Department of Energy, Philippines Promoting energy resiliency in the philippines 53rd APEC Energy Working Group 4th Energy Resiliency Task Force Meeting APPROPRIATE GREETINGS On behalf of our Energy Secretary Alfonso G. Cusi, I would like to express my gratitude for allowing us to share the Philippine initiatives in promoting energy resiliency as an integral component in the overall Disaster Risk Reduction Management System of the country. (NEXT SLIDE) Department of Energy, Philippines

Philippine DRRM System Republic Act 10121 Strengthens the Philippine Disaster Risk Reduction & Management System To begin with, we achieved the holistic growth in the Disaster Risk Reduction System when Republic Act 10121 or an Act Strengthening the Philippine Disaster Risk Reduction System was promulgated. The then National Disaster Coordinating Council or NDCC which mainly focused on response operations evolved into the National Disaster Risk Reduction and Management Council that focused on the thematic areas of disaster risk reduction - the prevention and mitigation, preparedness, response and rehabilitation and reconstruction. This was also an offshoot of the devastation wrought by Typhoon Haima which barreled Central Philippines in 2013. The NDRRMC is composed of 44 member-agencies including the Department of Energy. NDRRMC is responsible in formulating and implementing a comprehensive plan that aims to strengthen the capacity of the key players and other stakeholders to build and sustain disaster-resilient communities. On the part of the energy sector, we have part in place policy frameworks and program interventions to improve coordination mechanisms, systems and processes to achieve energy resiliency. (NEXT SLIDE) Disaster Relief & Response Disaster Risk Reduction

Disaster Effects on the Power Sector (2016) Super Typhoon “LAWIN” (i.n. Haima) October Typhoon “Nina” (i.n. Nock-Ten) December Affected Electric Cooperatives 14 16 Number of Municipalities/Cities 241 178 No. of Barangays 5,359 5,428 No. of Affected Households 1,252, 076 1,683,012 The Philippines experienced two major typhoons in 2016 that caused disruption to affected communities. In particular, when Super Typhoon “LAWIN” with international name Haima made landfall in October in Northern Luzon, 14 electric cooperatives, more than 1.2 million households in 241 municipalities/cities and 5,359 barangays or villages were affected. On the other hand when Typhoon Nina with international name Nock-ten wrecked havoc over the Bicol Region in December more than 1.6 million households in 178 municipalities/cities and 5,428 barangays and a 16 electric cooperatives were affected. Given the critical role of energy in the overall restoration of damaged communities, the Task Force Kapatid or Task Force Brotherhood was activated and became instrumental in the timely restoration of power. (NEXT SLIDE)

Task Force “Kapatid” (brotherhood) Pools together volunteers from different ECs to render free service to other ECs which need help Mobilizes and deploys engineers, electricians, linemen and foremen to calamity-hit ECs Task Force Brotherhood is an institutional arrangement between the National Electrification Administration (NEA) and our distribution utilities whereby unaffected render assistance to affected electric cooperatives. It pools together volunteer manpower from different electric cooperatives to provide free service to other electric cooperative that need help. It mobilizes and deploys engineers, electricians, linemen and foremen to calamity hit electric cooperatives. Task Force Brotherhood is rooted in the value of Bayanihan or the Filipino spirit of communal unity and solidarity. In experience, the biggest and longest mobilization of Task Force Kapatid was during Typhoon Yolanda with international name Haiyan. It was activated to fast track the repair of distribution systems and power restoration of 33 affected electric cooperatives that service 341 municipalities. The whole operations involved 1,172 engineers and linemen from 70 electric cooperatives in Luzon, Visayas and Mindanao and 11 private organizations. (NEXT SLIDE)

Ensuring Oil Supply During Emergencies and Disasters Forging Memorandum of Agreement with the PIP, MMDA and OCD/NDRRMC Promoting Business Continuity Plan of Oil Companies Product sharing in specific areas and minimum inventory for oil refiners and importers The continuous supply of oil especially during emergencies and disasters is prioritized because it is a basic requirement in mobilizing units for response. The Department of Energy forged a Memorandum of Agreement with the Philippine Institute of Petroleum, Metro Manila Development Authority and Office of Civil Defense/ National Disaster Risk Reduction and Management Council to ensure supply of oil during emergencies and disasters. Aside from that, the DOE serves as the primary focal between the government and the petroleum industry to ensure prioritization of fuel distribution and immediate restoration of power in fuel depots and retail stations located in affected areas. The Department of Energy also ensures that oil companies have business continuity plan to warranty continuous services during emergencies and disasters and product sharing in specific areas as well as minimum inventory for oil refiners and importers. Since the Philippines has a deregulated downstream oil industry, a recommended action that we are looking into right now is to build a stockpile owned by government and to develop a policy that will institutionalize it. (NEXT SLIDE)

