Energy security is a critical issue in the Philippines, as highlighted by recent assessments. The country's energy self-sufficiency ratio has declined from 62% in 2009 to 51% in 2021, indicating a growing reliance on imports. The Hirschmann-Herfindahl Index (HHI) for coal imports has increased, showing a high dependence on Indonesian coal, while the HHI for crude oil imports is lower, indicating more diversified sources. However, the concentration of oil imports from the Middle East exposes the country to geopolitical risks. These indicators underscore the need for both domestic policy interventions and foreign investments to enhance energy security. Reliability and resilience are also significant concerns for the Philippines' energy sector. From 2018 to 2019, the electrical power system frequently faced dangerously low available capacity. In 2021, the system average interruption frequency index was 46.01 power interruptions per customer, exceeding the regulatory benchmark. The domestic downstream oil industry has opposed mandatory minimum oil inventory legislation, which aims to boost resilience to supply disruptions. Policymakers need to address these issues by clarifying legislative and regulatory frameworks to support upstream energy development and improve the reliability and resilience of the power system. Affordability, accessibility, and sustainability are other crucial elements of energy security in the Philippines. The country has some of the highest retail prices for gasoline, diesel, and electricity among ASEAN countries. As of 2020, the electrification rate was 92.96%, one of the lowest in the region. While carbon emissions per unit of GDP have declined, emissions per capita have increased. Policymakers must find innovative ways to accelerate electrification, promote competition, facilitate clean energy transitions, and support green finance initiatives. These measures can help improve energy accessibility, reduce energy poverty, and enhance environmental sustainability.
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Assessing Energy Security in the Philippines: Key Indicators and Policy Interventions

Energy security is a critical issue in the Philippines, as highlighted by recent assessments. The country's energy self-sufficiency ratio has declined from 62% in 2009 to 51% in 2021, indicating a growing reliance on imports.

The Hirschmann-Herfindahl Index (HHI) for coal imports has increased, showing a high dependence on Indonesian coal, while the HHI for crude oil imports is lower, indicating more diversified sources. However, the concentration of oil imports from the Middle East exposes the country to geopolitical risks. These indicators underscore the need for both domestic policy interventions and foreign investments to enhance energy security.

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