1. Identifiers:
Project Number: P066397
Project Name: Philippines: Rural Power Program (Renewable Energy Component)
Duration: APL of 12-14 years (of which Phase 1 will be about 4 years)
Implementing Agency: World Bank
Executing Agency: Department of Energy
Requesting Country or Countries: Philippines
Eligibility: Philippines ratified FCCC on 8/2/94
GEF Focal Area: Climate Change
GEF Programming Framework: OP 6
2. Summary: Rural electrification is a pro-poor flagship program of the Philippines’ Department of Energy (DOE), the aim of which is to improve the quality of life in rural areas through the provision of adequate, affordable and reliable energy services in a sustainable manner. The government has set an ambitious target of 100% electrification at the barangay (village) level by the year 2006, implying electrification of about 8,300 barangays during the period 2001-2006. However, many of the non-electrified barangays are in areas that are not viable for grid extension, due to their remoteness and/or low density of demand. In addition, even in “electrified” barangays, many households remain unelectrified, sometimes because they are in isolated pockets which are too expensive to connect to the local grid. Hence only about half of the unelectrified barangays can feasibly be connected to the main grid, while the other half (the “offgrid” areas and the isolated unserved pockets in “electrified” barangays) will have to be served by decentralized systems (independent minigrids and individual systems). The challenge of implementing off-grid electrification is inextricably linked with the need to address deep-seated problems in the rural power subsector. These include serious financial and capacity constraints of the lead rural electrification body, the National Electriifcation Administration (NEA), and of many of the rural electric cooperatives (ECs). These constraints have led to the vicious circle of underinvestment in rehabilitation,
References: Duke, R.D., Jacobson, A.,and Kammen D.M. (2002), "Product Quality in the Kenyan Solar Home Systems Market," in press, Energy Policy.