Philippines: Energy demand to outpace production in coming years -- UN ESCAP

Philippines: Energy demand to outpace production in coming years -- UN ESCAP

THE PHILIPPINES will likely see the gap between energy production and demand
increase in the next few years and must take steps to develop common
infrastructure and energy policies in order to minimize the gap.

"The overall gap between energy production and demand in the Asia-Pacific
region is projected to widen significantly in the upcoming decades. Given
the relative abundance and high variance in distribution of natural
resources in the region, transborder gas and electricity trade have the most
potential for further development to help meet the demand," said the United
Nations Economic and Social Commission for Asia and the Pacific (UN-ESCAP)
in its 2016 Regional Trends Report entitled Energy for Sustainable
Development in Asia and the Pacific.

However, low international oil prices are projected to increase domestic
demand and allow the government to advance fiscal reforms in relation to
energy, which is expected to increase revenue generation and boost public
infrastructure spending in the Philippines.

"Low international oil prices will boost domestic demand in most countries
in the region and provide policy makers with a unique opportunity to push
fiscal reforms on energy, which will raise revenues and reorient public
spending toward infrastructure and other productive uses, especially in
Cambodia, Lao PDR, the Philippines, Thailand and the Pacific island
countries," said UN-ESCAP.

According to the report, the Philippines has been successful in expanding
its rural electrification through grid extension and off-grid energy systems
and has shown one of the highest growth rates for electricity access along
with China, Lao People's Democratic Republic (PDR), Mongolia and Vietnam.

Off-grid systems such as micro-hydro, solar lanterns and solar home systems
"are apt to meet the needs of remote communities, and micro- and mini-grids
can play an instrumental role in electrification efforts."

According to UN-ESCAP, the Trans-ASEAN Gas Pipeline (TAGP), which aims to
link and develop existing pipeline connections and connect gas reserves in
the Gulf of Thailand, Indonesia, Myanmar and the Philippines to the rest of
the region, is expected to help develop energy access and security in the
Philippines as well as the other countries involved.

"TAGP has the potential to play a vital role in providing diversity and
flexibility of gas supplies, fostering regional energy access and security,"
read the report.

The report proposes that the government "ensure affordability, reliability
and sustainability" of energy access through policy making, institutional
arrangements and improved financing as these are seen to develop the
quantity and quality of energy services delivered in the country.

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Link to Original Article:
http://www.bworldonline.com/content.php?section=Economy&title=energy-demand-
to-outpace-production-in-coming-years----un-escap&id=139260

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com