The 2007 Philippine Energy Plan (PEP) Update is an affirmation of the state’s commitment to pursue the energy independence agenda under the Government’s Five-Point Reform Package. The energy sector’s agenda focuses on attaining a sustainable 60.0 percent energy self-sufficiency beyond 2010 and promoting a globally competitive energy sector. The first objective is anchored on the effective implementation of the following goals: (a) accelerating the exploration; development and utilization of indigenous energy resources; (b) intensifying renewable energy resource development; (c) increasing the use of alternative fuels; and, (d) enhancing energy efficiency and conservation. On the other hand, the continuing reforms in the power sector as well as the downstream oil and gas industries will pave the way in realizing a globally competitive Philippine energy sector.

Those energy goals and the corresponding strategies support the Medium-Term Philippine Development Plan (2005-2010) and the Medium-Term Public Investment Program. The PEP is also consistent with international agreements such as the 2002 Johannesburg Summit and the 2000 UN Millennium Development Goals, specifically in addressing poverty, and ensuring environmental sustainability.

The Update takes stock of the energy sector’s accomplishments in 2006 vis-à-vis the targets set in the 2006 PEP Update as Reference Plan. It also evaluates the extent to which the sector has responded to the challenges that have hindered the effective implementation of the plans and programs as identified in the Reference Plan. On the bases of these actual assessments, adjustments in targets and desired timelines were made in the Plan Framework. Indigenous fossil fuels and renewable energy were discussed based on geographical clustering under the Super Regions to highlight each cluster-region’s energy resources potentials. Likewise, the current update takes into consideration the impact of recent energy developments, i.e., the landmark passage in January 2007 of Republic Act (R.A.) 9367 or the “Biofuels Act of 2006”, renewed interest in the upstream development sector through the Philippine Energy Contracting Round (PECR), commitments to regional frameworks such as the ASEAN Plan of Action for Energy Cooperation (2004-2009) and the ASEAN initiative to move forward the harmonization of biofuel standards.