energy secure philippines (esp) activity - usaid

Energy Secure Philippines (ESP) Activity

Work Plan

(November 19, 2020 – November 18, 2021)

February 2021 This report was produced for review by the United States Agency for International Development (USAID). The contents of this report are the sole responsibility of RTI International and do not necessarily reflect the views of USAID or the United States Government. This document is intended to comply with Section 508 Standard of the Federal Acquisition Regulation. If you have any difficulties accessing this document, please contact [email protected].

(ESP) activity

Energy Secure Philippines (ESP) Activity

Work Plan

(November 19, 2020 – November 18, 2021)

Table of Contents Background ..................................................................................................................................... 1

Table 1. Performance Indicator Tracking Table (PITT) ............................................................. 3

Exhibit 1. RTI's Implementation Approach to ESP and Key Considerations/Constraints ......... 5

Exhibit 2: Theory of Change ....................................................................................................... 4

Mobilization Phase (MP) ................................................................................................................ 5

Objective 1: Improve The Performance Of Electric Utilities ......................................................... 9

Objective 2: Increase The Deployment Of Advanced Energy Sources And Systems .................. 16

Objective 3: Enhance Competition In The Power Sector ............................................................. 33

Cross Cutting/Communication And Outreach Activities ............................................................. 39

Annex I: Rapid Mobilization Plan ................................................................................................ 43

A.1 Rapid Mobilization and Start-Up Teams ..................................................................... 43

A.2 Mobilizing Key Personnel ............................................................................................ 44

A.3 Office Location ............................................................................................................. 45

Exhibit 3: Tabulated Summary of ESP Activity Rapid Mobilization Plan ............................... 46

Detailed Activities by Task ESP Activity Work Plan

November 19, 2020 – November 18, 2021

USAID ESP ACTIVITY WORK PLAN Y1 FEBRUARY 2021 PAGE 1

Background

The Energy Secure Philippines (ESP) is a five-year project under United Stated Agency for International

Development (USAID) Philippines that aims to assist the Government of the Philippines (GPH) in

promoting a more competitive power sector through investment mobilization, deployment of modern

energy technology and support in policy reforms and implementation. The ESP Activity aligns itself with

the goals and objectives of the Asia Enhancing Development and Growth through Energy (EDGE)

initiative of the United States (U.S.) Government. Asia EDGE assists Indo-Pacific countries in fostering

regional connectivity and market integration, advancing market-based energy policies and market

reforms, modernizing energy infrastructure, and expanding access to affordable, secure, and reliable

energy supplies. These objectives were reinforced with the enactment of the Asia Reassurance Initiative

Act (ARIA), which aligns closely with the Indo Pacific Vision and prioritizes energy sector programming

in Asia.

At the country level, the ESP Activity supports the Philippine Department of Energy’s (DOE) Energy

Sector Strategic Directions covering the period 2017 to 2040, the core of which are: Ensuring energy

security, expanding energy access, and promoting a low-carbon future with and through multi-stakeholder

support and engagement and stronger international relations and partnerships. On a broader perspective,

the Project will contribute to the attainment of the GPH national development agenda titled AmBisyon

Natin 20401.

The three-fold objective of the ESP Activity: Improve the performance of energy utilities; Increase the

deployment of advanced energy sources and systems; Enhance competition and improve the energy

procurement process will complement the GPH energy sector’s critical role in the country’s quest for

inclusive growth and sustainable development.

On another important note, the advent of the unprecedented global health pandemic, COVID-19, has

brought forth the need for innovative energy technology, flexibility in programming and implementation

and the urgency to build up and strengthen the power system’s reliability and stability to quickly respond

1 AmBisyon Natin 2040 aims to transition the Philippines into a middle- class society by 2040 living long, happy and productive

lives. Representing the collective long-term vision and aspirations of the Filipino people, this 25-year framework spans at least four political administrations.

USAID ESP Activity Work Plan Y1 February 2021 Page 2

to unanticipated challenges of energy supply disruptions. Not to mention the Philippines’ standing in the

global disaster risk index. As cited in the Disaster Risk Reduction in the Philippines Status Report 20192

the Philippines ranked third among all of the countries with the highest risks worldwide, according to the

World Risk Report 2018. In addition, new non-climatic vulnerabilities such as cyber-attacks on power

sources and systems are growing globally. The country’s vulnerability to natural and human-induced

disasters threatens the energy infrastructure and quality of energy services. The ESP Project will help

increase energy investments to promote advanced technology deployment and boost the energy sector’s

resilience to natural and human-induced shocks and stresses.

The Theory of Change for the Activity is as follows: If the Philippines improves the performance of its

energy utilities, increases utilization of advanced energy sources and systems, and adopts competitive and

transparent opportunities for new energy investments; then the energy sector will be more secure and

resilient, thus inclusive economic growth and self-reliance in the Philippines will advance. The Theory of

Change is presented in the succeeding section (Exhibit 2).

In quantifiable terms, the overall goal of the ESP Activity is to mobilize at least USD 750 million of

private investments in the energy sector and facilitate an additional capacity of at least 500 MW. The

following Performance Indicatory Tracking Table (included in the proposed Monitoring, Evaluation, and

Learning Plan) presents the initial targets from Year 1 to Year 5 as set against LOP Targets. As can be

seen, Year 1 targets are set modestly in consideration of start-up activities, the continuing uncertainty on

the COVID-19 situation, and the conduct of various foundational activities with host government and

private sector partner. The annual presentation of targets also illustrates the multi-year nature of most ESP

sub-activities and in summary, describes how all subtasks will be carefully done in stages progressively

through the years.

