If no QTP operates these areas, NPC-SPUG becomes the default operator of the generation and distribution for the mini-grid. These areas are part of the missionary electrification program undertaken by NPC. Posted on NAPOCOR’s website, there are 238 existing SPUG areas which services 868,397 households.