Ensuring Oil Supply During Emergencies and Disasters Hosting of the Oil and Gas Security Exercise in the Philippines To strengthen emergency preparedness system, such as policies, plans, procedures and communication strategies The Department of Energy in collaboration with the Asia-Pacific Energy Research Center (APERC) conducted the Oil and Gas Security Exercise in the Philippines to strengthen emergency preparedness system to address and mitigate the impacts of supply disruptions. (NEXT SLIDE)

Institutionalizing Energy Resiliency Issuance of Policy on the Adoption of Resiliency Planning and Programs in the Energy Industry to Address and Mitigate Adverse Weather Conditions The Department is currently working on the issuance of policy on the Adoption of Resiliency Planning and Programs in the Energy Industry to Address and Mitigate Adverse Weather Conditions; wherein, it mandates energy industry participants (upstream, transportation, downstream, final energy demand sector) to prepare Resiliency Contingency Plans which shall be reviewed and updated every three years and enjoins the Energy Regulatory Commissions to develop resiliency standards for inclusion in the Philippine Grid and Distribution Codes and the Professional Regulation Commission in the Philippine Electrical Code. (NEXT SLIDE)

Institutionalizing Energy Resiliency Establishment of DOE Disaster Risk Reduction and Control Management Group taking into account the general welfare, interest and safety of the DOE employees, facilities and its properties before and during emergencies and disasters In order to prepare the readiness of the Department of Energy, its officials and employees, for unforeseen or sudden occurrence, the Department established the DOE Disaster Risk Reduction and Control Management Group that is responsible in development of a plan and a manual of operation, continuously trains personnel to form part of the manpower pool to be the first responders, conducts drills and supervises other activities and programs of the Department related to disaster risk reduction. (NEXT SLIDE)

Resiliency of Energy Infrastructure Development of Storm Resistant Distribution Construction Standards (Analysis of Performance of Existing Distribution Line Standards Using High Wind Conditions) With the assistance of United States Agency for International Development (USAID), through the National Electrification Adminstration (NEA), the project of Development of Storm Resistant Distribution Construction Standard (An Anlysis of Performance of Existing Distribution Line Standards Using High Wind Conditions) evaluated the mechanical strength of existing overhead distribution systems for the 119 electric cooperatives across the Philippines and identified modifications to strengthen infrastructure to better withstand future tropical cyclones. The Philippines is significantly challenged by strong winds and needed to revised its specification, design and construction standards in order to increase releability and minimize damage to overhead power distribution lines in the event of future tropical cyclones. (NEXT SLIDE)

Resiliency of Energy Infrastructure Bridging Activity of Risk Analysis Project (RAP) for the Energy Infrastructure Study assessed the vulnerability impact of earthquake & wind to power sector infrastructure in GMMA The Bridging Activity of Risk Analysis Project under the leadership of Department of National Defense supported by Australian Aid Program of the Department of Foreign Affairs and Trade assessed the vulnerability impact of earthquake and wind to power sector infrastructure in Greater Metro Manila Area (GMMA); in particular, one thermal power generation plant, transmission towers and transmission lines. (NEXT SLIDE)

Resiliency of Energy Infrastructure APEC Guidelines on Improving Energy Resiliency in Off-Grid Areas in APEC Member Economies includes enabling mechanisms on the policies, regulations, and laws, institutional arrangements, programs and projects, financing, water-energy nexus and role of women Acknowledging the Cebu Declaration during 2015 APEC Energy Ministerial Meeting in the ability and quality of energy infrastructure to withstand extreme disasters, the APEC Guidelines on Improving Energy Resiliency in Off-Grid Areas in APEC Member Economies was crafted. The guidelines includes enabling mechanisms on the policies, regulations, and laws, institutional arrangements, programs and projects, financing, water-energy nexus and role of women in improving off-grid energy resilience as well as presents case studies of experiences of APEC member economies. (NEXT)

Department of Energy, Philippines Maraming Salamat Po! That ends my presentation. Once again, thank you for this opportunity. Maraming salamat po! Department of Energy, Philippines