2 Prepared by the UN Office of Disaster Risk Reduction


Table 1. Performance Indicator Tracking Table (PITT) Performance

Indicator FF

Milestone (Y/N)

Baseline Year 1

Year 2

Year 3

Year 4

Year 5

LOP Target

GOAL: To improve the security and resilience of the Philippine energy sector with $750 Million of new investments mobilized and 500 Megawatts of capacity added 1 Amount of investment mobilized (in USD) for energy projects as supported by USG assistance

(EG.7.2-1) Y 0 0 20 167 287 276 $750M

2 Generation capacity (MW) supported by USG assistance that has achieved financial closure (custom)

Y 0 0 15 85 200 200 500 MW

Objective 1: Improve the performance of electric utilities 1 Percent of energy utilities with improved financial and/or operational

performance as supported by USG assistance (custom, qualitative narrative)

Y 0% 0% 0% 0% 50% 100% 100% of utilities with

improved financial and operational

performance 1 Percentage change in operational performance (custom)

Y 0% 0% 1% 4% 7% 9% 10% change in operational

performance (5 utilities over 5

years)

1 Number of beneficiaries with improved energy services due to USG assistance (EG 7.1-1)

N 0 0 20,000 60,000 40,000 20,000 140,000

1 Number of institutions with improved capacity to assess, monitor and respond to energy crisis (custom)

N 0 50 125 200 150 25 550

Objective 2: Increase the deployment of advanced energy sources and systems 2 Number of institutions with improved capacity to participate in international dialogues to foster

energy trade (custom)

N 0 0 2 8 8 2 20

2 Amount of energy (MWh) saved from energy efficiency as supported by USG Assistance

N 0 TBD TBD TBD TBD TBD TBD


Performance Indicator

FF Milestone

(Y/N)

Baseline Year 1

Year 2

Year 3

Year 4

Year 5

LOP Target

Objective 3: Enhance competition in the power sector 3 Percent of energy procurements using RFPs, auctions or similar processes, as supported by USG

assistance (custom)

N 0% 0% 0% 100% 100% 100% 100%

3 MW competitively procured, as supported by USG assistance (custom)

N 0 0 0 50 125 75 250 MW

3 Number of applications submitted using modern procurement tool or processes (custom)

N 0 0 10 25 10 5 50

Cross-cutting Indicators 4 Proportion of women's involvement in policy, plan, or regulations development as result of USG

assistance (custom)

N 0% 5% 15% 25% 35% 50% 50%

4 Proportion of women's participation in international dialogues or decision-making processes to advance energy security (custom)

N 0% 5% 10% 20% 30% 40% 40%

4 Number of partnerships with Private American firms established or engaged to modernize energy systems (custom)

N 0 0 2 5 5 3 15

4 Number of laws, policies, regulations, or standards to enhance energy sector governance formally proposed, adopted, or implemented as supported by USG assistance (EG.7.3-1)

Y 0 0 20 48 30 17 115

5 Number of people supported by the USG to adapt to the effects of climate change (EG 11-5)

Y 0 0 5,000 15,000 20,000 10,000 50,000 W: 27,500 M: 22,500

5 Number of people trained in technical energy fields supported by USG assistance (EG 7.3-2)

N 0 250 1,320 2,220 1,890 820 6,500

5 Number of innovative tools, technologies or methodologies, developed, tested and/or adopted as a result of USG Assistance (custom)

Y 0 0 1 1 2 0 4


ESP Activity’s initial geographic focus aligns with USAID’s Cities Development Initiative (CDI).

The ESP Activity may, in the near term, collaborate on selected focused

tasks/interventions with power utilities in other areas of the country. Some of these tasks stem from

requests of government partners in strategic activities such as the development of local energy plans, the

full implementation of both the Energy Virtual One Stop Shop (EVOSS) Act and the Energy Efficiency

and Conservation Act as well as the effective implementation of the Green Energy Option Program

(GEOP).

In keeping with the Task Order, ESP’s four key approaches of a) Scaling up markets, b) Building resilient

systems, c) Fostering inclusive growth, and d) Empowering consumer choice will be integrated in all the

Subtasks in Year 1. All subtasks are marked with the corresponding icons of the key approaches to

indicate direct relevance or applicability.


Exhibit 2: Theory of Change


Mobilization Phase (MP) The mobilization phase covers the first three months (90 days) after award notification. The tasks are primarily focused on mobilizing and recruiting full time personnel, issuance of initial statements of work for subcontractors and validation of policy priorities and specific interventions with key government counterparts: the department of energy and energy regulatory commission. Given COVID-19 and resulting travel restrictions, RTI deployed a well-coordinated combination of resources to rapidly mobilize activity that includes virtual it systems, existing in-country projects and regional RTI support office.

Subtask Tasks Lead Support Start and End Date

Comments Output/Milestone

Subtask MP 1.0 Kick-off meetings with USAID Philippines

RTI team meeting with USAID Contracting Officer and technical team RTI

12/04/20

Clarifications on provisions of Task Order

Minutes of kick-off meeting on file

12/09/20 Process of approvals defined

Subtask MP 2.0 Kick-off meetings with RTI internal business partners

Creation of RTI Project Management Unit (PMU) for ESP Activity virtual mobilization RTI

12/04/20

Mobilization of RTI internal business units: Asia Regional Office, Contracts, Human Resources, Legal, Communication

Delineation of responsibilities

Timelines for tasks defined

Gaps in the virtual ESP Activity mobilization identified

Subtask MP 3.0 Engagement of Personnel

Key personnel were mobilized: Chief of Party (COP), Deputy Chief of Party (DCOP) and all Objective Leads RTI 12/01/20 to

on-going

Request for mobilization of non-key personnel submitted to USAID for approval on December 16, 2020

Mobilization of key personnel on December 01, 2020

Non-key personnel named in the proposal approved for mobilization following USAID approval

Mobilization of the first set of non-key personnel on December 23, 2020.

