Philippine Energy Plan 2020-2040


As the country faces a multi-faceted challenge on its pandemic response programs, amidst the imposed lockdowns on economic activities, the Department of Energy (DOE) is presenting a track to attain an inclusive and equitable economic growth made possible through the provision of secure, sustainable, and resilient energy strategies. The Philippine Energy Plan (PEP) 2020-2040 is the second comprehensive energy blueprint supporting the government’s long-term vision known as Ambisyon Natin 2040. This updated plan, like its predecessor (PEP 2018-2040), reiterates the energy sector’s goal to chart a transformative direction towards attaining a clean energy future.

Paving the path of transition into a more sustainable and resilient energy system, the sector’s direction has always been steered by Secretary Alfonso G. Cusi. This is in recognition to the message conveyed by President Rodrigo Roa Duterte of the energy sector requisites –  sustainability and availability of energy to wean away from traditional sources and development of alternative ones.

To carry out the President’s instructions, the Energy Secretary clearly pointed the transformative changes imperative to align with the Administration’s call. These resulted into policies directed by the Energy Secretary and include, among others, the aggressive Renewable Energy (RE) and Energy Efficiency and Conservation (EEC) institutionalization programs, the moratorium on new coal power projects, a mechanism allowing foreign ownership on large-scale geothermal projects under financial and technical assistance agreement or FTAA, the resumption of indigenous oil and gas exploration, the introduction of liquefied natural gas (LNG) portfolio, establishment of strategic petroleum reserves and exploration of Hydrogen's potential.

Having the policies in place, the Energy Secretary reaffirmed the sector’s mindfulness in putting consumers first and that energy must be equitable to all Filipinos. The crafted PEP 2020-2040 is the amalgamation of the envisioned transition and transformation resonated by the Administration. Under its Clean Energy Scenario (CES), the PEP provides for ambitious plans, policies and targets on renewable energy, natural gas, alternative fuels, and energy efficient technologies. To make the country’s low carbon energy transformation a reality, the following goals have been set for the medium to long-term planning horizon: 

Click to view/download Philippine Energy Plan 2020-2040

Reference Scenario

  • Present development trends and strategies continue;
  • 35.0 percent renewable energy share in the power generation mix by 2040;
  • LNG importation starting 2022;
  • Energy Consumption levels that support an accelerated economic expansion post COVID-19;
  • Current blending schedule for biofuels (2.0 percent biodiesel and 10.0 percent bioethanol) maintained until 2040;
  • 5.0 percent penetration rate of electric vehicles for road transport (motorcycles, cars, jeepneys) by 2040; and
  • Current efforts on EEC as a way of life continues until 2040.

Clean Energy Scenario

  • 35.0 percent and 50.0 percent RE share in the power generation mix by 2030 and 2040;
  • 5.0 percent blending for biodiesel starting 2022;
  • 1.5 percent increase in aggregated natural gas consumption from the transport and industry sectors between 2020 and 2040;
  • 10.0 percent penetration rate of electric vehicles for road transport (motorcycles, cars, jeepneys) by 2040;
  • 5.0 percent energy savings on oil products and electricity by 2040; and
  • At least 12.0 percent reduction in the GHG emission for the Nationally Determined Contribution (NDC).


Philippine Energy Plan 2018-2040

Click to view/download Philippine Energy Plan 2018-2040

Overview and Executive Summary

Secretary Alfonso G. Cusi, during the turnover ceremony as the new Chief of the Department of Energy (DOE) in July 2016, highlighted the Department’s mission of improving the lives of Filipinos. To achieve this call, the DOE Secretary directed the energy sector to concentrate on specific areas that promote a “consumer first” perspective, provide a level playing field for all stakeholders, and bring about change, which should start at the very core of government service.

President Rodrigo R. Duterte signed Executive Order (EO) 5 in October 2016 adopting a 25-year long-term vision known as the AmBisyon Natin 2040, which sees the Philippines as a “prosperous, predominantly middle-class society by 2040.” The EO required all plans of the government agencies, offices and instrumentalities, including government-owned or -controlled corporations (GOCC) and LGUs shall be consistent with the said vision.

The government’s long-term vision packaged under the AmBisyon Natin 2040 expects that by 2040, Filipinos will have a strongly rooted, comfortable and secure life. To realize this vision, the DOE responded with the formulation of the Philippine Energy Plan (PEP) 2018-2040 that embodies a clear set of objectives, namely:

a) Increase the production of clean and indigenous sources of energy to meet the growing economic development of the country;
b) Decrease the wasteful utilization of energy through the use of energy efficiency tools and strategies; and
c) Ensure the balance between the provision of reliable and reasonably priced energy services, support for economic growth, and protection of the environment.

And just like AmBisyon Natin 2040, the PEP lays down the foundation to ensure that Filipinos gain from the deliverables set forth in the energy roadmaps by 2040, specifically covering the following areas:

I. Ensuring Energy Services 24/7;
II. Creating Wealth for Filipinos;
III. Consumer Empowerment; and,
IV. Philippine Agenda with the International Community.