Rural electricity in the Philippines: Planning issues

Abstract

The government of the Philippines is committed to reducing the country's dependence on imported oil. An element in its plan to accomplish this goal is the generation of electricity using indigenous energy sources — wood/ biomass, hydro, geothermal and coal. Wood-fired generation in the Philippines has drawn worldwide attention from other developing countries interested in embarking on similar programmes. This investigation reveals the difficulties inherent in implementing such a programme. Primary concerns include the institutional issues in the generation and distribution of power by the National Power Corporation (NPC), the National Electrification Administration (NEA), the rural electric cooperatives (RECs) and the tree farmer associations (TFAs), the influence of demand patterns on the financial viability of rural electric cooperatives, and the influence of low load factors, small size and remote locations on the cost of dendro thermal power plants. The conclusions s should be of interest to other countries interested in pursuing similar programmes.