Subtask MP 4.0 Mobilization of Subcontractors

Letters of Approval (LOAs) issued to subcontractors for 3 months

RTI

12/18/20 to on-going

LOAs issued to subcontractors upon approval by USAID of

Three subcontractors issued with LOAs:

and





Requests for Approval of Statements of Work Submitted to Task Order Contracting Officer’s Representative (TOCOR)

respective Statements of Work

Subtask MP 5.0 Preparation for the co-design workshop

Develop a list of participants grouped by a) Government, b) Private sector, academe, and financial institutions, and c) USAID programs and donor community

RTI All

Objective Leads

12/01/20 to 01/11/21

Collaboration with USAID, RTI home and regional offices

Invitations updated and released days before dates of co-design workshop

Develop a draft program for the co-design workshop Send a “Save the Date” notification to identified participants Draft invitation letters to high level, cabinet rank government officials

Practice sessions with Objective Leads and presenters held continuously

Program, presentations, and logistics finalized

Draft talking points for USAID Send links to virtual platform to all participants





Subtask MP 6.0 Conduct of co-design workshop

Conduct co-design workshop as scheduled

RTI

01/12/21 to 01/31/21

Recordings of workshop saved for documentation

Documentation of co-design workshop completed

Hold post assessment after each session

Clarifications/requests, and questions to be addressed in future meetings Prepare documentation of

co-design workshop

Subtask MP 7.0 Hold focus group discussions (FGDs) with government partners

Meet individually with various bureaus of DOE and operations group of the Energy Regulatory Commission (ERC).

RTI


Requests sent to respective government partners

FGDs completed: Usec F. Fuentebella, Renewable Energy Management Bureau (REMB), Energy Utilization Management Bureau (EUMB), ERC, Market Operations Service (MOS) of ERC

Tabulated requests from DOE and ERC submitted

Subtask MP 8.0 Develop and submit mandated reports

Develop all mandated reports pursuant to Section F.8 of TO RTI


Tracking of deliverables to ensure compliance to deadlines performed by COP and DCOP

Submitted reports: Branding and Marking Plan, 1st quarter Performance Report for FY 2021





pursuant to Task Order

Subtask MP 9.0 Develop other mandated reports

Monitor Section F.8 to ensure compliance to deliverables within the timelines imposed RTI


Draft reports completed ready for submission: MEL Plan, Y1 Work Plan

Mandated reports ready for submission within timelines; Grants Manual and Environmental Compliance report to be submitted

Reports not stated under Section F.8: Grants Manual and Environmental Compliance reports


Objective 1: Improve the Performance of Electric Utilities ESP activity is expected to improve the operational performance, financial standing and system resilience of selected electric utilities based on the existing codes and standards to provide quality, reliable and secure electricity services.



Objective 1.1 Operational Efficiencies of Utilities Increased

Subtask 1.1.1 Conduct a benchmarking study of electric utility performance.

Identify operational parameters for benchmarking performance

RTI

01/04/21 to

06/30/22

Based on inputs from DOE Circular DC 2017-05-008 Guidelines on performance assessment and audit, which includes standards set forth in the distribution code

Performance assessment based on operational parameters for electric utilities

Identify financial parameters for benchmarking performance

In partnership with DOE’s EPIMB and ROS of ERC, this builds on the 2012 ERC benchmarking study

Performance assessment for selected financial parameters

Benchmark at two levels: Philippines and international standards Short

Term Technical Assistance (STTAs)

Serves as input to upgrading performance standards for electric utilities

Report on operational and benchmarking study (pilot 5 electric utilities)

Subtask 1.1.2 Collect and analyze data provided and provide

Use advanced tools such as Geographic

Report on the use of advanced tools available in

IEE: Catex





Develop utility improvement and reliability plans.

recommendations with minimal cost to the utilities. and id

RTI 03/15/21

to 09/15/21

Information System (GIS) mapping, smart meters, substation automation.

the market that would have a direct impact on the bottom lines of the utilities. Gradual implementation of Smart Grid Concept.

This will include load flow analysis and identifying the constraints in the distribution system etc.

Objective 1.2 Financial Viabilities of Utilities Strengthened

Subtask 1.2.1 Determine impact of COVID-19 on power sector and implement COVID-19 financial recovery plan.

Analyze current stop gap measures done during the year 2020 (i.e. staggered payment of electric bills, suspension of FIT-all, bill deposit adjustment etc.)

RTI

04/01/21 to

04/01/22

Refer to the study on impact of COVID-19 on three sample DUs in Mindanao. Lessons learned from other countries such as Vietnam (as presented by USAID dated January 27)

Evaluate study based on methodology used, scope or coverage, degree of involvement of selected distribution utilities (DU)s in the study, and sustainability for update.





Estimate impact of stop gap measures in providing relief to distribution utilities

Do a quick assessment of independent efforts done by other private distribution utilities

Assess impact of COVID-19 on power sector/utilities and propose recovery plans

04/01/21 to

12/15/21

Reference the study on impact of COVID-19 on three sample DUs in Mindanao

Review available literature officially released on power sector financial losses, which includes the World Bank’s financial assessment toolkit and NREL’s COVID-19 and the Power Sector in Southeast Asia: Impacts and Opportunities.

Conduct a similar study on 5 sample utilities in Luzon and Visayas and possibly off-grid

Subtask 1.2.2 Update rules for setting electric cooperatives’ wheeling rates (RSEC-WR).

Assess remaining tasks under the Tariff Glide Path (TGP) of RSEC-WR Phase 1

RTI

STTA

03/01/21 to 06/01/22

Recommend resolution of TGP

Review new EC classification under the RSEC-WR Phase 2





Subtask 1.2.3 Develop “smart buyer” toolkit.

Analyze the current power supply agreements (PSAs) of sample DUs; understand how the utilities implement competitive selection process in their procurement.

RTI

IT

STTAs

06/15/21 to

12/31/22

Evaluate sample DUs’ load profiles and the ideal generation mix based on load profiles

Analyze available power supply sources to meet future requirements including energy efficiency potential

Identify the most cost-effective option for DU





Objective 1.3 Resilience of Energy Systems to Shocks and Stresses Increased

Subtask 1.3.1

Build GPH and DU capacity on energy resilience planning and programming.

Assess the compliance plans submitted by DUs to DOE

RTI

STTAs 03/01/21

to 12/15/22

Coordinate with Resilience Compliance Plan (RCP) team of EPPB’s DOE

Report on the assessment of RCPs submitted to DOE

Supports the Objective 1 Lead who will provide technical guidance

Classify submitted compliance plans into groups based on criteria to be developed in close collaboration with DOE

Define criteria for DU classification of RCPs

Update resilience compliance plans to include recent developments that tested resilience of power utilities

Recommend possible updated factors to include in the RCPs

Draft updated DOE circular on RCP

Lead in capacity building activities on energy resilience and grid reliability specifically on integrated resource and resilience planning (IRRP).

Benchmarking of three sample DUs’ IRRP Software

IRRP framework developed for DUs

Documentation of capacity building activities

Develop a reliability and resilience scorecard STTA

In partnership with the DOE, lead in defining elements for scorecard:

Reliability and resilience scorecard developed;





example for resilience (climate change, armed conflict, global pandemic, cybersecurity)

Develop a monitoring toolkit for compliance

Data management portal that serves as monitoring toolkit for compliance developed

Conduct workshops on the development and use of the reliability and resilience scorecard and the monitoring for compliance

Report on workshops including evaluation forms

Subtask 1.3.2 Upgrade standards of structures for ECs.

Evaluate existing standards on structures with ideal standards given impact of series of recent natural calamities

RTI

03/01/21

to 06/30/22





Collate historical financial recovery packages requested by distribution utilities post natural calamities

Recommend new differentiated standards on structures based on levels of risks faced by ECs

Subtask 1.3.3 Implement resilience solutions.

Build on initial analysis of RCPs submitted by sample DUs

RTI

07/01/21 to

06/01/22

Subtask 1.3.4

RTI





Objective 2: Increase the Deployment of Advanced Energy Sources and Systems ESP activity will facilitate new private investments for renewable and cleaner fuels, smart grid systems and energy efficient technologies/systems/processes and other innovative energy systems for improving delivery of electricity services and for other purposes.



Objective 2.1 Policy and Regulatory Environment for Advanced Energy Systems Improved Subtask 2.1.1 Build ERC capacity to

Assist the ERC in resolving existing petitions on rates adjustment leading to increased

RTI

STTAs

03/01/21 to

12/15/22





implement effective regulatory frameworks supporting the use of advanced energy systems and improving financial viability of power utilities.

financial viability of the power utilities

Support the ERC in developing the regulatory frameworks that





promote energy resilience, reliability, smart technology, and cybersecurity

03/01/21 to

03/31/23





Provide knowledge management support to ERC

RTI





Subtask 2.1.2 Support implementation of the Energy Efficiency and Conservation Act.

Conduct inventory of annual energy consumption of Type 2 designated establishments

RTI

STTAs Energy Service

Companies (ESCOs)

Coordinate with DOE-EUMB and industry groups or associations to convene contestable market clients Type 2 DE are those establishments with average annual energy consumption during the previous year of more than 4,000,000 kWh.

Database on energy intensive energy consumption of Type 2 designated establishments

Select ecozone foreign or domestic market enterprises which are predominantly contestable market either in Clark or Subic to identify energy intensive industries





Ecozones are selected based on a) priority sites for investors and government, b) presence of energy intensive industries, c) Opportunities for partnerships, d) Potential for technology or business model innovations e.g. efficiency, DER, smart grid. and e) Ease of transport and logistics. The representation of both private ecozones and PEZAs are also deliberately ensured.

Collaborate with DOE on web-based submission of monthly energy consumption for close monitoring





Subtask 2.1.3 Support One Grid Philippines and the Mindanao Energy Plan 2018-2040.

Evaluate Mindanao’s aspiration for a 50/50 share of RE to total generation mix

RTI

STTAs

03/22/21

to 03/31/23

Facilitate with DOE and Mindanao Development Authority (MinDA) on possible update to the Mindanao Energy Plan in view of the interconnection of the island to Luzon and Visayas grids as well as the envisioned privatization of the Agus Pulangi complex.

Documentation of focus group discussions with DOE and MinDA

Explore potential hydro reserves and/or possible micro and mini grids with run of river hydro using the HydroRAM model introduced under

Build on the output of the water, energy, and food nexus study to identify and tap hydro reserves as well better allocate scarce water supply

List of new or potential hydro resource sites for possible private sector investments

Subtask 2.1.4 Support local government units

Support selected local government units in the RTI

01/18/21 to

03/15/22

Comply with a policy directive issued jointly by the DOE and the Department of Interior and

Local energy codes passed and promulgated





(LGUs) to implement advanced energy systems.

development and passage of the Local Energy Code (LEC)

Local Government through Joint Memorandum Circular No. 2020-01

by at least three LGUs for Y1

Use as model the local energy code passed by Legaspi City

Compendium of training/workshop materials supported with evaluation surveys Identify LGUs that will be

mentored in the development of the local energy codes Develop pilot templates to address diversity in make-up of selected LGUs with focus on development/promotion of advanced energy systems Assist selected LGUs in the presentation of proposed LECs to respective Sangguniang Committee

Documentation on public consultations

Support selected LGUs in the development of pilot local energy plans (LEPs)

03/01/21 to

12/31/22

“Lead and facilitate the development of the template for the local energy plans to comply with and support the Energy

Template of LEP





Efficiency and Conservation (EEC) Act, the EVOSS Act, and the Joint DILG-DOE Circular for LGU support to energy projects implementation, in close coordination with the Office of Undersecretary F. Fuentebella, among others” Lead and facilitate the development of the local energy plans among pre-selected LGUs: Batangas, Batangas City, Pagudpud, Tagbilaran City, Iloilo City, General Santos City, and Davao City

Documentation of meetings with LGUs led by DOE

“Focus on prudent utilization of ER 1-94

Proposed alternative utilization of ER 1-





funds by the host LGUs”

94 funds to further promote renewable energy and strengthening reliability/resilience of LGUs. These recommendations will be embodied in the local energy plans sample pilot DUs

Conduct trainings/workshops to institutionalize the development and update of the LEPs

Compendium of training/workshop materials supported with evaluation surveys

Provide technical guidance and inputs in the public consultation of LEPs, if needed

Local energy plans developed for six pilot LGUs, plans or parts of the plans will be supported if qualified for ESP support and if with available resources.





Support the development of local energy efficiency plans (LEEP)

06/01/21 to

12/31/22

Coordinate closely EUMB of the DOE

Template/framework for development LEEP

Coordinate with the Department of Interior and Local Government (DILG) in the development of a template or framework for the LEEP

LEEPs developed for at least six LGUs

Identify partner pilot LGUs in the development of a template or framework for the LEEP Conduct trainings/workshops on the LEEP

Documentation of trainings/workshops

Conduct actual energy audits

11/10/21 to

12/31/22

Build on past USAID-led energy audits of establishments

Actual energy audits conducted for at least ten LGUs

Coordinate with DOE-accredited Energy Service Companies Conduct actual energy audits with selected LGUs





Develop a manual or training video to be shared with DOE, DILG, and

as channel for LGUs’ distribution

Documentation and video trainings of energy audit

Objective 2.2 Planning, Procedures, Financing, and Tools for the Development of Advanced Systems Facilitated Subtask 2.2.1 Support comprehensive implementation of the EVOSS Act.

Assist the DOE in the full and effective implementation of the Energy Virtual One Stop Shop Act

RTI

STTAs

03/15/21 to

12/31/22

ESP is going to work with DOE Investment Promotion Office (IPO) to identify key areas to address implementation challenges both at the national and local level

List of priority agencies that include selected distribution utilities, and/or LGUs for immediate integration to the EVOSS’s platform

Work in partnership with to identify

priority LGUs that will be integrated into the EVOSS’s web-based platform Identify barriers to the effective integration of LGUs into the EVOSS’s platform

Report on existing barriers to the effective integration of LGUs to





Lead the conduct of trainings/workshops of the LGUs

EVOSS’s platform submitted to DOE

Subtask 2.2.2

Assist in monitoring compliance to RPS

Develop monitoring protocol (if needed) with DOE/Philippine Electricity Market Corporation (PEMC) or with respective DUs as mandated participants

RTI 01/15/21

to 07/01/21

Collaborate closely with the National Renewable Energy Board, DOE and major RE developers

“Report on monitoring procedures and proposed monitoring protocol (if needed). Alternatively, recommend priority measures identified in order to improve Renewable Portfolio Standard (RPS) compliance”

Understand monitoring process currently in place

Subtask 2.2.3

Support the Phase 2 Competitive Renewable Energy Zones (CREZ)

Provide ground support to National Renewable Energy Laboratory (NREL) in the implementation of Competitive Renewable Energy Zones (CREZ)

RTI 04/01/21

to 12/31/21

Collaborate closely with the National Renewable Energy Laboratory, DOE and ERC in CREZ-related tasks

Documentation of trainings and workshops as well as public consultations

Objective 2.3 In-Country Capacity for Research, Knowledge, and Skills to Expand the Delivery of Advanced Energy Systems Strengthened





Subtask 2.3.1 Develop regional hubs for energy knowledge and learning.

Assess potential research and learning hubs across the country

RTI All

Objective Leads

Monitor developments regarding Senate Bill 1296 and House Bills 1193 and 1266, which establishes the Philippine Energy Research and Policy Institute (PERPI) passed by the Senate on February 26, 2020

Report (quick assessment) of the proposed bill, and short list of academic institutions, research institutes, and vocational schools as potential learning hubs or satellite hubs for knowledge and learning, and potential opportunities for collaboration and knowledge transfer/exchanges with regional and international think tanks

Collaborate with USAID STRIDE on ideal regional satellite research and learning labs Evaluate status and capacity of the Affiliated Renewable Energy Centers of DOE Develop draft RFA (Request for Applications) as part of category 1 of the GUC

Subtask 2.3.2 Develop grants.

Develop Grants Manual RTI

12/01/20 to

02/28/21





Identify priority focus or areas for possible utilization of the GUC that is responsive to the urgent needs of the energy sector

At least two RFPs issued under the GUC

Develop grant activities that will engage private sector and build confidence/ reduce risk perception for private investors.

RFA and Grant Awards

Objective 2.4 Private Sector Engagement to Support Deployment of Advanced Energy Systems Subtask 2.4.1 Provide transaction advisory.

Lead the engagement of private sector leading to additional generation capacity and private investments in the power sector

RTI 03/01/21

to 02/28/23

Assess potential private sector partners under this subtask

Criteria for selection of private partners developed

Develop a pipeline of new projects to be evaluated from current pipeline of:

Short list of partner private sector projects completed based on due diligence





Conduct due diligence on shortlisted projects to focus for FYs 2021 and 2022

Letters of Cooperation signed and submitted

Secure/execute Letters of Cooperation for clear delineation of roles and responsibilities

3/15/2021 – 5/15/2021

Facilitate Consultation Workshops with private sector stakeholders (Financial Institutions, MFI’s, Developers, etc)

Compendium of Innovative Finance Instruments (Publication

6/01/2021-11/01/2022

Conduct Capacity Building activities for Finance Institutions

ESG Strategies for Finance Institutions as compliance to BSP requirements under Circular 1085





De-risking Toolkit for Banks’ Value and Risk Appraisal for EE/RE Projects (can be included in Energy Database)

Risk Instruments for Finance Institutions (customized insurances, guarantees, review of NEA ratings, etc.)

4/01/2021 – 2/28/23

Facilitate Coaching and B2B Seminars for Developers and commercial, concessional and impact investors. Ensuring that the pipeline developed are bankable and attractive to investors

At least 100 MW of additional generation capacity reaching either financial closure or commercial operation by Year 3.


Objective 3: Enhance Competition in The Power Sector ESP activity will facilitate the Philippine power sector’s transition to retail competition and competitive energy supply procurement by addressing the policy and regulatory bottlenecks thereby reducing electricity cost



Objective 3.1 Implementation of Policies/Regulations that Promote Competition in the Power Sector Enhanced

Subtask 3.1.1 Support the green energy auction program.

Support ERC in establishing the gear price per technology including the conduct of public consultations

RTI

STTA

02/01/21 to 05/01/21

Provide technical guidance in identifying appropriate methodology for calculating the gear price per technology

Gear price per technology using FiT models with updated assumptions established

Provide support for transcribers to record and document public consultations on establishing the gear price per technology

Transcription and recording of all public consultations on gear price per technology

Support the ERC in developing the Power Supply Agreement (PSA) template between power supplier and off-takers

Review existing draft PSA, if any, and provide experts’ opinion for each provision

Draft comments on the existing PSA template submitted to ERC Proposed final version of the PSA template submitted to ERC

Provide support for transcribers to record and document public consultations on the PSA

Transcription and recording of all public consultations on PSA template





Support the DOE in developing the load profiles of prospective off-takers to better match available capacity for auction

02/01/21 to 07/31/22

Define methodology for developing load profiles of DUs in Luzon and Visayas

Methodology defined and support for data collection engaged; load profiles developed

Provide technical support to DOE in developing the bidding documents

Examine bidding documents used in similar auctions across the globe

Draft bidding documents shared with DOE for finalization

Support the development of the virtual trading platform

Define platform software requirements and bidding interface design for procurement

IT platform for RE auction developed

Issue the Request for Quotation to identified bidders

Support the formulation of auction rules consistent with DOE guidance and IT platform design

Assist in vendor selection for platform project implementation

Fully functional IT platform with complete auction rules

Live test IT platform with integrated auction rules

Subtask 3.1.2

Support Green Energy Option Program

Support DOE in the promotion of GEOP

02/01/21 to 06/01/23

GEOP price comparison site housed within DOE website





Objective 3.2 Energy Procurement Practices and Methodologies, Including the Application of Tools and Technology to Increase Competition and Improve the Procurement Process Adopted and/ or Expanded





Subtask 3.2.1

Update power procurement plans with minimum quality standards for equipment and services.

Develop a compendium of suppliers for equipment and service across the supply chain

RTI

STTAs

02/01/21 to 03/15/23

Conduct a survey, if needed, of current suppliers of equipment and service across the supply chain

Compendium of suppliers of equipment and service developed

Identify by country of origin of supply and/or company Identify companies affiliated with U.S. suppliers

Work with the Department of Trade and Industry (DTI) in the survey of suppliers compliant with Government standards.

Work with the DOE to host a copy of the Compendium on its website.

Propose revision in e-procurement law that governs purchase of equipment and services by LGUs

Identify relevant provisions

Proposed inclusion of relevant quality standards for equipment and services defined within the context of the e-procurement law Conduct FGDs with

member LGUs across the country





Objective 3.3 Customer Choice Through Retail Competition Improved Subtask 3.3.1 Resolve bottlenecks to the full implementation of retail competition.

Support the DOE in the challenge for new solutions in the expected increase in volume of transactions in the market

RTI

STTAs

02/01/21 to 06/15/23

Draft market rules

Subtask 3.3.2 Introduce Financial Forward Market Solutions

Support the DOE in getting the financial forward market implemented in WESM

RTI

02/01/21 to

06/15/23

Subtask 3.3.3 Develop aggregation rules

Support the ERC in the development of Aggregation Rules of

RTI

02/01/21 to

10/15/21

Review draft aggregation rules (if available)

Documentation of discussions, and provide assistance in rules drafting





Retail Competition and Open Access (RCOA)

STTAs Hold meetings with DOE, ERC, and RESA for discussions on possible rules and concerns on the RCOA aggregation".

or if the draft exists, draft comments when released for public consultation.

Subtask 3.3.4 Introduce performance scorecard for RES

Support the DOE in drafting a performance scorecard for Retail Electricity Suppliers (RES)

RTI

STTAs

02/01/21 to

06/01/23

Collaborate with DOE, ERC, and RESA in defining the criteria for the development of a scorecard; these may include (a) transparency (b) innovation (c) level of competition, and (d) customer complaints.

Criteria for the rating of RES developed (in collaboration with DOE, ERC, RESA, and consumer groups)

Documentation of focus group discussions on draft scorecard

Conduct FGDs with consumer groups to ensure cooperation in the process

Scorecard developed for public consultation


Cross Cutting/Communication and Outreach Activities ESP activity will lead institutional strengthening, communication and outreach events, stakeholder dialogues, and public consultations in support of the promotion of increased energy security and reliability. The activity will likewise spearhead gender-related initiatives that implement the sector’s gender action plan.

Subtask Tasks Lead Support

Start and End Date


Subtask CC/CM 1.0 Conduct cross-cutting information, education, and communication (IEC) activities for Local Energy Code adoption, EVOSS integration, local energy planning, and RCP (i.e. virtual E-POWER Mo); these include other communication and outreach activities, public consultations to be agreed among USAID, DOE, ERC and/or partners

Design nationwide virtual IEC

RTI

04/15/21 to

06/15/22

Collaborate with DOE-IPO on strategy and design of virtual IECs

At least two IECs implemented in target LGUs

Conduct IEC activities Assess connectivity readiness and effectiveness of LGUs identified




Start and End Date


Subtask CC/CM 2.0 Hold a women-led conference on promotion of energy security and reliability

Design a women-led conference with focus on the progressive role of women in the development of the energy sector

RTI

04/15/21 to

06/15/22

Explore varied topics for discussion that may include: ● Impact of COVID-19 on

women ● Women-related

resilience measures in future similar pandemic

At least one women-led conference held within Y1

Collaborate with donor community on potential partnerships Collaborate with LASURECO, USAID’s partner under the Engendering Utilities Program

Subtask CC/CM 3.0 Launch the energy efficiency virtual showroom

Conceptualize the energy efficiency virtual showroom

RTI STTAs 04/15/21

to 06/15/22

Coordinate with DOE-EUMB for concepts, design, and execution

At least one virtual showroom launched within Y1




Start and End Date


Subtask CC/CM 4.0 - Environmental Compliance – In accordance with the ESP IEE, the following will be prepared and submitted in Year 1.

Environmental Mitigation and Management Plan (EMMP)

RTI STTAs

04/1/2021 to

07/30/2021

The EMMP will take into account subtasks that have negative determinations with conditions (e.g., grants)

Submission of EMMP

Environmental Guidelines for Subcontractors and Sub-grantees

RTI Sub-contractors

and Sub-grantees

05/1/2021 to

08/30/2021

The Guidelines will be linked with the overall EMMP

Submission of Environmental Guidelines; Orientation for Subcontractors/grantees

Climate Risk Management Plan RTI STTAs

06/1/2021 to

9/30/2021

This will highlight subtasks that directly contribute to resilience strengthening

Submission of CRM Plan

Subtask CC/CM 5.0 – Regular Planning and Updating with Host Government Partners

Quarterly Pause and Reflect (P&R) Sessions with DOE and ERC RTI

Subcontractors and STTAs

when needed

Quarterly; date TBD with host government partners

The Quarterly P&R sessions will be done starting with individual bureaus and when feasible and needed, moving on to two or cluster of bureaus and possible joint meetings between DOE and ERC.

Submission of Activity Report and refinement of plans based on P&R results




Start and End Date


Subtask CC/CM 6.0 Hold a private sector forum

Design and conceptualize a private sector forum for innovation exchange and sharing event

RTI

STTAs

08/01/2021 to

01/31/2022

Conceptualization, theme, and design will be discussed with key government partners, DOE, ERC, and private sector representative groups

Concept and design of private sector forum submitted

Subtask CC/CM 7.0 Support to the conduct of the energy development partners meeting

Prepare agenda in close collaboration with energy development partners

RTI STTAs June 2021

This provides and opportunity to share activities being done with the same government and private sector partners

Presentation materials for USAID Harmonization of future activities

Subtask CC/CM 8.0 Support the COP26 Energy Transition Council (ETC) National Dialogue

Assist DOE – EUMB and Planning in creating an energy efficiency roadmap

RTI Subcontractors

STTAs TBD

This is led by the British Embassy and in collaboration with Denmark and Carbon Trust

Future meetings to be held to clarify role and function of the ESP Activity including concrete deliverables

USAID ESP Activity Work Plan February 2021 Page 43

Annex I: Rapid Mobilization Plan

This section updates the Rapid Mobilization Plan included in the RTI International proposal submitted in

response to the RFTOP 72049220R00006, Energy Secure Philippines.

A.1 Rapid Mobilization and Start-Up Teams

Start-Up in the Coronavirus Disease 2019 (COVID-19) Context. Even if COVID-19 restrictions are in

place at the time of project start-up, RTI International’s well-established footprint in the Philippines

ensured a swift launch within the first month of contract award. As reported in ESP Activity’s first quarter

Performance Report, FY 2021, RTI is registered in the Philippines and has existing operational

infrastructure and systems in the country; therefore, start-up logistics was seamless. RTI likewise

promptly adapted and responded to the various nuances stated under Task Order

Since the start of the COVID-19 pandemic, RTI has been continuously monitoring the operational

environment in the Philippines through the in-country project offices and field personnel. ESP has

developed approaches and project guidance as the situation evolves, thereby ensuring that our approach is

based on science, incorporates lessons learned, and is responsive to changing conditions. While RTI

recognizes that the pandemic is unchartered territory both for USAID and implementing partners, ESP

has already mobilized several projects across the globe within the pandemic constraints; hence, ESP

applied the valuable experiences and lessons learned for rapid mobilization. A few months prior to the

award notification of ESP Activity, RTI has likewise mobilized the

project in July 2020 within these constraints. Therefore,

based on this experience, ESP pursued an adaptable and flexible implementation such as increased use of

online platforms and remote support for start-up activities, while ensuring the safety of our project staff

and counterparts. ESP shall closely monitor on the ground developments and COVID-19 restrictions to

ensure a sustained safe and healthy environment.

Energy Secure Philippines Personnel Recruited. ESP has already identified and recruited

our technical personnel for Energy Secure Philippines during the proposal period. Exhibit 2


presents a summary of key milestones under the rapid mobilization strategy that included on-boarding key

and most of non-key personnel by first week of February 2021. Since our project

staff are Filipinos and have been instrumental in the successful implementation of USAID

project, it created operational efficiencies and saved costs and time for recruitment, onboarding, training,

and getting up-to-speed on implementation approaches and establishing relationships with stakeholders.

Technical Start-Up Team. The core Technical Start-Up Team consisted of the COP, the Deputy Chief of

Party (DCOP), Project Manager (PM), Objective Leads, and Monitoring, Evaluation, and Learning

(MEL) Manager. All these personnel, including the Grants and Accounting Analyst provided the core

technical support leading to the co-design workshop with key government partners and important

stakeholders.

Operations Start-Up Team. RTI prioritizes operational excellence. Our Operations Start-Up Team for

ESP comprised the Operations Manager, Home Office Senior Operations Specialist, Home Office Project

Coordinator, RTI Asia Regional Office (ARO) Human Resources (HR) Specialist, and Information

Technology (IT) Specialist from the ARO. These professionals brought complementary skills in

recruitment, onboarding, project management and administration, finance, field operations, and logistics.

All these personnel have hands-on experience with implementing start-ups for large USAID projects in

countries including the Philippines.

A.2 Mobilizing Key Personnel

RTI had post-award kickoff calls with USAID during the first two weeks of December 2020. All key

personnel: COP DCOP Objective 1 Lead Objective 2 Lead and

Objective 3 Lead were fully mobilized by December 01, 2020. All key personnel contributed to the

technical content and participated in the collaborative Co-Design Planning Workshop with USAID, held

through a virtual platform last January 13 to 15, 2021. The outputs from this workshop were important

inputs in the design and focus of the Year 1 ESP Activity work plan. All Home Office and ARO

resources supported and managed the project successfully during the mobilization stage in accordance

with USAID and RTI requirements.


A.3 Office Location RTI proposes to secure an office near the Department of Energy in Bonifacio Global City. This will

minimize public transportation for project staff since it is also a few kilometers away from the office of

the Energy Regulatory Commission. The Philippines government has imposed restrictions on ground

mobility due to the increasing number of cases with the new strain of COVID-19. RTI will constantly

monitor COVID-19 developments to ensure that project staff are safe and secure should remote work be

slowly shifted to in-person reporting to a physical office. RTI will start looking for the appropriate office

location in March 2021 to assess other possible safety risks and requirements for the project staff such as

rotational in-person reporting, shuttle transportation, COVID-19 testing, and available COVID-19

vaccines.


Exhibit 3: Tabulated Summary of ESP Activity Rapid Mobilization Plan ESP Activity Rapid Mobilization Progress To-Date

ESP Start Up Activities Milestone and Deliverable Date

November December January February

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Administration and Coordination

ESP Start Date 19-Nov-20 Submit Internal COVID-19 Travel Request

Request International Travel Approval from COR for COP Mobilization ESP Project Management Unit Weekly Meeting 30-Nov-20

Start Up Specialist Identified

Internal RTI Kick-Off Meeting 4-Dec-20

USAID and RTI ESP Kick-Off Meeting 9-Dec-20 COR Approval of COP Mobilization and Travel 10-Dec-20 Asia Regional Office (ARO) Weekly Meeting 16-Dec-20

Recruitment of Staff

Notify Named Personnel of Award

All Key Personnel (KP) Hired 1-Dec-20

All Named Non-KP Staff Hired Orientation and Onboarding for all hired staff


ESP Activity Rapid Mobilization Progress To-Date



1 2 3 4 5 6 7 8 9 10 11 12 13 14

Recruitment of TBD staff

Finance and Banking Engage with STRIDE for Payroll Set up and ReachHealth for Local Procurement Support

Execute Computer Procurement

Bank Account Forms Submitted

Procurement Delegation of Authority Training for COP and DCOP

Execute Computer Procurement

Mobilizing Partners

Notify Subcontracts of Award

LOAs Issued for Subcontractors Contingent on USAID Approval of SOW

COR Approval - SOW 1



COR Approval - SOW

Kick-Off Meeting

Kick-Off Meeting


ESP Activity Rapid Mobilization Progress To-Date



1 2 3 4 5 6 7 8 9 10 11 12 13 14

Kick Off Meeting

Kick Off Meeting

Technical Activities

Co-Design Save the Dates Submitted

Branding and Marking Plan Submitted 21-Dec-20

1st Quarterly Performance Report FY 2021 Submitted

CO Approval of Branding and Marking Plan

Co-Design Workshop and FGDs 13-Jan-21 to 15-Jan-21

Monitoring, Evaluation and Learning Plan Submitted ESP Activity Work Plan Submitted

Office Location Determined with USAID Not occurred

U.S. Agency for International Development 1300 Pennsylvania Avenue, NW

Washington, DC 20523 Tel: (202) 712-0000 Fax: (202) 216-3524

www.usaid.gov

energy secure philippines (esp) activity - usaid

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